2017 (4) TMI 1280

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....tal goods' contained under Section 2(f) of the U. P. Value Added Tax Act, 2008. It is contended that 'capital goods' are goods that are moveable in nature, and since silo is a storage tank embedded to earth, as such, it cannot be included within the definition of 'capital goods'. Reliance is also placed upon the definition of 'goods' defined under Section 2(m) of the Act. It is urged on behalf of the assessee that definition of goods under Section 2(m) is not relevant, and what has to be interpreted is the definition of 'capital goods', which constitute an separate and distinct category in itself. It is also submitted that plant, particularly a cement plant, is a huge structure which is embedded in earth, and it would not be proper to give....

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.... purpose of providing facility to the employees; (iv) vehicle used for transporting goods or passengers or both; (v) capital goods used in the execution of a works contract; and (vi). . . . . . ]Omitted" Section 2 (m) defines 'goods' in following words:- 2. . . . . . . . "(m) "goods" means every kind or class of movable property and includes all materials, commodities and articles involved in the execution of a works contract, and growing crops, grass, trees and things attached to, or fastened to anything permanently attached to the earth which, under the contract of sale, are agreed to be severed, but does not include actionable claims, stocks, shares or securities;" A perusal of the definition of 'capital goods' clearly....

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....nge in any substance for the manufacture of final product would be "Capital goods", and, therefore, qualify for availing MODVAT Credit. Per clause (b), the components, spare parts and accessories of the goods mentioned in clause (a) used for the purposes enumerated therein would also be "Capital goods" and qualify for MODVAT Credit entitlement. Clause (c) makes moulds and dies, generating sets and weighbridges used in the factory of the manufacturers as capital goods and thus qualify for availing MODVAT credit. The goods enumerated in clause (c) need not be used for producing the final product or used in the process of any goods for the manufacture of final product or used for bringing about any change in any substance for the manufacture o....

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.... part of the cable which is used only for lights and fans would not so qualify. We have no difficulty in accepting the contention of the learned Additional Solicitor-General that, under these circumstances, user will determine whether an item qualifies or not the requirement of clause (1)(a). However, in the present cases this aspect has no relevance. It was not the case of the revenue at any stage before the authorities that an item does not satisfy the requirement of "Capital goods" within the meaning of the Rule on the ground of its user as it now sought to be urged by the learned counsel. The case of the revenue has all through been that the items in question per se are not "Capital goods" within the meaning of the expression as defined....