We have submitted bank certificate of exports and shipping bill to claim DEPB (Duty Entitlement Passbook) benefits against our exports made recently. The authorities are asking for mate receipt, which is not a specified document. Can we contest the demand?
Recently, the DEPB rates were amended. To determine the DEPB rate, the date of exports has to be determined in accordance with Para 9.12 of Handbook of Procedures. Perhaps, that is the reason for the demand. Unless you have any specific reason, it is better that you do not hesitate to submit any document called for by the authorities.
We have resold the imported goods by charging VAT (value added tax) to the customer. We paid VAT to the Government by utilizing the input tax credit available with us. Can we claim refund of the 4 per cent additional duty of customs?
Yes, If you fulfill the other conditions for getting the refund of the 4 per cent additional duty of customs, the payment of VAT to Government by utilizing the input tax credit should not come in your way. It is quite a legitimate way of paying VAT. The CBEC Circular no. 16/2008-Cus. dated October 13, 2008 clarifies this position beyond any doubt.
We have submitted bank certificate of exports and shipping bill to claim DEPB (Duty Entitlement Passbook) benefits against our exports made recently. The authorities are asking for mate receipt, which is not a specified document. Can we contest the demand?
You may have got the SFIS scrip debited under excise notification no. 34/2006-C.E. dated 14th June 2006 and got exemption from excise duty payment. There is no provision in the same notification to take credit of the duty so debited/paid. Even the customs notification no. 92/2004-Cus. dated 10th September 2004 contains no provision to take credit of the additional duty of customs paid through SFIS.
We get our dies manufactured on job-work basis from a small scale industry. We supply all the necessary raw materials and pay only job-work charges. The job-worker has now informed us that according to his excise authorities he should either pay excise duty or service tax and as he has not paid excise duty, he must pay service tax. Is the contention correct?
The process of making dies amounts to manufacture as a new product with distinct name, character and use comes into existence. Therefore, the dies are excisable goods. But, your job-worker may be clearing them without excise duty under any of the excise duty exemptions or under the specific provisions or procedures of job-work.
In any case, the contention of his excise authorities is not correct, as job-work [ i.e. production or processing of goods for, or on behalf of, the client], will come within the purview of business auxiliary services [Section 65 (19) of the Finance Act, 1994] only if the process carried out by the job-worker does not amount to 'manufacture' as defined in Section 2 (f) of the Central Excise Act, 1944.
