SIGN IN SUBSCRIBE

News Update

Ghana agrees to activate UPI links in 6 monthsGST - Record does not reflect that any opportunity was given to petitioner to clarify its reply or furnish further documents/details - In such scenario, proper officer could not have formed an opinion - Matter remitted: HCED seizes about 20 kg gold from locker of a cyber scammer in HaryanaGST - Mapping of PAN number with GST number - No fault of petitioner - Respondent authorities directed to activate GST number within two weeks: HCGST - Circular 183/2022 - Petitioner to prove his case that he had received the supply and paid the tax to the supplier/dealer - Matter remitted: HCGST -Petitioner to produce all documents as required under summons -Petitioner to be heard by respondent and a decision to be taken, first on the preliminary issue raised with regard to applicability of CGST/SGST: HCGST - s.73 - Extension of time limit for issuance of order - Notifications 13/2022-CT and 09/2023-CT are not ultra vires s.168A of the Act, 2017: HCSun releases two solar storms - Earth has come in its wayRequisite Checks for Appeals - RespondentInheritance Tax row - A golden opportunity to end 32-years long Policy Paralysis on DTCThe Heat is on: Preserving Earth's Climate in the Face of Global WarmingVAT - Timeline for frefund must be followed mandatorily while recovering dues under Delhi VAT Act: SCIndia, Australia to work closely for collaborative projectsCX - All the information was available to department in 2003 itself, therefore, SCN issued four years after gathering information is not sustainable and is highly barred by limitation: HCPowerful voices of amazing women leaders resonated at UN Hqs75 International visitors from 23 countries arrive to watch world's largest elections unfoldCentre asks States to improve organ donation frequencyCus - Revenue involved in the appeal filed by Commissioner is far below the threshold monetary limit fixed by the CBEC, therefore, department cannot proceed with this appeal - Appeal stands disposed of: HCAdani Port to develop port in PhilippinesUS Nurse convicted of killing 17 patients - 700 yrs of jail-term awarded
 
CENVAT - Rule 6(3)(b) - Eligibility of Credit on inputs used exclusively in exempted goods when 10% amount paid - Finding of fact of CESTAT that inputs are used for both categories - Department not countered fact - Finding of fact cannot be disturbed - Assessee eligible to avail credit: HC

By TIOL News Service

CHENNAI, DEC 09, 2014: IN civil miscellaneous appeal filed by the Revenue, the issue was whether CENVAT Credit can be availed on the inputs used exclusively in the manufacture of goods, which are exempted when assessee had paid 10% under Rule 6(3)(b) the CENVAT Credit Rules, 2004.

Assessee are engaged in the manufacture of gear motor assembly. They supply gear motor for wind mills under exemption and pay duty on clearance to other customers. Department contended that assessee availed CENVAT Credit on the inputs used in the manufacture of exempted goods in violation of Rule 6(1) of the CENVAT Credit Rules, 2004 and demanded duty together with interest and penalty.

High Court held that when the finding of fact of the Tribunal is that the imported inputs were used by the assessee in respect of exempted goods as well as the goods cleared on payment of duty, assessees would be eligible to avail the CENVAT credit.

High Court observed that the case of the assessee falls under clause (b) of sub-rule (3) of Rule 6, which states that the manufacturer should pay an amount equal to ten per cent of the total price and when there is a specific finding by the Tribunal on fact that the inputs had been used by the assessee in respect of exempted goods as well as the goods cleared on payment of duty, the department's plea that components were used exclusively as inputs in the manufacture of exempted goods fails and holds that the assessee are entitled to avail the CENVAT credit.

The High Court further held that on a reading of Rule 6(1) and Rule 6(3), it is clear assessee who had opted not to maintain separate account of inputs in respect of the two categories of clearances, would be entitled to avail the CENVAT credit, if they paid the amount in terms of Rule 6(3)(b) and there can be no other interpretation on the admitted fact.

On the third question as to whether the CESTAT is right in applying the ratio of judgment in the case of Hetero Labs Ltd., v. Commissioner of Central Excise, Hyderabad 2005-TIOL-408-CESTAT-BANG when the said decision has not reached finality, the High Court held that this question of law is totally misconceived. Nevertheless, the High Court observed that the decision rendered by the Tribunal at Delhi in Life Long Appliances Ltd., v. Commissioner of Central Excise, Delhi-III, 2000 (123) ELT 1110 (Tri.Delhi) on an identical issue was tested before the Supreme Court at the instance of Commissioner of Central Excise, New Delhi and the Supreme Court upheld the decision of the Tribunal.

Accordingly, High Court dismissed the appeal filed by the department.

(See 2014-TIOL-2171-HC-MAD-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