PNB fraud due to failure of internal control, says RBI.:      Celeb jeweller Nirav Modi named in PNB’s $1.77-b fraud. Bank suspends 10 officers, lodges complaint with CBI; more banks may be hit. :      Bombay High Court in a hearing on 6th Feb, 2018 says GST regime is not user friendly. :      GST Network Chairman Ajay Bhushan return simplification panel to meet industry this week to simplify the return filing process.:    Finance Secretary Hasmukh Adhia said the Government stares at a Rs 50,000 crore GST revenue shortfall in the current fiscal. :    E-Way Bill which was to be rolled-out on 1st Feb is deferred to month-end due to technical glitches.:      TN raked in 22% more GST at Rs 23,318 crore between Jul-Dec 2017, against Rs 19,018 crore under VAT in the corresponding period the previous year. :      MoS,Corp Affairs PP Chaudhary says in Rajya Sabha that Govt has detected GST evasion of Rs 5.70 Crores in 16 cases during Jul-Nov 2017 - 6th Feb 2018. :      FM, Arun Jaitley says that States are not in favour of bringing the petroleum products under GST. :      The Finance Secretary, Hasmukh Adhia says out of 7 lakh tax payers who opted for composition scheme 5 lakhs had a turnover less than Rs 5 lakhs pa, though the exemption limit is upto Rs 20 lakhs. :     

CESTAT Chennai : M/s. Solocare Medicals (P) Ltd. Vs. CCE, Chennai IV : 17th March, 2017 Featured

IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI

E/251/2009
(Arising out of Order-in-Appeal No. 18/2008 (M-IV) (D) dated 28.11.2008 passed by the Commissioner of Central Excise (Appeals), Chennai)

M/s. Solocare Medicals (P) Ltd.
Appellant

Vs.

CCE, Chennai  IV
Respondent

Appearance
Shri N. Viswanathan, Advocate for the Appellant
Shri S. Govindarajan, AC (AR) for the Respondent

CORAM
Honble Shri D.N. Panda, Judicial Member
Honble Shri Madhu Mohan Damodhar, Technical Member

Date of Hearing / Decision: 17.03.2017


FINAL ORDER No. 40510 / 2017

Per D.N. Panda

Learned counsel submits that the duty element paid on the input when sought to be set off against the ultimate liability on the finished goods, department denies the same on the ground that the input supplied was exempt from duty. It is further submission of the appellant that the Honble High Court of Madras in the case of Commissioner of Central Excise, Chennai Vs. CEGAT, Chennai as reported in 2006 (202) ELT 753 (Mad.) has held that in the scheme of MODVAT credit which is designed to mitigate double taxation, the raw material suffering duty should get exemption when it is incorporated into the final goods and the final goods suffers duty.


2. In view of the proposition of law stated by learned counsel as has been held in the above judgment of the Honble High Court of Madras, it is agreeable that the input duty paid if it has gone into the treasury, not disputed by Revenue, manufacturer-appellant cannot be denied credit thereof while that is set off against the final goods liable to duty, irrespective of the Revenues claim that the input was exempted from duty. Accordingly, appeal is allowed.


(Dictated and pronounced in open court)


(MADHU MOHAN DAMODHAR)                 (D.N. PANDA)
Technical Member                     Judicial Member
Rex

Additional Info

  • Date Range: Friday, 17 March 2017
  • Court/Authority: CESTAT
  • Tax Type: Central Excise
  • Petitioner/Appellant: M/s. Solocare Medicals (P) Ltd. Vs. CCE, Chennai IV
  • Respondent: M/s. Solocare Medicals (P) Ltd. Vs. CCE, Chennai IV
  • Appl no. or Appl year: E/251/2009
  • Supreme Court Location: Delhi
  • CESTAT Location: Ahmedabad
  • AAR Location: Delhi
  • Authority: Supreme Court

Seven questions to know if you 

are paying taxes 

correctly?

If you are the CFO or the Tax Head you ought to read this. Click Here

Our Main Services 

in Indirect Taxes

 

  • Business structuring and tax planning
  • Review of end-to-end business processes for indirect taxes
  • Strategy to prevent litigation, representation and litigation support
  • Tax compliance and tax control framework
  • Support on specific issues


 

Brief update on CESTAT judgements passed during June 2016 to July 2016. Please note this update is not a summary of the cases but only leads on important issues decided. The links to the judgments are also provided for the full text.

Click here for update

Go to top