Leaf No:	008
Month:	November
Year:	2010

latest news

# National Green Tribunal (established under National Green Tribunal Act, 2010) has been officially notified on 19-10-2010 with Mr Justice Lokeshwar Singh Patna as its Chair person. The Tribunal will deal with environmental issues.

# ACES website has been updated with more user interactive procedural guidance as hosting of a self learning management software and brochure in their website www.aces.gov.in. The new developments are available in ‘What’s New’ section of ACES website. Link: http://www.aces.gov.in/WhatsNew.htm

# In tune with National Litigation Policy, instructions have been issued prescribing monetary limits for revenue to file appeals. The cap is fixed at Rs.1 lakh for appeals to be filed before CESTAT and Rs. 2 lakhs for Highcourt.

# The DGCA has amended the Rule 29B of Aircraft Rules to provide for the use of the cellular phones by passengers after the aircraft has landed and cleared the active runway, except in cases during low visibility conditions.

# The Hon’ble Supreme Court has opined that the basic knowledge of computer operations is a must for Judges, while disposing of an appeal upholding Rule 8 of Uttaranchal Judicial Service Rules, 2005.

circulars & notifications

Exemption from Additional duty of Excise and Special Additional Duty of Excise on supplies to UN and other international Organisation ... Click for copy of notification

Inordinate delay in obtaining drawback on DTA supplies to SEZ streamlined by issuing circular to the effect that Commissioners of Central Excise or Customs and Central Excise, empowered to authorize Dy./Asstt. Commissioners of Central Excise posted in Divisions under them for the purpose of disbursing drawback to DTA units against disclaimers issued by SEZ units/developers and cheque book issued by pay and Accounts officer to the jurisdictional Central Excise authorities for purpose of issuing refund can be used for this purpose ... Click here for copy of Circular

Following pure agent concept, taxable value in respect of service rendered by broker has been clarified as excluding payments on account of stamp duty, security transaction tax etc ....Click here for copy of Circular

genie in aladdin’s lamp

Indian Explosives Ltd vs Commissioner of Central Excise & Service tax, Nagpur - (2010-TIOL-1334-CESTAT-MUM): Following the judgment of Hon’ble Supreme Court in Commissioner of Central Excise, Pune vs. SKF India Ltd. 2009-TIOL-82-SC-CX it has been held by the CESTAT that interest is payable on clearance of goods to sister unit on approximate value and payment of differential duty under cost construction method later on ...Click here for copy of CESTAT Order

Commissioner of ST vs Convergys India Pvt. Ltd (2010-TIOL-711-HC-P&H-ST):

The Hon’ble High Court of Punjab and Haryana has held that reasonable delay in filing declaration for claiming refund of service tax paid on input service shall not be a reason for rejecting claim, if there is no dispute about input service. The Court has also upheld finding of lower authorities that a service cannot be disqualified as input service for the reason that same has only peripheral connection with output service as long as same is used in provision of service exported ....Click here for Judgment.

CCE, Nagpur vs Ultratech Cement Ltd (2010-TIOL-745-HC-MUM-ST) :

The Hon’ble Mumbai Highcourt has upheld the credit of service tax paid on outdoor catering by recognising the wide scope of definition of ‘input service’ as those services having nexus or integral connection with the manufacture of final products as well as the business of manufacture of final product. ....Click here for Judgment/ Click here for an analysis

CCE, Nagpur vs Manikgarh Cement (2010-TIOL-720-HC-MUM-ST) :

In yet another interesting judgment the same bench of Mumbai Highcourt which has allowed credit on outdoor catering as activity related to business has denied credit on service used for residential colony of employees as activities not qualifying to be those related to business .....Click here for copy of Judgment / Click here for an analysis

The Hon’ble Supremecourt has held mens rea as a condition precedent for levying penalty under Section 10 (b) read with Section 10 A of Central Sales Tax Act, 1956. ..... CST vs. Sanjiv Fabrics reported in 2010 35 VST 1 SC.

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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editor’s desk

-sindhu

Dear Readers,

Greetings from Team SA!

Its raining scams in India, this monsoon!!! Commonwealth scam, 2G scam, Adarsh society scam ...the number is ever on the rise. We , Indians have the liberty to fume, fret or shout , but are destined to slowly leave each scam in the labyrinth of first, second , third ...nth enquiry commission. But it is worthwhile to remember the alarming repercussion of each scam on image , revenue and integrity of our country ...

read more ...

sa corner

Chariot without fire

- p.dwarakanath

One day, while I was going to my office, all of a sudden, I found spanking new Blue and white coloured city buses of APSRTC (Andhra Pradesh State Road Transport Corporation) with a bold sing of ‘JNNURM’. I was very happy, for, the hapless commuters of my city got a boost with the raise in the number of buses and promptly forgot about everything, till I had the opportunity of going through Notification No.28/2010-ST, dated 22.06.2010. This Notification has been issued by the Government in the public interest and it envisages exemption to taxable service of construction of complex referred to in sub-clause (zzzh) of clause (105) of Section 65 of the Finance Act when provided to Jawharlal Nehru National Urban Renewal Mission (JNNURM) and Rajiv Awaas Yojana ...

read more ...

taxationext ...

GST - THE CERTAINITY

“Nothing is certain but death and taxes”

- Sir Benjamin Franklin

As we saw in the Part I of this trilogy, the States are going to get their share on imports. With the advent of GST, both CGST as well as SGST would be levied on all imports of goods and services into the country. The tax is suggested based on the destination principle. In other words, the tax revenue on SGST would accrue to the State where the imported goods or services are to be consumed. A full set-off on imports has also been proposed ...