Leaf No : 22
Month : January
Year : 2012
editor’s desk

Greetings from Team SA!

Freedom of Press and media is a topic that flashes on and off, every time a controversy crops up. The recent tie up between Reliance Industries Limited (RIL) and Network 18 has raised many eyebrows on the intervention of business conglomerates in media business. Network 18 owns channels including CNN IBN, IBN 7, TV 18 etc. The deal publicised as RIL’s contribution to bail out Network 18 from its debt trap involves investment of over 3000 Crores by RIL in return for preferential access to contents of channels owned by Network 18. This would mean that RIL shall have control and access over 17 news channels across the country.

It is for sure that the deal is not expected to bring any dividends to RIL in near future as the general trend is that almost all news channels invariably declared loss in their annual accounts. Therefore the intention is to be gauged to gain other dividends a media ownership will bring. Of course, with such a deal the investor company will be able to impact the media expression of political views, policy and public opinion. There is also criticism that the trend would promote practise of a small group manipulating opinions to suit its interest. This will then hit the very concept of media democracy.

There are regulations in many countries to check this kind of vertical integration between content providers and carriers. Even TRAI regulations 2009 restricted such vertical integration in the interest of independence of media. It is necessary that before promoting the trend, India should have a clear cut policy and regulation as to what extent non media companies can invest and interfere in media companies.


Notification 6/2005 provides for value based exemption from payment of service tax, to small service providers. The exemption is available to those service providers, whose turn over (value of taxable services) is less than Rs. 10 lakhs during the preceding financial year. The exemption is available upto a turnover of Rs.10 lakhs per annum.

Various practical situations which may emerge in claiming the benefit of this exemption are discussed hereunder:

...Click for the article.


Union Budget 2012-13 deferred to mid - March!

genie in aladdin’s lamp

# Apex Court holds that the inputs used in testing of customised machines as eligible for Cenvat credit... Click here for copy of the judgement.

# Delhi HC holds pre fabricated structural components manufactured at specified site for Delhi Metro Project eligible for exemption from payment of excise duty under Notification 01/11-CE dated 17.02.2011... Click here for copy of the judgement.

# Highcourt of Himachal Pradesh directs CESTAT to be consistent in passing interlocutory orders... Click here for copy of the judgement.

# Highcourt of Karnataka holds there is no requirement to treat provisional assessment of group of goods separately. Excess payment in respect of one item can be set off against short payment in respect of another and there is no need to pay interest on short payment... Click here for copy of the judgement.

# Bombay Highcourt dismisses the writ petition filed by builders challenging Explanation to Construction service under Section 65 (105) (zzq) and (zzh) of Finance Act, 1994... Click here for copy of the judgement.

# Karnataka Highcourt holds refund of tax paid on components of service not within purview of Finance Act, 1994 also subject to provisions of Section 11B... Click here for copy of the judgement.

# Karnataka High court holds benefit of Notification 12/03-ST available to sale of food by caterer... Click here for copy of the judgement.

# CESTAT holds Clearing and Forwarding operations are rendered when both activities are connected and undertaken simultaneously... Click here for copy of the decision.

# CESTAT holds rate of tax applicable as on date of receipt of consideration to be appropriate rate...Click here for copy of the decision.

# CESTAT holds assessable value of transactions between related parties not to be rejected if same is as per transfer pricing policy agreed to by IT Department... Click here for copy of the decision.

# CESTAT holds CA certificate to be accepted as sufficient proof of unjust enrichment in case of refund of Special Additional Duty... Click here for copy of the decision.

# CESTAT holds Rule 8 or 10 A Excise valuation not applicable when jobworker clears the goods to Principal who captively consumes the same in manufacture... Click here for copy of the decision.

before parting ...         - jk
latest news

 Vodafone wins a huge 11000 crore Income Tax case at Supreme Court...Click here for copy of the Judgement.

 India's per capita income jumps to Rs 53331 but Gross Saving goes down.

 Indian Railways launch tax-free bonds.

 Rail pax to book e-ticktets over mobile phones.

 Train journey against reserved ticket: Carry at least one of nine I-Cards from Feb 15: Indian Railways .

 TRAI exempts machine to machine and person to machine from 200 sms limit.

 I&B Ministry publishes Citizen Charter in thier website.

 Cabinet reviews the implementation of the Rashtriya Swasthya Bima Yojana, the health insurance scheme for families living below the poverty line.


 The Empowered Committee of State's Finance Ministers on GST, at a meeting held in Bhopal on 09-01-2011 agreed in principle to the concept of services tax based on the 'negative list' and suggested that the Centre could prepare such a list, which would help, widen the tax base.

 Draft Public notice regarding sale of goods on Highseas notified inviting comments.

 Instructions issued regarding handling of cases relating to SEZ... Click here for copy of the Instruction.


# SC holds exemption to be claimed by party at appropriate time and there is no facility to extend availment of same as per convenience of party... Click here for copy of the judgement.

# Essar loses a huge sales tax case - SC hols that an exemption is a stand-alone process and there is no equity - Either an industry claiming exemption comes within it or it does not...Click here for copy of the judgement.

# AP HC holds hiring of transit mixers amounts to transfer of right to use goods and is subject to sales tax... Click here for copy of the judgement.

# VAT on leasing of cabs in State of Andhra Pradesh to be applicable prospectively from 08.11.11... Click here for copy of the Memo.


circulars & notifications


# Circular clarifies cost accountants/statutory auditors authorised to issue certificate regarding unjust enrichment... Click here for copy of the Circular.

# Extension of time for utilising SAD refund credited to DEPB scrip... Click here for copy of the Circular.

# No deemed export benefits if imported goods are supplied directly to project authorities... Click here for copy of the Circular.

# Rule 12 of Central Excise Rules, amended deleting proviso regarding quarterly filing of returns by manufacturers falling under Chapter 50 to 62 of CETA,1985 but to file  ER -3 returns for the period October – December 2011... Click here for copy of the Notifications.

# Goods falling under Chapter 48 and 56 omitted from MRP abatement; All goods falling under Chapter 96 given abatement of 35%... Click here for copy of the Notification.

# Amendment to various tariff notifications under Central Excise... Click here for copy of the relevant Notifications.

# Notification issued amending Rules on Anti dumping Duty... Click here for copy of the Notification.

# Rules notified for refund of anti dumping duty... Click here for copy of the Notification.

# Rate of customs duties for imports from ASEAN countries reduced... Click here for copy of the Notification.

# Amendments in FTP notified... Click here for copy of the Notification.

# Supplies to non mega power projects not entitled to deemed export drawback and exemption from terminal excise duty... Click here for copy of the Notification.

# Iron ore to attract 30% export duty... Click here for copy of the Notification.

# Tariff value for gold and silver amended... Click here for copy of the relevant Notification.

# Revised rates for import of diamond, platinum, gold etc... Click here for copy of the Notification.

# No Anti dumping duty on Poly propylene originating from or exported from Saudi Arabia...Click here for copy of the Notification.

# Notification issued extending Anti dumping duty on Caustic soda...Click here for copy of the Notification.



# Service tax refund through customs EDI notified... Click here for copy of the Notification.

# Transport of goods by rail –exemption extended till April, 2012... Click here for copy of the relevant Notifications.


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.

Should you have any feedback or require any clarifications, please do write to :

contact sa
team sa
s. jaikumar +91 93400 34455
g. natarajan +91 93400 54477
m. karthikeyan +91 93400 66688
a. p. ravi +91 93400 54466
p. dwarakanath +91 93963 31929
k.s. ramesh +91 93420 45442
sindhu mangat +91 93400 11034
ganesh.k.s. iyer +91 95033 66677
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