The issue whether the time-limit prescribed under Section 11B in respect of claim for refund of CENVAT credit under Rule 5 is applicable has been considered by the Tribunal in the case of Swagat Synthetics Ltd. v. CCE 2007 (220) ELT 949 (Trib. – Ahd.) and it was held that credit lying in RG23A account accumulated arising out of export is akin to credit in the PLA and the time-limit shall not apply.
From a perusal of Rule 8 of the Cenvat Credit Rules, 2002 , it will be seen that the same is applicable in three circumstances – (1) when the manufacturer of the final products shifts his factory to another site, (2) the factory is transferred from the existing owner to the another person on account of change of ownership, and (3) the factory is transferred on account of merger, amalgamation, lease or transfer of the factory to a joint venture with specific provision for transfer of liabilities of such factory.
The demand has been issued based on figures taken from income tax returns where undisputedly the incomes were shown on accrual basis and not on the basis of realization of amounts. The learned advocate pointed out certain amounts were not received by the appellant company from their clients due to disputes. He also submitted that service tax rate adopted in the show-cause notice for certain period was erroneous and same was not the rate prevalent on the dates when service was rendered.
Visa facilitators, merely facilitate the procurement of visa and directly assist individuals who intend to travel abroad, to complete the immigration formalities. Visa facilitators collect certain statutory charges like visa fee, certification fee, attestation fee, emigration fee, etc. from the visa applicant, which are remitted to the respective authorities, and in addition collect service charges for themselves as remuneration for the assistance provided by them to obtain the visa.
In this case of specific rate of duty, prima facie, the ‘ place of removal’ would be the ‘ place of removal’ for the purpose of Rule 4 of Central Excise Rules, i.e. the places on removal from where the duty is liable to be paid, which in this case, is the factory gate of Sonadih factory, as the duty on clinker becomes payable at the time of removal from Sonadih factory.
Appellant have already paid service tax from their Modvat credit, the deposit of the service tax collected from the buyers would amount to double payment. It may be noted that the proceedings are for confirmation of demand in terms of section 73A of the Finance Act which relates to the tax collected by an assessee from the buyers, which is not required to be collected.
As regards benefit of service tax paid for shifting of household goods of employees, as fairly submitted by the learned counsel for the assessee, the issue is covered against them by the decision of this Tribunal cited above and accordingly the demand for service tax is upheld.
Obtaining export incentives is directly relatable to manufacture. Manufacturer while manufacturing goods for export and for working out the cost takes into account the export incentives. Export incentives play a very big role in the manufacture and export of goods. This being the position, service tax incurred in respect of services for obtaining export incentives can be definitely related to manufacturing activity and therefore the decision of the learned Commissioner holding that respondent is eligible for the input service tax credit is to be sustained.
Issue: Whether there is need for one to one co-relation of CENVAT credit availed on input services towards payment of output services? Facts: The appellants are manufacturer of transmission towers and also providing services of erection, commissioning & installation, management, maintenance or repair, testing, inspection of these towers etc. for their activity of manufacturing and providing the above services, the appellants availed CENVAT credit on inputs, capital goods and input services.
Question whether the place where goods are stored after clearance from the factory on payment of duty can be considered as place of removal for the purpose of Rule 2(l) of Cenvat Credit Rules, 2004 is no longer res integra because of the clarification issued by the CBEC in the matter.
