2008 (7) TMI 1021 - AT - Central Excise

Summary

Issues involved: Confirmation of duty against the appellant by denying input credit for tower used in output services as telephone services.

Summary:
The Appellate Tribunal CESTAT AHMEDABAD confirmed a duty of &8377; 2,26,20,002/- against the appellant for denying input credit related to a tower used in telephone services. The appellant claimed the credit on the tower itself, while the Commissioner stated that the credit was availed on materials like steel bars, tubes, angles, etc., used in the construction of the tower. The Tribunal found a basic dispute on the factual position and remanded the matter to the Commissioner for re-adjudication to clarify the nature of the duty claimed - whether on the tower or on materials used in its construction. The decision was based on the need to resolve this fundamental discrepancy at the lower level. The Tribunal referred to a previous stay order in a similar case to highlight the importance of clarifying the specific nature of the duty claimed. The impugned order was set aside for further clarification and resolution of the dispute at the lower level. The stay petition and appeal were disposed of accordingly.