Leaf No : 24
Month : March
Year : 2012
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editor’s desk

Greetings from Team SA!

Pharmaceutical Companies are always in news – for both right and wrong reasons. During the second week of March, 2012 , mass and media attention fell on the Pharma companies once again consequent to a bold and landmark Order of one of the most zealous, Controller General of Patents, Shri. P.H. Kurian, who granted compulsory license to Indian generic drug manufacturer –NATCO for manufacture and sale of drug ‘sorafenib tosylate’ which is used for treatment at advanced stages of kidney and liver cancer. The drug was so far sold under brand name ‘Nexavar’ by Pharma giant BAYER who holds patent for same worldwide. BAYER had obtained a patent for sale of Nexavar in India in 2008. For the Indian market one month dosage of drug is priced by BAYER at a whopping sum of Rs. 2,80,428/-. NATCO had developed process to manufacture same product and obtained a license from drug controller to sell the product in Indian market at Rs.8800/- instead of Rs. 2,80,428/- by BAYER.

NATCO on manufacturing the drug had initially approached BAYER for a voluntary license which was denied to them. NATCO therefore as last resort approached Indian Patent Office (IPO) through an application under Section 84 which provides for issue of ‘compulsory license’. ‘Compulsory license’ under Patent Law is an involuntary contract between a willing buyer and an unwilling seller. Compulsory licensing is when government allows someone else to produce patented product or process without consent of existing patentee. As per Section 84 compulsory licenses can be given only on fulfilment of certain conditions as non availability of drug, exorbitant pricing etc...

... read more

sa corner

 Post Budget articles 

1. Dare to Attempt

2. Distribution  by ISD

3. Not Always Retrograde

4. POT needs an amendment

5. Front and back on CCR

6. After Negative List

7. Mackenna's Gold


 "sa times" completes         2 years!

genie in aladdin’s lamp

# Apex Court holds that the duty paid by mistake, for clearance of exempted goods, does not make the goods liable to duty... Bonanzo Engg. & Chemical Private Ltd vs. CCE 2012 277 ELT 145 S.C.

# Apex Court holds beneficial exemptions having their purpose as encouragement or promotion of certain activities should be liberally interpreted... CC, Mumbai vs. Konkan Synthetic Fibres 2012 TIOL 29 SC CUS.

# Hon’ble Highcourt of Karnataka holds predeposit is a “RULE” and waiver is only an “EXCEPTION”... M/s.Hindustan Petroleum Corporation Limited vs. Commr. Of Customs 2012 TIOL 155 HC KAR CUS.

# AP High Court holds that the services which are crucial for maintaining staff colony would qualify as “input services” and would be eligible for credit... Commr. Of Customs & Excise vs. ITC Limited 2012-TIOL-199-HC-AP-ST

# Bank or financial institution jointly importing goods with assessee is liable to pay duty as importer in cases of undervaluation... Sundaram Finance Limited vs. Commr. Of Customs 2012 TIOL 360 CESTAT MAD.

# Notification No. 21/02- Cus is violated when machinery imported for construction of road in UP is diverted and used in projects in other States, where assessee is subcontractor... Apco Construction Private Limited vs. Commr. Of Customs 2012 TIOL 267 CESTAT MUM

# There is no time limit under Rule 16 of Central Excise Rules, 2002 to avail Cenvat on returned goods... Arihant Domestic Appliance Limited vs. CCE 2012 TIOL 322 CESTAT MUM.

# There is nothing in Notification 01/06-ST dated 01.03.06 barring an assessee from opting for abatement on a case to case basis... Bharat Heavy Electricals Limited vs. CCE 2012 TIOL 348 CESTAT MUM.

# Old records of companies does not have a saleable value and hence does not qualify to be ‘goods’ so as to bring in activity of storage and retrieval of old records of Banks and Corporates under ‘storage or warehousing service’... CST vs. PN Writer and Co. 2012 TIOL 343 CESTAT MUM.

# Receipt of incentive for early payment not subject to service tax... Tradex Polymers Private Limited vs. CST 2012-TIOL-315-CESTAT-AHM

before parting ...         - jk
"dirty picture"
latest news

 Justice Ajit Bharihoke appointed as new president of CESTAT.

 Govt withdraws ban on export of cotton.

 SC rules rules that under the Advocates Act and Bar Council Rules, lawyers who have become MPs and MLAs can continue their practice.


# Handbook of Procedures amended with provisions relating to Pre-Shipment Inspection Agencies (PSIA) for Import of Metallic Waste and Scrap... Click here for copy of the Public Notice.

# Exports to Iran qualify for export benefits even when proceeds received in Indian Rupees... Click here for copy of the Notification.

# Addition of paragraph 8.7 in FTP making supplies to non mega power project ineligible for Deemed Export benefits... Click here for copy of the Notification.


# Tamil Nadu Budget 2012-13- Amendments in VAT... Click here for copy of the Budget Changes.

# Compounding facility under Section 8 ( c ) (i) of Kerala Value added Tax Act 2003 is not available to bakery products served from premises of a bakery... Click here for copy of the Circular.

# Supreme Court holds that the discount cannot be denied solely on ground that the same are not shown in the sale invoice... IFB Industries Limited vs. State of Kerala 2012 49 VST 1 SC.

# Bombay High Court holds that a movement of goods from Maharashtra to Mumbai High (Exclusive Economic Zone) does not constitute inter-state sale or export sale... CST vs. Pure Helium (I) Ltd (Bom) 2012 49 VST 14 Bom.

# Allahabad High Court upholds the validity of UP Entry Tax Act 2007... ITC Limited vs. State of UP 2012 48 VST 281 All.


circulars & notifications


# Clarification on exports to Nepal... Click here for  copy of the Circular.

# Clarification on applicability of restriction on utilisation of credit to cases under Section 11A of Central Excise Act, 1944... Click here for copy of the Circular.

# Clarification on exemption to mega power projects... Click here for copy of the Circular.

# Clarification on excise duty on branded precious metal jewellery... Click here for copy of the Circular.

# Clarification on applicability of Sl.No. 04 of Notification 4/2006-CE dated 1.3.2006 only to imported Ores and not to imported Concentrates... Click here for copy of the Circular.

# Extension of time upto 30th June 2012, for using re-credited 4% CVD (SAD) amount in DEPB... Click here for copy of the Circular.

# Rule 12 CCC of Central Excise Rules amended to curb misuse of Cenvat credit rules... Click here for copy of the Notification.

# Corrigendum to Budget Notifications 09/2012, 10/2012, 11/2012, 16/2012 and 18/2012- CE dated 17.03.2012... Click here for copy of the relevant Notifications.

# Exemption on goods imported for use in, or supply to, a unit for manufacture of paper or paperboard other than newsprint... Click here for copy of the Notification.

# Tariff value of silver and gold import amended... Click here for copy of the Notifications.

# Amendment to Rules relating to publication of Daily list of import and Exports notified... Click here for copy of the Notification.

# Notification 64/94-Cus amended... Click here for copy of the Notification.

# Corrigendum to No. 12/2012-Customs, and 21/2012 both dated the 17 th March, 2012... Click here for copy of the  Notifications.




# CBEC clarifies retreading of tyres is covered under 'Management Maintenance & Repair Service... Click here for copy of the Circular.

# Clarification on applicability of POT Rules amendments to specified services... Click here for copy of the Circular.


The views expressed and the information provided in this newsletter are of general nature and is not intended to address the circumstances of any particular individual or entity. Further the above content should neither be regarded as comprehensive nor sufficient for making decisions. Although we endeavor to provide accurate and timely information, there is no assurance or guarantee in this regard. No one should act on the information or views provided in this publication without appropriate professional advice. It should be noted that no assurance is given for any loss arising from any actions taken or to be taken or not taken by anyone based on this publication.

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