SIGN IN SUBSCRIBE

News Update

Cus - When there is nothing on record to show that appellant had connived with other three persons to import AA batteries under the guise of declaring goods as Calcium Carbonate, penalty imposed on appellant are set aside: HCCongress fields Rahul Gandhi from Rae Bareli and Kishori Lal Sharma from AmethiCus - The penalty imposed on assessee was set aside by Tribunal against which revenue is in appeal is far below the threshold limit fixed under Notification issued by CBDT, thus on the ground of monetary policy, revenue cannot proceed with this appeal: HCGST -Since both the SCNs and orders pertain to same tax period raising identical demand by two different officers of same jurisdiction, proceedings on SCNs are clubbed and shall be re-adjudicated by one proper officer: HCFormer Jharkhand HC Chief Justice, Justice Sanjaya Kumar Mishra appointed as President of GST TribunalSale of building constructed on leasehold land - GST implicationI-T - If assessee is not charging VAT paid on purchase of goods & services to its P&L account i.e., not claiming it as expenditure, there is no requirement to treat refund of such VAT as income: ITATBengal Governor restricts entry of State FM and local police into Raj BhawanI-T - Interest received u/s 28 of Land Acquisition Act 1894 awarded by Court is capital receipt being integral part of enhanced compensation and is exempt u/s 10(37): ITATCops flatten camps of protesting students at Columbia UnivI-T - No additions are permitted on account of bogus purchases, if evidence submitted on purchase going into export and further details provided of sellers remaining uncontroverted: ITATTurkey stops all trades with Israel over GazaI-T- Provisions of Section 56(2)(vii)(a) cannot be invoked, where a necessary condition of the money received without consideration by assessee, has not been fulfilled: ITATGirl students advised by Pak college to keep away from political eventsI-T- As per settled position in law, cooperative housing society can claim deduction u/s 80P, if interest is earned on deposit of own funds in nationalised banks: ITATApple reports lower revenue despite good start of the yearI-T- Since difference in valuation is minor, considering specific exclusion provision benefit is granted to assessee : ITATHome-grown tech of thermal camera transferred to IndustryI-T - Presumption u/s 292C would apply only to person proceeded u/s 153A and not for assessee u/s 153C: ITATECI asks parties to cease registering voters for beneficiary-oriented schemes under guise of surveys
 
CX -Tanker is not bulk pack, therefore, activity of unloading edible oil and converting into retail pack and labeling is not manufacture: CESTAT

By TIOL News Service

MUMBAI, FEB 17, 2017: THE case of the Department is that the activity of conversion of edible oil from tanker to retail pack and labeling amounts to manufacture u/s 2(f) of CEA, 1944 and accordingly, the repacked refined edible oil is liable to duty.

In appeal before the CESTAT, the appellant submitted that the issue is no more in dispute as in the appellant's own case decided by the Tribunal vide Order No. A/90742/16/EB dated 01.09.2016, it has been held that repacking of RBDP almolein Oil received in tanker in bulk and repacking them into smaller packs does not amount to manufacture. Reliance is also placed on the decisions in Anwar Oils - 2015-TIOL-2837-CESTAT-MUM, Amritlal Chemaux Ltd. - 2015-TIOL-130-SC-CX, Ammonia Supply Co. - 2011-TIOL-1400-CESTAT-MUM, Ruchi Health Foods Ltd. - 2006-TIOL-1948-CESTAT-MAD.

The AR submitted that the demand of duty has been correctly raised and confirmed in view of Chapter Note 4 to Chapter 15 of the CETA, 1985, which reads -

"4. In relation to products of sub-heading Nos. 1502.00, 1503.00, 1504.00 and 1508.90, labeling or relabeling of containers and packing from bulk packs to retails packs or the adoption of any other treatment to render the product marketable to consumer, shall amount to manufacture."

On the Chapter note referred by the AR, the Bench observed -

+ From the chapter note, it is seen that if the goods are repacked from bulk pack to retail packs and also labeled then the activity shall amount to manufacture.

+ In the facts of the present case, the edible oil received in the tanker was unloaded and then converted into retail pack and labeled. As per the judgments relied upon by the appellant, it has been consistently held that the conversion of the product from tanker to retail pack is not conversion of bulk packs to retail packs because the tanker in which goods are received is not bulk pack, therefore, one limb of the Chapter Note that packing from bulk pack to retail pack does not satisfy.

+ Though there is an activity of labeling but as per the Chapter Note 4 prevailing at the relevant time, the activity of repacking from bulk pack to retail pack and also labeling, both should be carried out in order to hold manufacture under Note 4 to the Chapter 15.

+ There is no activity of repacking from bulk packs to retail packs and only labeling alone is carried out, therefore, the activity does not amount to manufacture.

The impugned order was set aside and the appeals were allowed.

In passing: Interestingly, in the matter of the stay application filed by the appellant, the Bench had ordered a pre-deposit of Rs.1 lakh. See - 2006-TIOL-658-CESTAT-MUM

(See 2017-TIOL-499-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