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/2011-12/1326

Benefit under Notification No. 26/2000-Cus on Import of polished Marbles slabs

Case: ORIENTAL TILES LTD v/s COMMISSIONER OF CUSTOMS (PORT), KOLKATA
 
Citation: 2011 (270) E.L.T. 664 (Tri. - Kolkata)
 
Issue:- Denial of benefit Under Notification No. 26/2000-Cus on import of polished Marble slabs.
 
Brief Facts:- Appellant made import of marble slabs declaring the same as polished marble slabs from Sri Lanka from their subsidiary company and claimed the benefit of Notification No. 26/2000 read with Notification No. 19/2000-Cus. The goods were provisionally released as the import was made from subsidiary company and the issue of valuation was finalized. Subsequently customs officers visited the premises of the Appellant and on visual examination found that the marble slabs which were imported un­der 21 bills of entries were not completely polished. Thereafter, Show Cause Notice was issued and impugned order was passed denying the benefit of exemption Notification and confiscated the goods and imposed penalties. The goods were reclassified the goods under chapter heading 25151220 of Customs Tariff as rough marbles.
 
Appeal is in appeal before the Tribunal.
 
Appellant’s Contention:- Appellant contended that the rough marble slabs were im­ported from

 

Omanto Sri Lank by declaring the value at US Dollar 11.39 per square metre where the same had undergone the process of polishing. Thereafter these marble slabs were imported into India by declaring the price between US Dollar 16 to18 per square meter. It is also submitted that the CVD (countervailing Duty) as applicable was also paid at the time of import. Revenue is deny­ing the benefit of Notification only on the ground that the final process of manu­facture is not performed within the territory of exporting country. The Applicant has sufficient machinery/equipment at their unit in Sri Lanka to convert the marble slabs to polished marble slabs and after import the polished marble slabs were sold in the market. There is no factory or equipment in India where the imported slabs further worked upon. The buyers of the marble slabs at the time of fixing may have taken some finishing touches to remove the dust etc. The contention is also that the Revenue is not relying upon any expert opinion or trade opinion whether the stabs in question were polished or not. It is also submitted that the dispute in respect of payment of CVD duly in respect of polished marble slabs imported by the applicant was settled by the Calcutta High Court vide Order dated 18-5-2006 held that polished marble which has been imported by the Appellant into India cannot be termed as manufacture of that goods in India.
 
Respondent’s Contention:- Revenue contended that the premises of the Appellant was visited and it was found some slabs were lying which were not termed as polished marble slabs. The statement of the employee also shows that the slabs require polishing for use. The Revenue relied upon the conditions of the Notification No. 19/2000-Cus. (N.T.) whereby it has been provided that the final processes of manufacture is to be performed within the territory of exporting country as the final process i.e. polishing has not been completely performed at the importing country i.e. Sri Lanka hence the benefit was rightly denied.
 
Reasoning of Judgment:- The Tribunal noted that Revenue is denying benefit of Notification on the ground that as the marble slabs were not completely polished at the country therefore benefit is not available to the appellant. The Director of the importing firm in his statement gave the details of the equipment/machinery available at their factory in Sri Lanka and also the processes undertaken including polishing on the rough marble imported into Sri Lanka. The Revenue is only relying on the statement of employee where he simply stated that some polishing is required for use.
 
The Tribunal held that allegation in the Show Cause Notice is not that the goods found at the premises are rough marble, allegation is that the marble is not completely polished. There is no evidence to show that Appellant had undertaken any process which can be termed as polishing after import. The goods were sold after import and the customers may have undertaken finishing touches after fixing the mar­ble. The issue whether the marble slabs imported by the Appel­lants are liable to pay CVD (Countervailing duty) and finally decided by the Calcutta High Court vide order dated 18-5-2006 and the High Court treated the goods as polished marble which has been imported by the Ap­pellant into India and held that the activity undertaken by the Appellant does not amount to manufacture of goods in India.
 
There is no technical or trade opinion obtained by the Revenue re­garding the conditions of the slabs found at the premises of the Appellant and visual examination is only to the extent that the same is not completely polished.  
 
Decision:- Appeal allowed.
 
Comment:- The allegation by the department has to be supported by expert opinion and not based on employee of the company. Everyone knows that the department uses pressure for obtaining such statements. This verdict is very important for consultants.

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