Appellate Tribunal allows CENVAT Credit on capital goods, including MS Angles, Beams, Plates, Channels The Appellate Tribunal CESTAT MUMBAI allowed both appeals in favor of the appellant, permitting them to avail CENVAT Credit on capital goods such as MS ...
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Appellate Tribunal allows CENVAT Credit on capital goods, including MS Angles, Beams, Plates, Channels
The Appellate Tribunal CESTAT MUMBAI allowed both appeals in favor of the appellant, permitting them to avail CENVAT Credit on capital goods such as MS Angles, Beams, Plates, Channels, etc. The Tribunal considered the goods as capital goods based on the Revenue's treatment and the High Court of Gujarat's decision, which held the previous conflicting decision as not good law.
Issues: Admissibility of CENVAT Credit on capital goods - Interpretation of Larger Bench decision in Vandana Global Ltd. case
In this case, the Appellate Tribunal CESTAT MUMBAI considered two appeals together where the issue involved was the admissibility of CENVAT Credit on capital goods such as MS Angles, Beams, Plates, Channels, etc. The Revenue initially contended that the CENVAT Credit on these goods was not admissible to the appellant, leading to proceedings being initiated against them. The Order-in-Original initially dropped the demand, but for another period, the demand was confirmed. The Commissioner (Appeals) decided against the appellant, prompting an appeal to the Tribunal. The Tribunal, in a previous order, remanded the matter to the Commissioner (Appeals) due to the overruling of the Larger Bench decision in the case of Vandana Global Ltd. by the High Courts of Gujarat and Kolkata. The impugned order was the Commissioner (Appeals) decision after the remand.
The appellant's counsel argued that despite the Tribunal's indication of the overruling of the Vandana Global Ltd. decision, the Commissioner (Appeals) once again rejected the CENVAT Credit on the mentioned items. On the other hand, the Authorized Representative contended that the goods in question were not capital goods, making the appellant ineligible for CENVAT Credit. The Tribunal carefully reviewed the case records and submissions from both sides. The show-cause notice indicated that the goods were treated as capital goods by the Revenue. Citing the High Court of Gujarat's decision in the Mundra Port case, which held the Vandana Global decision as not good law, the Tribunal allowed the appellant to avail CENVAT Credit for the mentioned goods in the ongoing proceedings.
Ultimately, the Tribunal allowed both appeals in favor of the appellant, permitting them to avail CENVAT Credit on the disputed goods.
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