Case Law Details
Ratnamani Metal And Tubes Limited Vs Commissioner of Customs (CESTAT Ahmedabad)
We find that there is no dispute to the use of the subject second hand office furniture/equipment in relation to the manufacturing of goods and hence the subject goods are part of complete stainless steel tube manufacturing plant. The authorities below have nevertheless taken a view that the said goods are not required for manufacture or production of goods and therefore not capital goods in terms of para. 09.08 of Foreign Trade Policy 2015-2020. The said view of the authorities below is bereft of any rational. If the said goods are part of the complete plant and its use in relation to the manufacturing of goods is not disputed, they are indeed required directly or indirectly in manufacturing of goods.
Since the said goods formed part of the complete plant and since there is no dispute as to use of the said goods for manufacture or production of stainless steel tubes; it follows that such goods are definitely required directly or indirectly for or in relation to manufacture or production of goods.
In this regard, it would be useful to refer to the definition of capital goods as provided in para. 9.08 of Foreign Trade Policy which is reproduced as under:
“Capital Goods” means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological up‑gradation or expansion. It includes packaging machinery and equipment, refrigeration equipment, power generating sets, machine tools, equipment and instruments for testing, research and development, quality and pollution control.
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