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Analysis of input definition

Bommana Vamsidhara Reddy (Article Assisstant) (73 Points)

07 July 2015

Hi all,

Items falling under Chapter 84 & 82 of Central Excie tariff act,1985 are raw material (INPUTS) for our client. In this case whether we have to consider these items as Capital Goods or Inputs. Please give me your opinion.

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4 Replies

Vineeth PN (Account Assistant) (687 Points)
Replied 10 July 2015

all raw material is come under input.In case of Cnevat credit if you purchase 84 chapter it will come under capital

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Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 10 July 2015

You will considered as inputs/raw material not a capital goods.

Bommana Vamsidhara Reddy (Article Assisstant) (73 Points)
Replied 10 July 2015

Dear Sir,

Please give me the supporting for the same.

Vineeth PN (Account Assistant) (687 Points)
Replied 10 July 2015

Cenvat credit rules 2004

(k) "input" means-

(i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production;

(ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service;

Explanation 1.- The light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever.

Explanation 2.- Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer;