SUPREME COURT
- Word “include” in the definition of Inputs under Section 2(g) of CCR, 2002 gives a wide interpretation (RamalaSahkariChini Mills Ltd, UP Vs CCE 2016-TIOL20-SC-CX-LB)
- Background: Assessee is availing Cenvat credit on welding electrodes used in maintenance of machine. Department disallowed the credit on ground that welding electrodes do not fall under the definition of input.Assessee contended that it is covered under inclusive part of definition and hence credit should be allowed.
- Issue: Whether assessee can avail Cenvat credit on welding electrodes?
- Decision: Definition of input is inclusive and includes items beyond the items which are specifically provided in the definition. The Larger Bench held the word "include" in the statutory definition is generally used to enlarge the meaning of the preceding words and it is by way of extension, and not with restriction. Hence, Credit is admissible.
- Interest on delayed refund become payable from the date of receipt of refund application (M/s Hamdard Laboratories 2016-TIOL-21-SC-CX)
- Background: Refund application filed by assessee allowed belatedly. Department claimed interest payable from the date of refund order. Assessee contended that the interest to be allowed from the date of refund application.
- Issue: Whether payment of interest from the date on which refund order is made is correct?
- Decision: As per Section 11BB of Central Excise Act, if on an expiry of a period of three months from the date of receipt of the application for refund, the amount claimed is still not refunded, interest shall be payable. Thus, the only interpretation of Section 11BB then interest under the said Section becomes payable on the expiry of a period of three months. Such interest to be given beginning from the date of receipt of the application under Sub-section (1) of Section 11B of the Act.
HIGH COURT
3. Payment of duty into wrong excise code could not be treated as non- payment of duty (Devang Papers Mills Pvt.Ltd.Vs. UOI 2016 (41) S.T.R. 418 (Guj.)
- Background: At the time of making payment of duty through challan assessee had mentioned wrong excise code on challan.
- Issue: Whether payment under wrong excise code should be recognized as non- payment of duty requiring payment of duty again?
- Decision: It was held that assessee duty was deposited and duly credited to government account. Payment of duty into wrong Excise codecouldnot be treated as non- payment of duty and assessee not to be asked again to make payment.
Advance Ruling
4. Activities like inspection, testing, cleaning, lint brushing, Jewellery correction, folding and hanging, tagging etc.does not amount to manufacture deemed manufacture (M/s Amazon Wholesale Pvt Ltd Vs CCE 2016-TIOL-05-ARA-ST)
- Background: Assessee engaged in B2B operations in India. Goods purchased from vendors brought to warehouse and sold from there to industrial users, wholesalers and retailers after performing above mentioned activities. Advance ruling sought whether process undertaken amount to deemed manufacture