Appeals filed by Revenue on basis of an invalid Review authorization deserve to be dismissed as not maintainable
CCE, Ahmadabad – II Vs. Ankit Textiles & Others [2014-TIOL-2194-CESTAT-AHM]
The present appeal has been preferred by the Revenue before the Hon'ble CESTAT, Ahmadabad in terms of the Review Order No.R-02/2008, dated January 08, 2007 (the Review Order)signed by the Chief Commissioner of Central Excise, Ahmedabad and the Chief Commissioner of Central Excise, Vadodara against the Order-In–Original passed by the Commissioner of Central Excise, Ahmedabad – II (OIO).
Ankit Textiles and others ("the Respondents") argued that the notified Review Committee of two Chief Commissioners had been constituted vide Notification No. 24/2005 – CE (NT) dated May 13, 2005 ("the Notification")for Ahmedabad Central Excise Commissionerates. The members of the said committee arethe Chief Commissioner of Central Excise, Ahmedabad and the Chief Commissioner of Customs, Ahmedabad authorized to review the orders passed by CCE Ahmedabad-I, II, III, Bhavnagar & Rajkot Commissionerates. Hence, the appeals filed by the Revenue are not maintainable as the competent committee of Chief Commissioners signing the authorization is not a committee constituted by the Central Government under the Notification.
The Hon'ble CESTAT, Ahmedabad relied on the following cases:
- CST Vs L. R. Sharma & Co. [2014 (33) STR 319 (Tri-Del)] and
- CCEVs Honda Motorcycles & Scooters india p. ltd [2014 (302) ELT 388 (Tri-Del)]
and held that the appeals filed by the Revenue on the basis of an invalid Review authorization deserve to be dismissed as not maintainable on this ground alone, without further going into the merits of these proceedings.
Accordingly the Hon'ble Tribunal upheld the OIO and rejected the appeals of the Revenue as non-maintainable.
Cenvat credit of transferred unit cannot be denied when all assets & liabilities transferred to Assessee
Jai Corporation Ltd. Vs. CCE Vapi [2014 (11) TMI 29 – CESTAT AHMEDABAD]
Jai Corporation Ltd. (the Appellant) is engaged in the manufacture of synthetic blended/spun yarn falling under Chapter sub heading 55095100 and 55092100 of the Central Excise Tariff Act, 1985. The Appellant had taken over a defunct unit namely Santogen Spinning Mills (the Unit) from Assets Reconstruction Company (India) Ltd (ARCIL) which was taken over under SAFARESI Act by the bankers and handed over to ARCIL. ARCIL is an Assets Reconstruction Company which is formed under the provisions of Reserve Bank of India Act, 1934.
ARCIL had taken over the Unit on June 6, 2005 and thereafter appointed various custodian-cum-agents who carried out manufacturing activity in their name without obtaining Central Excise Registration and without following any Central Excise procedure by following the Notification No.30/2004-C.E. dated July 09, 2004 as amended by Notification No.10/2005-C.E. dated March 1, 2005and
finally it sold out to the Appellant. The Appellant took fresh Central Excise Registration on December 9, 2005 to carry out manufacturing activity following the procedure of Central Excise laws.
The Appellant in his Excise Return claimed Cenvat credit of Rs. 1,57,09,460/- showing asold Cenvat credit balance transferred from the unit taken over by them.
The Department denied Cenvat credit so transferred from the Unit as wrongly availed and initiated proceedings for its recovery along with interest and penalty which was further confirmed bythe Adjudicating Authority. Being aggrieved, the Appellant filed an appeal before the Hon'ble CESTAT, Ahmedabad.
The Hon'ble CESTAT, Ahmedabad, after elaborate discussion on Rule 10 the Cenvat Credit Rules, 2004 ("the Credit Rules") held that:
- The sale certificate issued by ARCILclearly transpires that the entire property of the Unit was handed over to the Appellant with all the encumbrances and liabilities which are known and unknown;
- The Appellant had fulfilled all the conditions of Rule 10 of the Credit Rules and procured all the assets and liabilities from ARCIL, which would include Cenvat credit balance lying in Books of account of the Unit;
- Having accepted the entire assets and liabilities together, the Appellant cannot be denied Cenvat Credit which is lying in balance as unutilized credit in the Books of account of the Unit;
- Even after surrender of registration certificate, the Appellant chose to retain Central Excise record which made it clear that they wanted to make a debit entry even after surrender of licence.
Accordingly,the Hon'ble Tribunal allowed the Cenvat credit to the Appellant, lying unutilized in the Books of account of the Unit.
Acquisition/Transfer of Immovable property in India – Payment of taxes
RBI/2014-15/307
A.P. (DIR Series) Circular No. 38
A.P. (DIR Series) Circular No. 38
Dated- November 20, 2014
To
All Category – I Authorised Dealer Banks
Madam/ Sir,
Acquisition/Transfer of Immovable property – Payment of taxes
Attention of Authorised Dealers in Foreign Exchange is invited to Foreign Exchange Management (Acquisition and Transfer of immovable property in India) Regulations, 2000 notified vide Notification No. FEMA 21 /2000-RB dated 3rd May 2000 as amended from time to time.
2. It has been observed that doubts persist in the members of public regarding requirement of payment of taxes while undertaking property transactions under these regulations.
3. In this connection, it is clarified that transactions involving acquisition of immovable property under these regulations shall be subject to the applicable tax laws in India.
4. Reserve Bank has since amended the Principal Regulations through the Foreign Exchange Management (Acquisition and Transfer of immovable property in India) (Amendment) Regulations, 2014 notified vide Notification No. FEMA.321/2014-RB dated September 26, 2014 c.f. G.S.R. No.733(E) dated October 17, 2014.
5. Authorised Dealers may bring the content of this circular to the notice of their constituents concerned.
6. The directions contained in this circular have been issued under Section 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully
(C D Srinivasan)
Chief General Manager
Chief General Manager
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