Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)
Circular No. 920/10/2010-CX
New Delhi, dated the 1st April, 2010.
To,
All Chief Commissioners of Central Excise (including LTU),
All Commissioners of Central Excise (including LTU).
Sir/ Madam,
Subject: Items used in Ceramic Tiles Industry - whether capital goods or input
-reg.
Representations have been received from field formations and industry seeking
clarification as to whether items, namely, alumina balls/ ceramic pebbles which
are grinding media used in ball mills in the Ceramic Tile Industry should be
treated as capital goods or input under the provisions of CENVAT Credit Rules.
On the other items too, namely, bolting cloth/ screens/ silicon cylinders which
carry designs and which are fitted on the machines used for printing of design
over the surface of the tiles, doubts have arisen as to whether these should be
considered as capital goods or inputs. Classification of these items as capital
goods or inputs is also relevant because a concessional rate of excise duty is
available to a tile manufacturer subject to the condition that no cenvat credit
on inputs used in the manufacture of ceramic tiles is taken.
- The issue has been examined. It has been reported that alumina balls/ ceramic
pebbles are essential to run the ball mill in the ceramic tile factory and the
ball mill cannot function without the grinding media. Therefore, alumina balls/
ceramic pebbles which are grinding media should be considered as component/ part
of the machines to be classified as capital goods for cenvat credit purposes.
Similarly, bolting cloth/ screens/silicon cylinders which carry designs and
which are fitted on the machines used for printing of designs are also essential
for operating of the machines. Therefore, these items would also be considered
as capital goods for the purpose of CENVAT Credit Rules, being part/ component
of the machines.
- Trade & Industry as well as field formations may be suitably informed.
- Receipt of this circular may kindly be acknowledged.
- Hindi version will follow.
Yours faithfully,
(Amish Kumar Gupta)
OSD (CX-8)
F.No.267/90/2009-CX8 (Pt.1)