Advocate Nazir K Shaikh

Questions Answered by Advocate Nazir K Shaikh

Q: Need advice regarding billing of assets

For new business i want to buy machine how the bill should i take

Advocate Nazir K Shaikh answered
Purchase of machine will follow the the sales bill, if it s from manufacturer, Excise invoice and if it is from trader it will be commercial bill. If the manufacturer is SSI, he will avail 1.50 cr. exemption, if he is big scale mfrer he will prepare excise invoice indicating the payment of excise duties which will be available as Capital Goods credit under CENVAT credit scheme which will be used for payment of duties on final products query is general. if you have specific query, it will be answered specifically. thanks with regards

Q: Filed appeal for penalty by custom department what if i dont go

I have been deemed with a penalty of 25k for an excise related issue in 2007. I had done an appeal against this penalty for which I didn't received any notice from court until now, I have a hearing on 20 th October. My concern is if I chose not to attend this hearing then my appeal would be cancelled by default, so will I be viable to pay only the penalty amount or will there be any interest to this amount along with penalty. Please excuse the explanation, iam a layman. Thank you

Advocate Nazir K Shaikh answered
9.10.2016 Dear if you chose not to attend the hearing, you will be given one more chance to attend it, even then if you want to remain unattended then the appeal would be dismissed and you will be received letter from the original authority who has passed the Order imposing penalty asking to pay it,and you will be liable to pay only penalty amount, no interest is applicable on penalty, If grounds appeal are accepted by the appellate authority, the decision would be in your favor and no penalty would be needed to pay; If the concerned papers are shown, it would be opined as to what to do; Thanks and regards; Adv. Nazir

Q: Can i export by paying the excise duty without submitting the CT1

We are a exporter based in Mumbai and are procuring pharmaceutical raw material from manufacturer based in Vapi. We are ready to pay the excise duty while making payment to the manufacturer but manufacturer is asking for CT1 to be given mandatorily. They have asked the excise department in their range and they have said CT 1 is mandatory even if exporter is paying excise duty. How can I solve this issue? Is there a notification which says that I can still export by paying the excise duty and without submitting the CT1 ?

Advocate Nazir K Shaikh answered
Dear sir/Madam, Ct-1 Certificate has been refereed in para 2(i) of the Notification No. 42/2001(NT) dated 26.06.2001 as amended on the basis of which goods can be procured without payment of duties, this Notification is issued under the provisions of Rule 19 of Central Excise Rules 2002 which governs for export without payment of duties, Ct-1 Certificate is nothing but the part of Bond executed under Rule 19;Whereas the provisions of Rule 18 of Central Excise Rules 2002 governs for export with payment of duties where CT 1 certificate is not at all necessary & can not be insisted at all since it is it is a requirement under Rule 19 and not under Rule 18 ibid; The goods can be cleared with payment of duties under the cover of Invoice (to be issued under Rule 11 of Central Excise Rules 2002); there is a provision of availing the rebate of duties paid on exported goods following the provisions under Notification 19/2004 (NT) dated 6.9.2004 as amended ( issued under Rule 19 of Central Excise Rules 2002) ; references shown here can be taken printouts from CBEC site by clicking on Excise, then on Notification non tariff ; any insistence of CT-1 certificate for duty paid goods is unlawful and shows the ignorance of law, you may approach the higher officer to resolve the issue by showing the proper provisions of law as above; difficulties if any may pl be approached; Thanks and regards; Nazir K. Shaikh Adv. & Consultant