Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No 966/09/ 2012-CX
New Delhi the 18th May 2012
To
All Chief Commissioner of Central Excise and Customs
All Chief Commissioner of Central Excise
All Director Generals
Sir/ Madam
Sub: Clarification regarding classification of
Structural Components of Boiler and Admissibility of CENVAT Credit on these
Structural Components, reg-
References have been received from the field formations seeking clarification
in respect of the
Circular No 964/07/2012-CX issued vide F No 84/1/2011-CX.1
dated 2nd April 2012 on the above subject. In the said circular it has been
clarified that structural components of Boiler which are essentially parts of
the boiler are to be classified under heading 8402 and CENVAT credit shall be
admissible in respect of such structural components/ parts (of the Boiler), as
they are not used for laying of foundation or making of structures for support
of capital goods.
- Clarifications have been sought as to whether in view of the said
circular, CENVAT Credit will be admissible on structural components used for
the support of the Capital Goods.
- The circular dated 2nd April 2012 was issued in the context of a dispute
as to whether certain structural components were to be treated as boiler
parts or as goods for making structures to support the boilers. Whether a
particular structural component is a part of the Boiler or a component to
make structure for supporting the Boiler is a question of facts and needs to
be examined on a case to case basis, depending on the nature and use of the
said structural component as per the existing legal provisions and judicial
pronouncements on the subject.
- As clearly stated in para 3 of Boards’ above circular dated 2.4.2012, it
is once again reiterated that in terms of the Rule 2(k) of the CENVAT Credit
Rules, 2004, while CENVAT Credit is available in respect of parts of Boiler,
the same is not admissible in respect of the structural components used for
laying of foundation or making of structures for support of capital goods/
Boiler. The above clarification is in conformity with the views expressed in
the judgments of the Hon’ble Supreme Court/ different benches of the CESTAT.
- Trade, industry and field formations may be suitably informed.
- Hindi version will follow
Yours faithfully
(Madan Mohan)
Under Secretary (CX.1)
F No 84/1/2011-CX.1