CENVAT Credit—Applicant seeking an advance ruling on the question whether Cenvat credit of goods and services used for erection of infrastructure to which fibre cables are connected for leasing to Telecommunication Operators, is available to them.
Held that :- In view of the above discussion we observe that the infrastructure provided by the applicant is different from “Telecommunication Tower” in as much as
(i) the in infrastructure provided by the applicant does not contain in a. pre-fabricated shelter made of insulating PUF material made of fibres; b. electronic Panel; c. Base Transceiver Station (BTS) and other radio transmission and reception equipment ; d. diesel generator set;
(ii) the infrastructure is not a immovable property as it can be easily be moved to another place for use without any damage to the entire infrastructure. Therefore the infrastructure provided by the applicant is to be construed as “movable property”.
(iii) height of pole is 7m to 9m whereas height of telecommunication tower is 70m to 90m.
(iv) the infrastructure being a movable property can be classified as 'goods' in terms of section 2(52) of CGST/SGST Act, 2017.
Thus, we hold that the infrastructure provided by the applicant is different from “Telecommunication Tower” and accordingly applicant can avail ITC on GST paid on the goods (supra) & services in terms of section 16(1) of CGST/SGST Act, 2017, consumed while providing the supply in question [2018] 3 TAXLOK.COM 095 (AAR-Uttarakhand).