India: Indirect Tax Newsletter - November 1, 2012

Last Updated: 11 December 2012


Notification No. 57/2012-Cus. dated October 18, 2012

Amends Notification No. 39/96-Cus., dated July 23, 2012 to provide for exemption upto November 25, 2012 on import of machinery, equipments, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile ("LR-SAM") Programme of the Ministry of Defence from custom duty leviable thereon.

Sanjivani Non-ferrous Trading Pvt. Ltd. Vs. CC&CE [2012 (284) ELT 559 (Tri. Del.)]

Assessee paid higher amount of custom duty. On discovery of mistake, assessee filed for re-assessment of bill of entry within stipulated time period of six months. Reassessment order was passed on July 13, 2007 and assessee filed an application for refund of excess duty paid on July 30, 2007. Refund application was rejected on the ground of limitation. Referring to Section 27 of the Customs Act, 1962 ("the Customs Act"), the Tribunal allowed refund claim of assessee on the ground that where duty becomes refundable as a consequence of judgment, decree, order or direction, limitation shall commence from the date of such judgment. Therefore, period of limitation was held to commence from the date of order of reassessment.

Vasco Da Gama Distilleries Pvt. Ltd. Vs. CCE [2012 (284) ELT 417 (Tri. - Mumbai)]

The Tribunal held that merely because assessee obtained higher discount from foreign supplier as compared to other importers, it, by itself, cannot be a reason for rejection of transaction value under Section 14 of the Customs Act.


Central Excise

Notification No. 38/2012-CE dated October 18, 2012

Amends Notification No. 64/95-CE, dated March 16, 1995 to provide for exemption upto November 25, 2012 to machinery, equipments, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables supplied to LR-SAM Programme of Ministry of Defence from excise duty leviable thereon.

Sudhir Deoras Vs. CCE [2012 (284) ELT 326 (Jhar.)]

The High Court of Jharkhand held that authority issuing summons under Section 14 of the Central Excise Act, 1944 ("the Excise Act") must issue summons to a witness only when the authority considers it necessary for summoning. The High Court also observed that before summoning a person from a company registered under the Companies Act, 1956 to give evidence under Section 14 of the Excise Act, enquiry officer should examine relevant issue because of the reason that every person of the company may not be a relevant person at all for the purpose of inquiry, even if he may be holding highest position in the company. In order to avoid unnecessary delays, it is always appropriate to first ask the company to send a duly authorized person well acquainted with facts and issues involved in the inquiry so that thereafter the company may not take evasive or false stand that person who deposed was either not authorized or had no knowledge etc. At the same time, it is not binding upon the enquiry officer to accept person nominated by the Company as the only witness who can be examined. The Enquiry Officer, if not satisfied with statements of such person on the ground of it being unreliable or because any further explanation is required from other person who may be found to be relevant by it from statement of such witness, can summon any other person irrespective of his status in the company.

Cenvat credit

Global Advertisement Services Pvt. Ltd. Vs. CCE [2012-TIOL-1478-CESTAT-MUM]

Assessee, a unit in the Special Economic Zone ("SEZ"), exported taxable output service without payment of service tax. This resulted in accumulation of unutilized credit of service tax availed on input service for which assessee filed a refund claim in terms of Rule 5 of the Cenvat Credit Rules, 2004 ("the Credit Rules"). Refund claim was rejected on the grounds that firstly, input services procured by assessee from Domestic Tariff Area were unconditionally exempt from service tax and, therefore, assessee should not have paid any duty, and, secondly, seeking refund of input service tax credit for activities undertaken within SEZs was not consistent with the scheme of refund under Rule 5 of the Credit Rules. The Tribunal held that nowhere in Rule 5 of the Credit Rules, it is stated that a unit in SEZ cannot apply for refund. The Tribunal further held that assessee is eligible for refund of service tax paid (which was not required to be paid) under Section 11B of the Excise Act itself, provided assessee has filed refund claim within prescribed time-limit.

CCE Vs. Rohan Dyes & Intermediates Ltd. [2012 (284) ELT 484 (Guj.)

Assessee engaged in manufacture of dyes purchased raw materials and send them to a job-worker for conversion. Job-worker, instead of sending intermediate products without payment of duty under challans, decided to pay duty and cleared goods under invoice. Revenue contended that assessee should have reversed Cenvat credit taken before sending goods to job-worker because job worker did not follow procedure and paid duty in spite of exemption under Notification No. 214/86 –CE dated March 25, 1986 read with Section 5A(1A) of the Excise Act. The Tribunal rejected contention of the Revenue and held that such a procedure is permissible under Rule 4(5)(a) of the Credit Rules.

Pepsico India Holding P. Ltd. Vs. CCE [2012 (284) ELT 514 (Tri. - Mumbai)

The Tribunal held that there is no requirement under the Central Excise Rules, 2002 that invoice number should be printed on the body of invoice. The only requirement is that invoice should be serially numbered. Accordingly, Cenvat credit is admissible on invoices where invoice number is handwritten.

Service Tax

Inductotherm India Pvt. Ltd. Vs. Union of India [2012-VIL-87-GUJ-ST]

Dispute before the High Court of Gujarat was whether for the period prior to introduction of Section 66A of Chapter V of the Finance Act, 1994 ("the Finance Act"), department can recover service tax from a service recipient on the strength of Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 ("the Service Tax Rules"), where service provider is a nonresident and does not have any office in India. The High Court held that in the absence of any charging section, recipient of service tax could not be made liable to pay tax merely by virtue of provisions contained in Rule 2(1)(d)(iv) in the Service Tax Rules .


Bharti Televentures Ltd. Vs. State of Karnataka [2012-VIL-91-BANG.]

Question before the High Court of Karnataka was whether 'recharge cards', 'recharge pins' and 'recharge double scratch cards' are exigible to VAT or not. The Court relied on judgment of the Supreme Court in the case of Idea Mobile Communication Ltd. Vs. CCE [2012 (72) KLJ 65 (SC)] and held that 'recharge cards', 'recharge pins' and 'recharge double scratch cards' are not goods and consideration received from subscribers on their sale is for purpose of service rendered by the telephone company on which service tax is payable.

Tata Steel Ltd. Vs. State of Odisha [2012- VIL-90-ORI]

The question before the High Court of Orissa was whether imposition of entry tax under the Orissa Entry Tax Act, 1999 on the goods purchased from outside India ultra vires Article 286 of the Constitution of India ("the Constitution"). The High Court of Orissa relied upon judgment of the High Court of Gauhati in the case of Primus Imaging Pvt. Ltd. Vs. State of Assam [2007 9 VST 528 (Gau.)], which held that restriction under Article 286 (1) of the Constitution is on levy of tax on sale or purchase of goods, which takes place in the course of import into the territory of India and not on tax on entry of goods into a local area for consumption, use or sale thereof. Accordingly, imposition of entry tax on goods purchased outside India after they cross customs frontier was held not to ultra vires the Constitution.

Aspick Engineering Pvt. Ltd. Vs. State of Tamil Nadu [2012-VIL-89-MAD]

The High Court of Madras held that the criteria for considering whether transaction is an intra-State or inter-State sale is whether movement of goods is intimately connected with sale. The fact that purchaser had borne insurance charges or seller had borne insurance charges or that purchaser had moved goods at his own cost would not be a decisive factor for the purpose of determining nature of sale as intra-State sale or inter-State sale.

Durga Projects Inc. Vs. State of Karnataka [2012-VIL-92-BANG]

The High Court of Karnataka has held that in the absence of specific entry providing for rate of tax on works contract prior to April 1, 2006, tax should be levied as per rate applicable on value of each class of goods involved in execution of works contract for the period prior to April 1, 2006.

The West Bengal ICT Incentive Scheme 2012

The State Government of West Bengal has announced the West Bengal ICT Incentive Scheme, 2012 ("the Scheme") for IT/IT Enabled Services Projects of large, medium, small and micro units ("IT Units") to be set up in the State. The Scheme shall remain valid for the period of five years commencing from August 2012 and ending on July 31, 2017. An eligible unit under the Scheme will be entitled to refund of 100% of Central Sales Tax ("CST") paid by it until abolition of CST or five years whichever is earlier apart from other benefits in the form of capital investment subsidy, interest subsidy, waiver of electricity duty, employment generation subsidy, refund of stamp duty etc.

Notification No. 6805 dated October 17, 2012

The Commissioner, Commercial Tax Department, Bihar has extended date of filing of returns for second quarter of Financial Year 2012-12 by a period of fifteen days for all classes of dealers specified under Notification No. 6083 dated August 28, 2012.

GST Network to be set up by end of this financial year [Business Standard, October 28, 2012]

The Ministry of Finance has extended the deadline for setting up GST Network ("GSTN") till the end of current financial year which was originally proposed to be completed before August 2012. The Ministry has extended tenure of the Empowered Committee on GSTN headed by Mr. Nandan Nilekani upto September 2013.

Centre, States ironing out differences on GST [Livemint, October 25, 2012]

Mr. Sushil Kumar Modi, Chairman of the Empowered Committee of State Finance Ministers on GST said that only a few issues remain unresolved between the States and the Centre on roll-out of GST. Mr. Modi is also slated to meet Finance Minister Mr. P. Chidambaram on November 8, 2012 to finalize a formula for payment of compensation to State governments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
JSA Advocates & Solicitors
JSA Advocates & Solicitors
JSA Advocates & Solicitors
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
JSA Advocates & Solicitors
JSA Advocates & Solicitors
JSA Advocates & Solicitors
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions