Vodafone Mobile Services Limited Vs Commissioner of Central Excise (CESTAT Delhi)
CESTAT Delhi held that tower/ tower material and pre-fabricated buildings/ shelters are covered within the definition of ‘capital goods’ and hence eligible for Cenvat Credit
Facts-
The issue involved in the present appeal is about the eligibility of the appellant to claim CENVAT credit on tower, tower material, shelter, input services for the period from October 2004 to March 2012 and April 2014 to March 2015. The impugned order has confirmed the denial of CENVAT credit primarily on the ground that the subject goods, being attached to earth, are immovable in nature, and thus not used for providing output services. The Commissioner has relied on Board Circular dated 26.02.2008 and has held that such goods/services are received at cell sites and not at the registered premises and, thus CENVAT credit is not admissible.
Conclusion-
Jurisdictional Delhi High Court in the case of Vodafone Mobile Services has held that towers and shelters support the BTS in effective transmission of the mobile signals and therefore, enhance their efficiency. The towers and shelters plainly act as components/parts and in alternative as accessory to the BTS and would are covered by the definition of “capital goods”.
Held that the appellant would, therefore, be entitled to claim CENVAT credit on tower/tower material and pre- fabricated buildings/shelters.
FULL TEXT OF THE CESTAT DELHI ORDER
This appeal has been filed by M/s/ Vodafone Mobile Services Limited1 for setting aside the order dated February 22, 2017 passed by the Commissioner adjudicating the twelve show cause notices by confirming the denial of CENVAT credit on inputs, input services and capital goods used by the appellant for provision of telecommunication services.
2. The details of the twelve show cause notices and the period involved are as follows :
