Facts:- 

• The Appellant, Ratnamani Metal and Tubes Ltd., purchased a "Complete used Stainless Steel Tube Manufacturing Plant" including parts spares, accessories, tools & tackles and office related furniture/equipment, at a total purchase price of 31,00,000 Euros from SN Aussenhandel E.K. Germany in terms of purchase agreement dated 14.10.2019 and sought clearance of the said goods vide Bill of Entry No. 2351802 dated 02.08.2020.
• The officer of custom permitted clearance with regard to all other parts of second - hand tube manufacturing plant but denied clearance in respect of furniture/equipment as they cannot be construed as capital goods under Cr. II of para 2.31 of Foreign Trade Policy Act 2015-2020.
• Appellant submitted that office furniture/ equipment being part of complete stainless steel tube manufacturing plant and is therefore considered to be as capital goods.
• Aggrieved Appellant filed Appeal.

Issue:

• Whether Furniture/equipment is capital goods under Foreign Trade Policy Act?

Order:

• The Tribunal observed that as goods are part of the complete plant and are used in relation to the manufacturing of goods directly or indirectly it makes them capital goods.
• Further, agreement between the Appellant and the seller namely SN Aussenhandel E.K. Germany “used office furniture/equipment” formed part of “Complete Used Stainless Steel Tube Manufacturing Plant”. In that view office related furniture/equipment indeed formed part of the said complete plant. It follows that such goods are definitely required directly or indirectly for or in relation to manufacture or production of goods.
• Relying on Asia Projects Ltd v/s Commissioner of Customs, GE India Technology Centre v/s Commissioner of Customs and the definition of capital goods as provided by Foreign Trade Policy Act, the Tribunal observed that any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods would fall within the scope of capital goods.
• Appeal is allowed.