Anonymous
30 August 2011 at 17:49
QUERY FOR OPINION
FACTS
1. The company is a SSI unit in Rajasthan, manufacturing marble slabs (which is excisable at INR 30 per square meter) and availing exemption under SSI on grounds of turnover being below INR 1.50 crores (the “Company”) .The Company is not registered under central excise as it is exempt. The Company has a Bombay office which trades in marble slabs and has a high turnover, but it is purely trading.
2. For year 2008-2009, the total turnover of the Company’s manufacturing unit was INR 1.34 crores.
3. In year 2009-2010, the Company was allotted license to import marble blocks which the Company imported. But, instead of getting the raw material to the Company’s manufacturing unit, the Company got it processed on job-work basis in Silvassa from other manufacturers and the job-worker duly paid excise on such goods removed. The Company was entitled to receive CENVAT credit but did not claim any credits as it was not registered. We are counting this as a trading activity of the Company’s Rajasthan unit and not manufacturing activity and are not counting this turnover (approximately INR 5 crores) for basic exemption limit of INR 1.5 crore.
4. For the year 2009-2010, the situation for the Company was:
Manufacturing turnover at factory : INR 40 lacs
Trading turnover at Silvassa : INR 8.25 crores
(We are counting the job-work turnover as trading turnover because the blocks have not gone to the factory of the Company at all and we have processed the goods outside in other factories and sold them also from outside, i.e. Silvassa.)
5. Similarly, for the year 2010-11, the situation for the Company turns out to be:
Manufacturing turnover at factory: INR 40 lacs
Trading turnover at Silvassa : INR 9.60 crores
QUERY
1. Will the trading turnover be counted as manufacturing turnover for the purpose of calculating excise exemption limit of INR 1.5 crores and also for the registration limit of INR 4 crores, or given the facts above we can still continue to enjoy exemption under SSI registration because the manufacturing turnover is below INR 1.5 crores?
2. Director General of Foreign Trade (hereinafter referred to as the “DGFT”) related query: We are allotted license on actual user condition to import marble blocks and sell them after processing. We are of the view that as per DHFT law under actual user condition, it is not compulsory for the importer to process goods in its own factory only, but the importer can also get it processed on job-work basis from other manufacturers and then sell the finished goods. By doing so yhe importer complies with actual user condition . Is our view correct and legally tenable? Such sale i.e sale done on jobwork basis outside the unit has been counted by us as manufacturing turnover for the purpose of license allocation in DGFT only , but for excise purposes as per provisions of excise it has been taken as trading turnover because of the facts mentioned above. Although the Company is exempt, it has paid excise on all the goods processed at Silvassa because we do not consider it as part of manufacturing activity and so the jobworker paid excise then we sold the goods and count it as a trading activity. Is this legally coorrect?
Also, in this regard please note that the concerned government department has verbally conveyed to us that since the marble blocks were imported by us, then processed in the job-workers’ factory and then sold, they will not come under the purview of trading activity as the form of raw material has changed from blocks to slabs. Is this a legally tenable objection? Our view is that even if the form has changed, it does not amount to manufacturing activity of the unit, as the activity is taking place totally outside the Company’s factory. Is this view correct and legally tenable?
Mahesh Kakade
28 August 2011 at 18:06
I want to Work Contract Tax.
If a company have taken an EPC job for installation of project, in the scope of work supply equipment, civil work and erection value has been clearly defined. In addition to the above in civil work it further defined the scope of civil work i.e pure labour work, supply of cement, supply of steel and aggregates.
I want to know how much WCT will be require to pay?
Also any other scheme to save the tax in the above contract?
Navdeep singh
28 August 2011 at 16:11
Hi sir I want to know the procedure and full detail of dj group registration in punjab.
I there need for licence for Dj group? Process for this
Anonymous
24 August 2011 at 15:45
My resident building is under dilapidated catogory and the prapose owners fighting in court since 1999 and not willing to giv NOC for redevolopment.
Is there anyway between that we can with Joint venture with MAHADA and builder take advantage of 33(7) sceme,where praposed owner can not stop us from development.
ravinder
24 August 2011 at 08:25
sir .........
my question is that a company in its demerger has not complied with as-14 and regional director has objected on the same in high cour....so what are the cosequences of this non-comliance..?
suggest any legal provision of companies act,1956 or any decided case law on the same matter...if any.?
Anonymous
23 August 2011 at 21:58
The employer had filed recall application against the ex- parte award of the labour court without mentioning the act under which the recall application had been filed not by the party but by the authorized representative of the company simple plain paper without affidavit and without delay condone application after 30 days of publication.
However it is pertinent to mention here that the award is not ex-parte as the company has filed w/s, rejoinder affidavit, refused to file documents ad absented itself deliberately in management witness and arguments. It has also filed various interlocutory applications/ objections rejected before passing award under the direction of high court to decide the issue at earliest.
Now challenging before the writ court the award, the recall application which was rejected under the state act while the reference order is in the central act.
Is this issue will have any serious implication in the writ court?
How this issue should be argued before the writ court?
Is there any ruling in support of submission.
Let me know.
Anonymous
21 August 2011 at 19:15
against a labour court award though mentioned as ex-parte (But not ex-parte as the employer has filed w/s, rejoinder, issues framed application but during argument after refusing to file documents case order ex-parte) employer file recall application after 30 days of the publication of award which was duly rejected.
The reference was made in central act, but the application was rejected in state act,as the application before the labour court was presented by authorised representative of the employer on PLAIN PAPER WITHOUT MENTIONING ANY ACT AND WITHOUT AFFIDAVIT,DELAY CONDONE APPLICATION.
Now the award has been challenged before the writ court.
Is this rejection of application in state act will have any serious implication before the writ court as the reference is made in the central act?
how this issue can be effectively dealt before writ court without any adverse affect on the award.?
is the any specific ruling in this matter which may help?
Do suggest with ruling PL.
Anonymous
21 August 2011 at 19:14
against a labour court award though mentioned as ex-parte (But not ex-parte as the employer has filed w/s, rejoinder, issues framed application but during argument after refusing to file documents case order ex-parte) employer file recall application after 30 days of the publication of award which was duly rejected.
The reference was made in central act, but the application was rejected in state act,as the application before the labour court was presented by authorised representative of the employer on PLAIN PAPER WITHOUT MENTIONING ANY ACT AND WITHOUT AFFIDAVIT,DELAY CONDONE APPLICATION.
Now the award has been challenged before the writ court.
Is this rejection of application in state act will have any serious implication before the writ court as the reference is made in the central act?
how this issue can be effectively dealt before writ court without any adverse affect on the award.?
is the any specific ruling in this matter which may help?
Do suggest with ruling PL.
Anonymous
20 August 2011 at 12:19
We are engaged in the business of Ship repairing and supply of necessary spares parts In West Bengal . We are carry out refit work in accordance with the main and supplementary defect list remarked DO/Don’t by CGHQ along with amended remarks as per TEC minutes. The scope of work includes cleaning and painting of the Ship’ Hull , obtain ultrasonic readings , Engineering, electrical , and provide necessary facilities while the ship is in dry dock, provide accommodation and cooking facilities to the ship’s crew when the ship becomes uninhabitable .
For the purpose of carrying out the above works are paid total refit cost Say for example 1 Corer. Inclusive of taxes duties . further he is paid a maximum amount equal to 15 % of the refit cost ie. 15 Lac inclusive if taxes and duties for carrying any additional growth of work to correct operational defect. Further for non availability spares against NAC ( Non Availability Certificates ) is reimbursed the cost of such spares on actual plus 7.5 % as handling charges subject to maximum of 20 % of the total refit cost amounting to Rs. 20 Lacs. Inclusive of taxes and duties.
To complete the entire refit work within 120 days .
Query : i) Amount of Vat Payable in west Bengal
ii) Value of Taxable service for service tax
If any information or details we will let you know on your demand.
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