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TMI Blog2017 (4) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... ndering services - In the instant case, the nature of services provided by the appellant is such that even furniture would fall under the category of capital goods used for providing services. In these circumstances, the defence of the appellant that import policy allows import of second hand capital goods has merit - appeal allowed - decided in favor of appellant. - Appeal No. C/1153/06 - Final Order No. A/86120/2017-WZB/SMB - Dated:- 28-2-2017 - Shri Raju, Member ( Technical ) Ms. Laxmi Menon, Advocate for Appellant Shri V.R. Reddy, AC (AR) for Respondent ORDER Per Raju The appellant had imported furniture, which was found to be old and used and not more than 10 years old. A show-cause notice was issued to the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice provider. It was argued that for service provider, the definition of capital goods would include furniture also. He relied on the definition of capital goods appeared in the EXIM Policy, which reads as follows: - Capital Goods means any plant, machinery, equipment or accessories required for manufacture of production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization, technology upgradation or expansion. Capital goods also includes packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generation sets, machine tools, catalysts, for initial charge, equipment and instruments for testing, research and development, qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h v. France at page 658 of that report, and as extracted in page 334 of the AIR reads as under : There is no definition of plant in the Act; but in its ordinary sense, it includes whatever apparatus is used by a businessman for carrying on his business - not his stock-in-trade which he buys or makes for sale; but all goods and chattels, fixed or movable, live or dead, which he keeps for permanent employment in his business. The Supreme Court then summarized its conclusion as under : In other words the test would be : does the article fulfill the function of a plant in the assessee s trading activity Is it a tool of his trade with which he carries on his business If the answer is in the affirmative it will be a plant. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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