Leaf No : 39
Month : June
Year : 2013
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Greetings from Team SA!

  Rupee crosses 60 vs USD.

 CJI inaugurates legal services clinic at Kashmir University.

 Rules for blacklisting tax havens notified.

 Parliament standing committee on Finance may propose optional GST for States. Standing committee suggests voting to be means of arriving at decisions in GST council. 

 The Cabinet Committee of Economic Affairs (CCEA) accepts Rangarajan Panel recommendations on price fixation of domestic gas .

 Customs clearance of all export goods on 24x7 basis from four major Air Cargo Complexes/airports at Bangalore, Chennai, Delhi and Mumbai starting from 1st July 2013.

 Commodity Transaction Tax effective from 1st July 2013.

 Train ticket booking through SMS launched.

 MORSE CODE into CORPSE MODE - 160 year old telegraph service to be buried w.e.f 15th July 2013.

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A manufacturing firm, apart from its manufacturing activity was also engaged in doing job work of electroplating connector components with gold and silver, for a 100% EOU. The adjudicating authority had held that the process of electroplating undertaken by the job worker would not amount to “manufacture” and hence to be construed as a "service" under the “business auxiliary service”. An appeal was filed by the firm before CESTAT. Based on the earlier decision of Tribunal in the case of Modison Metal Refiners 1996(88)ELT 292(Tribunal) as well as Section Note 6 to Section 16 of the Schedule to the Central Excise Tariff Act, CESTAT in the instant case, had concluded that the activity undertaken by the firm would amount to “manufacture”.

CESTAT also held that, even if the process does not amount to “manufacture”, the assessee are eligible for exemption from payment of Service Tax as per the provisions of Notfn.8/2005-ST, though the EOU was claiming exemption under Notfn.24/2003-CE. CESTAT also agreed with the arguments that the exemption Notfn.24/2003-CE, is not an unconditional exemption and accordingly held that there is a case for extending the benefit of exemption Notfn.8/2005 –ST, even if it is assumed that the process does not amount to manufacture.

Click here for copy of the Final Order No.25247/2013



 Extension of antidumping duty on import of Acetone from Korea.

 Extension of anti dumping duty on import of Pentaerythritol from China.


 When contraband articles are recovered from baggage of accused, there is no need to serve notice and follow proceedings...Vijender Singh vs Dir. Of Revenue Intelligence 2013-TIOL-342-HC-DEL-NDPS.


 Introduction of e RMS in exports in Customs locations where the Indian Customs EDI Systems (ICES) is operational.

 Classification of elements of filters.

 Monetary limit for Department to file appeal in cases where redemption fine is involved.

 Procedure governing clearance of excisable goods to godown or retail outlet of duty free shops.

 New rates of exchange for foreign currency conversion from 20th June 2013.

 Facility of removal of excisable goods extended to clearance to godown or retail outlet of Duty Free shops.

 Amendment to Notification No.6/2013-ST regarding Focus Market Scheme.

 Notification 93/09-Cus regarding exemption to imports under FMS amended.

 Amendment to Notification No.12/12-Excise.

 Amendment to Notification No.12/12-Cus.

 Notification 96/08-Cus regarding import from specified countries amended.

 Amendments to Notification 36/01-Cus.

 Customs Brokers Licencing Regulations 2013 notified.

circulars notifications


 Export of sugar under Advance Authorization would not require Release Order from Directorate of Sugar.

 Amendment to Para 2.35(b) permitting export of goods to specified countries against Indian Rupees.

 Designation of Officers to exercise powers under Section 13 read with Section 11 of the FT(DR) Act, 1992, against specified monetary limits.

 Appellate authorities notified for appeal from adjudication order passed under Section 13 of FT (DR) Act.

 Export of coconut oil is being permitted through all Land Custom Stations(LCS) on Indo-Nepal, Indo-Bangladesh, Indo-Bhutan and Indo-Pakistan borders in addition to export through all EDI ports.

 Prohibition on import of milk and milk products from China extended to one more year.

 Restriction on re-export of Defective parts/spares imported exclusively for root cause analysis, testing and evaluation purpose by the Companies/firms and Original Equipment Manufacturers.

 New Pre-Shipment Inspection Agency (PSIA) notified under Appendix V of HOP.

vat spot

 Provisions relating to advance ruling in state VAT legislations are not applicable to proceedings for assessment, reassessment, collection and payment under CST Act...Prathista Industries Ltd vs CTO 2013 61 VST 158 AP.

 Assesee paying VAT at higher rate by mistake on purchase of raw materials used for export is entitled to refund of entire tax paid without any reference to schedule rate...Summer India Textile Mills (P) Ltd vs CTO 2013 61 VST 218 (MAD).

 There is no provision under APVAT to adjust left over input credit at the end of a financial year against tax payable for next year...A.R.Com/94/2011 (CTD) Order No. AR 3 dated 05.01.2013.


 Amendment to Rule 6 (6) (i) granting protection from applicability of Rule 6 to developers has retrospective effect...Union of India vs Steel Authority of India 2013 TIOL 384 HC CHATTISGARH CX.

 High Court has jurisdiction to entertain appeal regarding clandestine removal of goods claiming benefit of exemption of Notification No.8/2011…CCE vs Vee Gee Faucets Pvt Ltd 2013 TIOL 445 HC P&H CX.

 Benefit of area based exemption not available for payment of CESS and NCCD...Unicorn Industries vs Union of India 2013 TIOL 438 HC SIKKIM CX.

 Benefit of area based exemption eligible if erstwhile installed capacity has increased 25% by virtue of replacement of existing plant and machinery...CCE vs Rana Castings Ltd 2013 TIOL 459 HC UKHAND CX.

 Circular 967 issued for recovery of tax dues is directory and not mandatory...Givaudan India Pvt Ltd vs Union of India 2013 TIOL 480 HC MAD CX.

 Instructions by DGFT resulting in disadvantage to exporters shall not be effective with respect to consignments exported up to date of such public notice...Amritsar swadeshi Woollen Mills vs Addnl.DGFT 2013 292 ELT 183 Kar.

 Belated filing of Form H  beyond a period of 6 months not to result in treatment of such clearance as made for home consumption...CCE vs Universal Packaging 2013 292 ELT 191 Bom.

 MOT charges not payable for undertaking supervision by Officer in his own Range...CCE vs Sigma Corporation India Pvt Ltd 2013-TIOL-323-HC-DEL-CUS.

 The apparent contradiction in Foreign Trade Policy and Handbook of Procedures not to result in denial of benefit to the importer...Commr. Of Customs vs City Office Equipments 2013-TIOL-359-HC-MAD-CUS.

 Right to cross examine persons whose statements have been relied on cannot be denied to except under circumstances as mentioned under Section 138B of Customs Act 1962...Basudev Garg vs Commr. Of Customs 2013-TIOL-464-HC-DEL-CUS.

 No ISD registration required for LTU to transfer credit to different units... 3M India Ltd vs CCE 2013 TIOL 913 CESTAT BANG.

 No requirement to file ST 3 returns when there is no provision of any service... Suchak Marketing Private Ltd vs CCE 2013 TIOL 963 CESTAT KOL.

 Factory renting their premises for bank, BSNL are taxable under renting... Bhima SSK Ltd vs CCE 2013 TIOL 828 CESTAT MUM.

 Construction of educational institutions are not commercial construction service... Ideal Construction vs CCE 2013 TIOL 806 CESTAT MUM.

 Procurement of goods from SEZ is treated as import and refund of SAD is eligible on proof of subsequent sales...Adinath Trade Link vs Commr. Of Customs 2013-TIOL-912-CESTAT-AHM.

 Technology fee paid to Parent company is includible in assessable value under Rule 9 of Customs Valuation Rules...Skoda Auto India Ltd vs Commr of Customs 2013-TIOL-957-CESTAT-MUM.

before parting...


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