Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *  The GSTN has issued an Advisory dated 21.04.2026 about the introduction of an Offline Tool for the Invoice Management System (IMS)  *  CBIC extends due dates for filing of FORM GSTR 3B  for the month of April 2026 *  Interest cannot be imposed in adjudication order, if not demanded/quantified in show cause notice : Allahabad HC *  Wheelchairs with toileting facility eligible for exemption: CESTAT affirms customs duty exemption to importer *  Industries urge GST council to allow inverted duty refunds on input services *  Tamil Nadu GST dept introduced virtual hearing facility for GST appeals under under section 107 of the TNGST act: detailed guidelines  *  CIC urges authorities to implement GST evasion complaint tracking system *  Even if the assessee opts "NO" for personal hearing in form DRC-06 ,The mandatory requirement under section 75(4) to grant opportunity of hearing cannot be waived:Gujarat High Court  *  Glufosinate imports curbs imposed by govt *  Government extends Re-import period for exported cut & polished diamonds *  CIC flags lack of tracking system for tax evasion complaints,urges GST authorities to improve transparency *  No Custodial Interrogation needed in GST fraud case based on documentary evidence already in Department's Possession : Chattisgarh HC *  Orders under section cannot be sustained if passed without considering the taxpayer's objections and without granting a personal hearing:Gujarat High Court *  Mere cancellation of supplier's registration cannot,by itself,justify denial of ITC or cancellation of the recipient's registration:Bombay High Court *  High Court sets aside GST notice citing factual errors and natural justice violations *  Provisional Bank Attachment under Section. 110 of Customs Act Unsustainable Beyond Statutory period without Extension order: Bombay HC orders to defreeze accounts *  Post Clearance MRP Alteration by Distributor Does not attract Differential Customs Duty: CESTAT *  DGFT Expands scope of 'Screws' classification under RoDTEP Scheme  *  E-way bills surze to all time high of 140.6 million in March *  GST Exemption Allowed on Pure Labour Services for Standalone Houses: AAR  *  GST Payable Only on Margin in Second-Hand Car Sales, Subject to Strict Conditions and No ITC Claim: AAR *  DGFT rolls out procedure for allocation of calcined coke *  GST portal update : Pre-deposit amount now editable in Appeals *  J&K HC declared TMT scrap a 'Specified Good' eligibile for GST refunds under Support Scheme  *  Pigmy agents are employees of banks; no GST can be levied on commission  paid to them : Karnataka HC *  DGFT Revises HS Code Description for Screws Under RoDTEP *  GST Registration Cancellation Invalid Without Proper Service of Notice: Allahabad High Court. *  Bengaluru CGST | GST Backlog Appeals Deadline Fixed at June 30, 2026 *  No Time Bar on Refund of Service Tax for Services Not Rendered: CESTAT  Remands Indiabulls Case for Unjust Enrichment Check. *  Supreme Court Holds Renewable Energy Incentive Must Benefit Generators, Not Be Adjusted in Tariff
Subject News *   Delhi HC Quashes Order, Says Reminder Cannot Validate Improperly Served GST SCN *  KARNATAKA HIGH COURT REMANDS GST SHORTFALL MATTER DUE TO ABSENCE OF PERSONAL HEARING   *  CESTAT cancels confiscation and penalties on imported computer cabinet cases: Custom duty restricted to 111 surplus units *  Deposit of tax during search or investigation cannot be treated as 'Voluntary Payment' : Bombay High Court *  Section 76 of the CGST cannot be invoked where the tax has already been duly deposited, even if through another registration of the same entity: Madras High Court *  Sec 74 allows use of material regardless of source; illegality or flaws in section 67 search do not vitiate valid adjudication: HC *  Inter-State transfer of ITC on Amalgamation permissible as given under section 18(3) read with rule 41 of the CGST rules, 2017: Gujarat High Court *  HC: No GST on commisson paid to Pigmy Agents *  IGST refund denial on illegible bill of lading invalid absent chance to furnish docs; merit reconsideration in appeals directed: HC *  ITC is not admissible on GST paid on leasehold rights of land used fpr setting up an air seperation plant: AAAR,Tamil Nadu *  GST: No penalty under Section 74 after voluntary ITC reversal due to non-existent supplier : High Court *  TN AAAR denies GST ITC on Land Lease under Sec. 17(5)(d) for setting up plant and machinery *  GST proceedings quashed as notices sent to old address, despite updated address in registration *  Importer Can’t Be Penalised for Alleged IGCR Procedural Lapses Without Evidence of Departmental Error: CESTAT *  Structured Healthcare Training Not ‘Charitable Activity’, 18% GST Payable: AAR  *  CESTAT As The Appellate Authority For Central Sales Tax Disputes: A Paradigm Shift Under Finance Act, 2023 *   Rs. 25K Cost Imposed On SGST Joint Commissioner for Attaching Bank  Accounts Without Forming Mandatory “Opinion”: Bombay HC *   Ex-Parte GST Order Without Hearing Violates Natural Justice: Karnataka  High Court Quashes Adjudication and Bank Attachment.  *   Retrospective GST Cancellation Can’t Invalidate Genuine Transactions:  Jaipur Commissioner (Appeals) Quashes Rs. 95,670 ITC Demand. *   GST Pre-Deposit Non-Compliance: Allahabad High Court Allows Appeal  Subject to Rs. 30 Lakh Balance Deposit, Recognises Offline Filing. *  Documentary Nature of Evidence: Allahabad High Court Grants Bail in Rs. 32.66 Crore Fake ITC Fraud Case *  Supreme Court Flags Systemic Bias in Army’s Permanent Commission Process for Women Officers *  Re-Determination of Land Compensation Can Be Based on Appellate Court Awards, Clarifies Scope of S. 28-A: Supreme Court. *  Supreme Court Imposes Rs. 5 Lakh Costs On Rent Authority Officer For Acting Beyond Jurisdiction. *  DGGI Meerut | Court Denies Bail to Accused in Claiming Fake ITC And Export Refunds *  Denial of GST Rate Revision Benefit to Contractor Violates Article 14: Rajasthan HC *  GST Registration Cancellation for Non-Filing of Returns: Gauhati High Court Directs Restoration on Compliance. *   Supreme Court Quashes FEMA Adjudication Orders, Revives Proceedings at  Show Cause Stage. *   Higher Rank, Harsher Punishment Justified: Supreme Court Restores Dismissal  of Bank Manager in Misappropriation Case. *   Limitation for Export Refund to Be Counted from Foreign Exchange Realisation,  Not From Export Invoices Issuance: CESTAT  

Comments

Print   |    |  Comment

PJ/CASE LAW/2014-15/2425

Whether clearances to 100% eligible for benefit of refund of accumulated credit?

Case:-COMM. OF C.E., CUS AND S.T., HYDERABAD-I Vs TECHBOND LABORATORIES (P) LTD
 
Citation:-2014-TIOL-2100-CESTAT-BANG

Brief facts:-Revenue is seeking stay against the impugned order wherein the learned Commissioner (Appeals) has allowed the refund claims filed within the time limit prescribed under the law by the assessee. As regards the refund claims rejected on limitation, there is no dispute at present. As regards the refund claim filed by the appellants, within the normal period, Revenue is aggrieved by the fact that the Commissioner (Appeals) has allowed the refunds on the ground that clearances to other 100% EOUs which are deemed exports and are not physical exports have to be considered as exports for the purpose of consideration of refund claims under Rule 5 of CCR 2004. The learned A.R. submitted that in the case of Essar Steel Ltd. Vs UOI [2010 (249) ELT 3 (Guj)] = 2009-TIOL-674-HC-AHM-CUS, Hon'ble High Court had taken a view that clearances from Domestic Tariff Area Units to SEZs cannot be considered as exports for the purpose of levy of export duty. Following this ration, in this case also, the clearances to 100% EOUs cannot be considered as exports.
 
Appellant’s contention:-The learned A.R. submitted that in the case of Essar Steel Ltd. Vs UOI [2010 (249) ELT 3 (Guj)] = 2009-TIOL-674-HC-AHM-CUS, Hon'ble High Court had taken a view that clearancesfrom Domestic Tariff Area Units to SEZs cannot be considered as exports for the purpose of levyof export duty. Following this ration, in this case also, the clearances to 100% EOUs cannot be considered as exports.
 
Respondent’s contention:-Nobody is present on behalf of the respondents.

Reasoning of judgment:-The Hon’ble Tribunal find that in this case, the learned Commissioner (Appeals) has relied on the following decisions to come to the conclusion that such refunds have to be allowed even when the exports are deemed exports. The decisions are CCE & C Vs NBM Industries [2012 (276) ELT 9 Guj] = 2011-TIOL-677-HC-AHM-CX. CCE Vs Shilpa Copperwire Industries [2001 (269) ELT 17 (Guj)]. Both these decisions were rendered by Hon'ble High Court of Gujarat and both the decisions are directly on the issue which is under consideration in these appeals. In both cases it was held that refund of CENVAT credit availed on inputs used in the manufacture of goods cleared by DTA units to 100% EOUs would be available and it can not be denied on the ground that it was a case of deemed export. In view of the fact that both the decisions of the Hon'ble High Court of Gujarat relied upon by the learned Commissioner are on the very same issue and are directly applicable to the facts of this case. No case has been made out for granting stay by the Revenue. Accordingly, the stay applications filed are rejected.
 
Decision:- Stay rejected.

Comment:- The analogy of the case is that refund of accumulated credit under Rule 5 of the Cenvat Credit Rules, 2004 is also admissible if the clearances are made to 100% EOUs because such clearances that are considered as deemed exports are at par with physical exports.Moreover, there are number of decisions of the Hon'ble High Court of Gujarat wherein the refund of accumulated credit has been allowed in case of clearances made to 100% EOUs. Not only this, recently, strict view was taken by the Hon’ble Gujarat High Court in the case of EI DUPONT INDIA PVT. LTD. wherein strictures were proposed against the adjudicating authority for rejecting the refund of accumulated credit on the grounds that the exports were deemed exports and not physical exports.
 
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