SSI unit entitled to Cenvat credit on inputs for capital goods despite output exemption within ceiling limit

The Appellate Tribunal CESTAT NEW DELHI held that an SSI unit can claim input credit for Cenvat on inputs used for manufacturing capital goods, even if the output is exempt within the ceiling limit. Denial of such credit goes against the law's intent. The Revenue's appeal was rejected.

---

---

The Appellate Tribunal CESTAT NEW DELHI ruled that an SSI unit is entitled to input credit for Cenvat credit on input used for manufacturing capital goods, even if the output enjoys exemption within the ceiling limit. Denial of Cenvat credit defeats the purpose of the law. The Revenue's appeal was dismissed.

---