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 →

In Re : Raghav Industries Ltd.

Whether the rebate of duty and duty draw back can be claimed simultaneously? - N/N.68/2011-Cus. (N.T.), dated 20-9-2011 - Held that: - decision in the case of AMRIT PAPER Versus COMMISSIONER OF CENTRAL EXCISE, LUDHIANA [2006 (7) TMI 7 - SUPREME COURT OF INDIA] relied upon where it was held that primacy to a Notification cannot be given over Rules as such interpretation will render statutory provisions in Rules nugatory. - Government holds that the instant rebate claims of duty paid on export .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

plication is filed by M/s. Raghav Industries Ltd., Tiruchengode, against the Order-in-Appeal No. 01/2013, dated 31-1-2013 passed by Commissioner of Central Excise (Appeals), Salem, with respect to Order-in-Original No. 387 to 389/2012(R), dated 29-10-2012 passed by the Assistant Commissioner of Central Excise, Erode-I Division, 2. Brief facts of the case are that the applicant has filed 3 rebate claims for the duty paid on the goods exported. The lower authority had observed that the applic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. 4. Being aggrieved by the impugned order-in-appeal, the applicant has filed this revision application under Section 35EE of Central Excise Act, 1944 before Central Government on the following grounds : 4.1 The crux of issue and short point for consideration in the case on hand is as to whether the applicant are eligible to claim rebate duty as well as duty draw back simultaneously. The basic facts and figures including facts of proper exports of duty paid goods as per the respective .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

duty drawback inasmuch as the drawback has been claimed in respect of Customs duty. 4.2 The instant rebate claims are governed by Notification No. 19/2004-Central Excise (N.T.), date 6-9-2004 wherein, condition and procedure has been prescribed for claiming rebate of duty in terms of Rule 18 of Central Excise Rule, 2002. The said notification nowhere puts any restriction to the effect that rebate of duty paid on exported goods will not be admissible, if exporters have availed drawback of 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

back of duty can be availed when Cenvat facility has been availed but the rates applicable is lower rate. The C.B.E. & C. Circular No. 19/2005-Cus., dated 21-3-2005 has also clarified that the concept of All Industry Rate of duty drawback that the rates are determined taking into account of average duties paid on inputs and in determining rates, the average (weighted average) consumption of imported/indigenous inputs of a representative cross section of exporters is taken into account. The f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ufacture of exported goods has been taken in terms of Rule 18 of Central Excise Rules, 2002. This position is made amply clear in Notification No. 84/2010-Cus. (N.T.), dated 17-9-2010. 5. Personal hearing in this case held on 30-3-2015 and 16-4-2015. Hearing held on 16-4-2015 was attended by Shri M. Kartikeyan, advocate on behalf of the applicant who reiterated the grounds of revision application. During the course of personal hearing, they stated that they will submit written submission 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

uts used in manufacture of grounds which are exported. 5.1 A written submission/counter reply to the Revision Application was also made by the Department vide its letter dated 26-3-2015 (received on 31-3-2015) wherein it was started as under - 5.1.1 The applicant has availed 9.5% drawback which is nothing but total drawback inclusive of all components i.e. Customs, Central Excise & Service tax, the rebate claim filed by them is liable to be rejected. 5.1.2 After issue of new 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

riginal and order-in-appeal. 7. The applicant exported the goods on payment of duty during from their Cenvat credit account. Subsequently, they filed rebate claims. The original authority held that as the applicant availed higher rate of drawback, the benefit of rebate cannot be held admissible, as it will amount to double benefit. Commissioner (Appeals) upheld impugned Order-in-Original. Now, the applicant has filed this Revision Application on grounds mentioned in Para (4) above. 8.  .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Government proceeds to examine the case keeping in mind the various provisions of law relating to drawback as well as rebate of duty paid on export goods. 9. Government first proceeds to decide the issue of admissibility of rebate claims taking into account the harmonious and combined reading of statutory provision relating to rebate as well as duty drawback scheme. Government notes that the term Drawback has been defined in Rule 2(a) of Customs, Central Excise Duties and Service Tax Drawb .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ation, grant rebate of duty paid on such excisable goods or duty paid on materials used in the manufacture or processing of such goods. The provisions of Rule 18 of Central Excise Rules, 2002 are interpreted by Hon ble High Court of Bombay at Nagpur Bench, in the case of CCE, Nagpur v. Indorama Textiles Ltd. [2006 (200) E.L.T. 3 (Bom.)] wherein it was held that rebate provided in Rule 18 of Central Excise Rule, 2002 is only on duty paid on one of the stages i.e. either on excisable goods or on m .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

prising of Custom and Central Excise portion in respect of said exported goods. The drawback is nothing but rebate of duty chargeable on materials used in manufacturing of exported goods and therefore allowing rebate of duty paid on exported goods will amount to allowing both types of rebates of duty at inputs stage as well as finished goods stage which will be contrary to the above said judgment of Hon ble Bombay High Court and provisions of Rule 18 of Central Excise Rules, 2002. In this case, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hich has not been controverted by the applicant by way of any documentary evidences and reliance of the applicant on Circular No. 35/2010, dated 17-9-2010, also does not come to the rescue of the applicant. Reliance is placed upon Notification No. 68/2011-Cus. (N.T.), dated 22-9-2011 by the lower authorities, wherein it has been stipulated that benefit of rebate and higher rate of drawback cannot be availed together, also lent support to the contention of Department. Under such circumstances, al .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

The harmonious and combined reading of statutory provisions of drawback and rebate scheme reveal that double benefit is not permissible as a general rule. However, in this case, the applicant has availed input stage rebate of duty in the form of higher duty drawback comprising of Customs and Central Excise portion, another benefit of rebate of duty paid on exported goods will definitely amount to double benefit. 11. As regards citing of individual interpretations/applicability of abovementi .....

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     ↓  

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