“Capital goods” as per Rule 2(a) of CENVAT Credit Rules 2004, means:
“A. The following goods –
All goods falling under chapters 82, 84, 85, 90, heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 of the First Schedule to Central Excise Tariff Act Pollution control equipment Components, spares and accessories of the goods specified at clauses (1) and (2) above Moulds and dies, jigs and fixtures Refractories and refractory materials Tubes and pipes and fittings thereof; and Storage tank and Motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis), but including dumpers and tippers, used- in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or (1A) Outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory; or (2) for providing output service, B. Motor Vehicles designed for transportation of goods including their chassis, registered July, 2012, if used for: Providing an output service of renting of such motor vehicle or Transportation of inputs and capital goods used for providing an output service or Providing an output service of courier agency C. Motor Vehicles designed to carry passengers including their chassis, registered in the name of the service provider , is considered as capital goods w.e.f. 1st July, 2012 if used for providing an output service of transportation of passengers, renting of such motor vehicle, imparting motor driving skills
D. Definition of “capital goods” has been amended whereby credit of duty paid on components, spares & accessories of motor vehicles which are capital goods for the assessee is available as CENVAT Credit. Hitherto, the CENVAT Credit of duty paid on those goods was available only to specified service providers.” The definition of capital goods has been expanded to cover motor vehicles other than the following by inserting a new item no. (viii) under Rule 2(a)(A):
Motor vehicles for the transport of ten or more persons including the driver as specified under tariff heading 8702; Motor cars and other motor vehicles principally designed for the transport of persons(other than those of tariff item 8702) including station wagons and racing cars other than those as specified under tariff heading 8703; Motor vehicles for the transport of goods as specified under tariff heading 8704. It includes three-wheeled motor vehicle, dumper, lorry, truck etc. Motorcycles (including mopeds) and cycles fitted with an auxiliary motor with or without side cars as specified under tariff heading 8711; The credit of service tax paid on their hiring would be allowed only in relation to motor vehicle which is capital good. The credit for service tax paid on general insurance and repair would be allowed to a manufacturer of motor vehicle in respect of motor vehicle manufactured by such person or an insurance company in respect of motor vehicle insured or reinsured.
The definition of capital goods has been expanded to cover motor vehicles other than the following by inserting a new item no. (viii) under Rule 2(a)(A):
Motor vehicles for the transport of ten or more persons including the driver as specified under tariff heading 8702; Motor cars and other motor vehicles principally designed for the transport of persons(other than those of tariff item 8702) including station wagons and racing cars other than those as specified under tariff heading 8703; Motor vehicles for the transport of goods as specified under tariff heading 8704. It includes three-wheeled motor vehicle, dumper, lorry, truck etc. Motorcycles (including mopeds) and cycles fitted with an auxiliary motor with or without side cars as specified under tariff heading 8711; The credit of service tax paid on their hiring would be allowed only in relation to motor vehicle which is capital good. The credit for service tax paid on general insurance and repair would be allowed to a manufacturer of motor vehicle in respect of motor vehicle manufactured by such person or an insurance company in respect of motor vehicle insured or reinsured.
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