Dear Sirs,

Would you please tell me about the circular of Cetnral Excise under which an E.O.U. can purchase HSD (High Speed Diesel)without payment of duty from Depot as well as Refineries.

Kindly tell me asap.

Regards

what is revised return date under excise act.

We are the manufacturers of the A C Generators (Alternators), D C Motors and Wind Generators. In order to manufacture these goods we have to use electrical stampings, and these Electrical stampings are manufactured & supplied by our Job workers out of the Steel Sheets (raw materials) supplied by our Suppliers on our behalf i.e on Consignee basis. Since the Steel sheets (raw material) are directly delivered by our suppliers to our job workers premises, Job workers are entitled for availing the Cenvat Credit on such goods and availing the same.

Further, during the course of manufacture of Electrical Stampings, Steel Scrap is also generated as a by-product; the job workers are discharging the Excise duty both on finished goods i.e Electrical Stampings as well as Steel Scrap and sending back to us, since we are the owners of the entire material. On receipt of Electrical Stampings, being our inputs we are availing the Cenvat credit on strength of our Job Worker Duty paid document. Similarly, we are also availing the Cenvat Credit on Steel Scrap received by us, on the strength of our Job Worker Duty paid document.

Now, the Department has raised an objection, that we are not eligible to the take the Cenvat Credit on Steel Scrap which sent back by the job worker. The department is denying the Cenvat Credit on steel scrap; since the Steel Scrap is not an input for us


Now, my question is whether STEEL SCRAP GENERATED & CLEARED FROM THE JOBWORKERS PREMISES ON PAYMENT OF DUTY AND THE SAME IS RECEIVED BY THE PRINCIPAL MANUFCATURES is eligible for Cenvat Credit or not. If there are any case laws on the above subject mentioning of which may be of great help.

A PLAIN READING OF CENVAT CREDIT RULES SUGGEST THAT THERE IS NO NEED FOR AN EXCISE PAID INPUTS TO BE CONSUMED IN ORDER TO TAKE CREDIT ON CLEARENCES EFFECTED BY A UNIT. IN OTHER WORDS THERE IS NO ONE TO ONE CORELATION BETWEEN CONSUMPTION OF INPUTS AND AVAILMENT OF CREDIT FOR CLEARANCES OF FINAL PRODUCTS IS MY CONTENTION RIGHT?

WE HAVE ONE EOU UNIT WHO HAVE PURCHASES ITS MACHINERY FROM TRADER OF MACHINERY WITHOUT ISSUING CT -3 FORM OR TAKING ANY DUTY EXEMPTION . NOW WE WANT TO REMOVE THIS MACHINERY FROM OUR UNIT AND SALE IT TO CUSTOMER . WHAT IS THE PROCEDURE FOR THE SAME. DO WE HAVE TO PAY ANY DUTY ON THE SAME. PLEASE PROVIDE RELEVANT NOTIFICTAION DETAILS ON THE SAME.

ALSO WE HAVE PURCHASES MANY CONSUMABLES FROM SMALL SCALES UNITS WITHOUT ISSUNG ANY CT-3 IN THIS EOU . THIS CONSUMABLES SCRAP WE WANT TO DISPOSE OFF WHAT IS THE PROCEDURE FOR TEH SAME

We are a 100% Export Oriented Unit under EHTP scheme. We are into manufacaturing and export of transformer cores and our LOP also specify that. As we understand that under 100% EOU scheme, trading activities are not permissable. We plan to open a branch office under the same (present) name & style but not covered under 100% EOU scheme and carry out trading activity there - both existing unit and proposed branch unit will have common 'head office. Please advise if we can open a branch and do trading acvitity without availing EOU benifits ?

Regds/OP Shrestha

hi,

what is the present limit for service tax exemption and limit for registration? where will I get the whole text?

and within what period revised return can be filed under service tax.

thanks and regards

sonika

What is the meaning of Bought Out Items which is includible in the Assessable Value of goods? Give Examples....

We are importer of Computer Hardwares. We pay following duties of cutoms on value of the imports.

Counter vailing duty
Additional duty of custom
Duty handling fee
Education cess
S.tax 12.00 %
Education cess 2.00%
Higher education cess 1.00%

We sell these products in India after charging VAT on the same. We also provide services in connection to installation of these components to the client and charge separately for that alongwith Service tax.

We want to know that Can we claim the benefit of any of the above custom duties paid against the service tax and if yes, under which head?

We have also come to know that we can pass on the benefit to claim the CVD to the customer if we raise the CENVATable invoice. This invoice can be raised only if we are registered under Central Excise Act as ‘First Stage Dealer’. Please let us know the procedure of registration and implications of the registration. What all are the records that we need to maintain if we register as First Stage dealer? What are the other related rules for ‘First Stage Dealers’? and what other benefits/disadvantages are there? What all returns are required to be filed after registration?

Can my customer claim CVD back in cash or he can take only set-off against the excise duty/service tax? Do we need to disclose the original import invoice to our customers? If he customer is in SEZ who does not have any duty liability, can he claim the CVD back in cash?

Is there any other way, such as at the time of importing we can directly endorse the invoice in the name of customer and he can claim CVD back?

If the Hardware Components purchased by the customer is capitalized by the customer, then what is the accounting treatment he should do? Can he claim depreciation benefit on the whole amount of capital purchase? And claim duty ?

Does he have to claim duty in phases over 2 years (i.e. 1st year 50% and rest in 2nd year?)

Is there any other harm in claiming duty back, such as if we do not claim the benefit of credit, we get depreciation deduction under income tax @ 33.99% of depreciation amount?

Is there any duty of custom that we/our customer can claim back? What is the rationale behind giving back this credit by the government?


Please answer this as soon as possible.... It is very very urgent.

Query no 1: Cenvat credit eligible for dta clerances by EOU/STP/EHTP as per cenvat credit rule 3 is

Assessable value * (1+BCD/400) * (CVD/100)

This formula holds good when there was an exemption of 75% of customs duty for such DTA clearances. But according to notification no 10/2008, customs duty exempted is only 50%. In this situation the credit calculated using formula given in rule 3 does not hold good as it considers the old exemption of 75%. In my opinion the formula should be

Assessable value * (1+BCD/200) * (CVD/100) What stand should i take in this situation ?

Query no 2: In the above formula (as per rule 3) , education cess and SHEC on (BCD+CVD) is not considered for the purpose of taking credit. It is apt by not considering BCD for the purpose of cenvat credit as it is not available as per rule3. But why EC and SHEC are not considered , as credit is also available on them as per rule 3 ????