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INDIRECT TAXES |
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Central Excise & Customs Vipin Jain |
1. Proviso to section 3(1) of Central Excise Act – DTA clearance
Customs duty once determined and education cess on whole of customs duty is added, question of adding education cess again does not arise for the clearance to DTA by Export Oriented Unit.
Sarla Performance Fibres Ltd vs. Commissioner of Central Excise, Vapi- 2010 (253) ELT 203 (T-A’bad).
2. Rule 2(a) & Rule 2(k) – Cenvat Credit Rules, 2004
Cement & steel items used for laying of foundation and for building structure support not covered under inputs even for the period before amendment from 7-7-2009 — Credit not admissible.
Vandana Global Ltd. vs. Commissioner of Central Excise – 2010 (253) ELT 440 (T-LB).
3. Rule 5-Refund under Cenvat Credit Rules, 2004
Refund of Cenvat credit admissible on export of exempted goods.
Commissioner of Central Excise vs. Drish Shoes Ltd. – 2010(254) ELT 417 (HP-HC).
4. Rule 6(3) of Cenvat Credit Rules – Clearance under Served from India Scheme (SFIS), not an exempted clearance
Manufacture and clearance of goods under SFIS at NIL rate of duty would not amount to exempted clearance. Not liable to pay 10% under the cenvat Credit Rule.
Universal Power Transformers Pvt. Ltd. vs. CCE, Bengaluru – 2010-TIOL-985-CESTAT- Bengaluru.
5. Rule 14 of Cenvat Credit Rules – Interest not chargeable if cenvat not utilised
Interest not chargeable when the wrongly availed cenvat credit not utilised.
Indo Shell Mould Ltd. vs. CCE-2010 (253) ELT 799 (T- Chennai).
6. Rule 209A – Penalty under erstwhile Central Excise Act, 1944
Transporters abetting in passing on fake Modvat documents liable to penalty. Transporters had issued blank LR books and thus helped dealers to raise bogus/fake modvatable documents to enable buyers to avail modvat credit.
Commissioner of Central Excise vs. Deepak Roadways – 2010-TIOL-492-HC-P& H.
7. Section 3 – Dutiability of DTA clearance
EOU not liable to pay duty under Excise section 3 on DTA clearance of non-excisable goods.
Commissioner of Central Excise vs. Sesame Foods – 2010(254) ELT 504 (T-Delhi).
8. Section 4A – Assessment under Central Excise Act, 1944
Provisional assessment not applicable to MRP based assessments under section 4A of Central Excise Act 1944.
Kinetic Engg Ltd vs. CCE, Pune-2010 (254)289 (T-Mumbai).
9. Sections 9 & 32E – Prosecution under Central Excise
Prosecution cannot continue when application for settlement pending.
Sanghvi Electronics Pvt. Ltd. vs. State of Maharashtra – 2010 (254) ELT 206 (Bom-HC).
10. Section 28AB – Interest under Customs Act
Bond executed by importer providing for interest for interest @ 24% p.a. Once the notification issued reducing such rate of interest to 15%, the reduced rate of interest would prevail.
Brass Impression vs. Commissioner of Customs – 2010 (253) ELT 793 (T-Delhi).