2015 (4) TMI 253

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....stion of law: Whether the Tribunal has fallen into error by holding that Access Deficit Charge is an Input Service as per the definition in Rule 2(l) of the Cenvat Credit Rules, 2004." 2.  The brief facts of the case are as follows: The assessee in this case availed credit of service tax paid on various input services used in providing the taxable service.  One of the credits so availed is the service tax paid on Access Deficit Charges (ADC) to BSNL.  The said ADC is charged by BSNL on the basis of number of calls made by the assessee's subscribers to BSNL at remote locations.  The service tax was charged by BSNL for the ADC charges and the assessee paid service tax thereon.  The Department collected th....

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....vice.  This being the situation, availing the service tax credit on payment of ADC charges is incorrect in terms Rule 2(l) of the Cenvat Credit Rules 2004." 3. Aggrieved by the Order-in-Original, the assessee pursued the matter before the Tribunal. 4. The Tribunal took the view that the service provided by the BSNL to the assessee is a telecom service as defined under Section 65(109a) of Finance Act, 1994 and held as follows: "We have considered the arguments on both sides.  We are not in agreement with the argument that BSNL is providing only a facility and not any service to the appellant.  After classifying the facility provided by BSNL as 'Telecom services" and collecting the service tax under such head, Reve....

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....zation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal. 8. In this case, we find that the finding of fact by the Tribunal that the facility provided by BSNL to the assessee, who, i....