| RAC
NEWS |
1.
The Following is the list of members drawn
from Trade and Industry to represent the
Problems of Tax payers for discussion and
solution. The members are collectively known
as Regional Advisory Committee (RAC). There
are two Committees, one representing the
Organised Sector plus Service Tax Sector
and the other representing the Small Scale
Industries Sector. Both the committees generally
meet together once in three months at the
Chennai, Nungambakkam Central Excise Office
Complex. |
2.
All the Assessees in the jurisdiction of
Chennai III Central Excise Commissionerate
may avail the services of the Committee
to find attention and solution to their
problem in the realm of Central Excise and
Service Tax matters. |
3.
Assessees desirous to avail the services
of the Committee are requested to sponsor
their points through the members of the
Regional Advisory Committees whose names,
Telephone Numbers, Fax Numbers and e-mail
addresses are given below. |
4.
The present Chairman of the Committees is
Shri.Madhu Mohan Damodhar I.R.S., who is
the Commissioner of Central Excise, Chennai
III Commissionerate. The current Secretary
to the Committee is Shri. V. SOUNDARARAJAN,
I.R.S., Additional Commissioner of Central
Excise. |
| |
| REGIONAL
ADVISORY COMMITTEE FOR SMALL SCALE SECTOR. |
 |
| Trade
Notice No. 13 /2006. |
Dated:
14.3.2006 |
|
Sub:
Central Excise - Re-constitution of Regional
Advisory Committee for the Block Years 2006
and 2007 - Organised Sector and Service
Tax Sector - Constituted - Intimated. |
A
fresh Regional Advisory Committee for Organised
Sector has been constituted in this Commissionerate
for the block years 2006 and 2007. The Commissioner
of Central Excise, Chennai III Commissionerate
is the Ex-Officio Chairman and the Joint
Commissioner of Central Excise,( Technical
) is the Ex-Officio Secretary of the Committee.
The members of the Committee are the following. |
| |
| REGIONAL
ADVISORY COMMITTEE FOR ORGANISED SECTOR INCLUDING
SERVICE TAXSECTOR |
| |
|
SL.NO. |
NAME OF MEMBER AND THE ASSOCIATION REPRESENTED
(S/SHRI) |
DESIGNATION AND ADDRESS |
TELEPHONE
FAX / CELL / E-MAIL |
| 1 |
A.
MOHAMED ASHRAF
Tamil Nadu State Beedi Manufacturers
Association |
President,
36, Perambur Barracks Road,
Chennai 600 007. |
26692743,
26693676 ( Phone )
25611466 ( Fax )
sbidis@vsnl.net |
| 2 |
K.
GURUSWAMY
Madras Chamber of Commerce and Industry |
DGM
( Indirect Taxes ),
Tractors & Farm Equipment Ltd.,
35, Nungambakkam High Road,
Chennai 600 034. |
28220393
( Phone )
28260224 ( Fax )
9444012430 ( Cell )
guru@tafe.co.in |
| 3 |
LALCHAND
K. NICHANI
The Sindhi Chamber of Commerce |
Proprietor
M/s Kishandas Govindaram,
117/5, Broadway,
Chennai 600 108. |
25389422
( Phone )
25383290 ( Fax )
9841013298 ( Cell )
kgeximms@md4.vsnl.net.in |
| 4 |
S.
RAJAGOPALAN
The Andhra Chamber of Commerce |
Manager
(A & A)
Thirumalai Chemicals Limited,
25 - B, SIPCOT Industrial Complex
Ranipet 632 403 |
04172
- 244441, 2,6 ( Phone )
04172 - 244308 ( Fax )
mail@thirumalaichemicals.com |
| 5 |
P.K.
RANGANATHAN.
Hosur Industries Association |
D.G.M.
(Finance (H))
Ashok Leyland Hosur Units. |
04344-277492
( Phone )
919894447872 ( Cell )
pkr.alh@ashokleyland.com |
| 6 |
R.VENKATAKRISHNAN
Association of Indian Forging Industry |
Senior
Manager ( Accounts and Finance ),
MM Forgings Limited,
95, Anna Salai,
Guindy,
Chennai 600 032. |
- |
| 7 |
P.
RAJENDRA KUMAR
The Institute of Chartered Accountants
of India |
M/s
Sanjiv Shah & Associates,
Adarsh Apartments, II Floor,
80, Vepery High Road,
Chennai 600 007. |
25610842
( Phone )
25610892 ( Fax )
9444017087 ( Cell )
rk_sirc@yahoo.co.in |
| 8 |
R.
NAGESWARAN
SIPCOT Industries Association |
Asst.
Manager
( Accounts )
Thirumalai Chemicals Ltd.,
25 B, SIPCOT Industrial Complex,
Ranipet 632 403 |
04172
- 244441,2,6 ( Phone )
04172 - 244308 ( Fax )
nagesh@thirumalaichemicals.com |
| 9 |
K.K.
SEKAR
The Motor Vehicles and Allied Industries
Association |
Manager
- Corporate Taxation,
M/s Ashok Leyland Ltd.,
No.19, Rajaji Salai,
Chennai 600 001. |
25342141
( Phone )
25342493 ( Fax )
kks.alc@ashokleyland.com |
| 10 |
G.V.
PARTHASARATHY
Tamil Nadu Small and Tiny Industries
Association |
M/s
Integrated Products,
No.L-8,
Industrial Estate,
Guindy,
Chennai 600 032. |
044
- 22330793 ( Phone )
044 - 22345733 ( Fax )
9841561278 ( Cell )
parthasa7@yahoo.co.in |
| 11 |
K.
BADRINARAYANAN
Chemicals and Allied Export Council |
Director,
M/s Enterprising Enterprises,
Chennai - Bangalore Road,
Chembarambakkam,
Chennai 602102 |
26811251/52/53
( Phone )
044-26811515 ( Fax )
enterprising@vsnl.com |
| 12 |
The
Director of Industries,
Government of Tamil Nadu |
Directorate
of Industries and Commerce,
Chepauk,
Chennai 600 005. |
28548173
( Phone ) |
| 13 |
Y.
THYAGARAJAN
Bharat Heavy Electricals Ltd., |
Senior
D.G.M ( Finance ),
Boiler Auxiliaries Plant,
Indira Gandhi Industrial Estate,
Ranipet 632 406 |
04172
- 254518, 241115 ( Phone )
04172 - 241159 ( Fax )
ythyagu@bhelrpt.co.in |
| 14 |
V.
UPENDRAN
The Chennai Customs House Agents'
Association |
M/s
Sanco Trans Limited,
No.90, Moore Street,
Chennai 600 001. |
25224005/25225262
(D)25231124
25221657 ( Fax )
9884485285 ( Cell )
cchaa@vsnl.com |
| 15 |
S.
PADMANABHAN
Tamil Chamber of Commerce |
Director,
Sattva Business Group,
"Ambica
Complex ",
III Floor,
No.55, Arcot Road,
Kodambakkam,
Chennai 600 024. |
24834224
( Phone )
24844673 ( Fax )
9840022245 ( Cell )
sattvanc@vsnl.net |
| 16 |
D.
PARTHASARATHY
The Pharmaceuitical Manufacturer's Association
of Tamil Nadu |
Managing
Director,
Dollar Co., Pvt Ltd.,
No.1 D'silva Road,
Mylapore
Chennai 600 004. |
24995333/24995444
( Phone )
hadensa@vsnl.net |
|
|
2. The life period of the Committee
is Two years, namely Calender Years 2006 and
2007. |
|
3. The Committee will meet
once in three months or as often as the Chairman
may decide. The meetings will generally
be held at the Central Excise Commissionerate
premises at 26/1, Mahathma Gandhi Road, Nungambakkam,
Chennai 600 034 unless intimated otherwise. |
|
4. Members will be informed in
advance about the date and the venue of each
meeting. They are requested to send
their points for discussion within the stipulated
time so that those points could be included
in the agenda for discussion in the meeting. |
|
5. The functions
of the Regional Advisory Committee will
be purely advisory in nature and the Committees
are intended for resolving procedural difficulties
of general nature. The Committee may,
however, discuss any matter including policy
behind individual cases, but exclude individual
cases themselves. |
|
6. No members
other than nominated members can attend
the meeting. However, under exceptional
circumstances, the member can authorise
a person on his behalf to attend the meeting.
Any member who absents himself for three
consecutive meetings without adequate reasons
will be deemed to have been withdrawn from
the Committee and his place will be filled
up by fresh nomination. |
|
7. Assessees
paying Central Excise Duty, Customs Duty
and Service Tax in Chennai III Commissionerate
jurisdiction who desire to raise points
for discussion may sponsor their points
through any of the above members of the
Committee or by writing directly to the
Chairman, Regional Advisory Committee. |
8.
Since every Central Excise Commissionerate
is having its own Regional Advisory Committee,
it is desired that points raised be related
to matter pertaining to assessees of Chennai
III Commissionerate only. |
|
( S.C. NAYAK ) |
|
COMMISSIONER & CHAIRMAN. |
| |
|
| Trade
NoticeNo.14/2006. |
Dated:
14.03.2006 |
|
| Sub:
Central Excise - Re-constitution of Regional
Advisory Committee for the Block Years 2006
and 2007 - Small Scale Sector - Constituted
- Intimated |
A
fresh Regional Advisory
Committee for Small Scale Sector has
been constituted in this Commissionerate
for the block years 2006 and 2007.
The Commissioner of Central Excise, Chennai
III Commissionerate is the Ex-Officio Chairman
and the Joint Commissioner of Central Excise,
( Technical ) is the Ex-Officio Secretary
of the Committee. The members of the
Committee are the following. |
| |
| REGIONAL
ADVISORY COMMITTEE FOR SMALL SCALE SECTOR. |
| |
|
SL.NO. |
NAME OF MEMBER AND THE ASSOCIATION REPRESENTED
(S/SHRI) |
DESIGNATION AND ADDRESS |
TELEPHONE
FAX / CELL / E-MAIL |
| 1 |
P.R.
SUDHAKAR
Madras Chamber of Commerce and Industry |
Divisional Manager ( Indirect Taxes
) Brakes India Ltd.,
Padi,
Chennai 600 050. |
26529694
(Phone )
26259172 (Fax)
sudhakar.pr@brakesindia.co.in |
| 2 |
CHOZHANAACHIAR
RAJASEKAR
Tamil Chamber of Commerce |
Chief
Executive Officer,
Chozha
Naachiar Shipping Agency,
No.37 ( 24 ), N.S. Garden Street,
Seethaakathi Centre,
Near Clive Battery,
Chennai 600 001. |
25216535
( Phone )
25212348 ( Fax )
9841035462 ( Cell )
naachiar@yahoo.com |
| 3 |
S.
LAKSHMINARAYANAN
The Andhra Chamber of Commerce |
Secretatry,
Alathur Pharmaceuitical Manufacturers
Association
B-24, SIDCO Pharmaceutical Complex,
Althur 603 110. |
04114
- 246268 / 246353 / 246962 / 246662
( Dir )
04114 - 246362 & 044 - 24997254
( fax )
9840095883 ( cell )
apex@md2.vsnl.net.in |
| 4 |
K.
BHAGAWAN DOSS
Industrial Manufacturers Association |
Chief
Executive Officer
Doss Packaging,
C 14 / A1, Industrial Estate,
Maraimalai Nagar, 602 309. |
27454789
& 27451766 ( Phone )
9840030584 ( cell )
dosspack@vsnl.net |
| 5 |
L.K.M.
ADHI.
Hosur Industries Association |
Managing
Director,
M/s Knitvel Needles Ltd.,
A 1, , Sipcot HSG Colony,
Hosur 635 126. |
04344-276656,
276455 ( phone )
04344-276457 ( fax )
9842776455 ( Cell )
knitvelneedles@sancharnet.in |
| 6 |
P.
MUTHIAH
SIPCOT Industries Association |
Executive
Secretary,
SIPCOT Inds. Association,
No. 25 - B, SIPCOT Industrial Complex,
Ranipet 632 403 |
04172
- 244441, 2, 6 ( Phone )
04172 - 244308 ( fax )
98435 78433 ( cell )
madan@thirumalichemicals.com |
| 7 |
V.G.
DHANAPAL
Cottage Match Manufacturers Association |
Dhanapal
Match Works,
No.2, Aayakkara Street,
Kamatchiammanpet,
Gudiyattam. |
Res.054171
- 222288
9443366452 ( cell ) |
| 8 |
M.
SUNDARAM
Association of Indian Forging Industry |
Executive
Director
( Corporate Planning ),
Super Auto Forge Limited,
TS - 82/2, Mettu Street,
Ganapathy Nagar,
Ekkattuthangal,
Chennai 600 097 |
044
- 2225 2544
044 - 2225 2548
fax 044 - 2225 2547
sundaram@superautoforge.net |
| 9 |
D.
SURESH BABU
Chemicals and Allied Export Council |
Joint
Director,
CAPEXIL
Rasheed Mansion
3rd Floor,
Old No.622, New No.408,
Anna Salai,
Chennai 600 006 |
044
28292310/4713 ( Phone )
044-28295386 ( Fax )
9444004228 ( cell )
capexils@vsnl.com / capexils@dataone.in |
|
| 2.
The life period of the Committee is Two years,
namely Calender Years 2006 and 2007. |
3.
The Committee will meet once in three months
or as often as the Chairman may decide.
The meetings will generally be held at the
Central Excise Commissionerate premises
at 26/1, Mahathma Gandhi Road, Nungambakkam,
Chennai 600 034 unless intimated otherwise. |
4.
Members will be informed in advance about
the date and the venue of each meeting.
They are requested to send their points
for discussion within the stipulated time
so that those points could be included in
the agenda for discussion in the meeting. |
5.
The functions of the Regional Advisory Committee
will be purely advisory in nature and the
Committees are intended for resolving procedural
difficulties of general nature. The
Committee may, however, discuss any matter
including policy behind individual cases,
but exclude individual cases themselves. |
6.
No members other than nominated members
can attend the meeting. However, under
exceptional circumstances, the member can
authorise a person on his behalf to attend
the meeting. Any member who absents
himself for three consecutive meetings
without adequate reasons will be deemed
to have been withdrawn from the Committee
and his place will be filled up by fresh
nomination. |
7.
Assessees of Chennai III Commissionerate
desirous of raising points for discussion
may sponsor their points through any of
the above members of the Committee or directly
to the Chairman, Regional Advisory Committee. |
8.
Since every Central Excise Commissionerate
is having its own Regional Advisory Committees,
it is desired that points raised be related
to matter pertaining to units of Chennai
III Commissionerate only. |
|
( S.C. NAYAK ) |
|
COMMISSIONER & CHAIRMAN |
| |
|
| Trade
Notice No.15 /2006. |
Dated:
14.03.2006 |
|
| Sub:
Central Excise - Re-constitution of Public
Grievance Committee for the Block Years
2006-2007 - constituted - Intimated. |
The
Public Grievance Committee has
been constituted in this Commissionerate
for the block years 2006-2007. The
Commissioner of Central Excise, Chennai
III Commissionerate is the Chairman of the
Committee. The members of the Committee
are the following. |
| |
|
SL.NO. |
NAME OF MEMBER AND THE ASSOCIATION REPRESENTED
(S/SHRI) |
DESIGNATION AND ADDRESS |
TELEPHONE
FAX / CELL / E-MAIL |
| 1 |
P.K.
RANGANATHAN.
Hosur Industries Association |
D.G.M. (Finance (H))
Ashok Leyland Hosur Units. |
04344-277492
( Phone )
919894447872 ( Cell )
pkr.alh@ashokleyland.com |
| 2 |
G.V.
PARTHASARATHY
Tamil Nadu Small and Tiny Industries
Association |
M/s
Integrated Products,
No.L-8,
Industrial Estate,
Guindy,
Chennai 600 032. |
044
- 22330793 ( Phone )
044 - 22345733 ( Fax )
9841561278 ( Cell )
parthasa7@yahoo.co.in |
| 3 |
D.
PARTHASARATHY
The Pharmaceuitical Manufacturer's Association
of Tamil Nadu |
Managing
Director,
Dollar Co., Pvt Ltd.,
No.1 D'silva Road,
Mylapore
Chennai 600 004. |
24995333/
24995444 ( Phone ) |
| 4 |
Y.
THYAGARAJAN
Bharat Heavy Electricals Ltd., |
Senior
D.G.M (Finance)
Boiler Auxiliaries Plant,
Indira Gandhi Industrial Estate,
Ranipet 632 406 |
04172
- 254518, 241115 (Phone
04172 241159 ( Fax )
ythyagu@bhelrpt.co.in |
| 5 |
K.
BADRINARAYANAN
Chemicals and Allied Export Council |
Director,
M/s Enterprising Enterprises,
Chennai - Bangalore Road,
Chembarambakkam,
Chennai 602102 |
26811251/52/53
( Phone )
044-26811515 ( Fax )
enterprising@vsnl.com |
|
2.
The life period of the Public Grievance
Committee is two years, namely calender
years 2006 and 2007. The functions
of the Committee is to examine and resolve
the individual Grievances of Trade and Industry
which are not acted upon by the Field Officers
within a reasonable time on a regular basis.
The Committee will discuss Oral Grievances,
written complaints signed as well as unsighed. |
3.
Members will be informed in advance about
the date and the venue of each meeting.
They are requested to send their points
for discussion within the stipulated time
so that those points could be included in
the agenda for discussion in the meeting. |
4.
It is requested that members of Trade and
Industry may make use of this form for resolving
any complaint or grievance pertaining to
this Commissionerate by sponsoring the same
through any Members of the Committee mentioned
above. |
(
Issued from File C.No.IV/16/102/2005 CX.III |
Sd/-
( S.C. NAYAK )
COMMISSIONER. |
| |
 |
| C.No.IV/16/134/2006-Tech |
Dated:
.10.2007 |
|
MINUTES
OF THE SEVENTH MEETING OF THE COMBINED RAC
FOR THE BLOCK YEARS 2006 AND 2007 |
|
The seventh meeting of the combined Regional
Advisory Committee of both Organized Sector
and Small Scale Sector was held as scheduled
on 16.10.2007 at 15.00 Hrs. Shri. Madhu Mohan
Damodhar, Commissioner of Central Excise,
Chennai III Commissionerate chaired the Meeting.
|
| The
following members were present. |
| MEMBERS
FROM ORGANISED SECTOR |
| S/Shri. |
1.
A.Mohamed Ashraf, Tamil Nadu State Beedi Manufacturers
Association.
2. K. Guruswamy, Madras Chamber of Commerce
and Industry
3. Lalchand K.Nichani, The Sindhi Chamber
of Commerce
4. P.K.Ranganathan, Hosur Industries Association
5. K.K. Sekar, The Motor Vehicles and Allied
Industries Association
6. K.Badrinarayanan, Chemicals and Allied
Export Council
7. S. Padmanabhan, Tamil Chamber of Commerce.
8. D. Parthasarathy, The Pharmaceutical Manufacturers
Association of Tamil Nadu. |
| |
| MEMBERS FROM SMALL
SCALE SECTOR |
| S/Shri. |
1. P.R.Sudhakar,
Madras Chamber of Commerce and Industry
2. Chozhanaachiar Rajasekar, Tamil Chamber
of Commerce
3. P.Muthiah, SIPCOT Indsutries Association
4. V.G.Dhanapal, Cottage Match Manufacturers
Association |
| The following
members had taken prior leave for absence. |
| S/Shri. |
1. R. Nageswaran,
SIPCOT Industries Association
2. P.Rajendra Kumar, The Institute of Chartered
Accountants of India
3. S.Lakshminarayanan, The Andhra Chamber
of Commerce
1. L.K.M.Adhi,Hosur Industries Association
2. D.Suresh Babu, Chemicals and Allied Export
Council. |
| The following
members were absent |
1. R. Venkatakrishnan,
Association of Indian Forging Industry.
2. G.V. Parathasarathy, Tamil Nadu Small and
Tiny Industries Association.
3. The Director of Industries, Directorate
of Industries & Commerce, Government of
Tamil Nadu.
4. Y.Thyagarajan, Bharat Heavy Electricals
Ltd
5. V.Upendran, The Chennai Custom House Agents’
Association
6. M.Sundaram, Association of Indian Forging
Company
7. K.Bhagwan Doss, Industrial Manufacturers
Association |
| The following
officials from department’s side were
present. |
1. Shri V.Soundararajan,
Additional Commissioner of Central Excise
(Technical). Chennai III Commissionerate
2. Shri.C.Julian Andrews, Additional Commissioner
of Central Excise, Chennai III Commissionerate
3. Shri.S.Varadarajan, Superintendent of Service
Tax, Chennai III Commissionerate
4. Smt. N.Umashanthi, Superintendent of Central
Excise, Technical, Chennai III Commissionerate
5. Shri.J.Hirudayaraj, Superintendent of Central
Excise, Technical, Chennai III Commissionerate |
| |
2.
The Chairman while welcoming all the members,
informed that this is the last meeting of
the present Regional Advisory Committee
(both organized and small scale sector)
and thanked them for their active participation
and interaction. He further stated that
the new Regional Advisory committee for
the block of two calendar years viz., 2008,
2009 will be constituted shortly and requested
the members to inform their respective associations
to send fresh nominations, in this context. |
3.
Before taking up the points received for
the current meeting, Commissioner informed
the members about the action taken on the
issue of delay in receipt of paid challans
raised in the previous meeting. The Commissioner
informed the members that letters were written
to the GM / DGM of Indian Bank and Corporation
Bank respectively and in response the GM
of Indian Bank has informed that whenever
the customers do not furnish the mailing
address, the acknowledgements are sent to
their office addresses only and the paid
challan for e-payment are dispatched on
the next day itself. He has added that their
branches have been instructed to facilitate
quick delivery of acknowledgements to the
tax payers who make e-payment. The Commissioner
then enquired the members whether problems
still persist. Shri.P.R.Sudhakar responded
that this problem no longer exists since
automation GAR 7 and cyber receipts are
generated simultaneously. However he said
that with State Bank of India a new problem
has cropped up; that the branches are appending
the bank’s seal on the challans only
on 6th even if the payments are made on
5th of the month itself expressing fear
that this may give rise to unnecessary audit
paras. Shri.D.Parthasarathy said that the
difference in dates is due to the fact that
the banks are indicating the date of transfer
instead of date of receipt in the challans
but since as per excise law date of presentation
of the cheque / date of tendering is considered
as date of payment there is no need to fear.
Commissioner assured the member that he
is ready to take up the issue with the Bank.
Shri.D.Parthasarathy requested the Commissioner
to emphasize the point that it will be convenient
if Banks are made to indicate both the date
of receipt and date of transfer in the challans. |
3.1
The Commissioner said that in Chennai III,
only 50% compliance has been achieved in
respect of e-payment and that he does not
agree with the reasons attributed by some
of the assessees and officers for non- compliance
like bank branches not having core banking
facility, many units located in semi-urban
and mofussil areas, etc.. Shri.P.K.Ranganathan
who represented Hosur Industries Association
said that in Hosur, a meeting of the members
with Bank officials was convened and that
the problem had got settled amicably. Commissioner
appreciated the move and said that the other
members can also follow the same strategy.
Commissioner then raised a querry that when
companies are able to ensure 100% compliance
in e-payment of Income tax why difficulty
is expressed in e-payment of Central Excise
Duty/Service Tax. He advised that the strategy
which is being followed for making e–payments
of Income Tax be followed for e– payment
of Central Excise duties also to achieve
100% compliance and requested the members
to disseminate this advise to all the assessees
who are members in their Association. He
informed that the Divisional Officers have
already been instructed to take up the issue
with the Banks concerned and the assessees
and the members may feel free to bring to
the notice of their jurisdictional Divisional
Officers, in case if they come across such
problems. |
| 4. Commissioner
then took up the points received for the current
meeting for discussion. |
| Points sponsored
by Shri.K.Guruswamy, Madras Chamber of Commerce
and Industry |
| POINT NO.1: |
| Cenvat on Plastic
Crates: |
There
appears to be no clarity on allowability
of Cenvat on Plastic Crates in Chennai III
Commissionerate on account of an objection
raised by the audit team. The department
has taken the stand that the Plastic Crates
are not Inputs or Capital goods and are
not eligible for Cenvat benefit. It appears
that the approach of the department is also
based on a Board Circular 148/59/95-CX dated
13-9-1995 for inclusion of the amortized
value of the packing materials in the final
product. Even in cases of inter unit transfers
involving revenue neutral cases this issue
is raised by the audit. The Crates may also
be used as Packing Material/Containers in
some cases without which the goods cannot
be transported. |
We
humbly submit that the department is required
to follow the following decisions of the
CESTAT and the Supreme Court and allow the
Cenvat Credit without any hesitation and
close the audit paras. |
| Sl.No |
Citation |
Reference |
| 1 |
91 ELT 422 |
Collector
of Central Excise Vs Black Diomond Beverages
Ltd |
| 2 |
98 ELT 284 |
Brindavan
Agro Industries Ltd Vs Collector of
Central Excise |
| 3 |
124 ELT 603 |
Parle
Beverages Ltd Vs Commissioner of Central
Excise |
| 4 |
147 ELT 1261 |
Collector
of Central Excise Vs Chennai Bottling
Co.(P) Ltd |
| 5 |
165 ELT 232 |
Commissioner
of Central Excise Vs Denso India Ltd
|
| 6 |
52 ELT 341 (SC)
|
G.Claridge
& Company Ltd Vs Collector of Central
Excise |
|
| DISCUSSION : |
Commissioner
at the outset informed that there are two
angles to this issue. One is that the issue
has not reached its finality and the second
is that the Department has filed an appeal
in the Hon’ble CESTAT, Chennai in
the case of M/s Hema Engineering Industries
Ltd., Hosur against O-in-A No.11/2006 M-III
dated 27.12.06 which was passed in favour
of the assessee relying on the judgements
furnished above. He said that the Department
has gone on appeal before the CESTAT, inter
alia, relying upon the following case laws: |
| i) CCE, Salem
Vs. Sugavaneswara Spinning Mills Ltd., (2006-TIOL-261-
CESTAT, Chennai) and |
| ii) CCE, Salem
Vs. PKPN Spinning Mills P Ltd., [2005 (192)
ELT 541 (Tri-Chennai)] |
and
the matter is still sub-judice; that as
a consequence, Show Cause Notices will continue
to be issued but mentioned that there would
not be any adverse effect immediately since
Show Cause Notices are kept confined in
CALL BOOK and will continue to be consigned
to CALL BOOK till the issue is finally settled. |
Shri.P.R.Sudhakar
wanted to know whether a reference will
be made to Board on this issue since plastic
crates are very much an essential item which
are being used by the manufacturers. Shri.D.Parthasarathy
wanted to know under which head these plastic
crates will be recommended for inclusion,
whether under “input” or under
“capital goods”. Shri.K.Guruswamy
said that in some instances the amortized
cost of plastic crates forms part of the
assessable value and the plastic crates
are used as packing materials and are sent
along with the finished goods; that in such
cases it will be proper to classify it under
inputs. Other members intervened and informed
that it will be more appropriate if it is
classified under the head “capital
goods”. The members wanted the Commissioner
to refer this issue to Board as one of the
budget suggestions. |
| DECISION : |
| Commissioner assured
the members that if a reference is made by
members he will take up the issue with the
Board at the time of submitting suggestions
for the budget. |
| POINT NO.2 |
| Interest on Supplementary
Invoice: |
The
department is raising demand towards interest
for the payment of supplementary invoices
raised by the assessees on the ground that
the removals amounted to provisional assessment
based on a clarification issued by the Board.
This issue is raised on account of the assumption
that the Purchase orders placed by the buyer
provides for a escalation clause and therefore
the payment of duty amounted to provisional
and the interest is payable. |
We
submit that the issue is covered by number
of Tribunal decisions and the demands are
not justified when the payment of duty on
supplementary invoice is made by the assessee
on the due dates. |
| Sl.No |
Citation |
Reference |
| 1 |
215 ELT 70 |
H.V.Axler
Ltd Vs Commissioner of C.E |
| 2 |
215 ELT 102 |
Commissioner
of C.E. Vs Rajasthan Explosives &
Chemicals Ltd
(168 ELT 466) Machino Montell (I) Ltd
followed |
| 3 |
215 ELT 208 |
Commissioner
of Central Excise Vs D.K. Electrical
Industries |
| 4 |
214 ELT 550 |
Commissioner
of C.E Vs Kalyani Carpentra Special
Steel Ltd |
|
| The above issues
may be placed before the RAC for consideration
by the members to have discussion on the subject. |
| DISCUSSION : |
Shri.P.R.Sudhakar
said that in most of the cases, there is
no escalation clause involved and whatever
value adopted at the time of clearance of
goods is the final price; that price revisions
are achieved due to persistent efforts taken
by the seller with the buyer and normally
inordinate time is taken in finalising the
price. Demanding interest on such differential
amounts from the date of clearance puts
enormous burden on small assesees. Shri.D.Parthasarathy
intervened and said that in such cases,
cenvat credit is availed on such differential
amounts only from the date of raising of
supplementary invoice and demand of interest
from the date of original clearance definitely
affects small assessees. The members wanted
the issue to be taken up with the Board
/ Ministry. |
| DECISION |
Commissioner
informed that the Board has issued instructions
on this issue very recently i.e. in March
2006 only and has taken a firm decision
to demand interest under Section 11AB of
Central Excise Act from the date of original
clearance in cases where supplementary invoices
are raised due to upward revision of price
of the goods. Further informed that Circulars
of the Board are binding on the department
till they are withdrawn and hence there
is no alternative but to continue with the
issuance of show cause notices. However
he advised that if the members are aggrieved,
they may take up the issue, directly with
the Ministry, through their federations. |
| Points sponsored
by Shri.L.K.M.Adhi, Hosur Industries Association |
| POINT NO.3 |
| Eligibility to
avail Service tax credit by a manufacturer
who is not a Service Provider: |
A
manufacturing unit is registered under CENVAT
rules and avails credit on their inputs
and pays duty at normal rates on their sales.
The Unit has no taxable services under Service
Tax and as such is not registered under
the Service Tax rules. However, they receive
input services on which service tax is paid.
Clarification is required on whether the
input service tax can be availed and set
off against the excise duty payable without
having a service tax registration. |
| DECISION: |
Commissioner
answered in the affirmative. He said that
the tax paid on input service can be taken
provided such input service is received
and used by the manufacturer, whether directly
or indirectly, in or in relation to the
manufacture of final product. |
| POINT NO.4 |
| Rejected goods
- re-sold – need for insertion of a
separate entry in ER 1: |
Goods
sold by manufacturing units sometimes gets
rejected by the customer and returned on
a valid excise invoice and credit is taken
on the duty paid. The goods are repaired
and re-sold again on a sale invoice. Since
these goods are not manufactured products,
a separate stock register is maintained.
While submitting the monthly returns in
the ER1, the sales are reflected and in
case of rejected goods received and re-sold,
the ER1 shows an additional quantity of
sales and duty payments. However, the accounts
book of the Company do not reflect this
re-sale of the rejected goods as there is
only one sale. In the ER1 returns, there
is no provision to reflect such customer
rejected goods received and re-sold. |
| Clarifications
required as to how such transactions are to
be informed to the department. |
| DECISION : |
Commissioner
said that the point is taken note of and
a reference will be made by the Commissionerate
for incorporation of a separate column/heading
to indicate such removals in the ER-1 returns.
Commissioner further advised that in the
interregnum all such removals may be indicated
by way of a footnote or annexure to the
ER 1 returns. |
| POINT NO.5 |
| Interest demand
on supplementary invoices raised: |
| This point has
been discussed in the past RAC meetings. The
current status of CBEC's decision may kindly
be informed. |
| DECISION : |
| The decision given
for Point No.2 applies. |
5.
Commissioner then enquired whether there
are any fresh points. Shri.D.Parthasarathy
wanted to know whether all assessees who
are paying Service Tax can submit their
returns through e-filing. Commissioner answered
in the affirmative.
5.1 At this
juncture Commissioner informed that 9 service
tax assessees who are required to make e
– payment mandatorily are yet to comply
with the instructions. Commissioner wanted
the RAC members to take up this issue with
these 9 assessees. Shri.P.R.Sudhakar assured
to take up the matter provided the details
of these assesses are furnished. He also
wanted to know whether instructions on the
procedure to be followed has been issued
by the Department and asked for copy of
the same. Commissioner informed that elaborate
instructions have already been issued on
this matter. Commissioner assured that the
entire procedure will be re-circulated among
the RAC members.
5.2 Shri.Mohammed Ashraf wanted to know
whether any clarification has since been
received from the Board regarding levy of
service tax on Commission paid to Foreign
Agents. Shri.K.Gurusamy also wanted to know
the latest development on this issue since
he has also made a reference to Chief Commissioner
on this issue. Commissioner informed that
the issue is sub-judice and Board has not
issued any instructions on this issue.
6. Shri.K.K.Sekar
said that difficulties are being faced in
availing exemption under notification 108
/ 95 dated 28.08.95; that the exemption
is being questioned if supplies are made
to the contractors instead of to the projects.
He wanted this issue to be clarified by
the Board for which Commissioner requested
the member to submit a detailed representation.
Commissioner assured the member that the
matter will be referred at the time of furnishing
suggestions for budget.
The meeting ended with the chairman expressing
thanks to the members present. |
(MADHU MOHAN
DAMODHAR)
CHAIRMAN - RAC |
To
1. All the Members of RAC
2. The Chief Commissioner of Central Excise,
Chennai Zone, for information.
3. All the Commissioners of Central Excise,
for information.
4. As per the Mailing List |
|
|
