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TMI Blog2024 (11) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the means clause of the definition of input service includes those services which are used by the service provider for providing output services. Given the wide ambit of the said definition, we hold that the CENVAT credit availed by the appellant on the business support services qualifies as 'input services'. Accordingly, we hold that the Appellant is eligible for the credit as 'input service'. The issue is no more res integra as this Tribunal has already decided the same issue of the appellant for the prior period April 2011 to December 2011 and allowed the Cenvat Credit on such services as reported in M/s. Bharti Hexacom Limited [ 2024 (10) TMI 1064 - CESTAT KOLKATA] We find that the appellant is eligible for the CENVAT credit availed on the business support services, which qualifies as 'input services' and accordingly, we set aside the disallowance of the credit in the impugned order. CENVAT Credit on DG sets and tower dismantling services - We observe that the DG sets needs to be dismantled when they stop working due to wear and tear or due to various administrative reasons. When they are dismantled and a new DG set needs to be installed in its pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, procurement and filling of diesel b. DG sets and tower dismantling services 2.2 The said Notice was adjudicated by the Ld. Additional Commissioner vide Order-in-Original dated 30.04.2014, wherein CENVAT Credit of Rs. 41,91,154/- availed on services of transportation, procurement and filling of diesel and CENVAT Credit of Rs. 26,729/- availed on DG set and tower dismantling services, were disallowed as ineligible credit. 2.3. On appeal, the disallowance of credit was upheld vide the impugned order. 2.4. Aggrieved against the disallowance of the said credits, the Appellant has filed this appeal. 3. It is the submission of the Appellant that the impugned order has upheld the disallowance of credit based on the following findings: (i) Diesel does not fall under the definition of input , therefore CENVAT credit on services used for transportation and procurement of diesel is not admissible. Further, the Appellant failed to provide any evidence in support of their contentions that the input services were received for providing output services. (ii) Regarding dismantling services used for DG sets and towers, such services are not used for providing telecommunication services. Furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VAT Credit on such services in the case of M/s. Bharti Hexacom Limited vs. Commissioner of Central Excise and Service Tax [Final Order No. 77058 of 2024 dated 10.09.2024 in Service Tax Appeal No. 75111 of 2015 CESTAT, Kolkata]. 3.4. The appellant also placed reliance on the following decisions, wherein the credit on identical services has been allowed to the assessees: a. Idea Cellular Ltd. v. Commr. of ST, Mumbai, [2016 (9) TMI 1136]. b. B4S Solutions Pvt. Ltd. v. CCE, Ghaziabad, [2018 (4) TMI 964 - CESTAT Allahabad] c. Vodafone Essar South Ltd., v. CCE, Meerut-I, [2017 (51) S.T.R. 77 (Tri. - All.)] 3.5. Therefore, the Appellant submits that CENVAT Credit availed on the said services ought not be denied specifically where there is no dispute regarding payment of service tax thereon. 4. Regarding disallowance of CENVAT Credit of Rs. 26,729/- availed on DG set and tower dismantling services, the Appellant pointed out that for the functioning of the DG sets, it is absolutely necessary for running of the cell sites and pointed out further that the towers are essential to provide the network to the subscribers of the Appellant; without such towers, it would be completely impossible to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal documents. 9. We observe that the issues to be decided in this appeal is whether the Appellant is eligible to avail CENVAT Credit on the following inward supplies: - A. Services of transportation, procurement and filling of diesel. B. DG set and tower dismantling services. 9.1. Regarding availment of CENVAT Credit of Rs. 41,91,154/- on the services of transportation, procurement and filling of diesel by the appellant, we observe that that the DG sets are necessary for running of the cell sites and providing the telecommunication service by the appellant. For continuous running of the DG sets, diesel should always be available. Thus, as a part of providing operations maintenance services, the service providers procured, transported and filled diesel in the DG sets to ensure their continuous operation and sustenance of the cell sites. On such activity of procurement, transportation and filling, the service providers charged service tax to the Appellant under the head Business Support Services. We observe that the means clause of the definition of input service includes those services which are used by the service provider for providing output services. Given the wide ambit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of diesel for the period from April 2011 to December 2011, we observe that during the underlying period, the Appellant have outsourced the said activity of performing Operations Maintenance to service providers who were responsible to ensure upkeep of cell site including the DG sets . Diesel is always required for the running the DG sets. Thus, as a part of providing operations maintenance services, the service providers procured, transported and filled diesel in the DG sets to ensure their continuous operation and sustenance of the cell site. On such activity of procurement, transportation and filling, the service providers charged service tax to the Appellant under the head Business Support Services. We observe that at the cell site, uninterrupted power supply is required to effectively provide telecommunication services to the subscribers. Thus, we hold that the said services are 'input services' for the Appellant for rendering their output services. In view thereof, we hold that the appellant are eligible for the CENVAT Credit availed on these input services . 10.1. In view of the above, we find that the appellant is eligible for the CENVAT credit availed on the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X
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