Order Date – 05 January 2023

Parties: IDMC LTD Vs C.C.E. & S.T.-VADODARA-I

Facts –

• The Appellant, IDMC LTD, has been filed an appeal against denial of capital goods Cenvat Credit on steel rack used for storage in the premises of the appellant’s factory.

Issue – 

• Whether the appellant is eligible for Cenvat Credit on steel rack?

Order – 

• The Tribunal relied on the decision of of Sanghi Industries Ltd (Cestat) wherein it was held that “as per Circular No. 943/4/2011-CX., dated 29-4-2011 ‘goods such as furniture and stationery used in an office within the factory are goods used in the factory and are used in relation to the manufacturing business and hence the credit of same is allowed’.
• It was also held that “According to the definition of ‘input’ as it existed during the relevant period, inputs used in the factory ‘for any other purpose’ the credit is admissible. In this case there is no denial of the fact that furniture had been used within the factory. Under the circumstances, I have to hold that appellant is eligible for the benefit of Cenvat credit 
• Hence relying on the above decision the appeal is allowed.