Telephone services at residence of workers are input services.

The appellant was in appeal against the decision of denial of refund of CENVAT credit paid on construction services, security services and maintenance of garden in respect of residential colony of the employees and service tax paid in respect of telephone services installed in the residence of officers.

CESTAT, AHMEDABAD BENCH held

That the availability of CENVAT credit in respect of maintenance, civil construction and security services for employees residential colony should be considered as staff welfare activity and CENVAT is not admissible for same.

As regards telephone service, it is held that the appellants are eligible for credit of service tax paid on telephone services in respect of telephone installed in the residence of employees.

Bank of India v. Commissioner of Service Tax, Ahmedabad