CENVAT Credit on Mobile Towers & Shelters Allowed by Gauhati HC 📲💼 – Refund Granted with Interest
🔑 Key Takeaways:
• Towers and shelters are 'inputs' under Rule 2(k) and 'capital goods' under Rule 2(a) of CENVAT Credit Rules.
• Essentiality test: Without towers, mobile telephony is impractical.
• SC precedent is binding on similar GST disputes.
• Refund with interest directed due to wrongful denial of credit.
📲 #GST #CENVATCredit #TaxLitigation
Assessee’s Argument:
Towers and shelters are indispensable for mobile services, making them 'inputs' under Rule 2(k) or 'capital goods' under Rule 2(a).
Department's Argument:
Towers are immovable structures, not 'goods,' and thus not eligible for CENVAT credit. Shelters merely house equipment and have no direct nexus with service provision.
Court Judgment:
Following SC's ruling, HC allowed Assessee’s appeal, set aside CESTAT’s order, and dismissed the Department’s appeal. Refund of ₹33.78 lakh with interest directed.
BHARTI AIRTEL LTD. vs THE COMMISSIONER OF CENTRAL EXCISE, GUWAHATI, ASSAM– Gauhati HC
[C.Ex. App./7/2019; dated 13-Feb-2025]