sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Latest Circulars »
 RBI-Inspection of Banks-Sets of Specimen Signatures
 Master Direction – Reserve Bank of India (Relief Measures by Banks in Areas affected by Natural Calamities) Directions 2018 – RRBs
 Notification No. 67/2018 Ministry Of Finance
 RBI Working Paper No. 05/2018: India’s Investment Cycle: An Empirical Investigation
  RBI-Auction of Government of India Dated Securities October 15, 2018
 RBI-Prepaid Payment Instruments (PPIs) – Guidelines for Interoperability
 RBI-Auction for Sale (Issue/Re-issue) of Government Stock (GS)
 RBI-Directions for Central Counterparties (CCPs)
 Notification No. 75/2018 – Customs Government Of India Ministry Of Finance
 RBI announces auction of a 59-Day Government of India Cash Management Bill
 RBI-Prompt Corrective Action: An Essential Element of Financial Stability Framework

Central Excise Circulars - No. 937/27/2010
November, 29th 2010

Circular No.  937/27/2010 - CX

F.No.52/1/2009- CX.1 Pt

Ministry of Finance

Department of Revenue

Central Board of Excise of Revenue & Customs

North Block, New Delhi

****

Dated the 26th November, 2010

To

            Director Generals (All)

            Chief Commissioners of Central Excise including LTU (All)

            Commissioners of Central Excise including LTU (All)

Sir,

Sub: Application of provisions of section 5A (1A) of the Central Excise Act

References had been received from the field formations as well as trade to clarify the ambiguity arising out of simultaneous prevalence of two exemption notifications namely 29/2004-CE dated 9.7.2004 as amended by notification No. 58/2008-CE dated 7.12.2008 and another notification 59/2008-CE dated 7.12.2008. The period of dispute is from 7.12.2008 to 6.7.2009. During this period while one notification No. 29/2004-CE as amended granted full exemption to certain items of Textile Sector without any condition, the second notification 59/2008-CE prescribed a concessional rate of duty of 4% on these items, with the benefit of Cenvat  Credit.

2. The dispute was with regard to whether an assessee can avail the benefit of either of the above said two notifications whichever is beneficial to him or he is bound to avail the unconditional exemption under notification No. 20/2004 - CE, as amended, during the period under dispute in terms of the provisions of section 5A(1A) of the Central Excise Act, 1944.

3. The matter was examined in the Board. As a substantial question of law was involved, the matter was referred to the Law Ministry for its opinion. The Ministry of Law has opined that the language used in said section 5A(1A) is unambiguous and principles of harmonious construction cannot be applied in the instant case in view of specific provision under sub-section (1A) of section 5A of the Central Excise Act.  The Law Ministry has accordingly concluded that in view of the specific bar provided under sub-section (1A) of section 5A of the Central Excise Act, the manufacturer cannot opt to pay the duty under notification 59/2008-CE dated 7.12.2008 and he can not avail the Cenvat Credit of the duty paid on inputs.

4. The aforesaid opinion of Law Ministry has been accepted by the Board. Pending issues, if any, may be decided accordingly.

5. Trade may be informed suitably.

6. The receipt of this circular may be acknowledged.

7. Hindi version would follow in due course. 

Yours faithfully,

(Madan Mohan)

Under Secretary (CX1)

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions