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B. V. NAGARATHNA, N. KOTISWAR SINGH
Bharti Airtel Ltd. – Appellant
Versus
Commissioner Of Central Excise, Pune – Respondent
JUDGMENT :
NONGMEIKAPAM KOTISWAR SINGH, J.
1. The core issue involved in this set of appeals is whether the mobile service providers (MSPs) who pay excise duties on various items for setting up their business more particularly for erection of mobile towers and peripherals like pre-fabricated buildings (PFBs) etc. can take the benefit of CENVAT Credit under the CENVAT Credit Rules, 2004 (hereinafter referred to as the “CENVAT Rules”) for the purpose of payment of service tax on the output services rendered by them. With respect to the same, conflicting views have been given by two High Courts, namely the High Court of Bombay and High Court of Delhi. The Bombay High Court has ruled against the MSPs, favouring the Revenue, holding that MSPs are not entitled to CENVAT credit on mobile towers and prefabricated buildings. Whereas, the Delhi High Court has held to the contrary extending the benefit of CENVAT credit to the MSPs. The decisions of both the High Courts have been challenged before this Court by the respective aggrieved parties, by way of the present set of appeals.
1.1 In the lead judgment of the Bombay High Court which has been challenged before this Court in Civil Appeal No. 10
Mobile towers and prefabricated buildings qualify as capital goods and inputs under CENVAT Rules, allowing mobile service providers to claim CENVAT credit on excise duties paid.
Towers and shelters used in telecommunication qualify as 'inputs' under CENVAT Rules, allowing for credit claims despite being classified as immovable property.
Telecommunication towers are considered movable property and qualify for input tax credit, as they do not meet the criteria for immovable property under Section 17(5) of the CGST Act.
The definition of 'input service' under CENVAT Credit Rules includes services used by manufacturers, regardless of location, affirming entitlement to credit for service tax paid on windmill installat....
The entitlement to Cenvat credit for service tax on installation and maintenance of windmills is upheld, emphasizing that location does not negate its admissibility as an input service in manufacturi....
The court held that services related to electricity generation for manufacturing qualify as 'input services' for Cenvat Credit, irrespective of physical location, reaffirming broad interpretations of....
The definition of 'input service' in Cenvat Credit Rules is broad and does not require services to be received at the manufacturing site to qualify for credit.
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