EOUs – Inter Unit Transfer of Capital goods – What are Capital Goods – Board clarifies
As per Notification No. 52/2003-Cus., dated 31.03.2003, EOUs can transfer capital goods to another EOU. Now the question is what capital goods are. Annexure 1 and 2 of the notification specifically mentions capital goods and some other items, for example a generating set. Now the confusion is whether the other items mentioned in the notification which can also be capital goods will be considered as Capital goods. Board has now clarified that even the other items can be considered as capital goods depending upon their use. Board also clarifies that this would apply also to the Central Excise exemption Notification No. 22/2003; Dated 31.03.2003.
Circular No. 16/2007-Cus., Dated: April 18, 2007