Leaf No:    006
Month:   September
Year:   2010
latest news


#  DTC Bill deferred to 2011. May be along with GST. 

#  Superintendent of Central Excise given powers of adjudicate Service Tax cases up to Rs. 1 Lakh (Excluding cases relating to taxability/valuation/extended period of limitation). Already similar power to adjudicate in respect of Central Excise Matters had been reported in our June News Letter.

#  Govt further extends validity of DEPB Scheme and Zero Duty EPCG Scheme; offers 2% bonus on Focus Product Scheme.


#  Govt notifies new rules for better compensation to pax for cancelled and delayed flights.

#  Govt grants service tax exemption to Outdoor Catering for Mid-Day Meal Scheme, Vide NOTIFICATION NO 47/2010-ST, Dated: September 3, 2010 – Our Late Dr. M.G.R would be smiling. 
circulars & notifications

Central Excise

The Board had issued a heartening direction to its field formations directing them to adhere to the time limits in sanctioning of refunds of Unutilized Credit accumulated on account of Exports. The Board has also clarified that the “Mate receipt” shall not be insisted for sanctioning the refunds in case that Transference copy has been received within 30 days. Though the Board has not made this beneficial Circular public, this Newsletter with the help of www.taxindiaonline.com makes it public.  Click here for the copy of the Circular. 


Service Tax

In a controversial Circular, the Board clarifies that the Ongoing Contracts (Contracts which run from a period prior to 01.06.2007 and continue) would be taxed under “Works Contracts” but no portion of that contract would be eligible for composition scheme.Click here for the copy of the Circular 



Regarding the valuation of goods manufactured and cleared by EOU in DTA, the Board has withdrawn its earlier Circular No. 268/85-CX .8 dated 29.09.1994, wherein it had been earlier clarified that the Valuation shall be in accordance with Rule 8 of the Customs Valuation Rules (Determination of Price of Imported Goods 1988, as it existed then. As per the present clarification, the Valuation shall be in accordance with Rule 7 of the Customs Valuation Rules (Determination of Price of Imported Goods) 2007. Click here for the copy of the Circular.

genie in aladdin’s lamp

A.P.Ravi vs UOI & Others - 2010-TIOL-604-HC-MAD-ST.

In an all important development having all pan-India implications, the Hon’ble HC of Madras has granted an interim relief to the petitioner on a Writ Petition filed challenging the controversial explanations added to Section 65 (105) (zzzh) of the Finance Act, 1994, in this Budget, whereby Service Tax has been proposed to be imposed on the Sale Value of the flats ... Click here for the HC interim Stay Order


Infotech Software Dealers Association Vs UOI & Others- 2010-TIOL-620-HC-MAD-ST.

Coffee / Toffee battle to continue. Madras HC holds, though software is emphatically goods, the nature of the transaction in each case has to be seen, whether the transaction is a pure sale or service so as to attract VAT or SErvice Tax as the case may be. Phrases like "dominant nature" "intention of parties" etc. would haunt the stakeholders, in the battle where both the State Governments and Central Government would target the software sector with their respective levies...  Click here for the HC Judgement.


Maruti Suzuki Limited Vs CCE, Delhi III - CCE 2010-TIOL-1127-DEL-LB.

In a landmark decision by the Larger Bench of the CESTAT, it has been ruled that the Pre Delivery Inspection (PDI) and after sale service charges collected from the buyers by the dealers are to be included in the assessable value... Click here for the LB Order.


M/s.Spandral, Hyderabad & Others Vs CCE, Hyderabad/Kochi - 2010-TIOL-1113-CESTAT-BANG.

Once a new entry is introduced with effect from a specific date without disturbing already existing entries, the new entry cannot be regarded as covered by the existing/previous entry... Click here for the CESTAT Order 


CCE, Salem Vs M/s.Havukal Tea & Produce Co (P) Limited -2010-TIOL-612-HC-MAD-CX.

In a well reasoned judgement, the Hon’ble HC of Madras had held that one cannot suppress a fact which was never within his knowledge... Click here for the HC Judgement

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.



Should you have any feedback or require any clarifications, please do write to

contact us


editor’s desk - yoga

Dear Readers,

Greetings from Team SA.

Last month was a heart break for one and all, when the GST as well as DTC, the two reforms in Indian Tax Administration has been shelved to 2012. Though it is highly unfortunate, i feel, in a way it is better for all concerned to get ready. The DTC as well as GST are not just two great reforms but two great revolutions, for which, all of us have to be adequately equipped. I am sure this deference of implementation is a blessing in disguise, which would enable all of us for a seamless transition.

taxationext ...

GST - The Necessity 

To me, GST is the soul of the expected Indian Tax Revolution! ETA of GST was April 2010! But the flight is delayed and now the ETA is  April 2012 or even later! But I am sure, being the dream of an aspiring nation to become the 2020 superstar, GST, the Messiah, shall certainly arrive! This sequel on GST is written in parts, trying to document the genesis and its evolution!
read more ...
gst corner


The Union Government is making ‘an honest endeavour,' as stated by the Finance Minister, Mr. Pranab Mukherjee, to introduce the goods and services tax (GST) all over the country by April, 2011, according to Mr S. Dutt Majumder, Member of the Central Board of Excise and Customs.Mr Majumder, one of the key policy-makers involved in the introduction of GST. He was speaking at a seminar on tax matters, jointly organised by Tax India Online, at Vizag. He also said that as stated by our FM Mr. Pranab Mukherjee, in his Budget speech that the direct taxes code would be introduced from April, 2011, and the Government would make ‘an honest endeavour to introduce GST from the same date.' He explained why the Finance Minister was so cautious about the introduction of GST, as there were still a number of issues to be sorted out between the Centre and the States. However, all were agreed that the introduction of GST would be beneficial to all. "Some states have expressed certain apprehensions about it and we are trying to sort out the issues,” he said.

The government is likely to appoint State Bank of India as the clearing bank for the proposed Goods and Services Tax (GST) and National Securities and Depositories Ltd (NSDL) as the clearing corporation for implementing the infrastructure required for inter-state tax administration.A special purpose vehicle (SPV) would be set up for information technology infrastructure in GST. Called ‘GST N’ (Network), it would have the Union government, state governments and technology partner NSDL as stakeholders. Sources say the government is likely to make these appointments official to prepare ground for quicker implementation of GST.

The BJP-ruled states and a few other states have been opposing the revised draft of the Constitution Amendment Bill on GST and sought one month more to build their views more firmly. Mukherjee had said a third revised draft would be prepared to sort out states' concerns. The state finance ministers are likely to meet in early September to sort out the issue.

before parting ... -jk


mens rea


  chennai coimbatore bengaluru hyderabad ahmedabad