Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s Ultratech Cements Ltd And Others Versus Commissioner of Central Excise And Service Tax, Tiruchirapalli And Others

Denial of exemption claim - Captive consumption - Notification No.67/95-CE, dated 16.03.1995 - SEZ clearances - whether the goods supplies to SEZ Developers without payment of duty are to be treated as exempted goods within the meaning of this term as defined in Rule 2(d) of the Cenvat Credit Rules, 2004 and whether in respect of these supplies, the provision of sub-rule (2) and (3) of Rule 6 ibid would be applicable - Held that:- sub-clause (vi) of the proviso to Notification N0.67/95-CE is an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

used in the said notification, it only means ‘final products exempted under the Central Excise Act read with Central Excise Rules or any notification issued there under'. - Appellants had duly followed the procedures set out in the above Rules, and executed bond before the excise authorities and cleared the goods without payment of duty. If the goods are fully exempted, the question of following the procedure under ARE-1 and execution of bond does not arise. Accordingly, we hold that the cem .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ly consumed for manufacture of final products cleared against the international competitive bidding under Notification No.6/2006. - Ratio of Tribunal decision squarely applicable to the present case, the appellants are eligible for the benefit of the exemption under Notification No.67/95. - As final resort demanding duty on the intermediate product is otherwise also hit by Revenue neutrality, as the appellants are otherwise entitled to avail the Cenvat credit of the duty, if any paid on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e intermediate product clinker used in manufacture of cement supplied to SEZ units/developers is clearly revenue neutral as the appellants could have claimed refund or availed Cenvat credit. In this regard, as rightly held by the Tribunal in the case of Reliance (2007 (12) TMI 69 - CESTAT, AHMEDABAD) demand of duty on intermediate products will only increase scriptory work with no benefit to the revenue. - appellants are eligible for exemption under Notification 67/95-CE on clinker captively con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/2009 E/Misc/41280/ 2013and E/00360/2009 E/00588/2009 E/EH/40931/2014 and E/00119/2010 E/00153/2010 E/00155/2010 E/00399/2010 E/00479/2010 E/00505/2010 E/00508/2010 E/00551/2010 E/00226/2011 E/00316/2011 E/00392/2011 E/00449/2011 E/00350/2012 E/00482/2012 E/40269/2013 E/40960/2013 E/42206/2013 E/42284/2013 E/42288/2013 For the Appellants : Mr Raghavan Ramabhadran, Adv., at S.Nos. 1, 2, 09, 16, 18 & 22, Mr R Parthasarathy, Cons., at S.Nos. 3,5, 6, 12 -14, 17, 19-20, Mr S Muthuvenkataraman, Ad .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ial of exemption on clinkers manufactured and captively consumed in the manufacture of cement. 2. The assessees are manufacturers of cement falling under Chapter Heading 2523 29 10 and 2523 29 39. In the course of manufacture of cement the assessees also manufacture Clinker falling under Heading 2523 10 00 which is further used in the same factory captively in the manufacture of cement. The appellants cleared cement to SEZ units/developers without payment of duty. Revenue issued show-cause notic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ning cases, the lower authority has confirmed the demand and on appeal Commissioner (Appeals) upheld the orders and dismissed the appeals except in the case of Revenues appeals at S.No.10,12 & 13, where the Commissioner (Appeals) has allowed assessees appeals and set aside the impugned orders. 3. Heard both sides. The counsel Shri. Raghavan Ramabadran appeared for the appellants at S.Nos.1, 2, 16, 18 & 22 Five appeals of M/s. Ultratech Cements Ltd. He submits that appellants are eligible .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fect from 10.02.2006, the final goods, cement, was cleared to SEZ units by treating as supplies to SEZ as an export without payment of duty. He discussed the Notification No.67/95-CE. As per the main clause of the exemption, the goods specified under table annexed to the notification were exempted when used for manufacture of final products prescribed in the table. The table annexed to the notification covers all chapters both under inputs as well as on the final products other than HSD, LDO and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and not qua dealer/person/transaction. They have cleared the cement without payment of duty to SEZ as per the SEZ Act. Cement is not exempted from payment of duty under Section 5A of the Central Excise Act. Therefore, they are not hit by the proviso to the Notification 67/95-CE. He referred to the Supreme Court judgment in the case of Commissioner of Sales Tax, Jammu & Kashmir & Ors. Vs Pine Chemicals Ltd. & Ors. [1995] 96 STC 355 (SC). 4. He further submits that cements cleared to S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

urn and clearing the goods for export under bond. He further submits that clearance to SEZ is treated as exports and the duty is not required to be paid on the cement cleared to SEZ as it is treated on par with physical exports. He referred to Section 2 (m) and Section 51 of the SEZ Act and mentioned that any supplies by DTA units to SEZ are treated as exports and they are entitled for the benefits like clearance without payment of duty, rebate, drawback and refunds. He further submits that even .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n clause 106 it is mentioned that the word FTZ has been deleted from the Central Excise Act as it has become redundant and substituted with the word SEZ. 5. He submits that even if it is not covered under sub-clause (i) of the proviso, it is also covered under sub-clause (vi) as they have discharged their obligations under Rule 6 of the Cenvat Credit Rules. He submits that Rule 6 casts various obligations on a manufacturer manufacturing both dutiable and exempted goods. Sub-rule (6) of Rule 6 pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

discharging obligations under Rule 6 and hence both Rule 6(6) of Cenvat Credit Rules, 2004 and Rule 6 of Cenvat Credit Rules, 2001 are identical in this respect. He emphasised that the obligation under Rule 6 stands fulfilled once the goods are supplied to SEZ. He also referred to Rule 6 (6) (v) which relates to export under-bond which also stands satisfied. Therefore, the appellants have complied with the requisite procedures under both the sub-clauses of Notification 67/95-CE sub-clause (i) as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e further submits that irrespective of whether the reference to Cenvat Credit Rules, 2001 in Notification 67/95-CE is treated as legislation by way of incorporation or legislation by way of reference the result will be the same as they have fulfilled the obligations under both 2001 Rules and 2004 Rules. He also refers to this Tribunals decision in the case of Rajshree Sugars and Chemicals Ltd. &Ors. Vs Commissioner of Central Excise, Puducherry & Ors. reported in 2014 (11) TMI 919 CESTAT .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er, the very purpose of making export duty-free to the supplies to SEZ is defeated. He also submits that even if the duty is paid on the intermediate product, the issue is revenue neutral as they are eligible for the Cenvat credit of such duty paid on the clinker. Even in case duty is paid on the cement, they are eligible for the rebate. Thus demand of duty on clinker only increases the scriptory work. He relied on the Tribunals decision in the case of Commissioner of Central Excise, Rajkot Vs M .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

; Central Excise, Hyderabad reported in 2013 (292) E.L.T. 412 (Tri.-Bom.). 7. Regarding the demand pertaining to the period prior to the enactment of SEZ Act, final product cement, was exempted under Notification No.58/2003. During this period they have cleared cement to SEZ unit under this notification. He submits that besides all the above submissions, the demand is also hit by limitation. Even if they cleared under Notification No.58/2003, they are eligible to credit of duty paid on clinker u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to both the period prior to the enactment and after the enactment of the SEZ Act. He submits that they are eligible for the benefit under Notification 67/95-CE. For the period prior to enactment even though goods were cleared under Exemption Notification No.58/2003, the goods were supplied to SEZ and no demand on intermediate goods used in the manufacture of final products cleared to SEZ can be made. He relied on the FTP and also the Handbook of Procedures issued under the FTP. He drew our atte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Board has clarified that Rule 19 of Central Excise Rules, 2002 and Rule 13 are similar provisions. He relied on the following decision:- Hindustan Petroleum Corporation Ltd. Vs Collector of Central Excise reported in 1995 (77) E.L.T. 256 (S.C.) 9. As regards the Revenue appeal, he submitted that the lower appellate authority has rightly allowed the exemption. 10. Learned Shri R. Parthasarathy, Consultant appeared for the appellants at S.Nos.4,6,7,16,19,21 & 22 in seven cases and for the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

garh) (ii) CCE & ST Vs Fosroc Chemicals India Pvt. Ltd -2014-TIOL-1609-HC-CH 11. The learned Advocates S/Shri S. Muthuvenkataraman and S. Gokarnesan appeared for the appellants at S.Nos.17 & 23 respectively for M/s. Dalmia Cements Bharat Ltd. Shri S. Gokarnesan submitted written submissions and reiterated the same. He also concurred with the views of other counsels.He further submitted that there should not be any discrimination between the assessees opting to follow the procedure under .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

been procured from outside, no duty would have been payable under Rule 19(2), and therefore demand of duty on clinker manufactured within the factory and used captively will lead to discrimination between the assessees who is opting to follow either Rule 18 or Rule 19 of the Central Excise Rules. He relied on the following decision:- Maneesh Pharmaceuticals P. Ltd. Vs Commissioner of Central Excise, Mumbai reported in 2004 (163) E.L.T.365 (Tri.-Mum.,). He relied on the Boards Circular dated 26. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arat Ltd. respectively and reiterated the written submissions. He concurred with the arguments put forth by other counsels. 14. On the other hand, Shri Rammohan Rao, Joint Commissioner the learned Authorised Representative submitted the written synopsis. The Authorised Representative for the Revenue countered the appellants' arguments. He submits that the background of the present Notification No.67/95 is based on the earlier Notification No.217/86, which allows exemption on the intermediate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

proviso to the notification. He elaborately discussed the provisions of SEZ Act. He drew attention to the Section 26 (1)(c) and Section 51 of SEZ Act and submitted as per the wording to said sections duty of excise on goods brought from DTA units to SEZ is clearly exempted. Therefore, it may not be said that the goods are cleared without payment of duty but it is clearly exempted under SEZ Act. He further submits that there is no definition of exemption under Central Excise Act. Only in Cenvat C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

empted under Section 26(1)(c) of SEZ Act. Relied on the following decision of the Hon'ble High Court of Karnataka and Gujarat, it is submitted by the learned AR that by a fiction such supplies are treated as Exports for the purpose of allowing export benefits:- (i) Shyamaraju & Co. (India) Pvt. Ltd. Vs Union of India reported in 2010 (256) E.L.T.193 (Kar.) (ii) Essar Steel Ltd. Vs Union of India reported in 2010 (249) E.L.T.3 (Guj.) He further submitted that the Hon'ble High Court ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oards Circular dated 19.03.22010 (sic) to state that procedure under Rule 18 and 19 of Central Excise Rules is adopted for supplies to SEZ in order to give effect to Section 26 of the SEZ Act. He drew attention to amendment to explanation to Rule 18 of Central Excise Rules in 2015 Budget. 16. As regards claim of the Appellants regarding clause (vi) under the proviso to the impugned Notification, it is stated by the AR that Notification No.67/95 was amended by Notification No.37/2001, dated 01.06 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appellants cannot say that they complied with Rule 6 of Cenvat Credit Rules, 2001. 17. Regarding the appellants claim that exemption relating to clearance to FTZ also covers clearances to SEZ he submits that SEZ is different from FTZ. SEZ comes into existence by a different enactment. The wording of notification is clear and unambiguous. He relied on the paragraphs 3 and 18 of the following decision:- M/s. Shri Ganesh Jute Mills Ltd. Vs The Commercial Tax Officer & Ors. reported in (1955) 2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ellants relying on the decision of the Tribunal in the case of Surya Roshini Ltd. (supra) is not applicable as Section 26 (1)(c) of SEZ Act was not considered in that case. He further submits that citation M/s. Pine Chemicals Ltd. (supra) relied by the appellants is not applicable on facts and also that the wordings of the impugned Notification are clear. In view of the wording to the provisio to the notification, it applied to all cases whether the exemption is on the goods or on the dealers. H .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

T 6 (S.C.). (ii) Associated Cement Co. Ltd. Vs Commissioner of Central Excise, Chandigarh - 2006 (206) E.L.T.329 (Tri.-Del.). (iii) Punjab Tractors Ltd. Vs Commissioner of Central Excise, Chandigarh reported in 2005 (181) E.L.T.380 (S.C.) (iv) Jaya Yuhshin Ltd. Vs Commissioner of Central Excise, New Delhi reported in 2000 (119) E.L.T.718 (Tribunal LB) and submits finally that Notification NO.67/95-CE is not applicable to the appellants and pleaded that Revenue appeal should be allowed. 19. In hi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

i.e., SEZ Act. He again reiterated that the word exempted goods applies only to exemption qua goods and not applicable to exemption qua person or transaction. He further submits that Section 26 of the SEZ Act cannot be read to deny exemption or to introduce a levy as the SEZ Act is only for granting benefit for promotion of exports. He submits that as per the objectives of SEZ Act, the preamble and Statement of Objects and Reasons set out in the SEZ Act clearly states the very purpose of enactin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on under Notification No.67/95-CE. He said that the Authorised Representative relying on the circular dated 19.3.2010 is only in favour of the appellants and in no way against them. He also submits that as per the General Clauses Act, Cenvat Credit Rules, 2001 mentioned in the Notification No.67/95 should be read a Cenvat Credit Rules, 2004. He also submits that in any case Cenvat Credit Rules, 2001 is not against the assessee. 21. Regarding the Revenues submissions on Surya Roshni (supra) that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

artment, he submits that In Shri Ganesh Jute Mills case, Indian Stores Department was not substituted by Department of Supplies. Department of Supplies was formed by combining some of the functions of these departments and some new functions was created unlike SEZs and therefore reliance on this decision will not help the case of the Revenue. Regarding the departments submission on the Revenue neutrality in the Jay Yuhshin case (supra), he submits that it is in favour of them as the credit in th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nue, the original Adjudicating authority had denied the Exemption Notification and confirmed the duty on clinker whereas the Commissioner (Appeals) has set aside the demand and allowed the benefit of Exemption Notification No.67/95 and the Revenue has come in appeal. On perusal of the impugned orders of assessees appeals, we find that the Adjudicating authority denied the benefit of Notification No.67/95-CE on three counts. 1. The Notification No.67/95-CE did not contain a clause for clearance o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ligible for benefit under Notification No.67/95-CE or not? 2. Whether cement supplied to SEZ are exempted goods or not? 3. Whether sub-clause (vi) in the proviso to the notification referring to Cenvat Credit Rules, 2001 is to be read as applicable to Cenvat Credit Rules, 2001 or Cenvat Credit Rules, 2004? 4. Whether the term FTZ used in the proviso to the Notification 67/95-CE will include SEZ also? 23. Before detailed discussion, it is relevant to reproduce the Notification NO.67/95-CE dated 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mportance Act),] the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts - (i) capital goods as defined in the [CENVAT credit Rules, 2002] manufactured in a factory and used within the factory of production; (ii) goods specified in [column (1)] of the Table hereto annexed (hereinafter referred to as inputs) manufactured in a factory and used within the factory of production in or in relation to manufacture of final products specified in [colum .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

) To a unit in a Software Technology Park, or (v) Under notification No.108/95-Central Excise, dated the 28th August, 1995, or (vi) By a manufacturer of dutiable and exempted final products, after discharging the obligation prescribed in rule of the CENVAT Credit Rules, 2001. TABLE S.No. Description of inputs Description of final products (1) (2) (3) All goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than the light diesel oil, high speed diesel o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lassifiable under 2502 10 is covered under Column 1 of the Table as input and cement classifiable under Chapter Heading 2502 09 is covered under Column 2 of the Table as final product. Therefore, there is no dispute that both inputs and final products are specified in the table of the notification and the appellants manufactured clinker and captively consumed for manufacture of cement and cleared the cement on payment of duty to DTA and without payment of duty to SEZ units/developers. We also fi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

out in SEZ Act and SEZ Rules read with Central Excise Rules. The Revenue contended that goods supplied to SEZ are exempted and demanded duty on the clinkers used in the manufacture of cement which are cleared to SEZ units/developers. We find this very issue has been clearly discussed by the Tribunal Principal Bench in the case of Surya Roshni (supra). Relevant paragraphs are reproduced as under: 5. We have considered that rival submissions. There is no dispute that common Cenvat Credit availed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d be applicable. 6. The term exempted goods as defined in Rule 2(d) in Cenvat Credit Rules means excisable goods which are exempted from the whole of the duty leviable thereon including the goods which are chargeable to nil rate of duty. There is no dispute about the fact that neither the goods, in question, are chargeable to nil rate of duty nor these goods when supplied to SEZ Developers are exempted from payment of duty by virtue of some exemption notification issued under 5A(I) of the Centra .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

his Act shall have effect notwithstanding anything inconsistent therewith contained in any other Law for the time being in force or in any instrument having effect by virtue of any Law other than this Act. In view of the overriding provisions of 51 of SEZ Act, supplies to SEZ as well as to SEZ Developers by a D.T.A. unit would have been treated on exports for the purpose of Cenvat Credit Rules, 2004. Since the supplies to SEZ Developers are export, the same cannot be treated as exempted goods an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f Rule 6 would not be applicable. 24. From the above decision, we find that the issue relates to availment of Cenvat credit, where the appellants have supplied both dutiable and exempted goods. While allowing the appeal, the Tribunal has categorically discussed the meaning of exempted goods defined in Rule 2(d) of Cenvat Credit Rules and held that the goods supplied to the SEZ units/developers are neither chargeable to nilrate of duty nor the goods are exempted from payment of duty by any Exempt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

; in Central Excise Act except Rule 2 (d) of Cenvat Credit Rules. The Tribunals decision in the case of Surya Roshni (supra) discussed above clearly answers the above question. When the words exempted goods used in the said notification, it only means final products exempted under the Central Excise Act read with Central Excise Rules or any notification issued there under'. 25. Revenue contended that Section 26(1) (c) of the SEZ Act clearly exempts the goods supplied by the DTA to SEZ units/ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l product Cement is an excisable commodity falling under Chapter 25 of CETA which are dutiable. There is no exemption of excise duty on cement. Therefore, in view of the Tribunals Principal Bench decision of Surya Roshini case already discussed above, we are of the considered view that the final product cement cleared to SEZ units/developers is not exempted goods under any notification issued under Rule 5A of the Central Excise Act. 26. In this regard, it is pertinent to state that if the Revenu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty. (1) Any excisable goods may be exported without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, as may be approved by the [Principal Commissioner or Commissioner, as the case may be. Any material may be removed(2) without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of goods which are exported, as may be approved by the Principal Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion of bond does not arise. Accordingly, we hold that the cement cleared to SEZ unit/developers are not exempted goods but cleared without payment of duty by following the procedures and conditions stipulated in both SEZ and Rule 19 of CER Rules and the clinkers used captively for manufacture of cement cleared to SEZ is covered under Notification 67/95 from exemption of excise duty. 27.Having discussed the main issue, we now proceed to discuss the second issue whether the supplies to SEZ is tre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s cleared from DTA to SEZ. This circular, summarizes the contents of all previous Boards circulars and considered various provisions of SEZ Act and SEZ Rules and categorically clarified that supply of goods from DTA to SEZ units/ developers constitutes exports. The said circular is reproduced herein as under: CIRCULAR NO 1001/8/2015-CX, Dated: April 28, 2015 Sub: Clarification on rebate of duty on goods cleared from DTA to SEZ - reg. Kind attention is invited to Notifications No. 6/2015-CE (NT) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ection 2 (m) (ii) of the SEZ Act, 2005 defines export to, inter-alia, mean "supplying goods, or providing services, from the Domestic Tariff Area to a Unit or Developer". ii. Section 26 (1) (d) of SEZ Act, 2005 mentions that subject to the provisions of the sub-section (2), every Developer and entrepreneur shall be entitled to drawback or such other benefits as may be admissible from time to time on goods brought or services provided from the Domestic Tariff Area into Special Economic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

SEZ Act mentions that "A Special Economic Zone shall, on and from the appointed day, be deemed to be a territory outside the customs territory of India for the purposes of undertaking the authorized operations". v. Rule 30 (1) of the SEZ Rules, 2006 reads as under- "The Domestic Tariff Area supplier supplying goods to a Unit or Developer shall clear the goods, as in the case of exports, either under bond or as duty paid goods under claim of rebate on the cover of ARE-1 referred to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

territory outside the customs territory of India. It is in line of these provisions that rule 30 (1) of the SEZ rules, 2006 provides that the DTA supplier supplying goods to the SEZ shall clear the goods either under bond or as duty paid goods under claim of rebate on the cover of ARE-1. 4. It was in view of these provisions that the DGEP vide circulars No. 29/2006-customs dated 27/12/2006 and No. 6/2010 dated 19/03/2010 clarified that rebate under rule 18 of the Central Excise Rules, 2002 is ad .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

goods to an SEZ from the DTA will continue to be export and therefore be entitled to the benefit of rebate under rule 18 of CER, 2002 and of refund of accumulated CENVAT credit under rule 5 of CCR, 2004, as the case may be. 28. In view of the specific clarification at para (3) & (4) of the above circular dated 28.04.2015, the Revenue cannot plead that the supplies to SEZ unit is not an export. In view of the above, the Revenue relying on the Essar Steel Ltd. case and Shyamaraju & Co. cas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. The very purpose of SEZ Act is to extend the benefit in order to promote exports. This is clearly set out in the Statement of Object and Reasons laid down in the SEZ Act itself. The objectives of SEZ set out in the Finance Bill is reproduced herein as under:- 1. The Government of India had announced a Special Economic Zone Scheme in April 2000 with a view to provide an internationally competitive environment for exports. The objectives of Special Economic Zones include making available goods a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ious notifications and circulars issued by the concerned Ministries/Departments. The present system, therefore, does not lend enough confidence for investors to commit substantial funds for development of infrastructure and for setting up of the units in the Zones for export of goods and services. In order to give a long term and stable policy framework with minimum regulatory regime and to provide expeditious and single window clearance mechanism, a Central Act for Special Economic Zones has be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lar, dated 28.04.2015 and as per objectives of the SEZ Act, we hold that the goods supplied to SEZ unit/developer constitute as export and no duty can be levied on the clinker used in the manufacture of cement as the finished goods are supplied to SEZ units/developers without payment of duty by following procedures of Rule 19 of Central Excise Rules and Rule 30 of SEZ Rules. 30. In this regard, we find the Tribunal in the case of Thermo Cable (supra) on identical issue held the benefit of Notifi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in a factory and used within the same factory in or in relation to the manufacture of final products. Input must be one of those specified in the first column and the final product must be one of those specified in the second column of the table annexed to the Notification. Admittedly, copper wire is one of the inputs and the power cables manufactured and cleared by the assessee are final products covered by the Notification. However, the Department would like to deny the benefit of this Notifi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

able to nil rate of duty, other than those goods which are cleared, (i) to a unit in a Free Trade Zone, or (ii) to a hundred per cent Export Oriented Undertaking, or (iii) to a unit in an Electronic Hardware Technology Park, or (iv) to a unit in a Software Technology Park, or (v) under notification No. 108/95-Central Excise, dated the 28th August, 1995, or (vi) by a manufacturer of dutiable and exempted final products, after discharging the obligation prescribed in Rule 6 of the CENVAT Credit Ru .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to the benefit of exemption from payment of duty on such inputs in terms of the opening paragraph of the Notification. This right is not hit by the opening portion of the proviso to the Notification as the manufacturer is squarely covered by the exception carved out of the proviso vide clause (vi) under the proviso. The Department, it appears, would like to drive the assessee out of the purview of this exception on the ground that the latter had not discharged the obligation prescribed in Rule .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

otification No. 67/95-C.E. ibid would show that the assessees claim for exemption from payment of duty on copper wire under the Notification was not hit by the opening portion of the proviso to the Notification. The issue discussed by the Tribunal in the above order is similar to the facts of the present case, the only difference is while the goods were supplied under international competitive bidding under clause (vii) in the above case and in the present case, goods are supplied to SEZ units/d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

redit Rules, 2002 and further amended by Cenvat Credit Rules, 2004. Merely for the reason that the Notification No.67/95referring to Cenvat Credit Rules, 2001 and not Cenvat Credit Rules, 2004 cannot be a valid reason to deny the exemption under clause (vi) of the proviso to the notification. Applying Section 8 of the General Clauses Act, any reference to 2001 Rule in Notification 67/95-CE should automatically be read as a reference to 2004 Rules. When the 2001 Rule is amended by Cenvat Credit R .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

regards the last issue, the Revenue contended that the clause (i) of proviso to Notification No. 67/95 provides exception only for clearance to FTZ and not for SEZ. It is contended that the very purpose of the non-inclusion of SEZ in Notification No.67/95 is to make it apply only to FTZ and not to SEZ. We are unable to accept departments the view for the reasons that during the relevant period under dispute there were no FTZ in operation and if the Revenues view is to be taken, no clearance wou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Central Excise Act. The Relevant clause is reproduced as under:- Clause 106 seeks to amend sub-section (1) of section 3 of the Central Excise Act, 1944 with a view to omit the provisions relating to free trade zone which have become redundant due to enactment of the Special Economic Zones Act, 2005. It is also proposed to amend clause (iii) of Explanation 2 of said sub-section so as to substitute the meaning of Special Economic Zonein the manner as is assigned to it in clause (za) of section 2 o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e word FTZ to SEZ. Therefore, we are unable to accept the dept. plea that clause (i) of proviso to the notification No.67/95 is intentionally kept and meant only to FTZ and not SEZ and we hold that the appellants are eligible for the exemption under Notification No.67/95. 34. Having discussed all the points on merits, we also find that as final resort demanding duty on the intermediate product is otherwise also hit by Revenue neutrality, as the appellants are otherwise entitled to avail the Cenv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Forum: GSTR 3B Rectification

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM – Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version