excise on Boiler

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agarwal ankur (Querist)
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13 March 2008 hello sir\madam
FACT MY company is purchasing the parts of Boiler FROM THE MANUFACTURER to install the boiler in the factory(PAPER& DUPLEX BOARD) moreover excise dept. has just issued a notice to us for the confirmation that we r PAYING the excise or not on the Boiler

my query is that wheather we r required to pay the excise duty on the boiler or not bcoz we installing the boiler bcoz it is not possible to purchase the redymade boiler if there is any notification \circular or exemption plz quote it or any legal evidance or judjment plz tell me

thanks
byee

Arbind Aggarwal

Arbind Aggarwal (Expert)
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15 March 2008 Boiler is covered under capital goods.

Capital goods assembled/manufactured at site and used in manufacturing of excisable goods, then u can avail benefit of notification no.67/95-CE dated 16.3.1995 as amended from time to time.

As per this notification "capital goods as defined in the Cenvat Credit Rules 2004, manufactured in a factory and used within the factory of production is exempted from duty.

This very matter was decided in the case of "ISGEC Covema Limited v. Commissioner - 2000 (121) E.L.T. 548 (Tribunal -Delhi_)

My self may be approached at Arbindaggarwal@yahoo.com for professional services if required.