Taxindiaonline.com Taxindiaonline.com Taxindiainternational.com HRindiaonline.com
 
LOGIN
Forgot Password |  Register
Tuesday , October 21, 2014 | Updated : Oct 21, 22:30 IST
Income Tax    Customs    Excise    Service Tax    FEMA    DGFT    SEZ    Misc    Pitara    Budget   
About Us Contact Us Advertise
Taxindiaonline.com Taxindiaonline.com Taxindiainternational.com
NEWS FLASH
 
Central Excise Commissionerate, Ahmedabad -II, arrests two persons for alleged duty evasion in manufacture of paan masala to tune of Rs 3.7 Cr; Undeclared machine also found Ministry of Steel to set up 'Steel Research & Technology Mission of India' (See 'Mixed Buzz') Electronic Toll Collection System inaugurated (See 'Mixed Buzz') Expert Panel on Holistic Tax Initiatives submits DRISHTI Report to FM (See 'Mixed Buzz') FM is confident of tabling revised Constitutional Amendment Bill on GST during Winter Session; CST phase out package to be decided along with Bill Kejriwal has last laugh in murky politics of gas pricing & imports (See 'Ice Cubes' Column) Guwahati Customs seizes gold bars worth Rs 57 lakhs and arrests one person from Railway Station ACC clears many appointments - Alok Kumar goes from DoP&T to CVC + T Jacob goes to DoP&T from Food & Public Distribution Tata sets up Land Rover factory in China China's Q3 growth slumps down to 7.3%; global experts fear further slowdown in recovery Determination of place of removal - CBEC Clarification + Place of Removal - Hard to place (See 'DDT' Column) CX - Notfn 23/2003 - Goods cleared by EOU to own units in DTA - such goods when sold in DTA had not been exempted from sales tax by any Notification - no requirement to go into analysis for sales tax on stock transfer: CESTAT (See 'Breaking News') Works contract - Constitutional Bench ruling of SC - Whether retrospective? (See 'ST se GST tak' Column) Income tax - Rule 9B - Whether exhibition rights, broadcasting rights and satellite rights are to be construed as distribution rights - YES: HC (See 'Breaking News') Income Tax DC in CBI net with 25 lakh bribe + CX Supdt demands a bribe of Rs.3 crore - caught with Rs 20 lakh (See 'DDT') ST - Bus service provided by appellant to transport employees - appellant are neither having tourist permit nor operating in tourist vehicle, therefore, they are not liable to pay ST as tourist operator prior to 10/09/2004: CESTAT (See 'Breaking News') Transport Charges - the US Law (See 'DDT') Expert Advisory Group constituted on Water issues (See 'Mixed Buzz') Income tax - Whether non-maintenance of stock register, when all information were disclosed relating to sales and purchases, can be held as willful neglect to attract penalty provisions: ITAT (See '2014-TIOL-750') NACEN Hindupur cleared by FM - Largest Civil Service Academy (See 'DDT') Govt sets up Committee to study Corporate Bankruptcy Legal Framework by February; Former Lok Sabha Secretary General T K Vishwanathan is appointed Chairman Mangalore Airport Customs seizes gold concealed in toy jeep & dog from pax coming from Dubai IIMC to be upgraded to Communication University, says Minister (See 'Mixed Buzz') I-T - Whether every disclosure of an item of income over and above what is mentioned in return can by itself be treated as an act of concealment attracting action u/s 271: HC (See '2014-TIOL-1836') CBEC clarifies on determination of Place of Removal (See Cir 988 in 'What's New') Guwahati & Shillong Customs seizes opium and arrest 3 persons in joint operation Cadre Review: CBEC wraps up DPC for promotion of Group B to Group A; Order being finalised Long Term Bonds - Concessional TDS - CBDT Conditions (See 'DDT' Column) Trade-Based Money Laundering - An Impediment to Trade Facilitation (See 'Guest' Column)
 
Bookmark and Share
CX - Notfn 11/97 amending Notfn. 67/95 for exemption to intermediate products used in manufacture of goods supplied under exemption to Intl Organization as per Notfn. 108/95 is to be considered clarificatory in nature - Appeal allowed: CESTAT

By TIOL News Service

MUMBAI , SEPT 20, 2013 : NOTIFICATION No. 108/95-CE dated 28.8.95 exempted all goods falling under the Schedule to the CETA, 1985 when supplied for the official use of United Nations or International Organisation or for the projects funded by United Nations or an International Organization and approved by the Govt. of India.

Rule 57C of the CER, 1944 prevailing during February 1997 provided for disallowance of Modvat credit when final product was exempted from duty. However, exception was made in respect of supplies made in terms of Notification No. 108/95-CE dated 28.8.95. The appellants were, therefore, entitled for Modvat credit of duty paid on the components used in the manufacture of motor vehicles supplied to United Nations or International Organizations.However, the captive consumption NotificationNo.67/95-CE dated 16.3.95 did not mention about clearances of the final product to the International Organization, whom the appellants were supplying.

Nonetheless, an amendment came by virtue of Notification No.11/97-CE, dated 01.03.1997 including these International Organizations.

In the present case, the period involved is of February, 1997 and the Department demanded the duty on the intermediate products utilized in the final products cleared under exemption 108/95-CE. The lower authorities confirmed the demand.

Before the CESTAT, it is submitted that the subsequent amendment is to be given effect retrospectively even for the month of February 97 also inasmuch as the situation of Revenue neutral; that the Notification No. 11/97-CEdt. 1.3.97 is clarificatory in nature to the Notification No. 108/95 dt. 28.8.1995. Reliance is placed on the decision in Premier Tyres Ltd.( 2003-TIOL-55-HC-KERALA-CX ) .

The Revenue representative reiterated the order passed by the lower authority and submitted that the Notification No. 11/97-CE cannot be given retrospective effect and, therefore,the appeal should be dismissed.

The Bench observed -

"7. Considering the submissions made by both sides and after examining the issue before us. We find that as per Rule 57C, the credit of duty was not allowed if final products are exempted but which reproduced hear as under:

“Rule 57C. Credit of duty not to be allowed if final products are exempt.- No credit of the specified duty paid on the inputs used [in the manufacture of a final product (other than those cleared either to a unit in a Free Trade Zone or to a hundred percent Export-Oriented Unit)] [ or unit in an Electronic Hardware technology Park or to a unit in Software Technology Parks] [or supplied to the United Nations or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) NO. 108/95-Central Excise, dated the 28 th August, 1995] shall be allowed if the final product is exempt from the whole of the duty excise leviable thereon or is chargeable to nil rate of duty”.

We further find that as per Notification No. 108/95-CE dt. 28.8.95 the goods were exempted which were supplied to the United Nations or an international organization for their official use. We further find that as there was an anomaly in the Rule to plug that anomaly Notification NO. 11/97-Ce dated 1.3.1997 came into effect…….In the case in hand before us, also the parts assemblies to the motor vehicle which is the final product supplied to unit. Therefore, the intermediate product of the parts assembled, the benefit of Notification No. 67/1995 read with Notification NO. 108/95 is available to the appellants. Accordingly, the impugned order is set aside and the appeal is allowed with consequential relief if any."

In passing : Through every rift of discovery some seemingly anomaly drops out of the darkness, and falls, as a golden link, into the great chain of order - Edwin Hubbel Chapin.

(See 2013-TIOL-1391-CESTAT-MUM)


POST YOUR COMMENTS
   
 
 
TIOL Mobile App
TIOL SEARCH
 
TIOL Subscriptions
 All-In-One Package
 Indirect Tax Package
 Income Tax Package
<< More Packages>>
 
   
             
Income Tax Customs Excise Service Tax FEMA DGFT SEZ Misc Pitara Budget
  • Notifications
  • Circulars
  • SC Cases
  • HC Cases
  • ITAT Cases
  • Instructions
  • Advance Ruling
  • Settlement
  • Other Case
  • Directorate of Income Tax (Systems)
  • Tariff Notfn
  • Non Tariff Notfn
  • Circulars
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Settlement
  • Advance Ruling
  • Safeguard Duty Notfn
  • Anti-dumping Notfn
  • Drawback Cases
  • Tariff Notfn
  • Non Tariff Notfn
  • Circulars
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Settlement
  • Advance Ruling
  • Excise Amendment
  • Clean Energy Cess Notfn
  • MISC Circulars
  • 37B Order
  • Commr.(A) Order
  • CESTAT
  • Notifications
  • Circulars
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Miscellaneous
  • Advance Ruling
  • FAQ
  • Finance Act, 1994
  • Commr. (A) Orders
  • 37B Order
  • Removal of Difficulty
  • VCES
  • Accounting Head
  • Exchange Manual
  • Fema Notifications
  • SC Cases
  • HC Cases
  • RBI Notifications
  • Act
  • Rules
  • Regulations
  • Master Circulars
  • RBI Circulars
  • Notifications
  • Circulars
  • Public Notices
  • Trade Notice
  • FTDR Amendment 2010
  • MISC
  • State Acts
  • Notifications
  • Instructions
  • Act 2005
  • Rules 2006
  • DGEP
  • State Policy
  • SC Cases
  • HC Cases
  • VAT Cases
  • Deputation Posts
  • Service News
  • The Insider
  • Transfer
  • Promotion
  • Recruitment Rules
  • Transfer Policy
  • Training Circulars
  • Service Cases
  • MISC
  • Pay Commission
  • Cadre Review
  • Budget Circular 2013-14
  • Union Budgets
  • Economic Surveys
  • Budget Speeches
  • Finance Acts
  • Finance Bill
  • TRU - D. O. Letter
  • A Taxindiaonline Website. Copyright © 2014 Taxindiaonline.com Pvt.Ltd. All rights reserved. | Powered by 4th Dimension