INDIRECT TAXES

Central Excise & Customs

Vipin Jain

1. Section 11A of Central Excise Act, 1944- Clandestine removal & demand

Show cause notice issued on the presumption that entries, as recorded in private note book maintained by labour contractor, should be taken as the clearance figures of finished products from the factory Such presumption not permissible in the absence of any corroborating reliable and independent evidence.

CCE vs. Lords Chemicals Ltd. 2010(258) ELT 48 (Cal-HC).

2. Rule 14 of Cenvat credit rules.-No Interest if cenvat credit availed and not utilised.

Cenvat credit wrongly availed & Reversal of credit without utilization. In that view, assessee not required to pay interest on wrongly availed credit on its reversal.

CCE vs. M.J.Pharmaceutical Industries Ltd.-2010 (258) E.L.T. 38 (Guj-HC.)

3. Penalty not imposable on employees under Section 112(b) of Customs Act

Penalty on employee No knowledge or reason to believe that goods are liable to confiscation under Section 111 of Customs Act, 1962 - No material on record to suggest the contrary.

Commissioner of Customs vs. Amin Chandrakant Bhailabhai 2010 (258) E.L.T. 36 (Guj. HC.)

4. Section 11A-Recovery of dues GIDC cannot seek to recover Central Excise dues

GIDC is entitled to seek satisfaction of its dues before effecting transfer of immovable property in favour of Petitioners - However GIDC cannot seek to recover dues of Central Excise Department by asking the Petitioners to obtain an NOC from Central Excise Department.

Sureshkumar M. Bhingardia vs. Union of India- 2010 (258) E.L.T. 28 (Guj-HC.)

5. Rule 4(5) of Cenvat Credit Rules, 2004-Principal manufacturer eligible for Cenvat Credit.

Principal manufacturer sending inputs to job worker without reversal of credit thereon Job worker returning them on payment of duty and principal manufacturer taking its credit again HELD : Principal manufacturer was entitled to take the credit and there was no dual benefit to them.

Aries Dyechem Industries vs. Commissioner of Central Excise-2010 (257) E.L.T. 113 (T).

6. Sections 2(g) and 5A of Textile Committee Act, 1963 Cess leviable on Bleaching, Printing & Dyeing

Grey cloth received and subjected to bleaching, printing or dyeing on job work basis Petitioners contending that activity not amounting to manufacture of textiles and textile cess not applicable. Section 2(g) of Textile Committee Act, 1963 includes dye and bleached fibre. Impugned orders affirming demand of textile
cess, sustainable

Rolex Processors Pvt Ltd vs. Textile committee- 2010 (257) E.L.T. 92 (Del. HC.)

7. Section 35 of Central Excise Act Commissioner (Appeals) has no power to condone delay beyond period of 30 days.

Appeal to Commissioner (Appeals) Limitation Power to condone delay beyond 30 days Provisions of Section 5 of Limitation Act, 1963 in applicable to Section 35 of Central Excise Act, 1944

Amchong Tea Estate vs. Union of India- 2010 (257) E.L.T. 3 (S.C.).

8. Rule 26 of Central Excise Rules, 2002-Personal penalty on Managing Director, Director & Project-in-charge.

Personal penalty on Managing Director, Director and Project in-charge cannot be imposed for use of brand name of others by SSI. No evidence of knowledge or intention on part of said persons in relation to evasion by company.

Commissioner of Central Excise vs. Shyam Detergents- 2010 (256) E.L.T. 783 (Tri. Del.)