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2023 (2) TMI 989 - AT - Service TaxCENVAT Credit - inputs/input services/capital goods - towers, shelter and parts thereof - demand confirmed on the ground that the subject goods were used for fabrication/erection of towers and shelters, which being attached to earth, were immovable in nature and thus, not used for providing output services in terms of the Circular dated 26.02.2008 - extended period of limitation. Whether towers are movable property or immovable property? - HELD THAT:- This issue was examined at length by a Division Bench of the Tribunal in M/S. RELIANCE JIO INFOCOMM LTD. VERSUS ASSISTANT COMMISSIONER, CGST & CENTRAL EXCISE, BELAPUR-IV DIVISION [2022 (4) TMI 1361 - CESTAT MUMBAI] and it was held that towers and shelters would not be immovable property. The Delhi High Court in VODAFONE MOBILE SERVICES LIMITED, INDUS TOWERS LIMITED, TOWER VISION INDIA PRIVATE LIMITED, BHARTI INFRATEL LIMITED, VERSUS COMMISSIONER OF SERVICE TAX, DELHI [2018 (11) TMI 713 - DELHI HIGH COURT] had also examined this issue and held that the Tribunal clearly erred in concluding that the towers and parts thereof and the prefabricated shelters are not capital goods with the meaning of Rule 2(a) of the Credit Rules. The appellant was also entitled to take CENVAT credit since the items in dispute are ‘capital goods’. The order dated 30.09.2016 in so far as it confirms the demand for the normal period of limitation is, accordingly, set aside - as the demand has been set aside on merits, the issue of extended period of limitation also dismissed. Appeal allowed.
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