Capital Goods

CENVAT Credit on Capital Goods Supplied Under a Works Contract Is Not Barred by the Contractor's Valuation Under Rule 2A: CESTAT Chennai in Toshiba JSW Power Systems

A Chennai Bench of the Tribunal accepted that the supply and erection orders were one works contract, yet allowed the recipient's credit, setting aside a notice demand of Rs.1,93,97,137. The credit bar in the Explanation to Rule 3 of the CENVAT Credit Rules, 2004 does not follow the goods into the recipient's hands, and the extended period was held unavailable.