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 →

Nirlon Ltd. Versus Commissioner of Central Excise, Mumbai-V And Vica-Versa

Manufacture - whether the items i.e. impure dowtherm diphyl; old and damaged PTA scrap, wash water - 50% concentration of lactum, old and used sludge oil; old and used all types of oil, spin finish oil and old assorted bearings cleared from the factory premises of the assessee are liable to duty? - Held that:- It is on record that the items on which duty demands are made are arising during the course of manufacture of the final products for the period in question. It is also undisputed that 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

e cannot be said to be distinct products as contended by the learned Departmental Representative. There is nothing on record to indicate that these items, which were sought to be considered as distinct product, were being manufactured in the appellant's factory premises.

Secondly, as find, arising out of the very same audit objection, another show cause notice was issued demanding duty on the used/waste MEG/TEG that arises during the course of manufacture in the factory premises of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of assessee - Appeal Nos. E/1800 & 2059/2010 - Dated:- 29-10-2015 - M V Ravindran, Member (J) For the Appellant : Ms Padmavati Patil, Adv For the Respondent : Shri N N Prabhudesai, Superintendent ( AR ) ORDER Per M V Ravindran When appeal No. E/1800/2010 was called out, it was informed by the learned Departmental Representative that Revenue is also in appeal against the very same impugned order-in-appeal being No. E/2059/2010, therefore, I called for the said appeal from the Registry and on peru .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the first appellate authority has not quantified the demand, interest thereof and penalty on setting aside the order-in-original. 4. The relevant facts which arise for consideration are during the period 2003-04 and 2004-05 the appellant-assessee under commercial invoices were clearing the items such as impure dowtherm diphyl; old and damaged PTA scrap, wash water - 50% concentration of lactum, old and used sludge oil; old and used all types of oil, spin finish oil and old assorted bearings .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gment of the Tribunal in appellant's own case in respect of some other items, dropped the proceedings initiated by the show cause notice. Aggrieved by such an order, Revenue preferred an appeal before the first appellate authority, who has reversed the order-in-original. 5. The learned counsel for the appellant-assessee draw my attention to the show cause notice and the reply filed by them. It is her submission that, in the same audit objection, another waste product which arose during the 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

aste/scrap even if they are marketable, are not liable to duty unless they are manufactured. (i) Grasim Industries ltd. vs. Union of India 2011 (273) ELT 10 (SC) (ii) Commissioner of Central Excise & Customs vs. Dhakad Metals Pvt. Ltd. 2010 (257) ELT 535 (Guj) (iii) Union of India vs DSCL Sugar Ltd. - 2015-TIOL-240-SC-CX 6. The learned Departmental Representative, on the other hand would draw my attention to the annexure to the show cause notice wherein the list of items on which duty liabil .....

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 first appellate authority against the assessee. It is his further submission that he would rely upon the judgment of the Hon'ble apex Court in the case of Bharat Petroleum Corporation Ltd 1995 (77) ELT 790 for the proposition that if distinct products which has arise during the course of manufacture of final products and has commercial identity and is sold from time-to-time, then duty liability arises. 6.1. As regards the appeal filed by the department, he submits that the department'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

are arising during the course of manufacture of the final products for the period in question. It is also undisputed that the assessee-appellant is clearing the products on commercial invoices and gets some consideration for the said items. At the outset, on perusal of the items which are cleared from the factory premises, description as per the annexure to the show cause notices, it may be seen that they are either used, old or damaged wash water, old and used sludge oil and old assorted bearin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed demanding duty on the used/waste MEG/TEG that arises during the course of manufacture in the factory premises of the appellant and the said demand was set aside by the first appellate authority; Revenue's appeal before the Tribunal in appeal No. E/1523/2003, was rejected by an order dated 23/07/2008 (wherein I was one of the Member) holding that these items (used MEG) is not a manufactured product for demand of duty. In the case in hand, undoubtedly there is nothing on record to show 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

xcise duty is a duty levied on manufacture of goods. Unless goods are manufactured in India, they cannot be subjected to payment of excise duty. Simply because a particular item is mentioned in the First Schedule, it cannot become exigible to excise duty. [See Hyderabad Industries Ltd. v. Union of India, (1995) 5 SC 338, Moti Laminates (P) Ltd. v. CCE, (1995) 3 SCC 23, CCE v. Wimco Ltd., (2007) 8 SCC 412]. Therefore, both on authority and on principle, for being excisable to excise duty, goods 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

Section 3 of the Act. The manufacture in terms of Section 2(f) includes any process incidental or ancillary to the completion of the manufactured product. This 'any process' can be a process in manufacture or process in relation to manufacture of the end product, which involves bringing some kind of change to the raw material at various stages by different operations. The process in manufacture must have the effect of bringing change or transformation in the raw material and this should .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

v. Union of India, AIR 1968 SC 922 and in line of other decisions has explained the meaning of the word 'manufacture' thus: "14. The Act charges duty on manufacture of goods. The word 'manufacture' implies a change but every change in the raw material is not manufacture. There must be such a transformation that a new and different article must emerge having a distinctive name, character or use." 8. Again in the case of Commissioner of Central Excise & Customs vs. 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

he process of manufacture admittedly is of zinc sulphate (Agricultural Grade) and it is not even the department's case that the ultimate aim of manufacture was manufacturing the Copper Sludge, but the manufacture was that of zinc sulphate (Agricultural Grade). It is in the process of such manufacture of zinc sulphate (Agricultural Grade) that the waste like Copper Sludge (Agricultural Grade) would arise and therefore the submissions made by learned counsel Mr. Oza on the aspect of manufactur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he Hon'ble Apex Court in the case of DSN Sugar Mills (supra) held that bagasse emerging as residue and waste of sugar because of deeming fiction introduced by explanation to Section 2(e) of Central Excise Act, 1994, is not applicable as such bagasse is not a product manufactured and will not fall under the definition of 'manufacture'. The ratio is in paragraph Nos. 7 to 10 and the same is reproduced. "7. As per the aforesaid explanation, "goods" would now include any 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

r: Section 2(f) - "manufacture" includes any process - (i) incidental or ancillary to be completion of a manufactured product; (ii) which is specified in relation to any goods in the section or Chapter notes of [The First Schedule] to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to [manufacture; or] (iii) which in relation to the goods specified in the Third Schedule, involves packing or repacking of such gods in a unit container or labelling or re-labelling of containe .....

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     ↓  

Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

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

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



|| 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