08 September 2010
CAN WE TAKE SET OFF OF SER.TAX PAID ON FREIGHT AGAINS EXCISE. AND IF IN TRUCK BOTH EXCISEABLE AND NON EXCISABLE GOODS ARE SENT THAN ON WHICH AMT SET OFF WILL BE AVAILABLE
11 September 2010
It seems to be outward freight as both excisable and exempted final product has been loaded. The credit in relation to exempted goods will not be available. But the credit of dutiable goods will be available if three conditions in circular 97/8/2007 are satified which are :-1. FOR destiantion sale; 2. damages are in your account; and 3. excise duty is paid on value including freight amount. This view has been affirmed by P&H High Court in case of Amubja Cenent. If these conditions are not satisfied then there is dispute on availablity of credit. The larger bench in case of ABB LTD has given verdict in favour of manufacturer but the department has gone in Karnataka HC. The stay against this order is granted to department and matter is still pending.
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