SUMMARY FOR THE MONTH OF MAY

 

2^nd of May

 

2014-VIL-111-MAD

NOKIA INDIA PRIVATE LIMITED Vs DEPUTY COMMISSIONER (CT)

Central Sales Tax Act - Section 6A - Demand under the Central Sales Tax Act in relation to (a) Interstate sales executed against Form C (b) Stock transfer of products against Form F and (c) Export sales executed by the petitioner - The Form C and F not been given by the dealer - As per the provision to Rule 12 of CST Act, it was proposed to assess the rate of tax at 14.5% in the absence of forms and it was also proposed to be treated under Section 8 (2) of the CST Act.

 

Tamil Nadu Value Added Tax Act - Whether Revenue has passed the order under Section 22 (2) or 27 (2) of TNVAT Act and whether the requirement to afford an opportunity of personal hearing is different from issuing a show cause notice as contemplated under Section 27 (2) of the said Act

HELD - Natural Justice - Whether it is application of Section 22 (2) or 27 (1) of the Act, the petitioner ought to have granted an opportunity of personal hearing, when he has specifically sought for the same. Inasmuch as such principle was not adhered to in this case, the impugned orders cannot be sustained – The assessing officer ought to have afforded an opportunity of hearing to the petitioner for perusal of voluminous documents. The non-consideration of the same vitiates the impugned orders.

 

The matter is remanded back to the first respondent for fresh consideration - Now, by virtue of this order, the first respondent is directed to re-consider the entire matter afresh. At the same time, the revenue also has to be safeguarded to some extent. In that view of the matter, out of the demand of Rs 2,400/- crores made by the revenue in the impugned orders of assessment, the petitioner is directed to deposit 10% of the tax amount thereof as a pre-condition for reviving the orders of assessment

 

FCP0105

FROM THE CORRIDOR OF POWER - Updates from various Union Ministries

 

5^th of May

 

2014-VIL-113-KAR

M/s BALANOOR PLANTATIONS AND INDUSTRIES LTD Vs STATE OF KARNATAKA

Karnataka Value Added Tax Act – Input tax credit - Meaning of term ‘business’ as defined under Section 2(6) of the Act - Whether an agricultural/ horticultural activity of cultivating tea/coffee plants is a business within the meaning of the provisions contained in Section 2(6) of the Act - Input tax credit on purchases of fertilizers, chemicals, pesticides, agricultural machinery etc. – HELD - Mere cleaning, grading, sorting etc., would not exclude even 'tea' from being 'agricultural produce' - An agriculture or an agricultural activity cannot be treated or termed as 'business' as contemplated by Section 2(6) of the Act - For the business of manufacturing tea/coffee as marketable commodity for sale, the major input/raw material would be 'tea leaves' or 'coffee cherries', and the inputs used for its cultivation such as chemicals, fertilizers, pesticides etc. cannot be treated as inputs for its manufacturing – Assessee appeal dismissed

 

2014-VIL-81-CESTAT-DEL-ST

M/s FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY Vs CST, DELHI

Finance Act, 1994 - Club or Association – Section 65(25a), Section 65(105)(zzze) and Section 66 of the Act – Levy of service tax on services provided by FICCI and ECSEPC to its members and non-members – HELD - On application of the principle of mutuality, services provided by the appellants to their respective members would not fall within the ambit of the taxable Club or Association service nor the consideration whether by way of subscription/ fee or otherwise received therefor be exigible to service tax - Services provided by the appellants to non-members and the consideration received for rendition of such service, fall outside the scope of the definition of Club or Association service and the taxable service defined in Section 65(25a) read with Section 65(105)(zzze) of the Act, prior to 01.05.2011;

Services provided by the FICCI to non members subsequent to 01.05.2011, though presumably may fall within the expanded scope of the taxable Club or Association service, (by virtue of the amendments by the Finance Act, 2011), the proportionate service tax and interest for these services provided subsequent to the amendments w.e.f. 01.05.2011 (not identified in the impugned order), cannot be sustained since the show cause notice dated 28.12.2012, issued to FICCI covering part of the post amendatory period omits to allege FICCI’s liability to tax on the basis of the amended provisions and thus there is denial of due process - Assessee appeal allowed

 

2014-VIL-112-BOM-ST

COMMISSIONER OF SERVICE TAX, MUMBAI-II Vs M/s SGS INDIA PVT LTD

Service Tax - Export of service - Technical Inspection and Certification Agency Service - Client located abroad engaged the services of the assessee for inspection and testing the goods. The goods were tested in India - However, the report of such tests and analysis was sent abroad – Payment received in foreign convertible currency - It is in that sense that the Tribunal holds that the benefit of the services accrued to the foreign clients outside India. This is termed as 'export of service' - If services were rendered to such foreign clients located abroad, then, the act can be termed as 'export of service'. Such an act does not invite a service tax liability - The view taken by the Tribunal therefore, cannot be said to be perverse or vitiated by an error of law apparent on the face of the record - Revenue appeal dismissed

 

2014-VIL-114-DEL-CE

HINDALCO INDUSTRIES LIMITED Vs ASSISTANT COLLECTOR, CENTRAL EXCISE, MIRZAPUR AND ORS

Central Excise Act, 1944 - Validity of Section 11D - Department invoking the provisions of Section 11D on the ground that when the price of aluminium was fixed it included a component of excise duty on electricity. Since Renusagar was exempted from paying excise duty the amount which was embedded in the price of aluminium and which allegedly represented the excise duty on electricity, became surplus in the hands of the petitioner and, therefore, according to the Department the same was recoverable under Section 11D – HELD – Excise duty liability of the assessee would be the excise duty payable on aluminium. Insofar as the aluminium manufactured by the petitioner is concerned, the duty that was payable by the petitioner has been paid and there is no issue with regard to this. As such the petitioner has not collected any excise duty which the petitioner was liable to pay in excess of what the petitioner was assessed on in respect of the aluminium produced by it. Therefore, there is no question of the applicability of Section 11D – Assessee appeal allowed

 

kerCir09

Kerala: Extension in last date for filing option for payment of compounded tax

 

odiNoti6897

Odisha: Modification of annual return form in Form-IAA under the Central Sales Tax (O), 1957

 

FCP0405

FROM THE CORRIDOR OF POWER - Updates from various Union Ministries

 

6^th of May

 

2014-VIL-117-ORI

STATE BANK OF INDIA Vs STATE OF ODISHA

Orissa Value Added Tax Act - Bank is dealer liable to pay Value Added Tax on the transaction of sale of goods in auction conducted by it to recover the loan dues – HELD – No reason to exclude the bank from the definition 'dealer' under the Act even in the absence of express inclusion of bank in the said definition – Assessee appeal dismissed

 

2014-VIL-116-UTR

M/s REVATI PRINT O PACK VS STATE OF UTTARAKHAND

Whether Zila Panchayat is competent to levy and recover tax from different industrial units situated in industrial area development, controlled and managed by the State Industrial Development Corporation - Article 265 of the Constitution – HELD - Zila Panchayat has no authority under the law to impose, levy or collect tax from any industry or person within the area of municipality, town area, notified area or SIDCUL area

 

2014-VIL-82-CESTAT-DEL-ST

M/s NANDGANJ SIHORI SUGAR CO Vs CCE. LUCKNOW

Service Tax - Rule 4B of the Service Tax Rules, 1994 - Goods transport agency - Demand of service tax - Expenditure on transportation of sugarcane from the cane collection centers to their sugarcane mills – HELD - Admittedly no consignment notes have been issued - Merely a bill issued for transportation of goods cannot be treated as Consignment Note - Transportation of goods by individual truck owners without issue of consignment note, GRs & billties etc. as prescribed in Rule 4B of the Service Tax Rules, would be simple transportation and not the service of Goods Transport Agency - Thus mere transportation of the goods in a Motor Vehicle is not the service provided by a Goods Transport Agency - Hence, in these cases, the service of transportation of sugarcane provided by the transporters would not be covered by Section 65(105)(zzp) – There will be no service tax liability on the appellant, as they have not received the service from a Goods Transport Agency – Assessee appeal allowed

 

2014-VIL-115-RAJ-CE

M/s AJMER INDUSTRIAL GASES PVT LTD Vs COMMISSIONER OF CENTRAL EXCISE-1, JAIPUR

Central Excise Act - Cylinder maintenance charges not included while computing the assessable value - Penalty – Section 11AC – HELD – The duty demand has been upheld only on the amounts being collected as Cylinder Maintenance Charges which are the cost of Acetone used for dissolving Acetylene gas and since it is clear that the appellant had suppressed the fact that in case of Acetylene, the bulk of the amount collected as “cylinder maintenance charges” was the cost of Acetone and therefore, there was no infirmity in imposing of penalty and sustaining the same by the Tribunal – Assessee appeal dismissed

 

apFAQ2 & apFAQ3

Frequently Asked Questions – AP Reorganisation Act, 2014 – Commercial Tax Issues

 

aprilSummary

Summary for the month of April

 

7^th of May

 

2014-VIL-11-SC-CE

UNION OF INDIA & ORS Vs M/s HINDUSTAN ZINC LTD

Central Excise Rules, 1944 - Rule 57CC & Rule 57D – Term ‘final products' and 'by-products' - Entitlement to Modvat/Cenvat Credit for the use of inputs in the manufacture of final products which are exempt or subject to nil rate of duty and the requirement of the assessee to maintain separate accounts with respect to inputs used in dutiable goods as well as exempted goods – Extraction of zinc from the ore concentrate and emergence of sulphur dioxide and clearance of sulphuric acid as a by-product to fertilizer plants – HELD – Entire quantity of zinc ore concentrate has gone into the production of zinc and no part can be traced in the sulphuric acid. It is for this reason, the assessee maintained the inventory of zinc concentrate for the production of zinc and there was no necessity and indeed it is impossible, to maintain separate records for zinc concentrate used in the production of sulphuric acid - We, therefore, agree with the High Court that the requirements of 57CC were fully met in the way in which the Respondent was maintaining records and inventory and the mischief of recovery of 8% under Rule 57 CC on exempted sulphuric acid is not attracted – Revenue appeal dismissed

 

2014-VIL-118-GUJ

STATE OF GUJARAT Vs VIRUMAL SANTUMAL

Gujarat Sales Tax Act - The Additional Duties of Excise (Goods of Special Importance) Act, 1957 - Exemption from payment of sales tax under the Gujarat Sales Tax Act on the sale and purchase of such items namely, patasa, harada, sakaria and alchidana – Definition of term ‘Sugar’ – HELD – Items are exempted from payment of sales tax – Revenue appeal dismissed

 

chhgNoti58

Chhattisgarh: Exemption regarding Audit Report

 

kerCir11

Kerala: Electronic process for diary submission, issue of defect notice and settlement of demands by e-payment

 

8^th of May

 

2014-VIL-12-SC-CB

M/s KONE ELEVATOR INDIA PVT LTD Vs STATE OF TAMIL NADU AND ORS

Supreme Court Constitution Bench: Andhra Pradesh General Sales Tax Act, Tamil Nadu General Sales Tax Act - Whether manufacture, erection, installation and commissioning of lift at customer's premises constitute 'sale' and not 'works contract' - Sale Vs Works Contract - Constitution of India - Article 32, 366 - Entry 54 of List-II, Deemed sale - Divisible contract - predominant intention test - contract of sale - Dominant nature test – Assessee appeal allowed by majority

 

Dbk609

CBEC: Drawback division seeks data from EPC and Commissioners for AIR of duty drawback exercise

 

9^th of May

 

2014-VIL-120-BOM

THE ADDITIONAL COMMISSIONER OF SALES TAX, VAT-III, MUMBAI Vs M/s KIRLOSKAR COPELAND LTD

Bombay Sales Tax Act, 1959 - Section 2(28) – Sale - Repair charges - Cross transfer of property – Contract - Assessee accepting defective compressors outside the warranty period with certain fixed repair charges and replacing them at the option of the customer with repaired compressor, off the shelf - Cost of repairs received is mentioned in the books of accounts as 'repair charges' and not as 'sale' of the repaired compressor – HELD – The said transaction is of cross transfer of property between a defective compressor and repaired compressor and it does not amount to sale of the repaired compressor by the assessee to its customer as there was no consensual agreement of sale supported by price or money consideration - Revenue appeal dismissed

 

2014-VIL-119-KAR

SHIVAM TRADING COMPANY Vs COMMERCIAL TAX OFFICER (ENFORCEMENT)

Karnataka Value Added Tax Act - Section 53(12)(c) - Non-production of E-sugum form – HELD - E-sugam was generated before commencement of the journey and that is on record - It is the duty of the officer to verify it - If the authorities have not verified, assessee cannot be held responsible for such lapse

Difference in the Serial No. of invoices – Consignor has more than one units from where the products is supplied depending upon its availability at each counter, and separate invoice books are maintained and used and therefore part of the consignment is from one unit and part of the consignment is from the another unit, though on the same day it was consigned. Thus, serial number depends on the book used – Assessee appeal allowed

 

2014-VIL-83-CESTAT-AHM-CE

M/s MANISH ORGANICS INDIA LTD Vs COMMISSIONER OF CENTRAL EXCISE, SURAT-II

Central Excise - Glyoxal used in the manufacture of Drug intermediates - Exempted under Notification No.147/1984-CE, dt.19.06.1984 – based on an intimation to the Drug Controller that Glyoxal 40% is used in the manufacture of drug intermediates, Revenue demanding duty on Glyoxal – Later appellant intimating Drug Control Authorities that they have started using Glyoxal 20% in the manufacture of exempted drug intermediates – Assessee contending that Glyoxal 20% is not a stable product capable of being sold, which is based on the test report and hence cannot be charged to duty – Commissioner confirming demand – HELD - No investigation has been done by the Revenue to argue that unstable Glyoxal 20% cannot be used in the manufacture of exempted drug intermediates - It is also observed from the chemical test that Glyoxal 20% on storage, deteriorates and cannot be considered as marketable - In the light of the above comprehensive evidences it cannot be said that drug intermediates are manufactured by the appellant only from the stable Glyoxal 40% - No case can be made against the assessee on presumptions and conjectures – Assessee appeal allowed

 

2014-VIL-84-CESTAT-AHM-ST

M/s DUPEN LABORATORIES PVT LTD Vs CCE & ST, DAMAN

Service Tax - Assessee availed Cenvat Credit of Service Tax paid by the Security Service -Appellants were not aware that the service provider was not paying any Service Tax – HELD – It is the duty of the person availing cenvat credit to establish that Service Tax liability is discharged – Assessee is liable to penalty, however penalties imposed on employee is set aside – Assessee appeal dismissed

 

dndCir168

Daman & Diu: Regarding issuance of Form E1 and E2 through department's website

 

10^th of May

 

2014-VIL-121-DEL

KUMAGAI SKANSKA HCC ITOCHU GROUP Vs THE COMMISSIONER OF VALUE ADDED TAX & ANR

Delhi High Court: Delhi Value Added Tax Act – Limitation - Court recalls its earlier judgement - Addition of sub-section (4) to Section 106 of the DVAT Act, 2004 by virtue of the Delhi Value Added Tax (Amendment) Act, 2012 - Amendment to Section 106 brought about with retrospective from the 1^st April, 2005 - In other words, sub-section (4) of Section 106 would be applicable from the very inception of the DVAT Act, 2004, i.e. from 01.04.2005 – HELD – Entire provision of revision as contemplated under Section 46 of the Delhi Sales Tax Act ,1975 Act including the period of limitation prescribed therein would be applicable to such revisions notwithstanding the repeal of the said Act by the DVAT Act, 2004 – Judgement dated 22.05.2012 is recalled. The matter be placed before the roster Bench on 19.05.2014 in the first instance for a decision on the other grounds taken by the petitioner. The stay which was operating till the decision dated 22.05.2012 shall continue to operate till the disposal of the writ petition

 

goaNoti15

Goa Tax on Entry of Goods Act, 2000: Amendment in Schedule I

 

goaNoti16

Goa Tax on Entry of Goods Act, 2000: Exempts the tax in excess of half paisa in a rupee payable under the said Act in respect of any goods manufactured or processed, partly or otherwise

 

goaNoti109

Goa Value Added Tax Act, 2005: Amendment in Schedules ‘B’ and ‘C’ - Regarding Industrial cables, CFL/LED Bulbs and Tubes and Tobacco

 

13^th of May

 

2014-VIL-124-KAR

M/s MANIPAL UNIVERSITY Vs THE STATE OF KARNATAKA

High Court: Karnataka Value Added Tax Act – Definition of Business – Profit motive – Educational institution - Activity of sale of prospectus and application forms attracts levy of VAT under the provisions of the Act – HELD - Sale of prospectus and application forms, being an activity falling under falls under Entry 71 of the Third Schedule of the Act and not under Entry 11 of the First Schedule - Merely because, the University was established for imparting education does not mean that it is not indulging in the business so as to make profit out of the sale of prospectus and application forms. Their intention to make profit is clear from the facts and figures placed on record – Assessee appeal dismissed

 

2014-VIL-123-BOM-ST

M/s ANDREW TELECOM (I) PVT LTD Vs COMMISSIONER OF CUSTOMS & CENTRAL EXCISE, GOA

High Court: Service Tax - Business Auxiliary Services - Export of services - Refund of service tax paid under the mistake of law - Denial of refund claim – Circular No.111/05/2009ST dated 24.02.2009 - Rule of Limitation – HELD – Instant case is falling within the provisions of the Central Excise Act, 1944 and therefore, the rule of limitation under Section 11B is applied – The Mafatlal Industries case may be considering the issue of validity of the provisions like Section 11B (1) introduced in the Central Excise Act, 1944, but the judgment cannot be applied to such an extent as would enable us to totally override and brush aside a provision like Section 11B with the rule of limitation carved out therein – Assessee appeal dismissed

 

2014-VIL-85-CESTAT-AHM-CE

COMMISSIONER OF CENTRAL EXCISE & S.T., DAMAN Vs M/s AARTI INDUSTRIES LIMITED

CESTAT: CENVAT Credit – Capital goods – Rule 2 - Temporary removal of Capital goods - Temporary to and fro movement of Hydrogen Gas Cylinders for the purpose of refilling of hydrogen gas is otherwise covered by the provisions of CENVAT Credit Rules, 2004 – Revenue appeal dismissed

 

FCP1205

FROM THE CORRIDOR OF POWER - Updates from various Union Ministries

 

16^th of May

 

2014-VIL-124-CAL

M/s JOYRATH PROJECTS PVT LTD & ANOTHER Vs SALES TAX OFFICER, ALIPORE CHARGE & OTHERS

High Court: Central Sales Tax Act – Form-C – Works contract – Transfer - Machineries purchased for execution of the works contract - Assessee is entitled to issuance of ‘C’ Form for effecting the interstate purchase – Assessee appeal allowed

 

2014-VIL-126-ALH

M/s MOSER BAER INDIA LIMITED Vs STATE OF U.P. AND OTHERS

High Court: Uttar Pradesh Trade Tax Act - Eligibility certificate – Escaped assessment - Turnover of recorded and unrecorded CD has not been disclosed separately in the return as well as during the course of assessment proceeding - Since turnover of the recorded CD had not been disclosed separately, the assessing authority had no occasion to examine whether such recorded CD would be eligible for exemption under the eligibility certificate - On the facts and circumstances, we are of the view that there was sufficient material on the basis of which an opinion has been formed that there was an escaped assessment – Assessee appeal dismissed

 

2014-VIL-125-GUJ-ST

COMMISSIONER - SERVICE TAX Vs ASSOCIATED HOTELS LIMITED

High Court: Finance Act, 1944 - Section 85 – Appeal - Whether the Commissioner (Appeals) exercising powers under section 85 of the Act has the power to remand the proceedings back to the adjudicating authority - Section 35A(3) of the Central Excise Act, 1944 – HELD - Sub-section (5) of section 85 though requires the Commissioner (Appeals) to follow the same procedure and exercise same powers in making orders under section 85, as he does in the Central Excise Act, 1944 in appeals, this sub-section itself starts with the expression “subject to the provisions of this Chapter”. Sub-section (4) of section 85 contains the width of the power of the Commissioner (Appeals) in hearing the proceedings of appeal under section 85. The scope of such powers flowing from sub-section 85(4) therefore cannot be curtailed by any reference to sub-section (5) of section 85 of the Finance Act, 1994 – Revenue appeal dismissed

 

2014-VIL-86-CESTAT-CHE-CE

CESTAT: CCE, CHENNAI – IV Vs M/s INVENSYS INDIA PVT LTD

Central Excise – Cenvat Credit – Manufacturing of dutiable and exempted goods - Notification No. 3/2004-CE dated 6.1.2004 - Invoice - Amount mentioned in the invoice debited in CENVAT account under Rule 6(b) of CENVAT Credit Rules – Amount was not retained by the assessee and paid to the Government – Revenue appeal rejected

 

karAct15

Karnataka Value Added Tax (Amendment) Act, 2014 - Amendment in Section 22, 27, 31, 63, 72 & 74 and Schedule First & Third

[This bill was reported on 14th March]

 

FCP1505

FROM THE CORRIDOR OF POWER - Updates from various Union Ministries

 

17^th of May

 

2014-VIL-127-KAR

THE STATE OF KARNATAKA Vs ASHOK IRON WORKS PRIVATE LIMITED

High Court: Karnataka Value Added Tax Act, 2003 – Section 10 - Input tax rebate – Job work – HELD - The approach of the lower authorities that the assessee is not entitled to the benefit of input tax rebate in respect of consumables used in relation to the job work in respect of which no output tax is paid by the assessee is erroneous - Also, if the goods which has suffered input tax was despatched outside the State or used as input in the manufacturing, processing or packing of other taxable goods despatched to a place outside the State, then, the input tax shall not be deducted in calculating the net tax. In other words, the benefit of deduction of input tax is available only when the assessee has paid output tax within the State – Matter remanded

 

2014-VIL-128-P&H

ALL HARYANA PETROLEUM DEALERS ASSOCIATION Vs THE STATE OF HARYANA

High Court: Haryana Value Added Tax Act, 2003 - Section 2(1) (zg) – Sale Price – Taxable Turnover – Validity of Notification No.Leg.22/2011, dated 29.09.2011, amending Section 2(1)(zg) of the Act, modifying the definition of sale price by adding explanation (v) - Sale price equal to the price at which the retail outlet sells petrol and diesel to its consumers, including the commission payable to retail dealers – HELD - The amendment brought about in the term "sale price" vide the impugned notification is in conformity with term 'sale' as is understood in the Sales of Goods Act, 1930. The evaporation loss is fully taken care of by the provisions of the Principal Act. The petrol outlets/dealers receive the commission as per quantity of petrol/diesel sold which aspect is also duly taken care of in the procedure for arriving at input as also output tax credit – Petitioner-association petition dismissed

 

ceCir982

CBEC: Classification of rice par-boiling machinery

 

19^th of May

 

2014-VIL-13-SC

M/s UNITECH WIRELESS PVT LTD & ANR Vs STATE OF BIHAR & ORS

Supreme Court: Bihar Tax on Entry of Goods into Local Areas for consumption, Use or Sale Therein Act, 1993 - Constitutional validity – Court declines to grant blanket stay – HELD - The operation of the impugned judgment and order is stayed subject to the appellants depositing 50% of the accrued tax liability/arrears under the Bihar Act, 1993 and furnish bank guarantee for the balance amount – The Department shall not resort to coercive steps to recover the amounts

 

2014-VIL-14-SC-CE

UNION OF INDIA AND ORS Vs MAHINDRA & MAHINDRA LTD

Supreme Court: Central Excise Act – Section 4 - Valuation - Depot as a place of removal prior to 1996 - Concept of place of removal and time of removal - Whether assessable value should be the price at which the goods were sold from the depots – HELD - In the present case the assessee failed to bring the ascertainable price of the tractor, cost of transportation to depot, etc. to the notice of the High Court. The assessee simply challenged the show-cause notices on the ground that the amended Section 4 is not applicable. The High Court without looking into the relevant fact, only on the ground that sub-clause (iii) to Section 4(b) was subsequently added by amendment including 'depot', 'premises of consignment agent' or 'any other place' or 'premises' from where the excisable goods were to be sold after their clearance from the factory, declared the notices illegal and set aside the same. Even the matter was not remanded back to competent authority allowing the assessee to bring to its notice "normal price", in course of wholesale trade, place of removal of tractors, transportation charges, etc – Set aside the impugned judgment of the High Court – Matter remanded – Revenue appeal allowed

 

2014-VIL-87-CESTAT-MUM-CE

M/s VARUN COATINGS Vs COMMISSIONER OF CENTRAL EXCISE, THANE-II

Central Excise - Repacking of goods – Duty - HELD - Appellant received the goods from their principal manufacturer for only repacking of the paints from retail packs to bulk packs. There is no evidence on record that the appellant has reprocessed the goods and having any facility at their unit for reprocessing of the same. In the absence of any evidence, merely on the basis of words "sent for reprocessing" cannot be taken as evidence for ascertain the fact that the appellant has taken the goods for reprocessing of the goods – Appellant is not required to pay duty on repacking of the goods and is required to reverse the entire amount of credit availed on inputs destroyed in flood and the penalty is not warranted – Assessee appeal allowed

 

2014-VIL-129-CHG-ST

M/s HOTEL EAST PARK & ANOTHER Vs UNION OF INDIA & OTHERS

High Court: Finance Act, 1994 - (i) Whether any service tax can be charged on a sale of an item or vice versa; (ii) Whether in view of Article 366 (29A)(f) service is subsumed in sale of food and drinks; (iii)Whether section 66E(i) of the 1994-Act is violative of Article 366 (29A)(f) of the Constitution - Declared services – HELD - A tax on the sale and purchase of food and drinks within a State is in exclusive domain of the State. The Parliament cannot impose a tax upon the same. Similarly, there is no entry in List II or List III under which service tax can be imposed. There is no legislative competence with the States to impose a tax on any service - Section 66E(i) of the Finance Act, 1994 is valid – Assessee petition dismissed

 

2014-VIL-88-CESTAT-KOL-ST

M/s KIRLOSKAR BROTHERS LTD Vs COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, PATNA

Service Tax - Waiver of pre-deposit - Contracts for supply of imported/indigenous material and supply of services – Assessee denied benefit of Notification No.15/2004 and 1/2006-ST dated 01.03.2006 as applicable on the ground that the Applicant during the relevant time had availed CENVAT Credit on inputs and utilized the said credit in discharging the output services namely installation services - Admissibility of abatement from the gross taxable value received by the Appellant on account of rendering services to M/s NTPC – HELD - At this stage, the offer made by the Appellant seems to be reasonable, consequently, we direct the Appellant to deposit Rs.20.00 Lakhs - The Ld. Commissioner after recording compliance would proceed with the adjudication afresh taking into consideration the evidences on record and also the evidences that may be placed by both sides – Matter remanded

 

apCir39

Andhra Pradesh: Submission of utilisation details for Manual Waybills and activation of e-way bill facility

 

20^th of May

 

2014-VIL-130-GUJ

TORRENT ENERGY LIMITED Vs STATE OF GUJARAT

High Court: Gujarat Value Added Tax Act - Section 5A - Section 9(5) - Authority of Revenue to levy Value Added Tax / Purchase Tax on units situated in Special Economic Zone – SEZ Act – DTA - Zero rated goods – HELD - The legislative scheme appears to be that the sales which fall under the ‘zero rated sales’ would invite no sales tax to be borne by the seller, but the purchaser would have to pay the purchase tax and, in turn, would be entitled to take tax credit as provided under section 2(37) and section 11(1) of the VAT Act. Whatever be the intention, without there being any clear provision giving such statutory provisions primacy over section 21 of the SEZ Act, no such tax can be levied - If the statute validly permits the State to levy tax, the same must be allowed to be collected, no matter how harsh the consequences may be. Conversely, if in the plain terms the statute does not permit collection of tax, the same cannot be authorised by falling back upon any legislative intent - Section 21 of the SEZ Act in clear terms exempts all State taxes on sale or purchase of goods, other than those specified in Schedule III of the VAT Act, Luxury tax, Entertainment Tax payable on sales and other transactions within the areas specified in sub­-section (1) of section 21 of the SEZ Act. By virtue of a non­obstante clause contained in section 22 of the SEZ Act, such provision would have effect notwithstanding anything contained in any other law for the time being in force – The demand raised by revenue for payment of purchase tax under section 9(5) of the VAT Act is invalid and impermissible - The tax recovered, if any, from the petitioners shall be refunded with statutory interest – Assessee appeal allowed

 

2014-VIL-89-CESTAT-AHM-CE

M/s MUNJAL AUTO INDUSTRIES Vs CCE & ST, VADODARA

CESTAT: Central Excise – Refund of duty on the grounds of subsequent reduction in Price - Provisional price - Whether appellant is entitled to the refund claims where lower duty is payable on the goods cleared at a price, when subsequently a lower price is settled due to price variations – HELD - Refund claims are not maintainable – Appeal dismissed

 

2014-VIL-90-CESTAT-CHE-ST

COMPUTER AGE MANAGEMENT SERVICES PRIVATE LTD Vs COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX - LTU, CHENNAI

CESTAT: Service Tax Rules, 1994 - Rule 6 (4A) - Adjustments of tax liability – Demand of tax along with interest towards tax short paid due to excess adjustment – No intimation of adjustment to the jurisdictional officer - HELD - It is accepted that appellant has Centralized Registration and they have taken a definite stand in their reply to SCN that excess payment was due to a belated receipt of the details of payments from their other offices - The appellant should be given an opportunity to produce the evidence before the adjudicating authority in the interest of justice – Assessee appeal allowed by way of remand

 

kerOrder12732

Kerala: Rate of tax on Extruded Polymer Profile / PVC profile panel

 

upCir1415014 [in Hindi]

Uttar Pradesh: Regarding Monthly/Quarterly return - Dealer having annual turnover more than one crore to file Monthly return

 

21^st of May

 

2014-VIL-131-MP

M/s BIRLA CORPORATION LTD Vs ASSISTANT COMMISSIONER & ORS.

High Court: Madhya Pradesh Entry Tax Act – Expansion and upgradation of the existing unit – HELD - Material brought into local area for the purpose of expansion and upgradation of the already existing unit cannot subjected to entry tax - Imposition of tax is unsustainable – Assessee appeal allowed

 

2014-VIL-91-CESTAT-MUM-ST

M/s INOX AIR PRODUCTS LTD Vs COMMISSIONER OF CENTRAL EXCISE, NAGPUR

CESTAT: Finance Act, 1994 - Consulting Engineer - Section 67 r/w Rule 3 of the Service Tax (Determination of Value) Rules, 2006 - Valuation of service of operation and maintenance – HELD - Electricity cannot be considered as an input for providing the services of operation of air separation plant, it cannot be considered as an additional consideration flowing to the appellant from their client for providing the service of operation of plant and cannot be considered as part of the gross amount charged for the service of operation of the plant – Assessee appeal allowed

 

1958-VIL-01-SC [VATinfoline Refresher - Historical judgement]

Supreme Court: THE STATE OF MADRAS Vs GANNON DUNKERLEY & CO. (MADRAS) LTD

 

tnCir23

Tamil Nadu: Goods Movement Check - Collection of Compounding Fees & Advance Tax

 

22^nd of May

 

2014-VIL-133-ALH

M/s TATA MOTORS LIMITD Vs THE COMMISSIONER COMMERCIAL TAXES U.P.

High Court: Central Sales Tax Act – Delay in submission of C-Form & F-form - Rule 12-A(7) of the Central Sales Tax (Registration & Turnover) Rules - Assessment order – Pre-deposit - Application for full waiver – HELD – Assessee to deposits 10% of the total demanded tax within a period of one month, the 90% of the demanded tax shall be kept in abeyance till disposal of the appeal

 

2014-VIL-132-BOM-CE

LARSEN AND TOUBRO LTD Vs THE COMMISSIONER OF CENTRAL EXCISE

High Court: Central Excise Act - Appeal under Section 35(G) of the Act - Appeal relates to valuation - Maintainable only before the Supreme Court – HELD – Impugned order of the third member may well have been in favour of assessee, had the judgment been considered by the learned third member. The judgment had been placed before the third party member but was not considered by him - We would normally have set aside the impugned order and remanded the matter to the learned third member to pass a fresh order - However, as the issue of maintainability of this appeal has been raised we refrain from doing so

 

1975-VIL-01-SC [VATinfoline Refresher - Historical judgement]

M/s BALABHAGAS ULASCHAND Vs STATE OF ORISSA

Supreme Court: Central Sales Tax Act – Scope of Section 3(a) – Inter-state sale - Agreement to sell is an essential ingredient of sale - Sales tax is to be levied if there is movement of goods preceded by an agreement to sale and the actual sale might take place within the receiving state - Even though the sale took place at Calcutta, since the movement of goods preceded the sale in pursuance of the contract of sale which contained a clear stipulation that the goods were to move from Orissa to Calcutta, the movement of goods was occasioned by the sale itself which took place in Calcutta - Appeals are covered by the provisions of section 3(a) of the Central Sales Tax Act – Assessee appeal dismissed

 

FCP2105

FROM THE CORRIDOR OF POWER - Updates from various Union Ministries

 

23^rd of May

 

2014-VIL-134-MAD

M/s LUCAS TVS LIMITED Vs THE STATE OF TAMIL NADU

High Court: Tamil Nadu Value Added Tax Act - Tamil Nadu Value Added Tax (Fifth Amendment) Act, 2013 – Applicability of Section 2(1) – Input Tax Credit – Manufacturer - CST sales – Amendment Act was not properly considered by authority - Matter remanded

 

2014-VIL-135-P&H

STATE OF PUNJAB AND ANOTHER Vs M/s GENUS OVERSEAS ELECTRONICS LIMITED

High Court: Punjab Value Added Tax Act, 2005 – Section 51 - Description of the goods mentioned on the documents did not match with the actual goods – Inverters & UPS – Taxability – Rate of tax - HELD - The nature of transaction can be determined only by the assessing authority. The penalty has been imposed on the solitary ground that the goods are actually inverters and not UPS. It is only the Assessing authority who can decide this question. On being determined the nature of goods, the rate of tax as applicable thereto would be decided. The officers carrying out checking on the roadside in exercise of powers conferred upon them under Section 51 of the Act cannot delve into the disputed question of nature of item and the rate of tax applicable thereto – Revenue appeal dismissed

 

2014-VIL-92-CESTAT-DEL-CE

M/s UAL - UTTAR PRADESH Vs COMMISSIONER OF CENTRAL EXCISE, ALLAHABAD

CESTAT: Central Excise – Asbestos Cement sheets - Chapter 68 of the first schedule to the Central Excise Tariff Act, 1985 – Shortage - Clandestine removal – Demand - Waste generated during the manufacture of asbestos sheets – HELD - There is virtually no evidence on record to show that the said waste stand cleared by the appellants in a clandestine manner - Waste is in the nature of small piece of asbestos sheets and stand spread in and around the premises, in which case, it will not only be difficult but impossible to weigh the same - Confirmation of demand against the assessee cannot be upheld – Assessee appeal allowed

 

2014-VIL-136-RAJ-ST

M/s CHHOTE LAL VIRENDRA KUMAR JAIN Vs UNION OF INDIA & OTHERS

High Court: Service Tax – Section 35C (2A) - Stay granted by Tribunal - After expiry of six months from the date of stay, Department initiates action to recover adjudicated demand. A day before the extension of Stay application was to be heard by the Tribunal, department recovers money from the bank account of the assessee. This cannot be appreciated and it tantamount to overreaching the process of law which cannot be approved by the Court - The notice issued u/S. 87(b) of the Finance Act, 1944 and further action debiting the petitioner’s Bank account are hereby quashed and set aside and the respondents are directed to refund the amount which was debited from the petitioner’s bank account – Assessee appeal allowed

 

arunCir85

Arunachal Pradesh: Online issuance of C Forms

 

24^th of May

 

1972-VIL-01-SC

STATE OF PUNJAB Vs M/s ASSOCIATED HOTELS OF INDIA LTD [VATinfoline Refresher - Historical judgement]

Punjab General Sales Tax Act - Sales Tax - Hoteliers - The transaction between a hotelier and a visitor to his hotel is one essentially of service in the performance of which and as part of the amenities incidental to that service, the hotelier serves meals at stated hours - The transaction cannot be split into lodging charges and food charges and levy sales tax on food charges.

The Revenue was not entitled to split up the transaction into two parts, one of service and the other of sale of food stuffs and to split up also the bill charged by the hotelier as consisting of charges for lodging and charges for food stuffs served to him with a view to bring the latter under the Act

 

2014-VIL-93-CESTAT-MUM-CE

M/s HINDUSTAN PETROLEUM CORPORATION LTD Vs COMMISSIONER OF CENTRAL EXCISE, MUMBAI-II

Central Excise - Refund - Principle of unjust enrichment – Payment under protest – Assessee paid the duty on their own pending adjudication of the matter and they did not follow the procedure prescribed for payment of duty under protest. It was not on account of any directions from the court or appellate authority the payment of duty was made. If that be so, the payment of duty by HPCL cannot be considered as payment under protest at all and we hold accordingly - Refund claim rejected on account of unjust enrichment - Claimant did not submit any evidence to show that the incidence of duty was not passed on - If the claimant himself has treated the refund amount due as ‘expenditure’ and not as ‘claims receivable’, the claimant cannot said to have passed the test of unjust enrichment - The refund claim was filed only on 19-5-2008, that is about 3 years after the decision of the Tribunal and more than 5 years after the payment of duty. Thus the refund claim has been filed much after the stipulated period of one year under section 11B and hence they are clearly time-barred

 

2014-VIL-137-ALH-ST

M/s NARESH KUMAR & CO PVT LTD Vs COMMISSIONER, CENTRAL EXCISE & SERVICE TAX

Finance Act - Section 73(1)(a) - Consignment Agent for TISCO - Show cause notice issued under section 73(1)(a) of the Act for the period 1.9.1999 to 31.3.2003 - 'reason to believe'; reason of omission or failure on the part of the assessee to disclose fully and truly all material facts required for verification of the assessment under Section 71 – HELD - Deputy Commissioner failed to make out any case that he had the material to believe that there was omission or failure on the part of the assessee to disclose fully and truly all material facts and, therefore, we are of the view that the Deputy Commissioner has illegally invoked the provisions of Section 73(1)(a) of the Act and exercised the power to raise the demand under Section 73(1)(a) of the Act – Assessee appeal allowed

 

karCir05

Karnataka: Certain instruction regarding due date for filing of Annual Statement U/s 31(5) of KVAT Act, 2003 for the Financial year 2013-14

 

apGO123

Andhra Pradesh: Apportion the tax amount between the Andhra Pradesh & Telangana

 

26^th of May

 

2014-VIL-139-KAR

HCL COMNET LTD Vs STATE OF KARNATAKA

Karnataka Value Added Tax Act – Classification of VSATs - IT Products - Entry No.53 of the third schedule - Claim of benefit under Entry 53 - Whether Tribunal was justified in holding that VSATs are not covered by Entry 53 in the third schedule to the Karnataka VAT Act overlooking item No.5 in the Notification dated 06.04.2006 – Interpretation of Statute – HELD - There is substance in the submissions for assessee to the extent that the Rules for interpretation of the notification were not taken into consideration by the Tribunal - Tribunal did not interpret the entries in the table, as reflected in the notification dated 6-4-2006, in the light of these rules which provide for interpretation of the Notification – Matter remanded back to tribunal – Assessee appeal allowed

 

2014-VIL-138-DEL-CE

M/s SANDHAR AUTOMOTIVES Vs JOINT SECRETARY, GOVERNEMENT OF INDIA

Central Excise Rules, 2002 – Rule 18 – Notification No. 19/2004-Central Excise (N.T.) - Rebate – Deposit of excise duty prior to the export of goods – HELD - Discharging the liability to pay Excise Duty in the manner as provided under Rule 8 of the Central Excise Rules cannot be construed as compliance of the conditions for availing rebate under Rule 18 - Sub rule (3) of Rule 8 of the Central Excise Rules only provides for payment of interest if Excise Duty is not deposited within the specified time, however, payment of interest on delayed payment after the goods have been cleared cannot be construed to mean that the condition of payment of duty prior to the export of goods has been complied – Assessee appeal dismissed

 

2014-VIL-94-CESTAT-DEL-ST

CCE, CHANDIGARH Vs M/s PUNJAB STATE FEDERATION CO-OPERATIVE SUGAR MILLS LTD

Service Tax - Whether penalties under Sections 76 and 78 could simultaneously be imposed, prior to the amendment to Section 78, by the Finance Act, 2008 – Conflict of opinion amongst decisions of different High Courts - HELD - The present appeal arises out of an adjudication order passed by the Assistant Commissioner, Chandigarh, a quasi-judicial Authority functioning within the territorial jurisdiction of the Punjab and Haryana High Court - In the circumstances the decision of the Punjab and Haryana High Court within whose jurisdiction the adjudicating authority exercises adjudicatory functions has to be followed and that constitutes the operative law - Consequently, in so far as the respondent-assessee is concerned, simultaneous penalties under Sections 76 and 78 cannot be imposed – Revenue appeal dismissed

 

goaNoti110

Goa Value Added Tax Deferment-cum-Net Present Value Compulsory Payment (Sixth Amendment) Scheme, 2014

 

HarNotiSO51

Haryana: Amendment in Schedule A and C - Regarding Cell phones and Scientific instruments

 

tnVATact

Tamil Nadu Value Added Tax Act, 2006 [Updated]

 

28^th of May

 

2014-VIL-140-DEL

M/s KBB NUTS PVT LTD Vs COMMISSIONER OF VALUE ADDED TAX

High Court: Delhi Value Added Tax Act - Expression “manufacture” under Section 2 (ra) - Roasting or salting – Whether Roasted Dry Fruits come under entry No.81 of Schedule III of Act – HELD – Process of roasting or salting does not change the quality or essential nature of the article and it does not result in the creation of a new article, or a significantly altered one as to amount to “manufacture”. Consequently it would be inappropriate to relegate them to the orphanage of the residuary item. The goods are, therefore, held to be classifiable under Entry 81 of the third schedule to the DVAT Act - Legislature was aware about the process of roasting and could have provided for it. However, that aspect by itself cannot be conclusive; what is important in the given circumstances is whether the process of salting or roasting changed or transformed dry fruits into something else – Assessee appeal allowed

 

2014-VIL-95-CESTAT-KOL-CE

M/s HYVA (INDIA) PVT LTD Vs COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, JAMSHEDPUR

CESTAT: Central Excise – Valuation - Central Excise Valuation Rules, 2000 – Rule 10A - Expressions, ‘for’ or ‘on behalf of’ - Appellants are manufacturers of body-built motor vehicles, namely Dumpers & Tippers on chassis sent free of cost by M/s. Tata Motors - Determination of assessable value of the goods namely, motor vehicles cleared by the Appellants to the Depot of Tata Motor Ltd pursuant to the chassis supplied to them free of cost, by TML – HELD - It is the contention of the Revenue that the assessable value is to be determined under Rule 10A of the Central Excise Valuation Rules, 2000, whereas the appellants’ contention is that the value is to be determined under Rule 6 of the Valuation Rules read with Section 4(1)(a) of the Central Excise Act, 1944 – In the present case, the issue involved is determination of the value of the body-built vehicles and not the chassis. According to Chapter Note: V of Chapter 87 of the Central Excise Tariff, building of body or fitting of a structure or equipment on the chassis falling under Heading 8706, amounts to manufacture of motor vehicles. We find that there is no sale of motor vehicles by the appellants either to TML or to any other customers. These vehicles were for the first time sold by TML from their depots and therefore, the clarification that the appellants sold the body, is of no help to appellant. We find that the chassis were supplied to the appellants free of cost. On fabrication of components of the body, it results into emerging a final product namely, motor vehicle which is distinct from the chassis. Since the said motor vehicles were not sold by the appellants and sold for the first time by TML, the value was to be determined in this case under Rule 10A of the Central Excise Valuation Rules, which provided for determination of value of the final products manufactured on behalf of the principal manufacturer – Assessee appeal dismissed

 

2014-VIL-96-CESTAT-MUM-ST

COMMISSIONER OF SERVICE TAX, MUMBAI Vs ESSEL CORPORATE SERVICES PVT LTD

CESTAT: Finance Act, 1994 - Service Tax - Management Consultancy Services - Section 65(65) of the Act – Assessee is advising their group companies to handle a particular issue in a particular manner and also undertake such discussion with various other organizations such as financial organizations, banks, BCCI, Govt. bodies etc. - Such activity gets covered in the first part of the definition of Management Consultancy Services - Second part of the definition is an inclusive one – Assessee is liable to pay Service Tax - Extended period of limitation rightly invoked u/s 73(1) of the Act as respondent suppressed facts - Penalties also imposable u/s 76, 77 & 78 of the Act - Revenue appeal allowed

 

odiCir8445

Odisha: CST Act 1956 - Acceptance of 'C' and 'F' forms covering more than one quarter or more than one month respectively

 

FCP2705

FROM THE CORRIDOR OF POWER - Updates from various Union Ministries

 

upNoti630

Uttar Pradesh Value Added Tax (Amendment) Ordinance, 2014 - Amendment in Section 2, 3, 3-A, 4, 6, 13, 17, 28, 29, 33, 42, 48, 50, 54, 57 & 70 and Insertion of new section 3-B & 8-A

 

1985-VIL-02-SC-CB [VATinfoline Refresher - Historical judgement]

M/s Mc DOWELL AND COMPANY LTD Vs COMMERCIAL TAX OFFICER, ANDHRA PRADESH

Commercial Taxes - Sales Tax - Excise duty paid - Inclusion in the turnover for calculating sales tax payable - Excise duty as defined in Section 2(10) of the Excise Act is leviable on the manufacture of liquor and the manufacturer cannot remove the same from the distillery unless the duty imposed under the Excise Act has been paid - The incidence of excise duty is directly relatable to manufacture but its collection can be deferred to a later stage as a measure, of convenience or expediency - The "duty" was primarily a burden, which the manufacturer had to bear, and even if the purchasers paid the same under the Distillery Rules, the provisions were merely enabling and did not give rise to any legal responsibility or obligation for meeting the burden - Turnover' is defined in S. 2(s) of the Sales Tax Act to mean "the total amount set out in the bill of sale (or if there is no bill of sale, the total amount charged) as the consideration for the sale or purchase of goods (whether such consideration be cash, deferred payment or any other thing of value) including any sums charged by the dealer for anything done in respect of goods sold at the time of or before the delivery of the goods and any other sums charged by the dealer, whatever be the description, name or object thereof." – Assessee appeal dismissed

 

30^th of May

 

2014-VIL-141-KAR

THE STATE OF KARNATAKA Vs M/s ASIAN PAINTS LIMITED

High Court: Karnataka Value Added Tax Act, 2003 – Industrial input packing materials - Road Marking Paints/Material - Rules for interpretation - Notification No. FD 197 CSL 2005(6), dated 30.04.2005 – HELD - APCOMARK & THERMOLINE Brand Hot Melt Road Marking Paints/Material (RMP) cannot be classified as petroleum resins having HSN code 3911.90.90 so as to cover it by the Notification. That apart, the Notification does not make a reference to the petroleum resins assigned with HSN code 3911.90.90 – Hence, RMP is an unclassified item exigible to tax at 12.5% in terms of Section 4(1)(b) of the KVAT Act and not at 4% as Industrial input – Revenue appeal allowed

Levy on Colur World machines (tinting machine, computer and UPS) used for intermixing of colours – HELD - Colour world machine dealt in by the assessee, comprising of tinting machine cannot be operated without computer and UPS, and that they are indispensible parts of tinting machine and, therefore, all three together deserve to be treated as one single unit and liable to be taxed at 12.5%, as unclassified item - Revenue appeal allowed

Freight charges, which according to the assessee cannot be included or does not form part of the turnover – HELD - There is sufficient material on record, as referred to by the Tribunal, to sustain the findings of fact that the freight charges were received along with the price of goods and/or that the assessee paid freight charges and that they never recovered from the buying dealers/distributors – Revenue appeal dismissed

Levying full tax on inter-state sales without giving sufficient opportunity to the appellant to submit 'C' Forms - Disallowance of assessee's claim towards ‘sales returns’ – HELD - All the documents insofar as sales returns are concerned, have been properly maintained by the assessee as provided for in law - Held in favour of the assessee

 

2014-VIL-142-CAL-CE

M/s UNION ENTERPRISES & ANR Vs UNION OF INDIA & ORS

High Court: Central Excise – Alternative Remedy – HELD - There is no absolute bar against the invocation of power of judicial review under Article 226 of the Constitution, even if, there is an alternative remedy available to the aggrieved person. It is not a rule of exhaustion of the remedy but a rule of convenience and discretion - This Court, therefore, does not find the writ jurisdiction is completely taken away because of the existence of an alternative remedy by way of an appeal under Section 35 F of the Central Excise Act – Clandestine Removal - The show-cause notice issued in the instant case was based on the variation recorded in the consumption of electricity forming the opinion that there has been a clandestine clearance of the final product - no other corroborative evidence - Matter relegated back to the Tribunal for reconsideration – Assessee appeal allowed

 

2014-VIL-97-CESTAT-DEL-ST

COMMISSIONER OF CENTRAL EXCISE, BHOPAL Vs M/s SURYA TRANSPORT COMPANY

Service Tax - Valuation of services - Clearing and forwarding agent service - Whether the demurrage/wharfage and expenses for local transport are includible in the assessable value of the service – HELD - In respect of both, demurrage/wharfage charged by the railways and expenses on local transport, assessee has acted only as agent of PCL - The expenses for these items reimbursed on actual basis by their principal, would be not includible in the assessable value of the C&F agent services provided by the assessee – Revenue appeal dismissed

 

hpNoti5

Himachal Pradesh: HPVAT Act - Draft amendments in Part-I(A) of Schedule A - Regarding Plant and machinery when sold to hydro-power units for use in generation of hydro-power

 

31^st of May

 

2014-VIL-143-MP

M/s VIKRAM WOOLENS LTD Vs STATE OF M.P. AND OTHERS

High Court: Central Sales Tax Act, 1956 – Section 8 – Exemption certificate – issue - Even if the petitioner did not submit “C” form, whether the petitioner is liable to get exemption from payment of tax within the capex limit in accordance with exemption certificate issued in favour of the petitioner – HELD - Exemption certificate issued to petitioner grants immunity to the petitioner from payment of tax within capex limit for a certain period – Assessee is eligible to get set off in accordance with the exemption certificate within the capex limit at the higher rate of tax, which was applicable to the petitioner because he did not produce “C” form – Assessee appeal allowed

 

apNotiGo248

Andhra Pradesh: A.P. Reorganisation Act, 2014 – Certain issues relating to the division of State of Andhra Pradesh, special reference to the Commercial Taxes Department – APVAT Rules, 2005 – Amendment to Rule-6 and Rule-23 of the APVAT Rules, 2005

 

goaNoti111

Goa: Amendment in Schedule C

 

odiCir8833

Odisha: Clarification regarding difficulties faced by dealers in obtaining the CST Declaration Forms (Form C/ Form F/ Form H) in the newly introduced process of issue based on CST Return for the Quarter January-March 2014

 

FCP3005

FROM THE CORRIDOR OF POWER - Updates from various Union Ministries