Leaf No : 42
Month : September
Year : 2013
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 India's economic ray of hope, Mr. Raghuram Govinda Rajan is the current and the 23rd Governor of the Reserve Bank of India.

 Delhi gang-rapists sentenced to death for student's murder.

 Indian manufacturing shrinks for first time in four years.

 Tata group (once again) joins hands with Singapore Airlines to start a new full-service airline in India (Third time lucky???).

 RBI bans zero per cent interest rate scheme for buying goods.

 Government has "adequate" foreign exchange reserves to defend its currency amid global volatility - Montek Singh Ahluwalia.

 The Supreme Court has issued notices to seven coal mining states, asking them to explain their role in coal block allocations.


- Courtesy "THE HINDU"

 Congress vice president Rahul Gandhi’s criticism of the government on Friday effectively put the controversial ordinance on convicted legislators on hold.

 Govt clears 15 FDI proposals worth over Rs 2,000 crore.

 PM invites US companies to invest in India.

 Rajya sabha passes Food Security Bill.

 TRAI recommends big cut in mobile phone spectrum price.

 India tests Agni-V missile with range as far as Beijing.

 Import duty on gold jewellery increased to 15 percent.

 Rupee rallies and closes at 62.51 against USD.

 Country's economy will return to high growth trajectory soon, says President.

 Government says that the Real Estate Bill has provisions for speedy dispute settlement.

 India, Mauritius to join hands for cooperation in MSME Sector.

 Vice President of India releases Delhi Human Development Report - 2013.

sa corner
A manufacturer who was also a dealer in textiles, exported goods under three modes:
• Direct exports after clearance from the factory of the manufacturer through merchant exporters where ARE-1 is countersigned by both the manufacturer and merchant exporter;
• Clearance without payment of duty under procurement certificates to merchant exporter who consolidate goods from other manufacturers also and export the goods;
• Clearance without payment of duty under procurement certificates to manufacturers who do further manufacturing process on the goods and export the goods under ARE-1 filed by them.

After a first round of litigation, based on the Hon’ble CESTAT order, the department had allowed refund to the extent of exports carried out by the appellant in the capacity of a manufacturer and rejected the refund claim to the extent of theexports carried out under the dealer registration, on the grounds that the refund under Rule 5 of Cenvat Credit Rules is only available for manufacturers and not for dealers.

The Hon’ble Tribunal in this second round of litigation has held this is not correct based on the reasoning that it was never a point of dispute before the adjudicating authority and hence held to be not maintainable in accordance with the principles of natural justice. Further, on merits, it has been held that, as per the Central Excise Rules, 2002 and Cenvat Credit Rules, 2002 as amended by Notfn.34/03-CE, there was an option to the dealer of textile goods to pay excise duty as if he was a manufacturer and to comply with all the rules and regulations. This option has to be construed as applicable in respect of all matters, including payment of duty as well as claim of refund consequent to exports and is in conformity with the policy of the Government to allow export of goods without incidence of tax.

Thus the appeal was accordingly allowed with consequential relief.

CESTAT Final Order No.

40330/2013 dt 14.8.13



 Sodium perchlorate imported from China subject to ADD for five years.

 ADD on import of Zinc oxide from China extended for further period of five years.


 Guidelines on arrest and bail for offences punishable under Finance Act, 1994.

 Clarification on levy of service tax on education service.

 Payment of amount under Rule 6 (3) of Cenvat Rules not applicable for clearance of goods availing benefit of Notification Nos. 29/2012-CE, 30 /2012-CE, 31/2012-CE, 32/2012-CE, 33/2012-CE all dated 09.07.2012.

 Circular issued explaining bailable and non-bailable offence under Central Excise and precaution to be taken by Excise Officers in event of arrest.

 Procedure and Guidelines prescribed for Import of Gold and Gold Dore Bars superceding clarification vide Circular No. 28/09-Cus dated 14.10.09.

 Speaking orders to be issued on the provisions of the various sub-rules of Rule 5 of Re-export of imported goods Drawback Rules 1995, are satisfied or not satisfied.

 ‘Bluetooth Wireless Headsets for mobiles classifiable under CTH 8517.62.

 Circular regarding revised AIR of drawback.

 Guidelines regarding arrest and bail for various offences under Customs Act.

 Circular regarding restriction on use of IEC by importers/exporters other than holders of IEC number.

 Permission to export finished leather, Wet Blue and EI Tanned leather through Air ports.

 Public notice on requirement of intensive scrutiny on claims for Incremental export incentivsation scheme beyond level as prescribed under Ntf 44/2013.

circulars notifications

 Amendment to Notification No.64/95-CE inserting Sl.No.35 exempting supplies for LR SAM Programme.

 Amendment to Notification 12/2012-CE.

 Rule 3 (5A) of Cenvat Rules regarding clearance of used capital goods amended prescribing duty to be paid on transaction value if capital goods are cleared as waste and scrap.

 Amendment to Notification 12/2012-Cus.

 Import duty on articles of gold and silver jewellary falling under CTH 7113 and 7114 increased.

 Notification No.98/2009-Cus regarding DFIA amended.

 Various Customs Notifications amended to implement option to close cases of default of Export obligation.

 Foreign exchange rates from 20.06.2013 notified.

 Customs, Excise and Service Tax Duty Drawback Rules amended.

 New rates of drawback notified.

 Exemption to National skill development corporation, sector councils and training partners providing services in relation to national skill development programme, vocational course and other schemes implemented by NSDC.

 Exemption from payment of Service tax on provision of hotel accommodation service and restaurant service in Uttarakhand.

 Import of gold against AA or DFIA that there is no need for import to precede export.

 Exporters of cotton and cotton yarn ineligible for duty credit scrips under FMS.

 Benefit of Incremental Export Incentivisation Scheme for the last quarter of 2012-13 to be limited to 25% growth or Incremental growth of Rs. 10 crores in value, whichever is less.

 Relaxation of condition for fulfillment of EO in respect of consignments of gold articles.

vat spot

  Larger bench of the Supreme Court approves the Raheja Development Corporation decision and holds that any type of building contract, wherein the developer undertakes construction on behalf of purchaser, would amount to works contract and is liable to sales tax... Larsen & Toubro Ltd vs State of Karnataka 2013 VIL 03 SC LB.

 Dealer, a declared sick company, not collecting sales tax on basis of referral by BIFR to State Government to consider sales tax exemption is entitled to raise the plea of promissiory estoppel against the State Government which denied sales tax exemption...Southern Refineries Ltd vs State of Kerala 2013 64 VST 25 (Ker).

 Dues of Private Company can be recovered from Director under Section 18 of CST Act, 1956...Stephen Verghese vs State of UP 2013 64 VST 75 All.

 Sale by STC to the Petitioner has to be treated as local sale in absence of evidence to show that allotment was intended to result in movement of goods to various branches outside State...MRF Limited vs State of Tamilnadu 2013 64 VST 103 (Mad).

 Budget speech proposing reduced rate does not entitle the dealer to charge reduced rate in absence of issuance of any notification...Cardamaon Pro. & Mktg.Co-Op Society vs IAC 2013 63 VST 371 Ker.

 Exemption from payment of sales tax on purchase of raw materials not available under Delhi Sales Tax Act when goods are sent out of Delhi for manufacture or part of manufacture...Nand Kishore Megh Raj Jewellers vs CST 2013 VIL 77 DEL.


 Supreme Court holds that the Cenvat credit is not available on the machinery purchased by the appellant as it had not even been tested or was not even unwrapped in the factory and hence the appellant had only acted as a trader or as an exporter and cannot be said to have manufactured that plant in its factory... KCP LTd vs CCE - 2013 295 ELT 353 SC.

 "Reasonable care" expected out of the appellant is not verification from the department whether the duty stands paid by the manufacturer-seller. This would be practically impossible and would lead to transactions getting delayed... CCE vs Kay Kay Industries - 2013 TIOL 41 SC CX.

 For the period between 23.07.96 and 31.08.96 credit under Rule 57Q is eligible on all components, spares and accessories of specified capital goods irrespective of their classification under any chapter heading... The India Cements Ltd vs CCE 2013 TIOL 690 HC MAD CX.

 Power to extend stay shall be used by Tribunal in a reasonable manner and on consideration of requirements and need for safeguarding interest of revenue... CCE vs Action Springs India Pvt Ltd - 2013 TIOL 655 HC KAR CX.

 Dues of defaulter cannot be recovered from properties of wife and children as Rule 9 of Customs Attachment of Property for Dues Rules does not confer power on officer to adjudicate on ownership of property held by another deeming it to be ostensible ownership... Deputy Commr. of Customs vs Ayessha A.V - 2013 TIOL 729 HC KERALA CUS.

 Refund claim of importer for duties paid under protest cannot be rejected on ground that the final assessment was not challenged when on date of refund claim there was no order of final assessment under Section 18 (2) of Customs Act... Visa steel Ltd vs Commr. of Central Excise - 2013 TIOL 730 HC ORISSA CUS.

 When imported goods are released on provisional assessment, the claim for refund of SAD can be made within one year or sixmonths of final assessment as provided under Section 27 of Customs Act or with in enlarged period of one year from date of provisional release... Pioneer India Electronics (P) Ltd vs Union of India - 2013 TIOL 731 HC DEL CUS.

 Value of free supplies not includible in gross amount for purpose availing abatement under construction services under Notification 1/06-ST as no economic benefit is accruing to service provider on account of free supplies... Bhayana Builder (P) Ltd vs CST - 2013 TIOL 1331 CESTAT DEL LB.

 Exporter not entitled for refund under Rule 5 of CCR, if exports are not made under bond or on LUT... Bajaj Food Ltd vs CCE - 2013 295 ELT 275 (Tri-Ahmd).

 Benefit of exemption under Ntf.108/95-CE shall not be denied for reason that certificate is not issued in name of assesee if it is complete in other details as goods are required for project by GOI... CCE vs Chhabi Electricals Pvt Ltd - 2013 TIOL 1291 CESTAT MUM.

 Credit otherwise eligible on capital goods cannot be denied for the reason that such goods after being received in factory becomes part of plant and machinery embedded to earth...Omax Auto Ltd vs CCE - 2013 TIOL 1276 CESTAT DEL.

 Credit is eligible on services used by Corporate office... Thiru Arooran Sugars Ltd vs CCE - 2013 TIOL 1270 CESTAT MAD.

 Service tax on charges paid to foreign banks for collecting and remitting sale proceeds on export of goods is eligible for credit... Lupin Ltd vs CCE- 2013 TIOL 1416 CESTAT MUM.

 Order to be set aside when veracity of panchnama is doubtful and computer printouts cannot be considered as evidence if the same does not fulfill the conditions under Section 138C of the Customs Act... Agarvanshi Aluminium Ltd vs Commr of Customs - 2013 TIOL 1332 CESTAT MUM.

 Transaction value on goods imported cannot be rejected on the ground that declared value is less than the average price of raw materials in India... Om International vs CCE - 2013 TIOL 1358 CESTAT DEL.

 Declared value of imports cannot be enhanced solely based on the data and guidelines issued by DGOV... Commr of Customs vs Manasi Enterprises - 2013 TIOL 1395 CESTAT KOL.

 Theory of preponderance of probability cannot be resorted to substitute the lack of investigation... PNP Polytex Pvt Ltd vs Commr of Customs 2013-TIOL-1405-CESTAT-MUM.

 Section 85 (4) of Finance Act 1994 does not confer power of remand on CCE (Appeals)... CCE vs Central Cables - 2013 TIOL 1362 CESTAT MUM.

 Issue whether promotion of cricket is an public service and association promoting the same is charitable organization for purpose of exclusion from service tax has been referred to LB... Vidarbha Cricket Association vs CCE - 2013 TIOL 1404 CESTAT MUM.

before parting...


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