CCE (LTU) Vs. BRAKES INDIA LTD.

JUDGEMENT

(1.) THIS application filed by the Revenue (appellant) is for stay of operation of the impugned order. After hearing both sides, I am of the view that the appeal itself requires to be finally disposed of at this stage. Accordingly, after dismissing the above application, I take up the appeal.

(2.) THE lower appellate authority allowed CENVAT credit on input service (telephone service) to the extent of Rs. 1,32,334/ - to the respondents for the period November 2006 to June 2007. It had also vacated a penalty of Rs. 1,000/ - imposed on the party by the original authority. In the present appeal, it is the case of the Revenue that the above service received on cell phones used by members of the staff of the respondent -company was not to be considered as having been received in or in relation to the manufacture of final products by the company and therefore the service would not constitute 'input service' within the meaning of its definition given under Rule 2(1)(ii) of the CENVAT Credit Rules, 2004. The learned SDR has reiterated this case of the Department. It is submitted by the learned Counsel for the respondents that the issue is no longer res integra. He has cited the following decisions of this Tribunal:

(3.) IN the result, the impugned order is sustained and this appeal is dismissed.