2009 (1) TMI 146

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....d 5-12-06, 205/06-ST dated 15-12-06 and 169/06-ST dated 4-12-06 confirming Cenvat credit demands of Rs. 1,20,246/-, Rs. 8,201/- and Rs. 9,363/- respectively against the Respondent and also imposing penalty on them. The Respondents are manufacturer of cement in their plants at Nimbahera and Mangrol and avail Cenvat credit facility. The point of dispute is as to whether they are eligible for service tax credit in respect of "Rent a cab services", "cellular telephone services", "repair of car/motor vehicle service" and "photography services". According to Revenue, these services cannot be treated as "input services" used in or in relation to manufacture of cement. 2. Heard both the sides. 2.1 Shri A.K. Rastogi, the learned Departmental R....

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....ies evidencing that a particular production process was as per requirement of this statute, that the Respondent-company maintains of fleet of cars and other vehicles for use of their service offices for Respondent-company's work and repair and maintenance expenses have been incurred for maintenance of these vehicles, that cellular phones have been used for the company's work only and personal use of such phones has to be paid for by the employee, that credit in respect of mobile phone is available in view of Tribunal's judgments in cases of Indian Rayon and Industries Ltd. v. CCE, Bhavnagar reported in 2006 (4) S.T.R. 79 and Grasim Industries v. CCE, Jaipur-II reported in 2008 (11) S.T.R. 168, that as per the Tribunal's judgment in case of ....

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....they have not established that these services were used in relation to manufacture of finished product and its clearance from the place of removal. On going through the orders-in-original, I find that in course of adjudication proceedings before the Deputy Commissioner, the use of each of these services in relation to manufacture had been explained. 3.1 As per the Tribunal's judgments in case of Indian Rayon & Industries Ltd. (supra) and Grasim Industries (supra), service tax paid on mobile telephone service is available to service provides of output service and manufacturers. The Respondent's plea that the mobile phones given to their service offices and staff for company's work and personal use of such phones has to be paid for the emp....