Leaf No : 40
Month : July
Year : 2013
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Greetings from Team SA!

 Justice P. Sathasivam takes over as the new Chief Justice of India from retiring CJI Altamas Kabir. He is the 40th CJI and the first from Tamil Nadu.

 Telengana to be the 29th State in Union of India with Hyderabad to be the common capital for next 10 years.

 Delhi Government has agreed to enhance jurisdiction of lower court in civil suit from existing 20 lakhs to Rs 2 crores.

 The Finance Minister of Jammu & Kashmir, Abdul Rahim Rather is the new Chairman of the Empowered Committee of State Finance Ministers on GST. 

 Legal Metrology (Packaged Commodities) Rules, 2011 amended.

 Offline Excel Utility for filing ST3 returns for the period October 2012 to March 2013 is now available in ACES.

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A manufacturer-importer had imported aluminium scrap through various ports in India. The department had alleged that the importer had misdeclared the value for these imports on the following grounds :

• On the basis of computer printouts and statement of indenter and partner of importer.
• On the basis of contemporaneous imports.
• On the basis of LME prices.

and a show cause notice was issued for demanding differential duty based on the aforesaid grounds and confirmed by the adjudicating authority. On appeal, the Hon’ble Tribunal, have held that :

• Computer printouts cannot be admitted into evidence for nonfulfilment of statutory conditions prescribed under Section 138C of the Customs Act, 1962.

• For contemporaneous imports, demand has not been worked out taking into consideration the provisions of Customs Valuation Rules (CVR) and as per Rule 6 of the CVR, if different contemporaneous values are available for the same goods for the same period then the lowest has to be considered.

• LME price for prime metal cannot be made applicable for valuing the scrap as discount is arbitrary and based on presumptions and assumptions.

• The admission statement given based on a retracted statement is not sustainable.


 A/629-632/13/CSTB/13 16.04.2013




 Para 2.17A of FTP amended for sale of waste or scrap from SEZ to DTA is permitted without an authorization.

 Import of Electrical Energy falling under CTH 2716 00 00 made free.

 Amendment to list of specified goods, services and technologies (SCOMET).

 Amendment regarding requirement of Sanitary Import Permit.

 EOU or SEZ/EHTP/STP/BTP can retain their IEC number even after de-bonding.

 Amendments in the Reward/Incentive Schemes of Chapter 3 of Foreign Trade Policy 2009-14 - Appendix 37D of Handbook of Procedure (Vol. I).

 “Kattupalli Sea Port, Tamil Nadu" included as as Port of Registration for availing export promotion benefits under Chapter 4 of FTP.

 Non-requirement of Registration Certificates for export of non-basmati rice and wheat except to Nepal and Bangladesh.

 New SION in respect of Fatty Alcohol.


 Conditions on re-import of Pets.

 Clarification on applicability of the Pneumatic Tyres and Tubes for Automotive Vehicles (Quality Control) Order 2009 for used tyres.

 Designated area for fumigation and separate storage for keeping fumigated/ treated cargo.

 Sedan Cars are not SUV’s to attract 30% duty.

 Constitution of Committees to advise the authority for writing off of arrears.

 Modification to procedures regarding movement of vehicles in transit for Nepal.

 Recovery of arrears of penalties from legal heirs.

circulars notifications

 Amendment to Notification 12/12 - Cus in respect of Sl.Nos. 76,77,78 and 139A.

 Amendment to Notification 46/11 - Cusinserting Sl.Nos.31A (Ch.03) and Sl.No.565A (Ch.48).

 Amendment to Notification 36/2001 - Cus.

 Tiruchirappalli Airport notified for Courier import and export operations.

 Mahagaon, Thane notified as port for unloading of imported goods and loading of export goods.

 Notifications amended incorporating Foreign Post Office, New Delhi, as port of export for the purpose of Export Promotion benefits.

 Rate of Exchange of conversion of foreign currency from July 19 2013.

 Excise duty exemption to scheduled formulations subject to specified processes under Drugs Price Control Order.

 New Notification regarding exemption to services provided to SEZ.

 Anti-dumping duty imposed on imports of ‘Poly Vinyl Chloride Resin from European Union.

 Anti dumping duty on imports of ‘Rubber Chemicals’, originating in, or exported from, China and Korea extended till 04-05-14.

vat spot

 Interest rates increased to 2 percent under TNVAT Act 2006.

 List of banks notified for collection of VAT under TNVAT Act 2006.

 Clarification under TNVAT regarding zero rate sales.

 Circular on VAT audit and Inspections under Sections 64 & 65 of TNVAT Act.

 Clarifications on certain deductions for works contract under Kerala VAT.

 Ink jet cartridges and toner cartridges are parts and accessories of printer which is a peripheral to a computer system and would be covered under Entry Nos.22 & 24 of Sl No.68, Part B of First Schedule to the TNVAT Act... Canon India Private Ltd vs State of TamilNadu - 2013 VIL 53 MAD.

 Amendment to Section 8 (5) of CST in the year 2002 does not take away power of the State Government to grant exemption on Section 8 (2) transactions... Prism Cement Ltd vs State of Maharashtra - 2013 TIOL 511 HC MUM CT.

 Royalty received from franchisees for use of trade mark is not leviable to VAT as the same is specifically covered under ‘Franchise service’ for purpose of levy of service tax... Malabar Gold Private Ltd vs CTO - 2013 TIOL 512 HC KERALA ST.

 Processing of fresh milk into pasteurized milk is manufacture...TamilNadu Coop Milk Producers Federation Ltd vs State of TamilNadu 2013 62 VST 190 Mad.

 No authority with the Department to attach bank accounts of assessee without issuing notice for demand... Astek Electricals & Controls vs ACCT - 2013-14 19 TNCTJ.

  Levy of Entertainment tax on DTH is constitutional but the charging Section 41 is invalid as it does not specify taxable event and taxable person clearly... Tata Sky Ltd vs State of Tamilnadu - 2013 62 VST 69 Mad.


 Levy of service tax on supply of food and accommodation services by hotels, restaurants etc struck down... Kerala Classified Hotels and Resorts Association vs UOI - 2013 TIOL 533 HC KERALA ST.

 Service tax levy on Club or Association services provided to its members struck down... Sports Club of Gujarat Ltd vs UOI- 2013 TIOL 528 HC AHM ST.

 Levy of service tax on temporary transfer of right to use copyright in cinematograph films held to be valid... AGS Entertainment Pvt Ltd Vs UOI - 2013 TIOL 521 HC MAD ST.

 Circular regarding service tax liability of film distributors is valid... Mediaone Global Entertainment Ltd vs Chief CCE - 2013 TIOL 516 HC MAD ST.

 Electricity is not excisable goods and hence there is no need to follow Rule 6 of CENVAT Credit Rules, 2004... Gulara Chini Mills vs Union of India - 2013 TIOL 568 HC ALL CX.

 Clearance of goods to contractors executing projects under Notification 108/95-CE are also  entitled for exemption... CCE vs CaterPillar India Pvt Ltd - 2013 TIOL 562 HC MAD CX.

 Circular No. 904/24/2009-CX regarding excisability of bagasse quashed... Balrampur Chini Mills Ltd vs Union of India - 2013 TIOL 557 HC ALL CX.

 Extended period of limitation can be legitimately invoked even if revenue had knowledge of suppression... Union Quality Plastic Ltd vs CCE 2013 TIOL 1072 CESTAT AHM LB.

 No fee is payable on filing appeals relating to refund/rebate issues under Customs, Excise and Service Tax... Glyph International Ltd vs CCE - 2013 TIOL 1103 CESTAT DEL LB.

 Ground rent collected from buyers for delayed payment not to be included in assessable value... CCE vs SAIL Bhilai Steel Plant - 2013 TIOL 1088 CESTAT DEL.

 Amount received towards technological fees for manufacturing car kits is includible in assessable value... Skoda Auto India Pvt Ltd vs Commr. of Customs - 2013 TIOL 957 CESTAT MUM.

 Purchase of IMFL from manufacturers, transport of liquor to various depots and sale thereon to various licencees comes under BAS... Rajasthan State Beverages Corpn Ltd vs CCE - 2013 TIOL 1110 CESTAT DEL.

 Exemption through refund is available to services consumed exclusively in SEZ... Intas Pharma Ltd vs CCE - 2013 TIOL 1091 CESTAT AHM.

 If abatement is claimed on value of materials, service tax paid insurance premium relating to such goods not available as credit... Genus Power Infrastructures Ltd vs CCE - 2013 TIOL 1079 CESTAT DEL.

 Rule 6 (5) regarding credit on common input services cannot be interpreted as permitting only availment of credit and not utilization... CCE vs Asia Pacific Hotels Ltd - 2013 TIOL 1078 CESTAT MUM.

 Order passed under section 73C regarding provisional attachment is not appealable to Tribunal... Kingfisher Airlines Ltd vs CST - 2013 TIOL 1052 CESTAT MUM.

 Exemption on maintenance or repair of roads not available to runways as runways and roads are different... DP Jain Co Infrastructure Pvt Ltd vs CCE - 2013 TIOL 1029 CESTAT MUM.

 Service tax liability on works contract prior to 01.07.2007 has been referred to Third Member... Larsen & Toubro Ltd vs CST - 2013 TIOL 1138 CESTAT MUM.

 Question whether branch office receiving services abroad is liable to pay service tax under reverse charge referred to Third Member... Thai Airways International Public Company Ltd vs Commissioner - 2013 TIOL 1117 CESTAT DEL.

before parting...


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