Capital Input

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CMA Abhay Kumar Sinha (Querist)

30 May 2011 Dear Experts,

We are Coal Mining Co. and w.e.f 01.03.2011 we comes under the purview of Central Excise. Our Duty Deposit is more than One Crore monthly.

Sir, we are using heavy earth moving machinery like Dumper/Tippers, Pay Loaders, Shovels etc. and these Vehicles are exclusively used in mines for the production of Coal. Now my question is that can these Vehicles and the spares purchased for these Vehicles comes under Capital Goods and the Excise paid on the purchase of these Vehicles/Spares can be taken as Capital Input.

So far as I have understood that the Capital Input on Dumpers/Tippers(under Chapter 87 w.e.f 22.06.2010) are only available for output service provider involved in Mining of minerals and we are manufacturer so we cannot use capital input even if we are exclusively using these vehicles for coal production. However, I have not found any information regarding the other vehicles like Pay loader & Shovels. Will these vehicles qualify for Capital Goods?

Moreover, what are the returns which we have to file Monthly & Annually.

Thanks in advance,

Abhay Sinhatt

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

01 June 2011 Which ever item is within chapters mentioned including 84/85 where most of the machinery should be classified.
Capital goods not used exclusively for exempted activity/ production would be eligible.

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