SIGN IN SUBSCRIBE

News Update

Requisite Checks for Appeals - Court FeeI-T - Members of Settlement Commission appointed amongst persons of integrity & outstanding ability & having special knowledge in/experience of direct taxes; unfortunate that SETCOM's orders are challenged without establishing them to be contrary to law or lacking in jurisdiction: HCThe 'taxing' story of Malabar Parota, calories notwithstanding!I-T - Unless a case of bias, fraud or malice is alleged, then Department cannot assail SETCOM's order: HCCentre allows export of 99,150 MT onion to Bangladesh, UAE, Bhutan, Bahrain, Mauritius & LankaI-T- Re-assessment vide Faceless Assessment u/s 144 of I-T Act, is barred by Section 31 of IBC 2016, which is binding upon all creditors of corporate debtor: HCPension Portals of all Pension Disbursing Banks to be integratedI-T- Resolution Plan under IBC, once approved, nullifies any claims pertaining to a period prior to approval of said Plan: HC‘Flash Mob’ drive in London seeks support for PM ModiI-T - Once assessee has produced all supporting documents which includes profit & loss account, balance sheet and copy of ITR of creditors, then identity & creditworthiness is established: ITATTo deliver political message, Pak Sessions judge abducted and then released: KPKI-T - Assessee shall provide monthly figures to arrive at year-end average of deposits received from members, interest paid thereon & investments made in FDs from external funds, for calculating Sec 80P deduction: ITATMaersk to invest USD 600 mn in Nigerian seaport infraI-T - It shall not be necessary to issue authorization u/s 132 separately in name of each person where authorization has been issued mentioning thereon more than one person: ITATChile announces 3-day national mourning after three police officers killedI-T- Since facts have not yet been verified by AO, issue of CSR expenditure can be remanded back for reconsideration: ITATIndian Coast Guard intercepts Pakistani boat with 86 kg drugs worth Rs 600 CroreI-T - Failure to substantiate cash deposits by employer during festival will not automatically lead to additions u/s 68, in absence of any opportunity of hearing: ITATGold watch of richest Titanic pax auctioned for USD 1.46 millionGST - There is no material on record to show as to why the registration is sought to be cancelled retrospectively - Order cannot be sustained: HCIraq is latest to criminalise same-sex marriage with max 15 yrs of jail-termGST - SCN does not put the petitioner to notice that the registration is liable to be cancelled retrospectively, therefore, petitioner did not have any opportunity to object to the same - Order modified: HCUndersea quake of 6.5 magnitude strikes Java; No tsunami alert issuedGST - A taxpayer's registration can be cancelled with retrospective effect only where such consequences are intended and are warranted: HCZelensky says Russia shelling oil facilities to choke supply to EuropeGST - Rule 86A - Single Judge was correct in relegating appellant to his alternate remedy of replying to SCNs and getting matter adjudicated by adjudicating authority: HC20 army men killed in blasts at army base in CambodiaST -Simultaneous filing of refund applications by service provider/KSFE and the service recipients/petitioners for same amount - Applications ought not to be rejected on technical issue when applications filed in time: HC3 Indian women from Gujarat died in mega SUV accident in USST - Court cannot examine the issue, which is only a question of fact and evidence and not of the law - Petition dismissed: HCJNU switches to NET in place of entrance test for PhD admissionsCX - Department ought not to have waited for rebate proceedings to get finalized and ought to have issued SCN within normal period: CESTATGST - fake invoice - Patanjali served Rs 27 Cr demand noticeCus - As Section 149 prior to its amendment, does not prescribe any time limit, the Board vide Circular 36/2010 cannot impose a time limit so as to decline the request for amendment of shipping bill: CESTAT
 
CX - Crane imported in name of partner but used by partnership firm - payment is not criteria for taking CENVAT credit: CESTAT

 

By TIOL News Service

MUMBAI, MAR 29, 2018: THE issue is whether the appellant is entitled for CENVAT credit in respect of the mobile cranes imported in the name of partner of the appellant's partnership firm and later the Bill of Entry was endorsed by the partner in favour of the appellant firm.

The lower authorities denied the credit and, therefore, the appellant is in appeal before the CESTAT contending that there is no dispute regarding the receipt and use of the cranes by the partnership firm. Furthermore, since the Bill of Entry has been endorsed in favour of the partnership firm, CENVAT credit is legally admissible to the appellant in view of the decisions in -

(i) Trichem Lab (Bombay) Ltd. – 2016-TIOL-1025-CESTAT-MUM

(ii) SS Cropcare Ltd. – 2016-TIOL-2151-CESTAT-DEL

(iii) Marmagoa Steel Ltd. – 2005-TIOL-239-HC-MUM-CX

(iv) Marmagoa Steel Ltd. – 2008-TIOL-249-SC-CX

The AR supported the order of the lower authority and also mentioned that the appellant is paying mobilization charges to the partner in whose name the cranes were imported. Inasmuch as since the appellant had not paid the value of the crane to the partner,CENVAT credit cannot be taken by the appellant.

The Bench observed –

+ Though the crane was imported in the name of the partner, but the same was received and used by the partnership firm i.e. the appellant.The Bill of Entry was also endorsed by the importer (partner) in favour of the appellant. Therefore, there is no reason to deny the credit to the appellant.

+ As regards the submission of the learned AR that the payment towards the value of imported crane was not made by the appellant to the partner, I am of the view that the payment is not the criteria for taking the cenvat credit. It has been held in various judgments that even in case of job worker, the credit is admissible even though when the job worker does not pay the value of the goods. Applying the same logic and in absence of any provision of payment transaction, cenvat credit cannot be denied to the appellant.

The impugned order was set aside and the appeal was allowed.

(See 2018-TIOL-995-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