TIOL-DDT 872 · the untouched capture
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<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 872</font><br>
26.05.2008<br>
Monday
</strong></font></div>
<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EOUs can make monthly payment of duty – officers to scrutinise the self assessment</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EOUs are at present required to pay duty consignment-wise, before each removal. Now they can follow the procedure under Rule 8, that is pay the duty by the 5th of the following month. A welcome relief indeed! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there is bad news for the officers; they are now required to scrutinise the returns and self assessments and of course the assessee is required to make available to the proper officer all the documents required by him.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessment is required to be scrutinised in the manner prescribed by the Board. The good Board will eventually prescribe the procedure.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is nothing new actually, but hardly known and followed. This is already there in Rule 12 and in respect of all other units, the returns are to be scrutinised by the Central Excise officers. And actually the Board had in <strong>CIRCULAR NO. 818/15/2005-CX, Dated : July 15, 2005</strong> prescribed the manner of scrutiny.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per this circular, scrutiny would be carried out in two stages viz. the 'scrutiny of return' and scrutiny of assessment. The preliminary scrutiny shall also involve checking and comparison of trends of payment of duty, production, clearance (for home consumption on payment of duty and under exemption and for exports), value, and CENVAT utilization to identify returns for detailed scrutiny. <strong><font color="#FF6633">Have you heard of anyone doing all this?</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Every six months, the ACs/DCs/JCs and Additional Commissioners are required to scrutinise the returns of assessees paying more than Rs. 5 Crores in PLA! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A survey made by us revealed that none of these officers do any scrutiny – of course some of them do sign on the returns after getting an oral certificate from the Superintendent that the return is “good” – some don't bother to even do that. Has any Commissioner ever checked whether his Additional Commissioners and Deputy Commissioners are scrutinising returns? The basic job of a Revenue officer is assessment and that sadly, is lacking in Central Excise and Service Tax.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today we are carrying an article from a concerned Superintendent about assessment in Service Tax. See our Guest column.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequent to the “monthly payment facility”, the Form ER-2 return to be filed by the EOUs is amended.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_23.htm" target="_blank">Notification No. 23</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_24.htm" target="_blank">24/2008 - CX. (N.T.), Dated: May 23, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Focus Product Scheme – Hand Tools added</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hand Tools covered under ITC HS Codes 8202 to 8206 are entitled to FPS benefits on exports w.e.f 1.4.2008.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn017.htm" target="_blank">DGFT Public Notice No. 17 (RE-2008)/2004-2009, Dated: May 21, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Instant Tea – DTA sales</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DTA sale of instant tea will be allowed upto 30% of FOB value of exports.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn018.htm" target="_blank">DGFT Public Notice No. 18 (RE-2008)/2004-2009, Dated: May 22, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Don't visit North Block for transfers – Govt tells IRS (Income Tax) officers</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A communiqué from the Revenue Department laments that, “Officers from filed formations are visiting the Board in order to submit advance copies of their representations regarding their transfer/postings. This adversely affects the work of revenue collections in the field formations. Moreover, such frequent visits to the Board are neither called for nor desirable and creates a situation in which a lot of time and efforts are lost and also adversely affects smooth functioning of the Government. The large number of advance copies of representations forwarded/personally handed over by the officer consumes a great amount of time and material unnecessarily.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further, this creates an impression amongst filed officers that until they visit the Board personally to pursue their cases, their transfers would not come through. Therefore, it is in the interest of maintaining administrative propriety that such things should be strongly discouraged.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Government wants the Chief Commissioners of Income Tax to ensure that their officers don't crowd the corridors of North Block. But can you really prevent an officer desperate for his transfer from wandering in the corridors of power? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will CBEC issue a similar circular?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/officermemorandum.htm" target="_blank">F.No. A-35015/6/2008-AD.VI of the Department of Revenue Dated: May 22, 2008</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Welding electrodes – credit – eligible?</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue whether Cenvat credit is available on welding electrodes used for maintenance of machinery has been a topic of divergent views even before the hallowed portals of the CESTAT. Today we carry an order of the Bangalore Bench emphatically allowing the credit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT today gives you a peep into the maze of judicial decisions on the subject.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>M/s JAWAHAR MILLS LTD, </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2002/2002-TIOL-33-CESTAT-DEL.htm" target="_blank"><strong>2002-TIOL-33-CESTAT-DEL</strong></a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>,</strong> <font color="#FF6633">the Larger Bench held, Similarly, the other items involved in these cases namely control panels, cables, welding electrodes, etc. will also qualify as capital goods under Rule 57Q and would be eligible for Modvat credit and we order accordingly.</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>JAYPEE REWA PLANT - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2003/2003-TIOL-246-CESTAT-DEL-LB.htm" target="_blank">2003-TIOL-246-CESTAT-DEL-LB</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6633"> another Larger Bench rules Cenvat / modvat not allowed on welding electrodes and gases used for repairs and maintenance of plant and machinery as they are not integrally linked with the process of manufacture for final products - Appeal rejected</font></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">A single Member in</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>STAR PAPER MILLS LTD - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2004/2004-TIOL-106-CESTAT-DEL.htm" target="_blank">2004-TIOL-106-CESTAT-DEL</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF3333">– <font color="#FF6633">held Welding electrodes and gases used in repair and maintenance of plant and machinery are not eligible inputs for credit</font></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>MODI SUGAR MILLS, </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2005/2005-TIOL-1368-CESTAT-DEL.htm" target="_blank">2005-TIOL-1368-CESTAT-DEL</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> another single member held, <font color="#FF6633">Credit is not admissible on welding electrode.</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>THE
INDIA CEMENTS LTD - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2005/2005-TIOL-67-CESTAT-MAD.htm" target="_blank">2005-TIOL-67-CESTAT </a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-
MADcase another single member held, <font color="#FF6633">Credit is admissible
on welding electrodes used for repair and maintenance of eligible capital
goods</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>TRIVENI ENGG. & INDUSTRIES LTD – </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2005/2005-TIOL-595-CESTAT-DEL-LB.htm" target="_blank">2005-TIOL-595-CESTAT-DEL-LB</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> another Larger Bench held that <font color="#FF6633">Credit is not admissible on welding electrodes as capital goods</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>M/s G H C L LTD – </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2005/2005-TIOL-714-CESTAT-MUM.htm" target="_blank">2005-TIOL-714-CESTAT-MUM</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> -another single member held, - <font color="#FF6633">Modvat credit not available on Welding electrodes used for repair of machinery & pipelines as they are not capital goods.</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In - <strong>THE INDIA SUGARS AND REFINERIES LTD - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2006/2006-TIOL-540-CESTAT-BANG.htm" target="_blank">2006-TIOL-540-CESTAT-BANG</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">, a division bench held, <font color="#FF6633">Welding electrodes, oxygen gas and Acetylene Gas used for welding the punctured pipes carrying the hot sugar juice should be treated as a part of process of manufacture and they are eligible inputs.</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>MANIKGARH CEMENT - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2007/2007-TIOL-396-CESTAT-MUM.htm" target="_blank">2007-TIOL-396-CESTAT-MUM</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> – a
Single Member held, <font color="#FF6633">Credit not admissible on Welding Electrodes used for repair and maintenance – LB decision in Jaypee Rewa followed.</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#003300">In</font></strong> <strong>J K CEMENT WORKS - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2007/2007-TIOL-70-CESTAT-DEL.htm" target="_blank">2007-TIOL-70-CESTAT-DEL</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">, sitting as a single Member Justice Abhichandani deprecated the practice of division benches not following the decisions of Larger Benches and observed, <font color="#FF6633">Faulty attitudes in a decision-making process can destroy the institutions. Decisions can be corrected only by the superior forums or on review, but when attitudes become faulty the very basis of judicial institutions would get shaken, leading to utter chaos and confusion. Therefore, this court is bound to follow the larger bench decision in preference to the decision of the Division Bench, which could not have declared a larger bench decision as overruled. Only a bench larger than the said larger bench deciding Jaypee Rewa Plant (supra) could have declared that decision to have been either expressly or impliedly overruled by a decision of a higher forum, or itself overruled it. Therefore, none of the contentions raised on behalf of the appellant warrant any interference with the impugned order of the Commissioner (Appeals), which has rightly followed the decision of the larger bench in Jaypee Rewa Plant (supra), in disallowing the cenvat credit</font> to the appellants in respect of use of oxygen gas and acetylene gas.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>M/s ADITYA CEMENT - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2007/2007-TIOL-1213-CESTAT-DEL.htm" target="_blank">2007-TIOL-1213-CESTAT-DEL</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">, a single Member held, <font color="#FF6633">Cenvat Credit on welding electrodes used for repairs/maintenance of capital goods – not eligible </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Disposing of 10 appeals in </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2007/2007-TIOL-1276-CESTAT-BANG.htm" target="_blank">2007-TIOL-1276-CESTAT-BANG</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">,
a Single Member, held,that assessees are eligible to avail <font color="#FF6633">Cenvat credit in respect of welding electrodes</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>CHHATA SUGAR CO LTD - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2007/2007-TIOL-1426-CESTAT-DEL.htm" target="_blank">2007-TIOL-1426-CESTAT-DEL</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">, a single Member held that <font color="#FF6633">Welding electrodes used for repair and maintenance of capital goods – not eligible for Cenvat credit</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>MANIKGARH CEMENT - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2007/2007-TIOL-1965-CESTAT-MUM.htm">2007-TIOL-1965-CESTAT-MUM</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">, a single Member held, <font color="#FF6633">Cenvat Credit not available on Welding Electrodes used for repairs and maintenance - judicial propriety requires that Bench follows law declared by the Larger Bench and not to adjudge the correctness or otherwise of the same</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice Abhichandani again sitting single in <strong>HINDUSTAN ZINC LIMITED - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2007/2007-TIOL-520-CESTAT-DEL.htm" target="_blank">2007-TIOL-520-CESTAT-DEL</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> held, <font color="#FF6633">cenvat credit was not admissible to the appellant on welding electrodes. </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong>I T C LIMITED - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2008/2008-TIOL-117-CESTAT-BANG.htm" target="_blank">2008-TIOL-117-CESTAT-BANG</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> – a
single Memeber held that <font color="#FF6633">Welding electrodes have a role to play in the manufacture of final products and within the ambit of “in or in relation to the manufacture of final products” . HELD Cenvat credit on welding electrodes is eligible. Appeal allowed with consequential relief if any</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Around the same time, a Single Member of the Mumbai Bench, in <strong>ACC LTD - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2008/2008-TIOL-204-CESTAT-MUM.htm">2008-TIOL-204-CESTAT-MUM</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">, held that <font color="#FF6633">Welding electrodes can neither be considered as capital goods nor as inputs - Contrary view taken by the Division Bench in <strong>India Sugar & Refineries Ltd</strong>.</font> </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2006/2006-TIOL-540-CESTAT-BANG.htm" target="_blank">2006-TIOL-540-CESTAT-BANG</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6633"> in not following the decision of Larger Bench of the Tribunal in <strong>Jaypee Rewa</strong> </font></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2003/2003-TIOL-246-CESTAT-DEL-LB.htm" target="_blank">2003-TIOL-246-CESTAT-DEL-LB</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6633"> & <strong>Triveni Engg</strong> </font></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2005/2005-TIOL-595-CESTAT-DEL-LB.htm">2005-TIOL-595-CESTAT-DEL-LB</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6633"> cannot be followed.</font></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For all this confusion who do you punish? The assessee of course!</font></strong></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5"> tiol</font> <font color="#006600">– Tomorrow ' s cases</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></font></strong></font></strong></font><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
Tax</font></strong></font> </p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Can
Special Bench remand a case to AO? - Additional evidence admitted and case
remanded - Not even law-maker can anticipate all possible situations and
as to how ingeniously human mind can work: ITAT Spl Bench</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Can
Special Bench remand?</strong> The duty of the Special Bench in the present
case, is not only to answer the question referred to it but also to dispose
of the entire appeal. Not only that, even the question referred has to
be answered in the light of the facts and circumstances of the case. No
doubt, the Special Bench has been given the power to modify or reframe
the question. But the said modification or reframing of the question cannot
change the basic structure of the question and that is, that the question
has to be answered in the light of the facts and the circumstances of the
case, which is not possible on account of the voluminous additional evidence
filed in this case. In the process, it will also be violating the mandate
given to the Special Bench to dispose of the entire appeal. Thus, on the
overall consideration of the circumstances we are put into, we feel that
in the light of the voluminous additional evidence filed by the assessee,
it would be better if the entire matter is looked into afresh by the Assessing
Officer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Law
cannot envisage all possible situations:</strong> There is another aspect
of the matter also. In the complex world of business, it is not possible
to envisage all possible situations that may arise. Not even the law-maker
can anticipate all possible situations and as to how ingenious human mind
can work. Therefore, howsoever we may try to answer the legal issues; some
questions not envisaged by us and yet arising from the labyrinth of the
material placed on record, may remain unanswered. Some ends are bound to
remain untied which may entail injustice to either or both the parties.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">burden to prove classification is upon Department - Revenue must establish that goods fall within four corners of the taxable entry: CESTAT Majority Order </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is well settled that the burden to prove the classification is upon the department. The Revenue must establish that the goods fall within the four corners of the taxable entry - in this case Chapter heading 15.11, as RPO. The Revenue has failed to prove that no hydrogenation was undertaken. The case of the Revenue at its highest is that, according to one expert Dr. Rao , presence of linoleic acid indicates that the goods are not partially hydrogenated and according to the other expert, Dr. Arumugham , TFA was not found in a measurable quantity. Dr. Rao 's conclusion cannot be accepted in the face of the admitted position that the samples were found to contain -nickel, sesame oil and vitamin A and also conform to the standards of the PFA Rules for vanaspati.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the light of the above I am of the view that the Revenue has not discharged the burden cast upon it to show that process of hydrogenation did not take place at foreign supplier's end and that, therefore, the goods are not HVO while the appellants have been able to establish to the contrary, namely, that the goods imported by them are HVO and not RPO as contended by the Revenue.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Central
Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Committee
of Commissioners - Revenue's Miscellaneous Application is ill-conceived
and defamatory for their averment that Tribunal inflicted injustice on
them – Tribunal comes down heavily on Revenue</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> Committee
business is becoming a perilous issue. Now, everyone knows that a Committee
is supposed to exist in “real terms” & not be a farce. Two
Commissioners sitting at different places presently form a Committee. Probably,
both of them may have never even met except of course during the ritual Chief
Commissioner's meetings! But the files from one Commissionerate move to another
for ‘kind approval & sign, please'. Whether it is acceptance of
an order or a review, the second Committee Member usually signs on the dotted
line. The Finance Act, 2008 has brought an element of surprise in the entire
proceedings what with the matter to be required to be referred to the Chief
Commissioner/Board for its indulgence in case of difference of opinion! Board
knows for sure that such instances would be a rarity & is only an assuaging
exercise.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns tomorrow for the judgements</font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com" target="_blank">vijaywrite@taxindiaonline.com</a></font></p>
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