TaxTMI 
TaxTMI 
2014 (2) TMI 870
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....ce tax paid on telephone services, courier services and insurance services for insurance of the company's employees & vehicles. The cenvat credit of Rs.82,322/- was taken in December, 2005 to March, 2008 period and cenvat credit of Rs.51,630/- was taken during period from April, 2008 to Feb. 2010. The department being of the view that the cenvat credit in respect of these services is not admissible, issued two show cause notices which were adjudicated by the Asstt. Commissioner, who by two separate orders dropped the proceedings and allowed the cenvat credits in respect of the services. These orders of the Asstt. Commissioner were reviewed by the Commissioner and review appeals were filed before the Commissioner (Appeals). The Commissioner ....
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....uld be admissible for cenvat credit, that as regards telephone service, the same is in respect of landline telephones installed in the factory as well as mobile phones given to the appellant's employees for the company's were and that this service is also admissible for cenvat credit in view of the judgement of the Hon'ble Gujarat High Court in the case of CCE Vs. Excel Crop Care Ltd. reported in 2008 (12) STR 436 (Gujarat) and judgement of the Hon'ble Bombay High Court in the case of CCE, Nagpur Vs. Ultratech Cement reported in 2010 (20) STR 589 (Bombay), that in both the judgements, the Hon'ble High Courts have held that the cenvat credit of service tax paid on mobile telephone service supplied to the employees would be admissible and tha....
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....a functionary/official/employee of the company could use it for purposes connected with the manufacture and/or clearance of the final products. He, therefore, pleaded that there is no infirmity in the impugned order. 5. I have considered the submissions from both the sides and perused the records. 6. As regards the courier service, there is no dispute that the same had been used for dispatch of the documents connected with the business of the company. During the period of dispute, the inclusive portion of the definition of "input service" as given in Rule 2 (1) of the Cenvat Credit Rules specifically covered the "activities relating to business". Though the expression "activities relating to business' is followed by an expression "such as....
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....company to its employees for the company's work. Therefore, just because some calls may have been made by the employees for their person work, it cannot be presumed that mobile phones have been used by the employers for their personal work only. I find that on this issue two High Courts - Hon'ble Gujarat High Court in the case of Excel Crop Care Ltd. reported in 2008 (12) STR 436 (Gujarat) and Hon'ble Bombay High Court in the case of CCE, Nagpur Vs. Ultratech Cement reported in 2010 (20) STR 589 (Bombay) have held that the telephone services availed in respect of the mobile phones supplied to their employees are admissible for cenvat credit. In view of this, the impugned order disallowing the cenvat credit in respect of telephone services i....