Leaf No: 72 Month : Mar - Apr Year : 2016

Greetings from Team SA!

 Union Cabinet approves recommendations of 14th Finance Commission on fiscal deficit targets.

 Government notifies Plastic Waste Management Rules, 2016.

 The Income Tax Department has introduced a new facility for tax payers called the “E-filing Vault” ensuring higher degree of security for logging in their E-filing account.

 Packaged Commodities Rules have been amended and it is now required to mandatorily display “name of manufacturer/packager/ importer, net quantity of product, manufacturing date, retail sale price and consumer care contacts” in a panel of 40% of the area of the packet in readable font size.

 The Ministry of Information & Broadcasting in compliance with the Supreme Court directions has constituted a three member committee to address the issues related to Content Regulation in Government Advertising.

 Central Board of Direct Taxes announced the release of electronic filing of ITRs 1 and 4S on its website.

 Mr. Piyush Goyal, Minister of State (IC) for Power, Coal and New & Renewable Energy launched “DEEP (Discovery of Efficient Electricity Price) e-Bidding & e-Reverse Auction portal" for procurement of short term power by DISCOMs.

 India’s gross fiscal deficit for 2015-2016 could be 6.9 per cent of GDP, wider than the budget estimate of 6.3 per cent, according to an analysis.

 Government is considering several measures, such as offering incentives for small exporters and a package to revive Special Economic Zones (SEZs), to help reverse the trend of a prolonged contraction in merchandise exports since December 2014.

 Diamond Dollar Account (DDA) – Reporting Mechanism.

 Import of Rough, Cut and Polished Diamonds.

 Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016.

 Export of Betel Leaves to European Union is subject to registration with APEDA.

 Introduction of definition of e-commerce in Foreign Trade Policy (2015-2020).

 SIONs of the export products falling under the Chemicals and Allied Products Group are being notified.

 Error correction in Focus Product Scheme (FPS) for export of “Other - Brakes and Servo Brakes and Part thereof” at S. No. 608 of Appendix 37D as notified vide Public Notice 3 dated 05.06.2012 of Foreign Trade Policy 2009 - 14.

 Additional quantity of 723 MTs of raw cane sugar to be exported to USA under TRQ upto 30.9.2016 has been notified.

 Appendix 2-B-“List of Agencies Authorized to Issue Certificate of Origin (COO) (Preferential)” has been revised to include Textile Committee for issuing COO under 11 Free / Preferential Trade Agreements.

 In case of blended fabric, +/- 3% variation in count shall be allowed and to that extent, amendment in norms (SION/Ad-hoc) against Advance Authorisation / Duty Free Import Authorisation will not be required.

 Nine Pre-Shipment Inspection Agencies have been approved under the heading “New PSIAs recognised in terms of FTP 2015-20” in Appendix 2G.

 Reconstitution of Board of Trade (BOT).

 Clarifications on Trade Facilitation Measures.

 Eligibility of Liquid Glucose under Focus Market Scheme of Foreign Trade Policy (FTP), 2009-14.

 Definitive anti-dumping duty imposed on imports of all kinds of plastic processing machines or injection moulding machines, also known as injection presses, having clamping force equal to or more than 40 tonnes, and equal to or less than 3200 tonnes, used for processing or moulding of plastic materials originating in, or exported from Chinese Taipei, Philippines, Malaysia or Vietnam for a period of five years.

 Definitive anti-dumping duty imposed on 2-Ethyl Hexanol, originating in, or exported from the European Union, Indonesia, Korea RP, Malaysia, Chinese Taipei and USA for a period of five years.

 Definitive anti-dumping duty imposed on imports of Tyre Curing Presses also known as Tyre Vulcanisers or Rubber Processing Machineries for tyres, excluding Six Day Light Curing Press for curing bi-cycle tyres originating in, or exported from China PR for a period of five years.

 Provisional anti-dumping duty imposed on Glazed/Unglazed Porcelain/Vitrified tiles in polished or unpolished finish with less than 3% water absorption, originating in, or exported from the China PR for a period not exceeding six months.

 Definitive anti-dumping duty imposed on Normal Butanol or N - Butyl Alcohol, originating in, or exported from the EU, Malaysia, Singapore, South Africa and USA, for a period of 5 years.

 Safeguard duty imposed on imports of Hot-rolled flat products of non-alloy and other alloy Steel in coils of a width of 600 mm or more for a period of two years and six months.

 Imposition of Central Excise duty on jewellery - regarding constitution of sub-committee of High Level Committee.

 Classification of Micronutrients, Multi-micronutrients, Plant Growth Regulators and Fertilizers.

 Adjudication of Show cause Notices on the basis of CERA / CRA objection.

 Clarification regarding re-refined used or waste oil.

 Clarification on issues regarding levy of Service Tax on the services provided by Government or a local authority to business entities.

 Implementing Integrated Declaration under the Indian Customs Single Window.

 Clarification regarding other persons (co-noticees) used in sub-section (2) & sub-section (6) of the Section 28 of the Customs Act, 1962.

 Prevention of use of non-genuine transferable duty credit scrips or DFIA (duty free import authorizations).

 Review under Section 129A (2) or Section 129D of the Customs Act, 1962, Section 35B (2) / Section 35E of the Central Excise Act, 1944 and Section 86 (2A) or Section 86 (2) of Finance Act,1994.

 Implementation of 'Integrated Declaration'.

 Clarification on availability of benefit under Notification No. 151/94-Cus.

 Instructions for adjudicating / appellate authorities based on the CESTAT decision in the  case of Commissioner of Customs (Import) Vs Do Best Infoway.

 Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable and Other Goods) Rules, 2016 amended.

 Amendment in CENVAT Credit Rules, 2004.

 Rule 4 (7) & Rule 6 of CENVAT Credit Rules, 2004 amended.

 Point of Taxation (Second Amendment) Rules, 2016.

 Notification No. 25/2012- Service Tax dated 20.06.2012 amended.

 Rule 6 (2) of Service Tax (Determination of Value) Rules, 2006 amended.

 Rule 7 of Point of Taxation Rules, 2011.

 Notification No. 12/2012-Customs, dated the 17th March, 2012 amended .

 Exemption from customs duty on cut/polished diamonds imported for testing/certification.

 Superseding notification no.136/90-Cus dated 20.3.90 providing effective rates of duty on goods imported as baggage.

 Superseding notification no.137/90-Cus dated 20.3.90 providing effective rates of duty on specified goods imported as baggage.

 Corrigendum to Notfn.26/2016-Cus. dated 31.3.2016.

 Notification No. 69/2011-Customs, dated 29th July, 2011 amended.

 Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver.

 Notification No. 32/2016-Cus (N.T.) dated 01.03.2016 [Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016] amended.

 Rate of exchange of conversion of the foreign currency with effect from 18th March, 2016.

 Kakrawah Siddharthnagar District, Uttar Pradesh notified as Land Customs Station under Section 7 of Customs Act, 1962.

 Baggage Rules, 2016 amended.

 Corrigendum to amendment to Baggage Rules, 2016.

 Bill of Entry (Electronic Declaration) (Amendment) Regulation, 2016.

 Customs (Fees for Rendering Services by Customs Officers) Amendment Regulations, 2016.

 Where dealer fails to produce documents immediately, it cannot be presumed to be an avoidance or evasion nor concealing the tax liability - Shree Ashtvinayak Gems & Stone Pvt Ltd V Commissioner, Trade & Taxes Delhi - 2016 89 VST 33 (Delhi).

 Decision of higher forum regarding classification of goods attaining finality and assessments made for two decades –Assessing Officer bound by such decision and cannot take a different view. Nestle India Limited V Dy Commissioner of Commercial Tax - 2016 89 VST 56 (Guj).

 Inter-state stock transfer effected from warehouse located in SEZ is not exempt and liable to purchase tax - Nokia India Sales Private Ltd V Assistant Commissioner (CT) Sriperumpudur Assessment circle, Chennai & Ors - 2016 89 VST 163 (Mad).

 Section 19 (11) of TNVAT Act is a valid piece of legislation and cannot be struck down either as unreasonable or discriminatory or violative of Articles of 265 and 360A of the Constitution - T.Gurunathan & Bros V State of Tamil Nadu & Ors - 2016 89 VST 406 (Mad).

 When CTO passes an order even before the expiry of 15 days, which is time granted in the notice it is violation of principles of natural justice - Lab India Instruments (P) Ltd V The CTO, Mylapore Assessment Circle - 2016 TIOL 492 HC MAD.

 Tribunal cannot classify product under a totally new heading which not relied on by Department or assessee in adjudication - Precision Rubber Industries Pvt Ltd V CCE - 2016-TIOL-28-SC-CX.

 Cost of bullet proofing done on Jeeps by job worker after clearance from factory need not be added to transaction value of manufacturer - CCE V Mahindra and Mahindra Ltd - 2016-TIOL-29-SC-CX.

 Issue whether Section 4 of Central Excise Act as substituted from 01.07.2000 and definition of transaction value in clause (d) of Sub section (3) of Section 4 are subject to Section 3 has been referred to larger bench - CCE V Grasim Industries - 2016-TIOL-38-SC-CX-LB.

 Conflict between a statutory provision and standing order is to be resolved in favour of statute on first principles of interpretation - UOI V Mohanlal - 2016 333 ELT 209 (S.C.)

 Adjudication proceedings and criminal prosecution can be launched simultaneously. In case of exoneration, however, on merits where the allegation is found to be not sustainable at all and the person held innocent, criminal prosecution on the same set of facts and circumstances cannot be allowed to continue the underlying principle being the higher standard of proof in criminal cases. - Air Customs Officer, IGI, New Delhi V Pramod Kumar Dhamija – 2016 333 E.L.T. 204 S.C

 There is nothing to prevent using medicated soap for toilet purposes but it is not what the soap is intended for. Clearly, the product in dispute is classifiable under CET Heading 3401.11 which is the more appropriate CET Heading rather than the residuary CET Heading 3401.19 - V V F Ltd V CCE - 2016 TIOL 27 SC CX.

 Service tax on senior advocates stayed - Delhi Highcourt Bar Association V UOI - TS 131 HC 2016 DEL ST.

 There is no provision under the Customs Act, 1962 under which Customs authorities can withhold a passport. Passports are governed by the Passports Act, 1967. – Shahid Ali V Commr. of Cus., Airport & Administration - 2016 334 E.L.T. 327 Cal.

 Merely filing of appeal before High Court against Tribunal order is no ground for denying refund arising consequent to such order by transferring the case to call book, unless stay is obtained from High Court against the Tribunal order. – Larsen and Toubro Ltd. V UOI – 2016 334 E.L.T. 268 GUJ.

 Where a show cause notice is issued either without jurisdiction or in an abuse of process of law, the writ Court can interfere even at the stage of issuance of show cause notice. – Madura Coats Ltd. Vs DCCE – 2016 TIOL 690 HC MAD CX.

 Payment of Service Tax under Works Contract Service on full value by availing input credit held to be permissible as there was no revenue loss. – Commissioner of Central Excise, Customs & service Tax, Vapi V M/s S V Jiwani – 2016 TIOL 503 HC MUM ST.

 When assessee has paid entire service tax as per their classification, reclassification of same service under different category does not warrant pre-deposit of 7.5% - Bharat Hotels Ltd V CCE - 2016 41 STR 791 (Del.).

 Non payment of 50% of tax declared under VCES before due date makes assessee ineligible to avail the scheme and since scheme has fixed time frame, High Court does not have power to extend the time - CST Vs. Parijat Vyappar Pvt Ltd - 2016 41 STR 809 (Cal.).

 When assessee has made payment of service tax under VCES through cheque, date of presentation of cheque is to be deemed as date on which service tax has been paid subject to realisation - Disha Securities and Manpower Pvt Ltd V Asst. Commr of Service Tax 2016-TIOL-714-HC-DEL-ST714-HC-DEL-ST FREE.

 Non registration as Input Service Distributor prior to availment and distribution of credit is a curable procedural irregularity - CCE Vs. Dashion Ltd 2016 41 STR 884 (Guj.)

 In absence of any specific provisions under the Customs Act, the bank account of the defaulter cannot be frozen or attached - Mineral Metal Centre V DGCEI - 2016 333 ELT 267 (Cal.).

 When refund claim is not in respect of duty but amount paid in excess of duty, then the provisions of Section 27 of the Customs Act, regarding time limit of one year is not applicable - Consolidated Metal Finishing Pvt Ltd V Commr of Customs - 2016 TIOL 715 HC MAD CUS.

 Writ Petition is not maintainable for recovery of demurrage from importer by Container Freight Station - APM Terminals India Pvt Ltd V Asst Commr of Customs - 2016 TIOL 693 HC MAD CUS.

 Interest is payable on delayed refund of SAD as provisions of Section 3 (8) of Customs Tariff Act read with Sections 27 and 27A of Customs Act would apply to refund of SAD - Principal Commr. Of Customs Vs. Riso India PVt Ltd.

 High Court issues strictures to Department to follow binding precedents - Larsen and Toubro Ltd V UOi - TS-138-HC-2016 BOM-EXC.

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