CENVAT credit eligibility for various services used by appellant ...

Telecom company wins CENVAT credit eligibility case for employee services, diesel, prefab shelters.

Case Laws     Service Tax

October 22, 2024

CENVAT credit eligibility for various services used by appellant - transportation of household goods of employees, travel/journeys by employees for official purposes, procurement and filling of diesel for DG sets at cell sites, and prefabricated buildings used as shelters treated as capital goods. Tribunal held that during relevant period, definition of 'input services' was wide, covering services used in relation to business. Hence, credit availed on transportation of employee goods, employee travel, diesel procurement/filling eligible as 'input services'. Prefabricated buildings/shelters are accessories to Base Transceiver Station (BTS), qualifying as capital goods eligible for CENVAT credit. Extended period of limitation not invokable as no evidence of suppression with intent to evade tax. Appeal allowed.

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