Leaf No : 34
Month : January
Year : 2013
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Greetings from Team SA

 Supreme Court has dismissed the review petition filed against judgement in the landmark Fiat Case regarding assessable value of sale of goods at price lesser than market value... M/s. Fiat India Private Ltd vs CCE 2012-TIOL-110-SC-CX.

 At a meeting of the Empowered Committee of State Finance Ministers at Bhubaneswar, the State Governments accepted most of the suggestions of the Committee constituted by the Finance Minister P.Chidambaram.

 Textiles Ministry to study the likely impact of proposed Goods and Services Tax (GST) on the textiles sector with a view to improve its competitiveness and raising its share in the global market.

 GAAR to be implemented with changes proposed by Shome Panel and to be effective from 2016-17, with NO retrospective application.

 Applications invited for post of member judicial in CESTAT.

 Government to introduce legislation to ensure timely delivery of goods and services to citizens by public authorities.

 Shri. PK Jain, Shri. Manmohan Singh, Shri. H.K. Thakur and Dr.I.P Lal are appointed as new Members (Technical) at Mumbai, New Delhi, Ahmedabad and Kolkotta benches of CESTAT respectively.

 Shri. B.S.V.Murthy, Member (Technical) has been transferred to the Bangalore bench of CESTAT.

 Shri. P.K.Das, reinstated as Member (Judicial) and posted to Chennai bench of CESTAT.

 Supreme Court has directed the airlines not to charge transaction fees from air passengers when tickets are booked through travel agents.

 India to grow at 5.9% in 2013, says IMF.

 Govt hikes gold import duty and introduces Deposit Scheme.

 Govt seeks TRAI views for further reform in Cable TV Sector.

 India's growth may inch closer to China in near future: WB Economist.

 Gujarat to account for one-third of India's exports by 2020: FIEO.

 Personal income tax collections up by 14.6%.

 14th Finance Commission to submit report by Oct, 2014

 Internet celebrates 30th birthday

 Agriculture growth vital for inclusive growth: FM

 Rangarajan committee recommends extended tax holiday & time frame of 10 years .

sa corner

The Supreme Court of United Kingdom has held that a company cannot withhold legal advice given by Chartered Accountants under legal advice privilege. The appeal arose from an issue as to whether the legal advice regarding tax avoidance obtained by the appellant company from PWC should be disclosed to the Tax Department when the details are called for. The counsel for appellant had argued that the advice is entitled for protection under privileged communication. The Hon’ble Court has found that the benefit is available only for communication between a Lawyer and the Client and not between a Chartered Accountant and the Client....

Prudential PLC and Another vs Special Commissioner of Income Tax & Anr.


 Simplification and revision of softex procedure.

 CBDT notifies no tax deduction for specified payments.

 CBDT throws clarity on direct tax benefits to export of software.

 NBFC in business of hire purchase can claim depreciation on vehicles leased out to third parties... ICDS Ltd vs CIS - 2013-TIOL-06-SC-IT.

 Interest earned by the club on the surplus funds invested in fixed deposits with the corporate member banks is not exempt from levy of Income Tax on the doctrine of mutuality... M/s.Bangalore Club vs CIT - 2013-TIOL-05-SC-IT.

 Trust having advancement of animal welfare through prevention or suppression of cruelty to animals is entitled for registration as charitable organisation under Section 12A of Income Tax Act... Snekalaya for Animals vs ITO - 2012-TIOL-790-ITAT-MAD.

 Gujarat High Court upholds the decision of ICAI disciplinary committee to cancel the licence of CA for one year for certifying inaccurate accounts... CA Rajesh vs Disciplinary Committee - 2013-TIOL-39-HC-AHM-MISC.


 Circular regarding recovery of confirmed demands during pendency of appeal.

 Point of taxation regarding renewal notice for payment of insurance premium.

 Circular on classification of cordless infrared device.

 FDR can be replaced with Bank guarantee for claiming duty exemption on execution of power projects.

 Instruction issued for installation of CCTV in customs area.

 Trade notice regarding self sealing and numbering of export cargo.

 Notification 12/12-CE amended prescribing higher rate of duty for gold and silver bars.

 Notification 12/2012-Cus amended enhancing rate of gold bars and crude oils.

 Notification 36/2001-Cus regarding tariff value of crude oils and gold amended.

 Revised tariff rates for gold and silver.

 Amendment to notification exempting goods imported from specified countries under PTA.

 Notification granting concessional rate on imports from Japan amended.

 Exemption notification on imports from Korea amended.

 Exemption notification on imports from Malaysia amended. 

 Notification providing for effective rate of duty on imports from SAFTA superceded.

 Rate of exchange of conversion for foreign currency w.e.f 18.01.2013 notified.

 Safeguard duty of 20% imposed on import of Hot Rolled Flat Products of Stainless Steel in to India.

 Transportation of milk by rail or a vessel from one place in India to anotheris covered by the Notification No.25/2012-ST dated 20.06.2012.

circulars notifications

 EHTPs and STPs can apply to the jurisdictional RAs for grant of Status Certificate.

 Public notice procedure for availing Incremental Exports Incentivisation Scheme.

 Amendments to incentive schemes under Chapter 3 of FTP.

 DGFT includes three more Chapter Offices of Federation of Indian Export Organizations (FIEO) in Appendix-2 of Handbook of Procedures-Volume 1 2009-2014.

 DGFT amends SION for import items in respect of silver.

 Clarification regarding export of cotton through wagah border.

 Amendments in reward/incentive schemes under Chapter 3 Schemes of FTP 2009-14.

 Requirement of certification regarding export of fresh grapes, groundnut, peanut and its products to specified countries notified.

 Export of Pharmaceutical Grade Sugar and Specialty Sugar not to be required with DGFT.

vat spot

 Amendments to Schedule 1 and IV of APVAT Act 2005.

 Transfer of right to use trademark to franchisee on payment of royalty is treated as ‘deemed sale’ attracting liability under Kerala Value Added Tax Act... Malabar Gold (P) Ltd vs CTO - 2013 29 STR 119 (Ker).

 Despatch of goods to foreign country for jobwork and receipt of converted goods which are in turn sold to Government in pursuance of contract does not amount to sale in course of import... State of TN vs Steel Authority of India - 2012 56 VST 441 (Mad).

 Inkjet and toner cartridges are integral parts of printers and is hence classifiable as ‘parts and accessories of computer system and peripherals’... Hewlett Packard India Sales Pvt Ltd vs State of Assam and Others - 2012 56 VST 472 (Gauhati).

 Value of rentals collected on bottles and crates of soft drinks not to form part of sale price... Hindustan Coca-Cola Beverages (P) Ltd vs State of Andhra Pradesh - 2013 VIL 08 AP.

 Amendment in Delhi VAT effected in 2010 that input credit is allowable only when the seller has paid the tax is not clarificatory and is therefore applicable prospectively... Shanti Kiran India P Ltd vs CTT Dept - 2013 57 VST 405 (Delhi).

 Power of State Government to levy entertainment tax on cable television operator is not affected by levy of service tax on cable operators... Asianet Satellite Communications Ltd vs State of Kerala - 2013 57 VST 389 (Ker).


 Mere non-payment of duties is NOT equivalent to collusion or willful misstatement or suppression of facts - Burden of proof of proving mala fide conduct under the proviso to Section 28 of the Act lies with the Revenue... M/s Uniworth Textiles Limited vs CCE, Raipur - 2013-TIOL-13-SC-CUS.

 Manufacture and sale of specified goods from branded sale outlets would amount to sale under brand name for the purpose of SSI exemption... CCE vs Australian Foods India Pvt Ltd - 2013-TIOL-03-SC-CX.

 Even in absence of financial hardship, a strong prima facie case constitutes sufficient reason for dispensing with pre-deposit of any amount for the purposes of entertaining the appeal on merits... A Plus Projects Technology (P) Ltd vs UOI - 2013-TIOL-10-HC-MUM-CX.

 Trade Notice issued by Commissioner cannot nullify statutory provision... Bihar Sponge Iron Ltd vs UOI - 2012 286 ELT 513 (Jhar).

 Manufacturer is eligible to avail credit of service tax paid on services as technical testing and analysis, technical inspection and certification, courier agency service etc... CCE vs Cadila Healthcare Limited - 2013-TIOL-12-HC-AHM-ST.

 Destruction of goods in warehouse after warehousing period does not absolve assessee from duty liability... Raj Exports vs. Central Warehousing Corp - 2013 287 ELT 166 (Guj).

 There is no provision under the Customs Act 1962 to recover dues of Company from its Directors... Suman N Agarwal vs Union of India - 2013-TIOL-62-HC-MUM-CUS.

 Export obligation under VABAL is fulfilled only if the goods exported are manufactured by the holder of license... Apar Industries Ltd vs. JDGFT - 2013-TIOL-58-HC-MUM-EXIM.

 Rate of service tax prevalent as on date of provision of service would apply in case of change in rate of tax during provision of service and receipt of payment... CST vs Consulting Engineering India (P) Ltd - 2013-TIOL-60-HC-DEL-ST.

 CAG has no power to audit the accounts, service tax records or other documents of a company, which is not an undertaking of the Central Government or any State Government... SKP Securities Ltd Infinity Infotech Parks Ltd vs Deputy Director - 2013-TIOL-38-HC-KOL-ST.


 Activity of sharing services of some of the office personnel with sister concern does not amount to provision of supply of manpower service... M/s. Paramount Communication Ltd vs CCE - 2013-TIOL-37-CESTAT-DEL.

 Activities as denting and painting of bus bodies done by jobworker amounts to manufacture and hence there is no liability to pay service tax under BAS... Sharvan Kumar vs CCE - 2013-TIOL-03-CESTAT-DEL.

 When ‘NIL’ returns are filed belatedly the adjudicating officer can waive penalty as per proviso to Rule 7C of Service Tax Rules, 1994... Amrapali Barter Pvt Ltd vs CST - 2013-TIOL-32-CESTAT-KOL.

 Long term leasing of vacant land is not covered with in scope of ‘renting of immovable property service’. Waiver of predeposit granted... Greater Noida Industrial Development Authority vs CCE - 2013-TIOL-44-CESTAT-DEL.


 Refund of cash security made in terms Board's Circular for imports under project import scheme is not hit by unjust enrichment... IDMC vs Commr. Of Customs - 2012-TIOL-1969-CESTAT-MUM.

 Benefit of provisions of Section 11A(2) is not available to co-noticees merely because the main noticee has discharged duty liability along with interest and 25% of penalty... CCE vs Shri Anand Agarwal - 2013-TIOL-26-CESTAT-DEL.

 Manufacturer entitled for credit of service tax paid on storage and warehousing charges incurred at the depot... Danmet Chemicals Private Ltd vs CCE - 2013-TIOL-148-CESTAT-MUM.

 There is no requirement under Cenvat Credit Rules that input service should be availed with in factory... Golden Tobacco Ltd vs CCE - 2013-TIOL-157-CESTAT-MUM.

 Rule 4 of Excise Valuation Rules, 2000 can be applied in case of clearance to related parties when there are simultaneous clearance to unrelated buyers... Oswal woollen Mills Ltd vs. CCE - 2012-TIOL-1963-CESTAT-DEL.

before parting...


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