TaxTMI 
TaxTMI 
2017 (7) TMI 723
X X X X Extracts X X X X
X X X X Extracts X X X X
....d on structural steel used for fabrication of unipoles. It is the case of the appellant that the structural steel are used for fabrication of unipoles on which the appellant displays the advertisements/hoardings of their clients and discharges service tax liability under the category of Advertising Agency Services, hence they are eligible for availment of CENVAT credit of Central Excise duty on such structural steel while it is the case of the Revenue that the unipole which is fabricated is not goods and is an immovable property. Hence the CENVAT credit cannot be allowed. Both the lower authorities have held that the CENVAT credit has been rightly denied and also invocation of extended period in the show-cause notice seems to be correct. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... vehemently that the fabricated and erected structures for the purpose of display of advertisements have to be considered as movable property and they can be removed from one place and installed in another place. This is a very debatable issue. Even though photographs were produced on going through the photographs, it is difficult to come to a conclusion. Nevertheless it is quite clear that the issue is debatable and on this ground itself extended period could not have been invoked since two ways are possible. It was pointed out by the learned AR that Hon'ble High Court of Bombay in the case of Bharti Airtel Ltd. v. CCE, Pune-III [2014 (35) S.T.R. 865 (Bom.)] in somewhat similar circumstances has held that Cenvat credit would not be admissi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r cables etc. and that these systems are to be treated as composite system classified under Chapter 85.25 of the Tariff Act and be treated as capital goods and credit be allowed, also is not acceptable. It is clear that each of the component had independent functions and hence, they cannot be treated and classified as single unit. It is clear that all capital goods are not eligible for credit and only those relatable to the output services would be eligible for credit. The goods in question in any case cannot be held to be capital goods for the purpose of Cenvat credit as they are neither components, spares and accessories of goods falling under any of the chapters or headings of the Central Excise Tariff Schedule as specified in sub-clause....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, within the factory of production, and as provided in sub-clause (ii) all goods except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service. Explanation (2) of sub-rule (k) is also which provides that input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. A plain reading of the definition of input indicates that in the present context, clause (i) of Rule 2(k) may not be of relevance as same pertains to manufacturing activity and pertains to goods used in relation to manufacture of final product or any other purpose within the factory of production. Sub-clause (ii) has been referred to as rel....