Leaf No:    007
Month:   October
Year:   2010
latest news


#   CESTAT to get new Technical members - Government has cleared five Commissioners - Mr. PR Chandrasekharan, Mr. Mathew John, Mr. P. Babu, Mr. Sahab Singh and Mr. AK Prasad for the appointment as Technical Members of the CESTAT. They all have over eight years of experience as Commissioners and two of them are Law Graduates - Welcome to Judiciouly Technical members ! 

#   No extension of IT exemption to STPI's after its sunset on 31.3.2011 . 

#   Service tax levied on air tickets is in contravention to the International Civil Aviation Organisation Rules  says The Director General and CEO of IATA -Internatioanlly illegal levy!


 #   Board clarifies on conversion of free shipping blills to export promotion schemes.... Click here for the Circular... What if Board proposes and Field refuses!!! 

#   Indirect tax revenue which includes customs, central excise and service tax, soared by a whopping 45.9 per cent and stood at Rs 12,4170 crore during the April-August period of current fiscal - Recession is over!!! 
circulars & notifications


Revised All Industry Drawback Rates have been notified - No refund if Service Tax refund is taken.....Click here for Circular & Notification No 84/2010 (N.T)


central excise

Reversal of cenvat credit availed on the unused inputs partially written off is required, if the inputs are not capable of use in the manufacture of finished goods….Click here for copy of Circular


service tax

New services added to Finance Act, 2010 has been notified as falling under residuary category for Export of Service Rules, 2005 and services provided from outside India and received in India Rules, 2006.... Click here for copy of Circular.

genie in aladdin’s lamp

CCE, Bangalore-I vs M/s BAL Pharma Ltd ( 2010-TIOL-74-SC-CX)

Honble Supreme Court holds that as it is evident from the impugned order passed by the Customs, Excise and Service Tax Appellate Tribunal, Mumbai which has held that the physician's samples have to be valued on pro rata basis, relying on its earlier decision in the case of Sun Pharmaceuticals Industries & Ors. vs. CCE, Surat and as admittedly, the said decision of the Tribunal has not been challenged by the Revenue and as such, the issue has attained finality.

CCE, Bangalore Vs M/s Madras Cements Limited (2010-TIOL-650-HC-KAR-CX)  

Karnataka High Court holds Electric Bulbs and Rubber Strips fall within the ambit of components, spares and accessories of goods falling under Ch. 85 of the CETA, 1985 and are capital goods and are entitled for Cenvat Credit.


The Lakshmi Vilas Bank Ltd vs CCE, Trichy (2010- TIOL-1165-CESTAT - MAD)  

CENVAT Credit of service tax paid for construction of “Executive Staff Quarters” for the Bank – Credit is admissible as the input service includes "services used in the premises of a provider of output service holds CESTAT Chennai. Ironically, The decision holding that credit is not admissible on "outdoor catering" service on canteens inside the factory is also from CESTAT chennai. (Ghar ke liye hai, khana ke liye nahi hai!!!)


M/s Tablets India Limited Vs Joint Secretary, Ministry Of Finance, Department Of Revenue, New Delhi (2010-TIOL-652-HC-MAD-CX) 

Madras High Court holds when factum of export is not doubted, rebate cannot be denied even if all the conditions of the notification are not complied with.


India Meters Limited vs State of Tamil Nadu (2010 34 VST 273 SC)

Hon’ble Supreme Court holds that in case of sale of goods when transfer of property takes place at the place of buyer to which seller is under obligation to transport goods, the freight charges to carry goods from his place to place of buyer would form part of sale price and tax is to be discharged on amount inclusive of freight.

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 - team sa

Dear Readers,

Greetings from Team SA.

With introduction of clean energy cess, environment and taxes are bonded in a wedlock that it would not be inappropriate for a tax lawyer to be a little more enviro-conscious than usual. The focus has therefore temporarily shifted from struggling foetus of GST to horizons of global warming and paraphernalia.

It was not so surprising to read that carbon Trading is growing at a rate faster than IT and BPO Sector in India. This is because after GATT, the next most discussed international treaty would be ‘Kyoto Protocol’ which brought in what is known as ‘Cap and Trade’ which is a pollution control system wherein economic benefits are attached to being environment-conscious in reducing greenhouse effect. Carbon trading or emission trading is one such mechanism where in emission of carbon is maintained globally at a particular level by enabling trading in ‘carbon credit’. Carbon credit is earned by industries/individuals on successfully emitting no carbon or less carbon than the permissible limit. The cap for emission is set by government agencies or international organisations. The industries possessing carbon credit can trade with industries which pollute more and are not able to maintain emission levels below the cap.

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sa corner

Is Education Service a Service Industry            - m. karthikeyan

Maximum Retail Price (MRP for short) is a term which has huge significance under the Central Excise Act. Initially, levy of Central Excise Duty was on the activity of manufacture in real terms and for the purpose of paying central excise duty, only the normal selling price at the hands of the manufacturer was considered as the assessable value. Over the period, the Central Excise Act has undergone drastic changes and deemed manufacture concepts as well as the levy of duty on the basis of MRP has been brought in. As such, at present, even the activity of affixing of MRP or altering of MRP per se amounts to manufacture in terms of Section 2(f)(iii) of the Central Excise Act for the purpose of levy of Central Excise Duty. Similarly, such MRP also forms the basis for determination of assessable value for the purpose of payment of such Central Excise Duty in terms of Section 4A of the Central Excise Act.
read more ...
taxationext ...


“And God said, Let there be light: and there was light”

- 1.3 The Holy Bible

And the light is sighted at the end of the tunnel! The First Discussion Paper on GST has been released by the Empowered Committee on 10.11..2009, which explained the skeleton of the GST for India...

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before parting ... -jk


“chakde taxindia”


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