Taxindiaonline.com Taxindiaonline.com Taxindiainternational.com HRindiaonline.com
 
LOGIN
Forgot Password |  Register
Friday , May 22, 2015 | Updated : May 22, 10:20 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
 
I-T - Whether where 'interest earned' does not have any direct nexus with 'income from business of export', such interest cannot be deducted as income from export u/s 80HHC(3)(a) - YES: HC Full Bench (See 'Breaking News') National Litigation Policy - CBEC Sermons (See 'DDT') ST - providing of 'gear boys' and 'deck foremen' by association of stevedores to its members - Prima facie covered by High Court decisions - Stay petition allowed unconditionally (See 'Breaking News') Income Tax - Draft scheme of the proposed rules for computation of Arm's Length Price (See 'DDT') Income tax - Whether sum received after tripartite agreement is to be taxed as capital gains when assessee is engaged in such activity with respect to only one property - YES: HC (See 'Breaking News') Cabinet approves revival plan for Sindri Fertiliser unit (See 'Mixed Buzz') VAT - Whether a decision on debatable point of law or failure to apply law to a set of facts which remain to be investigated, can be corrected by way of rectifications - NO: HC (See '2015-TIOL-1310') Story of Income Tax Welfare Fund (See 'DDT') CBEC notifies New Customs Exchange rates effective from 22nd may (See 'What's New') National Litigation Policy: CBEC issues fresh direction to improve indirect tax administration Trial for emergency landing on NHs: IAF mirage successfully lands on Yamuna Expressways PM pays tribute to former PM Rajiv Gandhi on his death anniversary IAF fighter aircraft Mirage -2000 Lands at Yamuna Expressway Credit Flow in GST Regime - And the Discredit goes to ... (See 'The Cob (Web)' Column) ST - CENVAT - Third party MV insurance - As per Rule 9, whatever ST has been paid, applicant is entitled to take credit - Question whether applicant has availed credit of input service without receiving service shall be dealt with at time of final hearing - Stay granted: CESTAT (See 'Breaking News') CAG says Customs and Central Excise Welfare Fund is not necessary - Huge Mess in CBEC fund spending (See 'DDT') I-T - Whether insertion of expression 'even if delay in disposing of appeal is not attributable to assessee' by virtue of Finance Act, 2008, is violative of non-discrimination clause of Article 14 - YES: HC (See 'Breaking News') CBEC New Members + Principal Commissioners' files moving at good pace DIPP - Major Initiatives on Improving ‘Ease of Doing Business’ in India (See 'DDT') CENVAT - ISD neither provides any service nor pays any ST and, therefore, there is no question of assessment - Contention that credit cannot be denied unless assessment of distribution of credit made at ISD is rejected outright: CESTAT (See 'Breaking News') 'Invisible Hand' should work to advantage of society: Narayana Murthy (See 'Mixed Buzz') VAT - Whether agreement between assessee and transporter giving on hire two Deluxe buses for being plied as per requirement of the latter is liable to VAT: HC (See '2015-TIOL-1300')
 
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
   
 
 
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
  • PMLA Notifications
  • 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