SIGN IN SUBSCRIBE

News Update

CDS Gen Anil Chauhan to chair Parivartan Chintan - IICus - Warehousing of imported solar panels/solar modules - Instruction dated 9 th July 2022 appears to travel far beyond the advisory and clarificatory function which stands placed in the Board by virtue of s.151A of CA, hence quashed: HCPhase III: EC records 65.68% voter turnoutCus - Petitioner had opted for conversion from a less rigorous procedure of availing Duty Drawback Scheme to a more rigorous procedure under Advance Authorisation Scheme and as per Circular 36/10-Customs, same was not possible: HCDRDO organises two-day National Symposium & Industry Meet on 'Emerging TechnologiesCX - Respondents cannot go beyond the Reward Scheme as no discretion is vested with them to release any amount towards the reward, before finalization of the proceedings against assessee: HCGST - Petitioner is given liberty to manually file an appeal against impugned order regarding transitional credit of SGST for which they had valid evidence for payment of VAT of same amount: HCGST - For the period for which return was filed, registration cannot be cancelled retrospectively: HCHas Globalisation favoured capital more than labour? Can taxing super-rich help?GST - SC asks Govt not to use coercion for recovering arrearsChanging Tax Landscape in IndiaPrivate equity funds pouring in India’s healthcare sectorInterpretation of StatutesGoogle, Microsoft move Delhi HC against order to erase non-consensual intimate images16th Finance Commission invites views from general public on terms of referenceEvery party committed to ensure PoK returns to India; Jaishankar695 candidates to contest LS elections in Phase 5Astronomers’ efforts lead to discovery of a rocky planet with atmosphereCSIR hosts Student-Science Connect program on Climate ChangeVolkswagen asks EU not to raise tariffs on EVs from ChinaI-T - Assessee given insufficient time to file reply to Show Cause Notice; assessment order quashed; matter remanded for reconsidering assessee's replies: HCChina blocks imports from Intel & QualcommI-T - Assessee has 5 email IDs & responded to communications received on one of these IDs; Assessee cannot claim to have been denied an opportunity of personal hearing before passing of order: HCRecord rainfall damages over 1 lakh homes in Brazil; over 100 lives lostI-T- Additions framed u/s 68 r/w Section 115BBE are unwarranted where assessee duly explains nature & source of cash receipts, through sufficient documentation: ITATRussia bombards Ukraine’s power supply; Serious outages fearedI-T- Re-assessment cannot be resorted to beyond 4 years from end of relevant AY, where assessee has not failed to file ITR or to make full & true disclosure of facts necessary for assessment: ITATIndia received foreign remittance of USD 111 bn in 2022, says UNI-T- Receipt of subscription fees can't be considered as commercial activity: ITATPitroda resigns as Chairman of Indian Overseas Congress over racist remarkST - In case of payment received through cheque, it is the date of honouring cheque, which has to be construed as date of receipt of advance payment and since amount was received by appellant on or after appointed date, appellant would not be entitle to benefit of exemption notification: CESTAT86 flights of AI Express cancelled as crew goes on mass sick leaveCus - When undervaluation of goods is alleged solely based on value of contemporaneous imports, all details relating to such imports are to be necessarily established by Revenue: CESTAT
 
Conclusion by CESTAT that claim of Revenue in demanding reversal of CENVAT credit is premature since inputs were damaged in transit is erroneous as it is a fact that on account of damage caused, inputs cannot be used in manufacture of final product - Tribunal directed to hear matter afresh: HC

By TIOL News Service

DHARWAD, JAN 10, 2013: THIS is a Revenue appeal as the order of the CCE, Belgaum dated 16.12.2002 was reversed by the CESTAT vide its order dated 02.12.2005.

The facts are that the respondent availed CENVAT credit on imported capital goods. It is the case of the Revenue that the credit availed in respect of the goods damaged during transit is not in order since the respondents claimed the money from the Insurance Company. On the ground that the inputs were not at all used in the manufacture of final product a demand was raised to recover Rs.46,56,143/- for the period from January 1997 to November 2000. The case was adjudicated by confirming the demand and a penalty of Rs.8,43,509/- was also imposed u/s 11AC of the CEA, 1944 and a penalty of Rs.50,000/- u/r 173Q of CER, 1944.

The CESTAT had allowed the appeal on the ground that even though the goods are damaged such goods were still in the factory and it cannot be concluded that the damaged goods cannot be repaired and the possibility of using the inputs for manufacturing the final product cannot be ruled out. Holding that the claim made by the Revenue was premature, the Bench set aside the order and allowed the appeal.

This order is called in question by the Revenue in its appeal before the High Court.

The High Court observed -

“9. Admittedly, the claim is in regard to the period from January 1997 to November 2000. The Tribunal has disposed of the appeal on 05.12.2005. The contention of the respondent that the goods were damaged during transit and as a result of which the inputs could not be used for manufacturing the final products. If it is so, the Tribunal did not consider the vital aspect of the matter on account of the damaged causes to the inputs, it cannot be used for final product and when the respondent has claimed the insurance, we are at a loss to understand how the claim of the appellant can be considered as premature.

10. Be that as it may, when the demand is in respect of the period from January 1997 to November 2000, when the appeal is disposed of in the year 2005, at least the Tribunal was required to examine, whether the respondent has used inputs for the manufacture of final products and duty has been paid by the respondent to the appellant and without ascertaining this factual aspect, the Tribunal has erroneously passed an order.”

Holding so, the High Court directed the Tribunal to reconsider the matter afresh and allowed the Revenue appeal.

(See 2013-TIOL-21-HC-KAR-CX)


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