05 November 2011
As have not laid down our owon optic fiber cable in som areas, we have hired lease line from Railtel to carry cable TV signal from our control room to operator end and making payment for the same to Railtel.Hence we have claimed for Cenvat Credit against said input Service, but as per Service Tax Auditor it is not our input service so we cant claim for cenvat credit. So please give your opinion
05 November 2011
Input service means, inter alia, any services used by a provider of taxable service for providing an output service. In your case it seems that hiring lease line from railtel is an input service.