Technoglitch
Core Member
Vodafone India on Monday moved the Supreme Court seeking stay on a demand of Rs 92 crore, including penalties, slapped on it by the excise department. The demand is on the premise that the firm can’t claim credit for the tax content on some of its telecom infrastructure in meeting the tax liability on output (telecom) service.
A bench headed by Chief Justice HL Dattu issued notice to the central excise department after Vodafone challenged the Bombay High Court’s ruling that held that the company was not entitled to credit of input duties paid on tower parts/shelter on the ground that tower/shelter is an ‘immovable property’.
In the CENVAT chain, input tax credit is available, which means duties/taxes paid on inputs can be offset against output tax liability.
The company said that to classify the goods as immovable properties, attachment there of to the land has to be for the permanent beneficial enjoyment of the land and should not have a separate existence devoid of the land. Besides, the goods could never be termed as immovable property as there was no generic difference between ‘capital goods’ and other ‘goods’ other than their treatment in relation to their use in manufacture, it added.
Vodafone moves SC for stay on Rs 92-crore tax demand | The Financial Express
A bench headed by Chief Justice HL Dattu issued notice to the central excise department after Vodafone challenged the Bombay High Court’s ruling that held that the company was not entitled to credit of input duties paid on tower parts/shelter on the ground that tower/shelter is an ‘immovable property’.
In the CENVAT chain, input tax credit is available, which means duties/taxes paid on inputs can be offset against output tax liability.
The company said that to classify the goods as immovable properties, attachment there of to the land has to be for the permanent beneficial enjoyment of the land and should not have a separate existence devoid of the land. Besides, the goods could never be termed as immovable property as there was no generic difference between ‘capital goods’ and other ‘goods’ other than their treatment in relation to their use in manufacture, it added.
Vodafone moves SC for stay on Rs 92-crore tax demand | The Financial Express
