Tribunal allows credit for iron & steel products used in machinery, despite lack of disclosure

The Tribunal overturned the denial of credit on certain iron and steel products, ruling that they were used as components in machinery, making them eligible for credit. The appellant's appeal was allowed with consequential relief, based on the finding that the items qualified for credit despite the lack of specific disclosure on their use or place of utilization.

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Issues involved: Denial of credit on Shape and Section and M.S. Angle & Joist of Iron and Steel due to lack of disclosure on exact use or place where the products were used.

Summary:
The appellant appealed against the denial of credit on certain iron and steel products. The authorities below noted the lack of disclosure regarding the exact use or place where these items were utilized, with the appellant only stating they were used in repair and maintenance activities. The appellant cited a High Court case to support eligibility for credit on parts of capital goods used in fabrication, erection, or installation. The revenue, however, argued that these items cannot be considered components. The Tribunal referred to previous court decisions and found that the items were used as components in machinery, making them eligible for credit. The denial of credit was overturned, and the appeal was allowed with consequential relief.

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