In a relief to Reliance Jio, the Mumbai bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that 4G mobile towers are movable in nature and eligible for central value added tax (CENVAT) credit.
It allowed the telecom major CENVAT credit worth ₹253 crore.
The tax department objected to the claim saying that goods on which CENVAT credit had been taken by the appellant did not qualify either as 'capital goods' or 'inputs' under the 2004 Rules.
"...telecom towers in the present case are not immoveable property, and since immovability of such towers was the only ground for rejection of the refund claim, it has to be held that all such items on which CENVAT credit was taken as 'inputs' are eligible for credit as inputs," the CESTAT order said.
Reliance Jio had availed CENVAT credit of ₹253 crore during the period March 2014 to June 2017. Of this, ₹244 crore credit was availed as 'inputs' and credit of ₹9.49 crore was claimed towards capital goods.
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