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Cus - When there is nothing on record to show that appellant had connived with other three persons to import AA batteries under the guise of declaring goods as Calcium Carbonate, penalty imposed on appellant are set aside: HCCongress fields Rahul Gandhi from Rae Bareli and Kishori Lal Sharma from AmethiCus - The penalty imposed on assessee was set aside by Tribunal against which revenue is in appeal is far below the threshold limit fixed under Notification issued by CBDT, thus on the ground of monetary policy, revenue cannot proceed with this appeal: HCGST -Since both the SCNs and orders pertain to same tax period raising identical demand by two different officers of same jurisdiction, proceedings on SCNs are clubbed and shall be re-adjudicated by one proper officer: HCFormer Jharkhand HC Chief Justice, Justice Sanjaya Kumar Mishra appointed as President of GST TribunalSale of building constructed on leasehold land - GST implicationI-T - If assessee is not charging VAT paid on purchase of goods & services to its P&L account i.e., not claiming it as expenditure, there is no requirement to treat refund of such VAT as income: ITATBengal Governor restricts entry of State FM and local police into Raj BhawanI-T - Interest received u/s 28 of Land Acquisition Act 1894 awarded by Court is capital receipt being integral part of enhanced compensation and is exempt u/s 10(37): ITATCops flatten camps of protesting students at Columbia UnivI-T - No additions are permitted on account of bogus purchases, if evidence submitted on purchase going into export and further details provided of sellers remaining uncontroverted: ITATTurkey stops all trades with Israel over GazaI-T- Provisions of Section 56(2)(vii)(a) cannot be invoked, where a necessary condition of the money received without consideration by assessee, has not been fulfilled: ITATGirl students advised by Pak college to keep away from political eventsI-T- As per settled position in law, cooperative housing society can claim deduction u/s 80P, if interest is earned on deposit of own funds in nationalised banks: ITATApple reports lower revenue despite good start of the yearI-T- Since difference in valuation is minor, considering specific exclusion provision benefit is granted to assessee : ITATHome-grown tech of thermal camera transferred to IndustryI-T - Presumption u/s 292C would apply only to person proceeded u/s 153A and not for assessee u/s 153C: ITATECI asks parties to cease registering voters for beneficiary-oriented schemes under guise of surveys
 
CX - Non-following of procedure of rule 4(5) of CCR, 2004 will not disentitle manufacturer from availing CENVAT credit - stand taken by Revenue in fact favours assessee operating under J&K exemption - appeals allowed: CESTAT

By TIOL News Service

NEW DELHI, MAY 23, 2014: THE units are located in the area of Jammu & Kashmir and are availing Area Based   Notification No. 56/2002-CE   dated 14.11.2002. The factory premises of   M/s Alu Bond Enterprises   were visited by the officers, who conducted various checks and verifications and found shortage of certain raw materials. The shortage in the main raw materials aluminium coils was to the extent of 22.803 MT. The appellants explained that they have sent 21.5 MT of aluminium coils to their sister unit   M/s Alstrong Enterprises   for conversion on job work basis. The shortages of the other raw materials etc. were found to be much on the lower side.

By observing that the appellants did not follow the procedure as per the provisions of Rule 4(5) of CCR, 2004 for sending the cenvatable raw material to the job worker for conversion the lower authorities held that the shortage of the raw material is established and the appellant is liable to reverse the credit. Confiscation was also ordered along with imposition of penalties.

Accordingly, the goods sent back by M/s Alstrong Enterprises after conversion were put to seizure along with confirmation of demand and imposition of penalties.

The Bench observed that both the units are located in area of Jammu & Kashmir and enjoying the exemption Notification No. 56/2002-CE and in terms of which an assessee is entitled to avail the CENVAT credit of duty paid on the inputs; that this credit is required to be first exhausted for payment of duty on the final product and thereafter the balance duty on the final product is to be paid out of the PLA and which duty is subsequently refunded to the manufacturer;that the entire situation is Revenue neutral and no assessee would get benefitted by indulging into clandestine activity.

It was also mentioned -

"5. …, I find that if the Revenue is directing an assessee to reverse the CENVAT credit, he will have to pay more duty on its final product, out of the PLA and would be entitled to more refund. As such the stand taken by the Revenue is in fact favouring the assessee."

Holding that mere non-following of the procedurewould not result in denial of credit and that the shortages in respect of the other raw materials are marginal, the CESTAT set aside the orders and allowed the appeals.

(See 2014-TIOL-843-CESTAT-DEL)


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