CESTAT allows CENVAT Credit on materials used in capital goods

Rexon Strips Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Kolkata) In the case of Rexon Strips Ltd. vs. Commissioner of CGST & Central Excise, the CESTAT Kolkata ruled on the eligibility of CENVAT Credit for inputs used in capital goods. The appellant, engaged in manufacturing sponge iron, had claimed CENVAT Credit of ₹7.49 crore on materials like MS angles, channels, joists, and plates used for fabricating capital goods such as conveyor systems, furnaces, and storage hoppers. The Adjudicating Authority, citing the Vandana Global Ltd. decision, denied the credit, arguing tha...