There is a common query related to eligibility of Cenvat Credit of Service Tax paid on Ladlind Phones installed by the company in the Directors' or Company Officials'. The query was for mobile phones Directors' or Company Officials' registered at their residential addresses.

Now CESTAT has answered the query in favor of assessee. While delivering the judgment, CESTAT observed as under:

"that the mobile phones and landline phones have been installed by the Company for business purpose and the bills are paid by the company. Therefore, it has to be considered as input services and that they are eligible for the benefit of the Cenvat credit."

 [For full text of judgment - visit - 2008 -TMI - 4051 - CESTAT BANGALORE]

Cenvat credit eligibility for corporate phone services as input services permits credit when billed to the company for business use. Cenvat credit of service tax paid on landline and mobile phones installed by a company for directors and officials is treated as creditable where the telecommunication services are procured and billed to the company for business use, falling within the scope of input services and eligible for Cenvat credit.