2019 (11) TMI 1162

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....communication services. 2. Heard the parties. 3. On consideration of the arguments advanced by both sides, we find that the following issue emerges:- (a) Whether the appellant is entitled for Cenvat credit on tower and shelters and support structure which has been used for providing telecommunication services or not? And (b) Whether the appellant is entitled for credit on services used for erection of towers for providing telecommunication services or not? 4. We find that both the issues have been decided by this Tribunal in the case of Bharati Infratel Limited vide Final Order No.60592-60594/2019 dt.22.5.2019, wherein this Tribunal as under:- "3. Considering the fact that the issue has been settled by th....

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....puts" the test used for determining whether the capital goods are "used in the manufacture of goods" is the functional utility test- BTS is an integrated system and each component in the BTS have to work in tandem to provide cellular connectivity. Thus, there is an actual use of towers and shelters in conjunction with the capital goods, namely BTS and antennae. The pre-fabricated shelters are therefore inputs as per rule 2(K) of the Cenvat credit Rules. (viii) The eligibility to claim credit on inputs is to be determined at the time of receipt of goods in terms of Rule 4(1) of the Credit Rules. The definition of "inputs" does not contain any condition relating to emergence of immovable property to be ineligible for taking credit. ....