Service Tax credit

 Hello Friends, 

During the course of an Internal Audit I have come across an issue with respect to service tax. The Company is a Service Organization. The management of the Company has provided C.U.G. mobile connection for their employees. C.U.G. mobile connection has taken in the Company’s name. Every month the Management is paying mobile bill with service tax for the said mobile connection. 

While assessing Service Tax, the Service Tax-Assessing Officer is not allowed the said Service Tax credit. Mere reason he assumes that there may be some personal use of phone calls by the employees from those C.U.G. numbers.

 Can the Service Tax Assessing Officer reject the Service Tax Credit, which is allowed by the Service Tax rules?

 Whether Service Tax rules confer any powers to the Assessing Officer with respect to the aforesaid query?

 If there is any sections and/ or case laws as the case may be please quote it. 

With Best Regards, 

Kiran Kumar V