Honeymoon of manufacturers in Excise Free Zones is over

the Appellate Tribunal was right in holding that the second reassessment proceedings were not validly initiated and thereby quashing the reassessment proceedings-the proceedings initiated by the AO for the second time under Section 147 is barred by limitation-even the proviso to Section 147 does not come into play on the facts of the case-AIT-2010-373-HC Even if the goods belong to same entry, manufacture does take place if new identifiable/marketable goods known in market emerge due to operation conducted-the process of ironing applied to the stiched brassieres prior to their packing was a process incidental to the completion of the brassieres as a manufactured product-process of purification and filtration being incidental or ancillary to the manufacture of a marketable product, the Respondent was entitled to Modvat credit on the inputs involved-AIT-2010-370-HC Larger Bench of CESTAT rules the Tribunal has ample power to condone the delay in filing the appeal including the one filed under section 35 E (4)-AIT-2010-372-CESTAT Corruption in IRS takes its toll-Deputy Commissioner of Income Tax Dhananjay Kumar arrested by CBI in Mumbai-Joint Commissioner of Customs & Excise Hemant Kothikar also arrested by CBI FM directs expediting of Cadre Restructuring in CBDT & CBEC Tariff Value for import of Brass Scrap is 3924-Customs Non-Tariff Notification No. 78 Chief Justice of Gauhati High Court Justice Ranjan Gogoi to be Chief Justice of Punjab & Haryana High Court Anti-dumping duty on imports of Acrylic Fibre originating in, or exported from Japan and Belarus-Customs Tariff Notification No.85 Prescribing SION for new product “Propylene” under Chemical & Allied Products Group-DGFT PN 7 Inclusion of Finished Leather in the Focus Product Scheme of FTP-DGFT PN 6 Exchange Rate for imported goods is Rs 47.25 per US Dollar and Rs 60.35 per EURO-Exchange Rate for export goods is Rs 46.30 per US Dollar and Rs 58.70 per EURO-Customs Non-Tariff Notification No. 77-Click on Exchange Rate for details Anti Dumping Duty under the Notification No.15/2007 is not applicable to Spandex Yarn (Elastomeric yarn)-Customs Circular No.30 Import of goods under Notification No.13/2010 for Commonwealth Games, 2010-Customs Circular No.31 Larger Bench of CESTAT rules charges towards pre-delivery inspection and after-sale-service by dealers from buyers of the cars to be included in the assessable value of cars for payment of excise duty-AIT-2010-366-CESTAT merely because there was non accounting of goods, penalty was technical and inference of clandestine removal was not called for-AIT-2010-365-HC ITAT rules provision for doubtful debts and provision for standard debts are to be taken into consideration for computation of book profit u/s. 115JB of the IT Act-AIT-2010-361-ITAT HC rules slitting of aluminum foils into customized width, mounting the same on the printing machine and thereafter printing the necessary text thereon is covered for 80IB benefit as it falls within the ambit of the term “produce”-AIT-2010-363-HC Definitive Anti-dumping duty imposed on imports of Coumarin, originating in, or exported from China-Customs Tariff Notification No. 82 Special Bench of ITAT Ruling-where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date falling beyond the last date of accounting period, the loss is incurred to the assessee on account of evaluation of the contract on the last date of the accounting period i.e. before the date of maturity of the forward contract-AIT-2010-355-ITAT-SB

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Honeymoon of manufacturers in Excise Free Zones is over

Excise Free Zone AIT News Network

NEW DELHI. The Government has disallowed the benefit of area based exemption in the State of Himachal Pradesh and Uttarakhand to those units which undertake only peripheral activities.

The CBEC has amended provisions of Notification Nos. 49/2003-C.E. and 50/2003-C.E., both dated 10.06.2003, provide full exemption from excise duty to the units located in specified areas of Uttarakhand and Himachal Pradesh; vide Central Excise Tariff Notification No. 1/2008 and Central Excise Non-Tariff Notification Nos. 3/2008 and 4/2008 all dated 18.1.2008 to exclude the benefit of area based exemption in the State of Himachal Pradesh and Uttarakhand to those units which undertake only peripheral activities.

In order to ensure genuine industrial activities in these zones, the Government has been decided that benefits of duty exemption should not be admissible to goods in respect of which only peripheral activities like preservation during storage, cleaning operations, packing, re-packing, labeling or re-labeling, sorting, alteration of retail sale price etc. take place.

Further, in respect of special category states in the North-east (States of Assam, Tripura, Meghalaya, Mizoram, Manipur, Nagaland, Arunachal Pradesh and Sikkim), the benefit of excise duty exemption has also been disallowed to units carrying out only such peripheral activities.

Thus the benefit of the Notification Nos. 49/2003-C.E. and 50/2003-Central Excise will not be available to goods which have been subjected to only one or more of the processes such as packing or re-packing of such goods in a unit container or labelling or re-labelling of containers, declaration or alteration of retail sale price, etc. Therefore, the units carrying out only such processes would not be eligible for exemption benefit and would be required to pay duty as per normal procedure.

The Government has also prescribed a quarterly return for assesses availing exemptions under the said notifications in order to create a database about the actual impact of exemptions on the industrial activities in these regions. Rule 12 of Central Excise Rules, 2002 has been amended vide Central Excise Non-Tariff Notification No. 3/2008 dated the 18th January, 2008 to prescribe for a Quarterly Return, to be filed by the assesses with the jurisdictional Central Excise Commissionerate by the 20th of the subsequent month of the quarter to which the return relates. However, for the quarter ending 31st day of December, 2007, the units have been allowed to file the return by the 20th February, 2008.

The abovesaid provisions have come into force with effect from 18th January, 2008 and are applicable to all the existing units availing the benefits of these notifications as also to new industrial units that may be set up in future.

Click here for CBEC Circular No. 863/2008

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