9911796707
TMI Blog2023 (7) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... ration (DICCGC) and objection raised thereon on value of 'taxable' services rendered between October 2011 and March 2013 by the competent authority, in order [order-in-appeal no. SM/36/Appeals-II/MC/2021 dated 26th February 2021] of Commissioner of GST & Central Excise (Appeals-II), Mumbai in challenge of the respondent herein. It appears that the claim of refund had been prompted by an order [SK/128-134/LTU/MUM/2015] of the first appellate authority dated 11th January 2016 holding that the liability under Finance Act, 1994 would be duly discharged upon tax being remitted on the premium considered as inclusive of tax. 2. The respondent, as a wholly owned subsidiary of Reserve Bank of India, was established as insurer of banks to protect co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest thereon in two tranches. 4. The order of the original authority, set aside in the order now impugned by Commissioner of CGST & Central Excise, Mumbai Central before us, had held that the claim was premature owing to the said audit objection not having assumed a definite form as 'final audit report (FAR)' fructifying in notice dated 27th May 2016, that the decision of the Tribunal, in M/s Deposit Insurance and Credit Guarantee Corporation v. Commissioner of Central Excise & Service Tax [2015 (5) TMI 143-CESTAT MUMBAI] against confirmation of demand for the period from May 2006 to August 2012, had held that tax liability would not arise prior to 20th September 2011 in view of clarification of Central Board of Excise & Customs (CBEC) da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l evidence has been cited by the appellant in proceedings before the lower authorities that tax has been included in the gross amount collected as premium, that the entire value is liable to tax under section 66 of Finance Act, 1994, that the statutory rate of premium prescribed by the Reserve Bank of India (RBI) cannot be truncated, under section 15(1) of Deposit Insurance and Credit Guarantee Corporation Act, 1961, to include tax component except with approval of Reserve Bank of India thus excluding the relevance of Explanation 2 in section 67, now section 67(2), of Finance Act, 1994. Reliance was placed on the decision of the Hon'ble Supreme Court in Amrit Agro Industries v. Commissioner of Central Excise, Ghaziabad [2007 (210) ELT 183 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prior to the decision of the Tribunal in 2015 upholding the leviability of tax on activity undertaken by the respondent from 2011 onwards, the assessee had not been functioning under the premise that tax was not leviable and, hence, the claim that such is included in the premium is not tenable. 10. The decision in re Amrit Agro Industries Ltd pertains to an issue of dispute on valuation of manufactured goods for levy of central excise in which the computation was to exclude duties and taxes from the wholesale price and rested upon the principle that was elaborately expounded in Commissioner of Central Excise, Indore v. Grasim Industries Ltd [order dated 11th May 2018 in civil appeal no. 3159 of 2004] by the Hon'ble Supreme Court tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 and, in accordance with circular of Central Board of Excise & Customs (CBEC). In the very same decision, it has been recorded that '5.6.2 ...The facts on record show that they sought exemption as early as 01/08/2008 and pursued the matter with CBEC after their request for exemption was rejected.....' 12. It is evident from this finding that they were aware that, in the absence of exemption, tax liability does lie and, in such circumstances, the tax would have to be borne from the premium itself. Furthermore, as set out in the grounds of appeal, they could not have collected any amount higher than the premium specified by the Reserve Bank of India (RBI) as their customers - the banks also bound under the supervision of the Reserve Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
