News Update

Vizag DRI sleuths seize 1161 kg Ganja concealed under gravel material being transported by lorryBefore GST roll-out Union of India to scrap 16 Cesses of Excise and Service Tax; to cost Rs 65,000 Crore to ExchequerPMs constituency Varanasi to host third G-20 Framework Working Group meeting on WednesdayIndian Navy to de-induct Long-Range Maritime Patrol Aircraft after 29 yearsCBI Court convicts former Oriental Bank Manager & othersST - Claim for exclusion of amounts on basis of acting as pure agent can be made only if all conditions for such concept are fulfilled: CESTATCBEC to be renamed as CBIC; to have 101 GST Commissionerates, including 50 Appeals CommissioneratesApplications invited for First Secretary (Legal) at PMI at WTO, GenevaPangs of GST - Govt sets up Working Groups to address peculiar problems of industryCX - Annual Production Capacity - Actual Production vs deemed production - Legal Fiction vs Presumption - Supreme Court refers matter to Larger BenchCBDT directs officers to grant interest waiver in certain casesOROP - Pension to be reviewed every 5 yearsIncome Tax searches lead to seizure of Rs 3625 CroreUnclaimed Deposits in Banks & Insurance Companies exceed Rs 8000 CroreCST compensation to States: Centre to release Rs 5834 Crore before Mar 31CCI imposes Rs 51K penalty on Kerala MP heading film association as PresidentCX - Any relief under doctrine of promissory estoppel can be enforced only in hands of Courts - Tribunal cannot arrogate to itself such powers: CESTAT4.5% Indians suffer from depression: MinisterDelhi Insurance Ombudsman Office gets ISO certificationCommissionerates fail to pay court fee stamp - CBEC releases ListGST Bills copies being printed; to be tabled on MondayTrump's attempt to substitute Obamacare failsGovt approves nine FDI proposals involving proposal worth Rs 659 CroreCustoms Duty on Sunflower seeds (1206 0090) for the purpose of extraction and refining of oil reduced to 10% for the period 1st April 2017 to 30th September 2017GST high on Alcohol Manufacturing IndustrySFO in UK doing well to deal with foreign bribery casesIndian Cement Industry accounts for only 7% of global needsI-T - Excess stock found during survey which did not belong to assessee but to its Karta in his individual capacity, cannot be added to assessee's closing stockCX - It is 'nature of order' of Tribunal and not 'scope of appeal' that determines maintainability: HCCus - DRI officials at wedding premises - Calling payments as voluntary is turning a blind eye to harsh realities: HCST - Since CESTAT has remanded matter, it cannot be said that any substantial question of law would arise for consideration: HC
 
CX - Cutting and slitting of aluminium foils of jumbo size into smaller size is not taxable: CESTAT

By TIOL News Service

MUMBAI, MAR 20, 2017: THE appellant sare engaged in the activity of cutting and slitting of aluminum foils of jumbo size into smaller size. They are also engaged in some printing activity on the said foils as well.

A notice was issued to the appellant demanding CE duty on the activity of cutting, slitting and printing of rolls. The demands were confirmed and in appeal, the Tribunal remanded the matter for a decision in the light of the apex court decisions in LML Ltd. and Kores India Ltd . 2004-TIOL-92-SC-CX.

In de novo proceedings, again the demands were confirmed and thus the matter is before the CESTAT for the second time.

The appellant submitted that the issue of cutting and slitting of jumbo rolls of aluminum foil into smaller size has been examined by the Apex Court in SR Tissues Pvt. Ltd. 2005-TIOL-101-SC-CX and it has been held that the said activity does not amount to manufacture; in the case of GTC Industries Ltd. the Bombay High Court has held that the activity of embossing and cutting to shape the duty paid aluminium foil does not result in a distinct marketable commodity and is not an excisable activity. It is further stated that activity of printing was miniscule and within the exemption limit as can be seen from the annexure to the show-cause notice.

The AR submitted that in the case of Kores India Ltd - 2004-TIOL-92-SC-CX the Apex Court has held that cutting and spooling of typewriters/telex ribbons amounting to manufacture. Reliance is also placed on the decision in Sanjay Industrial Corporation & Others - 2015-TIOL-17-SC-CX.

The Bench while distinguishing the decisions cited by the AR observed that the facts involved in both the cases were different. However, the decision of the Apex Court in the case of SR Tissues Pvt. Ltd. (supra) squarely covers the instant case, the Bench added.

The CESTAT further noted - If the cutting and slitting of aluminium foil into roll is not taxable then the activity of printing done by the appellants falls within the SSI exemption limit.

The appeal was allowed.

(See 2017-TIOL-895-CESTAT-MUM)


POST YOUR COMMENTS