Fabricated components must be free from sensitization for using these in critical applications in aggressive environments. During fabrication of a hollow bar from solid bar, deep hole drilling was employed which introduces residual stresses. Stress-relieving heat treatment was employed by heating the hollow bar from room temperature to 1,065°C @ 40°C/h and soaking at 1,065°C for 1 h followed by cooling @ 40°C/h as well as 70°C/h. To detect the susceptibility to IGC, specimens were taken from both circumferential direction as well as longitudinal direction and subjected to ASTM A 262 Practice E test. In U bend, the specimens from the circumferential direction failed whereas longitudinal specimens did not fail. However specimens of both orientations showed Step structure in Practice A test indicating that no carbide has nucleated during the stress-relieving heat treatment ensuring that the cooling rates are faster than the critical cooling rates and the material is not susceptible to IGC. EDAX studies indicated the presence of numerous MnS inclusions enriched in chromium which might have led to chromium depletion around the inclusions resulting in poor passivity at these locations. This study presents the influence of orientation of MnS inclusions in causing failure in U bend test. The need to select specimens of correct orientation during IGC testing is emphasized in this investigation.