Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

PJ/Case Laws/2011-12/1451

Availability of credit on inputs in work-in-progress and contained in finished goods lying in factory on crossing over SSI exemption under Notification No. 8/2003-CE.

Case: EUREKA CONVEYOR BELTINGS PVT. LTD. Versus COMMISSIONER OF C. EX., JAIPUR
 
Citation: 2011 (272) E.L.T. 285 (Tri. - Del.)
 
Issue:- Availability of credit on inputs in work-in-progress and contained in finished goods lying in factory on crossing over SSI exemption under Notification No. 8/2003-CE.
 
Brief Facts:- Appellant were claiming SSI ex­emption under Notification No. 8/2003-CE. On 9-10-07, appellant informed the Revenue Department that they are going to cross the limit of SSI exemption on 11-10-07. Ac­cordingly, appellant started maintaining statutory records as per Central Excise Rules and claimed the credit on the inputs lying on 11-10-07 in respect of inputs ac­count in process and input containing in finished goods. On physical verification by the officer, it was found that inputs gone into process and finished goods could not be verifiable inputs account in process and input containing in finished goods was denied.
 
The Commissioner had denied the credit to appellant on which they had claimed as inputs have gone in the working process and finished goods lying in their stock at the time of availing exemption under Notification No. 8/2003-CE.
 
Aggrieved by the said order, appellant is before the Tri­bunal.
 
Appellant’s Contention:- Appellant submitted that as per inspection report, the inventory of inputs was prepared such as work in progress and the finished goods were available in their factory. It is not in dispute that as per Rule 3(2) of Cenvat Credit Rules, 2004, the appellant is entitled to claim on the inputs gone in process and inputs containing in finished goods. Merely because the appellant was not maintaining any records utilizing of their inputs credit cannot be denied on the inputs gone in process and inputs containing in finished goods.
 
Respondent’s Contention:- Revenue submitted that in this case the ap­pellant himself has failed to provide the data should such as the inputs showing in the work in progress and inputs showing in the finished goods and this onus is on the appellant which he has failed to discharge. Accordingly the Lower Authority has rightly denied the credit on the inputs containing in work in progress and finished goods.
 
Reasoning of Judgment:- The Tribunal found that as per Rule 3(2) of Cenvat Credit Rules, 2004, the appellant is entitled for credit on the inputs in work in progress and inputs containing in finished goods as on the date the inputs work in progress lying in their stock and on the date of cross of SSI exemption limit. Accordingly, the appellant is entitled for credit on the inputs containing in work in progress and inputs containing in finished goods. The only dispute remains how much of the inputs gone in work in progress and how much inputs containing in the finished goods. For this aspect, the matter needs further examination by the Adjudicating Authority. Hence, the mater is remanded to the Adjudicating Authority to ascertain the quantity of inputs by applying the formula input and output ratio and to ascertain how much the manufacturer is entitled to claim the credit.
 
Decision:- Appeal is allowed by way of remand.

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com