Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

December 2011

Exemption was claimed at a later stage and not initially — The benefit of any Notification cannot be denied.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d
Facts:

The Appellate Authority extended the benefit of Notification No. 76/86-C.E. to the respondent. The Revenue appealed that the benefit of Notification No. 76/86-C.E. was never claimed by the respondents at the time of investigation. It also drew the attention to the provision of Notification No. 36/2001-C.E. (N.T.), dated 26-6-2001, which stated that it was mandatory for any manufacturer to claim the benefit of exemption and to file a declaration to the Department. It appealed that no declaration was filed and no claim of exemption was made and thus the Commissioner was not justified in excluding the benefit. The assessee claimed that Exemption Notification can be claimed anytime if the same is otherwise available. The case of Share Medical Care v. UOI, 2007 (209) ELT 321 (SC) was referred to. It was held in the case that even if the applicant does not claim benefit under a particular Notification at the initial stage, he is not prohibited from claiming such benefit at a later stage.

Held:

In view of the Supreme Court judgment, the benefit of any Notification if otherwise available cannot be denied on the sole ground that the same is claimed belatedly.

Download PDF

You May Also Like

Assessee availed credit relating to capital goods used in provision of service — Revenue claimed that the credit was availed in excess of 20% of the tax paid every month — Application of restriction held erroneous — Credit allowed by way of a remand.

CENVAT credit — The insurance policy taken with regard to compensation to be given to workmen taken for workers involved in the manufacturing process of final products — Assessee was entitled to claim input service credit.