{"id":8104,"date":"2026-02-23T17:15:01","date_gmt":"2026-02-23T11:45:01","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8104"},"modified":"2026-02-23T17:15:01","modified_gmt":"2026-02-23T11:45:01","slug":"cestat-allows-cenvat-credit-on-capital-goods-used-in-dutiable-period","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/cestat-allows-cenvat-credit-on-capital-goods-used-in-dutiable-period","title":{"rendered":"CESTAT Allows CENVAT Credit on Capital Goods Used in Dutiable Period"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000416402\/cenvat-credit-granted-on-capital-goods-procured-in-final-product-exemption-period-but-first-used-in-dutiable-period-cestat\">Commissioner of GST and Central Excise, Bhubaneswar vs. Hindustan Coca Cola Beverage Pvt. Ltd. (2026) 39 Centax 227 (Tri.-Cal)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri R. Muralidhar<\/strong>, Member (J) &amp; <strong>K. Anpazhakan<\/strong>, Member (T)<\/li>\n<li>S<strong>\/Shri Argho Mukherjee<\/strong> &amp; <strong>Prasenjit Das<\/strong>, Authorized Representatives, for the Appellant.<\/li>\n<li><strong>Shri Arnab Chakraborty<\/strong>, Adv., for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>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.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>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.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2003%20(155)%20E.L.T.%20481%20(Tri.-Del)&amp;itemType=AP\">Commissioner v. Surya Roshni Ltd.<\/a> \u2014 2003 (155) E.L.T. 481 (Tri.-Del) \u2014 Referred [Para 4]<\/li>\n<li>Principal Commissioner v. Hindustan Coca Cola Beverages Pvt. Ltd. \u2014 2025 (4) TMI 6 \u2013 Gujarat High Court \u2014 Relied on [Paras 5, 7.1, 8]<\/li>\n<li>Hindustan Coca Cola Beverages Pvt. Ltd. v. Commissioner \u2014 Final Order No. 11362 of 2024 dated 05.06.2024 by CESTAT, Ahmedabad \u2014 Followed [Paras 5, 7]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Commissioner of GST and Central Excise, Bhubaneswar vs. Hindustan Coca&hellip;<\/p>\n","protected":false},"author":19,"featured_media":8113,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-8104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CESTAT Allows CENVAT Credit on Capital Goods Used in Dutiable Period<\/title>\n<meta name=\"description\" content=\"CESTAT allows CENVAT credit on capital goods first used 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