Leaf No : 21
Month : December
Year : 2011
editor’s desk

 Greetings from Team SA!!

"An optimist stays up until midnight to see the New Year in.
A pessimist stays up to make sure the Old Year leaves."

- Bill Vaughan

It is time to have a recap at success and challenges of last year and sow seeds of hope and determination for ensuing twelve months.  As for India, the year has been significant with revival of spirit of ‘democracy’ among the so far dormant middle class thanks to neck deep corruption in all spheres and resultant need felt across the society to react. Anna Hazare has become the ‘Superstar’ and the movie is still running successfully. We had our own share of tragedies- another brutal terrorist attack in Mumbai on July 13th  which took 27 innocent lives and injured more than 121. Mother Earth titled a little to shed its weight resulting in  earthquake that shook Sikkim  in September 2011 claiming 80 lives. Also we had to further cope up with saddening news of fire mishap at AMRI hospital, Kolkata which claimed another 90 lives. While Mamata Banerjee  topped the list of newsmakers routing 34 year old long communist rule in West Bengal, Kanimozhi  hit headlines with her not so short term in tihar jail.

On the economic front inflation continued to be the main enemy of economic growth. Indian currency dropped 6.7% in November 2011 marking the worst fall in 16 years.

India had a perfect year in cricket, when Dhoni & Co brought the coveted ‘World Cup’ to India after 28 years. 

2011 mourned the departure of great souls in the Spiritual leader Shri Sathya Sai Baba, legendary vocalist Bhimsen Joshi, former Indian Cricket team Captain Nawab Mansur Ali Khan Pataudi, flamboyant actors Shammi Kapoor and Dev Anand, Gazal king Jagjit Singh, Composer- singer Bhupen Hazarika, famous artist MF Hussian , Sarngi Maestro Sultan Khan etc.

We wish the year be full of blessings, happiness, peace and prosperity for entire world, our nation and each one of us.

Happy New Year!


While signing off 2011, we are tempted to look back and rosary few decisions, which had cast a lasting footprint on one and all. The pearls of wisdom (or otherwise) are...

...  Good, Bad and the Ugly


genie in aladdin’s lamp

# CESTAT holds Physician samples manufactured for third parties and sold on contractual obligation to be dutiable at transaction value whereas the own products manufactured and cleared are to be valued on pro-rata basis... Click here for copy of the decision.

# CESTAT holds demand of duty foregone under a Customs Notification can be demanded under Section 28 (1) of Customs Act, 1962... Click here for copy of the decision.

# CESTAT holds bar of unjust enrichment as inapplicable to duty paid on goods short landed... Click here for copy of the decision.

# CESTAT holds credit of service tax paid cannot be denied on ground that same was taken after a lapse of long time... Click here for copy of the decision.

# CESTAT holds activities in the nature of loading, unloading, packing, unpacking etc provided as intermediary to GTA service provider is taxable as GTA service... Click here for copy of the decision.

# CESTAT holds ISD is not a facility to transfer credit from one unit to another but to enable availment of credit on common services by different units... Click here for copy of the decision.

# Karnataka High Court holds that the credit of service tax paid on expenses for celebrating Karnataka Rajyotsava day is eligible as input credit as common experience indicating if it was not celebrated, there would be trouble both inside and outside factory, and therefore expense is in relation to security of establishment and welfare of employees... Toyota Kirloskar Motor Private Ltd Vs. CCE 2011 24 STR 645 Kar.

# Hon’ble Highcourt of Andhra Pradesh holds Department has power to effect recovery of service tax dues under Section 87 (c) of Finance Act, 1994 irrespective of pendency of appeal before any forum... Click here for copy of the judgement.

# High Court holds Cenvat credit can be utilised for payment of service tax on import of services... Click here for copy of the judgement.

 Karnataka Highcourt holds interest on credit wrongly taken is liable only from date when Cenvat credit is taken or utilised wrongly... Click here for copy of the judgement.

before parting ...         - jk
" 1729 "
latest news

 Lokpal and Lokayuktas Bill, 2011 passed by Loksabha on 27.12.2011 with several amendments.

 Justice Vikramjit Sen was sworn in as Chief Justice of Karnataka High Court on 24.12.2011.

 CBEC issues draft Adjudication Manual.

 Cost Accounting Records Rules notified for various industries.

 Draft of Companies bill 2011 released.

 MoF puts Draft Public Procurement Bill in public domain.

 LS passes Petroleum and Minerals Pipelines Amendment Bill, 2010.

 Govt asks PSEs to set up renewable energy projects.

 CAG wants strict monitoring of export-linked duty-free imports.

 Fertilizer Industry foresees problems if (at all) GST comes!

 Major chunk of income tax arrears 'unrealisable': CAG

 Power generation more than target in current year: Minister

 New Tatkal Scheme to ease passengers' woes: Minister

 TRAI has released pre-consultation paper on 4G .

 House Panel for levy of Cess on diesel cars.

 New Manufacturing Policy to create 100 mn jobs: Govt



# Amount of duty drawback received by assessee not to form part of turnover as it has nothing to do with local sale of goods affected nor has any relevance to price charged by assessee... State of Tamil Nadu vs. Garware Wall Ropes 2011 46 VST 470 MAD.


circulars & notifications


# Special provisions regarding exports to Nepal removed with effect from 01.03.2012. Now procedures and conditions for export to Nepal is same as those for other countries... Click here for copy of the Notification.

# CBEC issues Circular regarding monetary limits for filing appeals by Departments before various forums... Click here for copy of the Circular.

# Customs (Provisional Duty Assessment) Regulations, 2011 notified... Click here for copy of the Notification.

# Shipping Bill (Electronic Declaration) Regulations, 2011 notified... Click here for copy of the Notification.

# Bill of Entry (Electronic Declaration) Regulations, 2011 notified... Click here for copy of the Notification.

# Amendment to Notification 08/11 dated 14.02.2011... Click here for copy of the Notification.

# Exemption from SAD on imports from Nepal... Click here for copy of Notification.

# CVD Exemption to Jute from Bangladesh... Click here for copy of the Notification.

# Fixation of new input – output norm for PTFE... Click here for copy of the Public Notice.

# Ban on export of certain items to Bhutan lifted... Click here for copy of the Notification.

# Anti dumping duty on Hot rolled flat products of stainless steel... Click here for copy of the Notification.         


# CBEC notifies list of documents to be submitted for service tax registration with time limit... Click here for copy of the Circular.

# CBEC further clarifies liability for service tax on arrangements between exhibitors and distributor/sub distributors of films... Click here for copy of the  Circular.

# CBEC issues Circular regarding refund of service tax to exporters through ICES... Click here for copy of the Circular.


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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