It is argued that CENVAT Credit is not allowed on Service Tax paid on mobile phones.
Argument is backed by Circular No. 59/8/2003 dated 20.06.2003.
According to me CENVA credit is available on mobile bills also. i am supporting my view point by following two arguments
Argument: 1.
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.
Argument: 2.
In the case of "Indian Rayon & Industries Ltd. vs. CCE Bhavnagar 2006 (4) STR 79 (Tri-Mumbai)", the Tribunal Held that service tax paid on mobile phone is available as credit to eligible service providers/manufacturers in the absence of any express prohibition under CENVAT Credit Rules, 2004. It is further held that Board's Circular No. 59/8/2003-ST dated 20-06-2003 was relevant only under the erstwhile Service Tax Credit Rules, 2002 and can not be mad applicable to CENVAT Credit Rules, 2004.
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