"19 November 2009" Archive

Branded Goods & SSI Exemption

Under Central Excise law a Small Scale Industries (SSI) have been given some benefits in duty payments. However these benefits are not available when the SSI unit is manufacturing goods bearing Brand name or Trade name of another person. It has always been a question of great disputes as to what is the meaning of the Brand name or trade n...

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Posted Under: Excise Duty |

Service tax on foreign commission agent

The foreign agents provide service to the exporters. However the services are provided outside India. They meet the prospective buyer outside India, they promote the products of the exporter outside India. For Service Tax to be leviable and payable, the services must be provided “in India”, except in the state of Jammu & Kashmir. ...

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Posted Under: Excise Duty |

Right to information Act, 2005 and its applicability in Excise & Customs

The right to Information Act, 2005 declares that the purpose of the Act is to “ promote openness, transparency and accountability in administration and in relation to matters connected therewith”. Thus the Act is fundamental in making the administration transparent and accountable. However, the result can be achieved only if public is...

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Posted Under: Excise Duty |

Right to consult an advocate during interrogation

Section 14 of the Central Excise Act and Section 108 of the Customs Act empower officers to summon person, ask questions from persons summoned and record their statement. These statements are legally admissible as evidence in various judicial and quasi-judicial proceeding. Further the persons summoned are legally required to state the tru...

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Posted Under: Excise Duty |

Right of an assessee when summoned

The Supreme Court held in Poolpandi that a person being interrogated under Section 14 of the Central Excise Act or under Section 108 of the Customs Act is not an accused nor can he plead that there is a possibility of being made an accused in future. Hence, he has no right to ask for his advocate presence during enquiry. The whole logic o...

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Posted Under: Excise Duty |

Refund of Duty Deposited During Investigation

The Central Excise law prescribes a time and procedure to pay the duty. When some amount is paid not as per that procedure or at time different from the time of payment of duty, such payment cannot be treated as duty paid under Central Excise. The issue was decided by the Gujrat High Court in Parle International Ltd. V/s VOI [2001 (127) E...

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Posted Under: Excise Duty |

Recovery of Cenvat Credit If the process does not amount to manufacture

It may be noted that rod/bar and wire falls under different heading of CETA. It means that the legislature have treated these two products as two distinct and different products. When the legislative intent of the Parliament is clear about treating these two products differently, it cannot be said that they are same products. The above ...

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Posted Under: Excise Duty |

Rajesh Kumar Sharma V. UOI [2007 (209) ELT 3 (SC)] (Miscarriage of justice)

The petitioner was being prosecuted for an offence under Customs Act for the last 12 years. The value of the offending goods was Rs. Eight lakhs (approx). 20% of the value of goods comes out to be approx 1.6 lakhs. The compounding authority comes to the conclusion that out of 1.6 lakhs and 10 lakhs, 10 lakhs is higher and hence imposed a ...

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Posted Under: Excise Duty |

S. 195 / 201 liability cannot be avoided on ground of non-taxability of recipient

CIT Vs. Samsung Electronics (Karnatka High Court at Bangalore)

The assessee made payments to a foreign company for purchase of ‘shrink-wrapped’/ready-made software without deduction of tax at source u/s 195 (1). The AO held that the payments were chargeable to tax in the hands of the foreign company as “royalty” u/s 9 (1) (vi) and that the assessee was liable u/s 201 for non-deduction of tax ...

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Radhakrishna Synthetics [2007 (214) ELT 213 (Tri.)] (Judicial “License, Quota, Permit Raj")

There was a demand against the company. The duty demand was confirmed against which the assessee filed appeal before the Commissioner (Appeal). In the meantime, the assessee deposited the amount vide debit entry in RG23A part-II. When the appeal was decided in the favour of the assessee, the assessee informed to the department and took cr...

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Posted Under: Excise Duty |