Leaf No : 44
Month : November
Year : 2013
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 Justice A P Shah takes over as New Chairman of Law Commission.

 Chief Justice of India calls for 24X7 legal aid helpline.

 Alcohol and Petroleum to be kept outside GST.

 Orbiter Mars Mission 'Mangalyaan' successfully launched.

 FM addresses taxpayers in Delhi, Mumbai & Chennai on VCES-2013.

 Supreme Court has issued directions to the Centre and the States to constitute a Civil Services Board and to provide a fixed tenure for the civil servants.

 CAG Shashi Kant Sharma elected to UN Board of Auditors.

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M/s Win Enterprises purchased imported tufted carpet rolls scrap, cut them into shapes and sizes, stitched edges by employing machines and then sold the same either as car mats or as floor mats. The department has held that the activity undertaken by the assessee amounted to manufacture of car mats and floor mats and in respect of floor mats, the department had classified under Chapter 5702.19 of CETA, 1985. 

There were conflicting decisions of the Tribunal in Trans Asia Carpets Ltd. Vs Commissioner of Central Excise, Meerut [2006 (116) E.L.T.135 (Tribunal)] and the subsequent decision in Jyothi Carpet Industries Vs Commissioner of Central Excise, Jaipur [2001 (132) E.L.T. 458 (Tri.-Del.)]

Hence a reference was made to the Larger Bench on the question as to whether the process of cutting of carpets in rolls into tiles and stitching the edges and providing a lining to the cut sizes, to facilitate use as floor mats, amounts to manufacture and the emerging product is exigible to duty.

The Hon’ble Larger Bench, after considering the generic principles regarding identification of what processes amount to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944, has held that the activity undertaken by the assessee and mentioned herein above would not amount to manufacture nor result in emergence of a distinct independent commodity, and thus not exigible to duty under provisions of Section 2(f) of the Central Excise Act, 1944.





 Advance remittance for import of rough diamonds.

 Third party payments for export / import transactions.

 Import of Gold by Nominated Banks /Agencies/Entities.

 Settlement Commission can pass an order on issues ultra vires the contents of investigation report of Commissioner... CIT vs Income Tax Settlement CommissioN - 2013 TIOL 853 HC MUM IT.

 Registration of FIR is mandatory under Section 154 of CRPC without any preliminary inquiry, if the information discloses commission of a cognizable offence and no preliminary inquiry... Lalitha Kumari vs Govt. of UP - 2013 TIOL 63 SC MISC CB.

 CBI constituted as an adhoc under Resolution No. 4/31/61-T, dt 01.04.1963 and has no legal existence and thus quashed... Navendra Kumar vs UOI - 2013 TIOL 871 HC GUW MISC.

 Preventive Detention order cannot be quashed merely because the order remained unexecuted for a long period... Subash Popatlal Dave Vs UOI - 2013 TIOL 33 SC COFEPOSA LB.

 Detention order set aside as all the relevant and vital material/documents were not placed before the Detaining Authority... Sahil Jain Vs UOI & Others - 2013 TIOL 903 HC DEL COFEPOSA.


 Clarification on VCES scheme - 2013.

 Amendment to Rules 8, 9 and 10 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 clarified.

 Exemption from payment of SAD to parts, components and accessories of Mobile Handsets.

 Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, amended.

 E-payment made mandatory w.e.f 1.1.2014 for assessees who have paid Central Excise Duty of Rupees one lakh or more in the preceding financial year.

 Foreign exchange rates with effect from 22.11.2013 notified.

 Additional duty of Customs not required to be paid in respect of Jute products imported from Bangladesh during the period from 9.7.2004 to 13.2.2011.

 Quarterly statement, in Form A-3 to be submitted by the SEZ Unit or the Developer to the jurisdictional Superintendent of Central Excise.

 E-payment made mandatory w.e.f 1.1.2014 for assessees who have paid Service Tax of rupees one lakh or more in the preceding financial year.

circulars notifications

 Anti-dumping duty on Acrylic Fibre, falling under chapter 55 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, Korea RP and Thailand extended upto 19th day of November, 2014.

 Anti-Dumping Duty on Cable Ties falling under the sub-heading 3926 90, originating in, or exported from, the People's Republic of China and Taiwan extended upto 30th October 2014.

 Anti-dumping duty on Phenol, falling under chapter 27 or 29 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, South Africa extended upto 30th October 2014.

vat spot

 Important changes in Tamilnadu VAT Return in Form I -New Annexure V – Closing Stock Inventory has to be filed along with the return w.e.f 01.11.2013. G.O Ms.No.137 dt 31.10.2013.

 Date of filing of audited Form WW Annual Return is extended upto 31.12.2013.

 Amendment in Section 19 to reverse ITC for interstate sales/transfers with and without declaration forms.

 VAT Act 28/2013 (Fifth amendment Act) dt 08.11.2013 published in TN Gazette dt 08.11.13.

 “Rebate of tax” granted by the State Government to cement manufacturing units using fly-ash as raw-material in a unit established in U.P alone, is violative of the provisions contained in articles 301 and 304(a) of the Constitution of India... State of U.P and others Vs Jaiprakash Associates Ltd - 2013 65 VST 423 (SC).

 Turmeric and Turmeric powder and Coriander and Coriander powder are one and the same. Therefore powder form of turmeric and coriander are entitled to the benefit of exemption as before... Nazareth Foods (P) Ltd., Vs Asst Commr (CT), Chennai - 2013 65 VST 227 (Madras HC).

 A transaction transferring right to use trademark is subject to sales tax... Vital Departmental Stores & Industries Ltd vs State of Tamil Nadu - 2013 VIL 94 MAD.

 When the purchaser of the goods is exempted, the sales tax cannot be collected from the selling dealer... Vijaya lakshmi Enterprises Vs State of AP - 2013 65 VST 347 (AP HC).

 VAT credit not eligible on payment for purchase of goods made by adjustment of debit entries against credit entries... Ajith Kumar Mundra vs CTO - 2013 VIL 89 CAL.

 Commission agent procuring orders for goods not liable to pay sales tax as he is not a 'dealer'... Commr. Commercial Tax vs NK Poduval & Co - 2013 TIOL 885 HC Kerala CT.


 No writ petition but an appeal is maintainable against interim orders of pre-deposit by CESTAT... Metal Weld Electrodes vs CESTAT - 2013 TIOL 865 HC MAD.

 High Court entertains writ petition on the grounds of violation of natural justice when cross examination was denied by the Commissioner... Vulcan Industrial Engineering Co Ltd vs UOI - 2013 TIOL 911 HC AHM CX.

 Sale of State Lottery by distributor through its various stockists, agents, etc., cannot be construed to be a service rendered to the State Government to fall within the purview of the service tax in the absence of any element of service in such activity... Future Gaming Solutions India Pvt Ltd vs UOI - 2013 TIOL 904 HC SIKKIM ST.

 Repeated issue of demand-cum-show cause notice for the same period would lead to inconvenience and harassment to assesee... NR Management Consultants India Pvt Ltd vs CST - 2013 TIOL 907 HC DEL ST.

 Service portion of composite contracts alone can be subject to service tax under Construction service... GD Builders vs UOI - 2013 TIOL 908 HC DEL ST.

 Larger bench of CESTAT declines to answer question whether value of deemed sale to be included in taxable value for purpose of payment of service tax in view of the judgment of the Delhi High Court in GD Builders... M/S Hindustan Aeronautics Ltd Vs Commissioner Of Service Tax, Bangalore - 2013 TIOL 1764 CESTAT MAD LB.

 As such clearance of used capital goods during period 2006 subject to payment of duty as per Circular No. 643/34/2002-CX... CCE, Hyderabad-III Vs Navodhaya Plastic Industries Ltd - 2013 TIOL 1773 CESTAT MAD LB.

 Cenvat credit on Racks admissible as inputs in terms of the Larger Bench Ruling of Tribunal in the case of Banco Products... M/s Sree Ramicides Chemicals Pvt Ltd Vs CCE, Tiruchirapalli - 2013 TIOL 1772 CESTAT MAD.

 Rule 8 (3A) is not invokable for cases of payment of duty through wrong utilisation of cenvat... Pranav Construction Systems Pvt Ltd vs CCE - 2013 TIOL 1730 CESTAT MUM.

 Assessee entitled for benefit of 25% penalty in cases of payment of duty prior to issue of SCN even in absence of specific provision... CCE vs Shivam Textiles - 2013 TIOL 1675 CESTAT AHM.

 The activity of painting of motor vehicle parts is a part of manufacturing activity of motor vehicles as per section note to section XVII of CETA 1985 and as the motor vehicles are cleared on payment of duty service tax is not leviable under Business Auxiliary service... Commissioner Of Central Excise, Pune-I Vs Krishna Fabricators Pvt Ltd - 2013 TIOL 1753 CESTAT MUM.

 Cenvat Credit can be utilized for payment of service tax under reverse charge on import of services... Kansala Modler Ltd vs CCE - 2013 32 STR 209 (Tri-Del).

 Providing access to internal Data of company across globe by group company does not result in provision of online Information and Database Access and retrieval service... Philips Electronics India Ltd vs CST 2013 TIOL 1655 CESTAT MAD.

 Section 78 penalty cannot be imposed on Managing Director of the company as the Section uses the expression 'person liable to pay tax' which is the company... Checkmate Industries services vs CCE - 2013 TIOL 1679 CESTAT MUM.

 Electricity charges recovered along with charges for renting not subject to service tax as electricity is 'goods'... ICC Realty India Pvt Ltd vs CCE - 2013 TIOL 1751 CESTAT MUM.

 Credit can be availed on basis of any document as long as stipulation with respect to information required to be contained therein is satisfied... Atlas Documentary Facilitators Pvt Ltd vs CST - 2013 TIOL 1727 CESTAT MUM.

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