Leaf No : 30
Month : September
Year : 2012
home | articles | presentations |  archive | contact us
editor’s desk

Greetings from Team SA!

A careful following of the current happenings in our country reveals a dangerous phenomenon of waning tolerance and nationhood, fanning of regionalism and selfishness, which does not at all augur well for national integration and growth. Late in the past, the freedom struggle acted as a unifying factor in our country and regardless of region, caste, religion, etc. people gathered around for a common cause. Perhaps because of the comfort brought in by the freedom, the nationalism is dying day by day. People from particular part of the state being treated as invaders in other parts of the country, mass exodus of north east Indians from other regions of the country, selfishness in dealing with natural resources like water (be it Cauvery or Mullai Periyar) and so many other instances of such regional selfishness is rearing its ugly head very often. “Politics” which is now the most lucrative business on earth, foments such issues emotionally for obvious reasons. If a human being is killed by another human being it is so heinous, notwithstanding the caste, creed, religion or language of either. Be it a Tamil being killed in Sri Lanka, or a Muslim being killed in Jammu & Kashmir or a Mumbaikar killed in bomb blast.

The need of the hour is to sow the seeds of nationalism in the young minds of our country, who will be donning the future mantle so that at least the next generation is properly groomed with national perspective and ideal values of life. The onerous task of preparing the next generation is in the hands of “Teachers” with whom our younger generation spends most of their time, rather than the parents.

In the month in which we celebrated “Teachers Day”, this is a fervent prayer to the Teachers community – Please teach great values to your students and make them responsible citizens of our country so that at least our future generations will live in a better India. Teach them honesty, integrity, unity, selfless sacrifices and brotherhood.




sa corner

 Negative List Articles


Vide notifications 45 & 46/2012 ST Dated 07.08.2012, services provided by non-employee directors to the Companies and security agencies have also been subjected to the levy of service tax. In this connection, so many questions are often raised, which are addressed hereunder…



genie in aladdin’s lamp

# CESTAT holds that the payment for goodwill on transfer of business is not taxable under the category of business auxiliary service...CCE vs. SS Engineers and Contractors - 2012-TIOL-1282-CESTAT-MUM.

# CESTAT holds that an assessee who is a dealer  as well as provider of authorised service station is not entitled to take credit of GTA service availed for transportation of vehicles for sale…ACC vs Sri Shiva Shankar Automobiles - 2012-TIOL-1094-CESTAT-BANG.

# CESTAT holds that an assessee providing renting of immovable property service is eligible to take credit of service tax paid on construction service and other input services used for construction…Navaratna SG Highway Prop Pvt Ltd vs CCE - 2012-TIOL-1245-CESTAT-AHM.

# CESTAT holds that the service tax due under one enactment cannot be discharged by paying tax (VAT) under another enactment…TIL Limited vs CCE - 2012-TIOL-1162-CESTAT-DEL.

# CESTAT grants stay to co-owners in respect of renting service when aggregate value received by each co-owner is below the threshold limit...Dinesh K Patwa vs CST - 2012-TIOL-1205-CESTAT-AHM.

# CESTAT holds that the importer need not pay CVD on MRP, when goods after import are sent to packer who carries out deemed manufacturing activity under Section 2 (f) of CE Act 1944 ...Phil Marketing Services Private Ltd vs CCE - 2012-TIOL-1101-CESTAT-MUM.

# CESTAT holds that the bonafide purchasers of DEPB are not to be faulted for fraudulent license obtained by exporters who sold the same later on in market…Saluja Exim Limited vs CCE 2012-TIOL-1250-CESTAT-DEL.

# CESTAT holds that the expenses on account of ‘interest on loans’ is not to be factored while computing cost of production for captive consumption...Swaraj Foundry Division vs CCE - 2012-TIOL-1240-CESTAT-DEL.

# CESTAT holds that the manufacturer is not eligible for input service credit when the service provider has not paid any service tax to government...Lacto Cosmetics Private Limited vs CCE - 2012-TIOL-1281-CESTAT-AHM.

# CESTAT holds that deemed exports in terms of provisions of EXIM policy, cannot be treated as export for the purpose of refund of Cenvat credit under Rule 5 of Cenvat Credit Rules, 2004...Tricolite Electrical Industries Limited vs CCE - 2012 TIOL 1266 CESTAT DEL.

# CESTAT holds that tribunal has no power to validate and revive an invalid and ineffective order passed by the Committee of Chief Commissioner’s after expiry of the limitation period ...CCE vs Kape Cones 2012-TIOL-1301-CESTAT-DEL.

# CESTAT holds that in absence of any time limit for availing credit, delay of taking credit by one year will not debar eligibility…Central Bank of India vs CCE - 2012-TIOL-1314-CESTAT-MAD.

before parting ...         -  jk

latest news

 Father of Operation Flood - Shri. Verghese Kurien is no more.

 Chief Justice of India S.H.Kapadia retires this month. Justice Altamas Kabir, the senior most judge in the Supreme Court, will be the next CJI.

 Mr. Ramesh Nair is appointed as member of CESTAT.

 Mr. Kaushik Basu Appointed Chief Economist of World Bank.

 Smt. Lipika Majumdar Roy Choudhury, IRS is appointed as Member of CBEC.

 Ms. Sreela Ghosh Quits CBEC as Member. 

 Mr. Najib Shah is appointed as Director General of DRI.

 CBDT invites designers to develop its Mascot and win reward of Rs 1 lakh in cash.

 Government invites comments and suggestions from stakeholders and the general public on General Anti Avoidance Rules (GAAR), which can be mailed to jstpl2@nic.in.

 Rs. 86,000 Crore Indirect Tax Revenue Locked up in Litigation.

 Supreme Court orders pre – deposit of 200 crores to Bharti Airtel in Customs case.

 No Audit of Private Enterprises by AG's Audit rules Calcutta High Court.

 The Supreme Court Middle Income Group Legal Aid Society has decided to provide legal assistance to middle class people for a nominal sum of Rs 20,000/-. To be eligible for such an aid, the aid seeker must not have annual gross salary of Rs 7.5 lakh.

 The Cabinet Committee on Economic Affairs liberalises FDI policy for Companies operating in Broadcasting Sector.

 Govt has notified the revised Policy on Foreign Direct Investment - allowing FDI in Multi-Brand Retail Trading.

 Govt allows 49% FDI in aviation sector.

 Exports for August declines by 9.7%.

 Govt aims at 85000 MW power during 12th Plan.

 Cabinet gives nod to National Policy on Information Technology 2012.

 No ban on release of New LPG Connections: Govt.

 2G Licensing: Questions for Presidential Reference… Click here for the link comprising the questions.


circulars & notifications


# Draft circular issued on utilisation of BED for payment of NCCD... Click here for Copy of the Draft Circular.

# Notification 12/12-CE amended granting exemption to LPG and kerosene supplied by specified OMCs... Click here for Copy of the Notification.

# Notification 12/12-CE amended to bring in clarity on exemption regarding supplies to mega power projects… Click here for Copy of the Notification.

# Notification issued regarding filing of ST 3 return for October 2012 to cover period from April 1st to June 30th 2012… Click here for Copy of the Notification and  the Instruction.

# Service tax liability on vocational courses offered by Government, local authority and other entities clarified... Click here for Copy of the Circular.



# Circular issued regarding compulsory e-payment of customs duty for importers paying customs duty of one lakh rupees or more per Bill of Entry with effect from 17.09.2012... Click here for Copy of the Circular.

# Procedure for disposal of unclaimed/ uncleared cargo under section 48 of the Customs Act, 1962, lying with the custodians… Click here for copy of the Instruction.

# Circular issued detailing the verification mechanism and monitoring of export obligation under duty exemption/ reward Schemes… Click here for Copy of the Circular.

# Clarification issued to the effect that all Central and State Public Sector Undertakings shall be exempt from furnishing Bank Guarantee or other form of security for storing sensitive goods in the duty free shops operated by them... Click here for Copy of the Circular.

# CBEC clarifies on what constitutes Mega Power Project – Amends Notification No.12/12-Cus... Click here for Copy of the Notification.

# Parts and components of aircraft replaced or removed during the course of maintenance, repair or overhaul of the aircraft in a Special Economic Zone and brought to any other place in India exempted – Notification 94/96 – Cus amended... Click here for Copy of the Notification.

# Notification issued treating the goods which are not taken delivery of by foreign buyer as rejected goods for purpose of exemption under Notification No.52/03-Cus... Click here for Copy of the Notification.

# Import of ductile iron pipes - Anti-dumping duty extended upto Sept, 2013.... Click here for Copy of the Notification.


# DGFT clarifies on submission of Registration Certificates of vehicles imported duty-free for tourist purposes... Click here for Copy of the Circular.

# Notification issued regarding amendment in ITC (HS) 2012 Schedule 1 of Import Policy ... Click here for Copy of the Notification.

# Notification issued regarding import of specified items under the India-Sri Lanka Free Trade Agreement (ISFTA) from Srilanka through all EDI ports ... Click here for Copy of the Notification.


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 sa
team sa
s. jaikumar +91 93400 34455
g. natarajan +91 93400 54477
m. karthikeyan +91 93400 66688
a. p. ravi +91 93400 54466
p. dwarakanath +91 93963 31929
k.s. ramesh +91 93420 45442
sindhu mangat +91 93400 11034
ganesh.k.s. iyer +91 95033 66677
chennai     •     coimbatore     •     bengaluru     •     hyderabad     •     pune     •     ahmedabad    •     nagpur