Commissioner of C.Ex. (LTU), Channai v. Brakes India Ltd., 2009 (13) S.T.R.648 (Tri. -Chennai)

Cenvat Credit of Service Tax paid on Mobile phone Services-Admissible:

In Commissioner of C.Ex. (LTU), Channai v. Brakes India Ltd., 2009 (13)
S.T.R.648 (Tri. -Chennai) the Adjudicating Authority denied credit of service
tax paid on mobile phones which were operated by their staff. In connection
with the business of the company. On appeal, the Commissioner (Appeals)
allowed the credit and set aside the Adjudication Order. On departmental
appeal, the Tribunal, relying on the decision in Grasim Industries Ltd. V.
Comissioner -2008 (11) S.T.R.168 (Tri.Del.) and three other decisions as well
as the clarifications contained in para 8.3 of Board’s Circular 97/8/2007-S.T.
dated 23.08.2007, held that the mobile phones of the respondents, which
were operated by the staff in connection with the business of the company,
are input services and set aside the departmental appeal.