2019 (11) TMI 1162

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....llant Ms. Krati Somani, Advocate, Shri G. M. Sharma And Tarun Kumar, ARs for the Respondent ORDER Per: Ashok Jindal The appellant is in appeal against the impugned order wherein the Cenvat credit has been denied on tower and shelters and credit on services used for erection of towers for providing telecommunication services. 2. Heard the parties. 3. On consideration of the arguments ad....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....decision of the Hon'ble Delhi High Court in the case of Bharti Infratel Ltd. (supra) wherein the Hon'ble High Court allowed the cenvat credit in respect of towers, shelter parts thereof has observed as under:- (i) The Revenue did not dispute that the towers and shelters are merely bolted or fastened. The foundation is necessary only to make a wobble free operation (stability) of the equipment a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....placement of BTS and other items. (vii) Alternatively, towers are shelters qualify as "inputs" 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 conju....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... cannot determine eligibility to avail credit. Emergence of immovable property in the intermediate stage also cannot disentitle the Assessee-Appellant's eligibility to avail credit. Therefore, we hold that the assessee-appellant are entitled to avail cenvat credit on items, towers, shelter parts thereof being input used for providing output service. In these circumstances, we dismiss the appeal....