Cenvat credit claims on spare parts considered as capital goods...

Cenvat credit claims on spare parts considered as capital goods were rejected u/ss 11B and 12B of the Cenvat Excise Act. As per the definition of "Inputs" in Rule 2(k) of Cenvat Credit Rules, capital goods up to Rs.10,000/- are included, but not excluded from the definition of "Capital Goods". Spare parts of capital goods are covered under capital goods. The assessee has the option to claim Cenvat credit on such spare parts as capital goods or inputs. When two benefits are available, the more beneficial provision should be extended, as per the Supreme Court's judgment in SHARE MEDICAL CARE VS UNION OF INDIA. In the present case, the appellant claimed Cenvat credit on spare parts under capital goods, which is valid. The appellant is entitled to Notification No. 30/2004-CE and Cenvat credit on spare parts as capital goods. The appellant is also entitled to cash refund u/s 142(3) of CGST Act read with Section 11B. The impugned order is set aside, and the appeal is allowed.