TaxTMI 
TaxTMI 
2018 (2) TMI 1109
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....chnical testing and analysis service etc. Appellant has taken centralized service tax registration at NOIDA in respect of all its taxable service activities provided from various locations throughout India. 2. In the financial year 2006-07, appellant opened an Electro Magnetic Compatibility (EMC) and Durability Test Lab (testing lab) at Chennai from where the appellant started providing product testing & certification service and concept manufacturing services to various customers. This lap offers product compliance testing for various physical parameters such as environmental testing which include thermal shock, rain, dust, temperature cycling, humidity and full European compliance testing and certification. The lap was set up to test du....
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....ellant has shown the goods on which they have taken the Cenvat credit as capital goods if they do not qualify as capital goods in terms of Rule 2(a) of Cenvat Credit Rules, 2004, the said goods be treated as inputs in terms of Rule 2(k)(ii) of the Cenvat Credit Rules, 2004. Therefore they are entitled to avail Cenvat credit. It was also alleged that value of these inputs have not been formed the part of assessable value. The appellant is not entitled to get Cenvat Credit. It is the contention of the ld.Counsel that Cenvat Credit Rules nowhere provides that value of inputs or capital goods is to be formed the part of assessable value. It is further submitted that it was also held that the items in question do not have a consuming nature henc....
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....itled to avail Cenvat credit on not. We find that the appellant has taken Cenvat credit as capital goods on the goods in question. Although they do not qualify as capital goods as per Rule 2(a) of Cenvat Credit Rules, 2004, but in alternate it is the claim of the appellant that these goods be treated as inputs in terms of rule 2(k)(ii) of Cenvat Credit Rules, 2004. For better appreciation Rule 2(k) is reproduced below:- RULE 2... (k) input means (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cuttin....
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....r in the impugned order. In fact the input is required to be used for providing output service. Admittedly these inputs have been used by the appellant for providing output service. The similar issue came up before the Tribunal in the case of GTL Infrastructure Ltd. (supra) wherein this Tribunal has observed as under:- "8. On going through the above said provision of Rule 2(k)(i) ibid, we find it deals with manufacturing activity. Admittedly, the appellants are providing output service, therefore, Rule 2k(ii) ibid, is relevant to the facts of the case in hand, wherein, it has been said that all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output se....
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....uthority has heavily relied upon the decision of Bharti Airtel Ltd. (supra); in the said case the facts are totally different to the facts of the case in hand. In fact in that case appellant was engaged in providing cellular telephone service and as per Board Circular No. 137/315/2007-CX-4, dated 26-2-2008, it is clarified that no Cenvat Credit on towers and BTS cabin is permissible for Cellular Phone Service Provider. In the instant case, the towers and the cabins are used by the appellant as Passive Telecom Infrastructure for providing output service namely Business Auxiliary Service as declared by the appellant to the department in 2005 and agreed to by the department in their reply dated 20-9-2005. 9. We further find that in this case....