Central Excise Circular 877/2008

Income Tax raids the premises of several Top Notch Builders in all-India Operations-Amrapali and Paras Buildtech also on hit list of Income Tax-Cash of Rs 22 Crore recovered SC rules stock exchange card is license eligible for depreciation under Section 32 Partner of Luthra & Luthra Vineet Aneja resigns-Partner of amarchand Mangaldas Himanshu Narayan also resigns SC rules MAT companies are not subject to 80HHC(1B) CBDT extends the time limit for filing ITR-V forms relating to income tax returns filed electronically for Assessment Year 2009-10 up to 31st December 2010 or 120 days from the date of filing, whichever is later-ITR-V is accepted only at the Centralized Processing Center of the Income Tax Department at Bengalore by ordinary or speed post Major Setback for tax avoidance on merger & acquisition deals-HC rules a mere difficulty in compliance or in enforcement is not a ground to avoid observance-the transaction in question had a significant nexus with India-The essence of the transaction was a change in the controlling interest in HEL which constituted a source of income in India-The transaction between the parties covered within its sweep, diverse rights and entitlements-The Petitioner by the diverse agreements that it entered into has a nexus with Indian jurisdiction-the proceedings which have been initiated by the Income Tax Authorities cannot be held to lack jurisdiction-AIT-2010-381-HC concessional rate of duty on electrical energy removed from a SEZ into DTA or non processing areas of SEZ-Customs Tariff Notification No.91 where an assessee has paid duty of excise on wires drawn from wire rods, falling under Chapter 72, the CENVAT credit taken or utilized, of the duty or tax or cess paid on inputs , capital goods and input services used in the making of the said final product, shall not be required to be reversed-Central Excise Non-Tariff Notification No.28 when once the competent authority viz., the Assistant Commissioner was satisfied with the factum of export that the final products made by the appellant, his failure to exercise the discretionary power vested in him in the absence of any other valid reasons cannot be sustained-the appellant is entitled for rebate applied for-AIT-2010-377-HC Courier Regulations for the manual and the electronic mode-Customs Circular No.33 Outdoor catering service provided by a NGO, under Mid-Day Meal Scheme, exempted from service tax-Service Tax Notification No.47 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

JUDGMENTS

CENTRAL EXCISE

CUSTOMS

exchange rate

SERVICE TAX

INCOME TAX

VAT

FINANCE ACTS

FINANCE BILLS

EOU STPI

SEZ

DGFT

RBI

NTT

RESOURCES

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Circular No. 877/15/2008-CX
F.No.267/54/2008-CX-8

Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)

New Delhi, dated 17th November 2008.

Subject: -Clarification regarding reversal of Cenvat Credit in case of trade discount –reg.

Representations have been received from trade and industry seeking clarification on the issue whether proportionate credit should be reversed in cases where a manufacturer avails credit of the amount of duty paid by supplier as reflected in the excise invoice, but subsequently the supplier allows some trade discount or reduces the price, without reducing the duty paid by him.

2. The issue has been examined. Since, the discount in such cases are given in respect of the value of inputs and not in respect of the duty paid by the supplier, the effect of reduction of value of inputs may be that the duty required to be paid on the inputs was less than what has been actually paid by the inputs manufacturer. However, the fact remains that the inputs manufacturer had paid the higher duty. Rule 3 of Cenvat Credit Rules, 2004 allows credit of duty “paid” by the inputs manufacturer and not duty “payable” by the said manufacturer. There are many judgements of Hon’ble Tribunal in this regard which have confirmed this view.

3. In view of above, it is clarified that in such cases, the entire amount of duty paid by the manufacturer, as shown in the invoice would be available as credit irrespective of the fact that subsequent to clearance of the goods, the price is reduced by way of discount or otherwise. However, if the duty paid is also reduced, along with the reduction in price, the reduced excise duty would only be available as credit. It may however be confirmed that the supplier, who has paid duty, has not filed/claimed the refund on account of reduction in price.

4. Trade and field formations may be suitably informed.

5. Hindi version will follow.

6. Receipt of this Circular may kindly be acknowledged

Yours faithfully,

(Rahul Nangare)

Under Secretary to the Government of India.