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2018 (8) TMI 104 - CESTAT NEW DELHICENVAT Credit - office equipments, tables, chairs, split air conditioners, power plant battery, HDPE cables, equipments, miscellaneous window cooled sets, air conditioner EA sets, W/C diesel EA - remaining 50% credit on capital goods - Held that:- The Cenvat Credits can be availed on the capital goods as per Rule 2(a)(A) and (B) of Cenvat Credit Rules, 2004 - On perusal of definition of capital goods, it is found that anything which does not fall under any of the Chapter as mentioned in Clause (i) above will not be a capital good unless it is a component spare or accessory for anything in said Clause (i). For all or any of these to be accessory we need to know the relevance of their use, for the provider of Telecom Services, the output service is Telephone & Cellular Network. Thus, any article/ thing /object which is used for transmission & reception of said network can be called as component/ spare/ accessory of the goods in Clause (i) as mentioned above, upon which the Cenvat Credit can be availed. Most of the articles of Annexure A are equipments or appliances to be used in the office of the appellant or any office, hence cannot be categorized as such component/ spare/ accessory of the goods which are rendering output service herein, and hence, are not the goods on which the Credit can be availed - OFC, HDPE, batteries and ACs for server rooms are the inputs used in providing output service. Hence, the appellant are entitled to claim Cenvat Credit on these items only. Appeal dismissed - decided against appellant.
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