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M/s Silver Line Plastpack Pvt. Ltd, M/s Rachana Seedsw Industries, Archan Polyfilms Pvt. Ltd., M/s Sunshine Polymers, M/s Ashutosh Multifilms, M/s Rainbow Packaging Pvt. Ltd., M/s Risabh Packaging, M/s Promact Plastics Ltd. & M/s Ketan Jute Bags Pvt. Ltd. Versus Commissioner, Central Excise & Service Tax, Bhavnagar And Commissioner, Central Excise & Service Tax, Bhavnagar Versus Shri Vikram P. Duvani

Import of plastic granules under exemption scheme (Target Plus Scheme) to be used for manufacturing of final products - Goods sent to Job Work – Appellant contends that there is no prohibition to send goods to job worker for manufacture of final goods - Goods sent to job worker under provisions of Notification No.214/86 and were cleared on payment of Central Excise duty – Revenue contends that notification prohibits goods to be transferred or sold thus notification has been violated – Contravent .....

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n of goods and redemption fine are also set aside – Decided in favour of assessee. - Appeal No.C/297,300,301,303-306,308,335,340/2010 - Order No.A/11509-11518/2015 - Dated:- 15-10-2015 - Mr. P.K. Das, Member (Judicial) And Mr. P.M. Saleem, Member (Technical) For the Petitioner : Shri T. Vishwanathan, Shri Jigar Shah, Shri Manish Jain Shri R. Subramanya Advocates And Shri M.A. Patel, Consultant For Respondent: Shri Sameer Chitkara, A.R. ORDER Per: P.M. Saleem The Appellants herein were operat .....

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ication No.214/86-CE, dt.25.03.1986, for further manufacture into plastic films/sheets which were cleared on payment of duty. The Department contended that they had imported the goods free of duty under the scheme and had not utilised the goods, by themselves, but had sent the goods to job workers for manufacturing the final finished goods, which is a violation of the provisions of the notification. 2. Heard both the sides. The learned Advocate for the Appellant submits that as per the provision .....

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He also drew our attention to the Foreign Trade Policy and the written submissions filed. 3. On the other hand, the learned Authorised Representative for the Revenue strongly contested the submissions of the learned Counsel. In addition to reiterating the findings of the Adjudicating authority, he submits that the Customs notification specifically mentions that the goods imported shall not be transferred or sold. His contention is that the Appellants have transferred the imported goods to job w .....

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he Order-in-Original, wherein the Adjudicating authority tried to establish that the transfer of the imported goods takes place at the time of sending the same to the job workers. 4. It is observed from Paras 3.7.1 and 3.7.6 of Foreign Trade Policy (2004-2009) that Target Plus Scheme is an export incentive scheme, wherein those who have achieved a quantum growth in exports, are allowed duty credit which may be used for import of any inputs, capital goods, spares, office equipments, office furnit .....

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Target Plus Scheme In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts goods when imported into India against a duty credit certificate issued under the Target Plus Scheme in accordance with paragraph 3.7 of the Foreign Trade Policy (hereinafter referred to as the said certificate) from, - (a) the whole of the duty of customs leviabl .....

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exports made during the financial year 2003-04; (2) that the said certificate has been issued to a Star Export House by the licensing authority and it is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption : Provided that exemption from duty shall not be admissible if there is insufficient credit in the said certificate for debiting the duties leviable on the goods, but for this exemption; (3) that the said .....

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The proviso to Condition 3 is applicable to the merchant exporter. It is not applicable to the Appellant who is a manufacturer exporter. Therefore, the Condition 3 as is relevant to the Appellant is that the imported goods shall not be transferred or sold . It is observed that the Appellants have sent the imported goods to their job workers for manufacture of the final products, and the title and the ownership of the goods remained with them during the said dispatch of the imported goods to the .....

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orker(s) for the purpose of conversion of permitted imports into possible resultant products, when imports are made for own use . Note: The beneficiary status holder (Manufacturer Exporter or Merchant Exporter) can utilize full value of credit scrip issued to him for his own use . Beneficiary may decide to make any possible resultant product for utilizing the imports permitted under the Scheme, when imported for own use . Job-Workers can be used for conversion of imports permitted under the sche .....

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e Policy (RE2004) are with Actual User Condition and non-transferable (except to listed supporting manufacturers). The said Annexure mentions about listing of job workers for conversion of permitted imports into possible resultant products, when imports are made for own use . It further states that the job workers can be used for conversion of imports permitted under the scheme into possible resultant products. Therefore, it is clear that own use also means use by utilizing the facilities of job .....

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Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

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Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

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Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

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TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

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TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

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Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC



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