2007 (7) TMI 423

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..... t and perused the record as well as the contentions raised in the appeal memo. The applicant has relied upon the provisions of sub-rule (5) of Rule 4 of the Service Tax Credit Rules, 2002 and availed Service Tax credit on telephone bills @ 35% in accordance with Rule 3(5). The authorities below, on the basis of sub-rule (6) of Rule 3, have held that, since telephones were not installed in the prem .....

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..... or coverings therein let out for a consideration for organizing any official, social or business function." 'Mandap Keeper' as defined in Section 65(67) means, "a person who allows temporary occupation of a mandap for a consideration for organizing any official, social or business function'. For rendering output service as 'Mandap Keeper', no separate account was maintained. In such cases, as per .....

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..... connection". Therefore, even if telephone is installed at the reception counter, and if telephone connection is given to the Mandap area, that would, prima facie, satisfy the requirement of sub-rule (6) of Rule 3, so as to attract the provisions of Rule 3(5), in cases where no separate account of input service is maintained, and there are provided output services, which are subject to payment of S .....

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