Jio allowed ₹253 crore CENVAT credit by CESTAT

The Mumbai bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) allowed Reliance Jio central value added tax (CENVAT) credit worth ₹253 crore.

It has held that 4G mobile towers are movable in nature and eligible for CENVAT credit.

Jio had availed CENVAT credit of ₹253 crore during the period March 2014 to June 2017; ₹244 crore credit was availed as ‘inputs’ and credit of ₹9.49 crore was claimed towards capital goods.

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.

CT Bureau