The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad bench has held that the cenvat credit shall be allowed on the input paid on of Telephone used by various officers of the Port installed at their residential premises.
The department denied Cenvat credit availed by the appellant- Port on the input service of Telephone used by various officers installed at their residential premises. The impugned order relied on the CBEC clarification to hold that the Cenvat credit is admissible only in respect of telephone service if the same is installed in the office premises.
Before the Tribunal, the appellant argued that only the specific amount of Rs. 385/- per month is reimbursed to a certain officer (except HODs). In the case of HODs, the actual amount is reimbursed. It was further argued that the Port operates round the clock and the officers are required to remain in touch all the time. It was argued that in these circumstances the credit should not be denied.
The Tribunal concurred with the above argument and noted that the Port operates 24×7 at 365 days and there can be an emergency and all the officers need to be accessible all time.
“In this circumstance, telephones at the residential premises are an essential ingredient for the provision of service and thus, credit on the Telephone installed at the residential premises cannot be denied,” the Tribunal said.
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