Taxindiaonline.com Taxindiaonline.com Taxindiainternational.com HRindiaonline.com
 
LOGIN
Forgot Password |  Register
Monday , March 30, 2015 | Updated : Mar 30, 18:46 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
 
TRAI seeks feedback on over-the-top services (See 'Mixed Buzz') President confers Bharat Ratna on Madan Mohan Malviya posthumously Service tax e-payment can be made till midnight of March 31; RBI extends banking hours till 8 pm tomorrow (See Cir 182 in 'What's New') 14 % Service Tax not with effect from 1st April 2015 – Nagpur Commissioner’s Clarification (See 'DDT') CX - while incorporating provision into existing statute, Legislatures are fully aware of position of law - Pre-deposit mandatory even in respect of orders passed prior to 06.08.2014 and appeals filed thereafter: CESTAT (See 'Breaking News') DRI alone seizes over 200 kg gold on All India basis in past 72 hours CX - Digital Records – Board Proposes to issue Notification and Circular – Invites Feedback (See 'DDT') I-T - Whether insertion of Explanation to Sec 80-IB(9) vide Finance Act, 2009 with retro effect explaining meaning of term 'undertaking' is unconstitutional and ultra vires to Article 14 of Constitution - YES: HC (See 'Breaking News') Interest on differential duty consequent to final assessment (See 'Guest' Column) ST - Work undertaken is harvesting & transporting sugarcane to factory for which labour is employed - Service brought under tax net under Manpower Recruitment envisages supply of labour per se - Demand not sustainable: CESTAT (See 'Breaking News') Registration - Netizens frustrated by ACES (See 'DDT') I-T - Whether sec 127(2)(a) is a machinery provision and CIT is having power of transfer even without assigning any reason: HC (See '2015-TIOL-767') In one of biggest foreign cigarette seizures in India DRI seizes 3.21 Cr sticks worth Rs 23.3 Crore from six containers at Adani Hazira Port Govt releases Rs 385 Cr to AP and Rs 150 Cr to Telangana on Finance Commission recommendations Brazil orders probe into allegations of tax officials collecting bribes of USD 5.9 bn from banks and corporate Blood Sugar test mandatory for every pregnant woman: Minister (See 'Mixed Buzz') Income tax - Whether turnovers of Ss 80IB and non-80IB units are to be clubbed together for determining profits eligible for deduction u/s 80HHC - YES: ITAT (See 'Breaking News') ISRO puts one more Navigation Satellite in orbit; scheduled to launch one more (See 'Mixed Buzz') Whether sec40(a)(ia) can be invoked when assessee deposited TDS on the remittance of Rs. 8,60,713/- in next F.Y but before filing the return of income u/s 139(1)(See '2015-TIOL-326') India Carpet Expo 2015 attains new heights (See 'Mixed Buzz') CX - Valuation -Denial of deduction of trade & turnover discount which had been passed on to customers through credit notes - Demand not sustainable: CESTAT (See '2015-TIOL-573') Saina Nehwal becomes first Indian shuttler to be ranked No 1 in world ranking India can attract much greater FDI if it sorts out tax issues, says Japanese financial analyst Govt okays Defence proposals worth Rs 10,000 Crore Kolkata DRI makes history; seizes 87 kg gold worth Rs 23.5 Crore coming from Myanmar by road; Two Hyundai car occupants arrested VAT - Whether once an article is classified and put under specific entry, basis of such classification is not open to question - YES: HC (See 'Breaking News') PM: Govt aims to extend reach of Piped Natural Gas to one crore houses (See 'Mixed Buzz') CX - Goods got manufactured by appellant as a Loan Licensee through other manufacturers & goods manufactured for Loan Licensees as a job worker is not to be included while computing aggregate value of clearances for determining SSI exemption limit: CESTAT (See 'Breaking News') RBI releases improved prudential norms for NBFCs I-T - Whether if assessee is possessed with mixed funds which include its own funds in sufficient quantity, a general presumption has to be made that its own funds were utilized for giving advances: HC (See '2015-TIOL-754') ISRO gets Gandhi Peace Price for 2014 (Mixed Buzz')
 
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
   
 
 
Subscribe to TIOLTube
Download TIOL 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
  • MISC Circulars
  • 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
  • Depository Scheme
  • Press Note
  • 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
  • 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