EXEMPTION TO UNREGISTERED PREMISES OF PHARMACEUTICAL PRODUCTS

Notification no: 11/2013

Dated: 2^nd Aug 2013

The CBEC hereby exempts from registration under sub-rule (1) of rule 9 of Central Excise Rules, 2002, unregistered premises used solely for affixing a sticker or re-printing or re-labeling or re-packing of pharmaceutical  products falling under Chapter 30 of the First Schedule to the Central Excise Tariff Act, 1985 with lower ceiling price to comply with the notifications issued by the National Pharmaceutical Pricing Authority under Drugs (Prices Control) Order, 2013 published in the Gazette of India vide S.O. 1221 (E), dated the 15^th May, 2013 subject to the conditions specified in the notification  no. 22/2013 - Central Excise dated the 29^th July, 2013 exempting the pharmaceutical products from payment of Central Excise duty.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

Applicable excise duty on Sedan cars like Maruti SX4, Honda Civic, Toyota Corolla Altis 

Circular No. 972/06/2013.CX

Date: 24/07/2013

Ques whether the excise duty of 30% is applicable on sedan cars likeMaruti SX4, Honda Civic and Toyota Corolla Altis.

Ans In the Budget 2013-14,   excise duty was increased from 27% to 30% on motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles. In the Explanation appended at Sl. No.  284A of the  aforecited  notification,  it has been mentioned that for the purposes  of this entry,  SUV  includes a  motor vehicle  of length exceeding 4000 mm and having ground clearance of 170 mm and  above. From this,   it may be seen that the higher excise duty of 30% is applicable on motor vehicles which are popularly known as SUVs and which satisfy all the three conditions, viz. (i)  the engine capacity exceeds 1500 cc, (ii) the length  exceeds  4000 mm; and (iii) the ground clearance is 170 mm and above. Maruti SX4, Honda Civic and Toyota Corolla Altis are stated to satisfy all the three conditions but, they are not popularly known as SUVs and neither are they known so in trade parlance. They are reportedly known as sedans in trade and common parlance.

In view of the above, it is clarified that the aforecited motor vehicles, which are known as sedans, will attract the excise duty of 27% as applicable  to large segment cars.[Sl.No. 284 (ii) of the Table in notification ibid]

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

AMENDMENT TO CESTAT APPEAL FORMS

Circular No.:969/03/2013-CX

Date: 11/04/2013

The Board has decided to amend/revise the forms for filing appeal in the CESTAT. Accordingly, new forms for Central Excise (E.A.-3, E.A.-4, E.A.-5), Customs (C.A.-3, C.A.-4, C.A.-5) and Service Tax (S.T.-5, S.T.-6, S.T.-7) have been notified vide Notification Nos. 6/2013-Central Excise (N.T.), 37/2013-Customs (N.T.) and 5/2013-Service Tax, all dated 10.04.2013 respectively.

These forms have been made effective from 1.6 2013. Therefore, all appeals filed in the Tribunal on or after 1.6.2013 would be in the new form being prescribed.

The above changes may be taken note of by the field formations as well as trade for proper usage of the new forms from 1.6.2013. However, the old forms may continue to be used for a period of three months from the date of coming into effect of the new forms, i.e. till 31.08.2013. From 01.09.2013 onwards, no appeal shall be filed in the old forms.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

CLARIFICATION REGARDING ADMISSIBILITY OF EXEMPTION UNDER AREA-BASED NOTIFICATIONS NO. 49/2003-CENTRAL EXCISE AND 50/2003-CENTRAL EXCISE

Circular No.: 968/02/2013-CX

Date: 01/04/2013

In the circular No. 960/03/2012-CX dated 17.02.2012 admissibility of exemption under Notification Nos. 49/2003-CE and 50/2003-CE, both dated 10.06.2003, in certain specified situations was clarified.

In the said circular, it was clarified that expansion of an eligible unit by acquiring an adjacent plot of land and installing new plant and machinery on such land, is akin to expansion by way of installing new plant and machinery inside the existing plot/premises and that in such cases, the exemption should continue to be available for the residual period of exemption.

Representations have been received from the Trade seeking further clarifications as to whether the term ‘adjacent’ used in the said clarification would also include a plot which is not immediately adjoining the existing plot but at some distance away from the existing plot.

For the removal of doubts, it is therefore clarified that the units which undertake expansion by acquiring the adjoining plot with at least one common boundary with the existing plot and merge it with the existing plot/premises to make it one unit.

Installing of new plant and machinery in a plot which is away from the existing plot is not akin to the situation mentioned in the said circular. Installation of plant and machinery on such a plot would tantamount to setting up another unit by the manufacturer, the eligibility of exemption of which is independent of the eligibility of exemption to the existing unit.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

CUSTOMS, EXCISE OFFICES  AND INCOME TAX TO BE OPEN ON 29TH, 30TH & 31ST MARCH

Notification No.:296/42/2013-CX

Date: 15th March, 2013

CBEC has requested the Chief Commissioners of Central Excise & Customs to keep their offices open on 29th, 30th and 31st March and also to issue Trade Notices for the information of the Trade as it feels bulk of the Revenue is received at the end of the month.

CBEC has also proposed to have the banks opened for at least half day on the above holidays and on 31st March (Sunday).

Income Tax Offices through out India shall remain open and the receipts counters shall also work during normal office hours on 30th and 31st of March 2013.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

Clarification Regarding Deemed Export Benefits for Supply Against ARO/Invalidation Letter Against Advance Authorization

Policy Circular No.:15 /2009-2014 (RE 2012)

Dated: 21/02/2013

Policy Circular No.9/2009-14 dated 1.10.2009  had clarified that supply of goods against Advance Release Order (ARO) is eligible for refund of duty drawback only and not for Terminal Excise Duty (TED) and  supplies against invalidation letter is eligible for Advance Authorization and TED refund.

The matter has been further examined in this Directorate. Benefits available against ARO/invalidation letter in respect of Advance Authorization are as under:

1.   For supply against ARO : 

a)   Refund of Duty drawback

b)   Refund of TED 

2.   For supply against invalidation letter against Advance Authorization    (AA) : 

a)   Ab-initio exemption from TED. (hence there would be no question of refund of TED).

b)   AA/DFIA for intermediate supply.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, 

Delhi-110001

Mobile No. +91-9873082769

Website: www.caaga.co.in 

INCREASE IN CUSTOM DUTY ON GOLD

Notification No.: 1 /2013-Customs 
Date: 21^st January, 2013

The standard rate on Gold has been increased from 4% to 6% and Additional duty has been increased from 2% to 4%.
The standard rate on Platinum has also been increased from 4% to 6%.                        

INCREASE IN EXCISE DUTY ON GOLD

Notification No.:1 /2013-Central Excise

Date: 21st January, 2013

Central Government has increases the rate of excise duty on gold from 3% to 5%.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769

Website:- www.caaga.co.in

HC STAYS CBEC’S CIRCULAR ON RECOVERY OF CONFIRMED DEMAND DURING PENDENCY OF STAY APPLICATION

The High Court of Judicature of Andhra Pradesh has granted an interim stay against  Circular No.  967/01/2013 – CX, Dated 1st January, 2013 issued by the CBEC, seeking the recovery of confirmed demand during pendency of stay application.

RECOVERY OF CONFIRMED DEMAND DURING PENDENCY OF STAY APPLICATION

Circular No.  967/01/ 2013 – Cx, dated: 1/1/13

It has been decided that the following circulars issued from time to time on the above issue shall be rescinded with immediate effect.

S.No.	Date	Circular no and File number of CX-6
1	18-11-88	80/88 and 208/31/88
2	2-3-90	7/90 and 208/107/89
3	21-12-90	23/90 and 209/107/89
4	12-11-92	16/92 and 208/59/92
5	3-8-94	47/47/94 and 208/33/94
6	2-6-98	396/29/98 and 201/04/98
7	25-2-2004	788/21/2004 and 208/41/2003

Now the, recovery proceedings shall be initiated against a confirmed demand in terms of the following order –

Sl No	Appellate Authority	Situation	Directions regarding recovery.
1	NIL	No appeal filed against a confirmatory order in original against which appeal lies with Commissioner (Appeals).	Recovery to be initiated after expiry of statutory period of 60 days for filing appeal.
2	Commissioner (Appeals)	Appeal filed without stay application against a confirmatory order in original.	Recovery to be initiated after such an appeal has been filed, without waiting for the statutory 60 days period to be exhausted.
3	Commissioner (Appeals)	Appeal filed with a stay application against an order in original.	Recovery to be initiated 30 days after the filing of appeal, if no stay is granted or after the disposal of stay petition in accordance with the conditions of stay, if any specified, whichever is earlier.
4	NIL	No appeal filed against an Order in Original issued by the Commissioner.	Recovery to be initiated after expiry of statutory period of 90 days for filing appeal from the date of communication of order.
5	CESTAT	Appeal filed without stay application against an Order in Original issued by the Commissioner.	Recovery to be initiated on filing of such an appeal, without  waiting for the statutory 90 days period to be exhausted.
6	CESTAT	Appeal filed with a stay application against an Order in Original issued by the Commissioner.	Recovery to be initiated 30 days after the filing of appeal, if no stay is granted or after the disposal of stay petition in accordance with the conditions of stay, if any, whichever is earlier.
7	NIL	No appeal filed against an Order in Appeal issued by a Commissioner (Appeals) confirming the demand for the first time.	Recovery to be initiated after expiry of statutory period of 90 days for filing appeal from the date of communication of order.
8	CESTAT	Appeal filed without stay application against an Order in Appeal confirming the demand for the first time.	Recovery to be initiated on filing of such an appeal in the CESTAT, without waiting for the statutory 90 days period to be exhausted.
9	CESTAT	Appeal filed with a stay application against an Order in Appeal confirming the demand for the first time.	Recovery to be initiated 30 days after the filing of appeal, if no stay is granted or after the disposal of stay petition in accordance with the conditions of stay, if any, whichever is earlier.
10	CESTAT	All cases where Commissioner (Appeals) confirms demand in the Order in original.	Recovery to be initiated immediately on the issue of Order in Appeal.
11	High Court or Supreme Court	Tribunal or High Court confirms the demand.	Recovery to be initiated immediately on the issue of order by the Tribunal or the High Court, if no stay is in operation.

   

It may be noted that a confirmed demand remains an order in operation till it is stayed. Mere preferment of appeal itself does not operate as a stay. Hon’ble Supreme Court in case of Collector of Customs, Bombay Vs Krishna Sales (P) Ltd [1994 (73) E.L.T 519 (S.C)] has observed that “As is well known, mere filing of an Appeal does not operate as a stay or suspension of the Order appealed against”. Accordingly, the above directions are hereby issued for initiating recovery of the confirmed demands.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769