In Brief
This case resolves a significant dispute on whether mobile service providers can claim CENVAT credit on excise duties paid for mobile towers and prefabricated buildings (PFBs). The Supreme Court held that such providers are entitled to claim this credit. The Court found that towers and PFBs are movable property (not immovable) since they can be dismantled and relocated without damage. Although not directly listed in the CENVAT Rules, these items qualify as capital goods and inputs because they are essential accessories of antennas and BTS equipment (which are capital goods) used for providing mobile services. The Court rejected the Revenue's narrow interpretation, emphasizing that credit eligibility is assessed when goods are received, not after they become affixed to structures. The judgment overrules conflicting Bombay High Court decisions and affirms the Delhi High Court's broader approach.
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