Decision of the Case: The Supreme Court held that in the instant case, the contract for supply of crude sunflower seed oil @ US $ 435 CIF/ metric ton was entered into on 26th June 2001. It could not be performed on time because of which extension of time for shipment was agreed between the contracting parties. It is true that the commodity involved had volatile fluctuations in its price in the international market, but having delayed the shipment; the supplier did not increasethe price of the commodity even after the increase in its price in the international market. There was no allegation of the supplier and importer being in collusion. Thus, the appeal was allowed in the favour of the respondent- assessee.
Commissionerof Cus., Vishakhapatnam v. Aggarwal Industries Ltd. 2011 E.L.T. 641
(S.C.)
7th bit a
(i) Allowable. Finished goods are destroyed in fire during the process of fire due to spontaneous combustion & not due to negligible of the assessee. case: Shankar sugar mills 71 ELT 753 (Tri)
(ii) Allowable.Remission of duty is grantable though the assessee has received insurence claim for fire accident.But the assessee should file an affidavit before settlement,that in the event of setttlement by Insurence Company he would remit the benifit of duty paid back to the Department. case: Tulsyan Nec ltd 2007 ELT 753 (Tri)
(ii) Rule 27 of the Central Excise Rules,2002 stipulates that where no other penality is provided in the rules therein or in the Act,a breach of these rules shall be punishible with a penality which may extend to rs 5,000 & with confiscation of these goods in respect of which the offence is committed.
7th bit (b)
(i) all the records prepared or maintained by the assessee for accounting of transections in regard to,
1) providing of any services,whether taxable or not
2) receipt or procurement of input services & payment for such input services
3) receipt,purchase,manufacture,storage,sale,or delivery,as the case may be,in regard of inputs & capital goods
4) other activities such as manufacture & sale of goods,if any.
(ii) all the financial records maintained by him in the normal course of business.
(ii) objectives:
1. reduce the complaince costs of filing the return.
2. encourage the compliance with return filing obligation & vat payment through levy of penalities,in case,there is late payment of vat or late filing of returns.and
3. ensure the efficient processing of data filled in the returns.
(c)
1 inspect the goods
2 seperate damaged or deteriorated goods from the rest
3 sort the goods or change the containers for the presservation,sale,export or disposal of the goods
4 deals with the goods & their containers in such manner as may be necessary to prevent loss,deterioration or damage to the goods
5 show the goods for sale
6 take sample of the goods without entry for home consumption,if the proper officer permits,without payment of duty on such samples.
2nd bit
(a)
(I) The said statement is not valid.with effect from 01.03.2012 vide Notifications Nos 24-29 CE(NT) all dated 05.12.2011,the export procedures for nepal as been amended.The procedures prescribed for export under claim for rebate(Rule18 of Central Excise Rules,2002)vide Notification No.19/2004 CE (NT) dated 06.09.2004 & export without payment of duty under bond (Rule 19 of Central Excise Rules,2002) vide Notifications Nos 42 to 44/2001CE (NT) all dated 26.06.2001 would apply to nepal as well.This has been done inview of the revised treaty between India & Nepal.
(ii) The said statement is not valid.Rule 5 of Central Excise (remaval of goods at concessional rate of duty for manufacture of excisable goods ) Rules ,2001 has been amended vide Notifications No.13/2012 CE(NT) dated 17.03.2012 to inter alia,provided that manufacturer,receiving goods at concessional rate of duty ,has to submit a quarterly return instead of monthly return.
(iii) The following assessees have been exempted from such submission of FORM-ER4:
1) An asseessee who pays less than 1.00 crore of excise duty during the financial year to which ER-4 relates.
2) Indian Oridance Factories,Department of Defence Production & Ministry of Defence.
(b) (i) As per Rule 7 of the Point of taxation Rules,2011. (P.O.T SHALL BE 31.09.2012) of Apte & Apte Ltd.
(ii) The objective of bringing certain services with in the perview of 'declared service' under section 66E of Finance Act,1994.with effect from 01.07.2012
services fall within the scope of declared services.
1. renting of immovable property;
2. construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of certificate of completion by a competent authority;
3. temporary transfer or permitting the use or enjoyment of any intellectual property right;
4. development, design, programming, customization, adaptation, up gradation, enhancement, implementation of information technology software;
5. agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
6. transfer of goods by way of hiring, leasing, licensing or any such manner without transfer of right to use such goods;
7. activities in relation to delivery of goods on hire purchase or any system of payment by instalments;
8. service portion in execution of a works contract;
9. service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as part of the activity.
(c)
(i) service charges paid to canalizing agent cannot be treated as buying commission u/s 10(1),as he is neither an agent of the importer,nor does he represent the importer abroad.hence inculdible in assessable value.case: Hyderabad Ind ltd .ELT 593
(ii) where there is no requirement in the contract for independent inspection,and the inspection is carried out by foreign supplier on his own and is not required for the purpose of fulfilling the condition of the contract,then such charges incurred on inspection are not includible in assessable value. case: Bombay Dyeing & Mfg.(1997) 90 ELT 276(SC)
6th bit.
(b)
1) the place of provision of service is where the immovable property is located Rule 5 of Place of Provision Services Rules,2012)
2) it's place of provision shall be the location in the taxable territory where the greatest proportion of the service is provided.Rule 7 of Place of Provision Services Rules,2012)
3) place where the passenger embarks on the conveyance for a continous journey.Rule 11 of Place of Provision Services Rules,2012)
6th bit
(c) As per section 28BA,
Where ,during the pendency of any proceedings u/s 28 or 28B.
- for protecting the interest of revenue
- the officer may,with the previous approval of the commissioner,by order in writing,
- attach provisionally any property belonging to the person on whom notice is served u/s 28 or 28B.
Every such provisional attachment shall cease to have effect after the expiry of 6 months from the date of the order made under sub-section(1). chief commissioner may extend the aforesaod period but the total period of extension shall not exceed two years.
NOTE: SOLUTIONS TO OTHER PARTS I WILL PROVIDE VERY SHORTLY WITH IN 1 DAY OR MORE.