SIGN IN SUBSCRIBE

News Update

Govt scraps ban on export of onionFormer Delhi Congress chief Arvinder Singh Lovely joins BJP with three moreUS Nurse convicted of killing 17 patients - 700 yrs of jail-term awardedGST - Payment of pre-deposit through Form GST DRC-03 instead of the prescribed Form APL-01 - Petitioner attributes it to technical glitches - Respondent is the proper authority to decide the question of fact: HC2nd Session of India-Nigeria Joint Trade Committee held in AbujaGST - Since SCN is bereft of any details and suffers from infirmities that go to the root of the cause, SCN is quashed and set aside: HC1717 candidates to contest elections in phase 4 of Lok Sabha ElectionsGST - Once Appellate Authority comes to the conclusion that SCN was issued by an officer who was not competent; reply was also considered by an incompetent authority and the Competent Authority had not applied its independent mind, Appellate Authority could not have assumed original jurisdiction and proceeded further with the matter: HC7th India-Indonesia Joint Defence Cooperation Committee meeting held in New DelhiGST - Neither the Show Cause Notice nor the order spell out the reasons for retrospective cancellation of registration, therefore, the same cannot be sustained: HCMining sector registers record production in FY 2023-24GST - If the proper officer was of the view that the reply is unclear and unsatisfactory, he could have sought further details by providing such opportunity - Having failed to do so, order cannot be sustained - Matter remanded: HCAnother quake of 6.0 magnitude rocks Philippines; No damage reported so farI-T - Initial burden of proof rested on assessee to substantiate his claim of having incurred expenditure on improvement of property: ITATTrade ban: Israel hits back against Turkey with counter-measuresI-T - Agricultural income can be treated by ITO as undisclosed income in absence of any substantial / corroborative material to prove same: ITATCanada arrests three persons in alleged killing of Sikh separatistI-T - Income from sale of property has to be classified & characterised only in manner of computation as per section 45(2): ITATCus - 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 AmethiGST -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 - 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): ITATGirl students advised by Pak college to keep away from political events
 
CX - Reversal of credit subsequently is no ground for denying benefit of notification 30/2004-CE : CESTAT

By TIOL News Service

MUMBAI, AUG 12, 2017: THIS is a Revenue appeal.

It was the case of Revenue that the respondent had availed CENVAT credit on the common inputs which are used for the manufacture of textile and textile articles and accordingly, they are not eligible for the benefit of the notification 30/2004-CE whereas the assessee contended (and which contention was accepted by the Commissioner(A)) that having reversed the CENVAT credit they had satisfied the condition of non-availment and are, therefore, entitled to the exemption. Support was drawn from the apex court decision in Chandrapur Magnet Wires (P) Ltd - 2002-TIOL-41-SC-CX.

As mentioned, Revenue is in appeal before CESTAT and submits that the conditions of the notification No. 30/2004-CE are very clear and the said conditions implied that respondent should not have availed CENVAT credit on the inputs; that the Supreme Court in the case of Eagle Flask Industries Ltd - 2004-TIOL-74-SC-CX; Mahaan Dairies - 2004-TIOL-52-SC-CX have specifically laid down that exemption notification should be strictly construed and conditions thereof should be complied if assessee wishes to avail the benefit of the same.

The respondent submitted that identical issue has been decided in favour of the assessee (in cases of Spentex Industries, Omkar Textile Mills ) holding that once the credit attributable to the inputs used in the goods cleared by availing benefit of Notification No. 30/2004-CE is reversed, the conditions of the notification are met.

The Bench observed –

"6. …, we find that Revenue's appeal is devoid of merits for more than one reason. Firstly, there is no dispute that the respondent had reversed the CENVAT credit attributable to the inputs which are consumed in the manufacture of final goods which are cleared by availing benefit of Notification No. 30/2004-CE. The said notification No. 30/2004-CE only states about non-availment of the CENVAT credit of the duty paid on inputs. Reversal of credit subsequently by the respondent is accepted and such reversal of credit is held as satisfying the conditions of the notification…"

Noting that the case laws cited by the appellant are directly on the issue and binding on the Bench, the Revenue appeal was rejected but not before observing that the case laws cited by the AR were based on totally different facts.

(See 2017-TIOL-2907-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