CENVAT Credit eligibility confirmed for mobile towers and prefabricated buildings as inputs and capital goods for telecom services.
Mobile towers and pre fabricated buildings qualify as Capital Goods under Rule 2(a)(A) and as "inputs" under Rule 2(k) of the CENVAT Credit Rules, 2004 where they satisfy the Functionality, Permanency and Marketability tests and serve as accessories that enhance the effectiveness of antennas and BTS units, thereby permitting CENVAT credit for service tax paid on these items. (AI Summary)