CESTAT allows Cenvat Credit on Capital Goods Used for Both Dutiable and Exempted Products

The CESTAT has allowed CENVAT credit on capital goods used for both dutiable and exempted products. The tribunal held that CENVAT credit is admissible even if the capital goods are used for both types of products, subject to certain conditions. This decision clarifies the eligibility criteria for CENVAT credit and provides relief to manufacturers. It ensures that businesses can avail themselves of CENVAT credit for capital goods used in their manufacturing processes.