Cenvat Credit Approved for Spare Parts as Capital Goods; Refund Granted Under CGST Act, Previous Rejection Overturned.

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....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.........