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TMI BlogAssessment of Central Excise for a Manufactured GoodX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, In my Query to You, I am executing an Project for manufacturing of a Product with following Terms: 1. X % against NRE Charges (Design, Engineering, Services Consultancy) 2. X %against Delivery Against the Pt No 1, I have Paid VAT as the same is a Part of Designing of the Equipment thereby facilitating to its Production. However, the Customer calls it as a service. Let me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... know if the Service Tax is Liable to be Paid or it comes under the ambit of Central Excise Act 1944 where it clearly indicates that Design and Engineering activity relating to the Production of the Equipment calls for Excise Payment... Look forward to your reply. Regards, Prasad. - Reply By KASTURI SETHI - The Reply = Dear Querist, After reading the following word for, if you h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave any doubt you may post further query in this forum. Extract of Board's circular No.334/1/2007-TRU dated 28.2.2007 6.7 Design services [ section 65(105)(zzzzd) ] : Services in relation to conceptualizing, outlining, creating the designs and preparing patterns for costumes, apparels, garments, clothing accessories, jewellery or any other articles intended to be worn by human beings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are leviable to service tax under fashion designing service [ section 65(105)(zv) ] and services in relation to planning, design or beautification of spaces is leviable to service tax under interior decorator s service [ section 65(105)(q) ]. Design services, other than the above specifically mentioned taxable services, like furniture design, aesthetic design, consumer or industrial products, lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gos, packaging, production of three dimensional models, etc. will be taxable under this category. 2015 (330) E.L.T. 739 = 2015 (10) TMI 1103 - CESTAT MUMBAI (Tri. - Mumbai) INDO BEROLINA INDUSTRIES PVT. LTD. Versus COMMISSIONER OF C. EX., MUMBAI-IV - Reply By Prasad Kudva - The Reply = Dear Sir, I went through Your reply, But had Queries: My Contract says : Order Value 100/- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Non Recurring Charges : Example 10/- (Design,Engineering,Consultancy Support) 2. Delivery against Manufacture-90/- Note: Product is Drawings are shared by Customer, based on which we Study and manufacture the Product and Supply 2. Based on Madras High Court Judgment of 1994 in first ding the accessible value of Product, we have Paid VAT 3. Contract refers Service Tax to be Paid. Hence Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omer has declined for Payment. 4. Is there any Judgment subsequent to Madras High Court Ruling in 1994 which says Design and Engineering for Manufacturing being part if the total Sale value comes under the Excise/ Vat. 5. As such Service Tax may not be applicable as no consultantly service is extended. More so in Engineering Industry Design is a Part of total Sale Value. 6. Your Guidance is sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght if asserting whether Service Tax or Excise Duty is applicable against NRE Charges as defined in Contract. - Reply By KASTURI SETHI - The Reply = Give complete citation of Madras High court. - Reply By Prasad Kudva - The Reply = Dear Sir, Good Afternoon: I am hereby enclosing the following Extracts: 1. Central Excuse Act of 1944 (Where Design, Engineering is referred as a Part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accesable Value) 2. Madras High Court Order 1991 Please share Your feedback, guidance and mail id for further guidance...... Note: I have Paid VAT on Design Engineering, but Customer says Service Tax is to be Paid. So I have referred the Judgement of Madras High Court and Central Excise Act,1944 Request Your reply and thoughts... Enclosed: Madras High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... American Refrigerator Co. Ltd. vs State Of Tamil Nadu on 3 September, 1991 = 1991 (9) TMI 331 - MADRAS HIGH COURT Central Excise Act:1944 ( DETERMINATION OF PRICE OF EXCISIABLE GOODS) RULES, 2000 [M.F. (D.R.) Notification No. 45/2000-C.E. (N.T.), dated 30-06-2000 as amended by Notification No. 11/2003-C.E. (N.T.), dated 01.03.2003 , 60/2003-C.E. (N.T.), dated 05.08.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 and 09/2007-C.E. (N.T.), dated 01.03.2007 ,] - Reply By KASTURI SETHI - The Reply = Dear querist, You have referred to the judgement of year 1991 when Service Tax law was not born. The concept Service Tax law was introduced for the first time in 1994. Designing, Engineering Consultancy are services. You may have not used consultancy services. Service and Sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both go in opposite directions. You cannot take a plea that you have paid VAT and hence Service Tax is not leviable. When a product is manufactured, services are also integral part of that product. It is a lengthy discussion and all the related docs have to be examined before arriving at a concrete decision. - Assessment of Central Excise for a Manufactured Good - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Query Started By: - Prasad Kudva Dated:- 2-12-2018 Central Excise - Got 5 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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