TMI Blog2022 (9) TMI 1170X X X X Extracts X X X X X X X X Extracts X X X X ..... para. 09.08 of Foreign Trade Policy 2015-2020. The said view of the authorities below is bereft of any rational. If the said goods are part of the complete plant and its use in relation to the manufacturing of goods is not disputed, they are indeed required directly or indirectly in manufacturing of goods. It is clear from the definition of capital goods 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. The scope of word for manufacture and indirectly appearing in the definition of capital goods under the policy is wide and thus use of such goods having indirect nexus with the manufacture or production of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in lieu of confiscation under section 125 of the Customs Act, 1962 and a further penalty of Rs. 4,00,000/- under Section 112(a) of the Customs Act 1962. 2. Briefly, the facts of the case are that the appellant herein 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 proper officer of customs, in respect of all other parts of second-hand tube manufacturing plant, permitted clearance. However, in respect of office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he office furniture/equipment are part of the compete plant and its use in relation to the manufacturing activity is not disputed, it follows that the said goods qualify as capital goods in terms of para 2.31 Sr. I (c) and accordingly are freely importable. He submitted that the definition of capital goods is provided under para. 9.8 of the Foreign Trade Policy and the same is wide and inclusive; that term plant would include whatever apparatus is used by a businessman for carrying out his business and hence the office furniture/equipment which are undisputedly used in relation to the manufacturing plant answers user test and accordingly qualify as capital goods . In this behalf he placed reliance upon the following decisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Manufacturing Plant . The scope of used tube manufacturing plant under the said agreement, in terms of para. V, included all equipment from its location and further the said office furniture/equipment is listed at sr. 17 of the chartered engineer s certificate dated 28.07.2020. In that view office related furniture/equipment indeed formed part of the said complete plant. Since the said goods formed part of the complete plant and since there is no dispute as to use of the said goods for manufacture or production of stainless steel tubes; it follows that such goods are definitely required directly or indirectly for or in relation to manufacture or production of goods. 7. In this regard, it would be useful to refer to the definition of ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Customs - 2009 (247) ELT 402 (Tri. Bangalore) (iii) Warburg Pincus India Pvt. Limited vs. Commr. of Cus. (Imports), Mumbai 2017 (358) ELT 1250 (Tri. Mumbai) 8. The ratio of the above decision is that the office furniture, tools etc which are used in relation to the manufacturing plant/services answers user test and in view of the wide and inclusive definition of capital goods under the Foreign Trade Policy; such goods qualify as capital goods . 9. Since the subject goods qualify as capital goods in terms of para. 2.31 Sr. No. I (c) of the Policy as discussed herein above; the import was in accordance with the policy. In the circumstances, I am of the clear view that the said goods cannot be held to be liable for c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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