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. Sigma Electric Manufacturing Corporation P. Ltd. (formerly known as Semco Electric P. Ltd.) Versus Commissioner of Central Excise, Pune-I

Dismissal of refund claim - refund of service tax paid on the said input services used for manufacture and export of final products - denial of cenvat credit - Held that:- The definition of input service as contained in rule 2(l) very much covers all the input services on which Cenvat Credit is claimed and all the services are directly or indirectly related to business. It is a fact that the appellant are 100% EOU. They received the input service from various services providers and those service .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ords, the object of the government is to export the goods and services and not the taxes. If the refund of service tax paid on input services is not allowed to the appellant then the said taxes would have to be built in the cost of the final products and thus it would lead to export of taxes which are against the policy of the government. - Decided in favour of assessee - Appeal No. E/1345-1346/2010- Mum - A/85726-85727/16/SMB - Dated:- 11-2-2016 - Hon ble Mr. S.S. Garg, Member (Judicial) For 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

oducts manufactured by the appellant are entirely cleared for export. They manufacture excisable goods electrical wires, accessories of aluminium, zinc and copper alloys. The entire production is exported out of India except for waste and scrap arising during the process of manufacture which is cleared in DTA on payment of Central Excise duty. However, the quantum of the said sale is very small and therefore credit of service tax on input services remain unutilised and got accumulated. Thereafte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inter alia, on the ground that the services on which credit has been taken do not qualify as input service in terms of Rule 2(l) of Cenvat Credit Rules, 2004. Both the aforesaid Show Cause Notices were adjudicated by the Assistant Commissioner of Central Excise, Pune V Division. The details of the Order passed by the Assistant Commissioner are given in the table below:- Unit No. Order-in-Original No. & Date Amount of Refund sanctioned (Rs.) Credit inadmissible for Refund (Rs.) I P-I/Divn.V/ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

A) 721/- 160/- 7 BAS (Carpentry) - 541/- 8 GTA (double) - 173/- Total 2,46,739/- 1,10,439/- 4. The appellants filed appeals against the aforesaid Orders-in-Original, to the extent it rejected the refund of credit of ₹ 2,46,739/- and ₹ 1,10,439/-. The Commissioner (Appeals), Central Excise, Pune I passed a common Order-in-Appeal dated 26.4.2010 rejecting the appeals filed by appellants. Hence, the present appeals (Appeal No. E/1345/2010 Unit I & Appeal No. E/1346/2010 Unit II). 5. .....

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 government does not have power to include the activities in relation to the business within the scope of input services. Further, the Commissioner has held that Rule 2 of CENVAT Credit Rules, 2004 cannot go beyond the rule making power laid down in Section 37 of Central Excise Act, 1944. Ld. Counsel submitted that the Commissioner (Appeals) is incorrect in holding that the Rule 2(l) of CENVAT Credit Rules, 2004 is beyond the scope and power provided to the central government to frame rul .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sioner and therefore, the ld. Commissioner (Appeals) wrongly assumed the power of High Court or Supreme Court to decide the vires of provisions of CENVAT Credit Rules, 2004. The ld. Counsel cited the case of Coca Cola India P. Ltd. 2009 (15) STR 657 wherein the Bombay High Court held that any activity which is essential for the smooth functioning of the business would qualify as activity relating to business and thus, an input service . He further submitted that in the present appeals, the appel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ived the services of Chartered Accountant in order to assist them in the acquisition of the Jaipur unit. It is therefore submitted that Chartered Accountant service is very much essential for the business of the appellants and is an input service . In this regard, he relied on the following decisions:- i) CCE Vs Hindustan Coca Cola Beverages Ltd. 2011 (23) STR 268 (T) ii) CCE Vs Andhra Pradesh Paper Mills Ltd. 2011 (22) STR 126 (T) 7. Secondly, with regard to insurance premium, wherein he has ta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

me legal entity. Therefore, denial of credit in respect of insurance premium pertaining to Unit II and Jaipur Unit is not tenable. In any case, it is not the case of the department that credit of the same amount on the basis of the same insurance bills has been taken by the other Units also apart from Unit 1. Further, it is an undisputed fact that Unit I is the Head Office having registration as Input Service Distributor (ISD). It is also not in dispute that the payment of insurance premium has .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

High Court in CCE Vs Ecof Industries Pvt. Ltd. 2011 (271) ELT 58 (Kar.) 8. The next service on which the credit has been denied pertains to CHA service relating to both the units. The ld. Counsel for the appellant submitted that they engaged CHA for clearance of their import shipment. The CHA also engaged other service providers on behalf of the appellants. Accordingly, the CHA charged the appellants for services provided by him as well as services provided by other service providers. The CHA ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rvices provided by CHA is not an input service as per the impugned order. The aforesaid finding of the Commissioner (Appeals) to deny the input service credit is perverse because it is not in dispute that the appellants have engaged the CHA for clearance of import shipment, which in turn is used for manufacture of final products cleared for export. It is also not in dispute that the appellants have paid service tax on the services received from CHA as well as the services provided by other servi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ions:- i) Amar International Vs CST 2015 (37) STR 810 (T) ii) Devesh Agriexim Pvt Ltd Vs CST 2014 (36) STR 1116 (T) iii) Chandra Engineers Vs CCE 2013 (30) STR 699 (T) 9. On the other hand, ld. AR reiterates the findings of the Commissioner and submitted that the services on which the Cenvat Credit has been denied is not in or in relation to the manufacture of the final product and clearance of final product from the place of removal. He further submitted that the said input services did not fal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

manufacture whether directly or indirectly of the final product and clearance of final product from the place of removal. The main contention of the DR in this case is that these services are not covered within the definition of Rule 2(l) of CENVAT Credit Rules, 2004. To examine this, the definition of input service under Rule 2(l) is reproduced herein as under:- Rule 2(l)- Input Service means any service, - (i) Used by a provider of output service for providing an output service; or (ii) Used b .....

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 quality control, coaching & training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes,- 12. In this case the lower appellate authority has disallowed the Cenvat Credit on the ground that these services do not fall in the category of input services as stated supra and also the amendment carried out by the central government .....

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     ↓  

Article: SERVICES UNDER REVERSE CHARGE UNDER GST REGIME

Forum: Duty Drawback & Input Credit - under GST

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

Forum: Credit on Repair of Company Car & Its Insurance

Highlight: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017 - Notification

Highlight: Companies (Acceptance of Deposits) Second Amendment Rules, 2017 - Notification

Highlight: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg. - Circular

Highlight: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 - Public Notice

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

Circular: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20

Notification: Companies (Acceptance of Deposits) Second Amendment Rules, 2017

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017

Forum: Trans1 return

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

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

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime

Circular: List of Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

Circular: Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply

Circular: Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports – Regarding.

Circular: Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding

News: RBI Reference Rate for US $

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

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

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

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

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

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

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

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.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

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

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

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

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

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

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – 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