Indian Tax Solution

Settlement Commission

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2008-ITS-006-SETTLEMENT-IN RE : MARSHAL POWER AND TELECOM (IND) LTD. , dated 6-9-2007

 Illegal/Without permission DTA sales of goods manufactured using indigenous raw material and capital goods - They are entitled to benefit of Notification No. 8/97-C.E. as applicable goods cleared with permission.

2008-ITS-005-SETTLEMENT-IN RE : SALASAR IMPORTS , dated 31-8-2007

Misdeclaration - Non-cooperation by applicant - Appellants admitted entire duty liability of present imports but did not admit liability in the case of 33 imports out of 35 in the past - Applicant coming before the Commission to make full and true disclosure of entire duty liability including provisional assessments - Co-applicant, a jobless labourer made as proprietor of applicants firm indicating intention to evade duty and to put the blame on him if they are caught

2007-ITS-004-SETTLEMENT-IN RE : K. RATHOD & COMPANY , dated 14-8-2007

Clandestine manufacture and removal of goods admitted - Duty already paid within due date of payment and interest not payable - Prompt amendments made by applicant by paying up the duty involved and co-operation extended during the proceedings

2007-ITS-002-SETTLEMENT-IN RE : GLOBAL IMPEX , dated 13-8-2007

From admitting an additional duty liability of Rs. 2.85 Lacs approx. applicant agreed to Bench’s suggestion and agreed to pay full additional duty liability of Rs. 14 Lacs approx. thereby increasing his liability to about Rs. 11 lacs - Immunity granted from payment of penalty and prosecution - Customs duty settled at Rs. 13,86,276.50 and balance to be paid within 30 days

2007-ITS-059-SETTLEMENT-IN RE : ITALIA DIE MOULDS , dated 9-7-2007

Maintainability of - Section 32E(1)(a) of Central Excise Act, 1944 - Requirement that applicant has to file returns for relevant period showing production, clearance and Central Excise duty paid in prescribed manner is mandatory - Plea that just before approaching Settlement Commission, they filed returns for past period not tenable - Settlement application not maintainable.

2008-ITS-004-SETTLEMENT-IN RE : FLEMINGO (DFS) PVT. LTD., dated 4-6-2007

EXIM - Sale through duty free shop - Requirement of certification of placement of those goods on board vessel by Revenue officer, satisfied - Non-tallying of signature of buyers with those available on record with Department - Allegation thereof made on visual comparison of signatures

2007-ITS-065-SETTLEMENT- IN RE : SHALIMAR REXINE INDIA LTD. , dated 29-5-2007

 Section 127B(1) of Customs Act, 1962 - Interpretation of - Punctuation mark “semicolon” employed in between two clauses (a) and (b) to Section 127(1) ibid, first proviso is to be necessarily read as “and” and it therefore, follows that both the criteria have to be satisfied for entertaining an application for settlement under the Customs Act, 1962

2007-ITS-005-SETTLEMENT-IN RE : BRIGHT STAR HOTELS PVT. LTD. , dated 25-4-2007

Luxury cars imported with EPCG benefit but registered for non-commercial purpose without prospect of earning foreign exchange with their use - No evidence brought on record by Revenue to show their use by private individuals - Immunity from penalty and prosecution granted - Immunity granted from interest and redemption fine not granted - Confiscation for violation of EXIM Policy ordered

2007-ITS-021-SETTLEMENT-IN RE : GURUKRUPA METAL RECYCLING , dated 19-4-2007

Onus lies on Department to prove that amount so found with appellant was sale proceeds of offending goods - For want of evidence, seized currency not liable to confiscation - Section 121 of Customs Act, 1962.

2007-ITS-071-SETTLEMENT-IN RE : YAMAHA MOTOR INDIA PVT. LTD. , dated 9-4-2007

Applicant made true and full disclosure of entire amount of Cenvat credit wrongly availed and reversed credit - Applicant also deposited/reversed total duty demanded in show cause notice - Applicant deposited the entire amount towards interest liability before issuance of show cause notice - Amount of total duty liability towards inadmissible Cenvat credit has been deposited and is appropriated towards such liability - No further duty payable

2007-ITS-006-SETTLEMENT-IN RE : PEACOCK PIGMENTS (P) LTD. , dated 22-3-2007

Assessee removed goods clandestinely without issue of invoices and part of value realised in cash from customers - Due to non-availability of sales invoices/bills of applicant for sale and realisation by way of actual sale price, final value/price realised on such goods cannot be considered for cum-duty-price - Demand sustainable

2007-ITS-039-SETTLEMENT-IN RE : SURYA HERBAL LTD. , dated 20-3-2007

Cenvat credit claimed and reversed - Deduction from duty - Request by applicant - Applicant admitted duty liability as proposed in show cause notice with claim to cum-duty price benefit for purposes of valuation and deduction of Cenvat credit claimed and reversed from demand - Revenue agreeable to claims - Applicant made true and full disclosure of duty liability already been deposited

2007-ITS-057-SETTLEMENT-IN RE : STEEL AUTHORITY OF INDIA LTD. , dated 15-2-2007

Ladle slag cleared from slag heaps - Sale of goods is by tender and parties giving the tenders are in no way related/connected to the applicant and there is no flow back of any money - Slag lying in slag heaps and skull scraps are two different products and hence the valuation cannot be correlated - Separate independent tenders to independent parties are also invited for two products establishing the fact that they are separate products and not comparable

2007-ITS-049-SETTLEMENT-IN RE : SCM TEXTILE PROCESSING MILLS , dated 31-10-2006

Duty liability - Applicant not recognized for processing of Polyvastra as required under Notification No. 8/96-C.E. - Applicant pleading that their branch (MDP) had approval of KVIC for processing such fabrics - Since MDP is a separate organization with a separate name and identity, they cannot be recognized as a branch of applicant - Benefit of notification cannot be extended to applicant in respect of polyvastra processed by them when it was not an organization approved by them - However applicants entitled to benefit of exemption in respect of Khadi fabrics processed by them under Notification No. 8/96-C.E.

2007-ITS-105-SETTLEMENT-IN RE : SILICON GRAPHIC SYSTEMS (I) PVT. LTD. , dated 25-9-2006

Contemporaneous import - Value of identical goods covered by other bill of entry of applicant be taken and some minor differences which do not alter the character of being identical goods not relevant - Adoption of value of goods imported by other importer from same supplier for valuation of applicants goods upheld - Applicability of Rule 5 of Customs (Valuation) Rules, 1988 upheld - Extra goods to be valued under Rule 8 ibid - Applicant directed to deposit the balance duty amount within 30 days of receipt of order failing which interest @ 18% p.a. payable


Editor's Column

Huge relief for manufacturers -No GST payments on advances received for supplying goods

On Wednesday, the Central Government spared businesses from paying GST on advance amounts they have received for goods which are to be supplied later in the future. The step was aimed to help clear the confusion over tax liabiliti ...