2008 (10) TMI 84

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....s on the ground that following services on which credit of service tax has been availed during the quarter April 2006 to June 2006 could not be wholly consumed for export done during the quarter in question and these services were of general nature which could be utilized for a long period extending to several quarters. Services are: a) Consultation Engineering Service. b) Insurance Premium Employees (PA Policy). c) Maintenance & Repair Service. d) Service Charge. e) Legal and Professional Expenses. f) Mobile Phones. 2. Further, credit of service tax on mobile phones has been held to be inadmissible. 3. Learned advocate on behalf of the appellants submit that the appellants are 100% EOU and they are not selling any p....

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....ted by lower authorities is not correct. In Prestige Engineering (India) Ltd. Vs. CCE Meerut 1994 (4) RLT 333 (SC)=1994 (54) ECR 519 (SC), it was observed that expression defined in the Act is to be understood in the same sense wherever it occurs in the Act, Rules or Notification issued thereunder and the meaning is not to be restricted. Hon'ble High Court of Mumbai in Alpa Laboratories reported in 2004 (177) ELT 93 (Bom.) held that while interpreting the statute, the construction which will render policy provisions nugatory, cannot be accepted. Hon'ble Supreme Court in Bajaj Tempo Ltd. Mumbai Vs. CIT (1992) 3 Supreme Court Cases 78 observed that while interpreting the statute, provision granting incentives for promoting economic growth and....

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....se the appellants are claiming refund, Revenue has taken a stand that it is necessary to co-relate use of the input services with the final product. Admittedly, it is quite clear that if the appellants were to have clearances to domestic tariff area, they could have used the credit for payment of duty on the final product and no co-relation would have been required and if that is the situation, Revenue has no ground to reject the refund claim. According to existing Cenvat Credit Rules, the appellants are definitely entitled to use credit of the service tax paid on the services impugned in the order of lower authority for domestic clearances and according to me that is the requirement which is required to be fulfilled. Once the credit has be....