TMI BlogRemission of DutyX X X X Extracts X X X X X X X X Extracts X X X X ..... remit the duty payable on such goods, subject to such conditions as may be imposed by him by order in writing. Procedure for availing remission of duty 1. The manufacturer shall make an application giving proofs of loss like fire report, insurance survey report, police complaint etc. Department should be informed as soon as possible after such loss or damage. 2. Remission of duty will be granted by the competent officer, according to the monetary limits, as follows: - · By Superintendent - if amount of duty is below Rs.10000 · By DC/ AC - if duty is between Rs.10000 to Rs.1 lakh · By Additional/ Joint Commissioner - if duty is between Rs.1 lakh to Rs.5 lakhs · By Commissioner - if duty amount exceeds Rs.5 lakhs · ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted: - · No remission of duty in case of theft is allowed, since the goods are available for consumption elsewhere. Also, it is held that theft is not an unavoidable accident and if owner has not taken proper care, he is liable to pay duty. · Where molasses are said to be deteriorated but than they are sold as waste for other purposes, it cannot be said that the goods are 'unfit for consumption'. In such cases, remission from duty cannot be given. · No remission of duty is granted if goods are destroyed after they are cleared from the factory. · No remission of duty if goods get damaged after removal for export under bond. duty will become payable. Cenvat provision in case of remission of duty is allowed Sub Rule (5C) ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l goods is not to be reversed if duty remission on final product is granted. They said that remission of duty does not mean goods are exempt from duty or chargeable to nil rate of duty, as, it is when final goods are exempt from duty that credit has to be reversed. Conclusion: - However, through the circular no.800/33/2004-CE dated 1-10-2004 issued by CBEC, it was decided that if remission is granted, Cenvat credit on inputs will not be available or the credit availed has to be reversed. They upheld the decision taken in former case. [But in our view, even if remission is granted, Cenvat credit availed should not be reversed as no provision has been made in Cenvat credit rules that if duty on final product is remitted credit of du ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
