Amendment to CENVAT Credit Rules is Retrospective: Support Structures Classified as Capital Goods

The High Court of Chhattisgarh held that the amendment to Explanation 2 to Rule 2(k) of the CENVAT Credit Rules, 2004 is retrospective. It was also determined that support structures of production machineries can be classified as 'capital goods' for CENVAT Credit but not as 'input' for the same purpose.

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The High Court of Chhattisgarh considered the following questions in a judgment:
1. Whether an amendment to Explanation 2 to Rule 2(k) of the CENVAT Credit Rules, 2004 is retrospective in operation.
2. Whether support structures of production machineries can be considered as 'capital goods' for CENVAT Credit.
3. Whether supporting structures of production machineries can be considered as 'input' for CENVAT Credit.

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