Leaf No : 48
Month : March
Year : 2014
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SA Times completes 4 years!

 India to vote for its 16th Lok Sabha between April 7 to May 12. Results to be announced on May 16th.

 The RBI grants an additional nine months for the public to exchange currency notes printed before 2005 and has set a deadline of January 1, 2015.

 IT rejects Vodafone claim saying that the Bilateral Investment Promotion and Protection Agreement (BIPA) between India and the Netherlands does not cover taxation issues.

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An assessee has been engaged in manufacture of CR sheets and was also into conversion of CR coils into sheets/skelp on the CR coils received from TISCO which is cleared on payment of duty. Apart from this activity, the assessee was also undertaking job work for Hyundai Motors India Ltd. claiming the benefit of Notification 214/86-CE as amended.
Out of the a lot received, a part was sold as scrap on payment of duty on scrap value. However, based on the observation of the department cenvat credit availed on CR coils was also subsequently reversed. Further the assessee was also availing input credit on inputs used in the jobwork which were cleared without payment of duty claiming exemption under Notfn.214/86. 
The Adjudicating authority as well as the Appellate authority has confirmed the demand as alleged in the show cause notice along with recovery of interest as well as imposed penalty under Section 11AC of the Act. Based on an appeal by the assessee, the Hon’ble Tribunal allowed the assessee's appeal on both these aspects by observing that these transactions cannot be considered to be clearance of exempted goods and relied upon the decision of the Larger Bench Tribunal decision in the case of Sterlite Industries Ltd. Vs CCE, Pune - {2005 (183) ELT 353} and also set aside the penalty imposed and the department preferred an appeal before the Hon’ble High Court.
The Hon’ble High Court after taking into consideration the facts of the case and the findings of the Tribunal concluded that the Tribunal has perfectly justified the deletion of penalty imposed under Section 11AC of the Act and dismissed the department appeal making the following observations:

• Rule 3(4) of the CCR 2002 came into effect on 1.3.2003 and the fact that the assessee were ignorant about such an amendment for some period of time was acceptable.
• Department had not taken any action immediately by issuing a show cause notice within the period of limitation.
• There was no material evidence in the allegation to establish that the conduct of the assessee in reversing the credit on the basis of transaction value of the inputs, though the amendment came into effect from 1.3.2003 was with an intention to evade payment of duty.

Civil Miscellaneous Appeal No.779 of 2010 dt 29.1.10



 ADD on imports of Acetone, originating in, or exported from, EU, South Africa, Singapore and USA extended for a further period of five years.

 Anti-dumping duty imposed on imports of Meta Phenylene Diamine’, originating in, or exported from, the People’s Republic of China, imposed for a period of five years.

 ADD on ‘Plain Medium Density Fibre Board of thickness 6 mm and above’, originating in, or exported from the People's Republic of China, Malaysia, Thailand and Sri Lanka extended for a further period of one year i.e upto and inclusive of the 26th day of February, 2015.

 ADD imposed on imports of 'Red Phosphorous, excluding red phosphorous used in electronic applications', originating in, or exported from, the People’s Republic of China for a period of five years.

 Provisional ADD imposed on imports of 'Sodium Nitrate', originating in, or exported from, the European Union, the People’s Republic of China, Ukraine and Korea RP for a period of six months.


  Customs Baggage Declaration Regulations 2013 – Circular regarding implementation thereof.

 Registration mandatory for importers issuing invoices on which CENVAT Credit can be taken.

  Registered Importer - CENVAT Credit Rules Amended.

 Registration mandatory for importers - Changes in Central Excise Registration Application Form.

 New Quarterly Return prescribed.

  Import of Gold by ‘eligible passengers’ notified.

  Tariff Value of Gold and Silver reduced.

   New Exchange Rates notified.

   Procedures notified for grant of refund under Rule 5B of CENVAT Credit Rules, 2004.

  Notifications 17/2013-C.E.(N.T.)  & 18/2013 - C.E (N.T) rescinded.

 Central Excise (Second Amendment) Rules, 2014 - Rule 12 CCC substituted & CENVAT Credit (Fifth Amendment) Rules, 2014 - Rule 12 AAA substituted.

   Chief Commissioner of Central Excise to order withdrawal of facilities or impose the restrictions as specified - Notification No 5/2012 - C.E (N.T) superceded.

 Notification No.6/2012 - C.E (N.T) rescinded.

circulars notifications

  Applicability of “Actual User Condition” for import of Maize (Corn) under TRQ.

  Requirement of MEP (Minimum Export Price) on export of onions stands removed.

   Export of onion has been made free.

  Appropriate body to certify quality of steel has been modified.

   Revision in Appendix 37 A and 37 D of Handbook of Procedure – Volume I.

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

  Corrigendum in Public Notice number 53 dated 27.02.2014 and amendment in Public Notice number 52 dated 25.02.2014.

  Online system for EODC / Redemption for AA / DFIA is being introduced with effect from 1.6.2014. This will reduce processing time and transaction cost.

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 Specific provision granting exemption to cement industrial units by classifying them into small, medium or large scale based on scale of investment prevails over general provision granting exemption to industries based on their status as pioneer, prestigious and very prestigious - CTO, Rajasthan Vs Binani Cements Ltd & Anr - 2014 68 VST 459 (SC).

 Collection of tax and penalty or compounding fee by coercion without assessment is not permissible. The Department to refund to the dealer the amounts so collected - Pawan Agro Industries Vs Deputy Commercial Tax Officer-1, Anantapur Dist - 2014 68 VST 300 (AP HC).

 Deduction from total turnover of expenses relating to own machinery and equipments deployed in execution of works contract and establishment expenditure of HO and RO relating to supply of labour and services in connection with execution of contract, allowable - Larsen & Toubro Ltd., Vs State of Karnataka & Ors - 2014 68 VST 353 (Kar).

 Delay in filing Appeal cannot be condoned mechanically merely because Government or a wing of Government, a party before Court - State of Gujarat Vs Karnataka Veneers Pvt Ltd - 2014 68 VST 367 (Guj).

 Rejection of Application for clarification/advance ruling holding goods fell under different category without giving applicant opportunity of personal hearing amounts to violation of principles of natural justice - Supreme Industries Ltd Vs Authority for clarification and Advance Ruling, Chepauk, Chennai & Anr - 2014 68 VST 494 (Mad).


 Sales tax collected and retained by assessee under incentive scheme is includible in the 'transaction value' for payment of excise duty after 01.07.2000 - CCE vs Super Synotex India Ltd - 2014-TIOL-19-SC-CX.

 When assessee is eligible for refund,interest has to be paid from the date immediately after three months from the date of receipt of the application till the refund of such duty - CCE vs Sulaki Chemicals Pvt Ltd - 2014-TIOL-363-HC-MUM-CX.

 When credit is availed wrongly, the same will has to be reversed with applicable interest, but no penalty is imposable in absence of any intention to evade duty - CCE vs Sundaram Fastners - 2014-TIOL-201-HC-MAD-CX.

 Dues of assessee cannot be recovered from properties of bonafide purchaser - Himgiri Ispat Pvt LTd vs CCE - 2014-TIOL-320-HC-UKHAND-CX.

 There is no delegation of power to DGFT for framing Duty Drawback Rules in view of express prohibition under Section 6 (3) of Act - Alstom India Ltd vs Union of India - 2014-TIOL-223-HC-AHM-EXIM.

 When goods imported and re-exported are clearly identifiable drawback can be claimed under Section 74 of Customs Act - Groz Beckert Asia Pvt Ltd vs Union of India - 2014-TIOL-385-HC-DEL-CUS.

 Refund of anti-dumping duty is governed by provisions of Section 9A and not Section 27 of the Customs Act - CCE vs Chandra Prabhu Interntaional Ltd - 2014-TIOL-362-HC-DEL-CUS.

 Training in areas of Exim management, retail management and merchandising is entitled for exemption as vocational training course during the period 01.07.03 to September 2008 - CST vs Ashu Exports Pvt Ltd - 2014-TIOL-379-HC-DEL-ST.

 Financial difficulty is not a subordinate criteria but an important criteria while ordering pre deposit - Indian School of Business vs Commr. of Customs & Central Excise - 2014-TIOL-374-HC-AP-ST.

 High court grants bail for offences punishable under Section 89 (1) (d) of Fin.Act,1994 on the ground that the offence was bailable when it was committed - Sudip Das vs Union of India - 2014-TIOL-314-HC-KOL-ST.

 Nonpayment of tax already collected is a continuing offence and hence nonbailable even in respect of such offence committed before amendment to Section 89 and is continuing after amendment - Kandra Ramesh Babu Naidu vs Supdt. of Service tax - 2014-TIOL-307-HC-MUM-ST.

 Ratio of Kumar Cotton Mills providing for extension of stay till disposal of appeal would equally apply for period after insertion of third proviso to sub section (2A) of Section 35C - PCS Technology Ltd vs CCE - 2014-TIOL-308-CESTAT-MAD.

 Refund under Rule 5 of Cenvat Rules available for export of exempted goods - Jolly Board Ltd vs CCE - 2014-TIOL-316-CESTAT-MUM.

 Services made by overseas branches through overseas sub-contractors to clients abroad not taxable even though payment for had been made through transfer of funds from India - Infosys Ltd vs CST - 2014-TIOL-409-CESTAT-BANG.

 Provisions of Section 73A not attracted for amounts collected from customers and kept in escrow account - Silverline Estates vs CST - 2014-TIOL-458-CESTAT-BANG.

 Exempted export service is to be included in total turnover and exported turnover of formula for computation of refund under Rule 5 of Cenvat Rules - Quintiles Technologies India Pvt LTd vs CST - 2014-TIOL-444-CESTAT-AHM.

 Appeal to Tribunal is maintainable against an order of Commissioner (Appeals) dismissing an appeal for failure of pre-deposit - Girnar Transformers Private Ltd vs CCE - 2014-TIOL-305-CESTAT-DEL.

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