Iron & Steel stands used in the Manufacture of Trolleys are Capital Goods, eligible for CENVAT Credit: CESTAT Delhi [Read Order]

The Delhi bench of the CESTAT, in a recent decision, held that the Iron & Steel stands used in the manufacture of trolleys can be treated as capital goods and therefore, the appellants are eligible for CENVAT Credit on such goods under the Excise Law.

In the instant case, the appellant-assesseeis aggrieved by the order of the assessing authority and the first appellate authority that trolleys are not capital goods and therefore of Cenvat Credit of duty paid on various iron and steel items, used for manufacture of trolleys is not allowable to the appellants.

While allowing the appeal, the Judicial Member said that “In as much as such angles, plates etc. stand used in the manufacture of trolleys which are nothing but capital goods, I am of the view that the appellant is entitled to the benefit of Cenvat Credit duty paid on the same.”

Accordingly, the Tribunal set aside the impugned orders.

Read the full text of the order below.