Page 217 - GSTL_2nd April 2020_Vol 35_Part 1

2020 ] BHARAT SANCHAR NIGAM LTD. v. COMMISSIONER OF C. EX. & S.T., LUCKNOW 119
clause ‘A’ of the definition of term ‘Input Service’ appearing in Rule 2(l) of the
Cenvat Credit Rules reads as under :-
“(A) service portion in the execution of a works contract and construction
services including service listed under clause (b) of section 66E of the Fi-
nance Act (hereinafter referred as specified services) insofar as they are
used for -
(a) construction or execution of works contract of a building or a
civil structure or a part thereof; or
(b) laying of foundation or making of structures for support of
capital goods, except for the provision of one or more of the
specified services;”
Both, the original adjudicating authority as well as the first appellate authority
have relied on this exclusion clause for denying the credit on the services used by
the appellant. It is not disputed that the services received by the appellant is clas-
sified as “Erection, Commissioning and Installation service”. I find that above
exclusion clause ‘A’ in Rule 2(l) of the Cenvat Credit Rules, does not cover the
service in the nature of “Erection, Commissioning and Installation service”.
5. In these circumstances, I find no merit in the impugned order and
the same is set aside and the appeal is allowed.
(Order dictated and pronounced in the open Court)

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2020 (35) G.S.T.L. 119 (Tri. - All.)
IN THE CESTAT, REGIONAL BENCH, ALLAHABAD
[COURT NO. I]
Ms. Archana Wadhwa, Member (J) and Shri Anil G. Shakkarwar,
Member (T)
BHARAT SANCHAR NIGAM LTD.
Versus
COMMISSIONER OF C. EX. & S.T., LUCKNOW
Final Order No. ST/A/70211/2019-CU(DB), dated 30-1-2019 in Appeal
No. ST/50516/2015-CU(DB)
Cenvat credit - Telecom Services - Interconnection usage charges - Said
charges are provided by different telecom service providers to each other and
as per TRAI guidelines, each telecom operator has to create one single office to
take care of billing - Appellant BSNL has created Inter-Operator Billing & Ac-
counting System (IOABAS) in one office to take care of billing for its 43
branch offices engaged in providing inter-company services - Since said
IOABAS is part and parcel of BSNL, denial of credit on ground that said
IOABAS is not providing any services, not sustainable more so when from
same office, Revenue has accepted payment of Service Tax - Impugned order
not sustainable - Rule 3 of Cenvat Credit Rules, 2004.
Appeal allowed
GST LAW TIMES  2nd April 2020  281