Revenue & capital goods

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Jyoti (Querist)

11 August 2016 Hello, I want to know that how can i classify revenue goods or Capital goods? & Rules for taking cenvat credit on excise paid on capital as well as revenue goods.

Rajannaidu

Rajannaidu (Expert)

17 September 2016 Revenue good means inputs which are required for making product.
Capital goods defined under Cenvat credit rules 2004. : 2(a) "capital goods" means:-
(A) the following goods, namely:-
(i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.05 grinding wheels and the like, and parts thereof falling under heading 6804 of the First Schedule to the Excise Tariff Act;
(ii) pollution control equipment;
(iii) components, spares and accessories of the goods specified at (i) and (ii);
(iv) moulds and dies, jigs and fixtures;
(v) refractories and refractory materials;
(vi) tubes and pipes and fittings thereof; and
(vii) storage tank, used-
(1) in the factory of the manufacturer of the final products, but does not include any equipment or
appliance used in an office; or
(2) for providing output service;
(B) motor vehicle registered in the name of provider of output service for providing taxable service as specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause (105) of section 65 of the Finance Act;

Jyoti

Jyoti (Querist)

21 September 2016 Thank u sir, for the classification of revenue & capital goods. Sir I want to know the rules for taking cenvat credit on revenue & capital goods. Please explain me .

Rajannaidu

Rajannaidu (Expert)

21 September 2016 Please refer Rule 3 of Cenvat credit 2004

Rajannaidu

Rajannaidu (Expert)

21 September 2016 Conditions for allowing CENVAT credit.-refer Rule 4 of Cenvat credit 2004

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