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Trade Notice No.15/2010-CE Dated Shillong, the 28th May, 2010
Subject: Items used in Ceramic Tiles Industry - whether capital goods or Input -reg.
Attention of Trade, Industry and all concerned are invited that the 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. 2. 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.
( Hemant A Bhat ) Commissioner 3. Hindi version will follow.
Authority: Letter dated 1st April 2010 Issued by Govt. of India Ministry of Finance Central Board of Excise & Customs New Delhi, under Circular No. 920/10/2010-CX |