CESTAT rules loud-speakers not eligible for Modvat credit as capital goods

The Appellate Tribunal CESTAT, Mumbai rejected the appeal concerning Modvat credit for loud-speakers used in a factory, ruling that the loud-speakers are not eligible as capital goods for issuing instructions as they do not play a role in the production or processing of goods.

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The Appellate Tribunal CESTAT, Mumbai heard a case regarding Modvat credit for loud-speakers used in a factory. The consultant argued they are eligible as capital goods for issuing instructions, but the tribunal rejected the appeal, agreeing with the respondent that the loud-speakers do not play a role in production or processing of goods.

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