Inputs, Capital Goods, Input Services - Central Excise Practice Manual (OLD) - Central Excise

2.1 Inputs (defined under Rule 2 (k) of the CCR): The following goods are entitled to credit under the category of inputs: (i) All goods except H.S.D, L.D.O. and petrol used within the factory of production in or in relation to manufacture of final products directly or indirectly and whether contained in the final product or not, and includes Lubricating oils, greases, cutting oils and coolants; accessories of the final products cleared along with the final product; goods used as paint, or as packing material or as fuel, or for generation of electricity or steam used in or in relation to the manufacture of final products or for any other purpose within the factory of production. 'Inputs' include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. (ii) All goods, except LDO, HSD or Petrol and Motor vehicles used for providing any output service. 2.2 Capital goods (defined under Rule 2 (a) of the CCR): The following goods are defined as Capital goods: (i) All goods falling under Chapters 82 , 84 , 85 , 90 and Headings 68.05 , grinding wheels and the like and parts thereof falling under Heading 6804 of the First Schedule to CETA; (ii) Pollution control equipment; (iii) Components, spares and accessories of (i) and (ii) above; (iv) Moulds and dies, jigs and fixtures; (v) Refractories and refractory materials; (vi) Tubes, pipes and fittings thereof; and (vii) Storage tank, used (1) in the factory of the manufacturer of the final products but does not include any equipments or appliances used in an office; or (2) for providing output service (viii)Motor vehicle registered in the name of the service provider of for providing taxable service as specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause (105) of Section 65 of the Finance Act, 1994 (The specified services are relating to Courier agency, Tour operator, Rent-a-cab operator, Cargo handling Service, Goods transport Agency, Outdoor Caterer, Pandal or Shamiyana Contractor). 2.3 Input service (defined under Rule 2 (l) of the CCR): Input Service is any Service - (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;