215 elt 3 - bombay dyeing (sc)
This query is : Resolved
Guest
Guest
(Querist)
06 August 2011
Dear Experts please explain the ratio of the case law-
CCEx. v. Bombay dyeing & Mfg Co. Ltd [2007]
215 ELT 3 (SC)
CCEx. v. Bombay dyeing & Mfg Co. Ltd [2007]
215 ELT 3 (SC)
06 August 2011
The assessee manufactured gray fabrics from yarn. The gray fabric was exempt from excise duty under a
notification if the following two conditions were satisfied:
(i) the duty on yarn (input) was paid before claiming the exemption and
(ii) CENVAT credit for duty paid on yarn (input) was not taken.
The duty on yarn was supposed to be paid at the spindle stage. However, owing to practical difficulties the
assessee deferred the payment of duty from spindle stage to the stage of clearance of gray fabric. At this stage
the duty was paid along with the appropriate interest. The assessee took the credit for duty paid on yarn but
reversed the same before its utilization.
The Apex Court observed that both the conditions of the notification were fulfilled as duty on yarn, though paid on
deferred basis, was paid before the clearance of gray fabric on which exemption was claimed. Hence, payment
was made before stage of exemption. Further, the assessee did not utilize the credit, which it got on payment of
duty on input (yarn). The Supreme Court held that since the entry for credit was reversed before utilizing the
same, it would amount to not taking of credit. Thus, gray fabrics were subject to nil rate of duty.
notification if the following two conditions were satisfied:
(i) the duty on yarn (input) was paid before claiming the exemption and
(ii) CENVAT credit for duty paid on yarn (input) was not taken.
The duty on yarn was supposed to be paid at the spindle stage. However, owing to practical difficulties the
assessee deferred the payment of duty from spindle stage to the stage of clearance of gray fabric. At this stage
the duty was paid along with the appropriate interest. The assessee took the credit for duty paid on yarn but
reversed the same before its utilization.
The Apex Court observed that both the conditions of the notification were fulfilled as duty on yarn, though paid on
deferred basis, was paid before the clearance of gray fabric on which exemption was claimed. Hence, payment
was made before stage of exemption. Further, the assessee did not utilize the credit, which it got on payment of
duty on input (yarn). The Supreme Court held that since the entry for credit was reversed before utilizing the
same, it would amount to not taking of credit. Thus, gray fabrics were subject to nil rate of duty.
Message likes :
1 times
Guest
Guest
(Querist)
07 August 2011
Dear Sir,
Please differentiate between 'taking credit' and 'utilising'.
I assumed they were both the same.
Thank You
Please differentiate between 'taking credit' and 'utilising'.
I assumed they were both the same.
Thank You
Guest
Guest
(Querist)
08 August 2011
"Taking credit means the while booking the invoice or making the payment accounting the credit availability of CENVAT in invoice, utilizing means the same credit we are adjusting against the tax payment"
-CMA.Ramesh Krishnan
https://www.caclubindia.com/experts/taking-credit-740865.asp
-CMA.Ramesh Krishnan
https://www.caclubindia.com/experts/taking-credit-740865.asp
RAMESH KUMAR VERMA
(Expert)
11 August 2011
Actually the assessee manufactured gray fabrics from yarn. The gray fabric was exemp The assessee manufactured gray fabrics from yarn. The gray fabric was exempt from excise duty under a notification if the following two conditions were satisfied:
(i)the duty on yarn (input) was paid before claiming the exemption and
(ii) CENVAT credit for duty paid on yarn (input) was not taken.
The duty on yarn was supposed to be paid at the spindle stage. However, owing to practical difficulties the assessee deferred the payment of duty from spindle stage to the stage of clearance of gray fabric. At this stage the duty was paid along with the appropriate interest. The assessee took the credit for duty paid on yarn but reversed the same before its utilization.
The Apex Court observed that both the conditions of the notification were fulfilled as duty on yarn, though paid on deferred basis, was paid before the clearance of gray fabric on which exemption was claimed. Hence, payment was made before stage of exemption. Further, the assessee did not utilize the credit, which it got on payment of duty on input (yarn). The Supreme Court held that since the entry for credit was reversed before utilizing the same, it would amount to not taking of credit. Thus, gray fabrics were subject to nil rate of duty.
t from excise duty under a notification if the following two conditions were satisfied:
(i) the duty on yarn (input) was paid before claiming the exemption and
(ii) CENVAT credit for duty paid on yarn (input) was not taken.
The duty on yarn was supposed to be paid at the spindle stage. However, owing to practical difficulties the assessee deferred the payment of duty from spindle stage to the stage of clearance of gray fabric. At this stage the duty was paid along with the appropriate interest. The assessee took the credit for duty paid on yarn but reversed the same before its utilization.
The Apex Court observed that both the conditions of the notification were fulfilled as duty on yarn, though paid on deferred basis, was paid before the clearance of gray fabric on which exemption was claimed. Hence, payment was made before stage of exemption. Further, the assessee did not utilize the credit, which it got on payment of duty on input (yarn). The Supreme Court held that since the entry for credit was reversed before utilizing the same, it would amount to not taking of credit. Thus, gray fabrics were subject to nil rate of duty.
https://www.primeacademy.com/questions/final/IndirectTax-final-may08.pdf
(i)the duty on yarn (input) was paid before claiming the exemption and
(ii) CENVAT credit for duty paid on yarn (input) was not taken.
The duty on yarn was supposed to be paid at the spindle stage. However, owing to practical difficulties the assessee deferred the payment of duty from spindle stage to the stage of clearance of gray fabric. At this stage the duty was paid along with the appropriate interest. The assessee took the credit for duty paid on yarn but reversed the same before its utilization.
The Apex Court observed that both the conditions of the notification were fulfilled as duty on yarn, though paid on deferred basis, was paid before the clearance of gray fabric on which exemption was claimed. Hence, payment was made before stage of exemption. Further, the assessee did not utilize the credit, which it got on payment of duty on input (yarn). The Supreme Court held that since the entry for credit was reversed before utilizing the same, it would amount to not taking of credit. Thus, gray fabrics were subject to nil rate of duty.
t from excise duty under a notification if the following two conditions were satisfied:
(i) the duty on yarn (input) was paid before claiming the exemption and
(ii) CENVAT credit for duty paid on yarn (input) was not taken.
The duty on yarn was supposed to be paid at the spindle stage. However, owing to practical difficulties the assessee deferred the payment of duty from spindle stage to the stage of clearance of gray fabric. At this stage the duty was paid along with the appropriate interest. The assessee took the credit for duty paid on yarn but reversed the same before its utilization.
The Apex Court observed that both the conditions of the notification were fulfilled as duty on yarn, though paid on deferred basis, was paid before the clearance of gray fabric on which exemption was claimed. Hence, payment was made before stage of exemption. Further, the assessee did not utilize the credit, which it got on payment of duty on input (yarn). The Supreme Court held that since the entry for credit was reversed before utilizing the same, it would amount to not taking of credit. Thus, gray fabrics were subject to nil rate of duty.
https://www.primeacademy.com/questions/final/IndirectTax-final-may08.pdf
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Missed uploading GST Invoice
- Movement of goods by packers and movers - type of sale - Reg.
- RCM and same line
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- TDS Return Statement Status
- Closer of business and itc of capital goods
- Appointment of Auditor By Form ADT-1
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
