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PJ/CASE LAW/2016-17/3144

Whether credit of service tax on landline telephone at proprietor’s residence admissible?

Case:-MILEEN ENGINEERS VS COMMISSIONER OF CENTRAL EXCISE, MUMBAI III

Citation:- 2016-TIOL-1323-CESTAT-MUM

Brief Facts:-When this appeal was called out none appeared on behalf of the appellant nor there is any request for adjournment. Since the issue involved lies in a narrow compass, Tribunal take up the appeal for disposal in the absence of any representation. Heard learned D.R.

Appellants Contention:-None appeared on behalf of the appellant

Respondents Contention:-It is the case of Revenue that the land line installation on the residence of the proprietor is not put to use for the business purposes.

Reasoning of Judgement:-On perusal of the records, Tribunal find that the issue involved is regarding CENVAT credit on service tax paid by the appellant to the telephone Company on the landline installation at the residence of the proprietor.
In view of the tribunal this argument put forth by the lower authorities in the impugned order is totally devoid of merits. The proprietor is having a landline telephone and will be using the same for his business. In any case the service tax paid to the telephone company is eligible for CENVAT credit is the law, has been settled by various judgements by this Tribunal, one of being CCE v. Andhra Pradesh Paper Mills Ltd. – 2010 (254) ELT 354 (Tri. Bang) = 2010-TIOL-904-CESTAT-BANG. In view of the foregoing, they find that the impugned order is unsustainable and liable to be set aside and do so.
The impugned order is set aside and the appeal is allowed.
 
Decision:-Appeal allowed.
 
Comment:- The gist of the case is that the proprietor having a landline telephone will be using the same for his business, therefore service tax credit is admissible. The same has been settled by various judgments by this Tribunal, one of being CCE v. Andhra Pradesh Paper Mills Ltd. wherein the service tax paid for telephone services is eligible for CENVAT credit.

Prepared By:- Neelam Jain
 

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