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 /2016-17/3394

Recredit of amounts reversed when dispatched iron ore fines received as iron ore pellets.

Case:- JSW STEELS (SALAV) LTD. Versus COMMISSIONER OF CENTRAL EXCISE, RAIGAD
 
Citation:- 2016 (342) E.L.T. 269 (Tri. - Mumbai)

Brief facts:-This appeal is directed against Order-in-Appeal No. AT/442/RGD/2005, dated 29-8-2005.
The issue involved in this case is whether the Modvat credit availed by appellant during the period August, 1999 is required to be reversed or otherwise. Appellant had availed Modvat credit on Iron Ore fines. They dispatched these iron ore fines under the provisions of Rule 57F(4) for conversion into iron ore pellets by debiting an amount of 10% of the Modvat credit availed on iron ore fines. The said debits were credited under the provisions of Rule 57F(4) of Central Excise Rules, 1944. The job worker to whom iron ore fines were dispatched converted the same into iron ore pellets and paid duty on the said pellets by raising invoice under Rule 52A of the erstwhile Central Excise Rules, 1944. It is the case of the Revenue that appellant has not received back the iron ore fines sent to the job worker hence they are liable to reverse 10% which they have done so to avail recredit on receipt of iron ore pellets.
 
Appellat’s contention:- Ms. Aparna H., Advocate, appeared  for the Appellant.
 
Respondent’s contention:- Shri Ashutosh Nath, Asst. Commissioner (AR), appeared for the Respondent.
 
Reasoning of judgment:-On perusal of records, The Hon’ble judge find that there is no dispute as to the fact that appellant is eligible to avail Cenvat credit on the iron ore fines and has followed the procedure of Rule 57F of the erstwhile Central Excise Rules, 1944 for converting the same into iron ore pellets from the job worker. It is also undisputed that the job worker has converted the iron ore fines into pellets and cleared the pellets on payment of duty as per Rule 52A. Appellant had not availed the Cenvat credit of duty paid on the iron ore pellets by the job worker. Appellant has simply recredited the amount of Cenvat credit reversed by them when they dispatched the iron ore fines to the job worker for conversion. In their considered view, the impugned order is unsustainable for the reason that there is no dispute as to the fact that the iron ore fines (inputs) dispatched by appellant were received back in the form of iron ore pellets and consumed by the appellant. The only question remains is that whether there is a co-relation or otherwise. In the case in hand the appellant specifically stated before the lower authorities that they had taken the recredit of amounts reversed by them when they dispatched iron ore fines on receipt of iron ore pellets. Revenue has not contested those submissions made by appellant before them. In their view, once it is established that iron ore pellets are received back from the job worker, nothing survives in these appeals and the recredit availed by the appellant is correct. Looking at the entire issue from a different angle, they find that the appellant could have availed Cenvat credit of duty paid by the job worker when they cleared iron ore pellets on payment of duty, as the said iron ore pellets is nothing but an input to the appellant. In their considered view, the appellant having reversed the Cenvat credit and then subsequently taken recredit on receipt of iron ore pellets is within the provisions of Rule 57F(4) of the Central Excise Rules, 1944.
In view of the foregoing, in the facts and circumstances of this case, they set aside the impugned order and allowed the appeal with consequential relief.
 
Decision:- Appeal allowed
 
Comment:- The analogy of the case  is that Assessee send iron ore fines to job worker for conversion into iron ore pellets. Job worker cleared iron ore pellets on payment of duty. Assessee had not avail credit of duty paid by job worker but simply re-crediting amount of reversed by them when it dispatched iron ore fines to job worker for conversion. There is no dispute as to the fact that the iron ore fines dispatched by appellant were received back in the form of iron ore pellets and consumed by the appellant. In the case in hand the appellant specifically stated before the lower authorities that they had taken the recredit of amounts reversed by them when they dispatched iron ore fines on receipt of iron ore pellets.
Prepared by:- Monika Tak 

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