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July 2011

(2011) 22 STR 214 (Tri.-Chennai.) — CCEx., Tirunelveli v. DCW Ltd.

By Puloma Dalal
Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Cenvat credit of Service tax paid on air travel service, servicing charges and insurance charges of company vehicle and residential telephone lines of staff of the assessee — Credit eligible — Revenue’s appeal rejected.

Facts:
The Revenue was in appeal for Cenvat credit of Service tax paid on passenger air fare, servicing and insurance charges of company vehicle and on residential telephone lines of staff.

Held:
(a) The respondents were eligible for credit of Service tax paid on air travel fare if the air travel was performed for company’s business.

(b) The service tax paid on servicing and insurance charges of company vehicle being in relation to manufacture of final products was held to be allowed in view of the Tribunals decision in the case of CCE., Guntur v. CCL Products (India) Ltd., 2009 (16) STR 305.

(c) The credit of Service tax paid on residential telephone lines of staff was held to be admissible following the decision of ITC Ltd. v. CCEx., Salem, 2009 (14) STR 847.

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