Udyog Tax News Flash

December 2013

Customs: exchange rates notified

The CBEC has notified exchange rates for customs purposes for nineteen currencies under section 14 of the Customs Act 1962, effective from 6 December 2012. The rate of the pound sterling under this notification is Rs 102.30 for imported goods and Rs 100.05 for export goods. The rate of the US dollar is Rs 62.30 for imported goods and Rs 61.30 for export goods. The notification 117/2013-Customs (NT) dated 5 December 2013 can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csnt2013/csnt-117-2013.htm.

Customs: Anti-dumping duty polypropylene from Oman revoked

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Anti-dumping duty had been levied on polypropylene from Oman, Saudi Arabia and Singapore, vide notification 119/2010-Customs dated 19 November 2010. On 30 December 2011 it was withdrawn for the said goods exported from or originating in Saudi Arabia. Now, vide notification 32/2013-Customs (ADD) dated 2 December 2013, the duty on imports of the said goods originating in or exported from Oman has been withdrawn. The notification can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csadd2013/csadd-32-2013.htm.

Customs: specified anti-TB drugs & diagnostic equipment exempted

The central government has issued notification 49/2013-Customs dated 29 November 2013 to exempt specified anti-tuberculosis drugs and diagnostic equipment from import duties, subject to production of a certificate from the Ministry of Health and Family Welfare that they are required for the Revised National Tuberculosis Control Program. The exemption is valid up to the end of September 2015. The exemption is valid up to the end of September 2015. The notification can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/cstarr2013/cs49-2013.htm.

Central excise: specified anti-TB drugs & diagnostic equipment exempted

The central government has issued notification number 30/2013-CE dated 30 November 2013 exempting specified anti-tuberculosis drugs and diagnostic equipment from excise duty, subject to production of a certificate from the Ministry of Health and Family Welfare that they are required for the Revised National Tuberculosis Control Program. The exemption is valid up to the end of September 2015. The notification 30/2013-CE can be seen at http://cbec.gov.in/excise/cx-act/notfns-2013/cx-tarr2013/ce30-2013.htm.

Central excise: assessable value to be computed net of liquidated damages

The Larger Bench of the CESTAT answered a reference on the subject by holding that when a penalty for late delivery is deducted from the price payable by the buyer, it is the actual price payable after such deduction that constitutes the assessable value of the goods. This was decided in appeal no. E/251 to 253/2009 of CCE Hyderabad-IV v Victory Electricals. A narration of the case can be perused at http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail. php3&newsid=19170

Central excise: credit allowed on items assembled into immovable plant

It has been an ongoing controversy in central excise: can Cenvat credit be taken on items that will be assembled into something that will become fixed to the ground and immovable? The reasoning to say that such credit is not admissible is that the resulting item, being immovable property, is not goods. In a case of JSW Ispat Steel, the items in dispute were various machinery, equipment, appliances and parts, which were assembled at site into an oxygen plant, and the said oxygen plant was immovable property. In appeal number E/285 & 345/2012, the Mumbai bench of the CESTAT allowed the credit, observing that the Cenvat Credit Rules do not envisage that the capital goods brought into the factory have to be used as such in the manufacture of excisable goods and that they cannot be assembled into a plant. The CESTAT remarked that, So long as the individual machinery, equipment or appliance or parts and components thereof fall within the definition of capital goods under Rule 2(A) of the Cenvat Credit Rules, 2004 and so long as they are used within the factory of production for the manufacture of excisable goods which are chargeable to duty, the benefit of capital goods credit cannot be denied and we hold accordingly. A narration of this matter can be perused at http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail. php3&newsid=19121.

Consequence of not filing crossobjections to department appeal

It is dangerous to be complacent if the adjudicating or appellate authority gives an order in your favour but for the wrong reasons. In the case of Securipax India Private Limited, which had taken credit on inputs stored outside the factory premises, the Commissioner (Appeals) gave an order allowing the credit, remarking that it was never alleged that the credit had been taken before receipt of the inputs in the factory. The assessee never filed appeal or cross-objections on this point, and it finally cost them over Rs 30 lakhs of Cenvat credit when the Revenue succeeded in its appeal against the order. The judgment of Allahabad High Court upholding the CESTAT order against the assessee can be downloaded at the following link, by entering the case number as Central Excise Appeal no. 73 of 2004: http://elegalix.allahabadhighcourt.in/elegalix/StartWebSearch.do

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Updated and written by Radha Arun [radha.arjuni@gmail.com], Consultant to Udyog Software (India) Ltd.
Udyog Software (India) Ltd. www.udyogsoftware.com Phone: 022-67993535 Email: ca-service@udyogsoftware.com | sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.