No Disallowance of CENVAT Credit for Claim as “Capital Goods” instead of “Input”: CESTAT

In a decision by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), it was ruled that CENVAT credit cannot be disallowed simply because the claimant classified capital goods as inputs in their tax filings. The tribunal noted that the distinction between inputs and capital goods can be nuanced and does not warrant disallowance when the goods are otherwise eligible for credit. The ruling clarifies that as long as the goods qualify for CENVAT credit under the applicable rules, the specific classification as input or capital goods should not lead to penal consequences for businesses.