CIR NO. 966/09/2012-CX, DT. 18/05/2012
- Document type
- Circular
- Reference no.
- S
- Dated
Clarification regarding classification of Structural Components of Boiler and Admissibility of CENVAT Credit on these Structural Components
Clarification regarding classification of Structural Components of Boiler and Admissibility of CENVAT Credit on these Structural Components
2. 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.
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 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 Honble Supreme Court/ different benches of the CESTAT.
5. Trade, industry and field formations may be suitably informed.
6. Hindi version will follow
Yours faithfully
(Madan Mohan)
Under Secretary (CX.1)