Wednesday 27 December 2017

HC : Dismisses Revenue‘s appeal; Sec. 10B benefit to commence only from EOU certification

Kerala HC dismisses Revenue’s appeal, holds assessee eligible for Sec. 10B benefit from AY 2000-01 i.e. the year of inception of 100% export-oriented undertaking (‘EOU’) and not from AY 1998-99 i.e. the year on which the manufacture was commenced; Notes that the assessee was a sole proprietorship firm, which commenced its manufacturing business in AY 1998-99, later it was converted into a partnership firm  and was also issued a certificate of it being a 100% EOU in AY 2000-01; HC refers to Sec. 10B and opines that the term ‘manufacture’ referred thereto “is one commenced pursuant to the certification of 100% export-oriented undertaking.”; HC holds that in the present case, it cannot be said that the assessee, a 100% EOU is eligible from the year in which they commenced manufacture, since in that relevant year the assessee was not a 100% EOU unit; HC rules that “The benefit being conferred only on a 100% export-oriented unit, the exemption could commence only from its certification, as such a unit and if there is no manufacture at the time of certification, from the time of commencement of manufacture.”:HC 

No comments:

HC upholds validity of provisions restricting ITC where supplies are taxed under RCM

  This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) ...