Leaf No: 74 Month : May - Jun Year : 2016

Greetings from Team SA!

  GST Model Law released.

 Finance Bill 2016 enacted.

 Portal launched to promote Net Zero Energy Buildings.

 CBDT seeks inputs from taxpayers on GAAR.

 CBDT issues fresh clarification on FATCA & CRS.

 Government frames New Print Media Advertisement policy.

 The Reserve Bank of India (RBI) has told commercial banks to ‘immediately’ put in place a cyber security policy, duly approved by the board, in the wake of increasing cyber attacks in the financial system.

 Government plans to set up 250 small agro-processing clusters at an estimated cost of over Rs.5,000 crore.

 Measures taken to simplify tax administration by CBEC.

 Relaxation of Know Your Customer (KYC) norms.

 Air Public Notice No.14/2016 dtd.01.06.2016 regarding Compliance of Standard UQC.

 Provisional ADD on Seamless tubes, pipes & hollow profiles of iron, alloy or non-alloy steel (other than cast iron and stainless steel), whether hot finished / cold drawn / cold rolled of an external diameter not exceeding 355.6 mm or 14’OD, originating in or exported from China PR, for a period not exceeding 6 months.

 Notification No. 40/2012 - Customs (ADD) dated 30th August, 2012 amended, so as to amend, for the purposes of levy of Anti-Dumping Duty on imports of 'Metronidazole' originating in, or exported from China PR, the name of the Exporter from 'M/s Hubei Hongyuan Pharmaceutical Co., Ltd' to 'M/s Hubei Hongyuan Pharmaceutical Technology Co., Ltd'.

 Anti-dumping duty imposed on Coumarin of all types [Tariff Item 2932 20 10], originating in or exported from Peoples Republic of China, for a period of 5 years.

 Anti-dumping duty imposed on 'Dichloromethane (Methylene Chloride)' of all types [tariff item 2903 12 00], originating in or exported from People's Republic of China or Russia, for a period of five years (unless revoked, superseded or amended earlier), from the date of imposition of the provisional anti-dumping duty i.e. from the 08th of December, 2015.

 Definitive anti-dumping duty imposed on "Methyl Acetoacetate", originating in or exported from USA or China PR, for a period of five years.

 Definitive anti-dumping duty imposed on Polytetrafluoroethylene (PTFE)”[Tariff Item 3904 61 00], originating in or exported from Russia, for a period of five years.

 Seeks to finalize provisional assessments of all imports of Vitrified/Porcelain tiles, originating in or exported from China PR which have been subjected to provisional assessment pursuant to the Notification No. 35/2012-Customs (ADD), dated the 10th July, 2012.

 Notification No. 35/2012-Customs (ADD), dated the 10th July, 2012, providing provisional assessment to imports of vitrified and porcelain tiles, originating in or exported from China PR by certain parties, pending the outcome of New Shipper Review, rescinded.

 Anti-dumping duty imposed on imports of Pentaerythritol, originating in, or exported from the People's Republic of China, extended for a period of one year.

 Export of Rice Bran oil in bulk has been exempted from the prohibition on export of edible oils.

 Actual users holding registration certificate from RNI can import item under Exim Code 4801 by filing bill of entry for home consumption or warehousing, at the time of import of goods.

 The procedure for declaration of intent in Paragraph 3.14(a) of the Handbook of Procedures 2015-20 for EDI is simplified.

 Import of Textiles and Textile Articles from Australia, Canada, Japan and South Korea exempted from testing of samples for presence of Azo Dyes and added in Appendix-2X under FTP 2015 - 2020.

 The office of the JDGFT, Rajkot and Deputy DGFT, Raipur are included in Para 8.01 under the Western Zone where Committee on Quality Complaint & Trade Dispute has been constituted.

 Indore SEZ  is included at Appendix - IA & Appendix - 6J of Appendices and Aayat Niryat Forms of FTP 2015 - 2020.

 The procedure for filing of application under MEIS Scheme for EDI Shipping Bills is simplified. Shipments from different EDI ports will not require separate applications. Accordingly the ANF 3A has been modified as per Annexure to this Public Notice.

 Amendments have been made to the Appendix-6H & ANF 7A of the Appendices and Aayat Niryat Forms of FTP 2015-2020.

 Ten Pre-Shipment inspection Agencies are notified as PSIAs in terms of Para 2.55 (d) of HBP 2015-20 in Appendix 2G.

 M/s The All India Plastic Manufacturers’ Association (AIPMA), Export Inspection Council, S.O. Nellore and EEPC India, Kolkatta are enlisted under Appendix 2E of FTP, 2015-2020 for issuing Certificate of Origin (Non-Preferential).

 Revalidation under Para 4.47(a)(ii) of HBP 2015-20 shall not be available if revalidation has already been obtained under Para 4.41(a) of HBP 2015-20.

 Clarification regarding provision for modification in IEC laid down in Para 2.14(b) of HBP 2015-20.

 Allocation of quantity of Black Pepper, Vanaspati Bakery, Shortening & Margarine and Coconut for import under the Indo-Sri Lanka Free Trade Agreement for the financial year 2016-17.

 Clarification regarding FPS benefits to "Other Cast Articles of Iron & Steel"-ITC(HS) code-7325 under SI. No. 279 of Appendix 37 D as revised vide Public Notice 52 dated 25.02.2014.

 Leviability of service tax in respect of services provided by arbitral tribunal and members of such tribunal.

 Accounting code for payment of Krishi Kalyan Cess.

 Enactment of Finance Bill, 2016.

 Trade representatives in the Sub-Committee of the High level Committee, on the issue of imposition of Central Excise duty on articles of jewellery in the Union budget 2016-17 nominated.

 Indirect Tax Dispute Resolution Scheme, 2016.

 Allotment of Warehouse Code for Customs Bonded Warehouses.

 Transitional provisions relating to Duty Free Shops, Ship Stores, Airline Stores & Diplomatic Stores.

 Security under Section 59 (3) of the Customs Act.

 Procedure regarding filing of ex-bond bill of entry.

 Manner of payment of interest on warehoused goods.

 Requirement of Solvency Certificate for the purposes of Private Warehouse Licensing Regulations 2016.

 Maintenance of records in relation to warehoused goods in electronic form, filing of returns and acknowledgement of receipt of goods.

 Form of application for a Licence under Public Warehousing Licensing Regulations, 2016 / Private Warehousing Regulations, 2016 / Special Warehousing Regulations, 2016.

 Procedure to be followed by nominated agencies importing gold/silver/platinum under the scheme for 'Export Against Supply by Nominated Agencies'.

 Notification No. 39/96 - Cus amended

 Notification No. 96/08 - Cus amended.

 Notification No. 27/11-Cus amended.

 Adds new ports in EP notifications to allow import / export under EP schemes from these ports.

 Rate of exchange of conversion of the foreign currency wef 20th May, 2016.

 Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Gold and Silver fixed.

 Cenvat Credit Rules amended - Krishi Kalyan Cess ( KKC) credit can be used against KKC only.

 Indirect Tax dispute Resolution Scheme Rules, 2016.

 Services provided by the specified organisations in respect of a religious pilgrimage facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement.

 Notification No. 25/2012 – ST amended.

 Notification No. 30/2012 - ST shall be applicable mutatis mutandis for the purposes of Krishi Kalyan Cess.

 Seeks to exempt such taxable services from whole of Krishi Kalyan Cess (KKC) leviable thereon which are either exempt from the whole of service tax by a notification or otherwise not leviable to service tax. Further, the notification seeks to provide that abatement notification shall be applicable for computing KKC

 Notification No. 39/2012 - ST  amended so as to provide for rebate of Krishi Kalyan Cess paid on all services, used in providing services exported in terms of Rule 6A of the Service Tax Rules.

 Notification No. 12/2013- ST amended so as to interalia allow refund of Krishi Kalyan Cess paid on specified services used in an SEZ.

 Seeks to inter alia provide composition rate for Krishi Kalyan Cess as applicable to ST under sub-rules 7,7A,7B, 7C of Rule 6 of STR, 1994.

 Notification No. 25/2012 - Service Tax, dated the 20th June, 2012 amended, so as to exempt the legal services provided by senior advocates to a business entity with a turnover up to rupees ten lakh in the preceding financial year.

 Service Tax Rules, 1994 amended so as to specify the business entity as the person liable to service tax in respect of services provided by senior advocates.

 Notification No. 30/2012 - ST amended to prescribe extent of payment of service tax by a business entity as a recipient of services provided by senior advocates.

 When the levy of output tax is sustained by the Supreme Court, computation of net tax liability under the provisions of the VAT Act has to be done afresh by the AO in accordance with the provisions of the VAT Act, 2003 - Photo Emporium V DCTO - 2016 TIOL 1122 HC- KAR.

 Transfer of Right to Use goods -Service tax and VAT not mutually exclusive-Payment of Service Tax under Central legislation does not exonerate assess from liability for Value Added Tax - Delta Communications V State of Kerala - 2016 90 VST 438 (Ker).

 Flat in nature of Streedhan stood in Karta’s wife name cannot be provisionally attached in respect of outstanding dues of Dealer in HUF - State of Gujarat V Jwelly Tea Co. 2016 90 VST 501 (Guj).

 Reassessment placing reliance on subsequent circular clarifying position of law impermissible under U.P Trade Tax Act - State of Uttar Pradesh & Ors V Aryaveth Chawl Udyog & Ors - 2016 91 VST 1 (SC).

 Disallowance of input tax credit on purchase of furnace oil not sustainable. - State of Haryana V Karnal Agricultural Industries Limited & Anr - 2016 91 VST 38 (P&H).

 An assessee is entitled to claim benefit of input tax prescribed by the amended provision of Section 10(3) of KVAT Act, 2015, irrespective of the month in which the selling dealer raises invoices - Hindustan Calcined Metals Pvt. Ltd V The State of Karnataka - 2016 TIOL 1043 HC KAR.

 Penalties under Sections 76 and 78 of Finance Act 1994 is not reducible under Section 80 following ratio of judgment in Union of India V Dharmendra Textile Processors - CST Vs. Lark Chemicals Pvt Ltd - 2016 42 STR 417 (S.C).

 Sale by EOU in DTA without requisite permission from Development Commissioner is assessable to excise duty under Section 3 (1) of Central Excise Act - Sarla Performance Fibers Ltd V CCE - 2016 TIOL 82 SC CX.

 When adjudication order does not specifically mention provisions regarding benefit of reduced penalty on payment of entire dues and interest with in thirty days of receipt of order In Original, Highcourt is right in granting said benefit subsequently - CCE V R.A. Shaikh Paper Mills Pvt Ltd - 2016 335 ELT 203 (S.C).

 If no Show Cause Notice is issued within six months as mandated under Section 124(a), the goods should be released to the importer - AS Enterprises V CC - 2016 TIOL 1136 HC MAD CUS.

 Retention of seized goods without issuing SCN inspite of payment of customs duty is unlawful - Sai Incorporation V Pr.CC - 2016 TIOL 1118 HC DEL CUS.

 Penalty under Rule 209A cannot be imposed on importer for the reason that buyer-manufacturer had used such goods for clandestine manufacture and clearance - Sujana Metal Products Ltd V CESTAT - 2016 335 ELT 218 (Mad.)

 Simultaneous penalty can be imposed on partners and partnership firm under Section 112 (a) where charge on firm is of acting or omitting to act rendering goods liable for confiscation and the notice to partner makes out a separate case for abetment on his part - Amritlakshmi Machine Works V Commr.of Customs - 2016 335 ELT 225 (Bom.)

 DGFT and not DoR is the final authority to decide matters of interpretation of Foreign Trade Policy - Greatship India Ltd V UOI - 2016 TIOL 1018 HC DEL CUS

 Department cannot keep account of assessee frozen even after success of his appeal - Happy Overseas Vs. Commr. Customs - 2016 TIOL 1050 HC DEL CUS.

 When appeal has been remanded to Commissioner (Appeals) to decide issue on basis of particular Judgment of Supremecourt, pendency of review petition on said judgment cannot be a ground for Commissioner (Appeals) to dismiss appeals - Dabur India Ltd V UOI - 2016 335 ELT 392 Pat.

Central warehousing corporation or its partner service provider cannot demand charges on goods detained by customs authorities - Paswara Chemicals Limited V - UOI - 2016 335 ELT 408 All.

 Demurrage charges cannot be levied when goods are detained by customs authorities - Continental Carbon India Ltd V UOI - 2016 335 ELT 423 All.

 Construction sand falling under ITC classification 2505 cannot be confiscated for want of Plant quarantine certificate when import regulations provide the commodity as freely importable - Covai Raja Metals India Pvt Ltd V Commr of Customs Kochi - 2016 335 ELT 596 Ker.

 Section 112 of Finance Act 2000 regarding validation of denial of credit of duty paid on HSD during period from March 1995 till date on which it receives assent of President is clarificatory and is not liable to be struck down as unconstitutional - Ester Industries Ltd V UOI - 2016 TIOL 1060 HC DEL CX.

 Simultaneous availment of duty drawback on goods exported and rebate under Rule 18 of the Central Excise Rules, 2002, not permissible as it amounts to double benefit - Kadri Mills CBE Ltd V UOI - 2016 TIOL 1020 HC MAD CX.

 Granting exemption by government under Section 11C of Central Excise Act, 1944 is discretionary and hence Mandamus cannot be issued to Government for granting such exemption - Mangalam Organics Ltd V UOI - 2016 335 ELT 433 (Del.)

 Power of HC under Article 226 for granting relief under amended Section 35F should be used in deserving cases where a clear justification is made out for such interference - Pioneer Corporation V UOI - 2016 TIOL 1116 HC DEL CX.

 Jobworker entitled for credit on capital goods which were not returned to manufacturer with in stipulated period of 180 days when manufacturer had reversed credit and raised revised invoice on jobworker - CCE V Shinhan Plasto India Pvt Ltd - 2016 TIOL 991 HC MAD.

 ST cannot be levied under Section 65 (105) (zzzh) on sale of residential units in absence of specific rules to identify service component in composite contracts - Suresh Kumar Bansal V UOI - 2016 TIOL 1077 HC DEL ST.

 Rule 5A(2) as amended in terms of Notification No. 23/2014 - ST to the extent it authorises the officers of the Service Tax Department, the audit party deputed by a Commissioner or the CAG to seek production of the documents is struck down as being ultravires of powers of Finance Act, 1994 - Mega Cabs Pvt Ltd V UOI - 2016 TIOL 1061 HC DEL ST.

 Mandatory pre - deposit effective from 06.08.2014 is applicable retrospectively to all cases where lis commenced prior to 06.08.2014 - Dream Castle V UOI - 2016 TIOL 1009 HC MAD ST.

 Landlord can collect ST from lessee even in absence of specific clause in the agreement by virtue of Section 83 read with Sections 12A and 12 B of Finance Act, 1994 - Meattles Pvt Ltd V HDFC Bank Limited - 2016 42 STR 655 Del.

 Lease rent advance receivable from Associated Enterprise shown as notional amount vide an entry in balance sheet cannot be subject to service tax as notional amount is not payment actually received - Reliance Infratel Limited V CCE - 2016 42 STR 452 (Tri-Mum).



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