Leaf No : 19
Month : October
Year : 2011
editor’s desk

Greetings from Team SA!

Most of us in India will not be aware that India is under its eleventh five year plan [2007-12] and the twelfth five year plan will commence in the year 2012-13. The main reason for this ignorance is lack of initiative from Planning Commission to reach out and create an awareness among all sections of society about five year plans and the benefits that an individual has derived as a member of society out of same . However, to do away the blame, while preparing 12th five year plan, the Planning Commission has diligently come out with an Approach Paper after soliciting suggestions and recommendations from citizens at large. Of course, being a layman I was not aware that my views are invited and even if I had known my views wouldn’t have made a difference as the common criticism on release of approach paper is that there was only a ‘namesake consultation’ and the perception of planning commission or Twelfth plan hasn’t changed much due to the process.

Trivialities apart, the approach paper addresses issues as unemployment, agriculture, education, health, environment, infrastructure energy etc by analysing the existing problems and measures of rectification followed during past five year plans. The approach paper provides that next five years India is for creating employment by developing manufacturing sector, universalising secondary education by 2017, and promoting PPP models in field of agriculture, health, education, infrastructure etc. The environment concerns are addressed by focusing on sustainable development. If the indicators as per approach paper is going to be true, fuel prices especially that of diesel and LPG is going to be on rise with holy object of aligning fuel prices in India with global prices. The approach paper provides for an equitable development by having a proper land acquisition law in place (????). There are references to nuances of implementation and governance and sincere efforts to be devised for combating corruption. And above all there is specific object of providing a conducive environment for developing a dynamic private sector...

... read more


 “Tax refunds are receding mirages in the expanding desert of impossibilities”

 - Indian Tax Testament

...Gods Must Be Crazy - III


 swamy associates @ pune     

 # 1, "B" Building, Agarwal "Pride"

1308, Kasbapeth, Pune - 411011. 
 - 020 - 24571244                              - 95033 66677

genie in aladdin’s lamp

# “Bail – No Jail” - SC holds all offences under Customs and Central Excise Acts as non-cognizable and bailable... Click here for Copy of Judgment.

# Apex Court holds that the department shall pay interest under Section 11BB on expiry of three months from date of receipt of application for refund under Section 11B (1) of Central Excise Act, 1944... Click here for Copy of Judgment.

# SC holds that the waste and scrap generated during repairing activity are not excisable as there is no process of manufacture involved... Click here for Copy of Judgment.

# SC holds Section 11D of Central Excise Act not applicable to a dealer who is not a manufacturer... Click here for Copy of Judgment.

# SC holds that the sales of immovable property through General Power of Attorney (GPA) as not amounting to transfer of title and not conveying effective title to buyer... Click here for copy of the judgement.

# SC directs pre - deposit of 50% of service tax in appeal on renting of immovable property... Click here for Copy of Interim Order.

Madras High Court holds export of inputs as such under bond or rebate is similar as export of final products and assessee is entitled to utilise Cenvat credit... Ford India Private Limited vs. Asst. Commr 2011 272 ELT 353 (Mad.)

# Karnataka High Court allows credit of service tax paid on canteen services, Rent a Cab service, and medical insurance service... Click here for copy of the judgment.

# CESTAT holds the larger bench decision in Vandana Global on non eligibility of credit on inputs as cement and steel used for capital goods is not binding in view of the Supreme Court judgment... Click here for copy of the decision.

# CESTAT holds once duty payment on final product is accepted by the Department, Cenvat Credit shall not be denied even if the activity does not amount to manufacture... Click here for copy of the decision.

# CESTAT holds when final products are manufactured by jobworker and sold as such by principal under SSI , duty on manufactured goods to be demanded from jobworker... Click here for copy of the decision.

# CESTAT holds that the date of ‘Let Export Order’ as relevant date for determining export duty… Click here for copy of the decision.

before parting ...      - jk

latest news

 Mr. S.K.Goel likely to succeed Mr. Dutt Majumdar as Chairman of CBEC, who retires on 31.10.2011.

 Mr. Nandan Nilekani to head the Special Purpose Vehicle for implementing IT infrastructure needed for roll out GST.  

 Justice Markandey Katju, retired judge of the Supreme Court of India is appointed as the Chairman of the Press Council of India.

 RBI deregulates savings bank deposit interest rate with immediate effect.

 Government to formulate new policy for Senior citizens.

 Textile Ministry to design restructuring programme for the bleeding Textile Industry. 

 New Telecom Policy envisions broadband - on - demand.

 FIEO hails National Manufacturing Policy. 

 The Comptroller and Auditor General of India (CAG) has been appointed as the external auditor of two major UN organizations - the International Atomic Energy Agency (IAEA), Vienna and World Intellectual Property Organization (WIPO), Geneva.

 CBDT issues Draft Tax Accounting Standard for construction Contracts and Government Grants... Click here for Copy of Draft.



# Annual Supplement to Foreign Trade Policy released.

# Digital signatures enabled in DGFT.

# 'Niryat Bandhu' - A scheme for International Business Mentoring introduced.

#  Online Exchange of DFIA between DGFT and Customs introduced.

#  Additional Duty Credit Scrips @ 1 percent alloed for export of products to notified countries made with effect from 01.04.2011 and to Focus Products made with effect from 01.10.2011 till 31.03.2012... Click here for copy of the Notification.

# Clubbing of Advance Autorisations permitted... Click here for copy of the Public Notice.

# Firozabad, Bhubaneswar and Agarthala are added as the new towns of Export Excellence and new products are added to the list of items for Focus Product Scheme... Click here for copy of the Public Notice.

# Foreign Development and Regulation Act, 1992 amended to include services and technology transfer under ‘import’ and ‘export’... Click here for copy of amendment.

circulars & notifications


# Circular issued regarding procedures for E-filing of excise and service tax returns... Click here for Circular.

# Last date for e – filing extended to… Click here for copy of the Circular.

# Circular issued on early disposal of drawback claims... Click here for Circular.

# Circular issued regarding recredit of duty under DEPB on reexport of goods imported... Click here for Circular.

# Exemption to Research and Development cess from gross amount received under Consulting Engineer and Intellectual property service amended inserting conditions for availing exemption... Click here for relevant Notifications.

# Exemption from service tax to subcontractors executing works contract in relation to construction of roads, airport, railway, tunnel etc... Click here for Circular.

# Service tax Rules, 1994 amended specifically providing for aligning ST 3 with Point of Taxation Rules, 2011... Click here for Circular.

# Minutes on guidelines regarding deemed manufacture of auto components as per meeting of jurisdictional commissioners... Click here for Minutes.

# FAQ issued on simplification of procedure for assessees paying 1% excise duty ..Instruction F.No. 332/12/2011-TRU dated 04.09.2011 (Copy available in 2011 272 ELT T29]



# TamilNadu Value Added Tax, 2006 amended incorporating provision for setting up an advance ruling authority for issuing clarifications on applications issued by registered dealers on rate of tax and other matters.

# Samadhan scheme reintroduced by TamilNadu government for settlement of sales tax arrears up to assessment year 2006-07.

# VAT is payable on live telecasting rights of events under Delhi Value Added Tax Act, 2004... Click here for copy of the Circular.

# Karnataka High Court holds transportation charges collected after transfer of title of goods to party not to form part of taxable turnover of selling dealer ...Apco Concrete Blocks and Allied Products 2011 44 VST 312 Kar.


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
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