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 O.K. Play (India) Ltd. Versus CCE, Delhi

Manufacture - conversion of granules into moulding powder - penalty - Held that: - the question of whether the powdering of Low Density Polyethylene (LDPE) and High Density Polyethylene (HDPE) granules into moulding powder would amount to manufacture went for determination right up to before the Hon’ble Supreme Court when it was determined by the Hon’ble Apex Court that as a consequence of new definition of manufacture in terms of Section 2(f), the activity which otherwise do not amount to manuf .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inst the impugned order. 2. The brief facts of the case are that the appellants are registered with the Central Excise Department for manufacture of plastic toys, storage tanks and other items for use by children. On 24.04.1997, their factory was visited by Central Excise Officers and it was noticed that they had installed injection, moulding, extruding and pulverizing machines operated with electric power to handle plastic inputs and produce moulded shapes for manufacturing toys, water storage .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

constituted manufacture . The adjudicating authority confirmed the show cause notice under Rule 9 read with Section 11A of the Central Excise Act, 1944. By the aforesaid orders, the Commissioner upheld the invocation of extended period of limitation under show cause notice dt. 04.11.1997. The appellants went in appeal before CEGAT against the said order and the Hon ble Tribunal vide their Final order No. 322-323/2000/C DT. 18.07.2000 confirmed that the activity relating to conversion of granule .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Supreme Court ordered as follow:- For the aforesaid reasons, we hold that the process of pulverization under which granules are converted into moulding powder constitutes manufacture ; that the moulding powder produced by the aforestated process was marketable; that the show cause notice dt. 04.11.1997 was beyond limitation; that the Commissioner (Adjudication) will decide the question of valuation under rule 6(b)(ii) of the Central Excise (Valuation ) Rules, 1975, in the light of the Circulars .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gned order wherein he has confirmed the duty demand of ₹ 4,37,276/- and imposed a penalty of ₹ 4,37,276/- under Rule 173-Q of the Central Excise Rules, 1944. Aggrieved from the imposition of penalty, the appellants have filed this appeal. The appellants are not contesting the liability of the duty alongwith interest. Their only prayer is to set aside the penalty. 3. The Ld. Advocate for the appellants submits that the direction of Hon ble Supreme Court in its remand order was only 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

the show cause notice, which is based on the same set of facts and everything was in the knowledge of the Department. There was no intention to evade the duty. Ld. Advocate also submitted that moulding powder was not accounted for in RG-1 register as it was not required to because it is not a finished product. He also relied on the following case laws:- 1. O.K. Play (India) Ltd. Vs. CCE, Delhi-III, Gurgaon 2005 (180) ELT 300 (SC). 2. O.K. Play (India) Ltd. Vs. CCE, Delhi-III, Gurgaon 2004 (171) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

plicable and valuation of the moulding powder were remanded by the Hon ble Supreme Court to be examined by the adjudicating authority. The adjudicating authority has after examining both the issues has also imposed the penalty on the appellants. The appellants first argument is that the adjudicating authority has gone beyond the remand order of the Hon ble Supreme Court. In this regard, I find that if as a consequence of examining the issues remanded by the Hon ble Supreme Court, the question 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

authority is that the appellants have been purchasing moulding powder from outside and availing credit of duty paid on the same and were fully aware that this product was excisable and dutiable but did not take registration and did not file the classification list. In this regard, I find that the question of whether the powdering of Low Density Polyethylene (LDPE) and High Density Polyethylene (HDPE) granules into moulding powder would amount to manufacture went for determination right up to be .....

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: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Notification: All Industry Rates of Duty Drawback Schedule

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

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

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer

Notification: Exempts inter-state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 09/2017-IT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 08/2017-IT(R) to reduce CGST rate on specified supplies of Works Contract Services

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE 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.

News: Tax on fuel more important for a dry state like Gujarat

Highlight: For an ayurvedic medicine to be classified under Chapter 30 has to pass the test whether it is for cure of any disease. If the same is only meant for care, then such product would not fall under medicament.

Highlight: Demand of interest - the period of limitation that applies to a claim for the principal amount should also apply to the claim of interest thereon.

Highlight: Government issues new notifications under CGST, IGST and UTGST to grant fresh exemptions in respect of certain supplies.

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117 of the Central Goods and Services Tax Rules, 2017

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



|| 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