Covers August 2014 - Bizsolindia · 2017. 11. 10. · Bizsol UPDATE August - 2014 3 CUSTOMS Notifications: Tariff • No New Notifications Non-Tariff • W.e.f 31.07.2014 Hindon,

Bizsol UPDATE August - 2014

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The world is at war. The only difference between adeclared war and what is happening now is thatin a conventional battle the fight is between enemies

whereas what we witness today is akin to an implosion

bent on self destruction of the mankind. Nearly two

hundred Dutch nationals on board a Malaysian airline

perished in Eastern Ukraine. Those who died might

not have even heard of a country by the name Ukraine.

Another Malaysian airline with passengers from many

nations vanished in thin air. The Chinese who find

answers to all the problems of the world are wondering

why their citizens happened to become the victims

and more importantly what actually happened to them.

Iraq is imploding after the Americans left. Afghanistan

has become a no man's land. Gaza is burning and

the world is watching helplessly in horror at the

massacre. The verdict is out. We have failed the next

generation.

There is something strikingly similar to two of the

greatest icons India has produced. Dr. Manmohan

Singh and Mr. Narayan Murthy. The former is arguably

the most celebrated economist the country has

produced before becoming the Finance Minister of

the country. As FM he changed the economic

landscape of the country. Narayan Murthy on the other

hand is the ultimate example of a self made

entrepreneur who lived a dream few would have

dared to dream. He defined a corporate value system

so much so he came became the living authority on

all matters concerning corporate governance. The

similarities do not end there. When both of them came

back in their new avatars both of them failed so badly

that their earlier contributions got obliterated in the

process. For a long time to come management

experts would debate their leadership characteristics

when their legacies are recorded for posterity. There

will be enough lessons to learn from them on

situational leadership looking at the way they delivered

FROM THE DESK OF THE CHAIRMAN

or failed to deliver results in vastly changed

circumstances.

In the last two months or so since assuming office we

are perhaps getting a glimpse of the new Prime

Minister's working style. He has allowed what the

Parliament wants to do with without disruptions.

Without betraying any symptom of disrespect he has

chosen to ignore the proceedings in this august

House. Despite his conspicuous absence, Rahul

Gandhi claimed that there is only one man's word

that is heard in the Parliament. That is the power of

Modi's silence. When the self appointed guardians in

the TV studios are serving volleys of questions at the

PM demanding responses on issues ranging from

shortfall in monsoon rains to judicial reforms even the

usually voluble spokespersons of the ruling party are

giving the studios a royal miss. That is how Modi s

demonstrating the power of silence. For him silence

is a strategic tool unlike the erstwhile PM for whom

silence was a mandatory requirement to continue in

office. Modi, like Dhoni may look unconventional; but

he is certainly working to a plan. He may never have

a separate Defence Minister in the foreseeable future.

What looks like an ad hoc combination of ministries

may be a permanent arrangement for all that you

know. He appears comfortable dealing directly with

the bureaucrats. In the area of foreign affairs he is

getting his feet wet with his trips to Bhutan and Nepal

before launching himself on the big stages at

Washington and London. Even as Modi digs his heels

in at Delhi, Congress is going through an identity crisis.

Having been a ruling party all these years, barring a

few, the party is in throes of an identity crisis. For

them even now it is the Opposition that is ruling. It still

considers itself as the natural party of governance.

When last seen and heard the Congress MPs were

in the process of taking lessons in the fine art of 'well-

invasion' in the Parliament. BJP is getting its own


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medicine back duly repackaged and rebranded.

On the economic front the new government is taking

some significant measures. Modi government has

opted for a muscular stand unlike in the past in the

ongoing WTO negotiations. The government will

somehow push the insurance Bill in the Rajya Sabha

allowing increased FDI investments in that sector.

Now with the Gujarat and Madhya Pradesh

governments on board the Goods and Services Tax

could become a reality sooner than later.

Just as we are preparing to go to press here comes

some breaking news. Having got accustomed to the

bullying tactics adopted by the enforcement authorities

an assessee often subjects himself to their demands

often times beyond what the statute expects. The trust

deficit between the tax authorities and the assessees

is so great that inspector raj just got replaced by

auditor raj so much so the Department started

assuming draconian powers through executive orders

far exceeding what is statutorily permissible. In this

background comes a recent judgement of the Delhi

High Court restraining the Service Tax authorities from

crossing the red line of what they are empowered to

perform. The Finance Act permits the authorities to

conduct special audits under certain circumstances.

However, there are no substantive powers conferred

on them to go ahead and conduct exhaustive scrutiny

of records in the guise of audits by the Department.

Similar views have been expressed by Allahabad and

Calcutta High Courts also in two other matters. Though

the orders of the Delhi High Court are based on sound

logic and rational reasoning, knowing the bureaucratic

thought process, the last word on this issue may yet

to be spoken.

Ashok Nawal is the man of the moment. And then

why not? He has just been elected as the Chairman

of the Western India Regional Council of the Cost

Accountants of India. We at Bizsol doff our hats and

offer our compliments to him and wish him all the very

best in his new role. That is not all. At a personal level

he has decided to capture the agonies and ecstasies

he experienced by writing a chronicle after he met

with the debilitating accident not long ago. This short

book to be released later this month is sure to help

motivate and inspire anyone who has otherwise some

reason to despair. We at Bizsol are eagerly awaiting

the release of the book. We have reason to be proud

of Nawal for one more reason.

Thank you.

Venkat R. Venkitachalam


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CUSTOMSNotifications:

Tariff

• No New Notifications

Non-Tariff

• W.e.f 31.07.2014 Hindon, Ghaziabad has been

added in the list of Customs Airports for

Unloading of imported goods and loading of

export goods or any class of such goods related

to Ministry of Defence, Government of India and

the same would continue till 30.05.2015.

[Notification No. 54/2014-Customs (N.T),

Dated 21-July-2014].

• Tariff Value of Imported goods have been further

amended as given below:

[Notification No.55/2014-Customs (N.T),

Dated 31-July-2014].

Sl. Chapter/ heading/ Tariff value

No. sub-heading/ Description of goods US $ (Per

tariff item Metric Tonne)

1 1511 10 00 Crude Palm Oil 836

2 1511 90 10 RBD Palm Oil 874

3 1511 90 90 Others - Palm Oil 855

4 1511 10 00 Crude Palmolein 884

5 1511 90 20 RBD Palmolein 881

6 1511 90 90 Others - Palmolein 883

7 1507 10 00 Crude Soyabean Oil 927

8 7404 00 22 Brass Scrap (all grades) 4075

9 1207 91 00 Poppy seeds 3255

10 71 or 98 Gold, in any form, in respect 421 per

of which the benefit of entries 10 grams

at serial number 321 and 323 (US $)

of the Notification No.12/2012-

Customs dated 17.03.2012 is

availed

11 71 or 98 Silver, in any form, in respect 671 per

of which the benefit of entries kilogram

at serial number 322 and 324 (US $)

of the Notification No. 12/2012-

Customs dated 17.03.2012 is

availed

12 080280 Areca nuts 1912

(US $ Per

Metric Tons )

Safeguards:


Anti-Dumping Duty:

• Anti-dumping duty on "Steel and fibre glass

tapes and their parts and components",

originating in or exported from the People's

Republic of China & imported into India, imposed

vide Notification No. 49/2009-Customs dated 15-

May-2009 valid till date 15-May-2014 has been

further till 14-May-2015. [Notification No. 29/

2014-Customs (ADD) Dated 04-July-2014]

• Anti-dumping duty on "Front Axle Beam and

Steering Knuckle meant for heavy and

medium commercial vehicles" falling under the

tariff items 7326 9099, 7326 1910, 7326 1990,

8708 5000, 8708 9900, originating in, or exported

from, the People's Republic of China & imported

into India, have been imposed vide notification

no 50/2010 dated 12-Apr-2010 shall remain in

force up to 14-June-2015 unless revoked earlier.

[Notification No. 30/2014-Customs (ADD)

Dated 23-July-2014]

• Anti-dumping duty on "Carbon Black used in

rubber applications", falling under Chapter 28,

originating in, or exported from, the People's

Republic of China, Russia and Thailand, imposed

vide Notification No. 9/2013-Customs dated 26-

Apr-2013 valid till date 29-July-2014 has been

further extended for a period of 1 years upto 29-

Jul-2015 unless revoked earlier. [Notification


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No.31/2014-Customs (ADD) Dated 23-July

2014]

• Anti-dumping duty on "Phosphoric Acid of all

grades and all concentration (excluding

Agriculture or Fertilizer grade)", falling under

Chapter 28, originating in, or exported from,

Korea (RP), imposed vide Notification No. 140/

2009-Customs dated 15-Dec-2009 valid till date

21-June-2014 has been further extended for a

period of 1 year & shall remain in force upto &

inclusive of 21-June-2015 unless revoked earlier.


Dated 23-Jul-2014]

• Anti-dumping duty on "Vitamin C", falling under

Chapter 29, originating in, or exported from, the

People's Republic of China, imposed vide

Notification No. 67/2009-Customs dated 16-

June-2009 has been further extended for a period

of 1 year & shall remain in force upto & inclusive

of 15-June-2015 unless revoked earlier.


Dated 23-Jul-2014]

• Anti-dumping duty on "Potassium Carbonate",

falling under Chapter 28, originating in, or

exported from, the European Union, the People's

Republic of China, Korea RP and Taiwan,

imposed vide Notification No. 61/2009-Customs

dated 10-June-2009 has been further extended

for a period of 1 year & shall remain in force upto

& inclusive of 9-June-2015 unless revoked

earlier. [Notification No. 34/2014-Customs

(ADD) Dated 23-Jul-2014]

• Anti-dumping duty on "Rubber Chemicals,

namely, MBT, CBS, TDQ, PVI, TMT and PX-

13(6PPD)", falling under Chapter 29 or 38,

originating in or exported from the People's

Republic of China and "PX-13(6PPD)" originating

in or exported from Korea RP and imported into

India, has been imposed for a period of 5 Years

from the date of publication of this notification

and shall be payable in Indian currency.


Dated 24-Jul-2014]

• Anti-dumping duty on "Purified Terephthalic

Acid", falling under tariff 2917 36 00, originating

in, or exported from the People's Republic of

China, European Union, Korea RP and Thailand

and imported into India, has been imposed for a

period not exceeding 6 months (unless revoked,

amended or superseded earlier) from the date

of publication of this notification and shall be

payable in Indian currency. [Notification No. 36/

2014-Customs (ADD) Dated 25-Jul-2014]

Circulars / Instructions:• No New Circular / Instruction

CENTRAL EXCISE

Notifications

Tariff• No New Notifications

Non-Tariff


Circulars

• It is clarified that the in respect of fertilizers for

which subsidy is provided by the Government,

the excise duty will be chargeable on the MRP

and not on the subsidy component provided by

the Government. [Circular No.983/7/2014 dated

10-Jul-2014]

Instructions

• No New Instructions

SERVICE TAX

Notifications• No new notifications

Circulars / Instructions

• No new circulars / instructions!!

FOREIGN TRADE POLICY

Notifications:• Amendment to Import policy of the item 'foie gras'

covered under EXIM Code 0207 43 00 in Chapter

2 of ITC(HS), 2012 Schedule I (Import Policy)

has been revised from 'free' to 'prohibited'.

[Notification No. 87 (RE-2013)/2009-2014

dated 03/07/2014]

• (i) The quantity ceiling for export of organic

sugar has been removed till the time export

of sugar is permitted "Freely".


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(ii) Export of organic sugar would be permitted

subject to registration of quantity with DGFT

and certification by APEDA as sugar being

organic sugar.

(iii) There is no change in other conditions

relating to export of sugar.

[Notification No. 88 (RE - 2013)/2009-

2014 dated 04/07/2014]

Public Notices:• The PSIA Agency named Alex Stewart

International (Aust) Pty. Ltd., Australia is be ing

de-listed from Appendix 5 and made ineligible to

issue Pre-Shipment Inspection Certificate with

immediate effect. [Public Notice No. 64

(RE:2013)/2009-2014 dated 04/07/2014]

• 8,100 MTs of raw sugar (at 98 degree Pol) is

permitted to be exported to USA under TRQ by

M/s. Indian Sugar Exim Corporation Ltd. for the

US fiscal year 2014 (October 1, 2013 to

September 30, 2014) by following the existing

procedure for issue of GSP Certificate as well as

other certification requirement, if any. [Public

Notice No. 65 (RE:2013)/2009-2014 dated 04/

07/2014]

• SIONs A1143, A1170, A3627 and K134 have

been reinstated with the amendment that the

import items listed in column 3 have been

substituted by items listed in column 4 below.

[Public Notice No. 66 (RE:2013)/2009-2014

dated 11/07/2014]

• VKGUY benefit on Skimmed Milk Powder has

been withdrawn with immediate effect and said

is deleted from Appendix 37 A, Table-2 of Hand

Book of Procedure (Vol.I). [Public Notice No.

67 (RE:2013)/2009-2014 dated 15/07/2014]

Trade Notice

• No new Trade Notice

INCOME TAX

Notification:• CBDT Revises Form 3CA, 3CB and 3CD

required to be filled under section 44AB of Income

Tax Act, 1962. [Notification 33/2014 dated 25th

July 2014]

Circular:

• Clarification regarding taxation of 'Alternate

Investment Funds' having status of non-

charitable trusts under the Income-tax Act, 1961.

[Circular 13/2014 dated 28th July 2014]

MVAT

Notifications• Dealer who has not filled any returns for the

periods upto February 2014 which were due for

filling and has not been filled upto 01st April 2014

may file such returns on or before 30th Sept 2014

Particulars Existing entry Amended entry

1 2 3 4

SION Export Import Import

No. items items items

A3627 Glass Vials/Phials/Ampoules/ Per-fume Bottles /NailEnamel bottles/F o u n d a t i o nBottles/ Miniature/Cream Jars(Glass Scrap/Cullet Route)

1. Glass Formers namely,

(e) Rutile

1. Glass Formers namely,

(e) FormerRutile grade

Particulars Existing entry Amended entry

1 2 3 4

SION Export Import Import

No. items items items

K134 Glass Mosaics 2. F o r m e r s(Fluorspar, Rutile)

2. F o r m e r s(Fluorspar, Rutilegrade)

9. P igmen ts /Colour-ing Agents(Cobalt Oxide,Nickel Oxide, Ox-ides of Iron, Chro-mium, TitaniumDioxide)

9. P igmen ts /Colouring Agents(Cobalt Oxide,Nickel Oxide, Ox-ides of Iron, Chro-mium, TitaniumDioxide other

than Rutile

grade

4. Other SpecialAdditives namely,

(c) NucleatingAgents (TitaniumDioxide)

4. Other SpecialAdditives namely,

(c) NucleatingAgents (TitaniumDioxide other thanRutile grade)


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by paying late fees of Rs. 1000/-provided the tax

is paid along with interest on or before 30th Sept

2014. [Vat Notification 1514/CR-44/Taxation

dated 9th Jul 2014]

Trade Circular

• A dealer who has not filed the return that was

due on or before 1st April 2014 may file such

return upto 30th Sept 2014 by paying fee of Rs.

1000 for each return instead of Rs. 5000/-

provided such dealer must also pay tax & interest

payable as per return upto 30th Sept 2014.

[Circular 13/2014 dated 28th July 2014]

COMPANY LAW

Notification• Insertion of new Rule 11 in The Companies

(Miscellaneous) Rules, 2014 clarifying that Any

application or form filed with the Central

Government or Regional Director or Registrar

prior to the commencement of these rules but

not disposed of by such authority for want of any

information or document shall, on its submission,

to the satisfaction of the authority, be disposed

of in accordance with the rules made under the

old Companies Act, 1956. [Notification vide

G.S.R. 506(E) dated 17-Jul-2014]

• Amendment in Rule 3 of The Companies

(Specification of definitions details) Rules, 2014

in respect of clarification on the definition of

Related Party after a word 'director' a word 'other

than an independent director' has been inserted.

[Notification vide G.S.R. dated 17-Jul-2014]

• Amendments in The Companies (Management

and Administration) Rules, 2014 as under:

Insertion of Proviso to sub rule 3 of Rule 9 stating

that provisions of sub-rule 3 stating to note the

declarations received for beneficial interest and

within 30 days from the date of receipt to file a

return in Form MGT.6 with ROC is not applicable

to a trust which is created, to set up a Mutual

Fund or Venture Capital Fund or such other fund

as may be approved by the Securities and

Exchange Board.

Omission of the words "either value or volume

of the shares" from Rule 13 about Return of

changes in shareholding position of promoters

and top ten shareholders.

Also in sub-rule (1) of Rule 23 for signature of

special notice the ceiling given for the members

holding shares on which an aggregate sum of

not less than five lakh rupees has been substituted

as " not more than five lakh rupees."

As well as Rule 27 stating about mandatorily

Maintenance and inspection of document in

electronic form having the word 'Shall' is

substituted with the word 'May'.

[Notification vide G.S.R. dated 24-Jul-2014]

• Now the Public companies engaged in multiple

businesses having paid up share capital of Rs.

100 Crore or more and having annual turnover

of Rs. 1000 Crore or more (decided on the basis

of latest audited balance sheet) and which has

appointed one or more Chief Executive Officers

for each such business are also required to

appoint Key Managerial Personnel as per

Section 203(1) of The Companies Act, 2013

without any restriction of first proviso to this

section stating that an individual not to be

appointed or reappointed as the chairperson as

well as MD or CEO at the same time.

[Notification dated 25-Jul-2014]

Circular• E-form MGT.14 for all the cases except for

Change of Name, Change of Object, Filing of

Resolution for Further issue of share capital and

conversion of Companies will be processed and

taken on record using the Straight Through

Process Mode (STP Mode). [General Circular

No.28/2014, dated 09-Jul-2014]

• In continuation to the earlier Circular Nos. 02/

2014 and 26/2014 directions are given to the

Registrar of Companies to exercise due care to

ensure that the name allotted to Companies/

Limited Liability Partnerships are not in

contravention to the provisions of Emblems and

Names (Prevention of Improper use) Act 1950.

[General Circular No. 29/2014, dated 11-Jul-

2014]

• Following Clarification has been issued on the

matters relating to Related Party transactions

covered under section 188 of The Companies

Act 2013:

In respect of second proviso stating that no

member shall vote on a special resolution to


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approve the contract or arrangement if such

member is a related party. It is clarified that

'related party' in this context be construed with

reference only to the contract or arrangement

for which the said special resolution is being

passed.

Applicability to Corporate Restructuring,

Amalgamation etc: Transactions arising out of

compromises, arrangements and amalgamation

dealt with under the specific provisions of

Companies Act 1956 / Companies Act 2013, will

not attract the requirements of this Section 188

of Companies Act, 2013 stating related party

transactions.

Requirement of fresh approvals for past contracts

under Section 188: No fresh approvals under

section 188 is required for the contracts entered

by the companies after making necessary

compliances under section 297 of the

Companies Act 1956. However any modification

on or after 01-Apr-2014 has to be done in

compliance with section 188 [General Circular

No.30/2014, dated 17-Jul-2014]

• Validity of 1930 cases for reservation of names

which has expired on 19-July-2014 has been

extended upto 18-Aug-2014. And for the 6864

cases where names are reserved and are yet to

be issued the time period as indicated in the

letters of intimation is allowed. [General Circular

No. 31/2014, dated 19-Jul-2014]

• It has been clarified that the resolutions passed

by the Companies under the Old Act of 1956

during the period from 01-Sept-2013 to 31-Mar-

2014, can be implemented as per the provision

of Companies Act 1956, subject to the condition

that implementation of the resolution commence

before 01-Apr-2014 and this transitional

arrangement is available upto expiry of one year

from the passing of the resolution or six months

from the commencement of New companies Act,

whichever is later. [General Circular No. 32 /

2014, dated: 23-Jul-2014]

• Ambiguity in respect of audit of Deemed

Government Companies has been clarified that

the Section 139(5) and 139 (7) of the New

Companies Act, 2013 has been covered the said

companies subject to audit by the Controller &

Auditor General in the same manner as

Government Companies. It is further clarified that

the words " any other company owned or

controlled, directly or indirectly …..... by the

Central Government and party by one or more

State GoDenlments' appearing in sub-sections

(5) and {7) of section 139 of the New Act are to

be read with the definition of "Control" given in

Section 2(27) of the New Act. [General Circular

No. 33 /2014, dated: 31-Jul-2014]

FEMA / RBI

(Important Notifications / Circulars)• The RBI has published new Master Circulars on

1st July '14 consolidating the latest updated

existing instructions on each of the subjects at a

single place. In each case, the list of underlying

circulars/notifications consolidated in that Master

Circular is furnished in the Appendix to the Master

Circular.

• As an amendment to Section 47 of the Foreign

Exchange Management Act, 1999 and a

modification to Notification No.FEMA.23/2000-

RB dated May 3, 2000, the Working Group

concept by the RBI with regard to turnkey projects

or civil construction contracts no longer applies;

any project on deferred payment basis for a

turnkey project must now have prior approval

from the EXIM Bank. [Notification No. FEMA.

310/2014-RB]

• As per a review of FEMA.120/RB-2004 dated July

7 2004, the RBI has decided to restore ODI/FC

limit by an Indian Party under the automatic route

to the limit prevailing prior to August 14, 2013.

But, any financial commitment exceeding USD 1

Billion (or its equivalent) in a financial year would

require prior RBI approval even when the total

FC of the Indian Party is within the eligible limit

under the automatic route (i.e., within 400% of

the net worth as per the last audited balance

sheet). [RBI/2014-15/117 (A.P. (DIR Series)

Circular No.1)]

• On a review of A.P.(DIR Series) Circular No.59

dated May 6, 2011, the RBI has now decided

that the Clean Credit i.e. credit given by a foreign

supplier to its Indian customer, without any Letter

of Credit/Letter of Undertaking/Fixed Deposits

from any Indian financial institution for import of

Rough, Cut and Polished Diamonds, may be


8

permitted for a period not exceeding 180 days

from the date of shipment. [RBI/2014-15/119

(A.P. (DIR Series) Circular No.2)]

• As an amendment to Notification No.FEMA20/

2000-RB, dated 3rd May 2000, the DIPP has

decided to switch to NIC 2008 for classification

of activities under industrial classification system.

Indian companies are now required to report the

details of the issue of shares/convertible

debentures/partly paid shares and warrants in

form FC-GPR, to the Regional Office of RBI within

30 days of issue. Transfer of shares, convertible

debentures, partly paid shares and warrants by

way of sale from a person resident in India to a

person resident outside India or vice versa, are

required to be reported by the transferor/

transferee resident in India to the AD-Bank in

form FCTRS within 60 days from the date of

receipt or payment of the amount of

consideration. Indian companies are required to

report the NIC Codes in the FCGPR and FCTRS

forms as per the NIC 2008 version, henceforth.

The RBI has also decided to introduce a uniform

State and District code list for reporting of details

of foreign direct investment by Indian companies

in Form FCGPR. The list can be accessed on

the RBI website. [RBI/2014-15/133 (A.P. (DIR

Series) Circular No. 6)]

• As per Notification No. FEMA 23/2000-RB dated

3rd May 2000, export of goods or services on

deferred payment terms or in execution of a

turnkey project or a civil construction contract

requires prior approval of the approving authority,

which shall consider the proposal in accordance

with the guidelines issued by the RBI. Also, as

per A. P. (DIR Series) Circular No. 118 dated

June 26, 2013, the time limit to submit form DPX

1 / PEX-1 / TCS-1 was increased to 30 days of

entering into contract and per A. P. (DIR Series)

Circular No. 51 dated September 20, 2013,

submission of forms DPX1, PEX-1, TCS-1 and

DPX-3 to the Regional Office of the RBI by the

Approving Authority (AA), such as, the AD Bank/

Exim Bank/Working Group has been dispensed

with. However, submission of these forms to

ECGC and Exim Bank where their participatory

interests by way of funded/non-funded facilities,

insurance /risk cover etc are involved shall

continue.

To further liberalise this process,

o The structure of Working Group will now be

dispensed with. The AD banks/Exim Bank

can now consider awarding post-award

approvals without any monetary limit and

permit subsequent changes within relevant

FEMA guidelines/regulations.

o The stipulation of time limit of 30 days for

the exporter undertaking Project Exports

and Service contracts abroad to submit form

DPX1/ PEX-1 /TCS-1 to the Approving

Authority (AA) will not apply henceforth.

[RBI/2014-15/153 (A.P. (DIR Series)

Circular No.17)]

• As per A.P. (DIR Series) Circular No. 122

dated April 10, 2014 relating to the all-in-

cost ceiling of Trade Credits for Imports into

India, the RBI has decided to continue with

the all-in-cost ceiling as specified in A.P. (DIR

Series) Circular No.28 dated September 11,

2012 which is provided below:

Maturity period All-in-cost ceilings over

6 months LIBOR*

Up to one year

350 basis pointsMore than one year and up tothree years

More than three years and up tofive years

Average Maturity Period All-in-cost over 6 month LIBOR*

Three years and up to five years350 bps

More than five years

The all-in-cost ceilings include arranger fee,

upfront fee, management fee, handling/

processing charges, out of pocket and legal

expenses, if any. [RBI/2014-15/152 (A.P. (DIR

Series) Circular No.16)

• A.P. (DIR Series) Circular No. 121 dated April

10, 2014 relating to the all-in-cost ceiling for ECB,

the RBI has decided to continue with the all-in-

cost ceiling as specified in A.P. (DIR Series)

Circular No.28 dated September 11, 2012 which

is provided below:

[RBI/2014-15/152 (A.P. (DIR Series) Circular

No.16)]


9

CBEC Notified Exchange Rate for Conversion of Foreign Currency w. e. f.8th August 2014 [Notification No.57/2014-Customs (N.T) Dated 7th August 2014]

SCHEDULE - I

S.No. Foreign Currency

Rate of exchange of one unit of foreign currency

equivalent to Indian rupees

(For Imported Goods) (For Export Goods)

1. Australian Dollar 57.70 56.30

2. Bahrain Dinar 167.45 158.25

3. Canadian Dollar 56.90 55.60

4. Danish Kroner 11.20 10.85

5. EURO 83.05 81.10

6. Hong Kong Dollar 8.00 7.85

7. Kuwait Dinar 223.00 210.65

8. New Zealand Dollar 52.75 51.25

9. Norwegian Kroner 9.95 9.65

10. Pound Sterling 104.55 102.25

11. Singapore Dollar 49.70 48.60

12. South African Rand 5.90 5.55

13. Saudi Arabian Riyal 16.85 15.90

14. Swedish Kroner 9.05 8.80

15. Swiss Franc 68.55 66.70

16. UAE Dirham 17.20 16.25

17. US Dollar 61.85 60.85

S.No. Foreign Currency

Rate of exchange of 100 units of foreign currency

equivalent to Indian rupees

(For Imported Goods) (For Export Goods)

1. Japanese Yen 60.80 59.30

2. Kenya Shilling 71.90 67.80

SCHEDULE-II


10

CENTRAL EXCISEv Delay in filling appeal due to illness of staff

who had signed the Appeal is sufficient

reason for condoning the delay: There was

delay in filling of appeal of 2 months and 19 days

due to illness of their staff who had signed the

appeal. This is the sufficient cause within the

meaning of Section 5 of Limitation Act, 1963 to

file appeal beyond statutory period prescribed

for its filling. Appeal cannot be dismissed on the

ground that Appeal has been signed by Staff of

the Assessee and not by the aggrieved person.

In this case, Assessee has filed Writ Petition

instead of appeal before High Court. When both

Writ Petition and Appeal could be filed in the High

Court, technicalities of choosing Forum not

significant. [2014(305)E.L.T.465-HC-Gau.]

v Penalty not imposable on transfer of capital

goods to sister concern within same

commissionerate for undertaking job work:

Assessee has transferred capital goods to sister

concern within same commissionerate for

undertaking job work. It is not disputed that the

capital goods on which credit was availed was

transferred for the purpose of doing job work to

the Assessee's own unit within the same

Commissionerate, hence, it cannot be said that

the assessee had cleared the capital goods to

another person or assessee. Considering the

revenue neutrality involved in this case penalty

has been set aside by the CESTAT which is

upheld by the Hon'ble Gujarat High Court.

[2014(305)E.L.T.476(Guj.)]

v Partner of Firm not liable to separate penalty as

he cannot to be equated with employee of the

Firm: Once Firm penalized, separate penalty not

imposable upon partner of Firm because Partner

is not a separate legal entity and cannot be

equated with employee of firm if no specific Rule

attributed to partner. Penalty has been set aside

by the Hon'ble High Court. [2014(305) E.L.T.480

(Guj.)]

v Unjust Enrichment: In this case Hon'ble Tribunal

has remanded back the matter to the

Adjudicating Authority for determination of unjust

enrichment. Further, in the appeal before Hon'ble

High Court, it is held that when there are

sufficient material and evidences available on

record on the aspect of unjust enrichment and

the parties has been entwined in litigation since

long, the Tribunal ought to have decided the

issue on merits. On the facts, the assessee had

produced cogent evidence and material to prove

that it had not passed on the burden of duty to

the Buyers of goods and there was no unjust

enrichment. When invoice produced by the

Assessee showed composite amount without

duty component and sale price remained the

same before as well as after reclassification,

revaluation, same showed that duty burden was

not passed on to the Buyers. Thus, there was

no unjust enrichment. [2014(305) E.L.T.510

(Guj.)]

v Penalty and interest when differential duty

paid after inspection but before issuance of

show cause notice: Section 11AB and 11AC of

the Central Excise Act, 1944 indicate that when

there is evasion in payment of duty, the person

who is liable to pay the duty shall also be liable to

pay penalty equal to the duty so determined, as

well as interest for the period in question. Thus,

payment of differential duty before issuance of

show cause notice will not put an end to the

penalty proceedings initiated against the

Assessee. Hon'ble Madras High Court has

remanded back the matter for consideration of

contention that entry having been reversed before

unitlization, it would not amount to taking credit

and so, assessee was not liable to pay penalty

and interest. [2014(305)E.L.T.519 (Mad.)]


11

v Reversal of Cenvat Credit on the Capital

goods: In this case issue involved was whether

the amount equivalent to the credit originally

taken on the capital goods has to be reversed or

not for the clearance after usages for a

considerable period, as Department was of the

view that credit originally availed on the capital

goods is to be reversed. Hon'ble Bench held that

the said issue should be examined in the light of

the decision of the Larger Bench in the case of

Navodhaya Plastic Industries and therefore,

orders set aside and remitted to the adjudicating

authority to decide the matter afresh after

considering the cited decision and the submission

in the context of utilization of unutilized credit.

[2014-TIOL-1354-CESTAT-MAD]

v Final conclusion cannot be drawn at Prima

Facie Stage: Assessee has filed appeal against

the order of pre-deposit by the Hon'ble Tribunal

directing to pre-deposit Rs 3.83 crores. In this

case, Hon'ble Tribunal came to the conclusion

that there was no evidence to prove the nexus

of services with manufacturing activities of the

Assessee. That finding in the given facts and

circumstances should not have been rendered

at the prima facie stage and more so when the

Assessee was complaining that the

Commissioner did not afford any opportunity to

the Assessee to meet the contents of certain

documents which have been relied upon. After

considering these facts Stay order has been

modified and directed to deposit a sum of Rs.1.25

crores in cash instead of 3.83 crores and furnish

a bank guarantee of any nationalized bank for

the balance sum. [2014-TIOL-1210-HC-MUM]

v Admissibility of Cenvat Credit on Rent-a-Cab

Service: Assessee has paid service tax on rent-

a-cab service during the period October, 2009

to September, 2010. Revenue has denied the

cenvat credit on the ground that the rented cabs

were not exclusively used for the purpose of

providing output service. Ld. Commissioner

(Appeals) has given a categorical findings that

the cabs in respect of which credit has been taken

were used for providing output service which

would clearly make the cenvat credit admissible.

In the appeal filed before Hon'ble CESTAT,

Department has merely stated that the cabs were

not exclusively used for the purpose of

maintenance etc. but have not given any

evidence to that effect and also no evidences

produced to counter that the observations made

in the Order-In-Appeal are factually incorrect.

Since, there is no infirmity in the Order passed

by the Ld. Commissioner(Appeals), appeal filed

by the Revenue has been rejected. [2014-TIOL-

1327-CESTAT-DEL]

v Cenvat credit not deniable when there is no

allegation of diversion or pilferage of the

goods: Assessee has received Cement through

water channel at Navi Mumbai from mother plant

located in Gujarat. Cement cleared from mother

plant on payment of duty as per weighment done

there and goods later shipped to JNPT and the

cement was unloaded into road tankers which

carried the cement to Assessee's factory at Navi

Mumbai. Loaded tankers were weighed at

weighbridge before and after unloading the

cement wherein difference in weight of cement

was found. Some times it is in excess and

sometimes there is short receipt. Department has

denied the credit when cement short received.

Assessee's submission was that the maximum

difference works out to 2% and which is only a

mirage difference. Hon'ble CESTAT held that

there is no allegation that goods have been

diverted during transit or there is any pilferage

of the goods during the course of transportation.

If the assessee had not weighed the inputs in

their factory they were entitled to take credit on

the quantity shown in invoice. Loss occurred only

due to the various methods of weighment and

therefore, CENVAT credit cannot be denied.

[2014-TIOL-1319-CESTAT-MUM]

v Cenvat Credit of duty paid on Outward

transportation service: There is decision of

Karnataka High Court in case of ABB Ltd. [2011-

TIOL-395-HC-KAR-ST] wherein cenvat credit

has been allowed on outward transportation but

there is a contradictory decision of Calcutta High

Court in Vesuvious India Ltd. 2013-TIOL-1038-

HC-KOL-ST. In view of two contradictory

decisions on the same issue, Assessee has


12

made out a case for 100% waiver of pre-deposit.


v Refund/Rebate under Rule 18 of the Central

Excise Rules 2002: Assessee has cleared

cenvat credit availed material to their SEZ Unit,

reversed corresponding credit under Rule 3(5)

of Cenvat Credit Rules 2004 and claimed rebate

of the same. Rebate sanctioning Authority

passed the Rebate claim which was further

agitated by the Revenue. Rule 18 of the CER,

2002 provides for rebate of duty paid on

excisable goods or duty paid on clearance in the

manufacture of processing of such goods. Since

the Assessee has claimed rebate on the duty

paid as input credit in the raw materials which is

prima facie covered by Rule 18 of the said Rules.

Accordingly, pre-deposit of duty is waived and

its recovery is stayed till disposal of appeals.


v Duty confirmed to be deposited at the time

of filling of appeal unless the same is

dispensed by the Appellate Authority:

Hon'ble CESTAT keeping in mind the undue

hardship that would be caused to the Assessee

and the interest of the Revenue, had shown

sufficient indulgence to the Assessee by granting

time to deposit a part of the tax demanded and

had also granted an extension of time for

compliance. In such circumstances, Tribunal had

rightly dismissed appeal for non-compliance of

the Stay Order. Section 35-F of the Central Excise

Act, 1944 makes it amply clear that the whenever

any appeal is filed, the person filing the appeal

should deposit before the adjudicating authority

the duty demanded or the penalty levied, unless

the same is dispensed by the Tribunal. In such

scenario, deposit as contemplated under Section

35-F of the Central Excise Act is not deposited,

the appeal is liable to be dismissed. [2014-TIOL-

1188-HC-MAD]

v Cenvat credit on Reinsurance service:

Reinsurance service is an "Input service" for the

Assessee engaged in the Life Insurance

Business. Hence, cenvat Credit is admissible to

the Assessee on the same. [2014-TIOL-1314-

CESTAT-BANG]

v Ratio of the earlier similar own decision to

be followed in the subsequent matter:

Assessee has taken credit on M. S. Angles, M.

S. Beams, M. S. Channels and TMT bars for the

erection of new plant and machinaries in their

factory by treating the same as 'components' as

it admissible in law. Department has denied the

credit on the ground that these are structures

fixed to earth with concrete foundations and

immovable, which is not covered under the

definition of 'capital goods' and relying on the

decision in the case of 2011-TIOL-73-SC-CX -

(Saraswati Sugar Mills). In the Assessee's own

earlier matter, Court has considered the case of

the assessee and had dismissed the appeal filed

by the Revenue. There are no changes in the

circumstances and no distinguishable facts or

issue contrary to the earlier decision of the Court.

Hence, following the principles laid down in the

decision of Rajasthan Spinning & Weaving Mills

Ltd. 2010-TIOL-51-SC-CX and the earlier

decision in the similar case, Appeal filed by the

Revenue is dismissed. [2014-TIOL-1185-HC-

MAD]

v Admissibility of Cenvat credit on doors, false

ceiling, compactor for document keeping,

sheets for roofing, flooring for finished

goods storage area, tube light fittings:

Whether all these goods can be considered as

'capital goods' was the subject matter of litigation.

Various conflicting views were being expressed

by various courts and the issue of admissibility

was finally decided by Larger bench in case of

Vandana Global Ltd.{2010-TIOL-624-CESTAT-

DEL-LB} in the realm of conflicting interpretations

given by various Benches of CESTAT and other

courts. Further, there was no any suppression/

misstatement on the part of the Assessee with

an intention to evade payment of duty, in such a

circumstance, extended period cannot be

invoked. Hence, without going into the merits of

the case, appeal has been allowed on the ground

of time bar alone. [2014-TIOL-1312-CESTAT-

AHM]

v Cenvated Capital Goods to be removed after

discharge of duty on the depreciated value:

Assessee had cleared/transferred the used


13

cenvated capital goods to their sister unit on

payment of excise duty on the transaction value,

which is less than the depreciated value. Further,

Adjudicating authority has arrived the value as

per the Valuation Rules, 2000, by taking the

depreciated value method as per Boards Circular

dated 01.07.2002. But Commissioner (Appeals)

has held that in view of the decision in Madura

Coats Pvt. Ltd. Vs. CCE; 2005-TIOL-891-

CESTAT- BANG no duty to be paid. Revenue

has filed appeal before Hon'ble CESTAT wherein

held that a decision to the effect that assessees

can bring in capital goods, use it for a few days

and then remove it without reversal of any

CENVAT credit taken is not consistent with the

overall scheme of CENVAT credit and can lead

to abuse of the scheme. Assessee should

discharge duty on the depreciated value of the

used capital goods in terms of the Boards

Circular dated 01.07.02 read with CBEC letter

dated 26.05.93. Considering merit in the

Revenue's appeal Order of adjudicating authority

has restored to the extent of confirmation of

demand of duty, interest and penalty set aside.


v Relevant date for computation of time limit

is the date on which the department acquired

knowledge regarding the activities

undertaken by the Assessee : Despite receipt

of the directions from the department, Assessee

failed to discharge excise duty liability. They also

did not submit details sought by the Department

and continued to drag the issue by prolonged

correspondence. Suppression of information on

the part of the assessee is clearly established.

Bona fide belief is not a blind belief and bona

fide belief has to be formed after consulting

experts in the field or after seeking clarification

from the department. Relevant date for

computation of time limit is the date on which

date the department acquired knowledge

regarding the activities undertaken by the

Asseessee. Demand is not time barred. [2014-

TIOL-1296-CESTAT-MUM]

v CENVAT Credit of the service tax paid on the

Sales Commission: Cenvat Credit of service

Tax on the sales commission is per-se is not

allowed but if the said commission is paid for

sales promotion the position would be different.

Factual matrix recorded by the first appellate

authority indicates that the amount paid by the

Assessee is a commission for sales promotion

expenses and in this view of the matter, the same

have to be treated as "Input Service" and cenvat

credit is admissible. [2014-TIOL-1300-CESTAT-

AHM]

v Demand of duty on clandestine removals:

Assessee has filed appeal against the order of

Hon'ble Tribunal confirming the demand. The

findings of the Tribunal were recorded based on

documents recovered and these documents

were admitted and not denied by the Assessee,

though the discrepancy was sought to be

explained, as discrepancy of mistake in

maintenance of accounts and also on account

of un-cleared and unsold stock. There is

sufficient adequate material for the

Commissioner to have come to a conclusion that

the Assessee was in fact did manufacture of Acid

Slurry by purchasing raw material in third parties

names, but failed to account for the manufacture

and clearance of the same by paying appropriate

duty. No error in the order of Tribunal hence,

demand upheld. However, credit allowed on

material used in manufacture of clandestinely

removed goods. [2014-TIOL-1170-HC-AP]

v Bagasse and Press Mud arising during

Manufacture of Sugar cannot be considered

as final product: Bagasse and Press Mud are

waste products arising during the course of

manufacture of sugar, which cannot be

considered as excisable goods or final products

and, therefore, question of invoking provisions

of rule 6(3) of Cenvat credit Rules, 2004 does

not arise at all. [2014-TIOL-1288-CESTAT-

MUM]

v When matter remanded back with specific

direction then it should be decided on those

points only: Department has denied the credit

to the Assessee which was availed on the

strength of 52 invoices which they had failed to

produce before Adjudicating Authority. At the

time of hearing before the CESTAT, the

Assessee produced photocopies of the invoices


14

and also produced original/duplicate copies of

transporters invoices. Therefore, matter was

remanded for denovo adjudication with specific

direction to the Commissioner. However, instead

of deciding the issue on the disputed point, the

Commissioner went ahead in calculating the

consumption of CRCA strips per piece and made

certain inquiries from another identically located

unit in as much as the Assessee unit was found

to be closed and finally confirmed the demand.

In the second round of litigation, Hon'ble

CESTAT held that, when the matter was

remanded with specific direction to examine the

52 invoices, and which stand examined, it was

not open to the Commissioner to decide the

matter on the basis of percentage use of strips

in question in as much as there is no dispute

about the 52 invoices, hence there was no

justifiable reason to deny the CENVAT credit.

[2014-TIOL-1286-CESTAT-DEL]

CUSTOMSv Appeal against revocation of CHA License

to be heard expeditiously by CESTAT: Order

of revocation of CHA License was passed by the

Ld. Commissioner without giving opportunity of

personal hearing. Assessee has filed appeal

alongwith interlocutory application seeking stay

against the said Order. Due to some

administrative reasons Hon'ble CESTAT was not

functioning and hence, Assessee has filed writ

petition before Hon'ble High Court wherein held

that CESTAT to dispose of interlocutory

application within three weeks from the date of

Order. [2014(305)E.L.T.479(A.P.)]

v Education Cess is not leviable in respect of

duty free import under DEPB Scheme:

Assessee has imported edible refined Oil and

discharged custom duty through Duty

Entitlement Pass Book under Notification No. 45/

2002-Cus. Notification No. 45/2002- Cus

exempts whole of duty, additional duty and

special additional duty. However, Education cess

@ 2% on the Customs duty was charged and

collected by the Revenue at the time of final

Assessment. In this matter, Hon'ble CESTAT has

allowed the appeal filed by the Assessee, holding

that the education cess is not leviable in respect

of duty free import under DEPB Scheme after

relying on its decision in Ruchi health Foods Ltd.

Vs. CC, Cochin- 2007(81)RLT 309 and

CC(exports), CC, Mumbai Vs. Reliance

Industries Ltd. -2005(71) RLT 681. Department

has filed Appeal before Hon'ble High court

against the order of the Tribunal wherein held

that since department has not challenged

decisions of Tribunal in the matter of Ruchi health

Foods Ltd. Vs. CC, Cochin- 2007(81)RLT 309

and CC(exports), CC, Mumbai Vs. Reliance

Industries Ltd. -2005(71) RLT 681 those Orders

has became final and therefore appeal filed by

the Department is misconceived. [2014(305)

E.L.T.268(A.P.)]

v Depreciation on the value of capital goods

imported but not used fully for the purpose

of manufacture so as to discharge export

obligation: While Assessee has target of one

lakh pieces to export, it exported only 300 pieces

during the entire export period. Upon de-bonding

of the unit, Adjudicating authority has allowed

depreciation on the value of capital goods

imported. Department has filed appeal against

the Order of the Adjudicating Authority. Hon'ble

CESTAT held that depreciation is admissible

once there was export obligation discharged

even partly irrespective of quantum of export

made, in absence of any clause in the notification

for dis-allowance against partly discharge of

export obligation. Therefore, there shall be

allowance of depreciation on the capital goods

imported to calculate the value thereof for the

purpose of recovery of duty foregone. Assessee

shall be entitled to depreciation. Matter

remanded to calculate quantum of depreciation.


v Conversion of Shipping bill from DEEC

Scheme to Drawback Scheme: As per Circular

No. 4/2004-Cus condition for conversion is that

if benefit under DEEC scheme is denied by

DGFT/Ministry of Commerce or Customs

authorities, then in that case conversion can be

allowed. In the present case, benefit of DEEC

scheme was not denied to the Assessee and,

therefore, conversion of Shipping bill from DEEC


15

to Drawback Scheme has been rightly denied.


SERVICE TAXv No Audit by Departmental Officers: Rule 5-A,

sub-rule (2) of the Service Tax Rules, 1944 states

that every assessee shall, on demand, make

available to the officer authorized or the audit

party, records, trial balance and income-tax audit

report, if any. It means, the said officer will

demand the documents just to facilitate the

correctness of books of accounts but ultimately,

the audit will be conducted by the Audit Party

headed by the Chartered Accountant/Cost

Accountant, as the case may be, deputed by the

Commissioner. Thus it has been clarified that

Audit will be performed by a qualified Chartered

Accountant or cost accountant as per accounting

standard and after the audit report, the assessee

will get the copy of the report, as prescribed in

law. [2014-TIOL-120-HC-ALL]

v No service tax is leviable on the activity

performed as "Club" or "Association"

Service: Assessee is, an Apex Body of Co-

operative Sugar Mills of Punjab who exercises

supervisory control over Sugar Mills and monitors

their functions and receive 0.3% of the sales

turnover from each sugar mill. Department has

demanded service tax under Management

Consultant service. It is undisputed fact that the

Assessee is a Federation of the Co-operative

Sugar Mills of Punjab and in terms of the charter

of its functions, it is required to monitor the

functioning of its Member Sugar Mills and provide

guidance to them for improving their efficiency.

Hence, the activity of the Assessee have to be

treated as "club" or "association" service as

defined under Section 65 (25a) of the Finance

Act, 1994 and in view of the judgment of the

Hon'ble CESTAT in the case of Federation of

Indian Chambers of Commerce and Industry Vs.

CST, Delhi and M/s Electronic and Computer

Software Export Promotion Council Vs. CST,

Delhi, no service tax would be chargeable on the

amount being received by the Assessee from its

Member of Sugar Mills. [2014-TIOL-1358-

CESTAT-DEL]

v Non compliance of the Stay Order: Hon'ble

CESTAT has dismissed the appeal for non

compliance of Stay Orders of pre-deposit.

Further, Appellant has filed appeal before Hon'ble

High Court wherein before Bar the Assessee has

stated that they shall deposit a total sum of

Rs.1.20 Crores on or before 30/09/2014 and the

balance amount of Rs.30 lakhs shall be deposited

with the Department as pre-deposit on or before

15/10/2014. In view of the undertaking given by

the Assessee before Bar, Assessee directed to

pre-deposit the amounts and on producing

compliance before Hon'ble CESTAT, Tribunal to

dispose of respective appeals in accordance with

law and in case the amount is not deposited within

the stipulated time, the order passed by the

Tribunal dismissing the appeals shall stand and

Tribunal need not decide the appeals on merits.

[2014-TIOL-1212-HC-AHM-ST]

v Activities covered under Repair and

Maintenance Service and Business Auxiliary

Service: Department has demanded the service

tax on the activity of repair and maintenance

undertaken by the Assessee and on the activity

of fabrication work undertaken in client's factory

and erection and installation of the same as

considering it as Business Auxiliary Service and

demands were made under 'Maintenance and

Repair Service'(MRS) and 'Business Auxiliary

Service' (BAS) which were confirmed in

adjudication and were set aside by the

Commissioner (Appeals) and agitated by the

Revenue before Hon'ble CESTAT. As regards,

the service tax demand based on the repair and

maintenance service alleged to have been

provided by the assessee, while no evidence has

been produced by the Department that the MRS

was in terms of some contracts or agreements.

Further, BAS, is fabrication of steel storage tanks,

dozers and settlers, steel structures, steel

platforms, railing, foundation frames etc. and

their erection and installation in the factory but

the definition of 'Business Auxiliary Service' as

given in Section 65 (19) of the Finance Act, 1994


16

has no clause which covers this activity. While

fabrication of tanks and steel structures being

manufactured is not production or processing not

amounting to manufacture, the erection and

installation of tanks, dozers, settlers, and steel

structures is certainly not covered by any clause

of Section 65 (19) i.e. under Business Auxiliary

Service'. Service tax demand not sustainable.


v Services provided to the Member not taxable:

Services provided by the Assessee to their

respective members and consideration received

for the same is not exigible to tax in view of the

principle of mutuality issue stands settled in

favour by judgment of in Federation of Indian

Chambers of Commerce and Industry Vs. C.S.T.,

Delhi -2014-TIOL-701-CESTAT-DEL. [2014-

TIOL-1285-CESTAT-DEL]

EXPORT ORIENTED UNITv Appellate Tribunal's decision not ignorable

by Revenue Authorities: Assessee is 100%

EOU who cleared their P. P. Medinines into the

Domestic Tarrif Area. At the time of clearance

into DTA, Assessee has been paying Excise duty

on the sum total of duties of Customs and also

Education Cess as well as Secondary and Higher

Education Cess on Customs duty leviable on

similar medicines imported into India.

Department has raised demand of education

cess and Higher and secondary education cess

separately in respect of clearance by 100% EOU

to DTA. In Sarla Performance Fibers

Ltd.[2010(253) E.L.T. 203(Tri.Ahmd.)] it was held

that once measure of Customs duty equivalent

to Central Excise Duty leviable on light goods

has been worked out, the question of levying the

Education Cess separately in respect of

clearances by 100% EOU to DTA would not arise.

After considering the ratio of said decision,

Hon'ble High Court has quashed show cause

notices issued to the Assessee.

After considering repeated acts of adjudicating

Authority ignoring the decision of the Court

strongly disapproved and held impermissible by

the Hon'ble Gujarat High. Ignorance of decision

of the Tribunal in Sarala Performance Fibers Ltd.

[2010(253) E.L.T. 203 (Tri.Ahmd.)] strongly

disapproved when such decision remained

unchallenged and Revenue deemed it fit not

challenge the Order passed by the Higher

Authority or Tribunal of Superior Jurisdiction.

[2014(305)E.L.T.497(Guj.)]

INCOME TAXv WDV at the beginning of the year for the purpose

of allowing depreciation is to be calculated on

the value of assets from the inception of Board,

as reduced by various capital grants received

by the assessee towards the assets. [2014-

TIOL-483-ITAT-HYD]

v In case the insurance policy cover is extended

to the next financial year, the premium paid

during the year under consideration is an

allowable expenditure. [2014-TIOL-1208-HC-

MUM-IT]

v When the assessee fails to claim Sec 10A

benefits in the return, it is not entitled to claim

the same. [2014-TIOL-454-ITAT-DEL]

v Deduction u/s 10B is to be computed from the

profit of eligible unit before setting off the brought

forward business loss and unabsorbed

depreciation. [2014-TIOL-453-ITAT-MUM]


17

v Textiles Panel projects USD 300 bn exports by 2025.

v SpiceJet flight gets delayed by five hours; DGCA asks airlines to refund fare to pax.

v About 400 SEZs are yet to be operational : Minister.

v Govt working on contours of 100 'Smart Cities'; Small towns make better use of JNNURM funds: Naidu.

v Govt to repeal Companies (Donation to National Funds) Act, 1951.

v Govt not to legalise black money: FM.

v Service Tax mop-up in Q1 goes up to Rs 38862 Cr from Rs. 32617 Cr during same time last fiscal.

v CBDT issues transfer order of 20 Addl / JCITs.

v Govt reduces tariff value of Gold + Silver but hikes the same for RBD Palm Oil.

v ITAT grants relief to Bollywood Star Salman Khan; sets aside penalty imposed for claiming legal expenses

incurred on criminal cases as business expenditure.

v K V Chowdary appointed as new CBDT Chairman.

v India is one of largest importers of gold and silver from Switzerland.

v Finance Bill (No.2) 2014 enacted as Finance Act (No.2) 2014 on 6th August

v Customs, Excise & Service Tax Appeals filed with CESTAT & Commissioner (Appeal) w.e.f. 6th August

subject to mandatory pre-deposit as per Finance Act (No.2) 2014

v CBI Court orders 5-yr RI to four Central Excise officers

v CBI nabs exporter accused of defrauding Customs of Rs. 2.17 Cr duty loss.

v Ahmedabad CBI nabs Central Excise Superintendent & Inspector in bribery case.

v Imphal Airport Customs seizes 1.6 kg gold coming from Myanmar; One person arrested.

v Rajkot Central Excise arrests GM of a Kolkata-based company for allegedly collecting but not depositing

above Rs. 14 Cr Service tax.

v CBI books Syndicate Bank CMD and 11 others in Rs. 50 lakh illegal gratification case.


18

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Bizsolindia Forex Services Pvt. Ltd. Forex Services dealing with :

• Treasury Audit

• Information Services

• Advisory Services

• Policy Consulting

• Treasury Outsourcing

• Interest Rates Advisory

• Treasury Operations Training

• Banking Advisory Services

• International Syndication

Bizsolindia HR Services Private Limited Strategic Consultancy in the area of HR & Soft skills Training

Bhagwati Shipping Private Limited Custom House Agent (11/578), Custom Clearance of Export and Importconsignments

A.B. Nawal & Associates, Cost Accountants Practicing Cost Accountant, Cost Audit, Central Excise, Adjudication matters

up to CESTAT, VAT Audit.

Behede Joshi & Associates, Practicing Chartered Accountants, Statutory Audit & Tax Audit, VAT Audit,Chartered Accountant Transfer Pricing.

R. Venkitachalam, Company Secretary Practicing Company Secretary.

Nawal & Sonaje Associates, Cost Accountants Practicing Cost accountants, Cost Audit

Bizsol Projects & Infrastructure Solutions LLP Infrastructure Consultancy, Project Management Services in respect of RealEstate solution for Industrial, Residential, Trade & Commerce & Consultancy

related to Finance & Investments

O U R S E R V I C E S


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NOTES


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NOTES

Covers August 2014 - Bizsolindia · 2017. 11. 10. · Bizsol UPDATE August - 2014 3 CUSTOMS Notifications: Tariff • No New Notifications Non-Tariff • W.e.f 31.07.2014 Hindon,

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