Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

Comments

Print   |    |  Comment

PJ/Case Law /2016-17/3315

Benefit of SSI exemption admissible even if brand name used if the factory is situated in a rural area.

Case:-COMMR. OF C. EX., CUS. & S.T., BELGAUM VERSUS BTM BEVERAGES PVT. LTD.
 
Citation:-  2016 (337) E.L.T. 383 (Tri. - Bang.)

 
Brief Facts:-Being aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. We have heard Shri Mohd. Yusuf, DR appearing for the Revenue. Nobody appeared for the respondent.
The dispute in the present appeal relates to applicability of small scale exemption Notification No. 8/2003-C.E., dated 1-3-2003. The appellants were using the brand name of another person and the lower authorities sought to deny the benefit of the notification in question. However during adjudication appellant took a stand that they are not hit by the bar of the notification inasmuch as their unit is located in rural area in the village of Anchatgeri.
However the original adjudicating authority confirmed the demand on the ground that the village Anchatgeri, where the assessee’s factory is situated has been notified by the Government of Karnataka, Housing and Urban Development vide their Notification dated 4-7-1988, for amalgamation of local planning area of cities of Hubli and Dharwad. From the said notification, the original adjudicating authority concluded that the appellant’s factory has now covered by the urban area, thus not entitled to SSI exemption. As such after granting the benefit of limitation, he confirmed the demand along with interest and imposition of penalty. On appeal Commissioner (Appeals) observed as under :
“I find that the Karnataka Government Notification relied on by the original authority does not specifically change the category of Anchatgeri village from a rural to an urban area. This village has merely been included in the amalgamated local planning area for cities of Hubli and Dharwad. I therefore find that the relied on Notification does not change village Anchatgeri from rural area to urban area and is therefore inadequate for denying SSI exemption to the appellant in terms of definition of rural area in the Notification. In fact the clarificatory correspondence referred to by the original authority refers to this village as area reserved for agriculture. I therefore hold that relied upon Notification does not conclusively changes it into urban area. I also place reliance on Hon’ble Tribunal’s decision in the case of Malabar Regional Co-operative Milk Products Union Limited as reported in 2006 (201) E.L.T. 21 (Tri.-Bang.) for coming to this conclusion.

Appellants Contention:-The appellants have produced Tahasildar’s certificate dated 15-4-2005 in support of their claim. Tahasildar is a custodian of land revenue record, and there being no express and clear change of status of Anchatgeri from rural to urban in the above referred Notification, a certificate certifying the rural status of the village should be accepted.”The Revenue in their memo of appeal has referred to the Explanation 5(H) from the Notification No. 8/2003, dated 1-3-2003 which defines “rural area” as the area comprised in a village as defined in the land revenue records, excluding the area under any municipal committee, municipal corporation, town area committee and any area which may be notified as an urban area by the Central Government. Admittedly the village in question has not been notified as an urban area either by the Central Government or a State Government. The Revenue is relying on only upon an amalgamation scheme of local planning area for the city of Hubli and Dharwad where the village in question may be included.
 
Respondents Contention:-   Nobody appeared for the respondent.

Reasoning Of Judgement:-In as much as the said explanation defines “rural area” as a village defined in the land revenue records, for which purpose a certificate stands issued by the Tahsildar of the village, holding the said area to be a rural area and which certificate does not stand challenged by the Revenue, we find no justifiable reasons to ignore the said certificate of the Tahsildar. It may not be out of place to mention here that in terms of the definition as contained in the above referred explanation, the area comprised in a village and as defined in the land revenue records is the rural area. Land revenue records are maintained by the Tahsildar, who is the proper authority to give the certificate. We cannot step into shoes of the local Tahsildar to find out as to whether the certificate given by him is correct or not. Otherwise also the Revenue is not assailing the said certificate as incorrect, we cannot ignore the certificate in question. In Tribunal’s view, the same stands rightly taken into consideration by the Commissioner. No infirmity can be found in the order of the appellate authority.
In view of the above, we reject the appeal filed by the Revenue.

Decision:-Appeal rejected.

Comment:-The substance of the case is that the SSI Exemption is available for goods manufactured in a factory in rural area even if they are made using brand name of others. The assessee was previously denied the benefit on ground that village Anchatgeri was notified for amalgamation of local planning area of cities of Hubli and Dharwad. The Tribunal held that, since the notification of State Government relied by Revenue not specifically declared aforesaid village as urban area and also, the assessee produced a certificate from Tahsildar, certifying said village to be a rural area in terms of Land Revenue records and further the revenue was also unable to assail correctness of said certificate, SSI benefit cannot be denied to the assessee.

Prepared By-Praniti Lalwani
 
 

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