We are an Export Oriented Unit (EOU). We want to de-bond into DTA. What is the duty payable on in-process goods and how should these be valued?
Stocks-in-process are manufactured goods and so will have to suffer excise duty at the rate prevalent on the date of clearance of the goods. Since there will be no transaction value, the value will have to be determined on the basis of cost of production plus 10 per cent.
Will the recent restriction on taking Cenvat Credit on angles, channels, plates etc. for supporting machines used in the factory of manufacture have retrospective effect?
Notification no. 16/2009-CE(NT) dated 7.7.2009 amends Rule 2(k) of Cenvat Credit Rules, 2004. After the notification, the explanation 2 to Rule 2(k) reads: “Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer but shall not include cement, angles, channels, Centrally Twisted Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital good”. The words in italics were added through the said notification. In my opinion, the amendment will have only prospective effect, as it restricts the scope of the erstwhile provisions.
When we can get transferable DEPB even before realisation of export proceeds, we do not understand why the DEPB application form has a column for showing the date of realisation of export proceeds. Can you please clarify?
The exporter has an option to claim transferable DEPB either before realisation of export proceeds or after realisation of export proceeds. When the claim is made before realisation of export proceeds, a legal undertaking is required to be furnished. Some exporters may not want to furnish that and may prefer to claim the DEPB after realisation of export proceeds. In that case, they can give the details of the date of realisation of export proceeds and it is not necessary for them to give the legal undertaking to the licencing authorities.
As per customs exemption notification no. 112/2009 dated 29.09.2009 imports made under advance authorisations issued against deemed exports supplies to advance authorisation or duty free import authorisation holders will not be exempt from anti-dumping duty. Can you please explain the logic?
I am unable to explain the restriction. However, I suggest that you opt to get the notification no. 96/2009-cus. dated 11.09.2009 endorsed on the advance authorisation and ask for clearance under that notification claiming exemption from anti-dumping duty besides exemption from other customs duties.
Can you explain the implications of the word “commercial” used in service tax law in various contexts?
In common parlance, “commercial” means “with profit motive”. The Tribunal has also so held in several judgments. But, the department is of the view that “commercial” means “for any consideration, whether with a profit motive or not”.