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 →

Fresenius Kabi Oncology Ltd. Versus Union of India & Others

Revision under Section 35EE of the Central Excise Act - drugs exported by the petitioner in bulk quantities were exempted from duty and the petitioner ought not to have been paid any duty thereon to claim rebate thereof - whether clause (A) or clause (B) under the column of description of excisable goods pertaining to the relevant entry would be applicable in this case? - Held that:- If the goods exported by the petitioner were covered by the description under clause (A) of the relevant entry, 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

could have been regarded as a mistake with a subsequent application for undoing the same. However, as it appears, the payment of the duty was not made in cash, whereas the rebate is payable in cash. The payment was made by using the Cenvat credit built up by the petitioner; which becomes relevant and whether there may have been some mischief afoot, cannot be answered merely on the basis of the adjudication conducted in course of the proceedings under Rule 18 of the said Rules of 2002. - It 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

esent case, the view taken by the appellate and the revisional authorities appear to be eminently justified on the basis of notification no. 4/2006 and there is no occasion for the petitioner to feel aggrieved thereby. - WP 6516 (W) of 2016 - Dated:- 12-4-2016 - Sanjib Banerjee, J. For the Petitioner : Mr. Ravi Raghavan Ms. Satabdi Chatterjee Mr. Tanmoy Chakravarty For the Respondent : Ms. Debjani Ray Mr. S. B. Saraf Mr. K. K. Maiti ORDER The petitioner challenges an order of December 15, 2015 p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

subsequently applied under Rule 18 of the Central Excise Rules, 2002 for rebate of the duty paid. At the lowest level, the petitioner succeeded. The department went up in appeal and the relevant Commissioner reversed the order on the ground that the drugs exported by the petitioner in bulk quantities were exempted from duty and the petitioner ought not to have been paid any duty thereon to claim rebate thereof. It is such order of the appellate authority, which has been affirmed in the revisiona .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ached to obtaining the benefit of reduced duty or exemption. There is no dispute that serial no.47 of the table under notification no.4/2006 is applicable in this case. However, there is considerable disagreement between the petitioner and the department whether clause (A) or clause (B) under the column of description of excisable goods pertaining to the relevant entry would be applicable in this case. It is necessary to extract the table pertaining to the relevant serial number in the present 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

2002) (B) Bulk drugs used in the manufacture of the drugs or medicines at (A) above Nil Nil - 2 The petitioner contends that since the petitioner had a licence to manufacture bulk drugs and the petitioner only deals in bulk drugs, the goods exported by the petitioner were covered under the description of clause (B) pertaining to the relevant entry in the table. The petitioner says that since there was a condition attached to the exemption of duty in such case, the petitioner could not have allo .....

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 description column of notification 4/2006. The petitioner makes a distinction on the basis of definition of bulk drugs appearing in serial no.43 of the same table under the relevant notification. The petitioner says that a drug can be used directly as a medicine or for the purpose that it is meant; whereas a bulk drug may be a concentrate that requires dilution or mixing with some other compound for the purpose of its end use or application. It appears from the order of the appellate authorit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oner in needlessly availing of the Cenvat credit to subsequently seek to encash the same, almost by a subterfuge. The petitioner refers to a Gujarat judgment reported at 2014 (300) ELT 481 where a view was taken that notwithstanding Section 5A(1A) of the said Act, when duty had been paid at the time of export, the exporter was entitled to claim a rebate therefor under Rule 18 of the said Rules. However, the court did not consider in that case whether duty paid by an exporter in a case where duty .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

st limb of Rule 18 would be otiose. The two limbs that Rule 18 of the said Rules straddles are the rebate on the duty that the exporter may have paid and the rebate on account of the duty that the exporter paid in purchasing the raw material going into the making of the finished product. The petitioner has also referred to a judgment reported at 2015 (324) ELT 686 where the Supreme Court considered the effect of the misleading or between the two limbs of Rule 18 of the said Rules. The opinion of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

domestic transaction was involved and not an export transaction. There is an element of latitude that may be allowed to the petitioner if the petitioner can demonstrate that the goods exported by the petitioner were covered by clause (B) of the description in serial no.47 of notification 4/2006. As would be evident from the description of the two categories of goods under the relevant entry, all drugs specified in List 3 or List 4 appended to the notification referred to in the description would .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g issued by the users thereof of such use. In other words, drugs which are already recognized in Lists 3 and 4 have to be regarded as completely exempted from payment of duty and such drugs, merely because they were sold in bulk quantifies, could not be regarded as bulk drugs attracting the description under clause (B) of the same entry. The expression Bulk drugs , in clause (B) under the column of description of goods in the relevant entry of the said notification would mean such drugs as are 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

of the drugs or medicines covered by clause (A), the same would be exempted from duty, subject to the condition that the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 is followed. In the context of the expression as used in the relevant entry in the said notification, bulk drugs cannot be seen to be drugs covered by clause (A) of the description sold in bulk quantities. In such context, bulk drugs would 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

as such or as an ingredient in any formulation. Any bulk drug which features in List 3 or List 4 appended to Notification No. 21/2002-Cus dated 17.03.2002 will be exempted unconditionally. However, any other bulk drug if used further in manufacture of any drugs or medicines listed in List 3 or List 4 is exempted only subject to fulfillment of prescribed condition. There is no doubt that the drugs that the petitioner exported in huge quantities were drugs which were specified in Lists 3 and 4 of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

thereon has been granted absolutely, the manufacturer of such excisable goods shall not pay the duty of excise on such goods. If the goods exported by the petitioner were covered by the description under clause (A) of the relevant entry, such goods were absolutely exempted from any duty of excise leviable thereon. As a consequence, there was no occasion for the petitioner to pay any duty for removing the goods from the petitioner s manufacturing facility for the export thereof. The matter may 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

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

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

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

Forum: Duty Drawback- Urgent

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

Forum: GST Invoice

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.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

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

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

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

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



|| 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