Legacy Indirect Tax
2 articles
CENVAT Credit on Capital Goods Supplied Under a Works Contract Is Not Barred by the Contractor's Valuation Under Rule 2A: CESTAT Chennai in Toshiba JSW Power Systems
A Chennai Bench of the Tribunal accepted that the supply and erection orders were one works contract, yet allowed the recipient's credit, setting aside a notice demand of Rs.1,93,97,137. The credit bar in the Explanation to Rule 3 of the CENVAT Credit Rules, 2004 does not follow the goods into the recipient's hands, and the extended period was held unavailable.
15 min readCredit of Concessional Countervailing Duty on Imported Coal Is Not Cut Down by Excise Conditions: Rajasthan High Court Dismisses Revenue's Appeals Against Hindustan Zinc
A Division Bench of the Rajasthan High Court has refused to read the excise-side restrictions of Rule 3(1)(i) of the CENVAT Credit Rules, 2004 into Rule 3(1)(vii), upholding Hindustan Zinc's credit of concessional additional customs duty on imported steam coal across five demands totalling Rs.51,47,27,714. The reasoning is brief and leans on a Calcutta High Court ruling and a departmental advisory minute, which makes its limits as important as its result.
14 min read