CEGAT Upholds Modvat Credit for Pollution Control Equipment

The Appellate Tribunal CEGAT, New Delhi dismissed the Revenue's appeal on Modvat credit for pollution control equipment, following precedents that deemed such equipment eligible as capital goods integral to the manufacturing process. The Tribunal upheld that the equipment's role in pollution control was inseparable from manufacturing activities, aligning with Supreme Court rulings.

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The Appellate Tribunal CEGAT, New Delhi ruled in a Revenue appeal regarding Modvat credit on pollution control equipment. The appeal was dismissed based on the judgments in Indian Farmers Fertilizers Co-op. Ltd. v. CCE and Century Cement v. CCE. The Tribunal held that pollution control equipment is integral to the manufacturing process and eligible for Modvat credit as capital goods. The appeal was rejected as the pollution control equipment was considered part of the manufacturing process by the Supreme Court.

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