Recent Updates

2015-VIL-332-CESTAT-DEL-CE|CENTRAL EXCISE |CESTAT Cases | 06.07.2015

... tart of commercial production – Trial production / Commercial production – HELD – Though the term ‘commercial production’ is not defined in this notification, this term should be construed in contradistinction with the term ‘trial production’, as trial production is followed by the commercial production. ‘Trial production’ is the production during the process of commissioning of a plant. It is only the date on which the commissioning process has been completed, the plant is in a position to produce the goods of the desired quality and as per its installed capacity and some production has been made, that plant can be said t... [Read more]

... tart of commercial production – Trial production / Commercial production – HELD – Though the term ‘commercial production’ is not defined in this notification, this term should be construed in contradistinction with the term ‘trial production’, as trial production is followed by the commercial production. ‘Trial production’ is the production during the process of commissioning of a plant. It is only the date on which the commissioning process has been completed, the plant is in a position to produce the goods of the desired quality and as per its installed capacity and some production has been made, that plant can be said to have commenced commercial production, as it is at that stage only that the plant is in a position to start commercial production, that is, the production of the saleable goods as per its installed capacity - what is relevant for determining the day of commencement commercial production is exactly when the process of commissioning was completed and plant was ready to manufacture the goods of the desired quality as per installed capacity - Though the appellant had intimated the Jurisdictional Central Excise officers about availment of this exemption under their letter dated 23/03/2010, their unit was not visited by the Officers during the last week of March, 2010, which was the crucial period for determining as to whether the plant was in position to commence commercial production or not. If the plant had been visited by the Jurisdictional Central Excise officers on 31/03/2010 there would have been no scope for dispute on this point - The impugned order is set aside. The matter is remanded to the original Adjudicating Authority for denovo adjudication. In course of denovo adjudication, the AA must examine Supervisor of the appellant company and also the Member Secretary, Single Window Clearance Agency, who had issued the certificate certifying that the unit had commenced production on 31/03/2010 and also permit the cross examination of both the persons by the appellant, if so desired by them, and only after examining these persons and permitting their cross examination, if asked for by the appellant and considering other evidence on record, the Adjudicating Authority must decide the question as to whether or not the unit had commenced commercial production on or before 31/03/2010 in accordance with law [Read less]

2015-VIL-331-CESTAT-AHM-CE|CENTRAL EXCISE |CESTAT Cases | 06.07.2015

... oices without receipt of the goods – HELD - Appellant had produced several evidence in respect of receipt of inputs and the same were not disputed and the officers proceeded merely on the basis of statements and in this situation, denial of cenvat credit cannot be sustained - Appellant produced documents that supplier was in existence during the material period as established by their invoices and the Central Excise monthly returns. So, the appellant has discharged their responsibility and therefore, CENVAT credit availed on the basis of invoices of supplier cannot be denied – Appeal allowed... [Read more]

... oices without receipt of the goods – HELD - Appellant had produced several evidence in respect of receipt of inputs and the same were not disputed and the officers proceeded merely on the basis of statements and in this situation, denial of cenvat credit cannot be sustained - Appellant produced documents that supplier was in existence during the material period as established by their invoices and the Central Excise monthly returns. So, the appellant has discharged their responsibility and therefore, CENVAT credit availed on the basis of invoices of supplier cannot be denied – Appeal allowed [Read less]

2015-VIL-19-MSTT|VAT |Tribunal | 06.07.2015

... imb of the Act - Transfer of document of title to the goods before crossing the custom frontier of India – Appellant imported Diving Helium from overseas supplier and on arrival of goods at port Bombay, goods were sent for warehousing - Supply from bonded warehouse to Victoria Docks within the territory of Maharashtra State – HELD – Sale of Diving Helium to Essar Shipping Ltd, for supply to ONGC, would not be sale in course of import u/s.5(2) or export u/s.5(1). The property in goods is transferred at 12 Victoria Dock on delivery to Essar Shipping Ltd. The sale is completed at 12 Victoria Dock within the Maharashtra State.... [Read more]

... imb of the Act - Transfer of document of title to the goods before crossing the custom frontier of India – Appellant imported Diving Helium from overseas supplier and on arrival of goods at port Bombay, goods were sent for warehousing - Supply from bonded warehouse to Victoria Docks within the territory of Maharashtra State – HELD – Sale of Diving Helium to Essar Shipping Ltd, for supply to ONGC, would not be sale in course of import u/s.5(2) or export u/s.5(1). The property in goods is transferred at 12 Victoria Dock on delivery to Essar Shipping Ltd. The sale is completed at 12 Victoria Dock within the Maharashtra State. It is a local sale. The sales tax levied on Diving Helium as local sale is liable to be confirmed alongwith levy of additional tax u/s.15A and set-off u/r.41E of the Bombay Sales Tax Rules – Appeal dismissed [Read less]

2015-VIL-264-BOM|VAT |High Court Cases | 06.07.2015

... rt of goods and sale of scarp locally – Set-off in respect of purchases of goods which are used in the manufacture of goods treated as capital assets or parts and components of such capital assets – Adjustment of scrap sale with set-off - HELD - The words “consists principally of sales of waste or scrap goods” are completely ignored by both the Revisional Authority and the Tribunal. The dealer in this case has not been found to have principally dealt with waste or scrap goods. The exported goods were manufactured with the purchases of goods styled as raw materials that have been made by the dealer. In such circumstances, w... [Read more]

... rt of goods and sale of scarp locally – Set-off in respect of purchases of goods which are used in the manufacture of goods treated as capital assets or parts and components of such capital assets – Adjustment of scrap sale with set-off - HELD - The words “consists principally of sales of waste or scrap goods” are completely ignored by both the Revisional Authority and the Tribunal. The dealer in this case has not been found to have principally dealt with waste or scrap goods. The exported goods were manufactured with the purchases of goods styled as raw materials that have been made by the dealer. In such circumstances, we do not see how the dealer was ineligible or not qualified for the refund under the Rule - The authorities ought to have indicated with clarity and precision as to what is meant by capital goods and which capital goods and of what description have been acquired. If the dealer has treated them as consumables by the claimant-dealer and parts, components and accessories of capital assets alone qualify for retention of 4% of the purchase price in respect of the good which are treated as such, then the obligation and the duty of the authorities was to indicate as above. They have not and in both orders concluded as to which assets could be treated as capital assets and parts and components of which, therefore, get covered by clause (b) of sub-rule (3) of Rule 41-D. In the instant case, when the dealer pointed out the nature of the consumables, then, there was no reason to doubt the veracity and genuineness of his version. When no contrary material was available on record, then, all the more the set-off / refund should not have been denied - The authorities have completely misread and misinterpreted the Rules and the concurrent conclusion is not in accordance with law – Assessee appeal allowed [Read less]

2015-VIL-334-CESTAT-DEL-ST|SERVICE TAX |CESTAT Cases | 06.07.2015

... ce of the Private Placement of Shares is admissible as input service credit as per the Cenvat Credit Rules – Activity used by the appellant directly or indirectly or in relation to the manufacture of the final products - HELD - It is the case of the appellant, that they raised capital by private placement of Shares, for the purpose of implementing a new project, the Automotive Wheel Line Project in their factory. The contention of the revenue that such financial services rendered to the appellant for the purpose of raising capital is not related to manufacture directly or indirectly cannot be accepted. The definition of "i... [Read more]

... ce of the Private Placement of Shares is admissible as input service credit as per the Cenvat Credit Rules – Activity used by the appellant directly or indirectly or in relation to the manufacture of the final products - HELD - It is the case of the appellant, that they raised capital by private placement of Shares, for the purpose of implementing a new project, the Automotive Wheel Line Project in their factory. The contention of the revenue that such financial services rendered to the appellant for the purpose of raising capital is not related to manufacture directly or indirectly cannot be accepted. The definition of "input service" is not restricted being limited to services which are directly linked to the manufacturing activity. But the definition has a wide ambit and covers services which are relating to business activities of manufacture – The service of private placement of shares for raising capital is an input service and credit on the service is to be allowed - The impugned order is set aside and appeal is allowed [Read less]

2015-VIL-333-CESTAT-DEL-ST|SERVICE TAX |CESTAT Cases | 06.07.2015

... ntract for transportation of the goods which also involved unloading of fertilizer from railway wagons onto trucks, unloading and stacking in warehouse and destacking and loading into trucks. In addition, the respondent was to ensure every necessary steps to protect fertiliser from damage – Demand under cargo handling service – HELD - The Commissioner (Appeals) has categorically observed that a plain reading of the agreement showed that the respondents were mainly hired for transportation of goods. That being the case and having regard to the contention of the respondent that there were no separate charges mentioned for lo... [Read more]

... ntract for transportation of the goods which also involved unloading of fertilizer from railway wagons onto trucks, unloading and stacking in warehouse and destacking and loading into trucks. In addition, the respondent was to ensure every necessary steps to protect fertiliser from damage – Demand under cargo handling service – HELD - The Commissioner (Appeals) has categorically observed that a plain reading of the agreement showed that the respondents were mainly hired for transportation of goods. That being the case and having regard to the contention of the respondent that there were no separate charges mentioned for loading/unloading, the impugned service provided under such a composite contract would be classifiable under GTA services by virtue of Section 65 A(2)(b) ibid - Respondent were mainly hired for transportation of goods and that loading / unloading were only incidental to the main activity which was transportation of goods, and therefore, the service provided was covered in the scope of GTA service – Revenue appeal dismissed [Read less]

2015-VIL-327-CESTAT-CHE-CE|CENTRAL EXCISE |CESTAT Cases | 03.07.2015

... of CER - Expression ‘the month for which such amount is determined’ - Finalisation of provisional assessment under Rule 7 of CER and payment of differential duty before finalisation of the provisional assessment – Demand of interest on the differential duty paid on account of price variation raised through the supplementary invoices – HELD – Considering the provisions of Section 4 of the CEA the duty becomes payable on each removal of the goods consequent to the manufacture thereof. Being so, the expression ‘becomes payable’ under Section 37(2)(ibb) would relate to the date on which the duty was payable i.e. at the time of... [Read more]

... of CER - Expression ‘the month for which such amount is determined’ - Finalisation of provisional assessment under Rule 7 of CER and payment of differential duty before finalisation of the provisional assessment – Demand of interest on the differential duty paid on account of price variation raised through the supplementary invoices – HELD – Considering the provisions of Section 4 of the CEA the duty becomes payable on each removal of the goods consequent to the manufacture thereof. Being so, the expression ‘becomes payable’ under Section 37(2)(ibb) would relate to the date on which the duty was payable i.e. at the time of clearance of the goods in terms of the said Act. Merely because the differential amount of duty is ascertained consequent to the finalization of assessment, the due date for payment of such amount never stands changed or extended. It would always relate to the date of removal of the goods thereof. It is only the quantification of the differential amount of duty is ascertained consequent to the finalization of assessment. And that too merely because the assessee was not able to ascertain the exact quantum of duty at the time of clearance of goods. That would not extend or change the due date for payment of duty. The due date for payment of duty is statutorily fixed being the date of removal of the goods consequent to the manufacture thereof, as the same cannot be changed by misinterpreting the provisions relating to the power of the Government to frame the Rules - The provisions specifically states that the interest liability will commence from the month succeeding the month ‘for’ which such amount is determined. The expression ‘for’ refers to the month for which the amount is determined pursuant to finalization of assessment. Apparently, it discloses that the interest liability would commence from the month succeeding the day on which the duty was due and payable in relation to the goods cleared - Appellants own case followed - The impugned order is upheld and appeals are dismissed [Read less]

2015-VIL-328-CESTAT-DEL-CE|CENTRAL EXCISE |CESTAT Cases | 03.07.2015

... ers for non-conventional energy system - Exemption under Notification No.6/2002-CE dated 01.03.2002 – HELD – In Sl.No.237 of the table to the Notification 6/2002-CE covers "non-conventional energy devices / systems specified in list 9." Sl.No.16 of the list 9 covers "agricultural, forestry, agro industrial, industrial, municipal and urban waste conversion devise producing energy". There is no dispute that the chimneys manufactured by the appellant are meant for biomass burning boilers being manufactured by M/s. ISGEC John Thompson who in turn, supply such broilers to the end-users for production of energy from waste. The C... [Read more]

... ers for non-conventional energy system - Exemption under Notification No.6/2002-CE dated 01.03.2002 – HELD – In Sl.No.237 of the table to the Notification 6/2002-CE covers "non-conventional energy devices / systems specified in list 9." Sl.No.16 of the list 9 covers "agricultural, forestry, agro industrial, industrial, municipal and urban waste conversion devise producing energy". There is no dispute that the chimneys manufactured by the appellant are meant for biomass burning boilers being manufactured by M/s. ISGEC John Thompson who in turn, supply such broilers to the end-users for production of energy from waste. The Commissioner (Appeals)'s view is that since what is covered by Sl.No.237 of Notification No.6/2002-CE is the non-conventional energy devices/ systems and since there is very thin distinction between part and device, as the device is thing made for a particular purpose and since chimney being an integral part of the biomass fired broiler can be treated as a device for non-conventional energy devices/systems, the exemption under this Notification would be available to the chimneys - Device is a thing made for a particular purpose and as such the chimney meant for biomass fired boiler has to be treated as non-conventional energy device – Revenue appeal dismissed [Read less]

2015-VIL-329-CESTAT-DEL-CE|CENTRAL EXCISE |CESTAT Cases | 03.07.2015

... ions, joists, MSI beam, MS angle, channel, welding rods and black sheet as capital goods - items do not fall under the definition of Capital goods as per Rule 2A of the Cenvat Credit Rules, 2004 – Extended period - HELD - Cenvat credit on the items in question was availed by the appellant during the period 2006-2007 up to 15.2.09 and in their show cause notice, it has been recorded that appellant vide their letter dated 3.3.2010 contended that the Cenvat credit on the subject goods is admissible to them as input of capital goods under the category of input of capital goods have been used for supporting erection of plant an... [Read more]

... ions, joists, MSI beam, MS angle, channel, welding rods and black sheet as capital goods - items do not fall under the definition of Capital goods as per Rule 2A of the Cenvat Credit Rules, 2004 – Extended period - HELD - Cenvat credit on the items in question was availed by the appellant during the period 2006-2007 up to 15.2.09 and in their show cause notice, it has been recorded that appellant vide their letter dated 3.3.2010 contended that the Cenvat credit on the subject goods is admissible to them as input of capital goods under the category of input of capital goods have been used for supporting erection of plant and machinery. As during the impugned period availment of Cenvat credit on the items in question was in dispute as there were contrary decision of this Tribunal. Therefore, in such a case extended period of limitation is not invokable - Further, the appellant is located in Jammu and availing the exemption under notification No. 56/2002 wherein whatever duty paid by the appellant from PLA, he is entitled to refund of the same. If in this case appellant has not taken the Cenvat credit therefore, whatever duty they would have paid and they could claim the same as refund. Therefore, I hold that it is a case of revenue neutral situation and in that case also the allegation of suppression cannot be alleged against the appellants – Appeal allowed [Read less]

2015-VIL-263-MAD|VAT |High Court Cases | 03.07.2015

... thority – HELD - In the present case, the Assistant Commissioner (CT), (ENT) Namakkal, the 1st respondent herein, has issued the impugned notice. When the petitioner has admittedly submitting the assessments only to the 2nd respondent at Tiruchengode, the 1st respondent, who is an official of the Enforcement Wing of the Commercial Tax Department, cannot embark upon fresh demonstration of the petitioner premises with the aid of the central excise department and the electricity board officials. It is also an admitted fact that the 2nd respondent who is the jurisdictional assessing officer of the petitioner has also conducted... [Read more]

... thority – HELD - In the present case, the Assistant Commissioner (CT), (ENT) Namakkal, the 1st respondent herein, has issued the impugned notice. When the petitioner has admittedly submitting the assessments only to the 2nd respondent at Tiruchengode, the 1st respondent, who is an official of the Enforcement Wing of the Commercial Tax Department, cannot embark upon fresh demonstration of the petitioner premises with the aid of the central excise department and the electricity board officials. It is also an admitted fact that the 2nd respondent who is the jurisdictional assessing officer of the petitioner has also conducted an inspection at their factory premises on 27.09.2012 and after spending the whole day in assessing the actual burning loss and the actual consumption of electricity, after inspection, arrived at a finding and based on the finding the 2nd respondent has also framed assessment for the years 2006-07 to 2008-09. Therefore, it is not open to the 1st respondent to undertake any inspection in the guise of demonstration to make assessment – Writ petition allowed [Read less]

2015-VIL-330-CESTAT-MUM-ST|SERVICE TAX |CESTAT Cases | 03.07.2015

... tered premises Centralised registration – HELD - The fact of this application centralized registration having been made is mentioned in the order-in-original and is not disputed. However, the order-in-original states that the centralized registration was not applied for in the proper format and that the appellant had not produced any documents to the effect that they had applied for centralized registration. I find from the letter dated 16/12/2004 that the appellant has stated that they may be given permission to have only one registered place in terms of Rule 3(a) of the Service Tax Rules. This request can be considered a... [Read more]

... tered premises Centralised registration – HELD - The fact of this application centralized registration having been made is mentioned in the order-in-original and is not disputed. However, the order-in-original states that the centralized registration was not applied for in the proper format and that the appellant had not produced any documents to the effect that they had applied for centralized registration. I find from the letter dated 16/12/2004 that the appellant has stated that they may be given permission to have only one registered place in terms of Rule 3(a) of the Service Tax Rules. This request can be considered as an application for centralized registration. In any case, the centralized registration was granted subsequently on 26/03/2013. The department has not disputed that the input services were received at the branch office and further that they were utilised for providing output services. In fact perusal of the accounting records maintained at the Nagpur office shows the receipt of the services at branch office – Hence, no reason to disallow the Cenvat Credit on the documents pertaining to the branch offices – Assessee appeal allowed [Read less]

2015-VIL-260-AP|VAT |High Court Cases | 02.07.2015

... arrears - Settlement of arrears and issue of Certificate of Settlement - Summary demand notice, after two years of settlement, demanding interest on settled amounts – Application of normal provisions of APGST Act by Revenue for demanding interest on delayed payment - HELD – The Certificate of Settlement issued under Section 12 of the Act is final and conclusive - From the Settlement Certificate issued in Form-III, it is clear that the dispute with regard to payment of tax is settled, and further, in terms of the provision under Section 12 of the Act, once such certificate is issued, such applicant shall be discharged from... [Read more]

... arrears - Settlement of arrears and issue of Certificate of Settlement - Summary demand notice, after two years of settlement, demanding interest on settled amounts – Application of normal provisions of APGST Act by Revenue for demanding interest on delayed payment - HELD – The Certificate of Settlement issued under Section 12 of the Act is final and conclusive - From the Settlement Certificate issued in Form-III, it is clear that the dispute with regard to payment of tax is settled, and further, in terms of the provision under Section 12 of the Act, once such certificate is issued, such applicant shall be discharged from his liability to make payment of balance amount of such arrears of tax, penalty or interest in dispute. In the absence of any notices or orders levying penalty or interest prior to settlement of dispute on the claim made by the petitioner, once the arrears of tax itself are settled, it is not open to the respondent to pass any further orders for collection of interest on the amount which is already paid - Having settled the dispute under the Act, it is not open for the respondents to pass subsequent orders or issue demand notices for payment of interest – Further, when the claim of the petitioner is considered as per the scheme, in the absence of any specific provision for collection of interest on the amount settled, it is not open for the respondent to collect the same from the petitioner - The impugned demand notices are quashed writ petition is allowed [Read less]

2015-VIL-262-ALH-ST|SERVICE TAX |High Court Cases | 02.07.2015

... pre-deposit of 7.5% of the duty demanded – HELD - Provisions of Finance Act (No.2) of 2014 indicate that it would apply to all appeals which would be filed on and from the date of the enforcement of Section 35F of the Act - The second proviso of Section 35F of the Act is a clear indicator that Parliament has exempted the requirement of complying with the pre-deposit as mandated by Section 35F (1) of the Act as amended only in the case of those stay applications and appeals which were pending before any appellate authority prior to the commencement of Finance Act (No.2) 2014. Consequently, both by virtue of the opening wor... [Read more]

... pre-deposit of 7.5% of the duty demanded – HELD - Provisions of Finance Act (No.2) of 2014 indicate that it would apply to all appeals which would be filed on and from the date of the enforcement of Section 35F of the Act - The second proviso of Section 35F of the Act is a clear indicator that Parliament has exempted the requirement of complying with the pre-deposit as mandated by Section 35F (1) of the Act as amended only in the case of those stay applications and appeals which were pending before any appellate authority prior to the commencement of Finance Act (No.2) 2014. Consequently, both by virtue of the opening words of Section 35F(1) of the Act as well as by the second proviso to the provision, it is clear that appeals which are filed on and after the enforcement of the amended provision on 6 August 2014 shall be governed by the requirement of pre-deposit as stipulated therein – The petitioner would not be justified in urging that the amended provisions of Section 35F(1) of the Act would not apply merely on the ground that the SCN was issued prior to the enforcement of Finance Act (No.2), 2014 - No merit in the constitutional challenge. The petition stands dismissed [Read less]

2015-VIL-327-CESTAT-DEL-ST|SERVICE TAX |CESTAT Cases | 02.07.2015

... rvice to various thermal plants - Maintenance contract – Demand for period prior to 16.6.2005 – HELD - It was only w.e.f. 16.6.2005 that a maintenance or repair service provided under a contract or agreement (as different from a maintenance contract or agreement) became taxable. The service recipients have certified that the contracts with the appellants were repair contracts and not maintenance contracts – Extended period - The show cause notice in this case was issued on 6.12.2006. The fact that the appellant started paying service tax w.e.f. 16.6.2005 after the definition of ‘maintenance or repair’ service was amended s... [Read more]

... rvice to various thermal plants - Maintenance contract – Demand for period prior to 16.6.2005 – HELD - It was only w.e.f. 16.6.2005 that a maintenance or repair service provided under a contract or agreement (as different from a maintenance contract or agreement) became taxable. The service recipients have certified that the contracts with the appellants were repair contracts and not maintenance contracts – Extended period - The show cause notice in this case was issued on 6.12.2006. The fact that the appellant started paying service tax w.e.f. 16.6.2005 after the definition of ‘maintenance or repair’ service was amended shows their bona fides. Even if the contracts under which the service was rendered were to be interpreted by some as maintenance contracts, the fact remains that it cannot be said to be unreasonable on the part of the appellant to think that these were not maintenance contracts and the fact that it started paying service tax with effect from 16.6.2005 when the words ‘maintenance contract’ was substituted by the word ‘contract’ lends credence to the appellant’s contention regarding their bonafide belief. The matter thus being interpretational and given the conduct of the appellant, there is hardly any scope for sustaining the allegation of suppression on the part of the appellant - The demand would also be hit by time bar as extended period would not be invokable – The impugned order is set aside appeal is allowed [Read less]

2015-VIL-63-SC-CE-LB|CENTRAL EXCISE |Supreme Court Cases | 02.07.2015

... Manufacturing of Car air conditioners - For purposes of the Notification, the term "car air-conditioner kit" or "car air-conditioning kit" shall exclude that kit or assembly of parts which contains automotive gas compressor with or without magnetic clutch - HELD - Rule 2(a) of Rules of Interpretation consists of two parts. First part stipulates that incomplete or unfinished goods would fall in heading relating to the completed goods provided the incomplete or unfinished good bears the essential character of the complete or finished goods. Second part predicates unassembled or assembled goods can be treated as goods comple... [Read more]

... Manufacturing of Car air conditioners - For purposes of the Notification, the term "car air-conditioner kit" or "car air-conditioning kit" shall exclude that kit or assembly of parts which contains automotive gas compressor with or without magnetic clutch - HELD - Rule 2(a) of Rules of Interpretation consists of two parts. First part stipulates that incomplete or unfinished goods would fall in heading relating to the completed goods provided the incomplete or unfinished good bears the essential character of the complete or finished goods. Second part predicates unassembled or assembled goods can be treated as goods complete or finished goods - Rule 1 of the Rules of Interpretation lays down that for legal purpose classification shall be determined in accordance with the terms of headings and any relative section or Chapter Notes, provided such headings or Notes do not otherwise require a different interpretation - The Division Bench has quite categorically stated that if the air-conditioning kit does not contain automotive gas compressor with or without magnetic clutch, duty is paid as per item no.8 and if it contains the automotive gas compressor with or without magnetic clutch, it will not come under item no.8 – However, if a kit and compressor are sold in a singular invoice or in one pricing, it will go out of item no.8 and duty will be paid separately, but if there are two invoices for separate pricing, the air-conditioning kit would come under serial no.8 and the automotive gas compressor with or without magnetic clutch will be liable to duty separately - The ratio laid down in Division Bench decision cannot be found to be erroneous – Appeal disposed in favour of assessee [Read less]

2015-VIL-261-MP-CE|CENTRAL EXCISE |High Court Cases | 02.07.2015

... credit on capital good – Availment of irregular credit – Imposition of duty and penalty - HELD - Imposition of penalty that also equal to the amount of the credit facility availed of in a penal consequence and a penal consequence is to be enforced only when the conduct of the assessee shows certain positive action indicating fraud, misstatement collusion etc. - The action of the assessee may be in contravention to the statutory provision but it was with a bonafide reason or belief by interpretation of a judgment of a High Court, then the imposition of penalty in such circumstances was not warranted – Revenue appeal dismiss... [Read more]

... credit on capital good – Availment of irregular credit – Imposition of duty and penalty - HELD - Imposition of penalty that also equal to the amount of the credit facility availed of in a penal consequence and a penal consequence is to be enforced only when the conduct of the assessee shows certain positive action indicating fraud, misstatement collusion etc. - The action of the assessee may be in contravention to the statutory provision but it was with a bonafide reason or belief by interpretation of a judgment of a High Court, then the imposition of penalty in such circumstances was not warranted – Revenue appeal dismissed [Read less]