Rule 3(6) of erstwhile Service Tax Credit Rules, 2002 read as:
"Service tax credit on the service provided in relation to telephone connection shall be allowed only in respect of such telephone connections which are installed in the premises from where output service is provided."
The Service Tax Credit Rules, 2002 has been substituted by CENVAT Credit Rules, 2004 vide notification no. 23/2004-CE(NT), dated 10-09-2004. The new Rules does not contain any prohibition to take credit of service tax paid on mobile phone. Hence cenvat credit on moblile phone is available w.e.f. 10-09-2004.
Service Tax paid on mobile phone has been held to be eligible for cenvat credit in the case of Indian Rayon & Industries Ltd. vs. CCE Bhavnagar 2006 (4) STR 79 (Tri-Mumbai)
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