Bharat Sanchar Nigam Ltd. v. CCE

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers 2018 TaxPub(ST) 1542 (CESTAT-Bang) Bharat Sanchar Nigam Ltd. v. CCE FINANCE ACT, 1994 --Cenvat credit--Erroneously availed of on goodsDenial of----Cenvat credit was not available on tower/tower materials and prefabricated buildings/shelters neither as capital goods nor as inputs.--Assessee-company was engaged in providing telecommunication services. Revenue denied Cenvat credit on goods like angles, channels, beams and prefabricated buildings/shelters/PUF panels. Assessee contended that said the materials such as angles, channels, beams, etc., were actually used for erecting the telecommunication towers and the towers so erected were used for providing telecommunication services. *Held:* There was a clear-cut distinction between the inputs used and eligible for credit for a manufacturer vis-Ã -vis inputs used and eligible for a specific provider. In view of Tribunal decisions in various cases, assessees were not entitled to take Cenvat credit on tower/tower materials and prefabricated buildings/shelters as capital goods as well as inputs. Finance Act, 1994 Section 73 *Followed:Vodafone India Ltd. v. Commissioner of Central Excise, Mumbai II 2015 (40) S.T.R. 422 (Bom.) M/s. Bharti Airtel Ltd. (Earlier known as Bharti Tele-Ventures Ltd.) v. The Commissioner of Central Excise 2014 (35) S.T.R. 865 (Bom.) REFERRED :* CIT v. Tara Agencies: 2007 (214) ELT 491 (SC) FAVOUR : Against the assessee A.Y. : FINANCE ACT, 1944 --Penalty under section 78--Cenvat credit erroneously availed of on goodsImposition of ----Where the issue was in the nature of interpretation of eligibility of Cenvat credit. Imposition of penalty under section 78 was unwarranted --Penalty under section 78 was imposed on assessee in respect of Cenvat credit erroneously availed of on goods. *Held:* Since the issue was in the nature of interpretation of eligibility of Cenvat credit, imposition of penalty was unwarranted, therefore, the same was not imposable by invoking section 80 of the Finance Act, 1994. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2018 TaxPub(ST) 1542 (CESTAT-Bang)

Bharat Sanchar Nigam Ltd. v. CCE

FINANCE ACT, 1994

--Cenvat credit--Erroneously availed of on goodsDenial of----Cenvat credit was not available on tower/tower materials and prefabricated buildings/shelters neither as capital goods nor as inputs.--Assessee-company was engaged in providing telecommunication services. Revenue denied Cenvat credit on goods like angles, channels, beams and prefabricated buildings/shelters/PUF panels. Assessee contended that said the materials such as angles, channels, beams, etc., were actually used for erecting the telecommunication towers and the towers so erected were used for providing telecommunication services. Held: There was a clear-cut distinction between the inputs used and eligible for credit for a manufacturer vis-Ã -vis inputs used and eligible for a specific provider. In view of Tribunal decisions in various cases, assessees were not entitled to take Cenvat credit on tower/tower materials and prefabricated buildings/shelters as capital goods as well as inputs.

Finance Act, 1994 Section 73

Followed:Vodafone India Ltd. v. Commissioner of Central Excise, Mumbai II 2015 (40) S.T.R. 422 (Bom.) M/s. Bharti Airtel Ltd. (Earlier known as Bharti Tele-Ventures Ltd.) v. The Commissioner of Central Excise 2014 (35) S.T.R. 865 (Bom.)

REFERRED : CIT v. Tara Agencies: 2007 (214) ELT 491 (SC)

FAVOUR : Against the assessee

A.Y. :

FINANCE ACT, 1944

--Penalty under section 78--Cenvat credit erroneously availed of on goodsImposition of ----Where the issue was in the nature of interpretation of eligibility of Cenvat credit. Imposition of penalty under section 78 was unwarranted --Penalty under section 78 was imposed on assessee in respect of Cenvat credit erroneously availed of on goods. Held: Since the issue was in the nature of interpretation of eligibility of Cenvat credit, imposition of penalty was unwarranted, therefore, the same was not imposable by invoking section 80 of the Finance Act, 1994.