Packing Material Makers stop clearances after Excise controversy

Sudha Sharma appointed as Member of CBDT Rupee hits a high of 48.73 against Dollar Excise Officers caught burning official files in midight in Aligarh after Income Tax raids on Ponty Chadha SC cancels 122 licences issued by A Raja during his tenure as Telecom Minister Laxman Das is Officiating Chairman of CBDT Tariff Value for import of gold is 556 & for silver 1067 & for Brass Scrap 4078 & for poppy seeds 2205-Customs Non-Tariff Notification No. 10 Fused Silica is classifiable under Tariff Item 32074000-Customs Circular No.3 Additional Commisssioner of Income Tax HA Siddiqui sentenced to 4 years imprisonment for accepting bribe of Rs 1 Lakh by CBI Court in Delhi Exchange Rate for imported goods is Rs 50.20 Per US Dollar & Rs 66 per EURO-Exchange Rate for export goods is Rs 49.40 per US Dollar & Rs 64.40 per EURO HC upholds levy of service tax on booking of flats-The explanation which was inserted by the Finance Act of 2010 clearly brings within the fold of taxable service a construction service provided by the builder to a buyer where there is an intended sale between the parties whether before, during or after construction Authority for Advance Ruling rules super concentrates shall be classified as products of the chemical industry under heading 3824 90 90 of Customs Tariff Anti dumping duty imposed on import of Morpholine from China European Union & USA Anti dumping duty imposed on import of Geogrid/Geostrips/ Geostraps made of polyester or Glass fiber in all its forms from Refund of Anti-Dumping Duty (Paid in Excess of Actual Margin of Dumping) Rules, 2012 notified-Customs Non-Tariff Notification No.5 Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Amendment Rules, 2012-Customs Non-Tariff Notification No.6 Safeguard duty at the rate of 10% ad valorem notified on import of Phthalic anhydride, falling under tariff item 2917 35 00-Customs SG Notification No.1 Customs duty on import of Gold, Silver, Cut & Polished Diamonds hiked Customs duty to be charged at the rate of 2 per cent of Tariff Value on gold and 6 per cent of Tariff Value on silver Tariff Value for import of gold & silver notified-Customs Non-Tariff Notification No.3 Anti-dumping duty on imports ofSilk fabrics 20-100 gms per metre, falling under heading 5007 originating in, or exported from, China-CustomsTariff Notification No. 2 Anti-dumping duty imposed on imports of Nylon Filament Yarn, falling under Chapter 54 ,originating in, or exported from, China, Chinese Taipei, Malaysia, Thailand and Korea RP-Customs TariffNotification No.3 Anti-dumping duty imposed on import of Phosphoric Acid of allgrades and all concentrations (excluding Agriculture/Fertilizer Grade) ,falling under tariff item 28092010, originating in, or exported from, Israel and Taiwan-Customs Tariff Notification No.4 Anti-dumping duty on imports of Cellophane Transparent Film , falling under Chapter 39 , originating in, or exported from, China-Customs TariffNotification No.5 Anti-dumping duty onimports of Saccharin, falling under Chapters 29, 30, 33 and 38 ,originating in, or exported from, China-Customs Tariff Notification No.7 Special Bench of ITAT rules the appellant is not entitled to set off carry forward business loss against the long term capital gain arising on sale of land used for the purpose business ITAT rules Long Term and Short Term gains / losses on sale of equity shares under Portfolio Management Scheme is business income and not Capital Gains HC rules the opinion of the AO may have been legally erroneous but this cannot be a ground for initiation of re-assessment proceedings Anti-dumping duty on ‘Caustic Soda’, originating in, or exported from, Saudi Arabia, Iran, Japan, USA & France-Customs Tariff Notification No.1 Cost Accountants can issue Certificates for the purpose of refund of 4% CVD-Customs Circular No.1 Customs duty on import from ASEAN nations lowered- Customs Tariff Notification No.127 deeper tariff cut on import from Malaysia notified- Customs Tariff Notification No.128 deeper tariff cuts on import from Korea notified- Customs Tariff Notification No.123 deeper tariff cuts on import from Srilanka & Pakistan under SAFTA notified- Customs Tariff Notification No.125 Schedule of Rates for Service Tax Refund to Exporters notified in supersession of Notification No.17/2009-Service Tax Notification No. 52 Customs duty on import of several products from specified countries lowered-Customs Tariff Notification No.113 Anti-dumping duty on ‘Sodium Hydrosulphite (SHS)’, falling under headings 2831 and 2832 , originating in, or exported from, China PR- Customs Tariff Notification No.111 CBEC specifies documents required for Registration of ServiceTax Customs duty on import of 532 Products from Singapore lowered-many products exempted from duty-Customs Tariff Notification No. 106 Government allows Rebate of excise duty on export of goods to Nepal under ARE-1 Procedure w.e.f. 1st March 2012-Central Excise Non-Tariff Notification No.24

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Packing Material Makers stop clearances after Excise controversy

AIT News Network

NEW DELHI. AIT Office is flooded with calls from Packing Material Makers as the Rumour is hot for last couple of days that small-scale excise exemption is no more admissible to Packing Material manufacturing Units as they are printing the Brand names of others on the Packing Material and hence the exemption of Rs 1.5 Crore turnover under Central Excise Tariff Notification No.8/2003 does not apply to them.

The Packing Material Makers have stopped clearances with effect from 1st April 2008 and are in a dilemma as to whether avail the exemption or to start paying excise from very beginning of the year.

AIT Team did some research and found out that the root of the rumours is a communication C.No. V(30)Tech/Packing Material/64/07/2685/19.02.08 dated 19.2.2008. issued by the Commissioner of Central Excise, Kanpur which is as under:

“Sub : Non applicability of Notification No. 08/2003 on the packaging material bearing other’s brand – reg.

Please refer to the undersigned’s letter C. No V(30)Tech/Packing material /64/2007/31-33 and 848-49 dated 16.01.08/21.01.02008 on the subject as mentioned above.

In the above context, the matter has been Re-examined. On re-examination, it is observed that even though the packing material as mentioned in the said letter dated 16.01.08/21.01.08 of the undersigned may not be used by the packing material manufacturer for packing and clearing any other goods from his factory with the help of such packing material, such packing material itself is classifiable under a definite tariff item by virtue of its own identity as a separate excisable goods and such packing material is also specified in the SSI exemption as one of the goods entitled to the said exemption subject to the fulfillment of the conditions of SSI exemption . Therefore , since such packing material is also a specified goods for the purpose of the SSI exemption , such packing material is also a specified goods for the purpose of SSI exemption such packing material affixed with the brand names of others will not be entitled to the benefits of the SSI exemption in view of the Hon’ble Supreme Court’s order in the case of Kohinoor Blastic Pvt Ltd Vs CCE , Indore (2005(188)ELT3(SC) and in the case of CCE Chandigarh Vs Bhalla Enterprises (2004(178)ELT-225(SC) . There are several CESTAT judgments also in support of such a view.

Accordingly, the instructions contained in the undersigned’s letter No V (30) Tech/Packing material/64/2007/31-33 and 848-49 dated 16.01.08/21.01.2008 on the subject as mentioned above may please be treated as modified to the above extent and action may taken accordingly . In this regard, attention is also invited to the clarifications given vide the undersigned’s DOC no. 02/Commr/KNP/Rev Tar/06/11939-46 dated 06.10.07 and of even C No. 14793 -800 dated 20.12.07 which will remain unaltered.”

Thus according to views of the Commissioner of Central Excise, Kanpur, the packing material affixed with the brand names of others will not be entitled to the benefits of the small –scale excise exemption of Rs 1.5 Crore clearances.

According to RS Sharma Advocate the small-scale exemption is admissible to manufacturers of packing material who are printing the Brandname or Tradename of their clients on the packing material as the packing material itself cannot be treated as Branded goods within the ambit and scope of the Notification. In fact the goods which are packed inside the packing material are to be treated as Branded goods. The views of learned Commissioner of Central Excise do not reflect correct interpretation of exemption Notification No. 8/2003 .Further, even the cases cited in the communication do not apply in such cases. Instead of jumping the gun by issue of controversial communication; the learned Commissioner should have referred the matter to CBEC for issue of clarification in such matters. The clients have already been advised to avail the exemption, Sharma added.

It is high time CBEC clears the air on the issue through a clarification so that the sword of demand and litigation does not hang on the neck of manufacturers.