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 - As lessee had not transferred business to appellant, provision of Rule 10 of CCR, 2004 not complied with - credit rightly denied: CESTAT

By TIOLNews Service

NEW DELHI, OCT 04, 2017: M/s MOUND Trading Co. Pvt. Limited had obtained the premises in question on lease basis and also obtained the capital goods from M/s Parle Products Pvt. Limited on lease basis.

The lessor gave an undertaking that M/s Mound Trading Co. Pvt. Limited is their job worker and they will use the capital goods and will be entitled to take cenvat credit on capital goods and inputs.

As M/s Mound Trading Co. Pvt. Limited did not find it viable to continue, they discontinued their business and surrendered the registration certificate. Since they were a job worker of M/s Parle Products Pvt. Limited, the premises were taken over by M/s Parle Products Pvt. Limited and cenvat credit on capital goodsetc. was availed.

SCN was issued to deny cenvat credit alleging that the appellant had contravened the provisions of Rule 10 of CCR, 2004.

The demand was confirmed and, therefore, the appellant is before the CESTAT.

It is submittedby the appellant that as M/s Mound Trading Co. Pvt. Limited was the lessee, therefore, they are the owner of the goods and appellant were actual user of the goods;that appellant had undertaken all the assets and liabilities of M/s Mound Trading Co. Pvt. Limited , therefore, they have correctly availed cenvat credit.

The AR informed the Bench that M/s Mound Trading Co. Pvt. Limited had surrendered their registration certificate and in these circumstances, the appellant is not entitled to avail cenvat credit.

In the letter, it is mentioned -

"This has reference to our letter dated 18/07/08 wherein we have requested to you that we did not want to carry on our manufacturing activity after 31st July, 2008. In other words we will keep continue our manufacturing activity upto 31st July 2008. Now we would like to inform you that due to some packing material i.e. lying in stock like wrapper that cannot be utilised or sale because of printing of company name on the wrapper. This wrapper cannot be utilised by owner company. It's a legal bounding of P.F.A. so we will utilise this wrapper and will surrender our Registration certificate on date 05/08/08 and we will submit original Registration certificate on our before 05/08/08.

As we know on or after 05/08/08 M/S PARLE BISCUITS PVT. LTD., NEEMRANA want to carryon it's manufacturing activity in the same premises.

If we are to observe any other formality in this regard please advise us. Your guidance is most welcome.

This is for your kind information please."

The Bench extracted the contents of rule 10 of CCR, 2004 and observed -

++ As per the said Rule if a manufacturer shifts his factory to another site, the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture, in that circumstances, cenvat credit can be transferred.

++ As M/s Mound Trading Co. Pvt. Limited has not transferred their business to M/s Parle Biscuits Pvt. Limited , in that circumstances, the provision of Rule 10 of Cenvat Credit Rules, 2004 have not been complied with. Therefore, the appellant is not entitled to avail cenvat credit on work in process, on capital goods and inputs of M/s Mound Trading Co. Pvt. Limited .

Holding that there is no infirmity in the impugned order, the same was upheld and the appeal was dismissed.

(See 2017-TIOL-3580-CESTAT-DEL)


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