Leaf No : 32
Month : November
Year : 2012
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editor’s desk

Greetings from Team SA!

What has been more controversial than arrest of two girls over their post on Facebook about the shut down of their city, on the wake of Shiv Sena chief Bal Thackeray‘s death, has been the misuse of Section 66A of Information Technology Act, 2000. The section has been used, rather misused, frequently for silencing citizens for giving expression to their reactions to the state of affairs in a democratic country. Another instance of invocation of the said section in the recent past is, apart from the arrrest of te two girls, Mumbai police detained another student for a Facebook comment, over an alleged abusive post, targeting the Maharashtra Navnirman Sena Chief - Raj Thackeray. The boy was released after it was found that his account had been hacked. In October, Ravi Srinivasan, a 46-year-old businessman in the southern Indian city of Pondicherry, was arrested for a tweet criticising Karti Chidambaram, son of Indian Finance Minister P Chidambaram. He was later released on bail. In September, there was outrage, when a cartoonist was jailed in Mumbai on charges of sedition for his anti-corruption drawings. The charges were later dropped. And in April, the West Bengal Government arrested a teacher who had emailed to friends a cartoon that was critical of Chief Minister Mamata Banerjee. He too was later released on bail.

The said Section 66A is so widely worded that it could be interpreted in any way classify any information as offensive and can be proceeded against and further it appears to endanger the fundamental right of freedom of speech and expression conferred under the supreme law of India, Article 19 (1) (a) of the Constitution.

The said Section has now been challenged by a student in the Supreme Court, by way of a PIL, with a prayer to make Offences under Section 66A as non cognisable. Hearing the PIL, the Bench comprising of Chief Justice Altamas Kabir and Justice Jasti Chelameswar had given the Government a day's time to respond to the PIL . Attorney General GE Vahanvati is to appear before the Supreme Court on 30-11-2012, to clarify the Government's position on PIL.

As the conflict is between the freedom of expression and its misuse, the verdict will definitely be a landmark one….

...read more

sa corner

 Negative List Articles

As we all know, if a manufacturer is manufacturing both dutiable goods and exempted goods or if a service provider provides both taxable and exempted services, the vice of Rule 6 of Cenvat Credit Rules, 2004 would be attracted...

...read more


new look from new year ...

genie in aladdin’s lamp

# Shifting of ongoing construction contracts under works contract from 01.06.07 for availing composition scheme is not permissible. Apex Court affirms AP High Court judgement...Nagarjuna Construction Company Ltd vs. GOI - 2012-TIOL-107-SC-ST.

# When the excise duty demand itself is time barred, voluntary payment by assessee does not automatically call for payment of interest…CCE vs. Gujarat Narmada Fertilizers Co.Ltd - 2012 285 ELT 336 (Guj.)

# CVD paid on inputs is eligible for rebate eventhough during relevant period CVD was not specifically included under Notification No.21/2004-C.E...CCE vs. Joint Secretary - 2012-TIOL-937-HC-DEL-CX.

# While demanding duty on excisable scrap Department is bound to classify the product under appropriate tariff heading…Deepak Fertiliser and Petrochemical corporation vs CCE - 2012-TIOL-1646-CESTAT-MUM.

# When the job worker is wrongly availing the benefit of exemption notification, the job worker is liable to pay duty and not the principal manufacturer…CCE vs ACC machinery Company Limited - 2012-TIOL-1547-CESTAT-MUM.

# Input service distributors are not required to distribute proportionate credit till 01.04-12…Eveready Industries India Ltd vs CCE - 2012-TIOL-1635-CESTAT-MAD.

# Wrong classification of service by input service provider shall not affect eligibility of recipient to claim refund if the services are covered under Notification 41/07-ST…Max India Limited vs. CCE - 2012 28 STR 248 (Tri-Del).

# Sale of immovable property by holder of power of attorney and retaining differential amount between sale consideration and amount mentioned in purchase agreement amounts to provision of ‘Real Estate Agent Service’…Gauri Ganesha Real Estates Vs. CST - 2012 28 STR 302 (Tri-Bang).

# CESTAT cannot entertain appeals from orders passed under Section 110A pertaining to provisional release of seized goods…Akanksha Syntex Pvt Ltd vs CCE - 2012-TIOL-1697-CESTAT-MUM.

# In absence of value addition, concept of ‘deemed manufacture’ under Section 2 (f) of Excise Act is not applicable to labelling, relabeling and repacking transactions…In Re: Amazon Seller Services Private Limited - 2012 285 ELT 449 AAR.

# When inputs are procured without payment of duty, the assessee cannot clear final product for export paying duty in order to claim rebate…In Re: Duke Consumer Care Ltd - 2012 285 ELT 475 GOI.

before parting ...         -  jk
latest news

 Shri SK Gaule, Technical member, transferred to CESTAT Mumbai, Shri Mathew John transferred to CESTAT Chennai and Shri Sahab Singh Member transferred to NewDelhi.

 Industrial organisations appeals to TN State government to remove VAT on generator sets in view of long hours (almost 14 hours in places other than Chennai) of powercuts!!!!

 Delhi High Court has issued notices to social networking sites including Google and Facebook, on pleas by an NGO and Churches seeking to remove defamatory, derogatory and malicious content from their sites.

 Delhi High Court has become the first court in the country where e-court fee system is implemented.




# Development of software with a condition that the entire IPR vests with the client does not involve any sale of goods and not taxable under Works Contract service...Sasken Communication Technologies Ltd vs Joint Commr. Of Commercial Tax - 2012 55 VST 89 (Kar).

# Transfer of right to use passive telecommunication structure does not amount to deemed sale under Article 366 (29-A) (d) of Constitution for levy of sales tax as active possession and control is with service provider...Indus Towers Ltd vs DCCT - 2012 285 ELT 3 Kar.

# Sale of medicines and other consumables to patients in course of treatment is subject to VAT...Sanjos Parish Hospital vs. CTO - 2012 55 VST 208 Ker.

# Property in consumables used by jobworker is deemed to have transferred to the customer and hence VAT is payable on value of such materials...CST vs. Ramdas Sobhraj - 2012 55VST 420 Bom.

# A transaction can be treated as inter state sales in absence of specific mention in agreement if there is a live and conceivable link between sale and movement of goods...ABB Ltd vs Commr, Delhi VAT - 2012 55 VST 1 (Delhi).# Luxury tax not leviable on Club by equating same as ‘hotel’...East Cultural Association vs State of Karnataka - 2012 55 ELT 463 Kar.

circulars & notifications


# Excise Exemption to equipments and stores supplied to defence project – ASTRA...Click here for the Notification.

# Customs Exemption to import of machinery, equipment etc for use in defence project – ASTRA...Click here for the Notification.

# Trade facility notice issued on the export procedures for excisable goods by Central Excise, Shillong…Click here for the Trade Notice.

# Authorised Economic Operator programme - Revised guidelines issued...Click here for the Guidelines.

# Amendment to Handling of Cargo in Customs Areas Regulations, 2009...Click here for the Amendment.

# Amendment to Customs House Agents Licensing Regulations 2004...Click here for the Amendment.

# Provision for return of original importers copy of bill of entry and TR 6 Challan while filing SAD refund claims...Click here for the Public Notice.

# Public Notice regarding refund of customs duty paid twice by mistake during e-payment...Click here for the Public Notice.

# Standing order regarding inclusion of agency commission on exports in FOB value for claiming export benefits...Click here for the Standing Order.



# Restoration of service specific accounting codes for period post 01-07-12...Click here for the Circular.

# Service tax liability on renting of buildings to government for non commercial purpose – trade notice issued by Delhi Service tax Commissionerate...Click here for the Trade Notice.

# Point of taxation on works contract service pre and post 01.07.12 has been explained by Service Tax Commissionerate, Delhi...Click here for the Trade Notice.




# Public notice regarding amendment in Appendix 25B HBP Vol. I (Appendices and Aayat Niryat Forms) regarding of Bank Guarantee (BG)/ Legal Agreement (LUT)...Click here for the Public Notice.

# Public notice regarding claim of TED by recipient of goods...Click here for the Public Notice.

# Liberalisation of period of realization and repatriation of export proceeds to India by specified category of persons...Click here for copy of the Circular.


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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