Leaf No : 18
Month : September
Year : 2011
editor’s desk

Greetings from Team SA!

A concept paper on negative list of services has recently been hosted on the website of Central Board of Excise and Customs for views and public debate. Although it is a fact that not so many has read and debated on the same so far, the concept paper is worth having a discussion for the paradigm shift it is going to bring to mode of taxing services. During client meetings on service tax issues, the comment we more often hear from those vexed with classification of services is ‘ let them (the government) give a list of what is not taxable and not confuse us with lot of services as in Finance Act, 1994’. Now what the negative list is actually going to do?? As far as we understand, it is not as simple as that. On the face of it there is a dilemma right from the appropriate time for launching the negative list (which means sweeping away the present positive list). If this is going to be done before GST, we are to face a new legislation for taxing services which revolves around a negative list. The situation is as good or as bad as how we were made to face MODVAT, then CENVAT, then integration of service and goods CENVAT and finally VAT. Before the creases of negative list is ironed out, we again will have to prepare to welcome the long conceived ‘GST’ which merges both commodity tax and service tax. Our tax administration is not equipped with so much of potential to effective implement a legislation for a year and then shift to a new one.

Going further deep in to the Concept paper, the negative list is important primarily on the point that it proposes to do away with the positive list of services that is presently being followed. There is a new definition for service (or a deceiving definition) which says “ service means anything which does not constitute supply of goods, money or immovable property”....

... read more


 “Deal not unjustly, and ye shall not be dealt with unjustly”

- 002.279: THE HOLY QURAN

  Gods Must be Crazy - Part II


swamy associates  @  PUNE 

"DIWALI"  release !!!

genie in aladdin’s lamp

# CESTAT holds a manufacturer should file appeal against denial of input service credit within 60 days from date of receipt of Order... Click here for copy of the decision.

# CESTAT holds manufacturers are entitled for Cenvat on furnace oil used in manufacture of steam/power supplied to EOU located in same premises... Click here for copy of the decision.

# CESTAT holds excise duty is payable on highest MRP when goods are cleared under different MRP to different regions... Click here for copy of the decision.

# CESTAT holds limitation applicable for demand of interest on supplementary invoices... Click here for copy of the decision.

# CESTAT holds Rule 6 of Cenvat Credit Rules on clearance to SEZ applies only for goods and not services and provision of services to SEZ is governed by relevant notification issued under Finance Act, 1994... Click here for copy of the decision.

# CESTAT holds transaction value to be adopted for clearance of physician samples to buyer who would supply the same free of cost to physicians... Click here for copy of the decision.

# CESTAT holds SSI benefit shall not be denied when brand name is jointly owned by five members of family and is used by all of them... Click here for copy of the decision.

# CESTAT rules that the clearance to SEZ Developers from DTA are to be treated as export both for the period upto 9/2/2006 as well as after 10/2/2006 both for extending export benefits and for levy of duty and the amendment to CCR 2004 by Notification No. 50/2008 –CENT is retrospective and therefore the exception provided under Rule 6(6) of Cenvat Credit Rules, 2004 shall be applicable to supply of exempted goods both to SEZ units and SEZ developers / promoters... Click here for copy of the decision.

before parting ...         - jk

latest news

 CBEC proposes to introduce TDS on service tax!!!

 Apex court holds non-advocates can appear before consumer forum on individual case basis without charging a fee and also without any pre existing relationship with complainant.

 P(R)ICK of the month

# HC of Gujarat rules clearance to 100% EOU be treated as physical exports for entitling refund of unutilised Cenvat credit... Click here for copy of the judgement.

# Larger Bench of Delhi HC rules that Section 65(105)(zzzz) and section 66 of Finance Act, 1994 as amended by the Finance Act, 2010 is intra vires the Constitution of India and declares the retrospective amendments in Finance Act, 2010 as constitutionally valid... Click here for copy of the judgement.

# Larger Bench of CESTAT rules that the value of service in relation to photography would be the gross amount charged including cost of goods and material used and consumed in the course of rendering such service. and the value of other goods and material, if sold separately would be excluded under exemption Notification No.12 /2003 and the term 'sold' appearing there-under has to be interpreted using the definition of 'sale' in the Central Excise Act, 1944 and not as per the meaning of deemed sale under Article 366 ( 29A ) (b) of the Constitution... Click here for copy of the decision.

# Larger bench of CESTAT holds that only when the service recipient has an obligation legal or contractual to pay certain amount to any third party and the said amount is paid by the service provider on behalf of the service recipient, the question of reimbursing the expenses incurred on behalf of the recipient shall arise and what are costs for input services and inputs used in rendering services cannot be treated as reimbursable costs... Click here for copy of the decision.

circulars & notifications


# Revised All Industry Rate drawback applicable from 01.10.2011 notified for all items including items so far covered under DEPB Scheme... Click here for Copy of relevant Notification and Circulars.

# Showcause notices issued by Officers of DRI, DGCEI for period prior to 06.07.2011 validated by amendment to Section 28 of Customs Act,1962... Click for Copy of Circular.

# CBEC clarifies conditions regarding deposit of customs duty in between provisional and final assessment... Click for Copy of Circular.

# E-filing of central excise returns made mandatory... Click for relevant notifications and circular.

# ER-1 with amendments notified... Click for Copy of Notification.



# CBEC clarifies non liability on import of services during period 01-01-05 to 18-04-06... Click for Copy of Circular.

# Authorised person’ substituted for ‘sub broker’ under Finance Act, 1994.... Click for Copy of Circular. 



# Circular issued under Kerala VAT Act regarding e-filing of declaration by registered dealers of goods entering into State ... REF : Circular No. 16/2011 dated 26-08-2011.



# HC of MP holds that the ransom paid for the release of the Director who was kidnapped during his business trip is allowable as a business expenditure... Click here for copy of the judgement.   


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