TMI Blog2009 (1) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... ail the impugned orders. In terms of the Board’s clarification contained in Circular dated 23-8-2007, cases of use of phones found in the instant cases constituted input service and the service tax credit was admissible as CENVAT credit. - the ground on which the credit was disallowed, namely, the phones were not installed in the factory premises, cannot be termed to be a ground germane to the provisions of the Rules relevant for the present purpose – credit is allowed. - S/8-9/2007 - 129-130/2009 - Dated:- 28-1-2009 - Shri P. Karthikeyan, Member (T) Shri N.J. Kumaresh, SDR, for the Appellant. Shri M. Kannan, Advocate, for the Respondent. [Order]. - In the impugned orders, the Commissioner vacated demands for credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has sought to vacate these orders on the ground that they were inconsistent with the instructions contained in the Board's Circular No. 59/8/2003. In terms of the Apex Court's judgment in the case of Collector of Central Excise, Vadodara v. Dhiren Chemical Industries reported in 2002 (143) E.L.T. 19 (S.C.), the authorities in the department were bound by the instructions of the CBEC. The Commissioner (A) had wrongly held that the circular did not apply post 10-9-2004 when the CCR, 2004 was enacted. 4. The learned counsel for M/s. Brakes India Ltd. submits that vide Circular No. 97/8/2007-ST dated 23-8-2007, CBEC had clarified that its Circular No. 59/8/03-ST dated 20-6-2003 had been issued in the context of the STCR and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for M/s. Brakes India Ltd. their Lordships had dealt with the issue of admissibility of credit for use of mobile phones as follows 8. Therefore, on a conjoint reacting of the aforesaid provisions, it is apparent that the mobile service provider, who is liable to pay service tax, and recovers the same by adding such service tax in this bill, is the person providing taxable service and is rendering 'output service' so as to constitute 'input service' in hands of respondent assessee. 9. In the aforesaid circumstances, the ground on which the credit was disallowed, namely, the phones were not installed in the factory premises, cannot be termed to be a ground germane to the provisions of the Rules relevant for the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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