Leaf No : 31
Month : October
Year : 2012
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 Greetings from Team SA!

In the era of E-Commerce anything could be traded online and ‘human milk’ is no exception. Human milk, which is undoubtedly the most nutritious diet for the child , has attained such an invaluable position that it is referred to as ‘liquid gold’.


Although we Indians, are too naïve to the concept of organised selling of human milk , in Western countries breast milkis being distributed in an organised way. There existed milk banks in European countries which used to collect surplus milk from lactating mothers and pasteurise the same and in turn supply to hospitals and parents of sick or premature infants for a nominal price. This continued till such a time when possibility of infecting infants with HIV virus through such milk was much discussed and canvassed. Gradually, the demand surpassed the fear factor and various companies started exploring the prospects on commercial terms. Companies as Prolacta Bioscience (based in US), developed the concept to a full fledged trade by collecting milk from donors and processing the same and marketing on a huge scale.


Slowly online volunteer communities started appearing on social networking sites among which community called ‘Eats On Feets’ attained much popularity. These communities were formed with a view to ‘donate milk’ than ‘sell for a profit’. The popularity of these volunteer communities has given rise to further idea of developing marketing websites. And now there are exclusive websites for discreet classifieds on sale of human milk. The catchy advertisement of a website goes like this :


"Buy, sell or donate breast milk with our discreet classifieds system in a clean, safe and private way. Want to donate breast milk to a fellow mother? Considering selling or donating to a needy baby? Need natural breastmilk for your growing baby? Do you believe breastfeeding is best? Are you over producing and want to list your liquid gold for sale? Looking to make a few extra bucks while clearing out your freezer?"


Also there are some smart (sometimes bizarre) taglines from those posting ads as “Nutritionist with organic diet selling nutrient-rich breast milk”; Healthy , well educated 30 year old with surplus of milk…” and so on and so forth...

 ...read more

sa corner


Today, the most feared judgement, which is sure to keep the taxmen in toes, taxpayer in woes, litigation in rows and the consultant in wows is CCE, Mumbai vs Fiat India Pvt. Ltd & Anr - 2012–TIOL–58–SC- CX.

Here is an attempt to analyse the various implications of this landmark judgement.

... Click here for the Judgement

... Click here for the Facts

... Click here for an Impact Analysis


 swamy associates @ vizag

genie in aladdin’s lamp

# Section 11 of the Central Excise Act, 1944 has no over-riding effect over the SARFAESI Act or for that matter DRT Act in matters of revenue recovery…Industrial Development Bank Of India Ltd Vs Deputy Commissioner (Arrears Recovery Cell), Central Excise And Customs - 2012 TIOL 803 HC AP.

# Homogenisation of cement does not amount to manufacture…L & T Ltd vs. Principal Secy.Dept of Indus & Commerce, Bangalore - 2012 284 ELT 170 Kar.

# Ceiling of 10 lakhs fixed for revenue to appeal against Tribunal orders is applicable retrospectively...CIT vs. Ranka & Ranka - 2012 284 ELT 185 Kar.

# Section 37 B of Central Excise Act, 1944 read with Rule 31 of Central Excise Rules, 2002 does not entitle Department to issue clarification on applications from any person...Inox Air Products vs CCE - 2012-TIOL-856-HC-MAD-CX.

# Consultancy Charges and Product development charges are expenses which are not attributable to the job work and hence cannot be added to the assessable value of job worker…CCE vs Ontop Pharmaceuticals Limited - 2012-TIOL-1360-CESTAT-BANG.

# No duty shall be demanded on clearance to SEZ in cases of failure to furnish proof of receipt when it is proved that there is no diversion of goods for domestic consumption and that goods are properly accounted…Hindustan Dorr Oliver Ltd vs CCE - 2012-TIOL-1395-CESTAT-AHM.

# Department is not at liberty to adjust monies refundable to assessee under one or other pretext in absence of definite crystallised demands…Kisan Sahakari Chinni Mills Ltd vs CCE - 2012 TIOL CESTAT DEL.

# Transportation charges incurred on account of transfer of petroleum products from terminal points to company owned outlets not includible in assessable value for period prior to 14.05.03 …CCE vs BPCL - 2012-TIOL-1481-CESTAT-BANG.

# Transfer of credit under Rule 10 of Cenvat Credit Rules does not stipulate that credit can be transferred only when existing factory is shifted to a new place. Allows transfer of credit from a closed unit to another existing unit…Fabrico India Private Ltd vs CCE - 2012-TIOL-1446-CESTAT-DEL.

# Demurrage and other incidental charges for goods detained in the customs area are required to be paid by the exporter-consignor even if such goods were illegally detained…Lumix Export & Import Vs CC - 2012-TIOL-1350-CESTAT-MAD.

# Relevant date for determination of rate of duty in case of export is date of let-export…CCE, CC & ST, BBSR-I Vs M/s Kashvi Power And Steel P Ltd - 2012 TIOL 1277 CESTAT KOL.

# Taxable value for purpose of import of services to include tax deducted at source...T.V.S. Motor Co. Ltd vs CCE - 2012 28 STR 150 (Tri-Che).

# SEZ unit procuring services from DTA and exporting output service is entitled for refund under Rule 5 even though the input services could have been procured without paying service tax...Global Advertisement Services Pvt Ltd vs CCE - 2012 TIOL 1478 CESTAT MUM.

before parting ...         -  jk



latest news

 Shri Justice Altamas Kabir has assumed charge as the Chief Justice of India.

 Mr. Justice Arijit Pasayat, appointed as Chairman of the Authority for Advance Rulings (Income Tax) with additional charge of the post of Chairman, Authority for Advance Rulings (Customs & Central Excise) and the Chairman of the Central Sales Tax Appellate Authority till 10.05.2014.

 Kelkar Committee submits report outlining roadmap for fiscal consolidation in India.

 Shome panel recommends waiver of interest and penalty on demands raised under retrospective amendments under Income Tax.

 CBEC rectifies error incurred while filing dealer returns in ACES. Modified ER-8 enabling entry of 2% duty available in both online & offline versions.

 Modified version of ST-3 for the period from April to June 2012 uploaded in ACES.

 Cabinet okays constitution of Law Commission.

 Cabinet approves amendments to Companies Bill and also Competition Act.

 Cabinet approves amendments to Forward Contracts Bill  and Pension Bill.

 Cabinet approves Insurance Laws (Amendment) Bill.

 Govt clears proposal for common job interviews for nationalised banks.

 Govt to provide 24 hours electricity to all households in next 5 years: PM

 Centre issues guidelines for implementation of Right of Children to Free Education.

# Format of audit report prescribed under Section 63A of TNVAT Act, 2006 providing for compulsory audit of accounts of registered dealers having turnover of more than one crore notified...Click here for copy of the Notification.

# TNVAT –Advance ruling on rate of tax – IT software, Smart cards, floppy disc, sludge...Click here for copy of the Ruling. 

# When subcontractor is not registered under VAT, main contractor has to pay purchase tax on value of goods incorporated by subcontractor...Concorde Hitech City (P) Ltd vs. State of Karnataka - 2012 20 KTR 546 Kar.

# Accommodation provided by club to its members would attract luxury tax...Trivandrum Club vs. Sales Tax Officer (Luxury Tax) - 2012 20 KTR 447 (ker).

# Composition scheme is not available to contractor when capital goods are purchased from outside the State and is used in works contract although there is no deemed sale of such goods to contractee…S.R.Ravishankar vs Addnl. Commr. Commercial Tax-2012 54 VST 448 (kar).

circulars & notifications


# Circular issued exempting the Central / State Govt undertakings from furnishing security/bank guarantee for storing sensitive goods in private bonded warehouse...Click here for the copy of the Circular.

# Chennai Customs issues circular regarding computerised procedure for processing SAD refund claims...Click here for copy of the Circular.

# Provisions of Section 28AAA of the Customs Act, 1962 relating to recovery of duty in case of instruments obtained by fraud and transferred made applicable to Central Excise Act, 1944....Click here for copy of the Notification.

# Notification 12/12-CE amended with substitution of Sl.Nos. 70, 71,81,265,337,338 and 339...Click here for copy of the Notification.

# New Drawback rates notified....Click here for copy of the Notification.

# Amendments to tariff value of gold and silver for levying customs duty...Click here for copy of the Notification. 

# Cost Accountants also notified as competent to certify documents for the purpose of FTP...Click here for copy of the Notification.

# India grants more concessions to Least Developed Countries on import duty...Click here for copy of the Notification. 

# Notifications regarding antidumping duties on various goods...Click here for copy of the Notifications.

# Notification extends ban on export of edible oil till further orders...Click here for copy of the Notification.

# Last date for filing ST -3 extended till 25-11-2012...Click here for copy of the Order. 

# Draft Circular on transport of passengers by air in context of Place of Provision of Supply Rules...Click here for copy of the Draft.

# Requirement to submit physical copy of RCMC by exporters for any benefit or concession under FTP dispensed with effect from 1.12.2012...Click here for copy of the Clarification.

# DGFT clarifies the validity of duty credit scrips issued up to 26.07.2012 as 24 months...Click here for copy of the Clarification. 

# Revised and simplified softex procedure to be extended to all STPIs in India...Click here for copy of the instruction. 

# RBI issues circular enabling Authorised Dealers to sell foreign exchange to a unit in the DTA for making payment in foreign exchange to a unit in the SEZ for the services rendered by SEZ to a DTA unit...Click here for copy of the Circular. 



# When a contract for transfer of immovable property falls through by reason of default on part of purchaser, amounts already paid to seller can be forfeited only if the payment is made as earnest money deposit and not when paid as advance towards price of property..Satish Batra vs Sudhir Rawal - 2012 TIOL 103 SC MISC.

# Systematic corruption is a human rights’ violation in itself leading to systematic economic crime... State of Maharashtra vs Balakrishna Dattatrua Kumbha - 2012 TIOL 100 SC MISC.

# Details disclosed by a person in his income tax returns are "personal information" which stands exempted from disclosure under the RTI Act, unless involving a larger public interest...Girish Ramchandra Deshpande vs Central Information Commission - 2012 TIOL 92 SC RTI.


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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