Leaf No : 26
Month : May
Year : 2012
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Greetings from Team SA!

The Central government has tabled a 'White Paper on Black Money' before Parliament on 21st day of May 2012. A copy of same is available at website of Finance Ministry.

The report, which is the result of assurance given by government in Loksabha on 14.12.2011,runs to over 100 pages with a foreword by Hon’ble Finance Minister. Starting from  definition of ‘Black Money  the paper broadly discusses the legislations and  institutions dealing with black money and the framework available for tackling the menace. Chapter titled ‘Way forward’  lists out strategies for curbing black money from Legal and legitimate activities, criminal and illegal activities, and strategies for repatriation of black money stashed abroad.

The objective of white paper is explained by Finmin as a definite step to dispel estimates floated on black money without factual basis and also to do away with general perception that government’s response to issue of black money has been inadequate and piecemeal.

As per the White paper there are two main sources for black money – that which is generated through  illegitimate acts not permissible under law such as crime, drug trade, terrorism, corruption etc and that which is generated through accumulation of wealth without paying dues to exchequer. As per the white paper the first source is less complex and  can be curtailed through stringent intolerant attitude without compromise on co operation between central and state governments whereas issue pertaining to blackmoney generated through second source is more complex and requires major reforms.  The black money generated through illegitimate means is explained as result of human greed, declining social values and inability of state to prevent these maladies.  As per the white paper these areas require co operation and active role of State Government more than Central Government...

...read more

sa corner


After introduction of Appeal to Joint Secretary (Review) - Government of India for Service Tax also, still the option of Appeal to CESTAT is not ruled out....

... read more


effect of petrol hike !!! 

genie in aladdin’s lamp

# Constructions for landowner and personal use are subject to service tax... Click here for Copy of the Order.

# EPC contracts - Even non-commercial Government contracts are held as taxable under Works Contract Service... Click here for Copy of the Order.

# Communication issued by Assistant Commissioner denying credit of service tax is an appealable order so long as it satisfies the requirements of appealable orders on basis of SC judgment on the point... Racold Thermo Limited vs. CCE - 2012 TIOL 516 CESTAT MUM.

# Taxable value for stock broking service can only be commission received by stock broker and not other amounts like Demat, Turnover charges, BSE charges etc… LSE Securities Limited vs. CCE - 2012 TIOL 593 CESTAT DEL.

# No Excise duty is leviable on goods manufactured at construction site for use in such site for the period March 2006 to 6th July 2009 as per Notification No.01/2011 –CE dated 17.02.2011… CEC-Soma JV vs. CCE - 2012 TIOL 525 CESTAT DEL.

# For Rule 8 (3A) of Central Excise Rules, 2002 payments made through CENVAT credit during the default period also becomes good payment once the default is made good by paying the defaulted amount with interest…. Meenakshi Associates vs. CCE - 2012 TIOL CESTAT DEL.

# Credit can be availed on input services used for wind power generator located outside factory… Rajratan Global wires Limited vs. CCE - 2012 TIOL 469 CESTAT DEL.

# No bar under Cenvat Credit Rules 2004 in retaining first instalment of 50% of credit availed on capital goods even in cases of non installation or use of machinery... Jindal Polyfilm Limited vs. CCE - 2012 279 ELT 299 (Tri-Del).

# Deemed sales also to be treated as sales for the purpose of refund of Special Additional duty... CC (ICD), Delhi vs. Reliance Communications Infrastructure (P) Ltd - 2012 279 ELT 85 (Tri-Del).

# Exemption under notification no. 94/96-Cus from payment of customs duty is not available when what is exported is chassis with engine and what is imported is fully built bus as customs duty is payable on goods ‘as is presented’ to customs authorities… Ashok Leyland vs. Commr of Customs - 2012 TIOL 527 CESTAT MUM.

# Service of Orders through speed post not valid service...Amidev Agro Care Private Limited vs. Union of India 2012 TIOL 395 HC MUM CX.

before parting ...         -  jk

latest news

 INR hits all time low against USD.

 Government releases WHITE paper on BLACK money!

 Petrol price hiked around Rs 8 per litre.

 Applicability of General Anti - Avoidance Rules (GAAR) provisions deferred by one year. They will apply from Financial Year 2013-14.

 Proposed TDS on Transfer of Immovable property withdrawn.

 All offences under the Customs Act are bailable. Proposed draconian provisions withdrawn.


 Notice of amendment to Finance Bill, 2012... Click here for copy of the Notice.

  Finance Bill 2012 gets enacted as Finance Act (No. 23 of 2012) on 28th May 2012.

 The provisions of the Finance Act 2012, which would come into effect from the date of assent of the President and those provisions which would come into effect from the date of Notification...Click here for a Ready Reckoner.




# High Court of Madras holds that the sale in course of import by transfer of documents of title could be effected by handing over of documents and endorsement of documents is only one mode of proof but not the only mode of proof of High Sea Sale... Punjab Concast Steels vs. State of Tamilnadu - 2012 50 VST 65 (MAD).

# High Court of Madras holds that when a consolidated amount is collected for works contract which is inclusive of tax, no deduction is available for such tax component from total turnover... Sundaram Industries Limited vs. State of Tamil Nadu - 2012 50 VST 147 MAD.

# Rate of tax clarifications on various commodities under State Vat laws... Click here for details.

# E- services under Kerala Vat extended to Luxury Tax Act, 1976, Kerala Money Lenders Act, 1958 and Agricultural Income Tax Act, 1991.


circulars & notifications


CBEC notifies Service Tax (Settlement of Cases) Rules, 2012 vide Notification No. 16/2012 dated 29.05.2012... Click here for copy of the Notification.

# CBEC notifies Service Tax (Compounding of Offences) Rules, 2012 vide Notification No. 17/2012 dated 29.05.2012... Click here for copy of the Notification.

# Clarification issued on the rate of service tax on invoices raised prior to 31.03.12 where amounts are received after April 1, 2012, in respect of eight services under Rule 7 of POT Rules, 2011... Click here for copy of the Circular.

# Collection of market fee by Agricultural Produce Marketing committee is treated towards procurement of inputs for license holders and is entitled for exemption under Business Auxiliary Service as same relates to agriculture... Click here for copy of the Circular.

# Trade notice issued on area based exemption under Notification No.49 & 50/03- CE... Click here for copy of the Trade Notice.

# Notification No.15/2010- CE amended to the effect of prescribing additional conditions for availment of exemption from excise duty on setting up of solar power projects... Click here for copy of the Notification.

# Notification No.12/12- CE dated 17.03.12 providing for effective rates of duty further amended... Click here for copy of the Notification.

# Complete rollback on levy of excise duty on jewellery by way of exemption notification... Click here for copy of the Notification.


 # Circular on enforcement of IPR rights in case of parallel imports… Click here for copy of the Circular.

# Clarifications and public notices on export of cotton and cotton yarn… Click here for copy of the Circular.

# Notification 21/12-Cus dated 17.03.12 amended to the effect that SAD exemption on specific commodities with conditions to be applicable for imports after 01.06.2012... Click here for Copy of the Notification.

# Tariff value of gold and silver reduced… Click here for Copy of the Notification.

# Drawback rates for gold and silver revised… Click here for Copy of the Notification.

# Antidumping duty on white cement imported from UAE and Iran extended… Click here for Copy of the Notification.

# Notification issued with Amendments in Appendix 37A & Appendix 37D of Handbook of Procedure - Vol.I... Click here for copy of the Notification.

# Notification issued amending paragraph 6.9 of FTP to the effect that EOUs cannot supply marble to DTA under pargraph 6.9 of FTP... Click here for copy of the Notification.


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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m. karthikeyan +91 93400 66688
a. p. ravi +91 93400 54466
p. dwarakanath +91 93963 31929
k.s. ramesh +91 93420 45442
sindhu mangat +91 93400 11034
ganesh.k.s. iyer +91 95033 66677
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