Credit of Capt Goods other than CH Head 82,83,84,90

Credit on Capital goods, which are not defined as capital goods in Cenvat Credit Rules, is available as input. In CCE v. Telco [2003 (158) ELT 130 (SC)], supreme court held that trucks, lifting tackles, trolleys, conveyors, measuring instruments etc. are inputs and eligible for credit as inputs. Same view in Union carbide by larger bench of tribunal [1996 (86) ELT 613]. The legal postition is settled.

Thus, when the thing is covered under the definition of capital goods, take credit as capital goods (50% in the current financial year, and 50% in next.). If the thing is not covered in the definition of capital goods, take full credit as input. The accounting definition of capital goods and input are irrelevant for the purpose.