Leaf No : 49
Month : April
Year : 2014
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 Major Mukund Varadarajan was killed during an encounter with terrorists in Shopian area of Kashmir. SA Times salutes India's brave son.

 India's economy is likely to recover and achieve 6 per cent growth in 2014-15 on the back of sound economic policies and a pick-up in investment - Finance Minister P Chidambaram. 

 DGCA allows use of cellphone and other electronic gadgets on all phases during flight in flight mode.

 Railways introduces Mobile & Desktop APP on Windows 8.0 for train enquiry.

 Popes John Paul II and John XXIII declared saints in double canonisation at St.Peter's Square.

 Indian activist Ramesh Agrawal wins "green Nobel" for fight against coal mining.


An appeal had been preferred by a service provider against the penalty imposed by the adjudicating authority under Section 76, 77 and 78 of the Finance Act, 1994.

In the instant case, on being brought to their notice by the department, the service provider had made the payment of service tax along with interest for the period from 2006-07 to June 2009 before the issue of show cause notice. The Adjudicating authority as well as the Appellate authority has confirmed and affirmed the imposition of penalty under the provisions of Section 76, 77 and 78 of the Act.
An appeal had been filed by the service provider against the imposition of penalty. Based on the submissions made during the course of hearing that in view of the principles laid down by the Hon’ble High Court of Karnataka in the case of CCE & ST LTU Bangalore Vs Adecco Flexione Workforce Solutions Ltd as reported in 2012 (26) STR 3 (Kar.)Commissioner of Service Tax Bangalore Vs Master Kleen reported in 2012 (25) STR 439 (Kar.), the Tribunal decision in the case of Master Kleen Vs Commissioner of Service Tax, Bangalore reported in 2010 (17) STR 365 and Commissioner of Service Tax Vs Competent Automobiles Co. Ltd, that show cause notice was not required to be issued where the amount of service tax along with interest had been paid before the issue of show cause notice, the Hon’ble CESTAT based on the rulings cited herein above have set aside the impugned order quo imposing penalties and allowed the appeal.

A/298/14/SMB/C-IV dated 21.1.14


 Madras HC quashes Rs 2400 Cr VAT demand against Nokia and orders fresh assessment.

 CBDT prescribes Standard Operating Procedure for verification and correction of demand by the AOs - Taxpayers can now get outstanding demands reduced or deleted by AOs.

 86 Countries approve New OECD Guidelines on applying National VAT to cross-border transactions.

 Shri. Ratan Tata, the former chairman of the Tata Group, has been honoured by Queen Elizabeth with a GBE (Knight Grand Cross), one of the UK’s highest civilian awards.

 Global trade to rise by 4.7 % in 2014: WTO

 CAG can audit private telecom firms: SC

 The Supreme Court allowed an annual cap of 20 million tonnes of iron ore to be extracted in Goa which was banned by it in the state for nearly one-and-a-half years.


 Suggestions invited from the Industry and Trade Associations for General Budget 2014-15 regarding changes in direct and indirect taxes.

 Improving the departmental representation in High Court / CESTAT.

 Manual filing and processing of Bills of Entry / Shipping Bills – stringent checks required to prevent misuse.

 Advance Remittance for Import of Rough Diamonds.

 Levy of provisional anti-dumping duty on imports of cast aluminium alloy wheels or alloy road wheels used in motor vehicles when imported into India from People’s Republic of China, Korea RP and Thailand for a period of 6 months.

 Amendment to Notification No. 96/2008-Customs, dated 13.08. 2008 (Duty Free Tariff Preference scheme for Least Developed Countries).

 Amendment to Notification No. 69/2011-Customs, dated 29.07. 2011 regarding concessional rates of duty for imports from Japan.

 Tariff Value of Gold and Silver increased.

 Rate of exchange of conversion of each of the foreign currency with effect from 17.04.2014.


 Prohibition on export of pulses has been extended till further orders except export of Kabuli Chana and Organic Pulses and lentils; but with a ceiling of 10,000 MTs per annum and subject to certain conditions mentioned above.

 Self-certification regarding compliance of bar-coding requirements on secondary and tertiary level packaging on export consignment of pharmaceuticals and drugs.

 Export of pulses to Republic of Maldives in terms of Notification No. 77(RE-2013)2009-2014 of 27.03.2014 would be permitted through M/s. PEC Ltd

 Amendment in the date of effect for implementation of Self-certification regarding compliance of bar-coding requirements on secondary and tertiary level packaging on export consignment of pharmaceuticals and drugs.


 Stay of recovery pending appeal-direction of Appellate Authority to pay part of tax and furnish BG for balance. Dealer to be permitted to execute personal Bonds instead of BG - Uttam Marketing Vs Appellate Deputy Commissioner (CT) II, Chennai & Anr - 2014 69 VST 136 (Mad).

 Goods liable to tax at point of sale -liability to tax cannot be shifted to purchasing dealer on ground of exemption to selling dealer - A.P Paper Mills Limited Vs State of Andhra Pradesh  - 2014 69 VST 242 (AP).

 Tribunal being a quasi-judicial authority cannot abdicate its powers on an erroneous premise that it has no jurisdiction to opine whether an order passed by High Court is no longer good law based on subsequent judgments of Supreme Court - J.S Polymers India (P) Ltd Vs State of Haryana & Anr - 2014 69 VST 436 (P&H).

 Limitation prescribed mandatory and time limit cannot be diluted - Assessee not entitled to relief  - Godrej Industries Ltd Vs State of Tamilnadu - 2014 69 VST 264 (Mad).

 Subsequent decision of High Court not sufficient reason to condone four years delay in filing appeal against Assessment Order - Ritek Steels (P) Ltd Vs State of Haryana & Ors - 2014 69 VST 277 (P&H).

 Diesel purchased by sugar manufacturer at concessional rate of tax against Form C, for cane procurement and repair and maintenance of farm equipment, does not amount of violation of purpose of which diesel authorised to be purchased - Triveni Engineering & Industries Ltd Vs Commissioner, Trade Tax - 2014 69 VST 353 (All).

 Order passed by Tribunal in revision application not appealable before the High Court - State of Gujarat Vs Shakti Containers - 2014 69 VST 298 (Guj).


 Assesee entitled for input credit contained in scrap generated during manufacture of exempted goods - CCE vs Albert David Ltd - 2014-TIOL-36-SC-CX.

 Unless the sales tax is actually paid to the Sales Tax Department, no benefit towards excise duty can be given under the "transaction value" under Section 4(4)(d} - CCE vs Super Synotex India Ltd - 2014-TIOL-19-SC-CX.

 Activities such as sample testing, re-branding etc., would not amount to manufacture and would not fall within Note 5 of Chapter 38 of CETA Schedule - CCE vs Indian Additives Ltd - 2014-TIOL-509-HC-MAD-CX.

 Mere taking of cevnat credit is not sufficient for claiming interest as well as penalty - CCE Vs Strategic Engineering Pvt Ltd - 2014-TIOL-466-HC-MAD-CX.

 Drawback on re-export is allowed only when re-exported within stipulated time of two years - ONGC vs Union of India - 2014-TIOL-587-HC-DEL-CUS.

 Period of limitation for preferring SAD refund claims not applicable retrospectively - Sony India Pvt Ltd vs Commr. of Customs - 2014-TIOL-532-HC-DEL-CUS.

 DGFT has power to entertain appeals filed against rejection of applications for TED refund - Motherson Sumi Electric wires vs UOI - 2014-TIOL-417-HC-DEL-EXIM.

 Payment of VAT on sale or supply of food by caterer does not absolve him from payment of service tax on a taxable service provided as an outdoor caterer - Indian Coffee Workers Co-operative Society Ltd vs CCE - 2014-TIOL-499-HC-ALL-ST.

 Levy of service tax on restaurants upheld - Indian Hotels & Restaurant Association vs UOI - 2014-TIOL-498-HC-MUM-ST.

 Refund of Service tax paid on export of services hit by timebar under Section 11B - Andrew Telecom India Private Ltd vs Commr. Customs - 2014-TIOL-497-HC-MUM-ST.

 Commissioner (Appeals) has the power to remand in service tax cases - CST vs Associated Hotels Ltd - 2014-TIOL-463-HC-AHM-ST.

 Deputation of employees by asseseee company to its group company is not covered under manpower supply service - CST vs Aravind Mills Ltd - 2014-TIOL-441-HC-AHM-ST.

 Cylinder testing charges incurred by manufacturers of cuastic soda are not includible in assessable value of liquid chlorine - CCE vs Grasim Industries Ltd - 2014-TIOL-573-CESTAT-DEL.

 Amendment of exempted service as including trading is prospective from 01.04.2011. But credit to be reversed even prior to this date, by considering total value of trading and not margin alone - Mercedez Benz India Pvt Ltd vs CCE - 2014-TIOL-476-CESTAT-MUM.

 Credit of service tax paid on construction service can be availed when service was rendered and billed and payment had been made prior to 01.04.11 - SMT Ltd vs CCE - 2014-TIOL-620-CESTAT-MUM.

 Royalty payments made to foreign collaborator or consultancy service charges paid are not includible in value of goods imported - Foseco India Ltd vs Commr. of Customs - 2014-TIOL-552-CESTAT-MUM.

 When there is misdeclaration of quantity of goods law does not stipulate that only differential quantity misdeclared is to be confiscated - Laxmi Exports vs Commr.of Customs - 2014-TIOL-521-CESTAT-MUM.

 Issue of  arriving at the cost of production when raw material received from their own unit under Rule 8 should be adopted as 115%/110% has been referred to LB - ITC Limited vs CCE - 2014-TIOL-605-CESTAT-MAD.

 Whether the issue of availing SAD refund endorsement regarding non - availment of credit is mandatory has been referred to LB - Chowgule & Company Ltd vs CCE - 2014-TIOL-639-CESTAT-MUM.

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