2009 (10) TMI 553

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..... rds and hearing both sides, I find that the appellant-company supplied mobile phones to its employees and paid the phone bills for the above period. The impugned demand is based on such payments. The lower authorities have held that there is no nexus between the use of the mobile phones and the manufacture and/or clearance of excisable goods from the factory. The Original authority also found that the assessee had failed to prove that the mobile phones were used in or in relation to the manufacture of final products. On this basis, it was held that the assessee had not complied with the condition prescribed by the Board in Circular No. 97/8/2007-S.T., dated 23-8-2007. The appellate authority sustained these findings of the lower authority a .....

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..... ircular had to be complied with by any person claiming Cenvat credit on telephone service (mobile phone service included) as an input service. 4. After giving careful consideration to the submissions, I agree that the requisite evidence was not adduced before the adjudicating authority by the assessee. Before that authority, the assessee claimed that all the mobile phones in question were supplied by the company, that all the phone bills were paid by the company, that all the phone calls were made for official purposes only and that the use of the phones was integrally connected with the manufacture and clearance of the excisable goods from their factory. Nevertheless, these remained loud claims with no proof. The Board's circular da .....

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..... n this scenario, I am inclined to give them a reasonable opportunity by way of remand of this case to the original authority. 5. In the result, the orders of the lower authority are set aside and this appeal is allowed by way of remand, with a direction to the original authority to adjudicate the dispute afresh in accordance with law after giving the assessee a reasonable opportunity of adducing evidence and of being personally heard. The assessee is at liberty to avail themselves of such opportunity and adduce evidence to establish connection between the use of the mobile phones and the manufacture/clearance of finished goods from their factory during the period of dispute. It is made clear that the connection between the use of the .....

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