Leaf No : 43
Month : October
Year : 2013
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Happy Diwali - Team SA!

 Cabinet clears proposal for six CESTAT benches. One additional bench each at Chennai, Mumbai and Delhi. New benches at Hyderabad, Chandigarh and Allahabad.

 FM inaugurates Kolkata LTU.

 Shri. C.Dube, Shri. Karan K. Sharma, Shri. Arun Sahu and Shri. A.K Prasad appointed as members of Settlement Commission of Excise, Customs & Service Tax.

 RBI grants permission for overseas foreign currency borrowing by Authorised Dealer banks.

 India witnesses another major scam in spot-exchange. NSEL frauds over 5500 croroes. 

"SA EXCLUSIVE" - The TI-NSEL scam - By Vandana Kumaresh.

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In the second round of litigation, the Tribunal had considered the following issues, namely :-

• Whether the drawback benefits could be recovered where the export proceeds were received in cash and not through the banking channels.

• Whether the statements could be relied upon without offering cross-examination.

• Whether the DEPB and Drawback benefits could be denied on the grounds of overvaluation without adducing any evidence including contemporaneous exports.

Relying upon the principles laid down by Hon’ble High Court of Allahabad in the Case of Mayfair Leather Exports Pvt. Ltd (2011 (272) ELT 193), the CESTAT had held that, during the relevant period, in the absence of any action proposed by the Reserve Bank of India, the department cannot enforce recovery of drawback benefits.

It further held that, as the credibility of the statements of two foreign nationals relied upon by the department is doubtful, the same cannot be taken as evidence when the deponents were not available for cross examination.

With respect to the overvaluation of export goods, it has been held that the allegation has to be supported by contemporaneous value of export goods based on market value of export goods at relevant time for determining the Drawback and DEPB benefits.

With the above observations and directions the has been remanded to the adjudicating authority.

A/1950 - 1952/13/CSTB/CI dated 30.09.2013





 Circular on rates of deduction of IT from salaries during financial year.

 Advance license and DEPB benefit receivable is in nature of hypothetical income which cannot be said to have 'accrued' to the assesee till imports are made and raw materials are consumed... CIT v Excel Industries Ltd - 2013 TIOL 52 SC IT LB.

 Bonafide purchaser depositing advance for purchase of property of defaulter entitled for refund of advance made when sale cannot be fructified due to mortgage of same property to bank and matter is pending before DRT... Broadways Overseas Ltd vs Central Excise Division - 2013 TIOL 764 HC P&H CX.




 Issue whether statement recorded by the investigating officer under Section 67 of the NDPS Act can be treated as confessional statement or not, even if the officer is not treated as a police officer referred to Larger Bench of Supreme Court... Tofan Singh vs State of TN - 2013 TIOL 51 SC NDPS.

 Whether provisions of Section 149 of Customs Act covers cases where amendment to Bill of Entry sought after order of first check and before examination. Matter referred to Third Member... CC Vs M/s ART Alive - 2013 TIOL 1585 CESTAT DEL.

 Issue whether 5%/10% collected under Rule 6 of Cevat Credit Rules is additional consideration referred to Third Member... BHEL vs CCE - 2013 TIOL 1513 CESTAT DEL.

 Leviability of exciseduty on basis of MRP for period prior to 01.03.08 referred to Larger bench... Schneider Electrical India (P) Ltd vs CCE - 2013 TIOL 1502 CESTAT MUM.

 Whether service provided which is essentially in the nature of a works contract can be brought to tax under other existing taxable services prior to 1.6.2007 referred to five member bench... Larsen & Toubro Ltd Vs CST Delhi - 2013 TIOL 1458 CESTAT DEL.


 Clarification issued regarding Restaurant services.

 Claims of rebate are to be disposed of within 30 days from the date of receipt of the claim complete in all respect, except those requiring pre-audit.

 CVD applicable on the Steam Coal imported from Indonesia under FTA notification No. 46/2011.

 Circular regarding encouragement for stakeholder participating in Customs functioning.

 Clarification on option to close cases of default of Export obligation.

 Period of 90 days specified under Section 61 (2) of the Customs Act to commence from the date of deposit of goods in the Warehouse.

circulars notifications

 Specified goods supplied to the Government Departments and Laboratories exempted from payment of excise duty.

 Amendment to Tariff concessions in respect of specified goods imported from Malaysia under the India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA).

 Current foreign exchange rates effective from 18.10.2013.

 Import of new motorcycles from Bangladesh permitted through two more LCS.

 Relaxation in export policy for export of Red Sanders wood.

 Mono cartons containing strips/vials/bottles shall be treated as Primary level packaging.

 Five new PSIA have been approved as Pre Shipment Inspection Agencies (PSIA).

 Procedure for closure of cases of default in EO as per PN 23 dated 12.08.13.

 Amendment to Notification 25/2012-ST providing exemption from payment of ST to A/C canteens maintained in factories as per Factories Act.

 "SA SPECIAL" - THE  MESS IN A MESS - By  G. Natrajan, Advocate.

vat spot

 Karnataka VAT – Second Amendment Act, 2013 notified.

 Section 19 (20) of TNVAT Act which provides for reversal of credit above output tax paid when goods are sold at lesser price than the purchase price is not ultravires... Jayam & Co vs ACCT & Anr - 2013-14 19 TNCTJ 197.

 Banks and NBFC disposing vehicles for recovery of loan are liable to discharge VAT as ‘dealers’ under West Bengal Value Added Tax Act, 2003... Tata Motors Finance Ltd vs Asst. Commr - 2013 VIL 85 CAL.

 Government Corporation cannot refuse to issue Form C to Contractor which would enable him to claim concessional rate... OMIL-JSC-JV vs UOI - 2013 VIL 82 GAU.

 Protection under Section 71 of Maharashtra VAT Act, 2002 regarding confidentiality of records of assessee is not available to assesees to refrain from producing such documents before Arbitral Tribunal when so required... Delta Distilleries Limited Vs. United Spirits Limited & Anr - 2013 STPL (Web) 785 SC 8. 

 Mere difference in profit between the second sale and the first sale would not lead to a statutory best judgment under Section 12-A of the TNGST Act in absence of any enquiry done by the Assessing Officer... Swarna Steels vs State of TN - 2013 TIOL 747 HC MAD CT.

 Exemption available to plastic granules used for manufacturing packing material in business of assesee not available when same is used for manufacturing plastic bottles and crates for sales... CCE vs Harihar Plastics - 2013 TIOL 765 HC ALL CT.

 University imparting education is not a 'dealer' as it is not carrying on any business and hence sale of admission forms / brochure against a fee would not constitute sale subject to VAT... Mahatma Gandhi Kashi Vidyapeeth vs State of UP - 2013 64 VST 271 All.

 No sales tax can be levied on recharge cards / pins / scratch cards as the items have no intrinsic sale value and are considered as part and parcel of service provided... Bharti Televentures Ltd vs State of Karnataka - 2013 64 VST 365 Kar.

 Ongoing works contracts during transition from Sales tax Act to VAT scheme are to be assessed under composition as per erstwhile Sales Tax Act... Nitya Engineers & constructors vs State of UP - 2013 64 VST 177 (All).

 Statutory first charge over property created under Section 26A of KGST Act would prevail over mortgage created in favour of bank.... Noushad Abbas vs Commr. CT - 2013 TIOL 773 HC KERALA CT.


 Recovery proceedings under Section 87 has to be kept in abeyance till the application under the VCES is disposed off... K.Anand Caterers vs Union of India - 2013 TIOL 741 HC ALL ST.

 Settlement route is not available for recovery under Section 142 as such proceeding is not contemplated under Sections 127 A and 127B... Exotica Global Pvt Ltd vs Union of India - 2013 TIOL 819 HC KOL CUS.

 Emphasising certainity the High Court directs CBEC to issue suitable administrative guidelines for the refund claims to be decided by the adjudicating authority and the first appellate authority... ONGC Ltd Vs UoI 2013 TIOL 809 HC MUM CX.

 No third-time Cess on clearance of goods by EOU to DTA... Claris Life Science Ltd vs Union of India - 2013 TIOL 802 HC AHM CX.

 Assistant Director (Investigation) has no locus standi to challenge the order of the Settlement Commission before the High Court in WP... UOI vs Dharampal Satyapal & Ors - 2013 TIOL 827 HC DEL CX.

 When the order forming basis of a criminal complaint has been set aside by the Appellate Tribunal, continuation of criminal proceedings against the petitioner would be abuse of process of law... Harjit Kaur vs Asst. Commr, Central Excise - 2013 TIOL 749 HC P&H CX.

 Abatement of duties paid as per Pan Masala Packing Machine Rules, 2008 is applicable for non production of specified commodity for fraction of a month also... CCE vs Kay Fragrance Pvt Ltd - 2013 TIOL 758 HC P&H CX.

 Commercial training or coaching is taxable irrespective of the nomenclature / description... Great Lakes Institute of Management vs CST - 2013 TIOL 1480 CESTAT DEL LB.

 Training in English language is not entitled for exemption as vocational training... Prof. Ulhas Vsant Bapat vs CCE - 2013 TIOL 1510 CESTAT MUM.

 Although two SEZ units of the same Company are separate entities as per Rule 19 (7) of SEZ Rules 2006, same does not result in service provider – recipient relationship... Larsen & Toubro Ltd vs CCE - 2013 32 STR 113 (Tri-Ahm).

 Incentives by car manufacturer to authorised dealers in form of trade discount not taxable under BAS... CST vs Sai Service Station Ltd - 2013 TIOL 1436 CESTAT MUM.

 Completion and finishing services, repair, alteration or renovation and restoration or similar services provided, whether in respect of a new building or an old building would attract service tax liability under Construction service... Kala sagar vs CST - 2013 TIOL 1576 CESTAT MUM.

 No service tax on services provided to SEZ unit for the period from 3.3.2005 to 20.5.2009 in view of the provisions of Sec.51 of the SEZ Act... Reliance Ports and Terminals Ltd - 2013 TIOL 1473 CESTAT Ahm.

 Development fee collected from passengers is towards access to aeroplane and is akin to the subject of toll paid by road users wherein access to road is not leviable to service tax... M/s Mumbai International Airport Pvt Ltd Vs CST - 2013 TIOL 1487 CESTAT MUM.

 Aggregate value for exemption under SSI notification to include value of goods manufactured by loan licensee also... Optho Remedies (P) Ltd vs CCE - 2013 TIOL 1453 CESTAT DEL.

 Waste and scrap generated at job workers end, job worker to discharge excise duty and not principal manufacturer... VE Commercial Vehicle Ltd. Vs CCE, Thane-I - 2013 TIOL 1447 CESTAT MUM.

 Upon winding up of the company, the appeal filed before CESTAT abates under Rule 22... Sunitha V vs CCE - 2013 TIOL 1578 CESTAT BANG.

 SAD refund is not eligible when goods on which VAT has been paid does not match in description with the goods imported... Ahmedabad Strips Pvt Ltd vs Commr. Customs - 2013 TIOL 1552 CESTAT MUM.

 Restriction placed on import of artificial marble slab on basis of value cannot be undone by enhancing value of such marble slabs so as to treat them as freely importable... Shri Krishna Impex vs CCE - 2013 TIOL 1593 CESTAT DEL.

 Renting of capital goods imported under EPCG scheme as per Notfn. No. 97/2004-Cus dated 17/09/2004 is violation of actual- user condition... Sushant Minerals Pvt Ltd vs CC - 2013 TIOL 1533 CESTAT MUM.

before parting...


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