Leaf No : 46
Month : January
Year : 2014
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Greetings from Team SA!

 Mr. Narendra Modi proposes to eliminate all taxes by a "Banking Transaction Tax" - Click for a piece on BTT.

 Recommendations of the Committee on Review and Revamp of EOU Scheme - Click for the Office Memorandum.

 Tax Administration Reform Commission (TARC) being set up to review Tax Policies and Tax Laws in India in the context of global best practices.

 CBDT clarifies no TDS on Service Tax.

 Banknotes issued prior to 2005 to be withdrawn: RBI Advisory.

 No Roll Back on Gold Imports Curbs - FM.

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A manufacturer of Mono Cartons and Printed Paper Labels, wherein the cartons are subjected to excise duty and the printed paper labels are exempted from payment of duty vide Notification No.10/2003 CE dated 01.03.2003 had not maintained separate account in respect of the input services availed for both the products during the period September 2004 to February 2006. Department had issued demand and confirmed the demand of Rs.1,29,09,931/- being 10% of the value of exempted goods cleared during the period. The manufacturer reversed the entire input service credit availed by them amounting to Rs.5,49,854/- and took the stand before Hon’ble CESTAT that, in view of the principles laid down by the Hon’ble Apex Court in the case of Chandrapur Magnets as well as the fact that the reversal amount, they had complied with the requirement of Rule 6 of CCR. The Hon’ble CESTAT, based on the principles laid down in the case of Chandrapur Magnets, had considered the reversal made by the manufacturer and set aside the demand of the department of Rs.1,29,09,931/-.

The department had preferred an appeal before the Hon’ble High Court. After considering the arguments on both sides, the Hon’ble High Court after discussing the amendment made in Rule 6 under section 73 (2) of the Finance Act, 2010 and considering the fact that the assessee had reversed the credit even prior to the said amendment had dismissed the departmental appeal.

Civil Miscellaneous Application No.1962 of 2008 dated 3.01.14



 Anti-dumping duty on Caustic Soda, falling under Chapter 28 of the First Schedule to the Customs Tariff Act, 1975, originating in, or exported from, People’s Republic of China, imposed vide Notification No. 137/2008-Cus, dated 26/12/2008, and Korea RP, imposed vide Notification No. 95/2011 - Cus dated 3/10/2011 are extended upto 25/12/2014.

 Anti-dumping duty imposed for a period of five years on imports of Nonyl Phenol falling under Tariff item 2907 13 00 of the First Schedule to the Customs Tariff Act, 1975, originating in or exported from, Chinese Taipei, imposed vide Notification No. 94/2007 - Cus dated the 22/82007.

 Anti-dumping duty on Acrylonitrile Butadiene Rubber, originating in, or exported from Korea RP, imposed vide notification No. 01/2009-Cus, dated the 2/1/2009 extended upto 1/1/2015.

 Anti-dumping duty on imports of Hexamine falling under tariff item 2921 29 10 of the First Schedule to the Customs Tariff Act, 1975, originating in or exported from the Saudi Arabia and Russia, imposed vide notification No. 89/2007-Cus dated the 25/7/2007 shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this Notification.

 Anti-dumping duty on imports of 4, 4 Diamino Stilbene 2, 2 Disulphonic Acid (DASDA) falling under Chapter 29 of the First Schedule to the Customs Tariff Act, 1975, originating in, or exported from, the Peoples Republic of China and imported into India, imposed vide Notification No. 14/01/2012-DGAD, dated the 22/11/2013 shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this Notification.

 Anti-dumping duty on imports of Float Glass of thickness 2 mm to 12 mm (both inclusive) of clear as well as tinted variety (other than green glass) but not including reflective glass, processed glass meant for decorative, industrial or automotive purposes falling under heading 7005 of the First Schedule to the Customs Tariff Act, 1975, originating in, or exported from, China PR and Indonesia imposed vide  Notfication. No. 4/2009-Cus, dated the 6/1/2009 extended upto 5/1/2015.


 Pan Masala products rate of duty enhanced.

 Tobacco products rate of duty enhanced.

 Cenvat Credit Rules, 2004 amended.

 Pan Masala - Capacity Determination Rules Amended.

 Tobacco products - Capacity Determination Rules Amended.

 Amendment to Sl.No.11 (Sponsorship service) of mega - exemption notification.

 Export duty imposed on Iron ore pellets.

 Exchange rates effective from 17th January 2014 notified.

Changes in drawback rates notified.

 Circular on service tax liability of Resident welfare association.

 Availability of excise duty exemption to the units in the state of J&K which have already availed of exemption under New Industrial Policy for another 10 years.

 Levy of the Education Cess and the Secondary and Higher Education Cess on other cesses.

 Circular on Implementation of decision of Hon’ble Supreme Court in case of M/s Fiat India ltd.

 Clarification in case of Divergent practices of assessment with respect to compounded levy scheme applicable for smokeless tobacco products.

 Clarification regarding issuance of discharge certificate under VCES Scheme.

circulars notifications

 Export of stone aggregates to Maldives permitted.

 Requirement of submission of hardcopies of documents for issue of RC for export of certain commodities waived.

 SHIS, SFIS and AIIS scrips cannot be used for payment of Custom duty for shortfall in EO in Advance Authorisation or DFIA.

 New condition added for import of customized cars/motor cycles for race events.

 Export of Cotton Yarn is made eligible for benefits under Incremental Export Incentivisation Scheme for the entire financial year 2013-14.

 Procedure for claiming of benefits in respect of Third Party exports under EDI system and a guideline for conversion of currencies.

 Procedure for processing of claims in respect of realization of export proceeds through insurance agency is being introduced.

 Power for extension in time for installation of Capital Goods is being delegated to Regional Authorities.

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 Registration of RC cancelled ex-parte for failure to file Returns. Cancellation not proper. Order set aside - Harishankar Goverdhanlal V M.P Commercial Tax Appellate Board, Bhopal and Others - 2014 67 VST 123 (MP HC).

 Manufacture and installation of elevators - Transaction is sale and not works contract - Schindler India (P) Ltd V State of Karnataka - 2014 67 VST 152 (Kar HC).

 Notice proposed by Enforcement Wing. Dealer to file objections before the Assessing Authority and Authority to consider to pass order on merits without being influenced by report of the Enforcement Wing - Ultra Tiles Pvt Ltd V Assistant Commissioner (CT), Saligramam Assessment Circle, Chennai - 2014 67 VST 162 (Mad HC).

 Transport of goods - Requirement of carrying declaration form ST18A. Dealer cannot plead ignorance of law as reason. Penalty justified - Assistant Commercial Taxes Officer, Flying Squad, Bhiwadi V Shri Magru & Anr - 2014 67 VST 224 (Raj HC).

 Recovery of Tax - Condition precedent. Attachment of Bank Account after spot inspection without notice to dealer or order of Assessment is not valid - Astek Electricals And Controls V Assistant Commissioner (CT), Ranipet, Vellore & Others - 2014 67 VST 321 (Mad HC).

 Sales tax can be demanded on addition of income offered during survey under income tax proceedings when the only source of income is from business and no sales tax has been paid on such offered income - U.D.Rotighar vs Joint CCT - 2014 67 VST 141 Kar.

 Contractee not entitled to deduct more amount than what has been estimated as percentage of goods used in contract by commercial tax officer in absence of specific break up available in contract - Jaiprakash Associates vs Supdt. Engineer - 2014 67 VST 172 AP.


 High Court allows suo motu credit - ICMC Corporation Ltd vs CCE, Chennai II.

 The sugar cess paid under the Sugar Cess Act is a tax and to be precise it is DUTY OF EXCISE and not FEE. Appellant entitled to credit of CVD paid on imported sugar equivalent to Cess levied and paid under Sugar Cess Act - Commissioner Of Central Excise, Belgaum Vs M/s Shree Renuka Sugars Ltd - 2014-TIOL-98-HC-KAR-CX.

 High Court grants bail to defaulter who has not paid amount collected as service tax to the Government subject to the condition of repayment of dues in fixed instalments - Sandeep Nair vs Union of India - 2014-TIOL-85-HC-CHHATISGARH-ST.

 High Court directs service recipient to reimburse the amount of service tax to the service provider even though such a clause is not contemplated in the agreement since payment of service tax is a statutory liability - Bhagawati Security services vs Union of India - 2014-TIOL-33-HC-ALL-ST.

 Court empowered to refuse to exercise its jurisdiction on the ground of forum convenience - M/s GIPPSAERO PTY LTD Vs Union ofIndia & Ors - 2014-TIOL-70-HC-MUM-CUS.

 Refund of SAD not subject to condition of mentioning Bill of Entry number in sale invoice - Commr of Customs vs Shri Ram Impex India Pvt Ltd - 2014-TIOL-01-CESTAT-MAD.

 Merchant Exporter who procures the goods from the open market is entitled only for the benefit of All Industry Rate of Duty Drawback of Customs allocation only - Ambition Creations vs CCE - 2014-TIOL-129-CESTAT-DEL.

 Indirect supplies of goods as stores for consumption on board a vessel are not eligible for exemption under Notification No.64/95-CE - Hindustan Petroleum Corporation Limited vs CCE - 2014-TIOL-149-CESTAT-MUM.

 Review order by Committee of Commissioners not sustainable when there is no application of mind and that the committee has merely appended their signature to note sheets prepared by subordinate officers - CCE vs Honda Motorcycle & Scooters India Pvt Ltd - 2014-TIOL-83-CESTAT-DEL.

 The 'relevant date' as given in clause (a) of Explanation B to Section 11B in respect of export rebate claims, cannot be applied to Rule 5 refund claims - Deepak Spinners Ltd vs CCE - 2014-TIOL-63-CESTAT-DEL.

 Even if the Transporter has paid ST the appellant is eligible to take CENVAT credit on GTA - Rucha Engineers Pvt Ltd vs CCE - 2014-TIOL-54-CESTAT-MUM.

 Credit cannot be distributed under ISD scheme to jobworker's factory - Subell Alloys Co of India Ltd vs CCE - 2014-TIOL-38-CESTAT-MUM.

 Stock transfers by EOU to its units are eligible for benefit of SAD exemption - VVF Ltd vs CCE - 2014-TIOL-04-CESTAT-MUM.

 For arriving at “normal transaction value” of ‘greatest aggregate quantity’ when goods are sold from different depots, what is to be taken is value at a particular depot from where goods are sold and not values prevalent at other depots  - Hindustan Petroleum Corpn Ltd Vs Commissioner Of Central Excise, Mumbai-I - 2014-TIOL-20-CESTAT-MUM.

 Cenvat credit is not required to be reversed even if the activity of cutting and slitting of Jumbo Rolls of aluminium film does not amount to manufacture as duty has been paid  - Commissioner Of Central Excise, Pune-I Vs Associated Capsules Ltd - 2014-TIOL-28-CESTAT-MUM.

 Subsequent reduction in prices by passing on higher discounts to the customers after the clearance of the goods cannot alter the excise duty liability - M/s Videocon International Ltd Vs Commissioner Of Central Excise, Aurangabad - 2014-TIOL-50-CESTAT-MUM.

 Activity of affixing details as brand name, MRP, size of the shoes, colour of the shoes, etc on shoes received in loose form and re-packed in cardboard boxes is manufacture as the footwear is a specified commodity in the Third Schedule to the Central Excise Act, 1944 - Amin Virji Imran Virji Vs Commissioner Of Central Excise, Mumbai-I - 2014-TIOL-84-CESTAT-MUM.

 Promotional products given free of cost is to be valued for excise duty under Rule 4 of Excise Valuation Rules  - L’oreal India Private Ltd vs CCE - 2014-TIOL-78-CESTAT-MUM.

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