Seminar on Budget 2010 at Vizag
TODAY, TIOL in association with Tax Law Research Group, Visakhapatnam is hosting a one day seminar on the changes brought in Customs, Excise and Service Tax in Budget 2010 at Visakhapatnam .
The Seminar should be a curtain raiser for GST. CBEC Member Dutt Majumder is the Chief Guest and is sure to enlighten the audience with his deep knowledge. Senior officers of the Department, leading consultants and captains of industry and trade are attending.
We will bring you updates of the developments in the seminar.
Alumina Balls/Ceramic Pebbles used in Ceramic Tiles Industry are Capital Goods – CBEC Clarifies
CBEC received representations from field formations and the industry seeking clarification as to whether items like alumina balls/ceramic pebbles, which are grinding media used in ball mills in the Ceramic Tile Industry should be treated as capital goods or inputs under the provisions of CENVAT Credit Rules. Similarly doubts were expressed as to whether other items like 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, should be considered as capital goods or inputs.
Board felt that the classification of these items as capital goods or inputs is relevant because a concessional rate of excise duty is available to a tile manufacturer subject to the condition that no CENVAT credit is taken on inputs used in the manufacture of ceramic tiles.
After examining the issue, CBEC clarified as follows:
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.
Circular No. , Dated : April 1, 2010