Cenvat credit on factory air-conditioner and furniture allowed under the wider input definition for the relevant period

Cenvat credit was available on an air-conditioner and furniture used within the factory for the relevant period, because the then-prevailing definition of input covered goods used in the factory for any purpose. The air-conditioner was installed in the control panel room to maintain temperature, and the furniture was used within the factory; both uses fell within the credit framework. A Board circular also supported admissibility of credit on furniture used in an office within the factory. The later amendment restricting credit on certain activities did not apply to the period in dispute.

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Issues: Whether Cenvat credit was admissible on air-conditioner and furniture used within the factory.

Analysis: The air-conditioner was installed in the factory and used in the control panel room to maintain temperature. The furniture was also used within the factory. For the relevant period, the definition of input covered goods used in the factory for any purpose, and the Board circular supported admissibility of credit on furniture used in an office within the factory. The subsequent amendment restricting credit on certain activities did not govern the period in dispute.

Conclusion: The appellant was eligible for Cenvat credit on both air-conditioner and furniture.

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