Case Details: Commissioner of GST and Central Excise, Bhubaneswar vs. Hindustan Coca Cola Beverage Pvt. Ltd. (2026) 39 Centax 227 (Tri.-Cal)
Judiciary and Counsel Details
- S/Shri R. Muralidhar, Member (J) & K. Anpazhakan, Member (T)
- S/Shri Argho Mukherjee & Prasenjit Das, Authorized Representatives, for the Appellant.
- Shri Arnab Chakraborty, Adv., for the Respondent.
Facts of the Case
The assessee was a manufacturer of fruit juice beverages. The capital goods were procured by the assessee between December 2009 and February 2011. During the receipt of capital goods, the excise duty on the product was fully exempt. Later, the assessee took CENVAT Credit for the capital goods. The Revenue sought to recover the CENVAT Credit availed on such capital goods. It contended that no CENVAT Credit could be taken for such capital goods used in the manufacture of exempted finished goods. The matter reached the Kolkata Tribunal.
CESTAT Held
The Tribunal held that the eligibility of credit on capital goods has to be taken as of the date of the start of production. It should be verified whether the finished goods were dutiable or exempted on that date, irrespective of any date of receipt or installation of capital goods. The date of production of the goods has to be taken to determine whether the finished goods were dutiable or exempted as per Rule 6(4) of Cenvat Credit Rules, 2004. In the instant case, the capital goods were not put to use for the manufacture of any exempted goods. It cannot be said that the capital goods were used exclusively for the manufacture of exempted goods. Therefore, the assessee was eligible for CENVAT Credit.
List of Cases Cited
- Commissioner v. Surya Roshni Ltd. — 2003 (155) E.L.T. 481 (Tri.-Del) — Referred [Para 4]
- Principal Commissioner v. Hindustan Coca Cola Beverages Pvt. Ltd. — 2025 (4) TMI 6 – Gujarat High Court — Relied on [Paras 5, 7.1, 8]
- Hindustan Coca Cola Beverages Pvt. Ltd. v. Commissioner — Final Order No. 11362 of 2024 dated 05.06.2024 by CESTAT, Ahmedabad — Followed [Paras 5, 7]
