Vodafone Essar South Ltd. v. CST

CENVAT CREDIT RULES, 2004

--Cenvat credit on tower/ tower materials and prefabricated shelters --Allowability ----Assessee was not entitled to avail Cenvat credit of tower/ tower materials and prefabricated shelters as inputs used for providing telephone services. --Revenue denied Cenvat credit to assessee in respect of goods like angles, channels falling under Chapters 72 and 73 of CETA, 1985, and prefabricated building falling under Chapter Heading 9406 used for storage of generating sets. Revenue contended that said items did not fall under the definition of inputs. Assessee submitted that unless the angles, channels, etc., were used to fabricate the tower, the same could not be used for providing telephone service. Held: In view of decision of larger bench in Tower Vision India (P) Ltd. 2016 (42) STR 249 (Tri.-LB), demand of Cenvat credit on tower/tower materials and prefabricated shelters was justified.