Leaf No : 51
Month : June
Year : 2014
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Greetings from Team SA!

 Union Budget to be presented on 10th July 2014.

 Senior Advocate Shri. Mukul Rohatgi has been appointed as the new Attorney General for India.

 CBDT makes e-filing of certain reports mandatory.

 Wealth Tax - Electronic Return made mandatory.

 
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An assessee, providing services under Commercial and Industrial Construction Service, Works Contract Service and Erection Commissioning and Installation Services had preferred an appeal before the Hon’ble Tribunal against the order of adjudicating authority confirming demand along with interest and penalties imposed on the services mentioned hereinabove.


The Hon’ble Tribunal based on the submissions made during the course of hearing and the facts on record have remanded the case to the adjudicating authority with the following observations:
• The Service Tax demand computed by considering the value of materials supplied by customers under Commercial and Industrial Construction services are not sustainable in view of the principles laid down by the Larger Bench decision of Tribunal in the case of Bhayana Builders P Ltd. Vs CST 2013 (32) STR 49 (Tri.-LB).
• The value of materials supplied by the service recipient under composition scheme of Service Tax under Works Contract Service would arise only after the amendment vide notification 23/09-ST dated 7.7.09 and it would not apply to contract commenced prior to 7.7.2009.This aspect needs to be examined by the adjudicating authority for computing the actual liability by excluding the value of materials supplied by the service recipient under composition scheme of Service Tax in respect of the work commenced prior to 7.7.2009.
• The order confirming the Service Tax liability based on the Profit & Loss account have not provided the classification as well as specified why Service Tax was payable under these categories and also not considered the fact that the value shown in Profit & Loss account was gross value of services provided and the Service Tax was payable on realization basis upto 31.3.2011.

 

CESTAT Order No. A/819/14/CSTB/C-I dt 2.6.14

 

ADD

 Anti-dumping duty imposed on 'homopolymer of vinyl chloride monomer (suspension grade) falling under heading 3904 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from the European Union and Mexico, and imported into India, and shall be effective for a period of five years from the date of publication of this notification in the Official Gazette and shall be paid in Indian currency.

 Anti-dumping duty on imports of homopolymer of vinyl chloride monomer (suspension grade) falling under heading 3904 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in or exported from Taiwan, the People’s Republic of China, Indonesia, Japan, Korea RP, Malaysia, Thailand and the United States of America continued for a further period of five years from 13.06.2014.

 Retrospective extension of Anti-dumping duty on all kinds of plastic processing or injection moulding machines, also known as injection presses, having clamping force not less than 40 tonnes and not more than 1000 tonnes, originating in or exported from China PR continued and shall remain in force upto and inclusive of the 11th day of May, 2015.

 

 CBEC clarifies on Customs Broker Licensing Regulations 2013.

 Tariff Value of Gold, Silver increased.

 Exchange rates for import and exports notified.

 Reduction in duty rates on certain products under Chapter 84, 85 and 87 introduced in February 2014 extended upto 31st December 2014.

 Instructions regarding need to follow judicial discipline in adjudication proceedings.

circulars

 Clarification on FTWZ issue - Amendment to Instruction No.71.

 Online complaint resolution system relating to EDI issues.

 Export of Potatoes is permitted subject to MEP of US$ 450 per MT.

 Tobacco Board has also been authorized to issue Certificate of Origin for Tobacco products under Global System Of Trade Preferences (GSTP) with immediate effect.

 Procedure relating to tracking and tracing of export consignment of pharmaceuticals and drugs prescribed.

 Export of Milk Powder, Wheat, Edible Oils, Pulses and Non Basmati Rice to Bhutan will be exempted from any ban and without any quantitative restrictions.

 Export of Onions for the item description 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$ 300 per MT.

 Conditions for export of Pig Bristles and Hair to EU have been notified.

 Prohibition on import of milk and milk products (including chocolates and chocolate products and candies/ confectionary/ food preparations with milk or milk solids as an ingredient) from China is extended for one more year, i.e., till 23.6.2015 or until further orders, whichever is earlier.

vat

 Levy of Additional Sales Tax on dealer paying tax under regular assessment not applicable to dealer opting to pay tax at compounded rate in lieu of tax under regular assessment - Bhima Jewellery Vs Assistant Commissioner (Assessment), Kerala & Anr - 2014 71 VST 110 (SC).

 Payment of tax with interest after Supreme Court Judgment - Non-payment of tax along with returns being not wilful does not attract penalty - Xerox India Limited Vs State of Karnataka - 2014 71 VST 201 (Kar).

 Issuance of ‘C’ Form under CST Act does not constitute acknowledgement of subsisting liabilities or jural relationship of debtor and creditor giving fresh life of limitation for winding up proceedings - Zion Steel Ltd Vs Subtleweigh Electric (India) P Ltd - 2014 71 VST 312 (Cal).

 Mere pendency of remand for fresh examination does not entitle Department to retain amount already deposited and assessee can raise plea for interest on delayed refund - Surya Synthetics Vs State of Punjab & Anr - 2014 71 VST 335 (P&H).

 Account of other firm cannot be attached for sums due from another firm merely on ground firms having common partner - Urban Heights Vs DCCT (Audit & Recovery), Bangalore & Anr - 2014 71 VST 329 (Kar).

 Materials printed and supplied according to specifications of customers by dealer is Works Contract - State of Tamilnadu Vs R. Nallasamy - 2014 71 VST 342 (Mad).

 

 Non-compete fees and Trademark licence fees are additional considerations and are includible in the assessable value -Godrej Consumer Products Ltd vs CCE, Indore - 2014 - TIOL - 878 - CESTAT - MUM.

 Requirement of affixing MRP is only meant for goods required to be sold in India and it has nothing to do with the goods exported - Modi Bakers vs CCE - 2014 - TIOL - 1018 - CESTAT - MUM.

 By failing to insure the imported materials which were deposited in the warehouse for that part of the value representing Customs duty on the imported goods, when it’s a condition of the licence and warehousing bond there is a clear breach of Sections 58 & 65 of the Customs Act, 1962 - Sandoz Pvt Ltd vs CCE - 2014 - TIOL - 933 - CESTAT - MUM.

 Job worker is a 'manufacturer' and hence the appellant factory cannot be treated as a service provider rendering exempted/non-taxable service for the manufacturing activity – Credit taken on input services for job work activity allowed - M/s JBF Industries Vs CCE, VAPI -2014 - TIOL - 972 - CESTAT - AHM.

 When the case is settled by the Settlement Commission the allegation of suppression of facts remains inconclusive and hence the assessee are entitled to take CENVAT credit of the duty paid - CCE, Pune I vs Tetra Pack (India) Pvt Ltd - 2014 - TIOL - 1096 - CESTAT - MUM. 

 Mere reliance on note books/ diaries or statements cannot be considered as enough evidence for clandestine manufacture and clearances - M/s Mahesh Silk Mills, Surat & M/s Chandan Prints vs CCE, Mumbai - 2014 - TIOL - 1032 - CESTAT - AHM.

 Assessee having failed to remit any amounts as tax in the relevant years, no adjustments can be made in the penalty levied, on the basis of amounts paid subsequent to the relevant years - Sony Rebeiro vs Commissioner (Appeals) - 2014 - TIOL - 951 - HC - KERALA - ST.

 Hotel having travel desk in establishment for facilitating rent a cab service through a third party service provider cannot be said to be provider of Rent a cab service - ITC Sonar vs CST - 2014 - TIOL - 1127 - CESTAT - KOL.

 Penalty can be waived under Section 80 on ground of revenue neutrality - Fouress Engineering PVt LTd vs CST - 2014 - TIOL - 1126 - CESTAT - BANG.

 Execution of assigned work using own manpower is not taxable under Manpower supply service - Shri.Hemant vs Deshmukh vs CCE - 2014 - TIOL - 1052 - CESTAT - MUM.

 Amounts collected by dealers towards registration of vehicle is not taxable under ‘Business support Service’ - My Car Pune Pvt LTd vs CCE - 2014 - TIOL - 1100 - CESTAT - MUM.

 Date of raising invoice for export and not date of receipt of payment is the relevant date for claiming refund under export of service - Affinity Express India Pvt Ltd vs CCE - 2014 - TIOL - 1035 - CESTAT - MUM.

 Stay granted cannot be extended beyond 365 days as per Section 35C(2A) of the Central Excise Act - M/s Salasar Steel and Power Limited vs CCE, Raipur.

 Imported coal satisfying Chapter Note 2 of Chapter 27 are to be classified as "bituminous coal" and not eligible for the benefit of Notification 12/2012 as "steam coal" - M/s Coastal Energy Pvt. Ltd & Ors vs CCE, Guntur. 

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