input credit availed on mobile phone bills or not?

dear friends,

we have registered in authorized service station. we have input credit availed on mobile phone bills, but department is disallowed because of mobile phone bills are not allowed as input service. so, please help us.

 

Replies (3)
dear rama rule 4 of the Cenvat credit rules clearly defines that the credit available on any service can be utilised while paying duty on output service or product. as in your case, u can very well adjust the credit available on mobile bills PROVIDED THE MOBILES ARE REGISTERED ON THE SAME NAME OF THE COMPANY ETC. WHO IS LIABLE TO PAY THE OUTPUT DUTY
dear kansal, our registered premises is the separate building & registered office is seperate building. we have received mobile phone bills in name of registered office only. in this case, we have used all the bills as input. but department is disallowed the above cell phones amount because of premises is difference and mobile phone are not allowed as input. no more

Go through the Circular No 97/8/2007-ST dated 23-08-2007 for the clarification

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