VASAVADATTA CEMENT Vs. COMMISSIONER OF C. EX., BELGAUM

JUDGEMENT

(1.) THIS appeal arises from Order -in -Appeal No. 108/2006 -C.E. dated 28 -3 -2006 confirming the Order -in -Original No. 08/2005 -S.T. dated 15 -12 -2005 denying the Cenvat credit in respect of Service tax paid on Mobile Phones provided to Officers of the Company.

(2.) THE learned Consultant submits that the Board has reconsidered the issue and by Circular No. 97/8/2007, dated 23 -8 -2007, as in para 8.3, has taken a view that w.e.f. 10 -9 -2004 credit of service tax paid in respect of mobile telephone service is admissible, provided the mobile phone is used for providing output service or used in or in relation to manufacture of finished goods. He relies on the ruling of the Tribunal in Excel Crop Care Limited v. CCE, Ahmedabad - 2007 (7) S.T.R. 451 (Tribunal) = 2007 (81) RLT 566 (CESTAT -Ahbad.) wherein mobile phones used by employees and officers of a Company and tax paid thereon has been held to be admissible as Cenvat credit. Likewise, he relies on Indian Rayon and Industries Ltd. v. CCE, Bhavnagar - 2006 (4) S.T.R. 79 (Tri. -Mumbai) wherein also, in a similar circumstance, Service tax paid on mobile phones, which have been used for output service and manufacture has been held to be eligible for the Cenvat credit.

(3.) THE learned JDR submits that the matter has to go back to the original authority to verify as to whether the mobile phones had been used for providing output service or used in or in relation to manufacture of finished goods as noted in the cited Boards order. He submits that no such evidence was placed and as noted by the Commissioner. Therefore, the matter has to be sent back for verification.