9911796707
TMI Blog2025 (2) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 1042 - SUPREME COURT] observed that 'the tower and pre-fabricated buildings (PFBs) are "goods" and not immovable property and since these goods are used for providing mobile telecommunication services, the inescapable conclusion is that they would also qualify as "inputs" under Rule 2(k) for the purpose of credit benefits under the CENVAT Rules.'
Conclusion - The structures essential for service provision, even if not directly involved in the service, qualify as inputs. CENVAT Credit allowed.
Appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 ………………………………. However, as mentioned above when "input" has been defined with reference to providing output service, the definition clauses does not explain it so elaborately but merely uses the simple expression i.e. "used for providing any output service". In our view, even if the definition of "input" with reference to output service may not have been explained in an expansive manner as in the case of manufacture of final product under Rule 2(k)(i), the definition of "input" with reference to providing output service under Rule 2(k)(ii) need not be given a restrictive meaning as sought to be done by the CESTAT by holding that tower is not used direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lls for improving the quality of the yarn produced in general, and even though humidifiers were essentially electric motors and not directly connected with the manufacturing process of yarns, yet these were considered to be machineries for use in the manufacture of yarn. The said finding by the Gujarat High Court was based on the essentiality of the humidifiers. By applying the same principle in the present case, towers and PFBs though themselves are not electrical equipment, are essential for proper functioning of antenna. Thus tower being essential to rendering of output service of mobile telephony, these items certainly can be considered to be "inputs" akin to antenna. Without the towers and the PFBs, there cannot be proper service of mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignal by the antennas. Therefore, there can be no denying of the fact that there is a close proximity and nexus between their functioning and the ultimate transmission of radio signals which is the output service rendered by the MSPs. Hence, the view of the CESTAT which has not been disturbed by the Bombay High Court does not commend our acceptance. 11.12.6 Having held that the tower and pre-fabricated buildings (PFBs) are "goods" and not immovable property and since these goods are used for providing mobile telecommunication services, the inescapable conclusion is that they would also qualify as "inputs" under Rule 2(k) for the purpose of credit benefits under the CENVAT Rules. 11.13 For the foregoing reasons, we agree with the conclus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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