Leaf No: 61 Month : April Year : 2015

Greetings from Team SA!

 India to go for full Rupee convertibility in few years: RBI Governor.

 UNESCO extends support to Digital India Mission.

 Income Tax Returns - E-filing made mandatory for certain individuals.

 High Level Committee headed by former (CEA) Dr. Ashok Lahiri , Ministry of Finance, has been constituted to interact with trade and industry on tax laws.

 The Central Board of Excise and Customs has been awarded the Prime Minister’s Award for Excellence in Public Administration for the year 2012-13 for CBEC’s Information Technology Consolidation Initiative in the category of ‘Organisation’.

 Merchandise Exports from India Scheme (MEIS) - Schedule of country groups, ITC (HS) code wise list of products with reward rates under Appendix 3B notified.

 Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D notified.

 The procedure for implementation of the Track and Trace system for export of pharmaceutical and drug consignments notified.

 Keeping in abeyance the provisions of para 2.55 and 2.56 of Handbook of Procedures, 2015-20.

 The facility of payment of application fee/ penalty/ any other fee through demand draft is being restored by suitably amending the Appendix 2K of Appendices and Aayaat Niryat Forms, 2015-20.

 Prescribed visiting hours for non officials/members of trade for meetings with officials at DGFT Headquarters

 GST ROUND UP

 The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014 (GST Bill) was moved for consideration in the Lower House on April 24 amid stiff resistance of the Opposition, which wanted the bill in respect of GST to be referred to a Standing Committee.

 Finance Minister Mr Arun Jaitley said the bill would be a “win-win” measure for all, and that the states had nothing to fear. Members of the Congress, led by its president Sonia Gandhi, along with MPs of the TMC, Left and NCP staged a walkout after their plea for referring the Constitution Amendment Bill to the standing committee was not accepted. Though the AIADMK and BJD also opposed its consideration, they did not walk out.

 The Central Government is likely to take up the Constitutional Amendment Bill for the roll-out of GST next week in the Lok Sabha for consideration.

 Even if the Bill is passed in this session same will have to be passed by the Rajya Sabha and one third of States since the bill is a Constitutional Amendment Bill.

 Finance Minister is confident that once the Constitution Amendment Bill is approved, the next stage would be to get the approvals of various States and then get all the subordinate amendments drafted, circulated, accepted by all government and in the course of the year present before Parliament.
 
Chairman of Empowered Comittee hints at Revenue Neutral Rate of 27%.

 Chairman confident of IT backbone to be ready by April 2016.

 Next meeting of the panel would be held in Kerala on May 7 and 8. All Pending issues to be discussed at the meeting, including consideration of reports by various groups on Dual Control, Revenue Neutral Rates, Central GST (CGST), and Place of Supply Rules.

 Tamil Nadu voices protest against GST bill as it would result in huge revenue loss for manufacturing States due to destination principle. Tamil Nadu demands broad consensus on the critical issues should be evolved through the Empowered Committee before the enactment of the Bill is taken up. Tamil Nadu was opposed to the idea of according constitutional status to the GST Council as it would impact the autonomy of States in fiscal matters. It further demands petrol and petroleum products should be kept outside the purview of the GST in order to protect the fiscal capacity of the states. 100 per cent compensation should be provided to the States for the entire period of 5 years and States should be permitted to retain 4 per cent of the CGST (Central GST) portion of IGST (Integrated GST) on all inter-State sales/transfer of both goods and services.

 Telangana Finance Minister Mr. Etela Rajender told the Central Government that it must pay compensation to States for the abolition of Central Sales Tax (CST) before going ahead with the Goods and Services Tax (GST).

 Haryana has asked the Centre to make it mandatory for the Centre to compensate States for losses in the GST regime.

 Regarding clarification on rate of service tax.

 Clarification on rebate of duty on goods cleared from DTA to SEZ.

 Regarding online message exchange between Customs and other regulatory agencies.

 Regarding usage of Digital Signature Certificate in Remote EDI filing (RES) of Customs Documents.

 Regarding facility for suo moto payment of customs duty in case of bona fide default in export obligation under the Advance / EPCG authorizations.

 Clarification regarding 4% SAD refund claim.

 Regarding setting up of ‘Customs Clearance Facilitation Committee’ (CCFC)

 Foreign Trade Policy 2015 - 2020 –Salient changes in Schemes of reward or incentive / advance authorization or DFIA / EPCG or post export EPCG 

 Implementation of Merchandise Export from India Scheme (MEIS) under FTP 2015-2020. EX - CUS - ST.

 Implementation of Service Export from India Scheme (SEIS) under FTP 2015-2020 - EX - CUS - ST.

 Implementation of Post Export EPCG Scheme under FTP 2015-2020.

 Exemption under Status Holder Incentive Scrip scheme (SHIS) - EX - CUS.

 Customs Duty exemption to EPCG Goods.

 Implementation of Post Export EPCG Scheme under FTP 2015-2020.

 Implementation of Advance Authorisation Scheme under FTP 2015-2020.

 Implementation of Duty Free Import Authorisation Scheme under FTP 2015-2020.

 Implementation of Advance Authorisation Scheme for annual requirement under FTP 2015-2020.

 Implementation of Advance Authorisation Scheme for deemed export under FTP 2015-2020.

 Implementation of Advance Authorisation Scheme for export of prohibited goods under FTP 2015-2020.

 Tariff Value of Gold , Silver Increased.

 Drawback - Deemed Imported Goods notification amended.

 Apex court rules that when the main activity of assessee is not a business then any incidental / ancillary transaction would amount to business only if an independent intention to carry on business in such incidental / ancillary transaction is established - M/s COCHIN PORT TRUST VS STATE OF KERALA - 2015 TIOL 86 SC CT LB.

 Accessories of mobile phones are not IT Products - Nokia India Pvt Ltd vs Dy.Commissioner (CT) - IV LTU, Chennai - 2015 79 VST 137 (Mad).

 The Commissioner has not been conferred with the power to defer assessment proceedings but his power is limited only to defer revision proceedings - KMK Event Management Ltd vs CCT (T & AP) - 2015 79 VST 261 (T and AP).

 Purchase of scientific equipment and material for research, purchase of cement for strengthening foundation of plant, not for manufacture of goods for sale - Tax paid thereon is not eligible for set-off under Bombay Sales Tax Rules, 1959 - Gharda Chemicals Ltd V State of Maharashtra & Ors - 2015 79 VST 533 (Bom).

 Whether the freight is part of the turnover and sales tax is leviable on the part of the freight - M/s INDIAN OIL CORPORATION LTD V ASST COMMISSIONER, ANTI EVASION, RAJASTHAN-I, JAIPUR - 2015 TIOL 900 HC RAJ CT.

 Presence of different work orders does not alter the character of a single composite contract so as to tax supplies and service portion separately - Suzlon Infrastructure Ltd vs State of Karnataka - 2015 TIOL 796 HC KAR VAT.

 Claiming excess input tax credit does not result in denial of right to set off output tax against eligible input taxcredit - State of Gujarat vs Cosmos International Ltd - 2015 TIOL 963 HC AHM CT.

 Providing tent, furniture, crockery and electric decorative items to the consumers for the use in marriage functions, conferences etc are liable to VAT under Rajastan VAT Act, 2003 - Addnl. Commr (Legal) vs Taluka Tent Decorators - 2015 TIOL 972 HC RAJ CT.

 Dealer can choose to sell goods at lesser price than purchase price in view of the prospective discount or rebate which may be received - Commercial Tax Officer vs Jyoti Electronics - 2015 TIOL 1016 HC RAJ CT.

 Proviso (ii) to Rule 9 (2) of Customs Valuation Rules, providing for addition of 1% in assessable value is to be read down to apply when actual charges of loading, transportation etc are not ascertainable - Wipro Ltd vs Asst Collector of Customs - 2015 TIOL 79 SC CUS.

 In case of ex-factory sales, transportation charges from place of removal to place of delivery is not includible in assessable value for payment of excise duty - CCE vs Ispat Industries Ltd - 2015 TIOL 40 SC CX.

 When goods are delivered at premises of buyer assessable value to include value of freight, insurance and unloading charges - Commr. of Customs vs Roofit Industries Ltd - 2015 TIOL 87 SC CX.

 HC refuses to stay operation of Rule 5A regarding audit by CAG - Inditrade Derivatives and Commodities Ltd vs UOI - 2015 TIOL 1010 HC KERALA ST.

 Amending Notification 4/2014 ST extending the exemption to services provided by cord blood banks by insertion of Sl No 2A in Notification No 25/2012 is clarificatory and has no retrospective effect - Lifecell International Private Ltd vs UOI - 2015 TIOL 844 HC MAD ST.

 Although service provider can contractually transfer service tax burden on recipient on basis of such agreement revenue cannot be asked to recover dues from third party - Delhi Transport Corporation vs CST - 2015 TIOL 961 HC DEL ST.

 Principle of unjust enrichment is not applicable when supplies are made by assessee , a wing of Government to Tamilnadu Civil Supplies Corporation - Sescot Sheet Metal Works Ltd vs CESTAT - 2015 TIOL 1048 HC MAD CX.

 Time bar as per Section 11B is not applicable for rebate claims under Rule 18 of Central Excise Rules, 2002 - Deputy Commissioner of Central Excise vs Dorcas Market Makers Private Ltd - 2015 TIOL 820 HC MAD CX.

 When there is only a contract of hire and there is no renting of the cab, there is no question of the assessee being assessed in respect of services rendered in connection with rent-a-cab as there is no renting at all. Commissioner of Customs & C.Ex., Meerut-I Vs R.S.Travels - 2015 (38) STR.3 (Uttarakhand).

 When the statute provides for a specific period of filing an appeal and also confers specific powers to condone the delay, the appeal if not filed within the specific period or the extended period, then the assessee cannot invoke Article 226 to get over the statutory dictate - Sony Rebeiro Vs Commr. of Service Tax(Appeals), Cochin - 2015 (38) STR 5 (Ker).

 Issue regarding relevant date for limitation under Clause 6 of Notification 5/06-ST returned by larger bench as there are no two conflicting views for referring matter to larger bench - Commr of Customs vs Ration Pharma India Pvt Ltd - 2015 TIOL 645 CESTAT MUM LB.

 An EOU is supposed to export entire production from the unit and DTA sales is an exception granted to an 100% EOU - Amod Stampings Pvt. Ltd. Vs Commissioner of Customs, Kandla - 2015 (318) ELT 468 (Tri.-Ahmd.)

 Mere common partners and proprietor of other concern, and use of staff etc., would not be sufficient to hold that units are one and the same - CCE., Chennai-IV Vs B.K.Office Needs (P) Ltd - 2015 (318) ELT 288 (Tri.-Chennai).

 Declared transaction value cannot be rejected on the basis of Chartered Engineer's report, which is based on the enquiry conducted behind the assessee's back and which had not even been supplied to the assessee - Marque Enterprises vs Commr of Customs - 2015 TIOL 592 CESTAT DEL.

 Payment of service tax as directed by DGCEI and filing of application for closure of matter under Section 73(3) bars assessee from claiming refund of same amount later on - Nukay vs CCE - 2015 TIOL 607 CESTAT MUM.

 Amount shown as loan to group company in books cannot be treated as advance for provision of service - Reliance Infratel Ltd vs CST - 2015 TIOL 602 CESTAT MUM.

 Duty cannot be demand on EOU for scrapping / writing off inputs imported free of customs duty or procured free of excise duty - Barco Electronic Systems Pvt Ltd vs Commr of Customs - 2015 TIOL 605 CESTAT DEL.

 Cost incurred for transportation and handling of goods at premises of jobworker is liable to be included in assessable value when such costs cannot be disintegrated from contract between manufacturer and jobworker - K.G.Naidu Mills vs CCE - 2015 TIOL 724 CESTAT MAD.

 

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