Capital Goods

[Karuppasamy AM]

Dear Sir,

How can i classified the Materials between Raw Materials & Capital Goods.

Karuppasamy

9894193415

AI Summary

Clarifying Raw Materials vs. Capital Goods for CENVAT Credit under CENVAT Credit Rules, 2004: Key Definitions and Roles A user inquired about distinguishing between raw materials and capital goods under Central Excise. Respondents referenced the CENVAT Credit Rules, 2004, which define capital goods and inputs. They advised consulting various laws like VAT, CST, and Income Tax for comprehensive understanding. Capital goods are typically machinery or equipment aiding production, while raw materials are transformed into finished products. The discussion emphasized the distinct roles: capital goods facilitate production, whereas raw materials become part of the final product. The forum highlighted these definitions' importance for availing CENVAT credit under relevant laws.