Inclusion of show cause notice’s issued in relation to levy of CVD on vessels imported for breaking in the "Call-Book"

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....ation to levy of   CVD on vessels imported for breaking in the "Call-Book"-reg. References have been received in the Board from trade and field formations in relation to Judgement of Hon'ble High Court of Gujarat passed in SCA No. 10607 of 1995 filed by M/s Shivam Engineering Company and others reported as [2014-TIOL-1563- HC-AHM-CUS]. A SLP has been filed by the department in Hon'ble Supreme Court against this order. 2.  In the said judgement, Hon'ble High Court has held that duty under Central Excise Act, 1944 can be levied, if the article has come into existence as a result of production or manufacture. Articles which are not produced or manufactured cannot be subjected to levy of excise duty. On the import of like a....

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....  has   appealed   against   the   order   of   the Hon'ble High Court of Gujarat. (ii) Show Cause Notices for wrong availment of CENVAT credit have been issued to those   importers   who   are   paying   CVD   voluntarily   and   taking   CENVAT   credit   and utilising the same for payment of Central Excise duty liability arising due to breaking of vessels. 4.    The   problem   faced   by   the   trade   due   to   issue   of   Show   Ca....

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....16- Central Excise(N.T.), dated 01.02.2016 in the CENVAT Credit Rules, 2004, in rule 3, in sub-rule (1), in clause (vii), the proviso has been omitted. 8.     Proviso   to   rule   3(1)(vii)   of   CENVAT   Credit   Rules,   2004   was   inserted   vide Notification No. 3/2011-Central Excise(NT), dated 1.3.2011. In the breaking of ships, products of section XV(base metals and articles of base metal) are obtained which are deemed to be manufactured as provided in section note 9 of Section XV of the First Schedule to the Central Excise Tariff Act, 1985.On the other hand, a number of used serviceable   ....

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....p;  products   as defined in clause (d) and (h) of rule 2 shall include non-excisable goods cleared for a consideration from the factory. 10.    At   present   there   is   a   conflict   regarding   reversal   of   credit   in   relation   to   non-excisable     goods     which     emerge     during     breaking     of     ship     viz.     whether restriction/reversal   of   credit&....