Leaf No : 27
Month : June
Year : 2012
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editor’s desk

Greetings from Team SA!

June has been the most happening month, at least in the taxation arena. The new Service Tax regime based on the negative list concept is going to kick start from 1st July 2012, The implications of this regime is phenomenal as the new definition of “service” is an all encompassing one and may lead to even unimagined transactions being subjected to service tax levy.

At the outset, the officers involved in this mammoth exercise of law making deserves a pat for the enormous research done by them. In an exercise of such magnitude, errors, unintended consequences and practical difficulties are bound to crop up but what is more important is that the proper forum should be available to debate the issues and the tax administration should be responsive enough to listen to the woes and respond positively. The policeman attitude should not at all be there on the part of the field officers.

The magnitude of certain silly mistakes by the draftsman like not making reference to Section 66 B in Section 68, not amending the Finance Act, 2004 and 2007 to enable the continuity of levy of Education Cess and Secondary and Higher Education CESS are so huge and they can rather derail the levy itself. The ingenuity of draftsman in overcoming the defect in Section 68 by a removal of difficulty order, though laudable is not desirable as it only shows the contempt for the legislature. We all need to wait and watch as to how the Revenue is going to fill up the CESS goof up...

... read more

sa corner

Negative List - Navaratnas 


genie in aladdin’s lamp

#  Karnataka High Court holds that the dues of a deceased assessee cannot be collected from his legal heir - CCE, Bangalore Vs Shri Dhiren Gandhi - 2012-TIOL-433-HC-KAR-CX.

# Delhi High Court holds that the Capital goods used for a period of 2 to 4 years cannot be stated to be sold “as such” capital goods and the appellant was not liable to pay excise duty in accordance with Rule 3(5) of CCR, 2004 when they removed the used capital goods - Harsh International (Khaini) Pvt Ltd Vs CCE - 2012-TIOL-446-HC-DEL-CX.

# High Court of Bombay holds that it would not be open to the appellate authority or the Court to direct the assessee to pay 25% penalty beyond the date stipulated in the first and the second proviso to Section 11AC - CCE, Mumbai Vs M/s Castrol India Ltd - 2012-TIOL-464-HC-MUM-CX.

# Bharti Airtel loses a high revenue case on Customs valuation - CESTAT holdsthat in the case of import of Telecom Hardware with software preloaded the value of software has to be included in Assessable Value - M/s Bharti Airtel Ltd Vs CC, Bangalore-2012-TIOL-746-CESTAT-BANG.

# CESTAT holds that there is no provision in Finance Act, 1994 to impose personal penalty on the Director - Shri Diwan Rahul Nanda vs. CCE- 2012-TIOL-688-CESTAT-MUM.

# CESTAT by majority holds that in Maintenance and Repair Services, the service provider is required to produce documentary proof specifically indicating the value of the said goods and materials so sold by them to claim the benefit of Notification 12/2003 – ST… Safety Retreading Company (P) Ltd Vs CCE, Chennai - 2012-TIOL-697-CESTAT-MAD.

# CESTAT holds that in Erection Commissioning or Installation Service, for claiming exemption under Notification 12/2003-ST there is no need that the invoice should indicate the value of the goods sold separately…Mehta Plast Corporation vs. CCE 2012 TIOL 616 CESTAT DEL.

before parting ...         -  jk

SC for ST

latest news

 Finance Act 2012 enacted... Click here for copy of the complete enactment.

 Board issues a clarificatory letter on explaining Budgetary changes... Click here for copy of the Clarification.

 Service Tax dawns into a new regime based on "negative list" wef 1st July 2012!

 A comprehensive Education Guide about the Service Tax based on Negative List issued by CBEC... Click here for copy of the Guide.

 Pranab Da resigns as FM aspiring the helm! PM takes over Finance Ministry!




# CBEC notifies safegaurd and other procedures for CENVAT Credit refund... Click here for copy of the Notification 27/2012- CX., (N.T.), Dated : June 18, 2012.

# Cenvat Credit Rules, 2004 amended in tune with the new service tax regime... Click here for copy of the Notification 28/2012- CX., (N.T.), Dated : June 20, 2012.





# The revised edition of the FTP incorporating the changes made up to 5th June, 2012 will become operational... Click here for copy of the Notification No 1/(RE-2012)/ 2009-2014, Dated: June 05, 2012.

# The DGFT has notified that the new Handbook of Procedures (Volume I) and the Appendices to the Handbook of Procedures (Volume I) vide PUBLIC NOTICE NO. 1/(RE-2012)/ 2009-2014, Dated: June 05, 2012... Click here for the Handbook of Procedures (Vol I).

# DGFT introduces the electronic Bank Realisation Certification system( e-BRC) to claim benefits under FTP schemes... Click here for the copy of the Policy Circular No. 1/(RE-2012)/2009-14, Dated: June 18, 2012.

"negative list"


# Section 65B on Intrepretations introduced... Click here for copy of the Section.

# Charging Section under Section 66B introduced... Click here for copy of the Section.

# Section 66C to determine the Place of Provision of Service introduced... Click here for copy of Section.

# Place of Provision of Services Rules, 2012 notified vide Notification 28/2012 - ST... Click here for copy of the Rules. 

# Negative List of services notified under Section 66D... Click here for copy of the Section.

# Declared Services notified under Section 66E... Click here for copy of the Section.

# Principles of Intrepretation defined under Section 66F... Click here for copy of the Section.

# A comprehensive unified exemption notified vide Notification 25/2012... Click here for copy of the Notification.

# Service Tax (Determination of Value) Rules, 2006 amended vide Notification 24/2012... Click here for copy of the Notification.

# Abatements notified for certain services vide Notification 26/2012... Click here for copy of the Notification.

# Exemption for property tax for renting of immovable property notified vide Notification 29/2012... Click here for copy of the Notification.

# Reverse Charge notified for certain services vide Notification 30/2012... Click here for copy of the Notification.

# Exemption to GTA in respect of export goods notiifed... Click here for copy of the Notification 31/2012.

# SSi Notification for service providers notified... Click here for copy of the Notification 33/2012.

# Service Tax Rules, 1994 amended vide Notification 36/2012... Click here for copy of the Notification.

# Point of Taxation Rules,  2011 amended vide Notification 37/2012... Click here for copy of the Notification.

# Input stage rebate for export of services notified... Click here for copy of the Notification 39/2012.

# Service Tax exemption / refund of service tax on services rendered to SEZ notified... Click here for copy of the Notification40/2012.


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