A manufacturing company "A", through a due process of law and by scheme of arrangement approved by Hon'ble High Court, got demerged. The existing company "A” retained its legal entity and continued to exist as a project undertaking and executed its on-going domestic/local orders. The newly formed demerged company "B" became a 100%EOU. The export orders so far handled by company “A” and the land, plant, machinery, workers, staff, all future liabilities were transferred through a scheme of arrangement as above to company “B”, while the domestic orders and present liabilties were retained by Company “A”. Company “A” retained some of the old employees and some contract labourers for carrying out its activities. A revised layout of the factory showing the areas of operation of the two companies and the High Court Order copy were submitted to Central Excise Department as well as Customs Authorities. Company “A” continued to file monthly return and other periodical reports to Central Excise Department. The Central Excise Department after obtaining recorded statements from some of the employees and managers and production staff took away some files records and other documents from the two companies and alleged that Company “A” does not have manufacturing facilities as the machinery work force etc were transferred to company “B”. It issued show cause notice disallowing the entire cenvat credit available in the books of company “A” and also the cenvat amounts already availed for clearing its manufactured goods after the demerger date. It may be noted that Company “A” continued to execute its domestic job orders. Is the Department justified in disallowing the cenvat credit? I request our expert panel for their valued opinion on this serious issue. Sorry my query is quite lengthy as my intention is to present full facts of the case. If there are any decided case laws, please let me know. Thanks a lot.

if a business entity take a contract of trunkey project. ie fabrication, irrection ad commissioning of complete plant at site in which all material labour are provided by the receiver of contract.

in this stituation what are the implecations of direct & indirect taxes for the contractor. whether on this supply of plant central excise is applicable or service tax is applicable. pls give detailed opinion on this.

regards
ashish mittal

a co. change his name but is making its sales invoice and P.o by older name. does it is a seriou thing

To Srinatha Sir,

As a mfg co we can get credit of service tax of excise payment

We have some fabricator contractor in company. some emps. are working under them

As per the contract, we have assured them to reimbers the insurance premium of emps.

Insurance company provied service bill to our contractor i.e. Bill In the name of Contractor. insurance company charged service tax in their bill.

Our contractor put the bill for reimbers the above exp with the final figer

So My Q. is that Can we get credit of the service tax which charged by insurance company?

I have purchased stock at cost of Rs.4 Lakhs form a bank which had been seized by bank from one of the manufacturing company. Now, on these goods neither bank or company has paid any excise duty. I have taken delivery at the factory premises of the company. Weather I am liable to pay excise duty on it?

Now, I want to sell these goods to a firm in which I work as an employee. I as an individual not registered under Vat, Excise etc. My firm is registered under Vat, Excise etc. Weather my firm is liable to pay excise,vat to me on purchase of these goods? What are indirect tax implication on me & my firm?

one of my client is doing edible oils business. he will purchase in tonnes and sells in pouches of one litre after refining(filtered or double filtered) whether this filteration process or pouches process will attract manufacture or it is excisable.

We are importing goods on which we are paying excise to custom department. We are passing this excise to our customer at the same amount of excise. We are filing return of excise as trader & filing return as manufacturer nil. We are below 1 Crore turnover limit. Now I want to know about what are the rules applicable for filing return as trader, form no, time of filing monthly & annual return?

1.If a SSI unit produces goods in the brand name of other SSI unit weather excise is payable by him.

2.If SSI manufacturer produces goods in the brand name of a person who is not a manufacturer but a trader (who does repacking,branding,and issue price list)

3.Does that trader will be treated as manufacturer and will he need reg. under excise

i would like to know the circulars and notification issued relating to Excise which are applicable for the November 2007 CA Final Exams

Can we take CENVAT credit/ VAT credit in respect of R & D related expenses.