Leaf No: 76 Month : Jul - Aug Year : 2016

Greetings from Team SA!

 The INEVITABLE is round the corner. The Constitution (One Hundred and Twenty Second Amendment) Bill, 2014 relating to Goods & Services Tax (GST) passed by both Rajya Sabha and also by Lok Sabha.

We, at Swamy Associates are committed to educating ourselves and our pensive clients on the implications of various provisions of the Model GST law as is available in public domain and also to take this further by discussions and articles till and after implementation of GST.

Beginning from September, we are committed to bring to you every week detailed analysis of provisions of GST law through a weekly update. Also we are more than happy to address queries of all sorts on GST from our subscribers so as to ensure effective handholding during the transition stage and in future.

 Justice Dr. Satish Chandra takes over as the new President of CESTAT.

 Department of Chemicals and Petrochemicals is implementing the Petroleum Chemical and Petrochemical Investment Region (PCPIR) Policy to promote investments, boost manufacturing and generate employment.

 The Union Cabinet has approved abolition of existing "Guidelines for establishing Joint Venture Companies by Defence Public Sector Undertakings (DPSUs)".

 The Union Cabinet has given its ex-post facto approval for amendment relating to increase in overtime hours from the existing 50 hours per quarter to 100 hours (Section 64) and existing 75 hours per quarter to 125 hours (Section 65) and consequential amendment of section 115 of the Factories Act, 1948 by introducing the Factories (Amendment) Bill, 2016 in the Parliament.

 The Department of Expenditure, Ministry of Finance has issued comprehensive guidelines on 5th August, 2016 for appraisal and approval of public funded schemes and projects.

 Department of Heavy Industry has formulated FAME – India Scheme [ Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] having thrust on hybrid and electric vehicles to become the first choice for the purchasers so that these vehicles can replace the conventional vehicles and thus reduce fossil fuel consumption in the country from the automobile sector.

 Import of Hazardous Waste.

 MEP on export of Potato.

 Import of Unmanned Aircraft System / Unmanned Aerial Vehicle / Remotely Piloted Aircraft / drones are ‘Restricted’.

 Policy condition for import / export of human biological samples for commercial purposes is laid down.

 Minimum Import Price (MIP) for 66 HS Codes under Chapter 72 of ITC (HS), 2012 – Schedule – 1 (Import Policy) as detailed in the Annex is extended till 4 / 10 /  2016.

 A new scheme called Special Advance Authorisation Scheme for export of Articles of Apparel and Clothing Accessories of Chapter 61 & 62 of ITC (HS) Classification is introduced with effect from 1 / 9 / 2016.

 C.I.F. value of Import of consumer electronic items at any one time by any person through port or otherwise for personal use is enhanced to Rs.50,000.

 M/s Trans Border Safety Control Inspection Services LLC, USA has been delisted from Appendix 2 G.

 Facility of clubbing is being allowed for Advance Authorisations for Annual Requirement issued during Foreign Trade Policy period 2009-14 and 2015-20 wherever exports and imports have taken place as per SION notified.

 Relief in Average Export Obligation in terms of Para 5.19 of Hand Book of Procedures of FTP 2015-20.

 Closure of EPCG authorizations in case of supplies to SEZ units which have been made prior to 01.04.2015 and where exports proceeds have not been realized through Foreign Currency Account (FCA) of the SEZ unit.

 Deduction of State / Central Taxes collected from the customers while calculating foreign earnings for SFIS/SEIS Schemes.

 Reconstitution of Board of Trade (BOT).

 VKGUY benefits on export of grapes including packing material.

 Classification of Tamarind Kernel Powder.

 Manual signatures on digitally signed invoices.

 Classification of Micronutrients, Multi-micronutrients, Plant Growth Regulators and Fertilizers-clarification regarding classification of Glyphosates.

 Clarification on eligibility and exemption [SSI] in respect of manufacturer of articles of jewellery or parts of articles of jewellery.

 Guidelines for Excise Audit of Manufacturers of articles of jewellery or parts of articles of jewellery.

 Export related procedural simplification on articles of jewellery.

 General procedures regarding excise duty on articles of jewellery or parts of articles of jewellery.

 Guidelines for issue of summons, visits, search, seizure, arrest and prosecution regarding manufacturers of articles of jewellery or parts of articles of jewellery.

 Taxability of stock on February 29, 2016 on articles of jewellery in the Budget.

 Instructions regarding provisional attachment of property under Section 73C of the Finance Act, 1994.

 Service Tax on freight forwarders on transportation of goods from India.

 Permission to pay service tax through non electronic modes.

 Procedure regarding Duty Free Shops.

 Revised guidelines for Accredited Client Programme (ACP) and Authorized Economic Operator (AEO) programmes.

 Assessment of Bulk liquid Cargo.

 Removal of mandatory warehousing requirements for EOUs, STPIs, EHTPs.

 Procedure for exports through Foreign Post Office Delhi / Mumbai / Chennai using e-commerce platform under MEIS Scheme of Chapter 3 of FTP (2015-20).

 Benefit of Notification No. 24/2005 on micro / mini SD card extended.

 Notification No. 12/2012 - Customs, dated 17.03.2012 [S. No. 284A] amended.

 Notification No. 27/2011-Customs, dated 01.03.2011 amended.

 Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules amended.

 Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver.

 Rate of exchange of conversion of foreign currency wef 22/7/2016.

 Notification of goods under Section 123(2) of the Customs Act, 1962.

 Export Manifest (Aircraft) Regulations, 1976 amended.

 Import Manifest (Aircraft ) Regulations, 1976 amended.

 1% excise duty on parts of articles of jewellery prescribed.

 Partially exemption of Central Excise duty on articles of jewellery.

 Notification No.8/2003-Central Excise dated 1st March, 2003 amended.

 Notification No.17/2011-Central Excise, dated the 1st March, 2011 amended.

 Excise duty specific exemption on ethanol withdrawn.

 The first sale value of articles of jewellery or parts of articles of jewellery or both is notified as the tariff value.

 Articles of Jewellery (Collection of Duty) Rules, 2016 notified.

 Central Excise Rules, 2002 amended in relation to articles of jewellery.

 CENVAT Credit Rules, 2004 in relation to articles of jewellery amended.

 Modified format provided for quarterly return, ER-8, for return of excisable goods cleared at the Central Excise duty rate of 1% [including articles of jewellery or 2%.

 Notification No. 35/2001-Central Excise (N.T.) amended under simplified registration procedure for jewellery.

 Exemption to a manufacturer of articles of jewellery or parts of articles of jewellery or both, from filing of annual return.

 Exemption to  a manufacturer of articles of jewellery from taking central excise registration upto the full exemption limit.

 Facility to avail of CENVAT credit of duty paid on molasses is withdrawn.

 Clause (v) of rule 5 and rule 6 of Central Excise (Amendment) Rules, 2016 shall come into force w.e.f 17th August 2016.



 When minimum processes not amounting to manufacture are undertaken at the end of manufacturer on jobworked goods, excise duty is to be discharged on value as prescribed under Rule 12B and not on sale value of goods - CCE V Kitex Ltd - 2016 TIOL 110 SC CX.

 Issue whether the amounts collected towards charitable purposes through excise invoices are to be included in the assessable value has been referred to the Larger bench - D.J.Malpani V CCE - 2016 (337) ELT 484 SC.

 The rate of tax which happened to be higher than that prescribed in budget proposal cannot be questioned on ground that financial proposals put forth by Finance Minister overrides any subsequent modification effected by Parliament - Amin Merchant V Chairman, CBEC - 2016 TIOL 114 SC CUS.

 Fatty palm emerging in manufacture of edible oil does not entitle the manufacturer to claim benefit under notification 21/2002 which is available for production of fatty acids - CCE Vs. Gujarat Ambuja Exports - 2016 TIOL 118 SC CUS.

 High Court upholds validity of retrospective operation of Rule 57F (4A) providing for lapse of accumulated credit - SML Isuzu Ltd & Anr V UOI & Anr - 2016 TIOL 1568 HC DEL CX.

 When proceedings are initiated against the parent company on basis of allegation that excise duty is evaded through creation of another dummy company, it is mandatory to serve independent notice on such dummy company and service of copy of notice issued to parent company would not suffice the statutory requirement - Premier Heavy Engineering Corpn. V CCE 2016 (337) ELT 332 (GUJ).

 Settlement commission can reopen their order on an application for revision filed by applicant on ground that there was an error in calculation of duty liability - Salvo Explosives and Chemicals Limited V CE - 2016 337 ELT 11 A.P.

 Department should not refuse to comply with binding precedents for the reason that same are subject matter of further appeal or review - Yu Televentures Pvt Ltd V UOI - 2016 TIOL 1641 HC DEL CUS.

 Personal properties owned by Directors of the Company cannot be attached for realizing the Company dues / arrears, in the absence of specific provisions for such recovery in Customs Act - V.A.Ramesh & Ors V Asst Commissioner of Customs - 2016 TIOL 1600 MAD CUS.

 Rejection of request for advance license by DGFT on the basis of the instructions of the DRI in absence of any independent inquiry suffers from legal infirmity - Krishna Trading Company V ADGFT - 2016 TIOL 1630 HC AHM CUS.

 Corrigendum is deemed to be a correction in the original order and therefore, whatever effect the corrigendum seeks to grant to notification would be with effect from the date of Original Notification - V5Pollymers Pvt Ltd V UOI - 2016 TIOL 1601 HC MAD CUS.

 In absence of any order recording reasons under proviso to Section 110, the Department is not having power to retain imported goods for longer period - Worldline Tradex Pvt Ltd V Commr of Customs - 2016 TIOL 1550 HC DEL CUS.

 Mandatory pre-deposit under Section 35F is applicable even for lis which arose prior to 06.08.2014 and appeal filed after 06.08.2014 - Nimbus Communications Ltd V CST - 2016 TIOL 1708 HC MUM ST.

 Levy of service tax on activity of contract manufacturing of alcohlic liqour for human consumption by one entity for another is not covered by Entry 51 of sate list and hence is amenable to levy of service tax by parliament under Sentry 97 of Union list - Carlsberg India Pvt Ltd V UOI - 2016 TIOL 1646 HC DEL ST.

 Explanation to Section 32-O (1) inserted on 06.08.2014 is remedial provision and is hence applicable only prospectively - Madhucon Projects ltd V Customs Excise and Service tax Settlement Commission 2016-TIOL-1576-HC-AP-ST.

 Section 32-O (1) (i) bars a second application for settlement only if penalty was imposed in an earlier application filed by the assessee or concealment of duty liability before the Settlement  Commission itself - Madhucon Projects ltd V Settlement Commission - 2016 TIOL 1576 HC AP ST.

 When applicant under VCES scheme deposited cheque towards fulfilment of 50% of service tax liability on due date of 31.12.2013 and same was cleared on 08.01.14, , date on which cheque has been deposited is taken as date of payment - Disha Seurities and Manpower Ltd V AC of S.T - 2016 43 STR 82 (Del).

 Providing security to banks is soverign function of State and hence is not covered under definition of Service - State of Punjab V UOI - 2016 43 STR 177 ( P &H).



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