Relief for Hindustan Zinc Ltd: CESTAT Rules Structural Steel Used for Chimney Support Qualifies as Capital Goods, Eligible for Credit

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed Hindustan Zinc Limited to claim CENVAT credit on the structural steel that was utilized in the construction and support of a chimney within its industrial infrastructure. The tribunal classified the structural steel as capital goods, thereby broadening the eligibility criteria for claiming CENVAT credit on inputs used in the development of essential industrial infrastructure. This decision is likely to benefit other manufacturing companies by clarifying that structural components integral to the functioning of capital assets can qualify for input tax credits under the excise and service tax regime.