| Date: |
21-07-2015
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| Notification No: |
Central Excise Circular No. 1005/12/2015-CX
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
F.No. 336/4/2015-TRU |
| Subject: |
Clarification relating to notifications No.30/2004-Central Excise dated 09.07.2004, No.1/2011-Central Excise dated 01.03.2011 and No.12/2012-Central Excise dated 17.03.2012, as amended
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Government of India
Ministry of Finance (Department of Revenue)
Tax Research Unit
*****
Circular No. 1005/12/2015-CX
New Delhi, the 21st July. 2015
To.
Principal Chief Commissioners / Chief Commissioners of Central Excise (All)
Principal Chief Commissioners / Chief Commissioners of Central Excise & Service
Tax (All)
Principal Chief Commissioners / Chief Commissioners of Customs (All)
Sir Madam.
Subject Judgment of the Supreme Court in the case of Mis SRF Ltd.
versus Commissioner of Customs. Chennai - Clarification relating to
notifications
No.30/2004-Central Excise dated 09.07.2004.
No.1 /2011-Central Excise dated 01.03.2011 and
No.12/2012-Central Excise dated 17.03.2012. as
amended Regarding.
It may recalled that the Hon'ble Supreme Court. in the case of M/s SRF Ltd.
versus Commissioner Of Customs. Chennai and M/s ITC Ltd. v/S Commissioner of
Customs (I&G) [2015 (4) TMI 561 - SUPREME COURT]. New Delhi relating to CVD
exemption. has held that the benefit of excise duty exemption [available to
final products manufactured by the domestic manufacturer. subject to the
condition of non-availment of CENVAT credit of duty on inputs or capital goods
used by such manufacturer for manufacture of such final products] will also be
available to the importers of such final products for the purposes of CVD on the
ground that the importer was not availing the credit of duty on inputs or
capital goods.
- The implication of the Hon'ble Supreme Court judgment was that all
such final products when imported by manufacturer importer would have
attracted concessional excise duty as CVD. while the domestic manufacturer
of such final products had to forgo input tax credit to be eligible for such
concessional rate. This would put the domestic manufacturers at a
disadvantage vis-a-vis imports and would adversely impact the Make in India
Policy of the Government.
- The Judgment of the Hon'ble Supreme Court was examined in CBEC and it was
found that there were certain errors apparent on record/interpretational
issues and. with the concurrence of the Ld. Attorney General. a Review
Petition / Revision Application has been filed against the same.
- However, keeping in view the adverse implications of the aforesaid
judgment on the domestic industry, legal opinion was sought from the
Ministry of Law & Justice as to whether pending the aforesaid Review
Petition / Revision Application, such conditions in the relevant
notifications be suitably amended so as to make the intention abundantly
clear (that these conditions are to be satisfied by the manufacturers of
such goods and not the buyer / importer of such goods).
- In this context, opinion of the Ministry of Law & Justice was also sought
With the concurrence of the Ld. Attorney General
notifications
No.34/2015-CE. No.35/2015-CE and
No.36/2015-CE all dated 17.7.2015 were
issued amending the conditions in notifications
No.30/2004-CE dated
09.07.2004.
No.1/2011-CE dated 01.032011 and
No.12/2012-CE dated 17.03.2012,
respectively.
- In the above context. apprehensions have been raised about the use of the
phrase of "appropriate duty" In this regard. Explanations have been inserted
in the
notifications No.30/2004-CE dated 09.07.2004.
No.1/2011-CE dated
01.03.2011 and
No.12/2012-CE dated 17.03.2012 so as to clarify that the
appropriate duty or appropriate additional duty or appropriate service tax
for the purposes of the said notifications/entries includes nil duty or tax
or concessional duty or tax. whether or not read with any relevant exemption
notification for the time being in force.
- It may, therefore, be noted that the domestically manufactured goods
covered under these notifications/entries continue to be exempt from excise
duty or subject to concessional rate of excise duty. as the case may be as
they were prior to 17th July. 2015.
- Trade Notice/Public Notice may be issued to the field formations and
taxpayers.
- Difficulties faced. if any. in implementation of this Circular may be
brought to the notice of the Board.
(Alok Shukla)
Joint Secretary (TRU)
F. No. 336/4/2015-TRU
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