2024 (4) TMI 468

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.... appeal is whether the assessee, who renders advertisement services, is entitled to Cenvat credit on MS angles, shapes, sections and channels etc., used for erection of "Unipoles"/hoardings which are fixed to the earth and on which the appellant/assessee displays advertisement. It is not in dispute that the assessee is involved in rendering advertisement services and has been paying service tax on the advertisement receipts. The only question is whether the assessee is entitled to the Cenvat credit on the aforementioned materials. It is the case of the department that they are not entitled to the benefit of Cenvat credit on these goods, since these are not inputs used for rendering output services and further the hoardings and unipoles are ....

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....ine the term "attached to the earth". However, Section 3 of the Transfer of Property Act gives the following meaning to the expression "attached to the earth". "(a) Rooted in the earth as in the case of trees and shrubs; (b) Embedded in the earth as in the case of walls and buildings; (c) Attached to what is so embedded must be for the permanent beneficial enjoyment of that to which it is attached." 5. Learned counsel submits that in this case the hoardings are attached to the foundation embedded in earth with nuts and bolts. Such attachment is not for the benefit of the foundation; on the other hand, the foundation supports the hoardings. The hoarding in question is not by itself either rooted in the earth nor....

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....serts that the assessee's appeal needs to be dismissed. 7. Upon hearing the parties and perusal of records, we find that the issue herein is squarely covered by the precedent order in appellant's own case of this Tribunal in Final Order No.A/30655-30656/2019 dt.06.06.2019, wherein similar dispute has been held in favour of the appellant and against the Revenue. We further find that the exclusion clause in Explanation (2) of Rule 2(k) of CCR was introduced w.e.f. 07.07.2009, vide Notification No. 16/2009- CE. The Explanation (2) reads as follows: "Explanation 2. - Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer but shall not include cement, angles, channels, C....