Capital Goods - Definition - Law Dictionary Home Dictionary Definition capital-goods

Definition :

Capital goods, include all types of properties including consumable raw material, components etc. Capital goods become capital goods when used in the manufacture of products. Every Capital asset is not capital good, C.C.E. v. Ginni Filaments Ltd., (2005) 3 SCC 378 (388).

Means plant, mechiners and equipment used in trade or manufacturing of goods, [Manipur University Act, 2005, s. 2(e)]

Is very wide. Capital goods can be machines, machinery, plant, equipment, apparatus, tools or appliances, Commissioner of Central Excise, Coimbatore v. Jawahar Mills Ltd., (2001) 6 SCC 274.

Means--

(a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any changes in any substance for the manufacture of final products;

(b) components, spare parts and accessories of the aforesaid machines, machinery, plaint, equipment, apparatus, tools or appliances used for aforesaid purpose; and

(c) moulds and dies, generating sets and weigh-bridges used in the factory of the manufacturer, [Customs Tariff Act, 1975 (51 of 1975), s. 3 (UK)]