SIGN IN SUBSCRIBE

News Update

Global Debt & Fiscal Silhouette rising! Do Elections contribute to fiscal slippages?ISRO study reveals possibility of water ice in polar cratersGST - Statutory requirement to carry the necessary documents should not be made redundant - Mistake committed by appellant is not extending e-way bill after the expiry, despite such liberty being granted under the Rules attracts penalty: HCBiden says migration has been good for US economyGST - Tax paid under wrong head of IGST instead of CGST/SGST - 'Relevant Date' for refund would be the date when tax is paid under the correct head: HCUS says NO to Rafah operation unless humanitarian plan is in place + Colombia snaps off ties with IsraelGST - Petitioner was given no opportunity to object to retrospective cancellation of registration - Order is also bereft of any details: HCMay Day protests in Paris & Istanbul; hundreds arrestedGST - Proper officer should have at least considered the reply on merits before forming an opinion - Ex facie, proper officer has not applied his mind: HCSaudi fitness instructor jailed for social media post - Amnesty International seeks releaseGST - A Rs.17.90 crores demand confirmed on Kendriya Bhandar by observing that reply is insufficient - Non-application of mind is clearly written all over the order: HCDelhi HC orders DGCA to deregister GO First’s aircraftGST - Neither the SCN nor the order spell the reasons for retrospective cancellation of registration, therefore, they are set aside: HCIndia successfully tests SMART anti-submarine missile-assisted torpedo systemST - Appellant was performing statutory functions as mandated by EPF & MP Act, and the Constitution of India, as per Board's Circular 96/7/2007-ST , services provided under Statutory obligations are not taxable: CESTATKiller heatwave kills hundreds of thousands of fish in Southern VietnamI-T - Scrutiny assessment order cannot be assailed where assessee confuses it with order passed pursuant to invocation of revisionary power u/s 263: HCHong Kong struck by close to 1000 lightningI-T - Assessment order invalidated where passed in rushed manner to avoid being hit by impending end of limitation period: HCColumbia Univ campus turns into ‘American Gaza’ - Pro-Palestinian students & counter-protesters clashI-T - Additions framed on account of bogus purchases merits being restricted to profit element embedded therein, where AO has not doubted sales made out of such purchases: HCIndia to host prestigious 46th Antarctic Treaty Consultative MeetingI-T - Miscellaneous Application before ITAT delayed by 1279 days without any just causes or bona fide; no relief for assessee: HCAdani Port & SEZ secures AAA RatingI-T - Assessee is eligible for deduction u/s 54EC on account of investment made in REC Bonds, provided both investments were made within period of six months as prescribed u/s 54EC: ITATNominations for Padma Awards 2025 beginsI-T - PCIT cannot invoke revisionary jurisdiction u/s 263 when there is no case of lack of enquiry or adequate enquiry on part of AO: ITATMissile-Assisted Release of Torpedo system successfully flight-tested by DRDOI-T - If purchases & corresponding sales were duly matched, it cannot be said that same were made out of disclosed sources of income: ITATViksit Bharat @2047: Taxes form the BedrockI-T - Reopening of assessment is invalid as while recording reasons for reopening of assessment, AO has not thoroughly examined materials available in his own record : ITAT
 
CX – Excess quantity filled in Injection is as per provisions of Drugs & Cosmetics Rules, 1945 and hence appellant is not required to pay any duty thereon - Appeal allowed: CESTAT

By TIOL News Service

MUMBAI, MAR 02, 2014: THE appellant is a medicament manufacturer.

The facts of the case are mentioned thus – "During the course of manufacturing activity, they drew control sample for testing and not paid duty on that. The appellant has also procured certain inputs which were used as trial on machine and as required by the Drugs & Cosmetics Rules, they have to fill excess quantity in the injection, therefore, revenue is of the view that appellant are required to pay duty on the excess quantity involved in the injection sold by them."

Be that as it may, SCN was issued to the appellant demanding CE duty and the same was confirmed by the CCE, Belapur along with penalty and interest.

The appellant has accepted the duty demand raised for control sample and inputs used in the machine trial but in respect of the remaining part of the order viz. excess quantity in injection sold, the appellant contests the same before the CESTAT.

After hearing both sides, the Single Member Bench observed that in the matter of duty liability on 'Control sample', the Tribunal in the case of Dabur India Ltd. 2005-TIOL-171-CESTAT-DEL-LB has held that control samples retained in factory are not liable to duty if proper account is maintained. Inasmuch as since the appellant was maintaining proper account for control samples they are not required to any pay duty although they are not contesting duty liability. And so, they are also not required to pay interest and penalty for not paying duty on control samples. As regards inputs used in trial run of machine, the same are entitled for CENVAT credit in view of the decision in Kolsite Machine FabrikP. Ltd. 2004 (176) ELT 673 but since the appellant is not contesting the issue the interest and penalty was waived.

In the matter of payment of duty on the 'excess quantity in the injection' the Bench observed that since filling of excess quantity is mandated by the provisions of the Drugs & Cosmetics Rules, 1945, the appellant is not required to pay duty on the same. And therefore, question of penalty and interest also does not arise.

The appeals were disposed of in the above manner.

(See 2014-TIOL-323-CESTAT-MUM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST