Trade Notice No. 13/2012 – Central Excise/SH

                Dated Shillong, 20th June, 2012.


Subject: - Clarification regarding classification of Structural Components of Boiler and Admissibility of CENVAT Credit on these Structural Components, reg. 

Attention of the members of Trade, Industry and all others concerned are hereby invited to the Board’s Circular No. 966/09/2012-CX issued under F.No. 84/1/2011-CX.1 dated 18th May’2012 on the above subject clarifying references received from field formations seeking clarification in respect of the Circular No 964/07/2012-CX issued vide F. No 84/1/2011-CX.1 dated 2nd April 2012 and circulated vide this Office Trade Notice No. 12/2012-Central Excise/SH dated 16th April,2012, whereby it has been clarified 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 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 Hon’ble Supreme Court/ different benches of the CESTAT. 


Board Circular No.966/09/2012-CX, Issued vide F.No.84/1/2011-CX. 1, Dated 18th May’2012.

 (Above circular in English & Hindi may be seen/downloaded from or


Disclaimer: Though care has been taken to reproduce the text in its original form, in case of any inadvertent mistake, the above mentioned circular may be referred to.




                                    (Ananya Ray)