Leaf No: 59

Month : February

Year : 2015

Greetings from Team SA!

FM Mr. Arun Jaitley presents the first full fledged budget of the BJP Government.

PM hails the budget as "5P" budget - Progressive, Positive, Practical, Pragmatic and Prudent.

Excise duty hiked to 12.5%.

Service tax proposed to be hiked to 14%.

No Education Cess in Excise and Service tax.

Swachh Bharat Cess proposed.

BUDGET DOCUMENTS

BUDGET ARTICLES

1. Bye Bye to Education (CESSES).

4. Hit on construction sector.

5. "And", "or" game ended. For good?

6. Calculation of Customs CESS - The mess.

Notification No. 2/2003-M&TP dated 01.03.2003 amended so as to increase the applicable rate of excise duty from 12% to 12.5%.

Effective rate of Clean Energy Cess on goods specified in the Tenth schedule to the Finance Act, 2010 notified.

Delay in Utilization of Advance Received for Exports.

Foreign Exchange Management Act, 1999 – Import of Goods into India.

Guidelines on Import of Gold by Nominated Banks / Agencies.

TARIFF

NON - TARIFF

2. CENTRAL EXCISE

Instructions regarding adjudication of Central Excise and Service Tax Cases booked by DGCEI.

Central Excise and Service Tax Audit norms to be followed by the Audit Commissionerates.

Recovery of arrears in installments and amendment of Garnishee Notice.

Simplification of Registration Procedures in Central Excise and Service Tax.

Withdrawal of prosecution filed in a court.

Clarification regarding place of removal.

Clarification regarding amendments to certain All Industry Rates of Duty Drawback.

Clarification regarding the list of documents required for KYC verification for Courier companies.

In hire purchase transactions sales tax is payable on sale price including value attributable towards option money,insurance charges etc - Tata Engineering & Locomotive Co Ltd vs State of Maharashtra - 2015 TIOL 256 HC MUM CT.

Commitment charges paid to seller for compensating delay in taking delivery is part of consideration for sale and is subject to sales tax - Raj Pvt Ltd vs State of Tamilnadu - 2015 TIOL 398 HC MAD CT.

Cubicle or work station is not furniture and hence facility of input credit cannot be denied on same - State of Karnataka vs Infosys Technologies Ltd - 2015 TIOL 395 HC KAR VAT.

Levy of tax on Composite Contracts cannot be any basis of works contract if such contract is divisible - State of Karnataka V Transglobal Power Limited - 2015 77 VST 509 (Kar).

Commissioner not entitled to exercise power of revision for cancellation of registration - Vishnubhai A Patel V State of Gujrat and Anr - 2015 77 VST 515 (Guj).

Requirement for pre-deposit while filing appeal as per amendment to Section 35F is prima facie not applicable where proceedings vide show cause notice has commenced prior to date of amendmnent - K.Ramamohana Rao & Co vs UOI - 2015 TIOL 511 HC AP CX.

Portion of turnover of restaurant on which turnover tax was not paid for the reason that the value represents service, is liable for turnover tax consequent to Judgment of Highcourt that no service tax is applicable for supply of food in restaurant - Rotana Inns Pvt Ltd vs UOI - 2015 TIOL 487 HC KERALA ST.

Export Inspection Agency cannot withhold grant of inspection certificates on account of an alleged violation in respect of past export consignments - M.B.Exim Pvt. Ltd. Vs Export Inspection Agency, M.C & I - 2015 (316) ELT.3 (Del.)

Stay order by CESTAT is a binding precedent on Coordinate Benches of CESTAT in similar matter - Bombay Flying Club Vs Commissioner - 2015 (37) STR J 129 (Mum.)

The transaction of only procurement of orders on behalf of overseas manufacturers though culminates in supplies to Indian Company, cannot be considered as services provided in India - ATE Enterprises Vs CST, Mumbai - 2015 TIOL 252 CESTAT MUM.

Two different imports of ‘old’ and ‘used’ items can never be identical in as much as the value of the same would depend upon the number of factors including the usage years as also the condition of the goods - M.R.Tractor &Trolley Vs CC, Jodhpur 2015 (316) ELT 102 (Tri.-Del.)

Construction of residential houses for personal use of government provided by subcontractor is not taxable - R B ChyRuchi Ram Khattar & Sons vs CST - 2015 TIOL 388 CESTAT DEL.

Handling charges collected by Authorised service stations are included for payment of vat and hence not chargeable to service tax - Automotive Manufacturers Private Ltd vs CCE - 2015 TIOL 390 CESTAT MUM.

DTA unit not entitled to take service tax credit pertaining to the value of services rendered by the overseas commission agent to the SEZ unit - Carborundum Universal Ltd vs CCE - 2015 TIOL 355 CESTAT MAD.

Waste and scrap are not manufactured goods and hence no need for reversal of any credit taken on duty paid inputs in case of clearance of waste and scrap and/or, there non-return from the job worker's premises - Mukund Ltd vs CCE - 2015 TIOL 353 CESTAT MUM.