Mumbai Court January 2007 Judgments

Asstt. Cit Vs. Adlabs

Court: Income Tax Appellate Tribunal ITAT Mumbai

1. These appeals were heard together and are being disposed of by the common order for the sake of convenience. The main issue arising in these appeals, relates to rejection of books of account by invoking the provisions of the proviso to Section 145(1) of the Income Tax Act, 1961 (Act) and the estimate of net profit.2. Briefly stated the facts, as stated in the assessment order, are these : The assessee-company is engaged in the business of processing negative films exposed by various feature film producers. The assessee is having its processing laboratory at Andheri (East), Mumbai. After such negatives films are processed and the final negative print of the film is taken, the producer place huge orders on the assessee for positive prints and thereafter, the assessee produces the positive prints as per the requirement of producers. The assessee has been following mercantile system of accounting. The expenditure incurred are debited as and when incurred but the income is credited when...

Commissioner of Central Excise Vs. H.K. Rolling Mills Engg. P. Ltd.

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2007)(116)ECC573

2. This is an appeal filed by the Revenue and the issue is whether the respondent is liable to pay Service Tax on licence fees recovered under the Services of ''Consulting Engineering" under the provisions of Finance Act, 1994. The ld. DR submitted that Section 65(18) of Chapter V of the Finance Act, 1994 has defined "Consulting Engineer" as under: "Consulting Engineer" means any professionally qualified engineer or an engineering firm who, either directly or indirectly, renders any advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering.He further submitted that as per the Licence & collaboration agreement dated 14.03.1997 between M/s. HSE, Germany and the respondents, the licence is the right to use patented technology for Thermex Cooling System, this technology has been patented by HSE, Germany; who have given exclusive right to the respondents to allow the use of this technology in the whole of India; the respondents gran...

Bishen Dyg., Ptg. and Wvg. Mills Vs. Commissioner of C. Ex.

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

2. The issue relates to the refund claims filed by the appellants in terms of provision of Rule 5 of the Cenvat Credit Rules, 2002, which have been rejected by the authorities below.3. The appellants had taken cenvat credit of the duty paid on the inputs i.e. Grey fabrics used in the manufacture of processed fabrics.The processed fabrics have been exported under Bond. There was accumulation of cenvat credit for the month of Dec. 03 to April 04, for which the appellants have filed three refund claims under the provision of Rule 5 of the Cenvat Credit Rules, 2002. The authorities below have rejected the same on the ground that the conditions laid under the Rule 5 of the Cenvat Credit Rules, 2002 have not been fulfilled. In the appellants' own case for the period pertaining to October & November, 2003, this Tribunal has allowed the refund claim by its Order No.A/2085/C-IV/SMB/WZB/06 dated 6-12-2006.4. The learned DR submits that in the instant case, 70% of the final product was clear...

Bajaj Plastics Ltd. Vs. Commissioner of Customs (Ep)

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. The applicants in these cases have been issued three advance licenses on the basis of which they have imported poly propylene granules within the terms of the licenses. It is the revenue's contention that the licenses were obtained by inflating the international value of the inputs in their VABAL application when compared with the then international prices and accordingly show cause notices were issued to them demanding duty on the excess quantity so imported on account of inflation in value.2. Learned advocate for the applicants submits that in terms of para 49 of the Exim policy of year 1992-1997 they had a flexibility of 20% both in terms of quantity and the value of the sensitive item subject to the condition that the overall CIF value of the licenses should not be exceeded. They have not violated any of this condition as they have imported 20% extra in quantity only but the value of the imports are within the overall value of licence. If the department felt that they have the ...

Cfl Securities Ltd. Vs. Deputy Commissioner of

Court: Income Tax Appellate Tribunal ITAT Mumbai

Reported in: (2008)298ITR212(Mum.)

1. The assessee is in appeal before us against the order of the learned Commissioner of Income-tax (Appeals), Cen. V., Mumbai, dated July 17, 2000, passed for the assessment year 1996-97. The first grievance of the assessee relates to disallowance of Rs. 3,58,963 out of interest paid to the National Stock Exchange by treating the same to be of payment on capital account.2. The brief facts of the case are that the assessee-company has filed a return of income on November 26, 1996, declaring an income of Rs. 1,57,265. It is engaged in the business of shares and securities broker under the National Stock Exchange. On scrutiny of the account it revealed to the Assessing Officer that the assessee has debited a sum of Rs. 3,79,974 in the profit and loss account as interest paid. Out of this amount a sum of Rs. 3,58,963 is relating to the interest paid to the National Stock Exchange on delayed payment of capital market last instalment of Rs. 25 lakhs. The Assessing Officer issued a show-caus...

Quality Apparels Export P. Ltd. Vs. Commr. of Cus. (Export), Acc

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

1. The applicant M/s. Quality Apparels Export Pvt. Ltd. are engaged in the export of textile garments. On the basis of specific information gathered to the effect that textile rags were being exported unauthorizedly under drawback claim by misdeclaring the description of goods as Ladies Skirts by M/s. Quality Apparels Exports Pvt. Ltd., the officers of the department intercepted 5 consignments consisting of 700 pkgs. covered by 7 shipping bills which were earlier brought together at Air Cargo Complex, Mumbai, for the purpose of shipment for the export by the said company and also by M/s. Quality Exporters. On examination, the goods were found to be loosely stitched apparels in the form of rags which were consequently seized and separate proceedings were initiated in respect of the same.2. As a result of the above seizure enquiries were also conducted in respect of the exports already effected by M/s. Quality Apparels Exports Pvt. Ltd. and it was gathered that M/s. Quality Apparels Exp...

Precision Tool Room and Moulding Vs. Commissioner of Central Excise

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2007)(116)ECC486

2. The issue involved in these appeals is that whether the appellants are entitled to claim the refund of accumulated Cenvat credit by way of cash in respect of the inputs against the exported goods.3. The appellants herein have filed the refund claim for various amounts in these appeals, in terms of Rule 5 of the Cenvat credit Rules, 2002 on the ground that they were not in a position to utilize the accumulated credit as the quantum of their clearance for home consumption was low as compared to clearance to EOU without payment of duty. The adjudicating authority has rejected the refund claims while relying upon the condition No. 5 of Notification No. 11/2002-CE(NT) dated 01.03.2002 observing that Rule 5 has not been fulfills. Further, it is observed that the appellants have effected export clearances against UT-I/Bond without payment of duty instead of payment of duty under Rule 18 of the Central Excise Rules, 2002, which is resulted in accumulation of Cenvat credit. Lastly, it is ob...

Commissioner of C. Ex. Vs. Vikram Ispat Ltd.

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2007)(117)ECC120

1. These are three appeals, two filed by Revenue and one by M/s Vikram Ispat who are the respondent in the two appeals filed by the Revenue.Since the issue in all the three appeals is same with slight variation they are being decided through a common order.2. The brief facts of the case which are common to all the three appeals are that M/s Vikram Ispat is engaged in the manufacture of Hot Briquette Iron and sponge iron and availed Cenvat credit of duty paid on Iron Ore pellets. The raw material for sponge iron is in equal proportion of iron ore pellets and iron ore lumps. There is no Central Excise duty on iron ore lump but iron ore pellets are treated as iron concentrates and suffer excise duty. For manufacturing sponge iron using direct reduction technique, only iron ore pellets of size about 6 mm are used. The iron ore pellets received in the factory contain small particles of size less than 6 mm commonly known as iron ore fines.These iron ore fines are required to be removed befo...

Commissioner of Central Excise Vs. Godfrey Phillips India Ltd.

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2007)(117)ECC109

1. The respondents herein who are manufacturers of cigarettes, introduced a scheme of taking interest-free security deposit from their wholesale dealers to the extent of 10% of their projected annual turnover w.e.f. 1.9.1980, to achieve twin objectives, namely (a) to guarantee assured supply to wholesale dealers, and (b) to ensure assured lilting of stocks by such dealers. The limit of 10% was raised to 15% w.e.f. 1.5.1982. The security deposit was completely optional and additional option was also available to such of those wholesale dealers who wished to buy cigarettes on credit, to give interest free security deposit. The price-lists filed were approved provisionally.2. On the basis of information that cigarettes were being undervalued by the respondents on account of indirect consideration flowing from the aforesaid deposit scheme, necessary investigation was conducted and statements of officers of the respondents were recorded, and the statements revealed mainly that (i) The pric...

Viraat Ispat Ltd. Vs. Commissioner of Central Excise

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2007)(116)ECC375

1. Heard both sides. The issue relates to reversal o Modvat Credit. The learned Counsel for the appellant has interalia contented that the stock taking on 9.10.97 was carried out on adhes basis without carrying out the physical weighment of the material; the stock was determined on eye estimation basis and the same cannot be taken as a correct means of stock determination; the learned Counsel submitted that the case of K.L. Steel Ltd. v. CCE to the facts of the present case because in that case excess and shortage of goods was determined based on actual weighment of goods and the admission of shortage in the stock by the appellant should not be made the ground for rejecting the clarification for variance in stock ; he submitted that the appellant has explained various reasons for the variance which was less than 1% and accumulated over a period of time ; the difference could be on account of (i) weighment scale difference (ii) issue of scrap for production (iii) molten metal from furn...