Leaf No : 29
Month : August
Year : 2012
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editor’s desk

Greetings from Team SA!

Chief Justice of India, Shri. S.H. Kapadia’s lecture on Saturday raises various issues of Constitutional roles of different pillars of democracy. The concern of the CJI comes at a crucial time. Day in and day out, we hear about so many scams. The amount stated to be involved in those scams are phenomenal. It is strange that the political parties at state level who opposed auction of coal fields are now crying foul at national level.

If a world class airport has to come up in our country, various sops have to be given to attract investment. Per se, it cannot be alleged that the Government has lost crores and crores of rupees. The C & AG should also be realistic in its approach. There is no second opinion that if at all anybody is guilty in squandering our national wealth for their personal gains they have to be subjected to exemplary punishment. At the same time, instead of just jumping to conclusion that the scam involves lakhs of crores of rupees, a holistic view of the issue, from economic development, social development perspective should be made.

The media will now forget 2G and move on coalgate and then to something else. Nowadays, politics has become a most profitable business and there is hardly few people in politics only to serve the country. Ingenuous methods are invented by politicians to plunder as much as possible during their tenure. So I am not trying to give any clean chit to anybody.

But, what is the need of the hour is a balanced approach to allegations of scam, not blowing it out of proportions, avoidance of trial by media, quick completion of investigations and exemplary punishment to the guilty.

 
 
" intaxicated "

Due to the increased scope of Reverse Charge in Service Tax, every time, for each invoice, it is very important to identify the status of the service provider, for discharging the service tax liability. 

How to identify the status of the Service Provider from the invoice?

...Click here for the 

 
 


 
genie in aladdin’s lamp

# High Court of Madras holds that the assessee, as a matter of right, is not entitled for details of the inter-departmental communication during the pendency of the showcause notice proceedings... M/s Victoria Marine & Agro Exports Ltd Vs Joint Director General of Foreign Trade, Chennai 2012 TIOL 600 HC MAD CUS.

# Bombay HC holds that when the credit on inputs are reversed before utilisation, the assessee is entitled for benefit of duty free import of inputs under DFIA scheme... Steelco Gujarat Ltd vs. Union of India 2012-TIOL-572-HC-MUM-CUS.

# CESTAT holds that as long as the goods manufactured for a customer bear the brand name of that customer, the SSI exemption would not be available, irrespective of whether the customer sells the goods as such or uses the same as inputs in the manufacture of other goods... Unishilp Electronics P Ltd vs. CCE 2012-TIOL-947-CESTAT-DEL.

# CESTAT holds that the godown has to be treated as place of removal for the purpose of availing input service credit on services such as transportation, storage etc... DSCL Sugar vs. CCE 2012-TIOL-963-CESTAT-DEL.

# CESTAT holds that the Cenvat credit on the capital goods cannot be denied on the ground that the capital goods were not brought into their factory before they were sent to the job worker... CCE vs ATC Beverages Private Ltd 2012-TIOL-1003-CESTAT-BANG.

# CESTAT holds when assessee has entered into different contracts for supply of equipment and erection and installation thereof , value of erection and commissioning shall not be treated as part of assessable value... CCE vs. Kirloskar Oil Engines Limited 2012-TIOL-1057-CESTAT-MUM.

# CESTAT holds that the extra duty deposit (EDD) is in nature of security deposit and hence the provisions of Section 27 does not apply to refund of such amount... CCE vs. Madras Fertilisers Limited 2012-TIOL-984-CESTAT-MAD.

# CESTAT holds that the claim for refund of SAD has to be filed within one year as per Notification 102/2007 and the proviso of Section 27 of Customs Act cannot be read into the Notification... Global International vs. CCE 2012-TIOL-934-CESTAT-DEL.

 
 
before parting ...         -  jk

"the lost eNTiTy"

 
 
 
latest news

 Smt Sandhya Baliga, IRS is appointed as Member of the Central Board of Excise and Customs.

 GST Bill would be passed before the end of the current financial year - Finance Minister.

 Government of India revisits decision to impose service tax on remittances by NRI.

 CBEC to introduce 24x7 Customs clearance operations at 4 seaports and 4 air cargo from Sept 1, 2012.

 Govt proposes to amend Industrial Licensing Rules. 

 PM relaxes ban on land transfer for infrastructure projects.

 Special Focus Market Scheme now covers 48 countries.

 

 Govt provides 30% subsidy for solar anterns and home lights.

 India wins UN Prize for inspiring environmental action.

 Govt okays revival of 43 loss-making CPSEs.

 Agri Sector & Manufacturing to grow by 0.5% & 4.5% respectively.

 Indian exports reached USD 22.4 bn in July.

 Rs 3037 Cr lying unclaimed in Insurance Sector.

 Bank fraud takes quantum jump to Rs 3800 Cr.

 India all set for Rs 450 Cr 'Mars Mission' next year.

 Monthly per capital expenditure of bottom 10% rural population is Rs 503!

 

 
circulars & notifications

# 24X7 Customs clearance with effect from 1.9.2012 at identified Air Cargo Complexes and Seaports... Click here for Copy of the Circular.

# Policy provisions for import of Rough Marble Blocks and Travertine for the financial year 2012-13 notified... Click here for Copy of the Notification.

# No service tax on the amount of foreign currency remitted to India from Overseas... Click here for copy of the Circular.

# CBEC amends Notification 12/2012 to substitute 1% tax rate against various serial numbers... Click here for Copy of the Notification.

# New rate of exchange to be effective from 17th August 2012 notified... Click here for Copy of the Notification.

# Service Tax Rules amended incorporating liability of recipient in case of services by Director to Company and Security Services... Click here for Copy of Notification.

# Company to pay service tax under reverse charge on services provided by Director to Company and Security Services... Click here for Copy of the Notification.

 

 SERVICE TAX CASES

# High Court orders no coercive action in respect of services provided and invoices issued before 01.04.2012, but payment received after 01.04.2012, service tax needs to be paid at 12%... Delhi Chartered Accountants Society vs. Union of India 2012-TIOL-585-HC-DEL-ST.

# CESTAT holds that if service tax is paid by mistake on services which are wholly consumed inside SEZ, such unit is entitled for refund of service tax paid under the provisions of Section 11B of the Central Excise Act, 1944 read with Section 83 of the Finance Act... Tata consultancy services vs. CCE 2012-TIOL-1034-CESTAT-MUM.

# CESTAT holds that the Export of Service Rules owes it origin to GATT and therefore only when the user and the use of the service are located outside India, the transaction amounts to export and not otherwise... LiifeCare Medical systems vs. CST 2012-TIOL-993-CESTAT-MUM.

# CESTAT holds that the construction of residential complexes on own land and selling the residential units in such complexes to customers is not leviable to Service Tax till the date of insertion of Explanation on 01.07.2010 in Section 65(105)(zzzh) of the Finance Act, 1994... CCE vs. VEE Aar Developers Private Limited 2012-TIOL-1083-CESTAT-DEL.
 

 
disclaimer

The views expressed and the information provided in this newsletter are of general nature and is not intended to address the circumstances of any particular individual or entity. Further the above content should neither be regarded as comprehensive nor sufficient for making decisions. Although we endeavor to provide accurate and timely information, there is no assurance or guarantee in this regard. No one should act on the information or views provided in this publication without appropriate professional advice. It should be noted that no assurance is given for any loss arising from any actions taken or to be taken or not taken by anyone based on this publication.


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