Indirect Taxes

Central Excise & Customs

VIPIN  JAIN


 

  1. Excisability

    Facts and issue

Applicant questioning very excisability of product obtained by them by slitting wrappers received from AVT with the resultant product returned to customer being slit wrappers which can be removed from gummed papers and used as wrappers for cartons.

Held

Question of dutiability, per se, is what is at issue, which can be raised at any stage irrespective of their earlier mistake and thus would not tantamount to disputing classification of product in question under Central Excise Tariff. Application admissible, Section 32E(1) of CEA, 1944

Authority

Re: Pavitraa Graphics Ltd 2007 (210) ELT 631 (Settl. Comm.)

  1. Valuation – (Central Excise)

Facts and issue

Interest on receivables being inbuilt in price which had not been charged separately, deductible from assessable value. Department having accepted the principles laid down in earlier case cannot be permitted to take a contra stand in subsequent cases.

Authority

CCE vs. Novapan Industries Ltd 2007(209) ELT 161 SC

  1. Manufacture

Facts and issue

Twisting and doubling of cellulosic filament yarn with a blended yarn comprising polyester and viscose, not amounts to manufacture under section 2(f) of Central Excise Act, 1944 and yarn continues to be yarn – Tariff Item 18 of erstwhile Central Excise Tariff.

Authority

CCE vs. Swastik Rayon Processors 2007 (209) ELT 163 SC.

  1. Modvat credit

Facts and issue

Rules 57A and 57E of Central Excise Rules 1944, differential duty paid during the period 21-4-1986 in respect of input received during the year 1986-87 which were utilized between the period 16-8-1987 to 30-12-1987.
 
Rule 57E underwent a change on 11-5-1987. Rule 57E was only procedural, clarificatory and cannot affect substantive right of manufacturer under rule 57A to claim credit of duty paid on inputs subsequent to date of their receipt .

Held

Credit admissible even prior to amendment of Rule 57E on 11-5-1987.

Authority

CCE vs. Home Ashok Leyland Ltd 2007 (79) RLT 442 (SC)

  1. Penalty

Facts and issue

The issue in the present appeal is regarding levy of penalty under Rule 173Q(1)(bbb) of the Central Excise Rules, 1944. The charge against the assessee, who is a registered trader, is that he had wrongly passed on Modvat credit by issuing modvatable invoices in the year 1997 and 1998. Modvat credit claimed by subsequent buyers with regard to additional customs duty leviable under Section 3 of Customs Tariff Act, 1975. When transactions took place, availing of Modvat credit on additional customs duty was not treated as an offence chargeable to penalty. Penalty not imposable, placing reliance on amendment which is effected later on. No substantial question of law arises. Rule 173Q(1)(bbb) of erstwhile Central Excise Rules, 1944. Board Circular No. 472/38/99-CX., dated 21-7-1999.

Held

When transactions in question were not liable to penal action during the relevant period then there is no reason for levying penalty thereon by placing reliance on the amendment which is effected later on.

Authority

CCE, Jalandhar vs. Satish Metal Co. 2007(210) ELT 341 (PH)