Indian Tax Solutions
Home | Why Register? | Register | Subscription | Contact Us | Discussion Board | Pay Online
Last Updated : Monday 2nd April, 2012 - 9:11pm
NEWS UPDATES

Customs duty Exemption to Pulses and chickpeas extended till 1st October 2015 Continue reading | Antiquities intended for public exhibition in a museum or art gallery exempted from Customs duties Continue reading | Tariff Value of Gold, Silver enhanced and of oils, brass scrap, poppy seeds reduced Continue reading | CBDT asks I-T department to act on public grievances after PM Narendra Modi's rap  Continue reading | Tariff concessions under the India-Japan Comprehensive Economic Partnership Agreement (CEPA), w.e.f. 01st April 2015 Continue reading | Service tax e-payment can be made till midnight of March 31 and RBI extends banking hours till 8 pm on 31st March 2015 Continue reading | CBDT issues clarification regarding Explanation 5 to clause (i) of sub-section (1) of section 9 of Income-tax Act, 1961 ('Act') Continue reading | Finmin launches national electronic I-T judicial database Continue reading | Rate of exchange for conversion of Norwegian Kroner with effect from 26th March, 2015 Continue reading | PAN mandatory for service tax registration: FinMin Continue reading |
 
 
 
CBEC CIRCULAR NO-964/07/2012-CX., Dated: April 2, 2012
CBEC CIRCULAR NO-964/07/2012-CX., Dated: April 2, 2012

Subject : Clarification regarding classification of structural components of Boiler and admissibility of CENVAT credit on these structural components – reg.

Reference has been received from Trade seeking clarification regarding classification of structural parts/components of Boiler and admissibility of CENVAT credit on these parts/components to the buyers of the Boilers. It has been represented that CENVAT credit is being denied to the supporting structural parts of the Boilers at the buyers’ end by classifying the same under Chapter 73 as structural parts and not as a part of Boiler. These are not being covered under the definition of inputs under the CENVAT Credit Rules, 2004, on account of exclusion given in rule 2 (k)(iv)(B)(b). This denial is on the ground that these are used for structures for support of Capital goods, without which the Capital goods can function.

2 The matter has been examined in the Board. The Boilers are a combination of various systems such as Coal Handling System, Coal Feeding System, Draft Air System, Demineralization Plant, Boiler Feed Water System, Boiler Tubes, Boiler Drums, Super Heat System, Flue Gases Treatment System and Ash Handling System etc. All these Systems work in tandem to make a modern Boiler. These Systems comprise of many parts including structural components which are essentially the part of Boiler by way of technical specifications. As per Section Note 4 to the Section XVI of the First Schedule to the Central Excise Tariff Act, 1985, “ Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function.”

3. Accordingly it is clarified that those structural components which are to be used essentially as a part of Boiler System would be classifiable as parts of Boiler only under Heading 8402 of the Tariff. It is further clarified that since these structural components are nothing but the parts and accessories of the Boiler, they would be covered by the definition of inputs under Rule 2(k)(iii) of the CENVAT Credit rules, 2004 (i.e. all goods for generation of electricity & steam). Further these structural components shall not be hit by the exclusion clause to the said definition of inputs, as these are not used for laying of foundation or making of structures for support of capital goods, but are essentially the part of said Boilers.

4. Trade, industry and field formations may be suitably informed.

5. Hindi version will follow.

F. No. 84/1/2011-CX-1

(Madan Mohan)
Under Secretary (CX1)




-->
Search
Advanced Search
 
Member Login

You are not currently logged in.

Username
Password
  Forgot Password? | Sign Up
 
Subscribe Newsletter
Subscribe to our newsletter and be kept with latest Indian Tax solutions.
Name
Email