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 Law/2013-14/2076

Whether provisions of Rule 8(3A) are invokable in every case of default in short payment?

Case:-  ALOK ENTERPRISES  V/S  CCE ,  MUMBAI -III
 
Citation:- 2014-TIOL-208-CESTAT-MUM
 
Brief Facts:- The facts of the case are that as per the rule 8(3A) of Central Excise Rules, 2002, the assessee is required to pay duty within 30 days of the month in which the duty becomes due. The period involved in March 2007, for which the appellant should have paid the duty on or before 31.03.2007. The appellants have paid duty along with higher education cess but there was a difference of Rs.10/- while calculating the amount for payment which they already paid in the month of June 2007. Thereafter, a show-cause notice was issued under the provisions of section 11A of the Central Excise Act, 1944. As they have paid short payment, therefore they are not entitled to utilize cenvat credit for payment of duty during the period March 2007. Accordingly, impugned orders were passed.
 
Appellant’s Contention:- The appellant is in appeal along with an application for stay against the impugned order wherein a demand of Rs. 212345/- along with interest and equivalent amount of penalty has been confirmed against them for short payment of Rs. 10/- only which caused due to mis- calculation in the month of March, 2007 and  which was paid by the appellant on his own in the month of June, 2007. Accordingly, the learned counsel for the appellant pleads that as the amount is very small, the stay application filed by them should be allowed.
 
Respondent’s Contention:-The AR contends that according to the Rule 8 of Central Excise Rules, 2002 the assessee is required to pay duty within 30 days of the month in which the duty becomes due. The period involved is March 2007, for which the appellant should have paid the duty on or before 31.03.2007. As they have paid short payment after March 2007, therefore they are not entitled to utilize cenvat credit for payment of duty during the period March, 2007.
 
Reasoning of Judgment:- Considering the fact that the entire amount of duty along with higher education cess has been already been paid by the appellant and there was a mis-calculation which resulted in short payment of Rs. 10/- only which was also paid by the appellants on their own. In these circumstances, the impugned proceedings were not warranted. Accordingly, impugned order is set aside and the appeal is allowed. Stay application is also disposed of in the above terms.
 
Decision:- Appeal Allowed.
 
Comment:- The substance of this case is that the provisions of Rule 8 (3A) are not invokable in each and every case of short payment of duty. In cases, where the duty has been paid on account of mis-calculation, with no malafide intention and moreover, the short payment is of very negligible amount, harsh provisions of Rule 8(3A) are not invokable.

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