News Update

Canara Bank and Dena Mark merger NOT on anvil: GovtPM calls for 'TB Mukth Bharat'; Govt to declare panchayat & blocks TB-freeFodder Scam - Laloo gets 14 years jail in 4th caseRoC registers more companies post-GST: MoSAadhaar is optional for drawing pension: MoS'Jan Suraksha' scheme: Govt launches new website for subscribersCBEC asks field formations to speed up recovery of Rs 11500 Crore arrearsGSTN takes several user-friendly stepsCbC Report - Mar 31 deadline not to apply to group entities u/s 286(4)Tariff war - China hits back at USA; imposes duty on goods worth USD 3 bnGST - January collections peak to Rs 89,000 CroreGovt amends e-waste management rules; New targets fixedOver 15 lakh e-insurance accounts opened till Mar 15, 2018E-Way Bill to come into force from April 1, Due dates prescribed for filing of GSTR-3B for April to June 2018Payment of CGST, IGST, UTGST under reverse charge exempted till 30.06.2018I-T - TDS certificate granting lower rate cannot abruptly be cancelled, based on Revenue's apprehensions that assessee may run into losses in future: HCMumbai Customs recovers 7 kg gold in three separate casesI-T - Failure of explicit communication of amended trust deed before Department, is no ground for withdrawal of its registration, till its charitable: ITATApex Court invokes contempt powers against advocate Nisha Priya Bhatia; Former AG Mukul Rohatgi appointed as amicus curiaeUGC grants Jindal Global Univ autonomous status, first private Univ in HaryanaSales tax - Kerosene returned back by RIL to BPCL after extracting N-Paraffin, will amount to 'fresh purchase' and not 'return stream', and hence taxable from prospective effect: HCAnti-dumping duty on 'Flat Base Steel Wheels' imported from China PR to continue till 25 March 2019Exemption from IGST and Compensation Cess under Advance Authorization Scheme and EPCG Scheme extended up to 01.10.2018FTP 2015-2020 - Advance Authorization - Self Ratification Scheme added in Handbook of ProceduresTaxing exports - An unintended missNational Advisory Council acts as 'Think Tank' on tourism: AlphonsCX - Allowing credit only to extent of tax paid by recipient assessee in respect of Manpower Supply service and denying credit of quantum of tax paid by service provider is not based on law: CESTATSmart India Hackathon 2018 - Grand Finale to be held simultaneously at 28 centers
ST - ' Photography Service' -Lighting equipments, Gloves and Tissues would fall under the definition of capital goods being parts/accessories of capital goods - credit admissible: CESTAT

By TIOL News Service

HYDERABAD, APRIL 21, 2017: ASSESSEE, a service provider, had imported Electronic Ballasts and its accessories and other items and availed credit on such items under category of capital goods.

Department entertained the view that such lighting equipment used for outdoor film shooting cannot be treated as components/spares or accessories of capital goods.

Whereas the the original authority confirmed the demand along with interest and penalty, the Commissioner (A) set aside the order.

Hence, Revenue is in appeal before the CESTAT.

The Bench observed that the issue to be analyzed is whether the goods imported namely, lighting equipments, Gloves and Tissues would fall under the definition of capital goods being parts/accessories of capital goods.

Noting that the Commissioner (A) had made lengthy and proper discussion with regard to the use and purpose of the items imported, the CESTAT found it apt to reproduce the same (as below) -

+ Lighting Equipment (imported) were being used for outdoor film shooting. Cinematographic cameras, which are assessee's main equipment/capital goods for provision of 'photographic services', cannot be effectively used unless they are supplemented with specialized lighting equipment which meets the requirement to generate adequate light for outdoor shooting. Therefore, lighting equipment certainly qualify itself to be treated as an accessory to the Cinematographic Cameras. Hence, the Appellants were eligible for CENVAT credit of CVD/ED paid on the lighting equipment, credit availed on Picture Tube for Analyzer Machine was also admissible.

+ Picture Tube for Analyzer Machine (capital goods) is a spare as they procured the said Picture Tube to replace the defunct picture tube of the Analyzer Machine. As the Analyzer Machine is used to view the negative after processing the exposed film and since the said Picture Tube was a spare to the said capital item, credit availed on Picture Tube for Analyzer Machine was also admissible.

+ Kim Wipes - Lens cleaning Tissues and the Leather Hand Gloves are being used to keep the expensive cameras very clean and to avoid possible growth of fungus on the lenses and also to ensure the best possible quality of the picture by keeping the lenses clean - appellants contention that they qualify as cinematographic accessories can be accepted. Similarly, the timing belt, spring & roll pin assortment and other cinematographic accessories can be treated as accessories to their capital goods used in the provision of their output service.

Concluding that the imported goods fall within the definition of parts and accessories of capital goods and the CVD paid thereon is admissible as CENVAT credit, the impugned order was maintained and Revenue's appeal was dismissed.

(See 2017-TIOL-1337-CESTAT-HYD)