The Supreme Court has on 20 November 2024 held that the telecom companies are entitled to avail Cenvat credit of the central excise duty paid on towers and shelters/Pre-fabricated buildings (PFBs) procured by them and installed/erected for providing output services of telecommunication services. One of the assessee was represented by Lakshmikumaran & Sridharan Attorneys here.

The provisions relating to reopening of assessments, as they stood prior to the Finance Act, 2021, were contained in Sections 147 to 151 of the Act[1] (‘Old Law’). Under the Old Law, if the AO[2] had reasons to believe that an income chargeable to tax has escaped assessment, then the AO could reopen the assessment by issuing a notice u/s. 148 of the Act. Such notice could have been issued within 4 / 6 years from end of relevant assessment year.

The Supreme Court has held that if the building in which the premises are situated qualifies for a ‘plant’, Input Tax Credit (ITC) can be allowed on goods and services used in setting up the immovable property, which is a plant.