Leaf No:    010
Month:   January
Year:   2011
latest news

#  Hon’ble Supreme Court has vacated stay granted by Delhi High Court on renting of immovable property service. The case scheduled for hearing on 20-01-2010 

#  Government to frame rules for digital data protection under Information Technology Act, 2000

#  Right to Information (Regulation of Fee and Cost) Rules, 2005 and the Central Information Commission (Appeal Procedure) Rules, 2005 has been superceded and reintroduced as Right to Information Rules, 2010. The new Rules would include the provisions for payment of fees through electronic mode (Rule 6) as well as appearance through video conferencing (Rule 14) ...Click here for RTI Rules, 2010  http://www.taxindiaonline.com/RC2/pdfdocs/wnew/rti_rules.pdf

 #  NALSAR, Hyderabad has proposed a regular full-time course for paralegals to widen the scope of legal education to include non-LLB professionals for imparting functions of mediators, conciliators, negotiators and counsellors 

#  DEPB scheme extended up to 30-06-2011 

circulars & notifications

Central Excise

Packaged / Canned software brougt under MRP based assesment under Section 4A with a 15% abatement. With the Computers also under Section 4A with 20% abatement, there couldbe a conflict on valuation of  embedded software... Click here for Notification No. 30/2010-CX.,(N.T.), Dated: December 21, 2010


Exemption from customs duty of above 5% and whole of all items of machinery, including prime movers, instruments, apparatus and appliances, control gear and transmission equipment and auxiliary equipment (including those required for testing and quality control) and components, required for the initial setting up of a solar power generation project or facility, when imported into India ... Click here for Notification No. 1/2011 dated 06-01-2011

Service Tax

Board clarifes that fumigation of export cargo outside the purview of service tax under Cleaning service ....Click here for Circular.

Exemption granted to transport of goods by rail extended up to April 2011 ... Click here for Notification No. 57/2010-ST dated 21-12-2010

Exemption on management, maintenance or repair extended to bridges, tunnels, dams, airports, railways and transport terminals. With this, both construction as well as management, maintenance and repair of roads, bridges, tunnels, dams, airports, railways and transport terminals are exempted from service tax... Click here for Notification No. 54/2010-ST dated 21-12-2010.

Providing right to use packaged software for commercial exploitation including right to reproduce, distribute etc has been exempted from levy of service tax under Section 65 (105) (zzzze) once appropriate excise duty or customs duty has been paid by the manufacturer-service provider... Click here for Notification No. 53/2010-ST dated 21-12-2010


Public notice issued on procedure for tracking and tracing of export consignments and pharmaceuticals...  Click here for the Public notice

genie in aladdin’s lamp

Parle Bisleri (P) Ltd vs CCE, AHD (2010-TIOL-115-SC-CX) 

Reiterating that , when the notions of beneficial ownership and interdependency come into the picture, piercing the corporate veil is no longer res integra, it has once again been affirmed by Hon’ble Supremecourt that where the companies are indeed inter-dependent and possibly even related through financial control and management, the value of clearances has to be clubbed together in the interests of justice.. Click here for the judgement

CCE vs M/s Dishman Pharmaceuticals Chemicals Ltd (2010-TIOL-1639-CESTAT-AHM): Refund to manufacturer-exporter under Notification No.41/07-ST shall not be denied for procedural violations on part of service providers...Click here for the CESTAT Order.
M/s G.S.Promoters vs UOI & Another (2010-TIOL-813-HC-P&H-ST):                             Division bench of Punjab and Haryana Highcourt has upheld validity of explanation on deemed service inserted under construction service with effect from 2010 .... Click here for Judgment.
M/s Godrej Hershey Ltd vs. CCE  (2011-TIOL-65-CESTAT-DEL): Hon’ble CESTAT of Delhi has held in an order of far reaching consequence that any omission or failure to comply with the obligation relating to payment of duty in the manner prescribed and within the period specified under Rule 8(1) of the said Rules would amount to default in payment of duty. It may be a short payment of duty or it may be total failure to pay the duty...Click here for the CESTAT Order

 M/s Jetlite ( India) Limited vs CCE (2010-TIOL-1715-CESTAT-DEL): Displaying logo of Sahara which sells houses, is not BAS - Adjudicating Authority cannot travel beyond SCN - Failure of the department to prove the charge can neither shift the burden, nor can give any advantage to the department - It is settled law that the charge created by introducing a new entry and consequently taxability thereupon, the question of imposing the duty retrospectively does not arise. The statutory provision did not provide brand promotion to be a taxable service during the relevant period... Click here for the CESTAT Order

Ravishankar Jaiswal vs. Jaipur Development Authority - 2010 36 VST 500 (MP):     Service provider cannot shift liability of paying service tax to service recipient on ground that the recipient has agreed to pay the amount.
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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editor’s desk -sindhu
Dear Readers,

New Year greetings from Team SA.

Well, it is January...time for a fresh beginning. Let us start with what is ‘in’ and rocking on cyber space. If you are an internet freak, you will know that you have to update yourself every minute on ‘what is new’ in world of netiquette. Here comes few snippets...

The complete transformation that the English language has undergone during the past three years is evident from the fact that it is no longer a ‘ language’ but is slanguage (slang language). Since I am a compulsory googler I stumble upon lot of these terms and understand that I can accept or reject it but can never overlook it , because it is so rampant and is ‘on the go’ always!!! Neologism at its zenith cries that much abused expression ‘cool’ is replaced by ‘tight’; ‘vehicle’ by ‘whip’; ‘weird is ‘janky’, ‘goodlooking’ is ‘banging’; old ‘super’ is new ‘uber’; ‘chilling out’ is ‘marinating’....the list goes on.

read more ...
sa corner

Ram aur Shyam         - p.dwarakanath

Remember, thespian Dilip Kumar enacting ‘Ram aur Shyam’ in the yester-years blockbuster ‘Ram Aur Shyam’ , where Ram will have a hearty breakfast in a restaurant and a bewildered Shyam made to pay for it.

Well, I am not going to tell you about the movie, but, my endeavour here is to bring such ‘Ram’ and such ‘Shyam’ in our own tax law backyard, viz., Chapter V of Finance Act, 1994, as amended. Have a look at the Ram and Shyam of Service Tax...

read more ...
taxationext ...


“An idea can be flawless but its execution will always be full of mistakes”

- Brendt Scowcraft

“Flawless GST!” (That is how the Task Force calls its proposals in its Report)! Whereas in Part I, we saw the parts of the Report of the Task Force singing along symphony with the proposals contained in the First Draft Paper (FDP) released by the Empowered Committee on GST. In this Part let us see a crucial aspect of the GST proposal, where there is a sharp divide between the Empowered Committee and the Task force!

Firstly, regarding the rates for GST, the report, in sharp contrast to the recommendation in the FDP, whereby, multiple layer rates are prescribed, has suggested that only a single positive rate @ 5% for CGST as well as a single positive rate of 7% for SGST for all the goods and services. Secondly, the report also negatives any threshold exemption to the manufactures, over and above the one prescribed above, like the present existing exemption of Rs 1.5 crores and as suggested in the FDP. Last but not the least, the report dismisses the most novel method of Integrated GST (IGST) model proposed by the FDP for the all - important Inter -State transactions ...

read more ... 
before parting ... -jk


19th jan ...



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