may 12- summary (amendment & case law) (1)

7/31/2019 MAY 12- Summary (Amendment & Case Law) (1)

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MUST DO PRACTICAL & THEORETICAL QUE IN AMENDMENT BOOKLET - (ALL THE BEST)

CA MANOJ BATRA FOR MAY 12 CA FINAL IDT 1

AMENDMENT FOR MAY 12-

For Branded Readymade Garments

1. RULE-4(1A)- who will pay duty- RMS/BO (job worker cant be authorised )2. RuLE-12D-CER 2002 Provisions apply to RMS/BO3. RULE-9- Registration by RMS/BO4. SSI Exemption-8/2003-AVAILABLE5. Sec 3(2)-Tariff value-45% of RSP6. R- 2(naa)-CCR 04- Manufacturer includes r- 4(1A) person (Means RMS/BO Can take CCR)7. R-5 CER 02- CL. STOCK ON 28/2/11- When cleared liable to duty.

For SSI EXEMPTION TREATED AS BRANDED RMADE GARMENT- BRAND NAME of Manufacturer& Name of

school printed ON uniform, BN of Manufacturer & Name of Company/Airlines/hotels

Not TREATED AS BRANDED RMADE GARMENT- Name or logo of school and TAILOR

NAMEprinted ON uniform of school or Name or logo of TAILOR printed on company uniformName or logo of secuity agency and TAILOR NAME/MANUFACTURER printed on security guard

uniform, Name of manufacturer printed on blankets supplied to police /defence, Name of

HOTEL/AIRLINES printed on TOWELS OR LINES

Sec 5B Notification issued u/s 5B also to be laid before Parliament.

VALUATIONSEC 4A Legal Metrology Act 2009 REPLACED instead ofStandards of Weights and Measures Act

CENVAT CREDIT RULES 2004

Rule 3 W.e.f 18.04.2006, rule 3 has been amended to provide that a manufacturer or service provider shalallowed to take credit of the service tax leviable under section 66A of the Finance Act, 1994.

Rule 4(7)- CCR ONINPUT SERVICE

Reverse charge - On payment of value AND s. taxInvoice issued before 1-4-11 - On payment of value AND s. taxInvoice issued on or after 1-4-11 - On or after the day of receipt of invoiceNote- if payment of value & s. tax not made within 3 m of date of invoiceThan pay amt = CCR availed. (By debiting CCR or PLA )- Monthly/Quarterly

Note- if payment made AFTER 3 M, then s.provider can take credit which was paid earlier.Associated enterprise can take CENVAT credit of the service tax paid under rule 4(7) of the CCR, 2004 if S. tax paidbasis of, debit/credit entries in books of account

Central Excise Rules 2002Registration If centralized billing or centralized accounting system maintained for smart cards. Then Registration only of t

premise. Other premises where smard card manufactured are exempted from registration.

Return/declaration

/statementER-1 to ER-8

now ER-1 to ER-8 are required to file electronically irrespective of duty paid in previous F.Y.Every assessee other than assessees availing the exemption under NN-49/2003 or 50/2003 (UttrakhanHimachal Pradesh) shall file electronically the return or the statement, as the case may be, specifiethis rule.

Common Topics

Excise & servicetax

(1)- NPL- SCN SERVE- 1YR FROM RELEVANT DATE,NPL CASE before service of SCN- DUTY + INT.

PAY ,Full duty pay Written intimate -SCN (DUTY OR PENALTY

),PARTIAL duty pay -SCN 1 yr.From the date of intimation


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(2)NOT CAPTURED TRANSACTION,EPL- SCN SERVE- 5 YR FROM RELEVANT DATE

PENALTY = 100% OF DUTY

(3)CAPTURED TRANSACTION- AUDIT,INVESTIGATION -EPL- SCN SERVE- 5 YR FROM

RELEVANT DATE--PENALTY = 50% OF DUTY

(4)CAPTURED TRANSACTION- AUDIT,INVESTIGATION - Written intimate SCN SERVE PAY

PENALTY = 1% OF DUTY P.MFrom next month inwhich duty payable

25% of duty

Full duty pay SCN ,PARTIAL duty pay -SCN 1 yr.From the daof intimation

(5)SCN SERVEDFRAUD CHARGE

FRAUD PROVE

SCN VALID NPL 1 YR DUTY

(6)- DEMAND ORDER PASSED

OTHERTHAN FRAUD(NPL)- 6 MFrom date of SCN

FRAUD(EPL)- 1 YR From date of SCNSec 11AC

Sec 78 same as11AC , but 30/90days- for small &large serviceprovider

PAY PENALTY- 25%,

If Paid Within 90 Days -(PROVIDING SERVICE 60 L

IF PAID WITHIN 30 DAYS- OTHERS

FROM DATE OF RECEIPT OF DEMAND ORDER

SEC 11AA (1) INTEREST ON DELAYED PAYMENT- 18% P.A


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EVERY CASE INTEREST PAY -WHETHERPAYMENT MADE

VOLUTARILYOR

AFTERDETERMINATION Of DUTY U/S 11A(2) PERIOD OF INTEREST-

FROM THE DATE ON WHICHDUTY BECOME DUE TILL- DATE OF PAYMENTOF DUTY

(3) CASE WHENINTEREST NOT PAYABLE-

CIRCULAR DUTY PAYABLE PAYFULLDUTY VOLUNTARILY

+

WITHIN 45 DAYS FROM DATE OF CIRCULAR

+

APPEAL


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Sec 11 E/142A/88Of excise/custom& service tax

Excise duty/custom duty/Service tax having first charge after

1. Sec 529A of companies Act 1956.

2. RDBFI ACT 1993

3. SARFAESI ACT 2002.

12F. Power of

search andseizure.

(1) Where the JC /AC has reasonsto believe that any documents or books or things, which in his opinion shal

useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing CEO to search and seize or may himself search and seize such documents or books or things.

(2) The provisions of the Code of Criminal Procedure, 1973 relating to search and seizure, shall, so far as may

apply to search and seizure under this section as they apply to search and seizure under that Code..

SEC 28- CUSTOM

NOTE- IN SEC 27

RELATING TO

REFUND & SEC

28 RELATING TO

DEMAND OF

DUTY 6 M TIME

LIMIT HAS BEEN

REPLACED WITH

1 YEAR for all

types of

assesses.

ADVANCERULING

RESIDENT PUBLIC LIMITED COMPANY HAS been notified as Resident to make application for

advance Ruling.

Appeals

Appeal not to befiled by dept- 35RLIMITSCESTAT- 5 LACHC- 10 LAC

SC- 25 LAC

1. CBEC MAY FIX MONETARY LIMIT- FOR NOT FILING APPEAL BY CEO

2. If APPEAL not filed IN one case due to Monetary Limit it is not a restriction to file appeal

another case by CEO

3. If APPEAL not filed due to Monetary Limitother party cant conend that CEO has acceptthe decision

4. Court or TRI. Hearing such appeal- have regard to reason for non-filing appeal was monetarlimit

CUSTOMSEC 46 & 50 BOE/SHIPPING BILL to be filed electronically

Sec 9A Anti dumping duty levied if goods imported in

unassembled form or

by changing the nomenclature, or


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by routing the goods through third countries where cosmetic processes are carried out

Due to self assessment concept inserted in custom following changes made (1)assessment (2) sec 17 (3) sec 18 (4) s

19 and (5) and 157(2)(d) amended

Sec 17 1. self assessmentof duty in- BOE/shipping bill

2. if Case selected for scrutiny- Examination of goods- 17(2)/Review of assessment- 17(3)

3. PO may ask documents & information- 17(3)4. If not satisfied with document & information- reassessment of duty- 17(4)

5. Importer agree to re-assessment- Take his acceptance in writing Mark BOE for payment of

duty-17(5)

6. Importer NOT agree to re-assessment- issue speaking order within 15 days-17(5)

7. AFTER CLEARANCE of goods- AUDIT can be done at importer premises of custom office

PROVISIONALASSESSMENTSec 18

PROVISIONAL ASSESSMENT

(1) Unable to make self assessment (2) chemical or other test necessary(3) produced all necessary

documents but po thinks enquiry necessary(4)not produced all necessary documents and po

thinks enquiry necessary

(2) Security = expected FA duty- PD assessed

(3) Final assessment at higher rate - Demand , Interest @ 18%, PA duty adjusted with FA duty(4) Final assessment at lower rate -refund , Interest @ 6%, PA duty adjusted with FA duty

Sec 150SECTION 150. Procedure for sale of goods and application of sale proceeds.(1) Where any goods not being confiscated goods are to be sold under any provisions of this A

they shall, after notice to the owner thereof, be sold by public auction or by tender or with the consenthe owner in any other manner.

(2) The proceeds of any such sale shall be applied -

(a) firstly to the payment of the expenses of the sale,(b) next to the payment of the freight and other charges, if any, payable in respect of the goods sold, to the

carrier, if notice of such charges has been given to the person having custody of the goods,(c) next to the payment of the duty, if any, on the goods sold,(d) next to the payment of the charges in respect of the goods sold due to the person having the custody o

the goods,(e) next to the payment of any amount due from the owner of the goods to the Central Government under

provisions of this Act or any other law relating to customs,and the balance, if any, shall be paid to the owner of the goods.

Applicable for May 12

Proviso inserted by F Act 2011Provided that where it is not possible to pay the balance of sale proceeds, if any, to the owner ofthe goods within a period of 6 months from the date of sale of such goods or such further period asthe Commissioner of Customs may allow, such balance of sale proceeds shall be paid to the CentralGovernment..

SERVICE TAX

Sec 5B F ACT1994

The rate of service tax - the rate prevailing at the time when the services are deemed to have been provided.

CBEC CIRCULAR Delayed payment of telephone Bill, stock broker charges, Container Detention charges not liable to service tax.


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Point of Taxation Rules 2011

Rule 3POT 2011

Invoice issued within 14 days[Date of issue of invoice or Date of receipt to the extent of payment] w.i. earlierInvoice not issued within 14 days[Date of completion of service or Date of receipt to the extent of payment] w.i. earlier

Continuous

supply of service

Service provided for Continuous period for more than 3 m

Notified services1. CONST. OF RES. COMPLEX2. COMM. OR IND. CONST.3. WORKS CONTRACT4. TELECOMMUNICATION5. INTERNET TELECOMMUNICATION

Rule 6POT 2011

Invoice issued within 14 days[Date of issue of invoice or Date of receipt to the extent of payment] w.i. earlierInvoice not issued within 14 days[Date of completion of event or Date of receipt to the extent of payment] w.i. earlier

Rule 7

POT 2011

Export of service- Date of receipt of payment

Note- IF payment not recd period specified by RBI then as per Rule 3import of service- Date of paymentnote- IF payment not made within 6 m of date of invoice then as per Rule 3Reverse charge- Date of payment

Transaction withassociatedenterprises

In case service provider is outside IndiaDate of credit in books of service receiver or making of payment, whichever is earlierIn case service provider is in IndiaRULE 3 OR 6 AS THE CASE MAY BE


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RULE 4POT 2011

RULE 5.- POT2011s tax in cases ofnew services

(a) no tax shall be payable to the extent the invoice has been issued and the payment received against sinvoice before such service became taxable;

(b) no tax shall be payable i f the payment has been received before the service becomes taxable and invoice been issued within the period referred to in rule 4A of the Service Tax Rules, 1994.

RULE 8.-

Determination ofpoint of taxationin case ofcopyrights, etc.

In respect of royalties and payments pertaining to copyrights, trademarks, designs or patents, where the wh

amount of the consideration for the provision of service is not ascertainable at the time when service wperformed,AND SUBSEQUENTLY THE USE OR THE BENEFIT OF THESE SERVICES BY A PERSON OTHTHAN THE PROVIDER GIVES RISE TO ANY PAYMENT OF CONSIDERATION, the service shall be treatedhaving been provided each time when a payment in respect of such use or the benefit is received by the providerespect thereof, or an invoice is issued by the provider, whichever is earlier.

RULE 6(3)STR 1994

Where an assessee has issued an invoice, or received any payment, against a service to be provided which isso provided by him either wholly or [or where the amount of invoice is renegotiated due to deficient provisionservice, or any terms contained in a contract], the assessee may take the credit of such excess service tax paid


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him, if the assessee.-(a) has refunded the payment or part thereof, so received for the service provided to the person from whom it w

received; or](b) has issued a credit note for the value of the service not so provided to the person to whom such an invoice

been issued.]

SEZ EXEMPTION

SEZ 2) GET list of taxable service approved by approval committee

WHOLLY CONSUMED IN SEZ

Category- 1 - IMMOVAYBLE PROPERTY - WITHIN SEZ

Category- II -Performance -WHOLLY PERFORMED IN SEZ

Category- III -RESIDUARY -SERVICE provided to SEZ developer/unit who doesnt carry any business

operation other than in SEZ

(3) If refund available is proportionate in case of shared services then bal on which refund not

available can be taken as CCR.

(4) Refund in case service is shared between DTA & SEZ unit

Refund = s tax paid * export T.O OF SEZ

TOTAL TURNOVER

(5)Maintian proper A/Cs of receipt and use of specified service on which exemption taken for

authorised operation.

(6) Procedure of refund

1) Application with in 1 year (form A-2) + extension by AC/DC2) If not regd then file declaration in form A-3 to take STC within 7 days

3) APPLICATION WITH FOLLOWING DOCUMENTS

i. List of services approved

ii. Declaration form A-1

iii. Invoice in name of SEZ developer/unit

iv. A declaration of fulfilling conditions.


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Sec 89

RULE 4(1A)STR 1994

For the purposes of sub-rule (1), the CBEC may, by an order specify the documents which are tosubmitted by the assessee alongwith the application within such period, as may be specified in said order.

RULE 4A- Issueof invoiceSTR 1994

Provided also that in case of cont inuous supply of service, every person providing such taxable service shall isan invoice, bill or challan, as the case may be, within fourteen days of the date when each event specified in contract, which requires the service receiver to make any payment to service provider, is completed.]

Sec 70 furnishingof returns- S taxreturn filedelectronically

Every person liable to pay the service tax

shall himself assess the tax due on the services provided by him and

shall furnish a return in such form and at such frequency

and with late fee not exceeding Rs. 20,000 for delayed filing of return, as may be prescribed.

Sec 76 Failure to pay service taxa) Rs. 100 per day of failure or (b) 1% p.m of service tax, whichever is higher, starting with the first day a

due date till the date of actual payment of outstanding amount of service tax, subject to maximum of50% tax not paid.

Sec 77 1) failure to take registration as per provisions ofsec 69 or rules made under this chapter Penalty which may extend to (a) Rs. 200 fevery day during which such failure continues starti

with the first day after the due date, till the date

actual compliance, or (b) Rs. 5000 10000 whicheve

higher.

2) failure to keep, maintain or retain books ofaccount and other documents as required by

Penalty which may extend to Rs. 5000 10000


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this law

3) Failure to(i) Furnish information called by an officer in

accordance with the provisions of thischapter or rules made there under or

(ii)Produce documents called for by a CEO

in accordance with the provisions of thischapter or rules made thereunder; or

(iii) Appear before the CEO, when issued witha summon for appearance to give evidenceor to produce a document in an enquiry

Penalty which may extend to-

b) Rs. 200 for every day during which sufailure continues starting with the first dafter the due date, till the date of actu

compliance orc) Rs. 5000 10000

Whichever is higher.

4) Failure to pay tax electronically, internetbanking, through required to pay taxelectronically.

Penalty which may extend to Rs. 5000 10000

5) Issuing invoice in accordance with theprovisions of the Act or rules madethereunder, with incorrect or incompletedetails or failure to account for an invoice in

his books of account6) Contravention of any of the provisions of this

chapter or any rules made thereunder forwhich no penalty is separately provided

SECTION 82.Power to searchpremises.

(1) [If the [Joint Commissioner of Central Excise] has reason to believe] that any documents or books or thiwhich in his opinion will be useful for or relevant to any proceeding under this Chapter are secreted in any placemay authorise [any] [Superintendent of Central Excise] [to search for and seize or may himself search for and ssuch documents or books or things].(2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches, shall, so far as mbe, apply to searches under this section as they apply to searches under that Code.

Sec 93 A Central Government empowered to allow rebate in certain circumstances even if the s

proceeds/consideration are not received within the stipulated period

IMPORTANT CASE LAWS MOST IMP CASE LAW IN RED PORTION

[Nicholas PiramalIndia Ltd 2010 (SC)]

CUDE vitamin A has a life of 2 to 3 days, the same shall be considered as marketable.

MEDLEYPHARMACEUTICALSLTD.(SC)(2011)

On Physician Samples Printed- Not for sale because of Drug & cosmetic Act 1940. These

are marketable.

USHA RECTIFIERCORPN. (I)LTD.(2011)(SC)-

Testing Equipment manufactured and not imported to save Foreign exchangeAre marketable.

GTC Industries Ltd.2011 (Bom.)

the roll of aluminum foil was cut horizontally to make separate pieces of the foil and wordPULL was embossed on it Doesnt amount to manufacture.

AIR LIQUIDENORTH INDIA

Testing and grading the procured Gas, packing in different cylinders alongwith testcertificate amounts to deemed manufacture u/s 2(f)(ii)

Electronics & controlpower system(p) ltd

Value of Bought out Batteries supplied with manufactured UPS included in Value of UPSbecause battery is part of UPS.


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Royal Enfield Packing of motorcycle done at factory removed to depot will be included in value evenifpacking removed before sale at depot.

ECOF INDUSTRIESPVT. LTD. (2011)(Kar

Service tax distributed by head office u/r 7 of CCR 2004 TO KOLAR UNIT IN RESPECT OFADVERTISING SERVICE WHICH IS RECD BY CUTTACK UNIT.- CAN BE DISTRIBUTED

IndSwiftLaboratories Ltd

2011 (SC)]

nterest on Wrong Availment of CENVAT Credit Interest has to be charged from the date ofavailing credit and not from the date of utilization. Hence, interest has to be charged even in a case

where CENVAT is wrongly availed and is reversed before utilization of such credit.

TATA ADVANCEMATERIALS

CCR NOT TO BE REVERSED IN CASE O F CG IF DESTROYED BY FIRE IN SUBSEQUENTYEARS AFTER CLAIMING CCR, EVEN IF INSURANCE CLAIMED FROM INS COMPANY

Essar steel ltd Export duty cant be levied on goods supllied from DTA to SEZPrime Health CareProducts 2011(Guj)

In case of combo-pack of bought out tooth brush sold alongwith tooth paste manufacturedby assessee; is tooth brush eligible as input under the CENVAT Credit Rules, 2004? YES

BPL Ltd. 2010(Mad.)

Chartered Accountants certificate alone is NOT sufficient evidence to rule out the unjustenrichment

Techno RubberIndustries Pvt Ltd.2011 (Kar.)

excess duty paid by the seller be refunded on the basis of the debit note issued by the buyer

RDC CONCRETE(INDIA) P. LTD.(SC)(2011)

In an appeal proceeding, the CESTAT concluded that

(i) Assessee and buyer are inter-connected company and(ii) Appointment of department cost accountant was valid in law.

On being rectification application filed by the assessee the CESTAT altogether changes itsconclusion that

(i) Assessee and buyer are not inter-connected company and(ii) Cost accountant appointed must be in practice for purpose of valuation audit u/s 14A.

Department alleged that rectification order amounts to review which was not permissible.CESTAT CANT DO SO

because it is not rectification of mistake apparent from record but

this is review

VOLVO INDIA LTD.(2011)(kar)

Royalty charges for transfer of know-how - Whether Service tax is leviable on it as ConsultingEngineer service. The question relates to payment of rate of duty/tax. Whether Against CESTATorder appeal can be made to High court.NO, BECAUSE RATE OF DUTY/TAX MATTER CANT BE APPEALED TO HIGH COURT.

Gurukripa resins Turpentine oil if manufactured with the aid of power liable to duty @16% because exemptionis available to the oil if manufactured wihout the aid of power.

Jocil ltd Assesse imported crude palm stearlin classifying under 15119090 as other palm oil wherasdept contended that classifieable under 38231112 as RBD palm sterlin by applying rule 3(a).department contention is right.

Living Media India

ltd

Royalty payable shall be added to the Cost of Imported audio CD because royalty becomes

due as soon as CD distributed & sold (hence royalty was a condition of sale.)Sayed ALI (2011)(SC) SCN issued by commissioner of custom Preventive in not valid.Note- however this case has been overruled REFER SEC 28(11).

[ M.Ambalal & Co.2010 (SC)]

Imported Rough Diamond THROUGH smugglingBut if diamond imported on import licencse- import duty exemptDept levied duties and penalties. Assessee contending that import duty exemptSmuggled goods not eligible for exemption.

Textoplast Industries2011 (Bom.)

Can separate penalty under section 112 of the Customs Act be imposed on the partners whenthe same has already been imposed on partnership firm?


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YES, In an appropriate case, impose a penalty both upon a partnership firm as well as on itspartners.

S.J. Fabrics Pvt. Ltd.2011 (Cal.)

Can goods be detained indefinitiely- NO

Manish Lalit Kumar

Bavishi (Bom.)

Is it mandatory for the Revenue officers to make available the copies of the seized

documents to the person from whose custody such documents were seized?YES, AS PER SEC s 110(4)- the person from whose custody any documents were seized u/s110 shall be entitled to makes copies therefrom or take extracts in presence of custom officer

LINCOLN HELIOS(INDIA)LTD.(2011)(KAR.)

ASSESSEE has paid duty on machine inclusive of erecting, commissinging charges. Whetherservice tax can be demanded on erection, commissioning charges?It was held that the excise duty was levied on the aspect of manufacture and service tax is levied onthe aspect of services rendered. Therefore, it will not amount to payment of tax twice. Henceassessee will be liable to pay service tax on value of services.

Ideatelecommunicationltd.

Sale of SIM card is service because sim card are never sold as goods independent fromservices provided . DOMINANT NATURE OF TRANSACTION IS TO PROVIDE SERVICE ANDNOT to sell goods. Hence value of sim card is leviable to service tax.

Summary of amendment for Nov 11

On 130 items- 1% duty Rule 2(d)- 1% duty goods- exempted goodsRule 6 (1) CCR not allowed of IP/ISRule 6 (4) CCR not allowed of CGRule 3(4) - If he is also manufacturing goods attracting normal duty (e.g 10%)- CCR of IP related to thoseallowed to be utilised for payment of 1%-(Proviso To R-3(1) - Buyer Of 1% Duty Goods Shall Not Take Credit Of 1% EdQUARTERLY RETURN- within 10 days after close of qtr

Cir- 937/27/2010&

940/01/2011

If the FP is exempt under 2 notification1. 100% Exempt without any condition.2. 4% duty payable with availability of CCR of IP

Then as per Sec 5A(1A), full exemption notification mandatory and any anount charged representing dutyexempted Final Product will have to be deposited u/s 11D . Further if the buyer has taken credit on suchduty will be recoverable u/r 14 of CCR 2004.

Cir 038/28/10 Quantity discount not deductible while calculating value based on MRP basis.

CCR 2004

Rule 2- cap goods Treated as Capital goods Even If used outside factory for generation of electricity for captive use withinfactory

R- 2- input Means- all goods used within factoryAny goods + accessory + goods used for Free warranty if there value included in FPAll goods used for generation of electricity or steam for captive useAll goods used for providing output serviceExcludes- 1) any goods for const of buildg or support of cap goods ( but treated as IP-for

port/Airport/commercial const/ Res complex/ works contract service)2) Cap goods ( when cap goods used as part or component then treated as input)3) Motor vehicle, any goods for personal use, any goods which have no relationship

R- 2 input service Used by provider of taxable service or used by manufacturer directly or indirectly and includes ------------------------- excludes

1. Architect/port/Airport/ commercial const/ Res complex/ works contract service when used forforconst of buildg or support of cap goods ( except when they used for providing these services)

2. General Ins/rent a cab/ service station/ supply of tangible goods when they are for motor vehicle


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For S. Providers who are allowed motor vehicle as capital goods can take credit of these services3. Services which are for personal use of employee.

Proviso to Rule 3 CCR of 85% of CVD on ships, boats and other floating structure for breaking up

Cir 933/23/10 When EOU clear to Depot in DTA than Value as per Rule 4 to 9 of import valuation rules sequentially .

Proviso rule 3(5) No payment if the input removed outside the factory for providing free warranty for final product.Rule 3(5B) Payment of amount related to credit even if input or cap goods partially written off.

Rule 4(2) CCR allowed on CG even if recd outside factory when used outside factory for generation of electricity focaptive use within factory

Rule 6 Refer chart made during class

6(3B) Banking Co/ NBFC/ shall pay monthly 50% of credit availed on IP/IS

6(3C) Life ins/ ULIP Service provider shall pay monthly 20% of credit availed on IP/ISR- 6(5) deleted Earlier 100 % CCR allowed on 16 services. Now proportionate CCR allowed for which either maintain

separate A/cs or pay amt equal to 5%

R- 6(6A) The provider of Output service to SEZ unit/Developer can take CCRR- 9(1) CCR allowed on supplementary invoice issued by service provider.

R-9(7) SSI will file return with in 10 days form end of quarter.

Cir 942/3/11 Interest will be recovered under Rule 14 of CCR 2004 on Cenvat Credit wrongly availed even if not utilized

Also Affirmed in -Ind-Swift Laboratories Ltd.the interest on irregular credit under rule 14 of the CENVAT Credit Rules, 2004 arises from da

of availing such credit

8/2003 Packaging Material Include Label of all kindsRule 7/8/19 of CER 02 &sec 11AB

Interest @13 % p.a has been changed to 18% p.a

Rule 9 CER 2002 If CBS/CAS maintained of goods produced by different mines and took registration of that premises thenmines are exempt from registration.

If ER-1 to ER- 8 not filed then penalty can be imposed uptoRs 5000.classification PAPER LICENSE OF SOFTWARE classifiable under49070030 - Documents of title conveying the right

use IT software

PUK CARDS - classifiable under 4911 Other printed matterPackage software- ifaffixation of MRP mandatory- [Media + license]-excise duty

Affixation of MRP not mandatory - EXCISE DUTY on AV U/S 4 excluding value of right to use and SERVITax on value of right to use

DDB SHALL NOT BERECOVEREDR-16A

Sale proceed compensated by ECGC AndRBI- waive off the requirement of realisation of proceeds on merit AndExporter produces a certificate from concerned foreign mission about the fact of non- recovery

R- 6(3) Limit of self adjustment of Rs. 1,00,000 has been increased to Rs. 2,00,000.

6(6A) SERVICE TAX self assessed but not full or partially PAID then Service tax can be recovered without servof SCN and Demand order u/s 73

6(7A) If the whole premium is not towards risk cover in life then insurer has the option to pay

(i) tax @ 10 % on the gross premium charged reduced by the amount of investment or savings on behalf opolicyholder, if such amount is intimated to policy holder or(ii) in all other cases- 1.5 %of gross premium as tax.

A foreign exchange broker, authorized dealer in foreign exchange or authorized money changer shall havthe option to pay tax at following rate.

Amount of currency exchanged Rate of service tax

1. UptoRs. 1,00,000 0.1 %, minimum Rs 25.


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2. Exceeding Rs. 1,00,000 upto 10 Lakhs Rs. 100 + 0.05%

3. Exceeding Rs.10 Lakhs Rs. 550 + 0.01%Maximum Rs 5,000 .

Rule 2B of Service Tax(Determination ofvalue) Rules, 2006

Value of Money Changing Services shall be determined as under:

(a) For a currency, when exchanged from, or to Indian Rupees

Difference between buying rate or selling and RBI Reference rate for that currency at that timultiplied by total units of currency.

(b) Where RBI reference rate is not available

1% of gross amount of Indian Rupees provided or received

(c) Where neither of the currencies exchanged is Indian Rupees

1% of lower of the amount of two foreign currencies after converting them in to Indian currencythat day at the reference rate provided by the RBI.

Rule 3 Export of Service Rules, 2005 & of Taxation of services (provided from outside India and receiveIndia) Rules, 2006Technical testing and analysis service and certain other services shifted from performance categorResiduary category

SEZ exemption Refer chart

131/13/2010 Hire charges collected for Electricity meters is exempt137/6/2011 Visa application charges

1.not covered in Business Auxiliary Service-because not acting as agent of Foreign Embassay. [service not provided on behalf or client]

2.not covered in Business support Service- because individual directly making payment and thatcant be considered as support service for business or commerce.

3.not covered in Manpower Recruitment Service- because doesnt act as agent of foreign emplofor recruitment.

4.covered in bus support- if payment by business entitycovered in Manpower Recruitment Service- if act as agent of foreign employer forrecruitment.

134/3/2011 If service tax exempt then EC & SHEC ALSO EXEMPT.

TAXABLE SERVICES

TELECOMMUNICATION Explanation- for the telecommunication service, the value of taxable service shall be the gross amount pby the person to whom telecom service is provided by the telegraph authority.

CONST OF COMPLEX Services rendered for carrying out construction services under Jawaharlal Nehru Urban Renewable Miss(JNURM) & Rajiv AwaasYojna.

Works Contract

Services

Services rendered for carrying out construction services under Jawaharlal Nehru Urban Renewable Miss

(JNURM) & Rajiv AwaasYojna.The CENVAT credit of tax paid on taxable services as referred to underErection, commissioning & installation service, commercial or industrial construction service andconstruction of complex serviceshall be available only to the extent of 40% of the service tax paid when such tax has been paid onthe full value of the service after availing CENVAT credit on inputs..

BANKING &FINANCIAL

CG exempts the taxable service, provided to a Scheduled bank, by any other Scheduled bank, any baincluding a bank located outside India, or money changer, by any other bank or money change


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relation to inter-bank transactions of purchase and sale of foreign currency, from the whole of the service t

Transport of goodsby Air

Exempted to the extent air freight is included in the value of goods determined u/s 14 of Customs Act

Transport of goodsby Air/ Rail/ GTA

Services provided to a person located in India when the goods are transported from a place locaoutside India to a final destination which is also outside India.

MGT,MAINTENANCEOR REPAIR

CG exempts the taxable service, provided to any person by any other person in relation to managemmaintenance or repair of roads,bridges, tunnels, dams, airports, railways and transport terminals fthe whole of the service tax

126/08/2010 Underwriting commission received by the Primary Dealers for the auction of Government Securitnot liable to service tax

133/2/2011- it is clarified that customized group JPAP insurance schemes floated by various insurance companies as pthe specifications of State Governments concerned, to extend risk cover to target populations, and to fulfilthe prescribed rural or social sector obligation, are covered by the subject service tax exemption.

132/1/2011 Specialised cleaning services of containers used for export goods are exempt from the service tax by viof an exemption notification.

Basic conceptsClean energy cess[CEC]

Rs 50 per tonne levied on raw coal, raw lignite and raw peatNo EC,SHEC will be leviable.CEC exempt on goods produced or extracted as per traditional and customary rights enjoyed bylocal tribals in the state of Meghalya without any license or leaseNo CCR of CEC, For payment of CEC, CCR cant be utilised, CEC only paid through PLA.

Cir 927/17/2010 Pickling and oiling of metals as preparatory steps not manufacture.

VALUATION

Cir 936/26/2010 Pre-delivery Inspection charges and After-sale Service includible in Assessable valueRule 5 - Actual/average cost of transportation deductible except from factory to branch.Forward / return journey both transport deductible.Profit on transport includible, in case transportation charged more in invoice than actualincurred.

Accurate meters Ltd- if deemed delivery at factory gate as sec 39 of sale of goods act, then transport is irrelevant for TV.

Bolting Cloth/screens/Silicon cylinders which carry design fitted on machine used in ceramic tileindustry for priming of design on tiles are part/ component of machinery- CCR allowed.

Cenvat creditCapital goods for

specified serviceproviders

Dumper, tippers & its component, spares and accessories forSite formation service and mining

service are capital goods. Similarly Motor vehicle and its component, spares and accessories arecapital goods for specified services

No.267/11/2010- 1. No CCR on cement, angles, channels, CTD or TMT bars and other items used forconstruction of factory shed, building or laying of foundation or making of structures forsupport of capital goods because cannot be treated as either inputs for capital goods oras inputs in relation to the final products

2. CCR allowed on welding electrodes.Cir- 930/20/2010


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if FP destroyed (i.e Bottled Beverage),

Remission of duty on FP claimed under rule

21 0f CER 2002

Reverse CCR on IP as per rule 3(5C) of CCR

2004

If the input (bottle) is written off by the

assessee as destroyed,

Reverse CCR on IP as per Rule 3(5B) of CCR

2004

Rule 6(6) CCr can be taken even if FP is exempt, no requirement to maintain separate accounts, no need topay 5% of value of exempted goods, when the goods are supplied for the use of foreign diplomaticmissions or consular missions or career consular offices or diplomatic agents.

Rule 9(8) first/second stage dealer submit Quarterly return electronically.Rule 19 that export of excisable goods which are chargeable to nil rate of duty or are wholly

exempted from payment of duty, other than goods cleared by a hundred per cent export -oriented undertaking, shall not be allowed under this notification;

Sec 33 Power of adjudication Amt of duty involvedSuperintendent upto 1 lakh ( excluding ROD/Value and cases involving EPL

AC/DC upto 5 lakh except where superintendent empowered to adjudicateJC above 5 lakh upto 50 lakh

Addl. Commisioner above 20 lakh and upto 50 lakhCommissioner without limit

Sec 37(2)(xiiia) Central Government empowered to make rules for withdrawal of facilities/imposition ofrestrictions on CENVAT credit

1.In excise, applications for the settlement of cases can be made where an assessee admits short-levy for goods in respect of which he has not maintained proper records in his daily stockregister (i.e. cases of misdeclaration, clandestine removal etc.).

In Custom applications for the settlement of cases can be made where assessee admits

short levy in respect of the goods which were not included in the Bill of entry or Shipping Bill,as the case may be.2.EXTENSION of order by the Settlement Commission for a further period by3 months.3.Now the assessee can apply for settlement more than oncehe CANT apply for settlement under section 32E in relation to any other matter if1. an order of settlement passed for the imposition of a penalty On the ground of

concealment of particulars of his duty liability; or2. after the passing of an order of settlement in relation to a case, such person is convicted

of any offence under this Act in relation to that case; or3. the case of such person is sent back to the Central Excise Officerhaving jurisdiction by

the Settlement Commission

[Circular No.929/19/2010

Polyester Staple Fibre manufactured out of PET scrap and waste bottles is a textile materialclassifiable under Section XI of the Central Excise Tariff -

Classification of TEA fortified with Vitamins will be classified under chapter 21

Cir 924/14/2010 Rice parboiling machinery and drier which are essentially for use in conjunction with therice mill will be classified under heading 8437.

NN. 33/2010 Goods supplied to UN or an international organisation exempted from additional andspecial additional duty of excise


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Goods notified under Medicinal and Toilet Preparations (Excise Duties) Act, 1955

Assessable value for CVD = MRP less abatement

Circular 34/2010- manufacturers in textile sector will not be allowed refund of special CVD

Cir 933/23/2010 goods cleared from an 100% Export Oriented Undertaking to a depot which are subsequently soldin DTA will be valued as per Rule 3 to 9 of imported goods valuation Rules 2007

Circular No.11/2010 Sec 14 of CA 1962- value of the imported goods shall be the transaction value of goods.the price at which the imported goods are sold after warehousing them in India does not qualify tobe the transaction value as per section 14.

rule 5 of the Re-exportof Imported Goods(Drawback ofCustoms Duties)Rules, 1995

claim for drawback shall be filed within 3 months from the date on which an order permittingclearance and loading of goods for exportationthe said period of 3 months may be extended by a period of three months by AC/DC on anapplication accompanied with a fees of 1% of the FOB value of exports or Rs. 1000/- whichever isless and a further period of 6 months by Commissioner on an application accompanied with a feesof 2% of the FOB value or Rs. 2000/- whichever is less.

rules 6, 7, 15Customs, CentralExcise Duties andService Tax DrawbackRules, 1995

The time period for the following has been extendedfrom 60 days to 3 months:(a) making an application to the Commissioner of Central Excise/Commissioner of Customs andCentral Excise for determination of the amount or rate of drawback [Rule 6].(b) making an application to the Commissioner of Central Excise/Commissioner of Customs andCentral Excise for determination of the amount or rate of drawback where the amount or rate ofdrawback is low(i.e Where the exporter finds that the drawback rate fixed under Rule 3 orRule 4 is less than 4/5th of the duty or taxes paid on inputs or input services) [Rule 7].

Authority for extension Period of extension Fees payable with application for

extension

Assistant or Deputy Commissioner Further 9 months 1% of the FOB value of exports or Rs.

1000/- whichever is less

commissioner Further 6 months 2% of the FOB value or Rs. 2000/-

whichever is less

RULE 16A of DDBRules 1995

Where sale proceeds are realized by exporter and duty drawback has been recovered from him ,

the exporter produce evidence of realization with in 1 year[3 months] from date of such realization.

The period may be extended by the Commissioner by 9 months subject to the condition that the

amount has been realized on a date covered by the extensions of time limit given by the RBI for

realizing export proceeds. Application fee equivalent to 1% of the FOB value of exports or Rs.

1000/-, whichever is less, shall be payable for applying for grant of extension by the Commissioner.

Rule 3 of the BaggageRules, 1998

Rule 3 shall apply in case of persons returning from Hong Kong. As Hong Kong is a separateCustoms Territory from China.

Circular No.125/7/2010-

Services provided by state governments under Centrally Sponsored Schemes (CSS) notleviable to service tax. Grant cannot be presumed as a consideration forproviding a service.

N.No. 36/2010 Exemption to advances received prior to 1-7-2010 towards 8 new services introduced and


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specified existing services expanded by Finance Act, 2010 are exempt to the extent of amountof advance payment received before 1-7-2010 in respect of them.However any advance payment relating to retrospective amendments in Commercial Training &Coaching Centre and Renting of immovable property shall not be so exempt.

NN 11/2010 CG exempts the taxable service provided to any person, by any other person for transmission of

electricity, fromNN- 32/2010 CG exempts the taxable service provided to any person, by a distribution licencee, a

distribution franchisee, or any other person by whatever name called, authorized todistribute power under the Electricity Act, 2003(36 of 2003), for distribution of electricity,

CBECCLARIFICATION Service tax on commercial training and coachingclarification whether donation is consideration -NO

Rule 6(7c)- promotionof Lottery ticket-optional S. Tax Rate

Rs 6000/- on every Rs 10 Lakh (or part of Rs 10

Lakh) of aggregate face value of lottery tickets

printed by the organising State for a draw

If the lottery or lottery scheme is one where the

guaranteed prize payout is more than 80%

Rs 9000/- on every Rs 10 Lakh (or part of Rs 10

Lakh) of aggregate face value of lottery tickets

printed by the organising State for a draw

If the lottery or lottery scheme is one where the

guaranteed prize payout is less than 80%

Rule 4A of Service TaxRules, 1994

Provided also that incase the provider of taxable service is aircraft operator providing theservice of air transport of passenger, an invoice, a bill or as the case may be, challan shall includeticket in any form by whatever name called and whether or not containing registration number ofthe service provider, classification of the service received and address of the service receiver butcontaining other information in such documents as required under this sub-rule..

Old amendment

Cir- 910/30/2009 the activity of transferring the goods from tankers into smaller drums cannot be said to be deemedmanufacture because the tankers cannot be termed as bulk packs.

Cir- 915/5/2010 the value for payment of excise duty for physician sample ( Free Sample ) would be the valuedetermined under Section 4A for the similar goods

Sec 3A Chewing tobacco, jarda scented tobacco and branded unmanufactured tobacco notified undersection 3A- duty paid on basis of production capacity

Cir 911/1/2010 Regularisation of CCR takenIf the assessee has already paid duty, and in a situation where there is no manufacture as held by the

Courts subsequently, and facts of the case are covered by the provisions of Section 5B of the CentralExcise Act, 1944, the assessee is at liberty to approach the Central Govt. for issue of appropriatenotification for regularization of the Cenvat credit availed.

Rule 4(2) SSI can take Full (100%) CENVAT credit on capital goods in one installment in the year ofreceipt of such capital goods in the factory.

For computer & its peripherals if removed after useshall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the


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for each quarter in the first year @ 10%

for each quarter in the second year @ 8%

for each quarter in the third year @5%

for each quarter in the fourth and fifth year @1%

for capital goods, other than computers and computer peripherals @ 2.5% for each quarter.]

Cbecclarification if the capital goods, on which Cenvat credit has been taken, are cleared as waste and scrap, even aftera period of 10 years, an amount equal to the duty leviable on the transaction value for such capitalgoods cleared as waste

Rule 4(5) CENVAT credit is allowed, in respect of jigs, fixtures, moulds and dies sent by manufacturer of finalproducts to:-another manufacturer for the production of goods, or

Cir 907/27/09- Input Written off fully- pay amt equal to CCR takenWIP Written off fully if not considered as manufactured goods - pay amt equal to CCR taken

Finished goods Written off fully, duty remitted u/r 21 CER 02- Reverse CCR

WIP Written off fully if considered as manufactured goods - duty remitted u/r 21 CER 02- ReverseCCR

Rule 6(6) CCR allowed on all the excisable goods exempt from customs duty when imported in India and aresupplied:-(a) against International Competitive Bidding; or(b) to a power project from which power supply has been tied up through tariff based competitivebidding; or(c) to a power project awarded to a developer through tariff based competitive bidding.

Rule 5 IP/IS (C. GOODS)USED in ori.r.t FP/OS exported

Principal input provides that if a manufacturer, first stage or second stage dealer, or an exporter is found to beknowingly involved in any of the specified contraventions, certain facilities would be withdrawn orcertain restrictions would be imposed on them.

Rule 15 Other than fraud- Confiscation and penalty (duty or 2000) w.i greaterUnder Excise-Fraud- additional penalty equal to duty for manufacturer u/s 11ACUnder S. Tax- Fraud- additional penalty equal to 100% to 200% of service tax for service provider u/s78

Fibre Foils Ltd-penalty imposable u/r 15 cant be reduced.Green Alloys Ltdinput cant be confiscated, If entered in stock register but not accounted in computer sheet. Ashok Kumar H. Fulwadhyapenalty cant be imposed on directors, where CCR wrongly availed by company.

Small Scale Industry

NN- 8/03 Relaxation from brand name restriction under the SSI exemption scheme extendedto plastic containers and plastic bottles used as packing materials on 27 feb 2010 by NN 4/2010and then amendment made on 30thapril 2010 and now word only packing material mentionedmeaning thereby every type of packing material eligible for exemption

CER 2002

Rule 11 pre-authentication of invoices is not required now.

Rule 8 1. E-payment mandatory if total duty paid of Rs. 10 lakh or more (including the amount of duty paid


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by utilisation of CENVAT credit) in the preceding financial year.

2. Now SSI can PAY DUTY ON QUARTERLY BASIS RATHER THAN ON MONTHLY BASIS upto 5thof next Quarter. For the Quarter of March 31st march

Rule 12(2A) Annual installed capacity statement Exempt for assessee who manufactures

biris, manufactured without the aid of machines falling under tariff item 2403 10 31matches manufactured without the aid of power falling under heading 3605

reinforced cement concrete pipes falling under heading 6810

Rule 16 Indian Aluminum Co Ltd (2009)(Kerla)- there is no requirement for manufacturer to clear thereturned goods to same party who returned the goodsCircular 267/44/2009- dtd 25-11-091. CCR of duty paid on returned final product can be taken on basis of self-invoice issued at time

of initial removal of final productgoods are sold on 1-7-2010 of value of Rs 100000 by Raja by which duty payable is 10300, which arereturend by customer on 6-7-2010. Duty will be paid by 5-8-2010, whether CCR can be taken on 6-7-2010 and on basis of which document.- yes

Rule 18 Rebate under Rule 18 of CER 2002 is admissible when the goods are supplied from unit in DTA to

SEZSec 9A Offences non cognisablei.e no arrest without warrant

Compounding of offences- Any offence can be compounded by application to Chief CCENo compounding in following cases1. If compounded allowed once to certain offences of sec 92. Any person who accused of offence under CEA 1944 & which is also offence in Narcotic Drugs

Act.3. Allowed to compound once for Value exceeding 1 crore4. Who is convicted by court under CEA 1944 on or after 30 thdec 2005

Rule 24A Return of records seized, if not relied upon- then return within 30 days of issue of SCN (or expiry of periodpermissible for issue of SCN)Note- CCE has power to further retain by reasons recording in writing and CEO intimate to

assessee for such further retention

CCE (A) cant remand the case back to Central excise officer

Cir- 889/09/2009 No discretion to reduce the mandatory penalty under section 11AC even though the duty paidbefore the issuance of show cause notice

Cir No.898/18/09

Benefit of reduced penalty under provisos to section 11AC not available at theappeal stage

Cir 7/2010 Recovery of drawback amount on the portion of the FOB value of export not realized by theexporter but compensated by ECGC -

NN- 14/2010 Any service provided for all activities pertaining to construction of installations, structures and vessels forthe purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof.Or services provides to such installations in continental shelf and EEZ liable to service tax

Rule 6 STR 1994 E-payment mandatory if paid the total service tax of Rs. 10 lakh or more (including the amount of servicetax paid by utilisation of CENVAT credit) in the preceding financial year.

Rule 6(2)(v) - value of Taxable service not include

the taxes levied by any Government on any passenger travelling by air, if shown separately on

the ticket, or the invoice for such ticket, issued to the passenger.


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NN- 18/09- No service tax on certification by Central Board of Film Certification because it is a statutory

function

NN-11/2010 CG exempts the taxable service provided to any person, by any other person for transmission ofelectricity,

Export & importRules forservice tax

export & import rules amended in respect of following1. India definition amended2. CA/CS/CWA category changed from performance category to Residuary category

Jai Bhagwan oil and FlourMills

Production of mustard oil and oil cake from mustard seeds amount to manufacture

TARPAULININTERNATIONAL

tarpaulin made-ups which are prepared after cutting and stitching the tarpaulin fabricand fixing the eye-lets would NOT manufacture

Sony Music Entertainment(I) Pvt Ltd.

Importing recorded audio and video discs in boxes each containing 50 discs. Eachindividual disc then packed in jewel boxes not amounting to manufacture.

Cir 904/24/09 Baggase. Aluminium/zinc dross and other product termed as waste are capable of beingsold for a consideration. Hence marketable and liable to excise duty.

Bata India Ltd Theoretical possibility of product being sold is not sufficient to establish marketability ofproduct. The fact that product is sent outside for job work doesnt establish its marketability.

Bemcee Ltd Process of Slitting and cutting coils to produce steel sheets and polyster films doesnot amount to manufacture.

KarnatkaVidyuthKarkhaneLtd.

Repair of Transformers by replacing coils not manufacture.

Solid & Correct engineeringWorks (2010)(sc)

Affixation of Asphalt Drum/ Hot-mix Plant by nuts and bolts on foundation on earth to ensurewobble- free operation of the plant Movable

Larsen &Tourbo Limited(2009)(Bom)

Fabrication, assembly, erection of waste water treatment is immovable. Merely bringing ofduty paid parts at site doesnt amount to manufacture.

Virgo industries(Engineers) Pvt. Ltd.

Signage Erected at Various petrol bunks of IOC are movable because capable of beingshifted from one place to another without dismantling them.

MEHTA & CO. chairs, beds, tables, desks, etc., affixed to the ground ARE movable

MEDLEYPHARMACEUTICALS LTD.

SAMPLES of medicine are marketable even though cant be sold as Per Drug Act, and henceliable to excise duty.

Textile corpnmarathwadaLtd

If assessee has to pay the excise duty at each and every stage of manufacturing, but notpaid. No duty recovered because it would be entitled to Cenvat credit.

Remission of duty= R 21CER 02

if FP lost or destroyed or unfit for consumption for marketing before removal- DutyRemitted. As per rule 3(5C) CCR 04, CCR reversed on IP, if duty remitted on FP.

Hindustan Zinc Limited Remission can be claimed on loss of goods due to de-bagging, shifting of concentrates,seepage of rain water, storage and loading on trucks, accounting method adopted.

Gupta metal sheets No remission of duty u/r 21 in case of theft or dacoity

ValuationCir 902/22/2009 In case of job work value shall be determinder as per Rule 10 A on transaction value of

Goods sold by Raw material supplier.

Ford India Pvt. Ltd. Extended warranty charges were not includible in the assessable value of cars.MarutiSuzuki India Ltd. cost of pre-delivery inspection and after sale services would form part of the


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assessable value

Xerographic Ltd. In case of Related person TV acceptable if no extra commercial considerationfollowed.

ClassificationPleasanttime products Scrabble cannot be said to be a puzzle rather it is a GAME.

Godrej industries hair dye cannot be classified as hair lotion under tariff Item 14F.

Chamdany industries Carpet classifiable as Jute Carpet. In view of chapter note as per Rule 1

CPS Textiles P Ltd description of the goods as per the documents submitted along with the Shipping Billbe a relevant criterion for the purpose of classification, if not otherwise disputed onthe basis of any technical opinion or testseparate notice is not required to be issued for payment of interest which ismandatory and automatically applies for recovery of excess drawback

Xerox India Ltd Xerox Regal classified under heading 8471Frito Lay India cheetos Masala Balls, Cheetos Cheese Puff and cheetos X&O classified under heading

2108

Cenvat creditRule 3 (7) 100% EOU can take CCR of CVD, Special CVD, (EC, SHEC of excise0Madras cement Ltd Capital goods used in mines - Mines if captive mines so as to constitute one integrated unit

with concerned cement factory, Cenvat credit available - Mines if not captive mines butsupply to various other cement companies of different assessees and goods used in minesoutside factory of assessee, credit not available

Rajasthan spinning &Weaving Mills Ltd

steel plates and M.S. channel was accessory to diesel generating set and hence capitalgoodsand credit thereon admissible

Okasa Ltd The plastic dropper packed with the pediatric drops should be construed to be an input usedin or in relation to the manufacture of the final product.- CCR allowed

Bhuwalka Steel Industries Transit loss- normal- CCR allowed as per industry norms for volatile and hygroscopicsnature. Minor variation due to weighment difference by different machine ignored

Ambuja cements Eastern

Ltd

Welding electrodes are inputs and CCR allowable.

BANSAL ALLOYS &METALS LTD.

No reversal of Credit on input service in respect of Goods Transportation Agency service

Tata engineeringLocomotive Co Ltd

CCR allowed on input consumed in quality control test and cleared as scrap.

Banco products (india) Ltd. CCR allowed on Plastic crates either as input or capital goods.Stelko Strips Ltd. CENVAT credit be taken on the basis of private challans

Fibre foils ltd tribunal is not empowered to reduce penalty imposable under rule 15 of CCR 2004

Green alloys pvt ltd Input cant be confiscated under rule 15 of CCR 2004 on the ground of non-accountalof inputs in the records maintained in computer

Coca cola India Pvt. Ltd.- CCR allowed on service tax paid on advertisement service, even if advertisement was ofcold drinks manufactured out of concentrate on which duty has to be paid.

Marutisuzuki CCR not allowed on naptha used for generation of electricity cleared to joint venture.Ambuja cement Credit admissible on GTA serviceif ownership of goods remain with seller till delivery at

customers doorstep

AlidharaTextool EngineersPvt. Ltd.

CCR allowed on Erection, commissioning and installation service received at premises ofbuyer of machine, but not rendered at factory of manufacturer.


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Tata Advance Material If capital goods destroyed after 5 years, no CCR Reversal. But if cleared as waste then asper rule 3 (5A) pay amount equal to duty leviable on transaction value.

Jaya mills If depreciation and CCR both claimed, subsequently if income tax return revised bywithdrawing depreciation. CCR not required to be reversed.

Ashok kumar h Fulwadhya Penalty cant be imposed on directors of company for wrong availment of CCR. Bipac India Corporation Ltd No reversal of CCR on Capital goods destroyed after many years of use. But if cleared as

waste & scrap, then duty leviable on transaction value.Karnatka Soaps &Detergents Ltd- CCR allowed on supplementary invoice issued due to fraud by one unit to another unit of

same manufacturer in case of captive consumption

Raymond Ltd- CCR allowed even if different name of manufacturer indicated in invoice, so long as there isno discrepancy in description or quatilty or value of goods and no fraud.

SMALL SCALE INDUSTRY

Unison Electronics Pvt. Ltd in case of sale to Unite Tele-Shopping (UTS) and tele-Shopping Network (TSN), thesupervisors ofr UTS and TSN used to examine the goods and affix a sticker thereoncontaining the names of UTS/TSN. SSI exemption not allowed.

Deora EngineeringWorks

the clearances of two firms having common brand name, goodsbeing manufactured in the same factory premises, having commonmanagement and accounts etc. can be clubbed for the purposes ofSSI exemption

Superior Products Where the 2 unit have separate legal identity with separate capital, premises, machinery andlabour; the fact that they are managed by same person or that their products are samecannot mean that they are dummy units and their clearances should be clubbed for thepurposed of SSI-exemption.

Demand, Refund & Appeal

Accrapac (India) Pvt.Ltd.

that non-disclosure as regards manufacture of Denatured Ethly Alcohol will notamounts to suppression of material facts and hence it will not attract the largerperiod of limitation under section 11A.because Dept. was aware of Facts.

Gem Properties (P) Ltd Merely because assessee has sustained loss more than the refund claim, it is not acase of unjust enrichment sincethe assessee failed to prove that duty in the cost ofproduction is not included

SICOM LTD Secured creditors have preference over Governemnt dues

SKF India Ltd Differential duty is paid immediately upon the recovery of price difference through

issuance of supplementary invoice, interest shall still be payable on such differential

duty.

RAJASTHAN SPINNING &WEAVING MILLS

11 AC PenaltyNot applicable to every case of Non- payment/ short payment

Penalty If SCN under 11A (1) state that duty escaped due to conscious & deliberate

doing and order u/s 11A(2) confirms this i.e fraud

Penalty levied, even if duty paid before SCN in case of fraud INTERNATIONAL AUTO

LTD.

Duty will be payable in case of retrospective recovery of increased value. Interest

will also be payable. MRF case not applicable.

Aman Medical products

Ltd.

refund claim of the appellant was maintainable under section 27 and the non-

filing of the appeal against the assessed bill of entry did not deprive the appellant

to file its claim for refund under section 27 of the Customs Act, 1962.

Narayan

NambiarMeloths

refund claim cant be denied only on the basis of contention that he had

produced the attested copy of TR-6 challan and not the original of the TR-6


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challan?

AP SPINTEX LTD ED recovered from buyer credit notes issued subsequently Doctrine of Unjust Enrichmentnot applicable

Trilux Electronics an appeal against the consent order cannot be filed by the Revenue.

Appeals

Electronics Corponation

of India Ltd.

One cannot possibly expect timely clearance by CoD for filing appeal by PSU. In such

cases, grant of clearance to one and not to the other may result in generation of moreand more litigation. The mechanism has outlived its utility. In the changed scenario,time has come to recall the directions of the Supreme Court in its various earlierOrders setting up the said mechanism

Advance Ruling

UAE Exchange Centre Ltd. a writ petition can be invoked against advance rulings.

Settlement commission

Vishwa Traders Pvt ltd If case referred back to Department then Revenue shall continue the adjudicationproceedings from the stage at which the proceedings before Settlement Commissioncommenced

Ashwani Tobacco Co. Pvt.Ltd.

Benefit under the proviso to section 11AC could not be granted by the SettlementCommission in cases of settlement.

East and West ShippingAgency

order of the Settlement Commission be considered to be a judicial proceeding

SanghviReconditioners

Pvt. Ltd.

the appellant could not be permitted to dissect the Settlement Commission's

order with a view to accept what is favourable to them and reject what is not.

Cus. & C. Ex. SettlementCommission

Settlement Commission have jurisdiction to settle cases relating to the recovery ofdrawback erroneously paid by the Revenue

customDecorative Laminates (I)Pvt. Ltd.

If imported goods warehoused and then extension taken and goods not cleared evenafter expiry of extended period. application for remission of duty under section 23 ofthe Customs Act, 1962 not allowed on the ground that the said goods had becomeunfit for use on account of non-availability of orders for clearance.

Paras Fab International issue for use by 100% EOU would not amount to clearance for home consumption.

Miscellaneous - custom

Alfred Menezes in case of prohibited goods, there is discretion in the officer to release the

confiscated goods

Poona Health Services In case the imported goods are confiscated, and goods are not redeemed by

paying fine, the importer is bound to pay the customs duty

Gawar Construction Ltd. the notice for confiscation is required to be issued to owner when owner is in

possession of goods and goods are seized from his custody. In case of seizure ofgoods from the custody of person other than importer, notice must also be given

to person from whose custody goods were seized

Jaya Singh VijayaJhaveri Is the want of evidence from foreign supplier enough to cancel the confiscation

order of goods undervalued?- No

SanghviReconditionersPvt

Ltd

the appellant cannot be permitted to dissect the Settlement Commissions order with a viewto accept what is favourable to them and reject what is not


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Finesse Creation Inc. improperly imported goods are liable for confiscation under sec 111 of the

Customs Act, 1962, if the same are cleared and not available for seizure.

Redemption fine cannot be imposed with regard to such goods.

Infotech Software Dealers

Association (ISODA)

in the transactions taking place between the members of ISODA with its

customers, the software is not sold as such, but only the contents of the data

stored in the software are sold which would only amount to service and not sale.

VahooColour Lab components of sale of photography, developing and printing etc. were clearly distinct anddiscernible than that of photography service. Photography was in the nature of workscontract and it involved the elements of both sale and service, therefore, the service tax wasnot leviable on the sale portion.

P. C. Paulose once the licence was given by the Airport Authority (i.e authorized ) to the assessee topermit entry and allow enjoyment of services provided to the visitors, the assessee was aservice provider though he was acting only as an agent and therefore, was liable for servicetax.

KaramchandThapar& Bros.

(Coal Sales) Ltd.

a) The deeming provision under Rule 4(5) of Service Tax Rules, 1994 providing that

registration certificate deemed to have been granted if not granted within seven daysfrom the date of receipt of application is applicable only to registration granted bySuperintendent of Central Excise and not to centralized registration granted under Rule4(2).

b) Though no time limit is specified for grant of centralized registration, however the samecannot be indefinitely delayed and be granted within reasonable time and seven dayscan be considered as reasonable time.

BSBK Pvt. Ltd service provided by way of advice, consultancy or technical assistance in the caseof turnkey contracts attract service tax and turnkey contracts can be vivisected.

Nagarjuna ConstructionCompany Ltd

the option for composition scheme under works contract service be exercisedBEFORE payment of service tax on a particular works contract

SHUBH timb Steels Ltd Service tax on renting of immovable property is constitutionally valid.Mahavir generics commission agent also acting as a consignment agent be covered under the

definition of clearing and forwarding agent

Bajaj auto Finance Hire purchase finance not liable to service tax

Madras Hire Purchase

Association

levy of service tax on hire purchase and leasing transactions falling under

section 65(12) of the Finance Act, 1994 is constitutionally valid

Idea MobileCommunications Ltd.

the value of SIM card supplied by the assessee would form part of the value

taxable service on which service tax was payable by the assessee.

Nahar Industrial

Enterprises Ltd.

service tax is not chargeable on the buffer subsidy provided by the Government

for storage of free sale sugar, under the category of `storage and warehousing

services

SERVICES- MUST DO FROM CHARTS- ALREADY PROVIDED TO ALL OF U IN AMENDMENT BOOKLET