In a major development for the telecom industry, the Supreme Court today ruled in favor of telecom companies, affirming their entitlement to claim credit for duties paid on parts such as tower components and green shelters.
This decision overturns a previous judgment by the Bombay High Court, which had classified these items as non-capital goods, thereby denying the companies cenvat credit for the duties paid.
The ruling is expected to significantly benefit key players in the sector, including Bharti Airtel, Vodafone, Tata Teleservices, Reliance Communications, and Indus Towers, by allowing them to claim tax credits previously considered ineligible.
The decision is seen as a notable victory for telecom operators, easing the financial burden related to infrastructure expenses.
