Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

M/s Chamunda Engineering Works, Smt. Jasuben Babubhai Mistry, M/s Chamunda Engineering Pvt. Ltd., Shri Babubhai Mistry, M/s Hitech Engineers & Fabricators Versus Commissioner of C. Ex. & Service Tax, Ahmedabad-I

SSI Exemption - Clubbing of clearance value of the proprietaryship firm with the private limited company - imposition of penalty on dummy units - Held that:- On perusal of the list of machineries, we find that these machineries were purchased during the period 1990 to 2001. The learned Advocate fairly submits that these lists were not placed before the Adjudicating authority. It is submitted that these lists were submitted before the Commissioner (Appeals). On a query from the Bench, the learned .....

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 Tribunal, at a belated stage. To sum up, it is evident from the records that there was no manufacturing activity in other units. Hence, the Adjudicating authority rightly clubbed the clearance value of other units with M/s BEW. - Imposition of penalty on the dummy units cannot be sustained. According to the Revenue, the other units are dummy and therefore, imposition of penalties on the dummy units cannot be sustained. However, we find force that Shri Babubhai Mistry, Director of M/s CEPL .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

upees One Lakh only) and ₹ 50,000.00 (Rupees Fifty Thousands only) respectively. The penalty imposed on M/s CEPL and M/s Hitech, M/s BEW are set aside. The Assessee is entitled to pay penalty 25% of the duty alongwith entire amount of duty and interest within 30 days of communication of this order as provided under Section 11AC of Central Excise Act, 1944. The appeals of M/s Hitech, M/s BEW and M/s CEPL are allowed. - Appeal No. E/1188-1193/2008 - Order No. A/10030-10035/2016 - Dated:- 11- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

engaged in the manufacture and sale of Ferrous & Non-ferrous Casting Machinery used in the Sugar Mills, Bio-gas Plants and Paper Mills. There were other firms M/s Hitech Engineers & Fabricators (in short M/s Hitech, Proprietor Shri Umeshbhai Mistry, son of Shri Babubhai Mistry), M/s Bhavani Engineering Works (in short M/s BEW, Proprietor Shri Babubhai Mistry), and M/s Chamunda Engineering Pvt Ltd, a Private Limited Company, incorporated under the Companies Act, 1956 (Smt. Jasuben B. Mis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

there was a common entrance and exit as well as common land, building, plant and machinery, raw material, electricity, telephone, fax, office, office equipments etc. The said officers recorded the statements of Shri Babubhai Mistry and Shri Umeshbhai Mistry on different dates. It has also prepared the Panchnama, dt.07.02.2005. They have also recorded the statements of their employee Shri Mahendrabhai V. Shah and Proprietress Smt. Jasuben B. Mistry. 3. A Show Cause Notice dt.20.06.2007 was issued .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mand of duty of ₹ 22,06,067.00 alongwith interest and imposed penalties of equal amount of duty on the Assessee. It has also imposed penalties of ₹ 2 lakh each as follows:- a) M/s Chamunda Engineering Pvt. Ltd. b) Shri Babubhai Mistry, Director of M/s CEPL and Proprietor of M/s BEW. c) Smt. Jasuben B. Mistry, Proprietor of the Assessee and Director of M/s CEPL. d) M/s Hitech e) M/s BEW. 4. The learned Advocate on behalf of the Appellants submits that the clubbing of clearance value 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

showing their own turnover. He also submits that all the units issued invoices separately and he drew the attention of the Bench to the specimen copies of the invoices. He further submits that there is no evidence of financial flowback between the units and therefore, clubbing of clearance is not permissible. It is submitted that both the authorities below proceeded on the basis that the other units have no machinery. He drew the attention of the Bench to the list of machineries of all the four .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

355 (Tri-Che) v) M/s Sree Andal & Co. Vs CCE Trichy-2003 (154) ELT 448 (Tri-Che) 5. On the other hand, the learned Authorised Representative on behalf of the Revenue submits that as revealed from Panchnama, dt.07.02.005 that there was no machinery physically available in the two units M/s CEPL and M/s BEW. All units were working in the same premises. There were no electricity meters in the name of M/s BEW, M/s CEPL. He further submits that all the units were having common facilities. It is .....

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 on perusal of the records, we find that the main contention of the learned Advocate is that the Assessee and M/s Hitech were registered with Central Excise Department in 1994. On a query from the Bench, the learned Advocate fairly submits that subsequently, they Assessee was availing benefit under SSI exemption and therefore, they surrendered their registration. We find that on 07.02.2005, the Central Excise Officers visited the premises of Plot Nos.79, 80 and 81 of Mahahaxmi Industrial Esta .....

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 of Mahaxmi Industrial Estate, which were being paid by the Assessee. These facts are corroborating with Panchnama dt.07.02.2005. 7. The learned Advocate on behalf of the Appellant submits that the Panchnama was not prepared properly and in a haphazard manner. He also drew the attention of the Bench to the list of machineries of the Assessee, M/s BEW and M/s CEPL. On perusal of the list of machineries, we find that these machineries were purchased during the period 1990 to 2001. The learned Adv .....

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 to the period 1990 to 2001. The Assessee has not given any reasons as to why they have failed to disclose these evidences before the lower authorities and therefore, such evidence cannot be accepted before the Tribunal, at a belated stage. To sum up, it is evident from the records that there was no manufacturing activity in other units. Hence, the Adjudicating authority rightly clubbed the clearance value of other units with M/s BEW. 8. The learned Advocate relied upon the various case laws. I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ons made of mutuality of interest/inter-dependence between the two companies. Records showing that money as loan given by one to the other was repaid alongwith interest, and transactions were done by cheques. In the case of Sree Nirmal Spinners (supra), the Tribunal held that profit and loss account of appellant show payment of conversion charges, lease rent for use of machinery, separate registration for each unit under Income Tax, Sales Tax etc. In the case of Sree Andal & Company (supra), .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

Forum: 3B mistake

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

Forum: GST return filing software online | Easy GST compliance management

Forum: Input credit of gst paid on urd

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Input tax credit

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

Forum: GST on Notional rent

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.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

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.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

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

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

News: Auction for Sale (Re-issue) of Government Stocks

Article: TDS APPLICABILITY ON GOVERNMENT CONTRACTS UNDER GST (Under Section 51 of the CGST Act, 2017)

News: Manmohan takes potshots at note ban, 'hasty' rollout of GST

News: GST on petrol, diesel requires wider discussion: Nitish

Article: WHEN CAN ONE TAKE ITC FOR RCM CASES?

Notification: TDS liability under Section 51 of CGST, 2017 come into force w.e.f. 18-9-2017 - Persons liable to deduct TDS from payment made or credited to the supplier of taxable goods or services specified

Notification: Central Goods and Services Tax (Seventh Amendment) Rules, 2017

Notification: Seeks to extend the last date for filing the return in FORM GSTR-3B for the months of August to December, 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