Mobile Tower, PFBs are “Goods”, Not immovable Property making them Valid Inputs: Supreme Court allows

The Supreme Court has ruled that mobile tower parts and fittings (PFBs) are goods and not immovable property, making them valid inputs for claiming CENVAT credit. The case involved a dispute over the eligibility of CENVAT credit for PFBs used in the installation of mobile towers. The appellant argued that PFBs should be considered as goods and eligible for CENVAT credit, while the revenue department contended that they were immovable property. The Supreme Court held that PFBs are movable goods and can be classified as inputs under the CENVAT Credit Rules, 2004. This ruling provides clarity on the eligibility of CENVAT credit for PFBs and is expected to benefit telecom companies and other businesses involved in the installation of mobile towers. The decision reinforces the principles of CENVAT credit and ensures that businesses can claim credit for eligible inputs.