CESTAT allows BSNL to avail Cenvat Credit of Service Tax paid by Private Operators on Interconnectivity Usage Charges

The CESTAT has allowed BSNL to claim CENVAT credit for service tax paid by private operators on interconnectivity usage charges. The case concerned BSNL’s request to avail CENVAT credit for service tax paid on services received from private telecom operators for interconnection. The tribunal ruled in favor of BSNL, stating that such charges should be eligible for credit under the CENVAT scheme. This decision is significant for the telecom sector, as it provides clarity on the applicability of CENVAT credit rules in interconnection arrangements and supports BSNL’s right to claim credit on services essential for their operations.