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CENVAT credit — Cell towers, prefabricated building (pfb), printer, office chair, etc. — Neither capital goods nor inputs for providing cellular telephone services — Availed CENVAT credit on the towers, pfb, printer and office chairs. Held, CENVAT credit disallowable — The tower being an immovable property, would not qualify as a capital good or an input which was used for providing output service.
Facts:
The assessee was engaged in the business of providing cellular telephone service which was taxable under the Finance Act for provision of services. The appellant availed CENVAT credit on the towers, pfb, printer and office chairs. Revenue disallowed the CENVAT credit on the said goods on the ground that the tower being an immovable property, would not qualify as a capital good or an input which was used for providing output service.
Held:
The Tribunal held as follows:
The towers and pfb were not a part of an integrated system and were not included in the definition of capital goods.
Alternatively, the tower and pfb would not be considered as components since the components are inputs required to make a good a finished item. As the tower was not an input for the antennas, it would not be considered as a component of the antenna.
Also, as the tower being an immovable property did not satisfy the definition of goods, it would not be considered as an input used for providing output service. The same conclusion was drawn in respect of chairs, printer, etc.
