Leaf No: 85 Month : Apr - May Year : 2017

Greetings from Team SA!

  GST Council approves nine set of GST Rules.

 GST rates for goods and services published.

 Mercurial advocate Mr. Harish Salve wins the first round of legal battle between India and Pakistan in a death sentence case against a naval officer.

 Meeting of the Global Forum on VAT welcomed the development of "implementation packages" to support the implementation of the VAT/GST Recommendation, and they discussed a first package on the implementation of mechanisms for the collection of VAT on internet sales.

 The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, in partnership with the World Bank Group, released the Business Reform Action Plan (BRAP) 2017 for implementation by States/UTs on April 13, 2017. The last date to implement the reform is October 31, 2017.

 CII Centre for Arbitration and Mediation inaugurated by FM will deal with national & international arbitration matters.

 Union Cabinet has approved the policy guidelines to allow financially sound State Government entities to borrow directly from bilateral ODA (Official development Assistance) partners for implementation of vital infrastructure projects.

 Micro and Small Enterprises Facilitation Council (MSEFC) portal would facilitate implementation of the delayed payment provisions of the MSMED Act, 2006 and also assist in monitoring of delayed payment cases. MyMSME mobile app provides information on all schemes implemented by the Ministry of MSME.

 Prime Minister, Mr Narendra Modi, uploaded the Integrated Case Management Information System on the Supreme Court website, which marks the introduction of digital filing – a step towards paperless Supreme Court.

 Exemption from the application of quantitative ceiling and export bans on export of organic agricultural products (wheat, non-Basmati rice) and organic processed products (edible oils and sugar) and enhancement of quantitative ceiling on export of pulses & lentils.

 Duty Credit Scrip can be utilized/debited for payment of Customs Duties in case of EO defaults for Authorizations issued under Chapter 4 and 5 of previous FTPs as well.

 Amendment in Table A of Schedule 2 and Appendix 3 of ITC(HS).

 Implementation of Target Plus Scheme as per the decision of the Hon`ble Supreme Court dt. 27.10.2015 in CA No. 554 of 2006.

 Standard Input Output Norms (SION) A-39 for export product falling under the Chemicals and Allied Products Group has been amended.

 The earlier notified period of services export rendered between 1.04.2015 to 31.03.2016, as per the list comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS)  extended upto 31.03.2017.

 Seaport located at Hazira(Surat) Port is included under in paragraph 4.37(a) of Hand Book of Procedures (2015-2020) for availing export promotion benefits under Chapter 4 of Foreign Trade Policy.

 Inclusion of details / clarification on the Certification of Origin of Goods for European Union Generalised System of Preferences (EU-GSP).

 Consideration of application for grant of Licences/ Authorisations for import of "Gold Dore".

 Clarification on TRQ for Raw Sugar.

Target Plus Scheme (TPS) Scrips for the exports made in the year 2005-06 over 2004-05.

 Recovery of Duty Free Credit Entitlement (DFCE) Scheme Scrips for the exports made in the year 2003-04.

 Circular stipulating that once a contract is registered either for initial setting up or for substantial expansion of an existing plant etc, the imports made become classifiable under the heading 9801 of the customs tariff liable to duty at the project rate and cannot be classifiable on merits under any other heading of the Customs Tariff rescinded.

 Monitoring of export obligation fulfilment under EPCG and Advance Authorization Schemes.

 Uploading the Departure Manifests by Airlines(carriers).

 Issues related to levy of service tax on the services provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India to the customs station in India.

 Clarification regarding posting of Central Excise officer in Cigarette units.

 Point of Taxation Rules, 2011 amended with effect from 22nd January, 2017 so as to provide the point of taxation of services provided by a foreign shipping line to foreign charterer w.r.t. goods destined for India as the date of bill of lading of goods in the vessel at the port of export.

 Notification No. 30/2012-ST dated 20.06.2012 amended so as to specify the importer as defined under clause (26) of section 2 of the Customs Act, 1962 (52 of 1962) of goods as the person liable for paying service tax in case of services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of such goods by a vessel from a place outside India up to the customs station of clearance in India.

 Service Tax Rules, 1994 amended so as to, (i) Specify the importer as defined under clause (26) of section 2 of the Customs Act, 1962 (52 of 1962) of goods as the person liable for paying service tax in case of services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of such goods by a vessel from a place outside India up to the customs station of clearance in India. (ii) Provide an alternate mechanism for calculating and paying service tax, Swachh Bharat Cess and Krishi kalyan Cess.

 Notification No. 25/2012-ST dated 20.06.2012 amended so as to exempt life insurance services under 'Pradhan Mantri Vaya Vandana Yojana'.

 CENVAT credit Rules, 2004 amended to allow the importer of the goods to take Cenvat credit on basis of the challan of payment of service tax by the said importer on the services provided by a foreign shipping line to a foreign charterer w.r.t. goods destined for India.

 Notification under Section 11C of the Central Excise Act on Heena Powder and Paste falling under Chapter 33.

 Chapterwise GST rates for Goods.

 GST rates for Services.

 List of Services under reverse charge.

 Classification Scheme for Services.

 GST compensation CESS.

 Goods and Services Tax Network (GSTN) is conducting a pilot run on GST System Software from May 2 to May 16, 2017, where 3200 taxpayers drawn from each State/UT and Centre are participating.

 As on April 30, 2017, when Phase-1 of enrollment was closed, 60.5 lakh taxpayers out of 84 lakh had enrolled.

 GST Council meeting at Srinagar on 18th and 19th May, 2017 will be finalizing the fitment of goods and services in the agreed slab rate of tax of 5%, 12%, 18% and 28%.

 GST enrolment process to resume from 1st June for a period of 15 days.

 Telangana, Bihar, Rajasthan, Jharkhand, Chhattisgarh, Uttarakhand, Madhya Pradesh, Haryana and Goa have passed the SGST Act.

 For claiming refund as contemplated in Section 11B of the Act, assessee has to prove that incidence of duty not passed to buyer. The word ‘Buyer’ in clause (e) of proviso to section 11B(2) cannot be restricted to the first buyer from the manufacturer – Adison & Company Ltd V CCE - 2017-TIOL-192-SC-CX-LB.

 Section 11C of CEA, 1944 grants discretionary and not a mandate on part of the Government to issue or not issue a notification and in absence of any obligation on part of government, courts are precluded from giving any mandamus to exercise such power to issue notification – Mangalore Organics Ltd V UOI - 2017-TIOL-187-SC-CX.

 Though periods of limitation, being procedural law, are applied retrospectively, yet if a shorter period of limitation is provided by a later amendment to a statute, it could render vested right of action nugatory as such right of action would now become time-barred under amended provision and this is not permissible – M.P. Steel Corporation V CCE - 2017 (50) STR 2015 (SC).

 Undisputed facts recorded in Order of Settlement Commission and not tinkered by High Court while holding that Settlement Commission had committed an error by applying wrong principle of law and remanding the matter. On admitted facts, High Court applied correct principle of law which Dept. was not able to dislodge. This was well within the powers of the High Court under Article 226 of Constitution – UOI V Asahi India Safety Glass Ltd - 2017 (50) STR 122 (SC).

 Exercise of option to pay fine in lieu of confiscation is not mandatory in the case of goods, the importation of which is prohibited under the Act or any other law for the time being in force. If there are restrictions in importing certain goods and if the conditions for importing have not been complied with, it definitely amounts to a prohibition under the relevant statutes. – Mohammed Fazil V Deputy Commissioner of Customs (ACC), Cochin - 2017 349 E.L.T. 75 Ker.

 Confiscation of goods for non-declaration of MRP sustainable – Sun Exports V Commissioner of Customs (Airport), Chennai - 2017 349 E.L.T. 258 Mad.

 Capital goods credit availed and simultaneous depreciation claimed under Income Tax on the said amount which was reversed in the subsequent returns filed. Matter remanded to examine the income tax returns and accordingly extend the benefit if if it was reversed. – Cassel Research Laboratories PVT Ltd V CESTAT - 2017 TIOL 762 HC MAD CX.

 Merely because the co-accused had pleaded guilty and accepted punishment in criminal proceedings, would not make the other person also be liable for charges of Sec.112(a) & (b) of CA - D.V.Kishore V CC – 2017-TIOL-883-HC-MAD-CUS.

 Security Services provided by State Police – In view of precedent decisions of Tribunal in favour of appellant and fact that they are a Dept. of State Govt., pre-deposit of mandatory 10% dispensed with and Tribunal directed to hear the appeal on merits – Superintendent of Police V CCC, CE & ST 2017 (50) STR 7 (MP).

 Clarificatory provisions can operate with retrospective effect. Explanation would have to be read as a whole irrespective of profit motive and so long as such service is rendered for consideration, it falls within the purview of the tax – Chanakya Mandal V UOI -  2017-TIOL-855-HC-MUM-ST.

 It is settled legal position that the right to cross examine sought or to have opportunity to effectively exercise that right is an essential part of principle of natural justice – Savino Micron India Pvt Ltd V UOI - 2017-TIOL-878-HC-AHM-CX.

 Prosecution of petitioner is not sustainable when the order on charge of evasion of duty and penalty has been set aside. – Saf Yeast Co. Ltd V UOI - 2017 (348) ELT 621 (ALL).

 Once it is found that a person is entitled to the benefit of the Exemption Notification, the interpretation of the clauses containing the procedural aspects may have to be liberal – Maheswari Industries V CCE 2017-TIOL-880-HC-AP-CX.

 

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