Clarification regarding classification of Structural Components of Boiler and Admissibility of CENVAT Credit On these Structural Components - Central Excise - CENTRAL EXCISE TRADE NOTICE NO. 03/2013

GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE,CUSTOMS S. TAX, NO.71, CLUB ROAD, BELGAUM 590 001 C. No. IV/16/19/2013 Tech DATED 20.11.2013 CENTRAL EXCISE TRADE NOTICE NO. 03/2013 Sub :- Clarification regarding classification of Structural Components of Boiler and Admissibility of CENVAT Credit On these Structural Components, - Reg. Kind attention is invited to Circular No.966/09/2012-CX dated 18.5.2012 issued vide F.N0. 84/1/2011-cxl dated 18.5.2012 by the CBEC, New Delhi on the above subject. It was clarified vide Circular No 964/07/2012-CX issued vide F.N0 84/1/2011-cx-l dated 2.4.2012 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. 2. Clarifications have been sought as to whether in view of the said Circular, Cenvat Credit will be admissible on structural components of structures for support of capital goods. 3. 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. 4. As clearly stated in para 3 of Boards' above Circular dated 2.4.2012, it is once again reiterated that in terms of the Rules 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 CES TAT. (B. ARERAM) COMMISSIONER