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. Medriech Ltd. Versus The Commissioner of Central Excise & Service Tax (LTU)

CENVAT credit - transfer of CENVAT credit from lessor to the lessee - Rule 10 of CENVAT Credit Rules, 2004 - the appellant is rightly entitled to the CENVAT credit amounting to ₹ 49,08,230/- which was originally permitted to be transferred by the Assistant Commissioner, Yeshwathpur, Bangalore by his letter dated 23.11.2007 and there is no merit in the orders passed by the lower Revenue authorities. The appeal is allowed with consequential benefit, if any, to the appellant. - Decided in fav .....

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 by Additional Commissioner, LTU, Bangalore, whereunder the demand of CENVAT credit of ₹ 49,08,230/- along with interest has been confirmed under the provisions of Rule 14 of CENVAT Credit Rules, 2004 read with Sections 11A and 11AB of Central Excise Act, 1944 and Sections 73 and 75 of Finance Act, 1994; a penalty of ₹ 2,000/- has also been imposed on the appellant under Rule 15(1) of CENVAT Credit Rules, 2004. 2. The appellant has been represented by the learned advocate Shri N. An .....

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 (EOU) . ii. The leased unit viz., BPRL, Bangalore was given permission by Assistant Commissioner, Central Excise, Yeshwathpur Division, Bangalore for transfer of CENVAT credit and service tax credit lying unutilised in their capital goods account and input account (Rs.33,58,940.53 and ₹ 15,49,290/-) to the appellant viz., M/s. Medriech Ltd. under Rule 10 of CENVAT Credit Rules, 2014. The appellant availed the said CENVAT credit in the month of May 2010 and intimated the Department vide .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd in their case, condition of transfer of capital goods and input account has been fulfilled. All the fixed assets lying with the unit were transferred to the lessee on hire basis as per the agreement. The agreement executed between M/s. BPRI and the appellant M/s. Medriech Ltd., dated 22.11.2006 gave detailed list of assets transferred to the lessee as required under the Rule. The liabilities on account of lease have also been transferred to the lessee vide paras 8.4 and 8.5 of Lease Deed. Thu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Court was dismissed in the case of Commissioner vs. Nagarjuna Agrichem Ltd.: 2012 (319) ELT A247 (AP). b. Tera Cables India Pvt. Ltd. vs. CCE: 2010 (258) E.L.T. 111 (Tri.-Ahmd.) - Against this decision of CESTAT, Ahmedabad, Revenue s appeal was dismissed by Hon ble Gujarat High Court in the case of Commissioner vs. Tera Cables India Pvt. Ltd.: 2014 (299) E.L.T. A61 (Guj.). c. GTN Exports Ltd. vs. CCE, Coimbatore: 2009 (240) E.L.T. 53 (Tri.-Chennai). d. Commissioner of Central Excise, Belapur vs. .....

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 Rules requires specific transfer of liabilities which has not been done in this case. As per Circular No.77/1999 Cus. dated 18.11.1999, the CENVAT credit lying unutilised would lapse on conversion of DTA unit into an EOU unit and cannot be utilised after said conversion. 4. All the facts on record and the submissions of both sides have been carefully considered. 5. At the outset, it is little strange that when the department vide Assistant Commissioner, Central Excise, Yeshwanthpur s, le .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sfer of unutilised credit from the lessor unit to the lessee unit, even when initially the lessor unit is a DTA unit and after the execution of the lease agreement, when it is an EOU and lessee is also an EOU. There is no rational and merit in the demand confirmed against the appellant in this case, when Rule 10 of Cenvat Credit Rules, 2004 specifically allows such transfer of Cenvat credit and when there are number of decisions of higher judicial fora in support of such transfer of cenvat credi .....

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 account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the Cenvat credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory. The above Rule grants the manufacturer to utilize the credit which was lying in the lessor s factory. The Commissioner (Appeal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ld by the Hon ble High Court of Bombay as reported in 2012-04-LCX-02-05. We also note that based upon the said judgment this Tribunal in the case of Matrix Laboratories Ltd. v. CCE - 2014-TIOL-2090-CESTAT-MUM. = 2015 (316) E.L.T. 168 (Tri.-Mum.) has also taken similar view. In the said judgment this Tribunal has observed as under : - 5.1 We observe that there is no bar for transfer of credit available in the books of accounts on the date of conversion of a unit in DTA into 100% EOU under Rule 10 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re the impugned demands are not sustainable. Thus, the appeal is allowed with consequential relief, if any. 6. In view of the above position, we do not find any merits in the contention of the Revenue. We also note that the Board Circular No. 77/99-Cus. quoted does not elaborate under what provision the unutilised credit will stand lapsed. In any case, the said circular was issued when Rule 100H under old Central Excise Act, 1944 were existing and at that point of time 100% EOU were outside 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

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Notification: Exempt certain supplies to NPCIL.

Notification: Seeks to amend notification No. 12/2017-CT(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-CT(R) to reduce CGST rate on specified supplies of Works Contract Services.

Forum: 3B mistake

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

Forum: Input tax credit

Forum: Cess paid instead of SGST

Forum: Manpower Service provider

Forum: Construction of single unit bungalow

Forum: Duty Drawback & Input Credit - under GST

Article: SIMPLIFIED E-WAY BILL UNDER GST

Article: SERVICES UNDER REVERSE CHARGE UNDER GST REGIME

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

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



|| 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