Indentification of Item(Capital/Input)

[Mridul Sethi]

How to verify the item as it is Capital or Input item(on the basis of Chapter Head or on the basis of its usage)........Mridul

AI Summary

Clarification Sought on Differentiating Capital and Input Items for Central Excise per CENVAT Credit Rules, 2004 A user inquired about distinguishing between capital and input items for Central Excise purposes, questioning whether this should be based on the chapter heading or usage. The response advised consulting the definitions of inputs and capital goods as outlined in the CENVAT Credit Rules, 2004, and suggested reviewing the bill of materials to identify inputs, raw materials, and components.