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2015 (3) TMI 701 - AT - Service TaxAvailment and utilization of CENVAT Credit - Capital goods - Business Support Service - Held that:- There is no denying the fact that the resultant output service provided by them is 'Passive Telecom Infrastructure' i.e. Business Support Service. Therefore, there is direct nexus of the output services and the credit taken on the goods procured such as steel, racks, bolts etc. which are excisable and were cleared under Central Excise invoices showing payment of Central Excise duty. The payment of Central Excise duty on these goods and their assessment has not been questioned at the end of the supplier. Without use of these duty paid towers/parts as inputs, the Business Support Service in the firm of Passive Telecom Infrastructure could not have been provided. The appellant availed credit under Rule 3(1)(i) which allows Cenvat credit on any inputs or capital goods received by the provider of output service. The appellant received inputs such as structural steel for providing 'Passive Telecom Infrastructure'. Merely because the tower parts etc. are assembled together, it would be totally unreasonable to suggest that Cenvat Credit on them is not admissible despite Rule 2(k)(ii). This Rule has to be interpreted as it stands. Reliance is placed on the High Court of HP judgment in the case of Gujarat Ambuja Cement [2008 (6) TMI 213 - HIGH COURT OF HIMACHAL PRADESH AT SHIMLA] and the Tribunal decision in the case of Commissioner of Central Excise Raigad vs. JSW Ispat Steel Ltd. [2013 (11) TMI 1389 - CESTAT MUMBAI] in which it was held that excise duty paid on parts of components would be admissible even if they are assembled into goods which are immovable or exempted. - appellant is entitled to Cenvat Credit. In turn, the question of penalties does not arise.- Impugned order is set aside - Decided in favour of assessee.
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