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

M/s BCH Electric Ltd. Versus Commissioner of Central Excise, Faridabad-I

Requirement of reversal of Cenvat credit - finished goods which have been written-off - Rule 3(5B) of the Cenvat Credit Rules, 2004 – Held that:- there is no provision for reversal of cenvat credit on inputs/ components which have been used in the manufacture of final product. In fact, as per Section'3 of the Central Excise Act, 1944, the goods manufactured by an assessee are to be cleared on payment of duty, therefore, reversal of cenvat credit on finished goods does not arise; at the most, 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

written off by the appellant. Further, the appellant has used these inputs and components later on, in the manufacture of final goods, in that circumstances, as per provision of Rule 3 (5B) appellant is entitled to take cenvat credit on these inputs and components. Therefore, appellant is not required to reverse cenvat credit on inputs/ components for which they have made provision in the balance sheet. - Invokation of extended period of limitation – Issuance of subsequent SCN – Held 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

2004 – Held that:- it is found that the appellant had taken cenvat credit correctly on inputs/ components at the time of procurement thereof and there is no allegation in the show cause notice that appellant has wrongly taken cenvat credit. Therefore, the provision of Rule 14 of Cenvat Credit Rules, 2004 are not applicable to the facts of the case. – Decided in favour of appellant with consequential relief - Excise Appeal No. 53007/2015-SM - Final Order No. 83/2016-CHD - Dated:- 9-2-2016 - Ash .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ant has made certain provision for writing of the finished goods on the basis of the actual price of the case in the market. The appellant has also made certain provisions for inputs and components. On the basis of the audit conducted by the department show cause notices dated 06.09.2012 and 19.07.2013 were issued for the period 2010-11 and 2011-12 respectively to direct the appellant to reverse the cenvat credit on inputs and components used in manufacture of the finished goods for which provis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

It is also submitted that the appellant has made provisions for inputs and components but they have not been written-off and these inputs and components have been further used by the appellant in manufacture of the final goods, therefore, as per the proviso to Rule 3(5)(b) of the Cenvat Credit Rules, 2004, the appellant cannot be asked to reverse cenvat credit. Ld. Counsel also submits that during the impugned period, the appellant was in the activity of manufacture as well as trading and in 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

is not invokable. She also relied on the decision of the Tribunal in the case of CCE&ST, Rohtak vs. M/s Park Nonwoven Pvt. Ltd. -2015 (10) TMI 423- CESTAT, New Delhi to say that CBEC Circular No. 907/27/09-CE dated 7.12.2009 is contrary to the judicial pronouncement and Rule 3(5)(b) of the Cenvat Credit Rules, 2004, therefore, impugned order is to be set aside. 3. On the other hand, ld. DR reiterated the findings in the impugned order. 4. Heard the parties and considered the submissions. 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

vat credit on inputs/ components for which provision has been made in the balance sheet but not actually written-off or not? (iv) whether the subsequent show cause notice can be issued by invoking extended of limitation or not? (v) Whether in the facts and circumstances of the case provision of Rule 14 of Cenvat Credit Rules, 2004 are applicable or not? 6. Issue No. (i) Whether as per Rule 3(5B) of the Cenvat Credit Rules, 2004 appellant is required to reverse cenvat credit on finished goods whi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

credit taken in respect of the said input or capital goods: Provided that if the said input or capital goods is subsequently used in the manufacture of final products or the provision of [output services], the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions of these rules]" On going through the said provision, I find that there is no provision for rev .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ture of finished goods which ultimately written-off by the appellant. Therefore, Issue No. (i) is answered in favour of the appellant. Issue No. (ii) Whether the appellant is required to reverse the cenvat credit on the traded goods on which no credit has been taken or not? As no cenvat credit has been taken by the appellant on traded goods, in that circumstances reverse of cenvat credit on those goods does not arise. Therefore Issue No. (ii) is answered in favour of the appellant. Issue No. (ii .....

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 Happening     ↓  

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.

Forum: Input tax credit

Forum: Cess paid instead of SGST

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

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

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.

Forum: GST rates on mobile recharge business

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

Forum: import purchase

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 $

Forum: 3B mistake

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.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

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

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)

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.



|| 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