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. Lampo Computers Pvt. Ltd., Shri Sunil Kumar Director Versus Commissioner of Central Excise, Bangalore

Manufacture or second sale - The appellant-assessee was engaged in procuring various parts of computers such as CPU, monitor, hard-disk drive, mouse, etc., from different suppliers. These parts were being assembled by the assessee by interconnecting the various components resulting in the emergence of computer systems - whether the process amounts to manufacture and is liable to duty or is only a second sale transaction and is not liable to excise duty? - Held that: - all units of an ADP are .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o manufacture, since the network does not bring into existence goods with a distinct new name, character and use. - Appeal allowed - decided in favor of assessee. - E/876 - 877/2003-DB - Final Order No. 20197 - 20198 / 2017 - Dated:- 6-2-2017 - Shri S. S. Garg, Judicial Member And Shri V. Padmanabhan , Technical Member Mr. M. S. Nagaraja, Advocate T. Rajeswara Sastry & Associates For the appellant Mr. N. Jagadish, AR For the respondent ORDER Per V. Padmanabhan The present appeals are di .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rd-disk drive, mouse, etc., from different suppliers. These parts were being assembled by the assessee by interconnecting the various components resulting in the emergence of computer systems. The department was of the view that assembling the various components of the computer results in emergence of new product i.e. Computers, on which excise duty was liable to be paid. The assessee, on the other hand, argued that they were engaged in procuring various components of computers and supplying 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

Final order dated 12.2.2002 remanded the matter to the adjudicating authority to consider the plea made by the assessee that the principles of natural justice were not complied with since copies of several documents relied upon in the show-cause notice were not supplied to them even after repeated request. The adjudicating authority passed order in the remand proceedings vide impugned order dated 30.6.2003. The assessee challenged the impugned order before the CESTAT. In the previous round of li .....

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 following order. (a) (a) The Order dated 4th May 2005 passed by the CESTAT impugned in the present appeal is set aside and the Appeal Nos. E/876, 877/2003 and E/271/2004 are restored to file. (b) The CESTAT shall consider the appeals on merits in accordance with law as expeditiously as possible, preferably within a period of six months from the date of receipt of this order. (c) The CESTAT while considering the merits of the case shall examine the effect of non-supply of the documents relied .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s arguments, emphasised the following points. i. The appellants have purchased various components of computers like CPU, monitor, keyboard, etc., and have been selling them to their customers. The department has not produced any evidence to the effect that they were engaged in undertaking manufactureof automatic data processing machine. The activity engaged by them is in the form of trading which constitutes second sale for the purposes of sales tax/VAT. ii. The various component parts of comput .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Commissioner has recorded that these documents are also not traceable with the Department. For failure to supply these documents, the demand should not be enforced upon them. iv. On account of non-supply of above documents, the learned advocate contended as follows: * The assessees contention is that they are engaged in the activity of trading. This can be demonstrated only by showing the details of purchase of various components and accessories, computers and further by showing that these have .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

larger period of limitation and demanding duty for the period from 28.11.1996 to 31.5.1998 (the period after the date of visit of the departmental officers). vi. They were under the bona fide belief that the activity undertaken by them were not amounting to manufacture and consequently, the department cannot allege wilful suppression and invoke the larger period of limitation. vii. He also relied upon several case laws to support all the above arguments. In particular, he relied upon the followi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

also been put together and assembled to make them working computer systems. He relied upon the decision of the Hon ble Supreme court in the case of UOI vs. Delhi Cloth and General Mills Co. Ltd.: 1997 (1) ELT (J199) (SC) and argued that the activity of assembling various duty-paid components of computers brings into existence a working computer system under Chapter 8471 as an automatic data processing machine. The activity of assembling the various components of computers has brought into existe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that these documents which have been cited in the show-cause notice but not furnished by the department were originally submitted by the assessee himself. He further referred to the correspondences with the department had with the Deputy Commissioner of Commercial Taxes from which it emerges that purchase documents for the year 1996-97 and 1997-98 were already in possession of the assessee and have been used for filing the commercial tax returns. Accordingly, he submitted that the assessee cann .....

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. Mehta & Co.: 2011-TIOL-17-SC-CS and Neminath Fabrics Pvt. Ltd.: 2010 (256) ELT 369 (Guj.). 6. The allegation made by the Revenue after investigation into the affairs of the assessee is that they have procured various component parts of computer such as CPU, mother board, monitors, hard disk, mouse etc. and assembled them into working computers and supplied the same to various customers. By taking the view that the activity of assembling various components of computer into computer syste .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ere the assembly was done and who carried out the assembly. The assessee has also claimed that they have no factory premises for manufacture of such goods. 6.1 At the outset, we examine the question whether putting together various components of computers and assembling the same into a computer system, same amounts to manufacturer and whether excise duty is required to be paid. The description of Automatic Data Processing (ADP) machine under Chapter 84.71 at the relevant time is reproduced below .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ression automatic data processing machinesmeans:- (i) Digital machines, capable of (1) storing the processing programme or programmes and at least the data immediately necessary for the execution of the program; (2) being freely programmed in accordance with the requirements of the user; (3) performing arithmetical computations specified by the user; and (4) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during 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

mplete system if it meets all of the following conditions: (i) It is of a kind solely or principally used in an automatic data processing system; (ii) It is connectable to the central processing unit either directly or through one or more other units; and (iii) It is able to accept or deliver data in a form (codes or signals) which can be used by the system. (c) Separately presented units of an automatic data processing machine are to be classified in heading 84.71. (d) Printers, keyboards, X-Y .....

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 note that each of the component parts such as CPU, hard disc, monitor etc. would form a separate unit of an ADP machine referred to in Chapter Note 5(b). Each of these units will also be classified under 84.71 and when the various units are connected together to perform the function of ADP machine, it will function in the form of a system which should have all the features of the machines referred to in Note 5(a)(i). Thus, we have the example of a lap top or a notebook computer which will be 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

e background, we examine the question whether any new product come into existence by assembly of various components to form the computer system. We note that all units of an ADP are designed to be interconnected to enable the ADP system to be formed to carry out its function. It cannot be said that the assembly of various units into a working system has brought about any new goods which have a distinct name, character or use different from that of the units of computer system. This has been laid .....

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: 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

Forum: Trans1 return

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Forum: Credit on Repair of Company Car & Its Insurance

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

Forum: Duty Drawback & Input Credit - under GST

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

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.

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

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 $

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



|| 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