Leaf No : 35
Month : February
Year : 2013
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Greetings from Team SA!

 Union Budget 13 - 14 presented.

 Amnesty scheme proposed for service tax defaulters.

 Definition of ‘activity’ redefined under “advance ruling” under Central Excise & Customs Ref: Section 23A of CEA & Section 28E of CA.

 Advance ruling extended to eligibility of Cenvat credit on input services – Ref: Section 23C of CEA.

 Advance rulings to be extended to “resident public limited companies” under Central Excise & Service tax.

 Certain offences made cognizable and non – bailable under the Central Excise, Customs & Service Tax - Ref: Section 9 & 9A of CEA, Section 104 & 135 of CA, & Section 89 of the FA.

 Provisions regarding arrest introduced in Service Tax – Ref: Section 90 & 91 of the FA.

 Monetary limit for Single member bench of CESTAT increased from 10 lakhs to 50 lakhs - Section 35D of CEA & Section 129C of CA.

 CESTAT stay orders to be vacated after one year – Ref: Section 35C of CEA & Section 129B of CA.

 Service through speed post or recognised courier recognised as proper service under Central Excise – Ref: Section 37C of CEA.

 No refund / demand if the amount involved is less than Rs 100/- in Customs – Ref: Section 27 & 28 of CA.

 30 days (extendable by another 30 days by Commissioner) of storage period for goods in a warehouse under Section 49 of CA.

 Recovery of money from any other person who holds the money of the defaulter under Central Excise & Customs - Section 11 of CEA & Section 142 of CA amended.

 Provisional attachment of property under Customs – Ref: Section 28BA of CA.

 Nomenclature of CHA changed to Customs Brokers – Ref: Section 146 & 146A of CA.

 Penalty of Rs 10,000/- for failure to take out registration under Service Tax – Ref: Section 77 of the FA.

 Personal penalty upto Rs. 1,00,000/- on persons responsible for operations of company in case of evasion by company in specific cases introduced in Service Tax – Ref: Section 78 A of the FA.

 Recovery under Rule 14 of CCR made applicable for “as such removal” of inputs, removal of capital goods after use and writing-off cases.

 Interest on refunds arising on finalisation of provisional assessment under Rule 7 of Central Excise Rules, 2002.

sa corner

Post-Budget articles

1. Bonanza for Garments.

2. Short - living  Stay Orders.

3. The Anti-Climax.

4. FAQ on VCES.

5. ST on Factory Canteens.



 New ST- 3 notified. Returns for the period from 1st day of July 2012 to the 30th day of September 2012 to be filed before 25.03.2013.

 Instruction regarding amendment of ST 3 form.

 Post export EPCG Duty Credit Scrip Scheme notified.

 Amendment to Notification No. 5/2013-Customs and Notification No. 06/2013.

 Rate of Exchange conversion of foreign exchange with effect from 21.02.2013.

 Amendment in tariff value of gold and silver.

 Amendment in FTP regarding post Export EPCG Scheme.

 Clarification regarding deemed export benefits for supply against ARO.

 Clarification on availability of Deemed Export Benefits for supply of goods to Mega Power Projects.

 Provision for setting up of Private/Public Bonded Warehouses in SEZ/DTA for Diamond , Gems and precious/semi precious stones.

 Waiver of Declaration of Intent for claiming Chapter 3 benefits of Foreign Trade Policy for the period 01.01.11 to 02.06.11.


central excise

 Zero duty route re-introduced to branded readymade garments and made ups.

 Branded ayurvedic medicaments and unani / siddha / homeopathy or bio chemic system brought under MRP based assessment with abatement of 35% from MRP.

 Excise duty on mobile phones priced above 2000/- increased from 1% to 6%.

 Excise duty on chassis of diesel motor vehicles for transport of goods reduced from 14% to 13%.

 Excise duty on SUVs and engine capacity above 1500CC increased from 27% to 30%.

 Exemption to specified parts of hybrid and electric vehicles extended till 31-03-2015.

 Excise duty hiked on cigarettes and products of tariff heading 2402.

 Excise duty on marble slabs and tiles increased from Rs. 30 per sq.m to 60 per sq.m.

 Compounded duty rate on stainless steel pata patti increased.

 Goods manufactured and captively consumed within the factory are exempted under area-based exemption schemes.

 Excise duty on ships, tugs, pusher craft and other vehicles exempted.

circulars notifications


 BCD on cars and motor vehicles with CIF value 40000 USD and with specified engine capacity increased from 75% to 100%

BCD on import of old cars increased from 100% to 125%.

 BCD on new motor cycles with engine capacity of 800 CC or more increased from 60% to 75%.

 BCD on set top box increased from 5% to 10%.

 BCD on raw silk increased from 5 % to 15%.

 BCD on yachts and other vessels increased from 10% to 25%.

 Steam coal and bituminous coal to attract 2% BCD and 2% CVD.

 Reduction in rate of duty on pre-forms of precious and semi-precious stones to 2%.

 BCD on specified machinery for use in leather or footwear industry reduced to 5% from 7.5%.

 BCD on all textile machinery and parts falling under CTH 8444 to 8449 reduced from 7.5% to 5%.

 No export duty on raw sugar, white sugar or refined sugar.

 Flat rolled products of iron or non alloy steel, plated or coated with zinc to be exempt from export duty retrospectively from 01.03.11.

 Exemption to specified parts of hybrid and electric vehicles extended till 31-03-2015.

 Exemption extended to parts and testing equipment for maintenance repair overhauling of aircraft parts.

 Duty free limits to bring jewellery to India by gentleman passenger and lady passenger returning after one year or more of stay abroad or coming back on transfer of residence is increased to Rs. 50000/- and Rs.1,00,000/-respectively.

 service tax

 Negative list amended to include courses run by ITI or ITC affiliated to State Council for Vocational Training also eligible for exemption.

 Definition of “process amounting to manufacture” expanded to include processes undertaken under Medicinal and Toilet Preparations Act, 1955.

 Exemption extended to testing in respect all agricultural activities.

 Exemption by way of auxiliary education services and renting services is available only when provided TO educational institutions and not BY educational institutions.

 Transfer of right to use copyright on cinematographic films available only to films exhibited in cinema hall or theatre.

 Benefit to charities providing services for advancement of “any other object of general public utility” up to Rs 25 Lakh is taken away.

 All air-conditioned restaurants liable to service tax.

 General public to pay service tax for parking.

 Abatement reduced from 75% to 70% for construction of residential properties having carpet area more than 2000 sq. feet or the amount is more than 1 crore.


 Grant of a reward by the Union Government to informers is not a matter of right... PCK Nair vs Union of India – 2013-TIOL-110-SC-CUS.

 Provision for recovery as per circular dated 01.01.2013 cannot be applied to cases where assessee has filed stay application and same has been pending for reasons beyond control of assessee... Larson & Toubro Ltd vs Union of India – 2013-TIOL-99-HC-MUM.

 Refund consequent to reduction in Customs Duty on imposition of final Anti Dumping Duty has to be granted without any re-assessment or appeal... Enterprise International Ltd Vs CCE – 2013-TIOL-101-HC-MAD.

 10% service tax is applicable for Chartered Accountant service in respect of service received on or after 01.04.12... Delhi Chartered Accountants Society vs Union of India - 2013-TIOL-81-HC-DEL-ST.

 Construction of boys and girls hostel is not taxable under Works Contract service... Anand construction Company ltd vs CCE – 2013-TIOL-238-CESTAT-MUM.

 Cenvat Credit eligible on share transfer agent service... City Union Bank ltd vs CCE 2013-TIOL-201-CESTAT-MAD.

 Notification 17/09-ST is an option and not compulsion for assessee... Plus Paper Foodpac Ltd Vs CCE - 2013-TIOL-297-CESTAT-MUM.

 If assessee is eligible for refund under Section 11B of Central Excise Act, the same shall not be denied on ground that assessee has wrongly claimed it under Notification No.09/09-ST… Tata Consultancy Services Ltd vs CCE – 2013-29-STR-393 (Tri-Mum).

 As per Rule 6A of CESTAT Procedural Rules, only one appeal is required to be filed against one order even though the said order may deal with more than one notice... Supermax Personal Care Ltd vs CCE - 2013-TIOL-239-CESTAT-MUM.

 As the goods are delivered directly to customers and the sale price is on FOR basis, GTA Service employed up to the door of the buyer is available as CENVAT Credit… Menon Piston Ltd vs CCE - 2013-TIOL-243-CESTAT-MUM.

 Ambulance service is a Input Service in terms of rule 2(l) of CCR, 2004... Hindustan Zinc Ltd vs CCE - 2013-TIOL-287-CESTAT-DEL.

 Omission of assessee to avail credit on inputs immediately on receipt of same does not amount to lapse of such credit... DM Exporters vs CCE - 2013-TIOL-319-CESTAT-MUM.

 Services of Scientific & Technical Consultancy Service received in SEZ by pharmaceutical industry are considered as provided for the authorized operations and hence eligible for refund of service tax paid on such services... Zydus Tech Ltd vs CST - 2013-TIOL-207-CESTAT-AHM.

 There is no provision under the CCR for utilization of credit of AED towards payment of BED and the only provision is for refund or rebate of accumulated credit... Arviva Industries India Ltd vs CCE - 2013-TIOL-225-CESTAT-MUM.

 In cases of disputes on classification headings of the tariff are to be interpreted in the light of Section notes and Chapter notes... CCE vs Industrial importers - 2013-TIOL-290-CESTAT-DEL.

 Transaction of surrender of REP license not sale, hence premium received is not subject to sales tax… National Mineral Development Corporation vs State of Andhra Pradesh – 2013-58-VST-136 AP.

 Deductee in respect of works contract has no locus standi to file writ challenging vires of provisions of rule providing for deduction of tax... Coastal Projects Ltd vs State of Tripura – 2013-58-VST-166 (Gauhati).

 Conversion of underground water to packaged drinking water does not amount to manufacture... NE Packaged Drinking Water Manufacturers Association vs State of Assam – 2013-58-VST-1 (Guahati).

before parting...

" jail not bail "

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