Cenvat credit on hoarding structures was admissible under the wider pre-2009 input definition.

Cenvat credit on angles, channels and similar materials used to erect unipoles or hoardings for advertisement services was held admissible under the pre-07.07.2009 definition of inputs in Rule 2(k) of the Cenvat Credit Rules, 2004. The materials were treated as part of structures supporting the output service, and the expression "attached to the earth" was read consistently with Section 3 of the Transfer of Property Act. Because the exclusion from the definition of inputs took effect only from 07.07.2009, the wider earlier definition applied to the disputed period, entitling the assessee to relief.

---

---

Issues: Whether Cenvat credit was admissible on angles, channels, sections and similar materials used for erecting unipoles or hoardings fixed to the earth for providing advertisement services.

Analysis: The materials were used in structures that supported the advertising activity and the dispute was governed by the pre-07.07.2009 definition of inputs under Rule 2(k) of the Cenvat Credit Rules, 2004. The Court relied on the principle that the expression "attached to the earth" must be understood in the sense indicated in Section 3 of the Transfer of Property Act, and noted that the materials in question formed part of structures used for rendering the output service. Since the relevant exclusion from the definition of inputs came into force only from 07.07.2009, the earlier period remained covered by the wider definition.

Conclusion: Cenvat credit on the materials was admissible and the assessee was entitled to relief.

---