Excise on capital goods

What is the basis of classifying excise on goods as Excise on capital goods ?

Is it the tarrif heading of goods or is it depends on the the use of goods ?

Replies (3)

Please refer Rule 2 (a) of Cenvat Credit Rules, 2004  for definition of capital Goods. According to the definiton, the following are the capital goods,

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;

 
So Capital goods are defined and specified under the Rules. The above mentioned goods are only Capital goods and not all.
 

if we transfer raw material to our unit (stock tranfer) then what is the rate charge (invoice calculation). Please reply

 

 

For Interunit transfer, you have to transfer with central excise duty. The duty is same as originally purchased.  For example you purchase material at Rs. 1000 and duty charged as Rs. 103. If you transfer to other unit, you should charge duty same as Rs. 103 eventhough with different value.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details