Supreme Court allows telcos to set off levies with Cenvat credit on excise duties paid on mobile towers

The Supreme Court on Wednesday ruled mobile services providers (MSPs) are entitled to claim Cenvat (central value added tax) credit on excise duties paid on mobile towers, its parts thereof and prefabricated buildings (PFBs) in terms of Rule 3 of the Cenvat Rules, 2004.

The credit so claimed can be used to pay service tax for the output services rendered by MSPs.