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/2011-12/1507

Denial of Cenvat Credit due to procedural lapse

Case: COMMR. OF C. EX, CUS & S.T., DAMAN versus J.J. POLYPLAST LTD.
 
Citation: 2010 (252) E.L.T. 511 (Guj.)
 
Issue:- Cenvat Credit cannot be denied due to procedural lapse which is rectifiable.
 
Brief Facts:- The penalty was imposed on the respondent assessee under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act. M/s. J.J. Polyplast Ltd., Unit No. 6 Gitanjali Apartment, Daman, was registered as dealer with Central Excise Range-III, North Daman Division. However, the said Unit had surrendered its registration certificate on 1-6-2005 and thereafter imported goods under Bill of Entry No. 888064 dated 9-6-2005. On the strength of said Bill of Entry, M/s. J.J. Polyplast Limited, Mumbai, who has registered as a dealer with Mumbai-II Commissionerate, availed credit on the basis of documents issued by M/s. J.J. Polyplast, Mumbai.
 
Revenue filed appeal before the High Court on the issue that Whether in the facts and circumstances of the case, the CESTAT is right in law in allowing the Appeal of the assessee against penalty imposed under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act after holding that the assessee’s contravention of provisions of Rule 9(1)(a)(iii) of CENVAT Credit Rules, 2004 read with Rule 11 of the Central Excise Rules, 2002 is rectifiable procedural lapse/defects?”
 
Appellant’s Contention:- It is submitted the penalty was rightly imposed on the respondent assessee under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act and the alleged contravention cannot be said to be rectifiable procedural lapse/defects. It was further submitted that M/s. J.J. Polyplast Ltd., Unit No. 6 Gitanjali Apartment, Daman, was registered as dealer with Central Excise Range-III, North Daman Division. However, the said Unit had surrendered its registration certificate on 1-6-2005 and thereafter imported goods under Bill of Entry No. 888064 dated 9-6-2005. On the strength of said Bill of Entry, M/s. J.J. Polyplast Limited, Mumbai, who has registered as a dealer with Mumbai-II Commissionerate, availed credit on the basis of documents issued by M/s. J.J. Polyplast, Mumbai. It is further submitted that there is statutory violation and penalty was rightly imposed, the Tribunal has committed error in deleting the said penalty.
 
Reasoning of Judgment:- The High Court based its judgment on the order passed by Tribunal. In the order passed by tribunal has specifically held in its order that apart from the fact that Rule 25 is applicable only to manufacturer, the issue as to whether Head Office can issue modavatable invoices in respect of the goods imported by the respondent in the name of unit, stands decided by various decisions of the Tribunal.
 
The Tribunal thereafter held that the invoices could have been endorsed by the Daman Office of the same appellant in the name of their Mumbai Office. This is rectifiable defect and can be rectified at any point of time. There being no dispute otherwise about the entitlement of the Modvat Credit, such procedural lapse should not result in denial of benefits to them otherwise admissible credit. After considering this position of law, the Tribunal has set aside the impugned order of penalty and allowed the Appeal with consequential relief in favour of the respondent assessee.
 
The High Court did not find any infirmity in the order passed by the Tribunal that could raise any substantial question of law.
 
Decision:- Appeal summarily dismissed.

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