Respected Dipak Shah,
In this newsletter, we summarize the important amendments, Case laws and current issues in the field of indirect taxes of the past week. We hope this newsletter help you to abreast of all the latest happening in the indirect tax discipline and information needs. We look forward for your feedback at pradeep@capradeepjain.com. |  | | Publish Date:13/10/2012 | PJ/Weekly Newsletter/2012-13/028 | | | |
| Amendments | | | | Custom |
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| | TARIFF NOTIFICATION |
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| | • 04/2012-Cus(SG), Dated: 05/10/2012 |
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| | Safeguard duty has been imposed on import of Carbon Black (for rubber application) (T/H 2803 00 10) from China. This is for the reason that the Director General (Safeguard) had come to the conclusion that increased imports of Carbon Black into Ind Read More |
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| | | | • 47/2012-Cus(ADD), Dated: 08/10/2012 |
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| | Anti-dumping duty has been imposed on import of new/unused pneumatic non radial bias tyres, tubes and flaps with or without tubes or flap of rubber, having nominal rim dia code above 16" used in buses and lorries or truc Read More |
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| | | | • 48/2012-Cus(ADD), Dated: 08/10/2012 |
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| | Anti-dumping duty has been imposed on imports of Melamine, originating in or exported from the European Union, Iran, Indonesia and Japan. The anti-dumping duty imposed under this notification shall be levied for a period of five years unless rev Read More< /th> |
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| | | | NON TARIFF NOTIFICATION |
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| | • 93/2012-Cus(NT), Dated: 09/10/2012 |
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| | Rate of exchange of conversion of each of the foreign currency into Indian currency or vice versa relating to imported and export goods has been notified by the Government. These rates will be effective from 10th October, 2012. Read More |
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| | | | • Order Dated: 09/10/2012 |
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| | CBEC assigned various Show Cause Notices mentioned in the order, issued by the specified adjudicating authorities in the case of M/s Nitco Ltd., Worli, Mumbai, to the Commissioner of Customs (Exports), Mumbai Zone-I, having office situated at New Cus Read More |
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| | | | • Corrigendum to Notification No. 93/Cus(NT), dated 09/10/2012 |
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| | In Notification No. 93/2012-CUSTOMS (N.T.) dated 09/10/2012 the rate for export goods of the foreign currency South African Rand has been notified as 6.05 in Indian currency. Now, by this corrigendum the said rate has been rectified to "5.75&rd Read More |
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| | | DGFT |
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| | CIRCULAR |
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| | • 06(RE-2012)/2009-14, Dated: 10/10/2012 |
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| | By Public Notice No. 08 dated 6.7.2012 physical BRC system was dispensed with the e-BRC and was made mandatory w.e.f. 17.8.2012. Now, therefore some guidelines are issued for uniformity in approach and guidance of stakeholders i.e., banks, exporters Read More |
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| | | | NOTIFICATION |
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| | • 20(RE-2012)/2009-14, Dated: 09/10/2012 |
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| | New Import Licensing Note No. 5 has been inserted at the end of Chapter 25 of Schedule-I (Imports) to the ITC (HS) Classifications of Export and Import Items due to which Import Policy for allocation of quota for import of Rough Marble Blocks by Indi Read More |
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| | | | • 21(RE-2012)/2009-14, Dated: 11/10/2012 |
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| | In Notification No. 7 (RE – 2012)/2009-2014 dated 23.7.2012 some changes were made in the descriptions of tariff lines in Chapters 24,26,74,75,76,78 and 79 compliant with the changes in the Finance Bill 2012-13. This notification is silent on t Read More |
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| | | | • 22(RE-2012)/2009-14, Dated: 11/10/2012 |
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| | Amendments have been made in Schedule 1 - Import Policy of the ITC (HS), 2012. Certain items with their attendant ITC (HS) codes were omitted in the ITC (HS) vide Notification No. 111 dated 18.4.2012 have been incorporated as new entries to the ITC ( Read More |
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| | | | POLICY NOTICE |
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| | • 21(RE-2012)/2009-14, Dated: 09/10/2012 |
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| | In order to integrate e-BRC with the schemes under Foreign Trade Policy, some declarations are being mandated which will be will be furnished by applicants filing applications in ANF 3C and ANF 4G at the end of the existing declarations. Read More |
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| | | | • 22(RE-2012)/2009-14, Dated: 11/10/2012 |
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| | In EXIM Policy and Procedure, wherever the word "Chartered Accountant" appears it would deem to mean and include "Cost Accountant" also. Thus, wherever certification by a Chartered Accountant was required, the exporters would Read More |
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| | | Service Tax |
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| | MISCELLANOUS |
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| | • Education Guide on taxation of services |
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| Excise |
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| | TARIFF NOTIFICATION |
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| | • 37/2012-CE, Dated: 11/10/2012 |
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| | Notification No. 12/2012-CE, dated 17/03/2012 provides exemption to certain excisable goods. In the said notification exemption was provided to "CD ROMs". Now, by this notification exemption is granted to DVD ROMs also. Thus, by applicabi Read More |
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| Case Laws | | | | • | PJ/Case Laws/2012-13/1256 |
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Case:- M/s TALSON MILL STORE Vs COMMISSIONER OF CENTRAL EXCISE, LUDHIANA
Citation: - 2012-TIOL-1267-CESTAT-DEL
Issue: - Whether reliance can be placed on the sole statement of one dealer without supported by investigation/inquiries conducted thereon? Read More |
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| | | • | PJ/Case Laws/2012-13/1257 |
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| | Case:- City Union Bank versus Commissioner of Central Excise, Trichy
Citation:- 2011 (27) S. T. R. 25 (Tri.-Chennai)
Issue:- Whether the penalty can be imposed when ST not paid due to some confusion? Read More |
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| | | • | PJ/Case Laws/2012-13/1258 |
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| | Case:- EAST INDIA MINERALS LTD. versus COMMR. OF C. EX., CUS. & S.T., BHUBANESWAR
Citation:- 2011 (27) S.T.R. 18 (Tri.- Kolkata)
Issue:-Whether refund of ST on GTA from place of removal to port is admissible prior to date of amendment Read More |
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| | | • | PJ/Case Laws/2012-13/1259 |
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Case:- M/s KIOCL LTD versus CCE, Bangalore
Citation:- 2012-TIOL-1276-CESTAT-BANG
Issue:-Whether reverse charge mechanism on import of service is applicable prior to 18.4.2006? Read More |
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| | | • | PJ/Case Laws/2012-13/1260 |
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| | Case: - BAZPUR CO-OPERATIVE SUGAR FACTORY LTD versus COMMISSIONER OF CENTRAL EXCISE, MEERUT-II
Citation: - 2012-TIOL-1262-CESTAT-DEL
Issue:- Individual truck owner not covered under GTA. Read More |
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| | | • | PJ/Case Laws/2012-13/1261 |
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Case:-CABLE CORPORATION OF INDIA LTD V/S COMMISSIONER OF CENTRAL EXCISE, MUMBAI-V
Citation: - 2012-TIOL-1270-CESTAT-MUM
Issue:- Notification no. 108/95-CE is available to project and not to company. Read More |
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| | | • | PJ/Case Laws/2012-13/1262 |
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Case:- JOLLYBOARD LTD Vs COMMISSIONER OF CUSTOMS & CENTRAL EXCISE, AURANGABAD
Citation: - 2012-TIOL-1264-CESTAT-MUMBAI
Issue: -The refund on "documentation charges" is allowable to exporters under C & F agency. Read More |
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| | | • | PJ/Case Laws/2012-13/1263 |
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| | Case:-M/S PAVITAR SINGH V/S COMMISSIONER OF CUSTOMS, AMRITSAR
Citation: - 2012-TIOL-1269-CESTAT-DEL
Issue:- The penal action cannot be proposed on statement of co-accused unless corroborated by evidences. Read More |
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| | | • | PJ/Case Laws/2012-13/1264 |
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| | Case:-COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX-BBSR-I V/S KASHVI POWER AND STEEL P LTD
Citation: - 2012-TIOL-1277-CESTAT-KOL
Issue:- The custom duty prevalent on the date of order of permitting clearance will be payable. Read More |
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| | | • | PJ/Case Laws/2012-13/1265 |
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| | Case:- ENPEE EARTHMOVERS versus COMMISSIONER OF CUS. & EX., GOA
Citation:- 2012 (27) S.T.R. 48 (TRI.-MUMBAI)
Issue:-Whether authorities can travel beyond the show cause notice? Read More |
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| | | | Case Study | | | | • | PJ/CASE STUDY/ 2012-13/27 |
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| | The appellant filed this appeal under Section 85 of the Finance Act, 1994 against the Order-in-Original No. 89/ST/2011 dated 28.06.2011 passed by Addl. Commissioner, Central Excise Commissionerate, Jaipur-II. The adjudicating authority confirmed the demand for the service tax on the ground that in terms of section 66A of the Finance Act, 1994, the appellant is liable for the service tax as he is in receipt of services from overseas person who did not have any establishment in India. As per the appellant, the demand of service tax is not sustainable as the service tax demand for the period before 18.04.2006 has been raised and confirmed; whereas before 18.04.2006, there was no authority with the Govt. to charge service tax. Further, they alleged that there was no reverse charge mechanism prescribed under statutory provisions before 18.04.2006 as the said mechanism was implemented under section 66A which was effective from 18.04.06 and did not have retrospective application. Thus the order was set aside and the appeal stands allowed. Read More |
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| | | | Queries | | | | • | Whether the contract of making furniture, comes under purview works contract and if yes what is the rate under composition scheme?? |
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| | 1. If service provider uses his own material in job work and it relates to immovable i.e. fitting out:-It will be work contract service and service tax will be leviable on 70% of total value, if segregation of material potion and labour portion is not possible. [Rule 2A of Service Tax (Determination of value) Rules] 2. If service provider uses his own material and it relates to movable property :- If the process undertaken by job worker amount to manufacture then it will be exempt [sl. no. (f) of Negative List] 3. If service receiver provide material:- It will only labour contract and service tax will be leviable on @12.36% on total value. Read More |
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| | | • | Respected Sir, whether builder(who pay service tax on 25% of total sale value)can availed CENVAT of inputs, input services & Capital Good used for construction ? |
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| | As per conditions given under Sl. No. 12 of Notification 26/2012-ST :- "(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii)The value of land is included in the amount charged from the service receiver" Hence service tax on input services and capital goods is allowed. Read More |
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| | | • | We are hiring cold storages from individual and from private limited companies for storing our food product produced by us. kindly suggest is service tax applicable on rent paid by us for cold storages??? |
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| | Yes, service tax will be leviable as neither covered under Negative list (section 66D) nor under Mega exemption Notification 25/2012-ST.(ST will not applicable if there is storage of an agricultural produce) Read More |
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| | | & #8226; | our company procures manufactured products and pays excise duty on it. It Uses these products on composite works contract( material + service) and collects service tax from its client. Can service output liabilty be adjusted from excise duty( cenvat credit.??? |
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| | As per explanation given with Rule 2A of Service tax Rules for Determination of value of service portion in the execution of a works contract(Notification 24/2012-ST):- "Explanation 2.--For the removal of doubts, it is clarified that the provider of taxable service shall not take CENVAT credit of duties or cess paid on any inputs, used in or in relation to the said works contract, under the provisions of CENVAT Credit Rules, 2004." So the above explanation make it clear that provider of work contract service is not eligible to take Cenvat of 'Input' used in or in relation to the said work contract. For more detail refer notification no. 24/2012-ST at:- http://new.capradeepjain.com/redirect_amdview_5924_3 Read More |
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| | | • | whether service tax is levied on Xerox work under work contract service |
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| | As per Sl. No. 30 of Notification 25/2012-ST, "30(a) Carrying out an intermediate production process as job work in relation to agriculture, printing or textile processing is exempt" Therefore service tax is not leviable on Xerox as it is nothing and printing process only. Read More |
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| | | • | In hotel Industry, suppose we have booked the room against advance payment of Rs. 10000 and service tax of Rs. 582 (50% Abatement on Room Rent) has been deposited on adavnce payment. Rs. 10000 is forfeited due to cancellation of room booking. From 01.04.2012 service tax is also applicable on advances forfeited for cancellation of an agreement to provide a service, now my question is whether hotel is liable to pay service tax 12.36% on forfeited amount or liable to pay service tax under abatement scheme? |
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| | The advance is received towards renting of room and amount is forfeited because of cancellation of agreement towards renting of room and also service tax have collected on 50% amount from service receiver. Further there is no any service provided separately and consideration is only for renting of room service. Therefore it is nothing and only renting of room service. Hence service tax will be leviable on 50% amount only. Read More |
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| | | • | Sir Please clarifying which tax is applicable on printing and designing of magzines of our institute. |
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| | As per serial No. of Notification 25/2012-ST following service is exempts: "Carrying out an intermediate production process as job work in relation to- (a) Agriculture, printing or textile processing as job work" So the service tax will not be leviable as it is exempt under the notification No. 25/2012-ST. Further as told in query that you have not providing any material, hence it is not job work but a sale of good. Hence, no service tax is payable. Read More |
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