2009 (9) TMI 290

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....order passed by the Commissioner (Appeals) wherein Cenvat credit of service tax paid on the mobile phone services was denied to the appellant. 2. The main issue involved in this case is admissibility of credit of service tax paid on mobile phone services. 3. Brief facts of the case are that the appellant was served a show-cause notice on 20-10-2006 alleging that they have wrongly availed the....

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....td. v. CCE [2007] 6 STT 328 (Mum. - CESTAT) wherein it was held that service tax paid on mobile phone is available as credit to eligible service providers of output service and manufacturers. Board's old Circular No. 59/8/2003-S.T., dated 20-6-2003 cannot be pressed into service against appellants under the new Cenvat Credit Rules, 2004. The old Circular dated 20-6-2003 on which sole reliance has ....

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.... the phones were not installed in the factory premises cannot be termed to be a ground germane to the provisions of the Rules relevant for the present purpose. He further placed reliance on Telenet Systems (P.) Ltd. v. CCE [2009] 23 STT 205 (Mum. - CESTAT) wherein this Bench observed that it is not in dispute that the mobile phones were procured by the company and supplied to functionaries/employe....

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.... of the contentions that the mobile phone is to be used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal has not been examined and the appellant had not argued before the lower authorities on this point. 8. On careful consideration of the arguments made by both the sides and refer....