Broken Bottles – Revenue wants its pound
BOARD has come to know that some assessees are claiming the benefit of duty exemption in respect of breakage of PET bottles up to 0.5% citing the Board's Instruction letter No. ID/3/70- CX8 . Now Board clarifies that these instructions issued in 1975 are no more valid because at the time of issue of this Circular, there was no MODVAT/CENVAT facility. And so all judicial pronouncements are per incuriam and for the record, the offending circular is rescinded. So the Board wants field formations to safeguard Revenue. What are they safeguarding? If Rs. Ten lakhs credit is taken, the maximum loss allowed for breakage of bottles is Rs. 5000.-. Should the wise Board be so bothered about such peanuts? Even the assesses should not be litigating about such small amounts of money.
CBEC Circular No. 930/20/2010- CX ., Dated: July 9, 2010