Leaf No: 52 Month : July Year : 2014

Greetings from Team SA!

  LS passes the Finance Bill.

 Supreme Court rejects a PIL seeking a direction to the Government to collect the income tax arrears from Vodafone.

 CBEC appoints Committees to study Tax Administration Reforms Committee Report.

 Appointments Committee of the Cabinet has approved the appointment of Income Tax Chief Commissioner Archana Ranjan, as Special Secretary-cum-Director General, Central Economic Intelligence Bureau.

 Prime Minister Mr. Narendra Modi has launched MyGov, a platform that empowers the citizens of India to contribute towards Surajya.

 India has the second fastest growing services sector with its Compound Annual Growth Rate at 9.0 per cent, just below China's 10.9 per cent, during 2001 to 2012.

 14th Finance Commission to submit report by the end of October.

 Anti-Dumping Duty on steel and fibre glass tapes and their parts and components originating in or exported from, the People's Republic of China extended for a further period of one year i.e. it shall remain in force upto and inclusive of the 14th day of May, 2015.

 Anti-dumping duty on “Front Axle Beam and Steering Knuckle meant for heavy and medium commercial vehicles” falling under the tariff items 7326 9099, 7326 1910, 7326 1990, 8708 5000, 8708 9900 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, the People’s Republic of China extended for a further period of one year i.e. it shall remain in force upto and inclusive of the 14th day of June, 2015.

 Anti-dumping duty on “Carbon Black used in rubber applications”, falling under Chapter 28 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, the People’s Republic of China, Russia and Thailand extended for a further period of one year i.e. it shall remain in force upto and inclusive of the 29th day of July, 2015.

 Anti-dumping duty on “Phosphoric Acid of all grades and all concentration (excluding Agriculture or Fertilizer grade)”, falling under Chapter 28 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, Korea (RP), extended for a further period of one year i.e. it shall remain in force upto and inclusive of the 21st day of June, 2015.

 Anti-dumping duty on “Vitamin C”, falling under Chapter 29 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, the People’s Republic of China extended for a further period of one year i.e. it shall remain in force upto and inclusive of the 15th day of June, 2015.

 Anti-dumping duty on “Potassium Carbonate”, falling under Chapter 28 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, the European Union, the People’s Republic of China, Korea RP and Taiwan extended for a further period of one year i.e. it shall remain in force upto and inclusive of the 9th day of June, 2015.

 Definitive Anti-dumping duty on Rubber Chemicals, namely, MBT, CBS, TDQ, PVI, TMT and PX-13(6PPD) originating in or exported from the People’s Republic of China and PX-13(6PPD) originating in or exported from Korea RP imposed for a period of five years.

 Provisional anti-dumping duty imposed on imports of Purified Terephthalic Acid (PTA) originating in, or exported from the People’s Republic of China, European Union, Korea RP and Thailand for a period of six months.

 Clarification on the valuation of fertilizers for the purpose of levy of excise duty – inclusion of subsidy component in the assessable value.

 Tariff Value of Gold decreases but Silver increases.

 Rate of exchange of conversion of each of the foreign currency.

 Hindon, Ghaziabad in Uttar Pradesh notified as a Customs Airport for the purpose of unloading of imported goods and loading of export goods or any class of such goods related to Ministry of Defence, Government of India.

 Export of all varieties of onions described at Serial Number 51 & 52 of Chapter 7 of Schedule 2 of ITC(HS) Classification of Export & Import Items will be subject to a Minimum Export Price (MEP) of US$ 500 per MT.

 Import policy of the item ‘foie gras’ covered under EXIM Code 0207 43 00 has been changed to ‘prohibited’.

 Quantity ceiling for export of organic sugar has been removed till the time export of sugar is permitted “Freely” and export of organic sugar would be permitted subject to registration of quantity with DGFT and certification by APEDA as sugar being organic sugar.

 One Pre Shipment Inspection Agency being de-listed from Appendix 5 and made ineligible to issue Pre-Shipment Inspection Certificate.

 SIONs A1143, A1170, A3627 and K134 have been reinstated with the amendment that the import items listed in column 3 have been substituted by items listed in column 4 of the public notice.

 VKGUY benefit on Skimmed Milk Powder has been withdrawn.

 Suo motu revisional order pointing our errors in assessment order improper - VF Arvind Brands Pvt Ltd vs Addl. Commr of Commercial Taxes, Zone I, Bangalore - 2014 71 VST 458 (Kar HC).

 Estimation of turnover being a question of fact, Court will not interfere in revision - Budh Ram Girdhar Gopal vs Commissioner of Commercial Taxes, Lucknow - 2014 71 VST 471 (All HC).

 Zero rated sales by units located in SEZ areas - Non-obstante clause in SEZ Act overriding other State laws “for the time being in force” applies to even laws made subsequently for levy of purchase tax on zero rated sales - Torrent Energy Limited vs State of Gujarat & Ors -  2014 71 VST 582 (Guj HC).

 Erroneous or incorrect deduction of freight, discounts through credit notes, not a case of concealment warranting penalty - Super Traders vs Addl CCT, Bhopal & Ors - 2014 72 VST 129 (MP HC).

 Exemption on subsequent inter-state sales - Rules by the State Government requiring production of additional documents other than those prescribed under provisions of Central Sales Tax Act, ultravires - Siemens Limited vs Asst Commissioner (Audit Assmt) II, Ernakulam - 2014 72 VST 154 (Ker HC).

 Tribunal, in appeal, is entitled to go into merits where the appeal challenging dismissal of first appeal for failure to make pre-deposit in limine and on merits - Madhav Steel Corporation vs State of Gujarat - 2014 72 VST 318 (Guj HC).

 Form C under CST is required to be issued for the transfer of credit in the passbook issued under DEPB Scheme - P.Sreekumar vs CTO III Circle, Ernakulam - 2014 TIOL 1234 HC KERALA CT.

 When the assessee is unable to comply with the condition to furnish security bond for the balance of tax and penalty, he can be allowed to execute a personal bond, under the TNVAT Act - Shakeel Garments vs Appellate DC (CT), Madurai - 2014 TIOL 1201 HC MAD VAT.

 Redemption fine paid by the assessee to be refunded when he is not in a position to pay the customs duty for redeeming the confiscated goods - Bharat M. Shah vs UOI - 2014 (304) E.L.T 643 (S.C).

 Application to Settlement Commission concerning mis-declaration is admissible under Section 127B, even in cases where there is a notice under Section 124 which does not propose a customs duty - Komal Jain vs UOI - 2014 (304) E.L.T 675 (Del).

 Statutory liability which accrued to a proprietorship concern cannot be said to have been evaporated after the death of proprietor and constitution of partnership firm by his sons which had the same trade name but different assessee number - Shree Ganesh Forging Company vs UOI - 2014 (305) E.L.T 121 (Cal).

 Appellate Tribunal has jurisdiction to extend the stay granted earlier beyond the total period of 365 days in view of statutory provisions contained in Section 35C(2A) of the Central Excise Act, 1944 considering the facts of the case and if the delay is not attributable to the appellant - Commissioner vs Small Industries Development Bank of India - 2014 TIOL 1102 HC AHM CX.

 Admission by the assessee while submitting the application before the Settlement Commission under Section 32E(1) of the Act straightaway cannot be said to be admission on behalf of the assessee accepting the liability - Commissioner vs Maruti Fabrics - 2014 TIOL 1090 HC AHM CX.

 Structural steel items viz., M.S.Plates, Angles, Channels and HR Sheets used for civil construction activity, are capital goods eligible for credit in terms of Rule 57Q as it stood at the relevant time - Commissioner of Central Excise & Service Tax, Tiruchirapalli vs M/s India Cements Ltd - 2014 TIOL 1185 HC MAD CX.

 Whenever a period is prescribed by a statute for the purpose of an Act in a Court or office and the period expires on a holiday, then according to Section 10 of the General Clauses Act, the Act should be considered to have been done within the period prescribed if it is done on the next working day on which the court or office is open - Kurto-O-John Shoe Components (India) Pvt. Ltd. vs UOI - 2014 (304) E.L.T 652 (All).

 Condition 2(b) of Notification no. 102/07-Cus, requiring an endorsement that no credit of SAD shall be admissible is merely procedural - Chowgule & Company Pvt Ltd vs CC & CE - 2014 TIOL 1191 CESTAT Mum LB.

 Credit cannot be denied if part of the inputs is contained in any waste which is not chargeable to duty - M/s Eveready Industries India Ltd vs CCE - 2014 TIOL 1198 CESTAT KOL.

 The distribution of service tax through ISD is only a facility provided under the Rules and does not deal with recovery. Therefore, the credit, if taken wrongly, has to be recovered from the person who has taken credit - Clariant Chemicals (I) Ltd vs Commissioner of Central Excise, Raigad - 2014 TIOL 1255 CESTAT MUM.

 Amendment to Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 by Notification no.23/2009-ST dated 7.7.2009 would not apply to cases where the contract had commenced before 7.7.2009 in accordance with the proviso to the explanation in the amended rules - M/s Gammon India Limited vs CCE & ST, Nagpur - 2014 TIOL 1344 CESTAT MUM.

 Travelling beyond the scope of show cause notice is not permissible in view of the Apex Court decision in the case of Ballarpur Industries and Brindavan Beverages - M/s Deepak and Co vs CCE - 2014 TIOL 1233 CESTAT Del.

A Budget Overview

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