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 →

Pan Parag India Ltd Versus Commissioner of Central Excise Bangalore- III

Manufacturing of Pan Masala / gutkha - Seeking abatement as per provisions of PMPM Rules 2008 - for the period when there was no production i.e. from 01.07.2008 to 16.07.2008 - Held that:- the rule says that they have to give intimation at least 7 days prior non-production of goods in their factory. From the facts it is clearly proved that appellants had intimated well in advance to claim the benefit of this Rule and they were entitled to the facility of abatement in respect of non-production fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- Demand of excise duty - Manufacturing gutkha falling under CETA 2403990 - Period of dispute is 1st July 2008 to 16th July 2008 - Appellants took over the present manufacture unit from M/s Jalaram Industries, Bangalore, who surrendered their registration certificate and intimated the Department about their stopping of production work at the closing hours on 15.11.2008 - Held that:- when it is found that the appellants are entitled to the abatement, the demand of ₹ 78,75,000/- confir .....

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 it is the appellants or others, who are in the industry of manufacturing pan masala or other such items. The appellants cannot take the plea of not knowing when it will commence production when others in the same industry are to follow the same rules; the appellants therefore cannot claim any unfair advantage by taking this plea. Here the appellants delayed their payment for July by two days, when the Rule 9 of PMPM Rules 2008 fixes the responsibility of payment for the month of July as on or .....

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 order there can not be imposition of any penalty under Section 11AC read with Rule 17 of PMPM Rules 2008 and penalty therefore, is hereby dropped. - Appeal disposed of - E/22345/2014-DB - Final Order No. 20299/2016 - Dated:- 20-4-2016 - SHRI M.V.RAVINDRAN, JUDICIAL MEMBER AND SHRI ASHOK K. ARYA, TECHNICAL MEMBER For the Appellant : Shri Janaki Raman, Adv For the Respondent : Shri Pakshi Rajan, A.R. ORDER PER : ASHOK K ARYA Both the sides have been heard in detail. 2. The appellants namely M/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

excise duties/service tax liabilities that may arise in respect of assessment of the notified goods to central excise duties when the goods were manufactured and sold by their predecessors namely M/s Jalaram Industries vide their letter dated 26.11.2008. In consequence, the appellant were issued show-cause notice dated 06.07.2009 for recovery of ₹ 78,75,000/- and interest thereon and for imposition of penalty. 2.2 Commissioner, Bangalore-I Commissionerate, by his order dated 09.04.2014 (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

id duty for the production between 17.7.2008 to 31.07.2008 no interest liability can be imposed on them. ii. In any case when the unit was closed on account of various factors which were beyond the control of the Appellants as has been explicitly mentioned and forming part of the records, payment of duty on or before 5th July 2008 for the month of July 2OO8 does not arise as only at much later point of time, it was decided to seek desealing of machine(s) and for the remaining days of the month 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

f. v. In as much as our entitlement to claim abatement of duty covering the period of cessation of work on sealing of machines, there is no question of demand of duty by denying abatement, insisting payment on or before 5th July and imposition of penalty. As regards interest", it is our contention that the ratio of above decision is applicable and nothing could be envisaged on 5th July 2008 for determination of duty and due date cannot be reckoned as 5th July 2008 in the facts and circumsta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pellants being the successor of M/ s Jalaram Industries, who were existing at that point of time, and paid the duty on 17.07.2008. vi) The appellants are not liable for payment of interest for the period of 6.7.2008 to 16.7.2008; which is more so on account of the appellant being successor of M/s Jalaram Industries Ltd. 3. The learned A.R. appearing for the Revenue has reiterated the findings given by Commissioner in his order-in-original dated 09.04.2004 against which the appellants are before .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nit from M/s Jalaram Industries, Bangalore, who surrendered their registration certificate No. ACSPN1108NXM001 and intimated the Department about their stopping of production work at the closing hours on 15.11.2008 vide their letter dated 17.11.2008. 4.2 The appellants namely M/s Pan Parag India Ltd., Bangalore registered themselves with Central Excise Registration No. AAECP3930FXM004 dated 21.11.2008 for the same factory premises and took over all the packing machines, raw material from their 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

elow: a. As to why duty of ₹ 78,75,000/- short paid be not demanded from the noticee appellant under Section 11A of Central Excise Act 1994 read with Rule 9 of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules 2008. b. As to why Interest on duty amount of ₹ 78,75,000/- short paid during July 2008 be not demanded and recovered under Section 11AB of Central Excise Act 1944 read with Rule 9 of Pan Masala Packing Machines (Capacity Determination and Collec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rmed the following: a. Demand of duty of ₹ 78,75,000/- for July 2008 under Section 11A of the Central Excise Act 19494 read with Rule 9 of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules 2008. b. Demand of interest on duty confirmed at (a) above under Section 11AB of the Central Excise Act 1944 read with Rule 9 of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules 2008. c. Demand of interest for delay in payment of duty amoun .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lia stated as below: i. They have given an undertaking dated 21.11.2008 for Central Excise duty liability, if any on the goods which were manufactured and sold by their predecessor namely M/s Jalaram Industries Ltd. will be discharged by them. ii. That after giving the above undertaking, Department issued them show-cause notice dated 06.07.2009 saying that their predecessor namely M/s Jalaram Industries did not satisfy the requirement of Rule 10 of Pan Masala Packing Machines (Capacity Determina .....

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 machines; and further M/s Jalaram Industries, vide letter their dated 02.07.2008 to the Superintendent of Central Excise Range informed about stoppage of production who after verification were convinced about the closure of the Unit on 30.06.2008. This is clearly vouched by verification certificate dated 01.07.2008 concerning 20 packing machines with the following report: At the time of visit there was no production of activity. The assessee explained that due to bad weather i.e. Rain they wer .....

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 factory were sealed with wire and lead seal having inscription 1/78 in the presence of the representative of the assessee. 7. The appellants also submit as follows: As is clear from para 2.4 of show-cause notice, M/s Jalaram Industries vide their letter dated 16.07.2008 requested Central Excise Authorities for unsealing of 10 Nos of packing machines and informed their intention to start activity of manufacture from 17.07.2008 and paid an amount of ₹ 78,75,000/- in Union Bank of India. re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ram lndustries Bangalore did not give the intimation 7 days prior to the commencement of period for which the abatement was sought and hence liable to pay duty of ₹ 1,57,50,000/- determined as above for the entire month without extending any abatement and that in as much as ₹ 78,75,000/- stood paid by them as duty during the month of July 2008, there has been a short payment of duty of ₹ 78,75,000/-. 7.1 In addition, the appellants state that the notice makes the averment as if .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing duty, interest and proposing penalty on a wrong premise by erroneous interpretation of the provisions of PMPM Rules and on a situation in which the appellants were placed as the successor of M/s Jalaram industries, when the duty is not at all liable to be paid for the period in respect of which it has been demanded on account of the position that the predecessors during the relevant period did not do any production for a continuous period of more than a fortnight falling within the month 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

action of sealing all the pouch making machines on 2.7.2008; there is no reason or justification for demanding the duty concerning such of those days of stoppage of production and sealing of machines. 7.3 The appellants submit that the officials of the Bangalore ll Commissionerate simply chose to issue the notice by recourse to erroneous interpretation of the provisions of PMPM Rules as also the object underlying the capacity determination for fixation of duty liability and in doing so merely by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iable for payment; the appellants herein as the successors to M/s. Jalaram industries cannot be legally called upon to pay the same even in terms of the undertaking. 7.4 The appellants further submit that M/s. Jalaram industries vide their letter dated 8/7/2008 had intimated the authorities of their intention to start production activity with effect from 16.07.2008 and requested for seeking release of machines for making certain modifications, that again on 16.7.2008 they had sought unsealing 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

2008; besides he had confirmed demand of interest under Sec. 11AB of the Act read with provisions of Rule 9 of PMPM Rules 2008 and imposed penalty of ₹ 78,75,000/- under Sec. 11AC of the Act read with Rule 17 of PMPM Rules, 2008. 8. The appellants further in their grounds of appeal inter alia plead as under:- i. The Learned Lower Adjudicating Authority has erred in coming to the conclusion about admissibility of abatement of duty though being convinced of the fact that there was a total st .....

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 adjudicating authority in the order-in-original. iii. The learned adjudicating authority ought to have applied his mind that when Notification No. 38/2007-CE dated 19.12.2007 has been subsisting till it was recinded on 16.7.2008 in terms of Notification No. 44/2008, it does not stand to reason or merit to demand duty for the whole month of July 2008 by disregarding the valid claim of the appellant for the whole reason of which the impugned order is liable to be set aside. iv. The Learned Adju .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 1.7.2008 at the time of their visit coupled with intimation dated 1.7.2008 mentioning suspension of work for pronounced reasons leading to sealing of all the pouch making machines by the officials on 2.7.2008 as a precaution, the normal corollary for any reasonable person would derive is that there was total stoppage and cessation of production up to 16.7.2008 as only on 17.7.2008 unsealing of 10 of the pouch making machines were made and under said facts and circumstances there lies no justif .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on activity on 1.7.2008, sealing of all pouch packing machines on 2.7.2008, there cannot be any duty liability visiting the unit during the period when the machines were of non functional nature. vi. The learned Commissioner of Central Excise ought to have considered that when no duty liability had arisen in the matter by way of short payment, there is no question of demand of interest under Sec. 11AB of CE Act, or imposition of penalty under Rule 17 of PMPM Rules. vii. The Commissioner ought to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

T 161 (SC)] 3) Commissioner of Central Excise, Customs & Service Tax Vs WF Ltd [2011(268)ELT 463 (Guj)] 9. The facts of the case along with the submissions of both sides have been carefully considered. From the facts on record and the submissions of both the sides it is undoubtedly clear that the production started in the month of July 2008, i.e. on 17.7.2008 and continued till the last day of the month i.e. 31.07.2008. 9.1 The appellant is asking for abatement as per the provisions of PMPM .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8. In this regard, provisions of Rule 10 of PMPM Rules 2008 are quoted below: RULE 10. Abatement in case of non-production of goods. - In case a factory did not produce the notified goods during any continuous period of fifteen days or more, the duty calculated on a proportionate basis shall be abated in respect of such period provided the manufacturer of such goods files an intimation to this effect with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

goods shall be undertaken and no removal of notified goods shall be effected by the manufacturer. Provided further that when the manufacturer intends to restart his production of notified goods, he shall inform to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, of the date from which he would restart production, whereupon the seal fixed on packing machines would be opened under the physical supervision of Superintendent of Central Ex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

M/s Jalaram Industries) paid duty of ₹ 78,75,000/- for the month of July on 17.07.2008 for the production of 17.07.2008 to 31.07.2008 whereas the department assessed the duty for the month of July as ₹ 1,57,50,000/- without giving any abatement facility, which has been found to be not correct, when the appellants are entitled for the said abatement. 9.2 Regarding the demand of central excise duty for the period of 1st July 2008 to 16th July 2008 amounting to ₹ 78,75,000/- again .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

6. As regards, the dispute for the month of March 2011, in respect of which the duty demand confirmed is ₹ 32,25,805, there is no dispute that the unit was closed from 1st March 2011 to 16th March 2011 and had functioned only from 17.03.2011 to 31.03.2011. The Department does not dispute that the appellant would be eligible for abatement under Rule 10 of the PMPM Rules for the period of closure from 1st March 2011 to 16th March 2011. The only point of dispute is as to whether for claiming .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for the number of days for which the unit were functioning. (emphasis supplied). Therefore, so far as the duty demand of ₹ 32,25,805/- is concerned, the same is prima facie not sustainable. Here we note that the Department in the present case, has refused abatement completely which is not correct, when the facts undoubtedly call for granting abatement to the appellants. Further by this Order we hold that the appellants are clearly entitled to the abatement and regarding the liability of in .....

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 they did not know when they would commence production, they were not in a position to pay duty of Central Excise in advance i.e. by 5th July, which is the last date fixed as per the provisions of Rule 9 of PMPM Rules 2008 read with sub-sections 2 &3 of Section 3A of the Central Excise Act 1944. In this regard, relevant parts of Rule 9 of PMPM Rules 2008, which gives the manner of payment of duty and interest are given below: RULE 9.Manner of payment of duty and interest. - The monthly dut .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

specified by the Central Government vide notification under [section 11AB] of the Act on the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount : Provided also that in case of increase in the number of operating packing machines in the factory during the month on account of addition or installation of packing machines, the differential duty amount, if any, shall be paid by the 5th day of the following month : 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

ntial duty is paid by the 5th day of the following month and in case the amount of duty so recalculated is less than the duty paid for the month, the balance shall be refunded to the manufacturer by the 20th day of the following month : Provided also that if there is revision in the rate of duty, the monthly duty payable shall be recalculated pro-rata on the basis of the total number of days in that month and the number of days remaining in that month counting from the date of such revision and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

les or has manufactured goods in contravention of his declaration regarding the plan or details of the part or section of the factory premises intended to be used by him for manufacture of notified goods of different retail sale prices and the number of machines intended to be used by him in each of such part or section, the rate of duty applicable to goods of highest retail sale price so manufactured by him shall be payable in respect of all the packing machines operated by him for the period 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

f interest for non-payment of dues of Central Excise by the due date, the appellants mainly plead that as they were not knowing when they will commence production, they paid duty for the whole month manufacture when they commenced production, which in this case is 17th July (after making adjustments for the abatement). 10.2.1 Here the pleading by the appellants that they did not know when will they commence production cannot rescue them from the liability of interest for the period of July which .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fair advantage by taking this plea. Here the appellants delayed their payment for July by two days, when the Rule 9 of PMPM Rules 2008 fixes the responsibility of payment for the month of July as on or before 15th July 2008. There is clearly liability for payment of interest on the duty of ₹ 78,75,000/- which was paid after the due date in the month of July 2008. This liability of interest on the said duty of ₹ 78,75,000/- was confirmed by the impugned order at para 14.14.(c) and 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

 

 

 

 

 

  ↓     Latest Happening     ↓  

Forum: Input tax credit

Forum: GST on Notional rent

Forum: GST ON SALES PROMOTION

Forum: 3B mistake

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

Forum: PROCEDURE FOR SHIFTED OF FINISHED GOODS FROM AP KARNATAKA TO UP

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

Forum: Input credit of gst paid on urd

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

Circular: Filing of Special Leave Petition against Orders of Hon'ble High Courts staying Collection of Tax under GST- reg.

Highlight: Exemption u/s 54F - LTCCG - once entire net consideration is invested, the absence of completion certificate cannot be a ground to deny the benefit of deduction.

Highlight: Deduction u/s 10B - initial AY - Mere authorization to enable the Assessee to import material or export produce in the earlier date would not ipso facto tantamount to commencement of substantial activity of ‘manufacture’/’production’.

Circular: Sub:- Procedure to be followed for Import under DEEC/EPCG Scheme- 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