Chinmay Tutorials [9929277130]0141-2741111]
CS Factory..
Tax case Laws and amdt
Compiled By CA, LCS Chinmay Jain [9983554085]
Part-B Indirect Taxes
70 Marks
CS Professional Amendment and Important Case Laws For June 2015
Chapter-1
1. Balrampur Chini mills Ltd. Vs. Union of India (2014)
Bagasse which is marketable product but not manufactured product, not liable to Excise
Duty.
2. CCEx. V. Osnar Chemical Pvt. Ltd. (2012)
The process of mixing polymers and additives to heated bitumen which results in emergence
of Polymer Modified Bitumen (PMB) and Crumbled Rubber Modified Bitumen (CRMB) does
not amount to manufacture because there was no change in characteristics or identity of
bitumen only its grade or quality was improved. The said process did not result in
transformation of bitumen into new product having different identity characteristic and end
use; the end use also remained same viz. mixing of aggregates for constructing roads.
Further the said process was not specified in Section or Chapter notes of the Tariff Act as
amounting to manufacture.
Conclusion: Mixing polymers & additives to heated bitumen –
Merely results in improvement in quality- Not manufacture.
Q1. M/s OC Ltd entered into a contract with M/s A Ltd and got the base bitumen and
certain additives from M/s A Ltd. The assessee M/s OC Ltd heated the bitumen with
the help of burners and to this hot bitumen, added 1% Polymer and 0.2% additives, for
improving its quality by increasing its softening point and penetration. The product
was polymer modified bitumen (PMB) or crumbled rubber modified bitumen (CRMB)”.
The said bitumen was, then mixed with stone aggregates and used for road
constructions. The department contents that the resultant product i.e. PMB or CRMB
is of a superior quality and therefore, the process amounts to manufacture. Decide
citing the relevant case law, if any.
3. CCEx. V. GTC Industries Ltd. (2011)
The assessee used to purchase a roll of aluminium foil with backing of white paper and the
roll was cut in pieces and on one side of each piece the word “ PULL” was embossed in
which the cigarettes were filled in with the help of machines and aluminium paper back foil
holding cigarettes was directly placed in cigarette packing machine. The cigarettes were
filled in aluminium foil in such a way that the word “ PULL” came on the upper side of the
packet. The department contended that the said process amounted to manufacture and was
therefore liable to excise duty.
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Held that, the cutting and embossing of aluminium foil do not transform such aluminium foil
into distinct and identifiable commodity; it doesn’t change the nature and substance of
aluminium foil. The cutting to the size and embossing is only for making it usable for the
purpose of packing. Hence, the said process doesn’t amount to manufacture.
Conclusion: Cutting aluminium back paper foil and embossing the
same for packing cigarette- Not amounts to manufacture.
However,
[Finance Act, 2012 W.e.f. 17-03-2012]
As per Chapter Note 3 in chapter 76 of 1st Schedule of CETA, the process of cutting, slitting
and printing of aluminium foils shall amount to manufacture.
4. Metalite Industries v. CST (2012)
Cable trays (perforated as well as ladder types) are manufactured out of mild steel sheets of
2 mm thickness. These sheets are cut into strips in required sizes. The perforated types
cable trays are cut into strips punched and slotted before bending it into channel shaped
trays; finally the trays are galvanized by the hot-dip process. In case of ladder type cable
trays sheets strips are first bent and then welded together in required dimensions and finally
galvanized. These are sold in the market to meet different mechanical and engineering
needs as distinct from the plain or chequered plates. These are used in power projects for
laying down of heavy cables instead of cement trenches or pipes. The types of processes
involved brings an ultimate product which is distinct and different. The plates undergo
transformation into cable trays and the process involved is manufacturing .
Conclusion: Bending and punching iron plates and
making them cable trays – Manufacture.
5. CCEx. V. Elecon Engineering Co. Ltd. (2012)
The assessee was engaged in the process of fabricating, columns, purlines etc. by cutting
drilling punching and welding on duty paid channels and angles and thereafter assembling to
post at work site and fixing in the exact position for construction of a building or shed. The
department contended that said process amounted to manufacture.
Held that, cutting drilling punching and welding do not result in
transformation. The products resulting out of these processes
are merely structural shapes; and assembling them for
constructing building or shed is ‘febrication’ and not
manufacture as no new article different in name character or
use emerges.
6. CCEx. Vs. Shri Varalakshmi Co.2013
Intermediate- Starch slurry- not marketable but could become marketable after
carrying out certain process- No such process carried out- No duty.
7. Lupin Ltd. UOI (2013)
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Intermediate Chemical- No duty if no proof of marketability – Hypothetical possibility
not sufficient.
8. Delta Power Solutions India Pvt. Ltd.(2012)
Battery cells connected with clamps and metal connectors to function as a battery bank does
not amount to manufacture, since function and use of the batteries remains the same and no
new product can be said to have come into existence.(combination of 2 or more batteries for
increasing voltage)
9. Bharat Heavy Electricals Ltd. Vs. CCEx. (2013)
Power project- Fabrication of bought out steel structures at site resulting into immovable
property – not dutiable.
11. CCEx. Vs. Hindustan Coca Cola Beverages (Pvt) Ltd.(2012)
The treatment of borewell water/ municipal water, does not amount to bringing into existence
a new and commercially different commodity. It merely improves the quality, does not
provide new marketability to water. Therefore, it does not amount to manufacture.
12. CCEx. Vs. Steel Authority of India Ltd. (2012)
The process of mining iron ore from mines and carrying out process of crushing, grinding,
screening and washing so as to remove foreign materials and to concentrate such ores does
not amount to manufacture. However, this process is deemed manufacture.
Q1. Bansal Steel Ltd (BSL) extracts iron ore from mines at difference places for being used
at its various steel plants, Iron ore is excavated from the mines in the form of blasted
mass / rocks which are then crushed and screened into small sizes and washed with a
view to remove foreign materials, iron ore extracted from BSL’s mines has iron content of
60% or more. By reason of the said washing / sizing activities the iron contents of iron ore
do not increase in any way.
The revenue wants to levy duty on the iron ore excavated by the BSL on the ground that
the mined iron ore on being subjected to crushing grinding, screening and washing
becomes iron ore concentrate which is covered by Heading 26.01 of the Traffic Heading
2601 of the Central Excise Tariff applies to iron ore and concentrates, including roasted
iron by rites. “The revenue has relied on the explanatory notes of HSN according to which
the term concentrates applies to ores which have had part or all of the foreign matter
removed by special treatment.
On the other hand the assessee contends that the process undertaken by them do not
convert iron ore into iron ore concentrates as no special treatments are undertaken by
them nor the iron content increase after the processes undertaken by them. It is the
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contention of the assessee that the activities of crushing, grinding, screening and washing
do not amount to manufacture of any goods attracting levy of central excise duty.
Explain, with the help of a decided case law, whether department’s stand is justified in
law.
13. CCEx. Vs. Goyal MG Gases Pvt. Ltd. (2012)
Mere fitting cylinders in slots of Hydreogen Trolleys and Helium Quads and testing thereof is
not manufacture.
14. Rule 4(1A)
In case of manufacture of readymade garments on job work basis, the raw material
supplier is liable to pay duty as if such goods had been manufactured by him.
Similarly,
Customer gave the fabric to tailor for stitching, etc, purposes, tailor is not liable to
pay duty.
[CCEx. Vs. Diwan Saheb Fashions Ltd. (2013)]
15. Excise duty not includible in valuation of closing stock.
[CIT Vs. Dynavision Ltd.(2012)]
16. M/s. ASS Pvt. Ltd. is running an online retail distribution channel and associated logistical
services to facilitate sale of goods by various merchants. It provides 2 types of services to
merchants using its website:
Firstly : Listing of their products on the website for customers to purchase and delivery of the
same;
Secondly: Logistical services like storage, packing and shipping etc. In relating to goods sold by the
merchants.
M/s. ASS Pvt. Ltd charged fees for these services. Once the goods are received in the warehouse
certain activities like sorting, debundling (from wholesale bundles to retail packages,) affixation of
stickers/barcodes for identification and for inventory management , are undertaken. However,
the labeling requirements and declaration of MRP/RPS etc. are to be complied with by the
merchants and ASS Pvt. Ltd. has no role in this activity not it makes any changes in this respect.
The only stipulation they require from their merchants is to maintain price parity vis-à-vis other
channels.
ASS Pvt. Ltd. approaches you seeking you advice as to whether these activity amount to
‘manufacture’ so as to be excisable or are they liable for service tax under the Finance Act, 1994?
Decide in light of the decided case laws.
Ans: The facts of the case are similar to that of Amazon Seller Services Pvt. Ltd. [2012] 285 ELT 449
(AAR) where in it was decided that the above mentioned activities do not constitute manufacture.
The decision was given on the following grounds in light of the Excise Act, considering each activity
separately.
(i)
Packing or repacking of goods: As the packing referred here is nether a case of
repacking from bulk packs to retails packs nor one of packing into unit
containers and the other packing is adopted only for safety during transit, it
does not fall within the ambit of section 2(f)(ii) and (iii) of the Central Excise Act,
1944.
(ii)
Labelling and relabeling : As regards labeling and relabeling, the activity of fixing
stickers by the appellant is entirely from an inventory management and logistical
transit cartons cannot be equated to labeling or relabeling as contemplated in
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act and there is no value addition taking place as the original labels including
declaration of MRP/RPS is not being altered by the applicant.
(iii)
Marketing activities: “Marketability “ has been regarded as an regarded as an
essential ingredient in determining whether the goods are excisable or not and
“marketable” been held to mean that the goods are ready and fit for sale or are
capable of being bought and sold. In the given case, as the goods received by the
appellant is already marketable and o further ‘treatment’ was adopted to make
them marketable, the activities being only a part of marketing strategy and does
not enhance their marketability and hence does not amount to ‘manufacture.”
Thus, looking at the issues, it can be concluded that what the applicant is providing is an
online retail distribution channel and associated logistical services and the activities
described above does not amount to “manufacture’ within the meaning of section 2(f)
of the Central Excise Act, 1944. They are service providers and therefore liable to service
tax under the Finance Act, 1944.
Chapter-2
1. CCEx. V. Wock-hardt Sciences Ltd (2012)
The assessee was a manufacturer of Povidone Iodine Cleansing Solution USP (“PICSU”)
and Wokadine Surgical Scrub (“WSS”). The assessee contended that the said products
were ‘Medicaments’ under Tariff Heading 3003 as it was used for surgical cleaning while the
department contended that they were ‘detergent’ under Tariff Heading 3402.90.
The products in question were understood as medicaments in common parlance and trade.
Therefore merely because of alternative used in making detergents, they could not be
classified as ’detergents’.
2. Salora International Ltd. V. CCEx. [2012]
Parts of television sets which were assembled into Television sets (to see its proper
functioning) and which were subsequently disassembled before removal from factory cannot
be classified as parts of television sets.
The same were to classified as complete television set by invoking Rule 2(a) of Rules for
interpretation of Tariff.
Manufacture: manufacturing process is completed when parts of TV sets are assembled and
completed into Television sets even though the same as subsequently disassembled and
removed in parts.
3. Circular No. 19/2012- Cus, dated 11-07-2012
Mouse pads are not parts and accessories of computer Mouses and hence classifiable
according to their constituent material:
4. CCEx. Vs. Pepsi Foods Ltd. (2012) [imp.]
Manufactured Product: Cheetos Wheels and Lehar Kurkure
Heading: 1904.10: Prepared foods obtained by swelling or roasting of cereals or cereal
product (Duty 10%)
Heading 2108.99: Edible preparations not elsewhere specified and put up in retail
containers (Duty 0%)
Classification: Heading 21088.99
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5. CBEC Circular 13/2013
Manufactured product: Low noise Block (LNB) down converter meant for amplifying weak
satellite Television Reception system. It amplifies weak signals.
Heading 8525: Transmission apparatus
Heading 8529: Part to be used with dish antenna
Heading 8543: Electrical machines and apparatus having individual functions, not specified
or included elsewhere
Classification: Heading 8549
6. [CCEx. Vs. Connaught Plaza Restaurant(P) Ltd. (2012)]
Manufactured item: Soft serve (ice cream) served by McDonalds
[imp.]
Heading 21.05 (16% duty): Ice cream and other edible ice
Heading 04.04 (0% duty): Other Dairy produce, edible products of animal origin, not
elsewhere specified or included
Heading 2108.91 (0% duty): Edible preparations, not elsewhere specified or
included-not bearing a brand name.
Decision: heading 21.05
7. Amla/Brahmi/Mehndi and other masala pudi used in preparation of hair oil- Not amounts
to hair oil- It is classifiable as vegetable preparation - Liable to nil rate of duty [CCEx. Vs.
M.M. Khambhatwala (2012)]
8.CCEx. VS. Hindustan Lever Ltd. (2013)
Manufactured product : Liril Active Shower Gel
Heading 33.04 Beauty or make up preparations and preparation for the care of the skin
Heading 34.01 Soap, organic surface active products and preparation for use as soap, soap
in the form of liquid or cream
Decision: Soap/Liquid soap
9. CBEC Circular No.20/2013
Manufacuted product: Tablet Computers
Heading 8417: Apparatus for transmission or reception of voice, images or other data,
including apparatus for communication in a wired or wireless network
Heading 8471.30: Portable Automatic data processing machines
Decision Portable Automatic data processing machines
10.CBEC Circular 28/2013
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Manufactured product: Cockroach traps and mosquito repellent
Heading 3506: prepared glues and adhesives
Heading 3808: Insecticides, fungicides, disinfectants and similar products
Heading 3822: Diagnostic or laboratory reagents
Heading 3926: Articles of plastics
Heading 4823: Articles of paper pulp, paper, paperboard, etc.
Decision: Insecticides
11. CBEC Circular 19/2013
Manufactured product: Filters for filtering blood in course of dialysis
Heading 8421: Filtering or purifying machinery and apparatus for liquids
Heading 9018 90 31: Renal dialysis equipment (artificial kidneys, kidney machines and
dialysers)
Decision: Filtering or purifying machinery and apparatus for liquids
12. Revenue cannot challenge classification done by CG in an E/N.
[Keihin Pennalfa Ltd. (2012)]
13. CCEx. v. Hindustan Lever Ltd. [2013]
Heading 34.01 covers soap and various other substance. Sub heading 3401.10 in which the appellant
had classified the goods was “Soap in any form”
Heading 33.04 covers “ Beauty or make up preparations and preparations for the care of the skin (
Other than medicaments), including sunscreen and suntan preparation; manicure or pedicure
preparations”
Decision: Liril Active Shower Gel is Classified under Heading 34.01 of Central Excise Tariff which
covers soaps and various other substance and is not classifiable under heading 33.04.
Chapter-3
1. Where price is not the sole consideration for sale of such excisable goods and they are sold by
the assessee at a price LESS than manufacturing cost and profit, and no additional consideration is
flowing directly or indirectly from the buyer to such assessee, the value of such goods shall be
deemed to be the transaction value.
2. Hotline Electronics Ltd. Vs. CCEx. (2013) [imp.]
VCD player (falling under MRP based duty) was supplied free with colour TV (falling under
MRP based duty), the duty is payable on both, i.e., on TV (its MRP less abatement) and also
on VCD player (its MRP less abatement). AV of VCD can not be taken as NIL as excise duty
is a duty on manufacture and not on sale.
3. Tata Motors Ltd. Vs. UOI (2012)
PDI/after sales service carried out by dealer out of dealer’s margin, not includible in
assessable value of manufacturer.
PDI/after sales service to be provided by the assessee himself or by dealers on behalf of
assessee shall be includible in AV.
4. CCEx. Vs. Ballarpur Industries (2012)
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Insurance and handling charges incurred after clearances of goods at different places and at
different point of time are not includible in AV of such goods.
5. CCEx. Vs. Food & Healthcare specialities (2012)
If job worker is not an independent person i.e., he is a dummy i.e., the real manufacturer is
the principal manufacturer himself, then Rule 10A will not apply and goods will be valued as
per Section 4 read with other rules.
Rule 8 Valuation in case of captively consumed goods: If wholly or partly goods are
captively consumed
Rule 9 valuation in case of goods are sold to/through related person other than ICU: If
whole or part of excisable goods are sold to/through related person
Rule 10 valuation in case of goods are sold to/through ICU: If whole or part of excisable
goods are sold to/through ICU.
6. CC& C.Ex.v. Victory Electricals Ltd. {2013}
“Liquidated damages” deducted by buyer as compensation for delay in Supply of goods by
assessee shall be allowed as deduction in determining transaction value : In a case, where the
manufacturer delays the supply of goods to the buyer and as a consequence of the “penalty” or
“liquidated damages” is imposed on such manufacturer as compensation payable for delaying
supply, the ultimate value payable after deducting such liquidated expenses, would be considered as
transaction value under section 4(3)(d) of the Central Excise Act, 1944 and this value would be
considered for the purpose of ascertaining the amount of duty payable.
7. Circular No. 938/2010-CX.,dated 29-11-2010 that quantity discount, bonus etc, are applicable for
the valuation of goods under section 4 of the Central Excise Act, 1944 and not in case of goods
valued under section 4A.
Imp.] 8. CCEx. Vs. Maruti Suzuki India Ltd. (2014)
If any percent of amount of sales tax collected from its customers is retained by the assessee under
any tax concession scheme as granted by state and such amount is not paid to the Government
Authorities at any point of time, then as per Section 4(3)(d) of Central Excise Act, 1944 the retained
amount of sales tax will be included while computing the transaction value of the goods.
9. Godrej Consumer Products Ltd. Vs. CCEx. [2014]
After sales, expenses of advertisement and sales promotion will not be included in computing AV of
goods as per Section 4, in a case where such expenses are incurred by the buyer of goods who in
turn is responsible for selling the goods to ultimate consumer and no flowback of additional
consideration from such buyer arose to the seller.
Chapter-4
1. Sintex Industries Ltd. Vs. CCEx. (2013)
If assessee has two units separately registered, then, each such unit shall be regarded as a
separate factory. Therefore, use of electricity in another factory can not be regarded as
captive use.
2. UOI Vs. Hindustan Zinc Ltd. (2013)
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CCr can not be denied on transit loss of inputs occurring on account of dryage of moisture
content and human error in weighment.
3.CCEx. VS. SLR Steels Ltd. (2012)
Steel and cement, etc. used in manufacture of storage tank and pollution control equipment
(FP) eligible for C Cr. as input.
4. CCEx. V. Prime Health Care Products (2011)
Bought out toothbrushes supplied free with toothpaste-Credit of toothbrushes available.
5. KCP Vs. CCEx. (2013)
Sugar plant set up in Vietnam – no credit allowable as no duty paid on final product.
6. CCEx. Vs. Inductotherm (I) Pvt. Ltd. (2013)
C Cr. Can not be utilised for paying sums payable under Section 11D.
7. If amounts payable under Rule 3(5) or Rule 3(5A) or Rule 3(5B) are not paid by the
manufacturer or provider of output service, then, it shall be recovered, in the manner as
provided in Rule 14 of CCR, 2004, for recovery of CCR wrongly taken. [w.e.f.2013]
8. CCEx. Vs. Bhuwalka Alloys Pvt. Ltd. (2012)
Even if supplier of inputs not found on the address mentioned in the invoice and there was
not business activity being on at that place, C Cr available so long as there is no dispute that(a) inputs were received and consumed in the factory;
(b) inputs were duty paid;
(c) supplier was an existent person
9. CCEx. Vs. Kay Kay Industries (2013)
C Cr. Allowable to assessee even if supplier has not paid duty liability covered in invoice.
10. Yee Kay Technocrat Pvt. Ltd. Vs. CCEx. (2013)
Benefit of Rule 10 available only if transferee also operates under Cenvat scheme.
11. CCEx. Vs. Pearl Insulation Ltd. (2013)
Reversal before utilisation – amounts to not taking credit – no interest leviable under Rule
14.
12. CCEx. Vs. Teletube Electronics Ltd. (2013)
In case duty inputs are removed outside factory due to shortage of space or for some other
working / processing and credit taken thereon is reversed, then, when such inputs are
brought back into factory, assessee will be eligible for credit of duty paid on the inputs.
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13. CCEx. Vs. Maithan Ceramics Ltd. (2013)
If defective refractory bricks are brought back to factory and are used to manufacture new
refractory bricks, then assessee can take credit of duty earlier paid on such defective
refractory bricks at the time of receipt under Rule 16 of CER, 2002.
14. CCEx. v. Santel Color Ltd. [2013] Duty paid on paint and building materials for making the
production hall as dust free and fire retardant, as dust free hall was essential for assembling of the
final product “Color picture tubes” will be considered as incidental and ancillary requirement or the
manufacture of final product and thus, Cenvat credit f duty paid on paint and building materials will
be allowed.
15. Madras High Court in CCEx. v. R.K. Herbals Pvt. Ltd. [2012] held that, “ the bowls and spoon
supplied along with the ‘herbal shikakai powder’ is considered as input for shikakai powder and
eligible for CENVAT credit.
16. The CBEC vide the its Circular No. 962/2012 dated 28-03-2012 has clarified that Cenvat credit
balance available on the last day of the month or quarter can be utilized for payment of duty relating
to that month or quarter, even if the self assessed duty is paid belatedly (i.e. after the due date
specified under Rule 8 of the Central Excise Rules, 2002).
17. CBEC vide Circular No. 962/05/2012 has clarified that arrears of duty demanded under section
11A of the Central Excise Act, 1944 can be paid by utilizing Cenvat Credit balance available on the
date of payment of such duty demand, since the restriction of Rule 3(4) of Cenvat Credit Rules, 2004
applies to self assessed duty and not for duty demands under section 11A.
Q1. M/s PQR Ltd. furnishes you with the following information :
Particular
Rs.
Cenvat Credit Balance as on 1st July 2014
15,00,000
Cenvat available on inputs purchased during July 2014
40,00,000
Cenvat available on Inputs purchased from 1st August 2014 to 25th August
12,00,000
2014
6,00,000
Duty liability for the month of July 2014 to be discharged as per due date
The department has confirmed a duty demand under section 11A of the Cenvat Excise Act, 1944
pertaining to period of September 2013 to November 2013 amounting to Rs. 60,00,000 vide order
dated 25th August, 2014.
The Cenvat balance available in the month of November 2013 was Rs. 7,50,000. The company
wants to utilise the Cenvat Credit earned upto 25Th August 2014 to pay the said duty demand.
Discuss.
Solution: The company can utilise Cenvat Credit of (Rs. 15,00,000+Rs. 40,00,000+ Rs. 12,00,000- Rs.
6,00,000) which is available on 25th August 2014, amounting to Rs. 61,00,000 for payment of arrears
of duty demand.
Imp] 18. Removal of capital goods waste and scrap [Rule 3(5A)(b)] : If the capital goods are cleared
as waste and scrap, the manufacture shall pay an amount equal to the duty leviable on transaction
value.
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Implications of the amendment : Prior to the amendment in case if the capital goods were removed
as waste and scarp, the manufacture was liable to pay an amount equal to the CENVAT credit taken
on capital goods as reduced by the % points for each quarter of part thereof use or duty leviable on
transaction whichever was higher. W.E.F. 27-09-2013 in case the capital goods are removed as waste
and scarp, the manufacture will be liable to pay duty leviable on transaction value.
19. The amount payable as per Rule 3(5), 3(5A), 3(5B), 3(5C) shall be paid by the manufacturer of
goods or the provider of service by debiting the C Cr or otherwise on or before the 5th of the
following month except for the month of March, where such payment shall be made on or before
the 31st March.
If the manufacturer or provider of service fails to pay the amount payable, it shall be recovered in
the manner as provided in Rule 14, for recovery of Cenvat credit wrongly taken and utilized.
[w.e.f.08-01-2014]
20. Rule 3(5C) is also applicable on provider of service.
[w.e.f. 08-01-2014]
21. The conditions, safeguards and limitations subject to which refund of CENVAT Credit shall be
allowed to service providers providing services taxed on reverse charge basis has been notified
vide Notification No. 12/2014-CE (N.T.) dated 03-03-2014. The relevant provisions are us under:
(1) Services eligible for refund: The refund shall be claimed of unutilized CENVAT credit taken on
inputs and input services during the half for which refund is claimed, for providing following
output services namely:
(1) Renting of a motor vehicle designed to carry passengers on non abated value, to any
person who is not engaged in a similar business.
(2) Supply of manpower for any purpose or security services; or
(3) Service portion in the execution of a works contract;
(2) Refund of unutilized CENVAT Credit: The unutilized CENVAT credit taken on inputs and input
services during the half year for providing partial reverse charge services shall be arrived as
under:
Unutilised CENVAT credit taken on inputs and input
Services during the half year for providing partial
=
(A)-(B)
Reverse charge services
Where,
A=
CENVAT credit taken on
inputs and inputs services
During the half year
Turnover of output service under partial reverse
* charge during the half year
Total turnover of goods and services during
The half year
B=
Service Tax paid by the service provider for such partial reverse charge services
During the half year:
(3) Refund cannot exceed service tax paid by service receiver: Refund of unutilized CENVAT
credit shall not exceed an amount of service tax liability paid or payable by the recipient of
service with respect to the recipient of service with respect to the partial reverse charge
services provided during the period of half year for which refund is claimed.
(4) Refund amount to be debited to CENVAT A/C: The amount claimed as refund shall be
debited by the claimant from his CENVAT credit account at the time of making the claim.
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(5) Re-credit if refund if than amount claimed: In case the amount of refund sanctioned is less
than the amount of refund claimed, then the claimed may take back the credit of the
difference between the amount claimed and the amount sanctioned.
(6) Half yearly refund claim: The claimed shall submit not more than one claim of refund under
this notification for every half year.
(7) Refund claim after filing return: The refund claim shall be filed after filing of service tax
return as prescribed under rule 7 of the services Tax Rules for the period for which refund is
claimed.
(8) Meaning of half Year: “Half Year” means a period a six consecutive months with the first half
year beginning from the 1st day of April every year and second half year from the 1st day of
October of every year.
22. If Goods are cleared from 100% EOU to DTA, then ED is payable equivalent to Custom Duty. Then
Education cess on ED is not payable. [Kumar Arch Tech Pvt. Ltd. Vs. CCEx. (2013)]
23. Where assessee had purchased inputs from first stage dealer and had taken all reasonable steps
to ensure that duty was paid on inputs, it would be impracticable to require assessee to go beyond
records of first stage dealer and verify whether original manufacture had paid duty on such goods.
Thus, CENVAT credit would be admissible to him.
[CCEx., Cus. & S.T v Juhi Alloys Ltd. [2014]
24. Bharti Airtel Ltd. v. CCEx. [2014]
Tower and Parts of tower, Prefabricated building, Printer and Office Chairs purchased by assessee
while providing service of cellular telephone services would neither be considered as capital goods
nor as Inputs and nor the tower be considered as accessory or part of the antenna. Thus, duty paid
on these inputs would not be available as Cenvat Credit.
25. Cus. & CCEx. v. Jindal Polyester [2014]
If two units are being run at one place, producing two different items and the electricity is supplied
to both of them by a common generator, than future oil used for generation of electricity for use of
two units of same assess shall be eligible for credit.
26. CCEx. Vs. Vesuvious India Ltd. [2014]
CENVAT Credit shall not be admissible of service tax paid on outward transportation of goods upto
the point of delivery of goods to the customer premises.
27. Zinser Textile Systems Pvt. Ltd Vs. CCEx. [2014]
Services utilized by Service provider for providing maintenance and repair services to his customers
at their site after sale of the final product, during warranty period, would be considered as input
service for assessee and CENVAT credit of said service would be available to him.
28. Place of removal under CCr 2004
a) Factory
b) Warehouse
c) Depot
29. CCEx. Vs. Fenner India Ltd. [2014]
Reversal of CCr is not required to be made for inputs destroyed in fire accident, where fire had taken
place at a time when the work for manufacture of the final product was in progress and such inputs
were used in the manufacture of final product.
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30. The manufacturer or the provider of service shall not take CCr on inputs after 6 months of the
date of issue of any of the documents specified in Rule 9(1). [Amended w.e.f. 1-9-2014]
Purpose of amendment is to ensure that after issue of a document under Rule 9(1), credit is taken
for the first time within 6 months of the issue of the document. Once this condition is met, the
limitation has no further application.
31. Mandatory electronic payment of duty [Rule 8 (1B)] : Every assessee shall
electronically pay dity through internet banking. However, the Assistant Commissioner or the
Deputy Commissioner of Central Excise, for reason to be recorded in writing, allow an
assessee payment of duty by any more other than internet banking.
32. Interest leviable @ 18% p.a. in case of default in payment of duty by due date [Rule
8(3)]: If the assessee fails to pay the amount of duty by due date, he shall be liable to pay
the outstanding amount along with interest at the rate specified under section 11AA of the
Act i.e. 18% p.a., for the period starting with the first day after due date till the date of actual
payment of the outstanding amount.
33. Penalty for default in payment of duty beyond 1 month from the due date [Rule
8(3A)]: If the assessee fails to pay the duty declared as payable by him in the return within a
period of 1 month from the due date, then the assessee is liable to pay the penalty at the
rate of 1% on such amount of the duty not paid, for each month or part thereof calculated
from the due date, for the period during which failure continues.
Chapter-5
1. Rule 7 provisional assessment [imp.]
The assessee shall be granted refund after final assessment along with interest @ 6% pa
from date after expiry of 3 months from receipt of duly complete application till the date of
refund.
[w.e.f.1-3-2013]
2. Virat Crane AGR- Tech Ltd v. commissioner – 2013
Unless it is shown by the assessee to the satisfaction of the proper officer that goods
are indeed unfit for consumption, they cannot be destroyed. The rule has to be
interpreted strictly. The authority can arrive at his satisfaction only when necessary
evidence is produced by the assessee. The assessee must produce relevant
analytical / other report.
[under Rule 21]
3. CCEx. Vs. Mahalakshmi profiles Ltd. (2012)
Rule 25 is applicable if element of fraud, collusion…..with intent to evade the payment of
duty is present.
4 CCEx. Vs. Vijaya Steels Pvt. Ltd. (2012) & CCEx. Vs. Harish Silk Industries (2013)
In case it is alleged that directors of the company were not diligent in payment of duty, the
case does not fall under Rule 25 or 26 of CER 2002. The appropriate rule is Rule 27 under
which penalty upto Rs.5,000 can only be imposed.
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5. Obligation to furnish information return [Section 15A][Inserted by Finance (No.2)
Act, 2014 w.e.f. 6-8-2014] : The provisions are discussed as under1. Person liable to furnish information return: Any specified person, who is
responsible for maintaining record of registration or statement of accounts or any
periodic return or document containing details of payment of tax and other details or
transaction of goods or services or transactions related to bank account or
consumption of electricity or transaction of purchase, sale or exchange of goods or
property or right or interest in a property, Under any law shall furnish an information
return of the same in respect of such periods, Within such time, from (including
electronic form) and manner, To such authority or agency as may be prescribed.
2. Specified persons: The following are specified persons:a. An assessee; or
b. a local authority or other public or association; or
c. any authority of the state Government responsible for the collection of VAT or
sales tax; or
d. an income tax authority; or
e. a banking company; or
f. a State Electricity Board; or an electricity or transmission licensee under the
Electricity Act, or any other entity entrusted, as the case may be, with such
functions by the Central Government or the State Government; or
g. the Registrar or Sub-Registrar of the Registration Act, 1908; or
h. a Registrar of the Companies Act, 2013; or
i. Motor vehicle registering authority under the Motor Vehicles Act, 1988; or
j. The Collector of the Land Acquisition, Rehabilitation and Resettlement Act, 2013;
or
k. The recognized stock exchange; or
l. A depository; or
m. An officer of the Reserve Bank of India.
3. Defective return: Where the prescribed authority considers that the information
submitted in the information return is defective, he may intimate the defect to the
person who has furnished such information return and give him an opportunity of
rectifying the defect within a period of 30 days from the date of such intimate or
within such extended period, as the authority may allow.
4. Notice to furnish return: If a person liable furnish information return has not
furnished the same within prescribed time, the prescribed authority may by notice
require him to furnish such return within a period not exceeding 90 days from the
date of service of notice.
5. Penalty for failure to furnish information return [Section 15B]: If a person who is
required to furnish an information return under section 15A fails to do so within the
period specified in the notice, the prescribed authority may direct that such person
shall pay, by way of penalty, a sum of Rs. 100 for each day of the period during
which the failure to furnish such return continues.
Chapter-6
1. Where the 2 units have separate legal identity but having same effective financial control
and management. Therefore, their clearances should be clubbed for the purpose of SSI
exemption. Use of code names of other persons amounts to use of brand name of another
person.
[Parle Bisleri Pvt. Ltd. Vs. CCEx. (2011)]
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2. If two persons equally entitled to a same brand name, then it will not be assume that one
person is using the brand name of another person. It means SSI exemption is available.
[CCEx. Vs. mini-max Industries (2011)]
3. When trade mark of a foreign company is assigned with all rights to the assessee, the
assessee becomes the owner of such trade mark in India. Therefore, it will not be
considered that assessee is using the brand name of another person.
[CCEx.Vs. Convertech Equipment Pvt. Ltd. (2011)]
5. If SSI unit wrongly affixes a trade mark of another person, be it registered or not, then
such default would not be eliminated by the provisions of Trade Marks Act granting
retrospective registration. Thus, the grant of registration certificate with retrospective effect
under Trade Mark Act will not automatically provide benefit of exemption to SSI unit.
[CCEx. Vs. Meyer Health Care Pvt. Ltd. (2011)]
6.CCEx. Vs. ACE auto Co. Ltd. (2011)
If assessee cleared clutch plates manufactured by it to Tata Motors under brand name
“TATA ACE”, treated as using the brand name of another person (TATA Motors), SSI
exemption not available.
7. Swift Finvest Pvt. Ltd. Vs. CCEx. (2012)
Use of brand name of other person under permission from him, treating as using the brand
name of another person, therefore, SSI exemption is not available.
8. CCEx. Vs.kandhari Radio Corporation (2012)
If a manufacturer creates dummy units; no clubbing of clearances for SSI exemption, if SCN
not issued by the department to clubbed unit.
9. Harnik Food Industries Ltd. Vs. CCEx. (2012)
Clearances of 2 units to be clubbed for SSI exemption, if there is financial flowback.
Imp.] 10. CCEx. Vs. Australian Foods India (pvt) Ltd. (2013)
Brand name need not be physically affixed on goods. Affixation of brand name can be
inferred from surrounding environment also viz. Packing, accessories, menu cards, etc.
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Imp.] 11. Supreme Court in Bonanzo Engineering & Chemcial Pvt. Ltd. V.
CCEx. [2012] (SC) has held merely because assessee has paid duty on exemption goods by
mistake, their value shall not be included for computing value of clearance of Rs. 150 lakhs. SSI
exemption cannot be denied even if the assessee has not claimed refund of such excess duty.
Custom Duty
Chapter-7 Basic Concepts
1. [CC Vs. Symphony Services corporation India Ltd.(2012)]
If goods rendered useless by the natural causes Viz rains, since goods are available and have
not been destroyed/lost, Section 22 applies – No relinquishment u/s 23.
2. CC Vs. Next Fashion Customs Pvt. Ltd. (2012)
Remission of duty is allowable under Section 23 even if assessee did not take care of goods
destroyed by fire.3
3. CC v. Shreeji Overseas (India) Pvt. Ltd. [2013] [Imp.]
As per secton 46, bill of entry under this section may be presented AT ANY TIME the
delivery of the import manifest or import report as the case may be. Thus, there is no timelimit to file bill of entry after delivery of import general manifest. Since, there is no delay in
filing of the bill of entry, no general penalty under section 117 (upto Rs. 1 lakh) can be
imposed.
4. E-filling of import manifest/export manifest except where infeasible : Such import manifest
must be filed electronically in prescribed form. However, the commissioner of customs may,
in cases where it is not feasible to deliver it by presenting electronically, allow it to be
delivered in any other manner.
(Amendment by Finance Act, 2013)
5. Where the importer fails to pay the import duty within 2 working days (earlier 5 WD)
from the date on which the bill of entry is returned to him for payment of duty, then he shall
pay interest @15%pa u/s47(2). [Amended byFA, 2013][Most imp.]
6.E-payment of duty if duty is Rs.1,00,000 or more per bill of entry.
6. Tirupati Udyog Ltd. Vs. UOI (2013)
Clearances from DTA to SEZ - not liable to export duty.
7. In case of provisional assessment, final assessment is to be made under Section 17 by
making a speaking order.
[Visa Steel Ltd. Vs. CCEx. (2014)]
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8. Time limit of presentation of Bill of Entry: A bill of entry may be presented at any time after
the delivery of the import manifest or import report as the case may be.
However, a bill of entry may be presented even before the delivery of such manifest or
report, if the vessel or the aircraft or the vehicle by which the goods have been shipped for
importation into India is expected to arrive within 30 days from the date of such presentation.
In case if the vessel or aircraft or vehicle do not arrive within 30 days of presentation of the
bill of entry, the bill of entry so presented shall stand cancelled .
Effect of amendment: The special provision in relation imports by vehicle/land (report)
stands omitted. This amendment will allow the filling of a Bill of Entry prior to the Import
Report (as the Manifest is called in case of import by land) for imports through land route as
well.
Chapter-8 Types of Custom Duties
1. Non Imposition of safeguard duty: The safeguard duty shall not apply to articles
imported by a 100% export-oriented undertaking or a unit in a special economic zone
unlessa. Specifically made applicable in such notification or such impositions, as the case
may be; or
b. The article imported is either into the domestic tariff area and in such cases
safeguard duty shall be levied on the portion of the article so cleared or so used
as was leviable when it was imported into India.
Chapter-9
1. Gira Enterprises v. CC [2014]
If valuation of goods is to be made on the basis of the identical goods, the same must be
evidenced by the department that such imports are comparable imports and assesee must
be given reasonable opportunity to put his counter claim.
Chapter-10 Warehousing
1. CCEx. v. Decorative Laminates (I) Pvt. Ltd. [2010]
[imp.]
 Remission u/s 23 is allowed only “at any time before clearance for home
consumption”;
 When goods are deemed to be improperly removed u/s 72 after expiry of
warehousing period under section 61, then, such goods are deemed to be “cleared
for home consumption” without any order u/s 68;
 Therefore, any claim of remission after such deemed “clearance for home
consumption” cannot be allowed.
2. Raj Exports v. Central warehousing Corpn. [2013]
[imp.]
After expiry of warehousing period, the goods are deemed to be improperly removed even if
department has not issued any notice u/s 72. In such case, even if goods have been
lost/destroyed by cyclone, no remission can be allowed u/s 23.
3. . Raj Exports v. Central warehousing Corpn. [2013]
[imp.]
After expiry of permissible warehousing period, the goods are deemed to be improperly
removed and the assessee is liable to pay duty thereon, even if no notice for collection of
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such duty has been issued by customs department. However, in absence of any statutory
time limit for issuance of notice u/s 72 such notice must be issued within reasonable time
and if notice is not issued within reasonable time, no recovery can be made.
Chapter-11 Duty Drawback
1. Pratibha Syntex Ltd. Vs. UOI (2013)
Erroneously paid duty drawback- recovery must be made within reasonable time. Therefore,
issue of show cause notice seeking recovery after expiry of 3 years from the date of
disbursement of erroneous drawback, was held as beyond reasonable time and invalid.
2. Groz- Beckect Asia (P.) Ltd. v. UOI [2014]
Drawback would be available under section 74 of the Customs Act, 1962 in a case where
imported goods are just repacked and then re-exported. Such repacking cannot amount to
any ‘Process’ or ‘operation’ on the goods.
Chapter-12 Baggage
1. Passengers returning from countries other than Nepal, Bhutan, Myanmar or China
[Rule 3]: In case of an Indian resident or a foreigner residing in India returning from any
country other than Nepal , Bhutan, Myanmar or China, the following articles shall be allowed
free of duty in the baggagea. Personal effects: Used personal effects, excluding jewellery, required for
satisfying daily necessities of life: and
b. Other articles: Articles, other than those mentioned in Annexure I, carried on
the person or in the accompanied baggage of the passenger upto a value
mentioned below:
Duration of stay aboard
Age of Passengers
Upto 10 year
10 years or above
3 days or less
More than 3 days
Rs. 3,000
Rs. 17,500
Rs. 17,500
Rs. 45,000
2. Re. Hemal K. shah (2012)
Passenger misdeclaring goods and trying to smuggle them cannot avail of benefit of Section
80.
Chapter-13
1. Manish Lalit Kumar Bavishi v. ADG (2011)
Section 110 makes it mandatory for the department to make available copies of seized
documents when demanded .
2. O.T. Enasu v. UOI (2011)
Penalty u/s 112 can be imposed on Managing Director only if he knowingly evaded payment
of duty No penalty if no deliberate attempt on the part of such MD.
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3. Shree Grotex Trade Links Pvt. Ltd. v. [2014]
When the goods confiscated by the Department are found not confiscable as per the
decision of appeal or adjustication or of review application, then no application is required to
be filed by the assesee to authorities to request for release of goods. It is obligatory for the
Department to release the goods immediately.
Chapter-13
1. CCEx. V. Ram Kumar Aggrawal [2012] 280 ELT 13(MP)
Service of show –cause notice u/s 124 within 6 months is not mandatory. In case of seizure
of goods, show cause notice must be given within six months of the seizure of the goods as
contemplated in sections 110(2) and 124 of the Customs Act, 1962. No where under the said
sections it is required that the said notice must be served within 6 months the seizure of
goods. Thus issuance of notice by registered post within six months is a sufficient
compliance in the eye of law, more so, when the same has been received by assessee.
Legislature does not intend to require service of notice within six months.
2.
Sec.
121
Title
Confiscation of saleproceeds of smuggled
goods
Provision
Where any smuggled goods are sold by a person
having knowledge or reasons to believe that the
goods, the sale-proceeds thereof shall be liable to
confiscation.
Weizmann Ltd. v. CC[2013]
Section 121 not applicable, if smuggling takes place after sale
A dealer in foreign exchange sold foreign currency in ordinary course of business and received
pay order. The buyer smuggled such currency. Department confiscated “pay-order”/sums
received by dealer.
Held, Section 121 applies to Sale proceeds of “Smuggled goods”. In this case, the “foreign
currency” was smuggled by buyer only after sale by dealer-assessee. Thus, the dealerassessee had not sold “smuggled foreign currencies”; he had sold such currencies in ordinarly
course of business. Hence, pay-order/sums received by dealer could not be confiscated u/s
121.
3. Certain offences to be non bailable: [Finance Act, 2013]
a) evasion or attempted evasion of duty exceeding Rs.50,00,000; or
b) prohibited goods notified under Section 11 which are also notified under Section 135 (1);
or
c) import or export of any goods which have been declared in accordance with the
provisions of This Act and the market price of which exceeds Rs.1 cr.; or
d) fraudulently availing of or attempt to avail of duty drawback or any exemption from duty
provided under this Act, if the amount of duty drawback or exemption from duty exceeds
Rs.50,00,000.
4. All other offences under Custom Act to be bailable. [Finance Act, 2013]
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Most imp.]
5. Be Office Automation Products Ltd. Vs. CCEx. [2014]
Even if the assessee had paid redemption fine to release the goods so as to save the goods
from demurrage, interest or legal expenses, then also he can file an appeal to challenge not
only confiscation but also imposition of the redemption fine on such goods.
6. Bharat M. Shah v. UOI [2014]
If the assesee pays redemption fine to the department so as to release the confiscated
goods from the department, then it is necessary to pay the customs duty also as payable for
the goods so as to release the goods.
If due to any reason assessee do not pay the duty amount and also refuse to redeem the
goods from the Department, then if he desires, he may be granted the refund of redemption
fine paid by him.
Common Topics
Chapter-14 Exemptions
1. Grasim Industries Ltd. V. CCEx.(2011)
Erroneous refund- Appeal not required –Recovery to be made u/s 11A:
2. CCEx. V. Diamond scaffolding Co. (2011)
Bonafide view that process not manufacture- Extended period not invocable.
3. CP meier v. CCEx. [2012]
Exemption from duty which was notified for goods manufactured at site of construction, for
use in construction work at such site cannot be denied when such manufacturing activity
was carried out at off road site to avoid the traffic jams and other related problems.
4. Loyal Textile Mills Ltd. V. joint secretary [2012]
Explanatory notification only interprets the existing rights and is treated as part and parcel of
the original notification. Explanatory notification being part of original notification has to apply
from date of original notification.
5. CC.v. Merchant Impex [2012]
Issue of SCN is mandatory to raise a demand : A mere letter from the department specifying
that assessee was ineligible for exemption can not be regarded as show-cause notice being
communication or advices from department are not show-cause notice. There fore any
adjudication order passed without SCN is invalid.
6. CCEx. Vs. Rajendra Narayan (2012)
Exemption to goods manufactured at site and used in construction at site – Where
construction for Delhi Metro was spread all over, manufacture of components at casting yard
allocated by Delhi Metro amounted to manufacture at site – Exemption allowable.
7. Unicorn Industries Vs. UOI (2013)
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Withdrawal of assured central Excise exemption granted to units located in Sikkim engaged
in manufacture of “mouth Freshner” (Pan masala) was held unconstitutional because had
made investments based on promises by Government and such promise could not be
withdrawn without any justification.
8. Unworthy Textile Ltd v. CCE 2013
For invocation of extended period of limitation, there must be deliberate default on part of
assessee and burden of proving same lies on department and assessee cannot be asked to
substantiate his bona fide conduct.
9. CCE. V. Gujarat Normada Fertilizers Co. Ltd (2012) [Most imp.]
Voluntary payment of time barred duty – Interest not payable even if duty paid.
If there is no evasion case, the department cannot issued notice beyond 1-year period of
limitation. In such case, if assessee pays duty voluntarily for period prior to 1 year, then,
since such duty itself was not recoverable u/s 11A, department cannot seek payment of
interest u/s 11AA.
For example, in 2013, Mr. Ram came to know of short payment and pays duty relating to
year 2010-11 (though there was no case of evasion). Since there was no evasion, extended
period of limitation was not invokable by department. Mr. Ram has paid time barred duty,
but he cannot be asked to pay interest on delayed payment of time barred duty.
10. CCE v. Standard Niwar Mill (2013)
[Most imp.]
Duty collected equal to duty leviable – demand must be raised u/s 11A – No demand
under section 11D, as no excess collection.
11. Suman N. Agarwal v. UOI (2013)/Anita Grover v. CCE (2013)/ Vandana
Bidyut chaterjee v. UOI (2013)
Excise / Customs / ST dues of a company cannot be recovered from its directors or
sharesholders.
12. CCE v. EMI Transaction Ltd (2013) (292) ELT 329 (Bom.)
Asessee cannot be penalized for guilty of buyer
Facts : Assessee claimed exemption available to projects financed by international bank on
basis of certificate of buyer that buyer was an eligible project. Later, buyer stated that its
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certificate was erroneous. Department demanded duty from assessee, which was paid along
with interest. Department also levied penalty on assessee.
Held : Since erroneous certificate / representation was furnished by buyer, there was no
attempt to evade payment of duty by assessee. Hence, assessee could not be penalized for
an error / guilty of buyer. The penalty was set aside.
Chapter-15
1. CCus., Chennai v. BPL Ltd. 2010
Chartered accountant certificate is not a sufficient evidence to establish that incidence of
duty has not been passed on.
2. Asia Pacific Commodities Ltd. V. Assistant Commissioner of customs [2012]
Merely because value of goods in the shipping bill is FOB value, the value cannot be said to
include the customs duty when the invoice value and the FOB value is same. The refund
claim is not barred by unjust enrichment. Refund cannot be denied on grounds that the
appellant had not filed appeal against the assessment order.
3. Western Coalfields Ltd. Vs. CESTAT (2013)
Principle of unjust enrichment applies to refund of duty paid on the capital goods as well.
4. Shri Jagdamba Polymers Ltd. Vs. UOI (2013)
Where excise authorities acted rather unjustly and initially delayed not only refund, but
thereafter, unjustly withheld interest payable on such refund, assessee was entitled for
interest on delayed payment of interest.
5. Em Pee Syndichem Pvt. Ltd. Vs. UOI (2012)
Sums paid without actual import to be refunded.
6. International conveyors Ltd. v. CCEx. & Cus. [2014]
Doctrine of unjust enrichment is not applicable and refund cannot be denied where:
a. Due efforts were made to find out whether amount of duty had been passed over
to purchasers; and
b. Even purchasers had admitted fact that amount of duty had not been recovered
from them, and said finding is not challenged
In case of refund is due to the assessee, for refunding the amount the department
cannot ask the assessee to give an undertaking that refund amount should be paid
back on outcome of any other case if the same is decided in favour of the
department.
7. CC v. Chandra Prabhu International Ltd. [2014]
Anti- dumping duty is a special duty is not duty of customs.
Applicability of provisions of Section 27 of customs Act, 1962 Limited to the extent of “as far
as may by applicable”, means as far as is not covered by sections 9A and 9AA.
In absence of rules on period of limitation under section 9AA, section 9A(8) would operate to
incorporate provisions of section 27 of the Customs Act, 1962 in this regard.
Chapter-16 Advance Ruling and Settlement Commission
1. CBEC Circular No. 33/2013
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Goods required for development of facilities such as ash disposal system including ash
dyke, water intake including treatment and storage facilities and coal transport facilities
required for ultra mega/ mega power projects are eligible for project power concession,
notwithstanding the fact that such facilities are set up inside or outside the power plant’s
designated boundary.
2. UOI v. K. Amishkumar Trading Pvt. Ltd. (2011)
No settlement application if no SCN issued.
3. Columbia sportswear Co. Vs. DIT (2012)
Writ lies against the rulings of AAR
4. Frontier Cycle Industries Pvt. Ltd. Vs. UOI (2013)
Settlement Commission cannot grant immunity from payment of interest.
Imp.
5. Meaning of Activity under Advance Ruling: [Amended]
1) under central excise: Activity means production or manufacture of goods and includes
any new business of production or manufacture proposed to be undertaken by the existing
producer or manufacturer
2) under Customs: Activity means import or export and includes any new business of
import or export proposed to be undertaken by the existing importer or exporter.
6. Uttam Chand Sawal Chand Jain v. UOI [2014]
Settlement Commission do not have a jurisdiction under section 127B of Customs Act 1962,
to accept the baggage cases, where the assessee fails to file Baggage Declaration From
requiring the description of goods or where no bill of entry is filed
Imp.]7. The applicant has filed returns showing production, clearance and central excise
duty paid in the prescribed manner;
However, the Settlement Commission, if it is satisfied that the circumstances exist for not
filing the returns, may after recording the reasons therefore, allow the applicant to make
such application
Objective of amendment: The Delhi High Court in J.R.B.Engineering works v. Settlement
Commission [2012] (Del.) held that, since the applicant was neither registered with Central
Excise Department nor was filing any declaration/return during relevant period, hence, the
condition of clause (a) of Proviso to Section 32E(1) was not complied with and, therefore,
the settlement application was not maintainable at all. The said ruling has been mollified and
section 32E(1) is amended to allow filling of applications of settlement before the Settlement
Commission is cases where the applicant has not filed the returns after recording reasons
for the same.
8. Vadital gates limited v. UOI [2014]
If the application for settlement commission is rejected for non-deposit of excise duty and
interest, then the applicants can make a second application after depositing the amount of
additional duty and interest.
9. Resident private limited company can also make application to ARA. [Applicable for
Excise, Customs and Service Tax Notifications No. 51/214-Cus (N.T.) w.e.f. 11-7-2014]
Chapter- 17 Appeal and revision
1. UOI v. Guwahati Carbon Ltd. (2012)
23
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Valuation & Classification Matters- Direct appeal to Supreme Court- No appeal to High
courts- High court cannot also entertain writ petitions
2. Mohd. Fariz & co. v. CC (2010)
Appeal dismissed as time barred –No appeal lies to high court only writ lies.
3. UPSRTC v. CCEx. (2011)
No SCN issued- not aggrieved person- No writ (SC) petition/ appeal lies:
4. UOI Vs. Ind Metal Extrusions (Pvt.) Ltd. (2013)
Revision order of central Government is not appealable but challengable in writ petition.
Only assessee can challenge it, department cannot challenge it.
Service Tax
1. Rule 7: Determination of POT in case of specified person
 If the Invoice in respect of service has been issued before 1-10-2014:
In case of services, in relation to which recipients of service is liable, the POT
shall be the date of payment.
However if the payment is not made within 6 months from the date of invoice
then POT shall be determine as per rule 3.
W.e.f. 01-10-2014: Where the payment is not made within a period of 3 months
of the date of the invoice, the POT shall be the date immediately following the
said period of 3 months.
2. Every assessee shall electronically pay the service tax payable by him, through
internet banking w.e.f 1-10-2014.
However, the AC/DC of central excise, having jurisdiction, may for reasons to be
recorded in writing, allow the assessee to deposit the service tax by any mode other
than internet banking. [Amended]
3. Payment of interest @ 18% p.a. on the amount of service tax [Section 75] [upto 3009-2014]
W.e.f.1-10-2014
S.no.
Period of delay
1)
Up to 6 months
2)
More than 6 months and upto 1 year
3)
More than 1 year
Rate of simple interest
18% pa
18% pa for the first 6 months of delay
and 24% pa for the delay beyond 6
months
18% pa for the first 6 months of delay
+ 24% pa for the delay beyond 6
months upto 1 year + 30% pa for any
delay beyond one year
Note 1: Reduced rate in certain cases: In the case of service provider, whose value of
taxable services provided in a FY does not does not exceed Rs.60,00,000 –
 During any of the Financial years covered by the notice; or
 During the last preceding year, as the case may be,
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Such rate of interest shall be reduced by 3% pa, the aforesaid rate of interest, shall
be reduced by 3% pa and such rate of interest shall be 15% or 21% or 27%
respectively.
4. Prakash Retail P. Ltd. v. DCCT (audit) [2013]
If transfer of title of goods takes place at the buyers premises, then all charges incidental
thereto like transportation, installation and other expenditures incurred by the seller would
become part of the price for which the goods are sold by the seller to the buyer and such
charges will not be subject to service tax. In case if transfer of title of goods takes place at
sellers premise, then all the subsequent charges will not form part of amount for which the
goods are sold and the same can be charged to service tax.
5. CST v. Arvind Mills Ltd. [2014]
Deputation of its employees by a holding company to subsidiary companies on cost-sharing
basis for a limited period did not make such holding company a Manpower Recruitment or
Supply Agency. There was no relation of agency and client hence the services were not
covered under Manpower Recruitment or Supply Agency’s Services.
6. Place of Provision of service rule, 2012 in a tabular form:
Rule
Nature of service Covered
Rule 3 Place of Provision generally:
Services not covered under any of the rules
specified below i.e. rule 4 to rule 12.
Service not covered under any of the Rules
specified below i.e. Rule 4 to Rule 12 and
location of the service received is not
available in the ordinary course of business.
Rule 4 Performance Based services:
1. Service provided in relation to goods
that are required to be made
physically available.
Service provided from a remote
location by way of electronic means
Rule 5
Rule 9
Service provided in respect of goods
that are temporarily imported into
India for repairs and are exported
after the repairs without being put on
any use in the taxable territory, other
than that which is required for such
repair.
2. Services which require physical
presence of receiver of person
acting on behalf of receiver.
Services relating to Immovable property:
Services provided directly in relation to
immovable property
Specified services:
Following services are covered under this:
a. Service by a banking company, or a
financial institution, or non-banking
financial company, to account
Place of Provision
Location of service recipient.
Location of service provider.
Location where service are
preformed .
Location where goods are
situated at the time of
provision of service
Rule shall not be applicable
Location where services are
preformed.
Location where immovable
property is located or
intended to be located
The location of service
provider.
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holders.
b. Online information and database
access or retrieval services
c. Intermediary services
d. Service consisting of hiring of all
means of transport other than,
1. Aircraft, and
2. Vessels excepts yachts
Up to a period of one month.
Works contract services:
Declared service: As per section 66E(h) of the finance act, 1994, service portion in
execution of works contract is a declared service.
Works contract section 65B(54): Works contract means :
 A contract wherein transfer of property in goods involved in the execution of
such contract is leviable to tax as sale of goods ; and
 Such contract is for the purpose of carrying and construction, erection,
commissioning, installation, completion, fitting out, repair, maintenance,
renovation, alteration of any movable or immovable property or for carrying
and any other similar activity or a part thereof in relation to such property.
 Every works contract involves an element of sale of goods and provision of
service. The transfer of property in goods immovable in execution of works
contract is deemed to be a sale of such goods.
 Thus, declared list entry has been incorporated to capture service element of
works contract within the ambit of service.
 Determination of value of service portion in execution of a works contract
Rule 2A of service tax (Determination of value) Rule 2006 : Subject to the
provisions of section 67, the value of service portion in the execution of a
works contract referred to in section 66E(h) of the act, shall be determined in
the following manner namely:
Explanation :
o Gross amount charged : Gross amount charged fro the works shall not include value
added tax (VAT) or sale tax, as the case may be paid, if any on transfer of property in
goods involved in the execution of the said contract.
o Sum liable to be included in the value of works contract service : Value of works
contract service shall include :

Labour charges for execution of the works

Amount paid to a sub contractor for labour and services;
26
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
Charges for planning, designing and architect’s fees;

Charges for obtaining on hire or otherwise, machinery and tools used for the
execution of the works contract.

Cost of consumables such as water, electricity, fuel used in execution of works
contract.

Cost of establishment of the contractor relatable to supply of labour and services.

Other similar expenses relatable to supply of labour and services and

Profit earned by the service provider relatable to supply of labour and services.
(c) Actual value of transfer of property in goods involved in the execution of the
works contract to be taken if VAT has been paid on actual value : Where value
added tax or sales tax has been paid on the actual value of transfer of property in
goods involved in the execution of the works contract, then such value adopted for
purposes of payment of value added tax or sales tax, as the case may be shall be
taken as the value of transfer of property in goods involved in the execution of the
said works contract.
2. Valuation on adhoc basis / valuation on deemed basis (Rule 2A(ii): Where the
value has not been determined above, the person liable to pay tax on the service
portion involved in the execution of the works contract shall be determined the
service tax payable in the following manner, namely :
Where works contract is for :
Value of the service portion shall be :
(A) execution of original works :
40% of the total amount charged for the
Original
works
(Explanation
1(a)
: works contract.
Original works means :
-
1) All new constructions
-
2) All types of additions and alterations
to abandoned or damaged structures on
land that are required to make them
workable
-
3) Erection, commissioning or installation
of plant, machinery or equipment or
structure, whether pre fabricated or
otherwise.
B) Maintenance, repair or reconditioning 70% of the total amount charged for the
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or restoration or servicing of any goods.
works contract.
C) In case of other works contract, not 60% of the total amount charged for the
included in serial no. (A) and (B) above works contract.
including
repairs,
contracts for
completion
maintenance,
and
finishing
services such as glazing, plastering, floor
and wall tiling and installation of
electrical
fitting
of
an
immovable
property,
Computation of total amount (Explanation 1(b))
Gross amount charged for the works contract :
Add : Fair market value of all goods and services supplied in or in
relation to the execution of the works contract, whether or not
supplied under the same contract or any other contract.
Such fair market value of goods and services so supplied may be
determined in accordance with the generally accepted accounting
principles.
Less : (i) the amount charged for such goods or services, if any, by
the supplier from the service provider; and
(ii) the value added tax or sales tax, if any, levied thereon.
Total amount charged for the above valuation purposes
No Cenvat credit on input (Explanation 2) : The provider of taxable service shall not
take CENVAT duties or cess paid on any inputs, used in or in relation to the said
works contracts, under the provision CENVAT credit rule, 2004.
However, the service provider shall be entitled to take the Cenvat credit of the input
services and capital goods used in or in the relation to the said works contract under
the provisions of CENVAT credit rules, 2004.
The manner of arriving at the total amount charged is explained with the help of the
following example pertaining to works contract for execution of original works:
Gross amount received excluding taxes (1)
9500000
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Fair market value of goods supplied by the service receiver 1000000
excluding taxes (2)
Amount charged by service receiver for goods (3)
500000
Total amount charged 1+2+3
10000000
Value of service portion (40% of (4) in case of original works)
4000000
VAT
A) VAT on works contract:
(1) VAT shall be leviable on transfer of property in goods (either as goods or in any other from)
involved in execution of a works contract as the same comes under the ambit of ‘ deemed
sales’
(2) Definition of Works contract : As per section 2(ja) of CST Act, ‘Works contract’ means a
contract for carrying out any work which includes assembling, construction, building, altering,
manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair
or commissioning of any movable or immovable property.
(3) Taxable Turnover = sale price of goods in which there is transfer of property during the
execution of works contract, (excluding the labour and other service charges incurred during
such execution).
In case, the value of such goods cannot be ascertained separately, then it shall be determined
as under(a) Addition Method: Value of goods = Cost of acquisition of goods + Profit-margin prevalent in
trade + Cost a transferring the property in the goods + All order expense in relation thereto
till the property in such goods passes to the contractee + Cost of conversion of such goods,
if the property in goods passes to the contractee in some other from.
(b) Deduction Method: Value of goods = Contract price – Labour and other services charges
not relating to the goods.
(4) The computation of tax-liability in case of works contracts.
a) Schedule Rate: Tax liability = Value of goods transferred in execution of works contract x
VAT-rate prescribed for the total tax is computed by aggregating the separate tax computed
on each item.
However, where the tax cannot be computed separately for each item, then, single tax rate
is applicable to the aggregate value of such goods transferred after deducting the labour and
other like charges.
b) Composition Rate : Tax liability = Entire Value of Works contract x Composition Rate.
Illustration 1: Determine the taxable turnover, input tax credit and net VAT payable by a works
contractor from the details given below on the assumption that the contractor maintains sufficient
records to quantify the labour charges. Assume output VAT at 12.5%
Rs. In lakhs
(i)
Total contract price (excluding VAT)
100
(ii)
Labour contract paid for execution of the contract
35
(iii)
Cost of consumables used, not involving transfer of property in goods
5
(iv)
Material purchased and used for the contract taxable at 12.5% VAT (VAT included)
45
The contractor also purchased a plant for use in the contract for Rs. 10.4 lakhs.
In the VAT invoice relating to the same, VAT was charged at 4% separately and the said
amount of Rs. 10.4 lakhs is inclusive of VAT. Assume 100% input credit on capital goods.
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Solution: Under the works contract ,the turnover for imposition of VAT is the sale price of the goods
in which there is a transfer of property. The amount representing the labour & other charges
incurred for such execution is deductible.
Total Contract Price (excluding VAT)
1,00,00,000
Less: labour charges paid for execution of the contract
-35,00,000
Cost of consumables used not involving transfer of property in goods
-5,00,000
Taxable Value of the ‘Works Contract”
60,00,000
VAT payable thereon @12.5%
7,50,000
Less: Input VAT credit on materials (Rs. 45 lakhs x 12.5% - 11.25%)
5,00,000
VAT credit on capital goods (Rs. 10.4 lakhs x 4% - 104%)
40,000
Net tax payable
2,10,000
Direct Tax [Part-A]
Transfer Pricing
1. Notification NO. 45/2014, dated 23-09-2014
In exercise of the powers conferred by the second proviso to Section 92C(2) of the Incometax Act, 1961, the Central Government hereby notifies that where the variation between the
arm’s length price determined under section 92C and the price at which the international
transaction or specified domestic transaction has actually been undertaking does not exceed
1% of the latter in respect of wholesale of trading and 3% of the latter in all other cases, the
price at which the international transaction or specified domestic transaction has actually
been undertaking shall be deemed to be the arm’s length price for assessment year 201415.
Explanation: For the purpose of this notification, ”wholesale trading” means an international
transaction or specified domestic transaction of trading in goods, which fulfits the following
conditions, namely:1. Purchases cost of finished goods is 80% or more of the total cost pertaining to
such trading activities: and
2. Average monthly closing inventory of such goods is 10% or less of sales
pertaining to such trading activites.
2. Deemed associated transaction [Amended by FA, 2014]
A Transaction entered into by an enterprise with a person other than an associated enterprise shall be
deemed to be an international transaction entered into between two associated enterprises, if in
relation to that transactiona) There exists a prior agreement in relation to the relevant transaction between such other
person and the associated enterprise; or
b) The terms of the relevant transaction are determined in substance between such other person
and the associated enterprise where the enterprise or the associated enterprise or both of them
are non residents irrespective of whether such other person is a non resident or not.
Investment allowance under section 32AC of the Income tax Act
1961: [Amended by FA, 2014]
1) Eligibility:
 This provision shall apply in case of Company Assessee engaged in the business of
manufacturing or production of articles and
 installs new assets and
 the amount of actual cost of such new assets acquired and installed during any PY
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 exceeds Rs.25 Cr.
 However, No deduction shall be allowed for any AY commencing on or after 01-042018.
2) Amount of Deduction:
15% of Actual cost of such new assets acquired and installed during the PY.
Prior to amendment




Deduction shall be allowed in relation to the purchase of New P&M purchased and
installed during 13-14 to 14-15.
P&M to be installed only in the factory premises.
The total investment in the P&M should be more than 100 crore.
Amount of Deduction shall be allowed @ 15 % of the investment in the PY 13-14 and
PY 14-15 @ 15 % (less earlier deduction allowed in 13-14).
3) The P&M should not be transferred with 5 years from its purchases , otherwise the
deduction allowed earlier in respect of such new asset shall be taxable as business income.
Note1: The investment allowance @15% under this Section in addition to the depreciation
and additional depreciation under Section 32(1). Further, the investment allowance would
not be reduced to arrive at the WDV of plant and Machinery.
Note 2: Meaning of New Asset under section 32AC of Income tax Act,, 1961: “New asset” means
any new plant or machinery (other than ship or aircraft) but does not include(1) any plant or machinery which before its installation by the assessee was used either within or
outside India by any other person.
(2) any plant or machinery installed in any office premise or any residential accommodation,
including accommodation in the nature of a guest house;
(3) any office appliances including computers or computer software;
(4) any vehicle; or
(5) any plant or machinery, the whole of the actual cost of which is allowed as deduction (whether
by way of depreciation or otherwise) in computing the income chargeable under the head “Profit
and gains of business or profession” of any previous year.
Q1. Compute the admissible investment allowance under Section 32AC for AY14-15 to
AY17-18
Investment allowance in New plant Machinery (Rs. In crores)
Company
PY13-14
PY14-15
PY15-16
PY16-17
A Ltd.
70
20
Nil
Nil
B ltd.
90
20
Nil
Nil
C ltd.
30
30
Nil
Nil
D Ltd.
0
30
40
30
E Ltd.
125
0
30
20
F ltd.
0
120
25
40
Sol.
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2) Special provision for full value of consideration for transfer of assets other than capital assets in
certain cases [section 43CA] [Inserted by Finance Act, 2013 w.e.f. 01-04-2014]: The said provision
are as undera) Stamp duty value deemed to be Full Value of consideration: Where the consideration
received or accruing as a result of the transfer by an assessee of an asset (other than a
capital asset,) being land or building or both, is less than the value adopted or assessed or
assessable by any authority of a State Government for the purpose of payment of stamp
duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the
purpose of computing profits and gains from transfer of such asset, be deemed to bt the full
value of the consideration received or accruing as a result of such transfer.
b) Stamp duty value on the date of agreement to be considered: Where the date of agreement
fixing the value of consideration for transfer of the asset and the date of registration of such
transfer of asset are not the same, the full value of consideration may be the stamp duty
value on the date of the agreement for such transfer and not on the date registration of
such transfer. However this provision shall apply only in a case where the amount of
consideration or a part thereof has been received by any mode other than cash on or before
the date of agreement for transfer of the asset.
3) Capital gains in case of stump sale [section 50B] : Full Value of Consideration: Net worth of the
undertaking; If undertaking held for upto 36 months, capital gains will be short-term, otherwise
long-term . No indexation benefit shall be available even in case of long-term capital asset. Net
worth to be computed as under:
Aggregate value of total assets of the undertaking or division (ignoring any
change in the value of assets on account of revaluation of assets) i.e.In case of depreciable assets, the WDV of the block as per section 43(6)
In case of capital assets on respect of which the whole of the
expenditure
Has been allowed or is allowable as a deduction under section 35AD
xxx
In case of other assets, the book value
Less: Value of liabilities of such undertaking or division as appearing in its
xxx
books
Net worth of the undertaking or division
Xxx
4) Deduction in respect of investment made under as equity savings scheme [section 80CCG] [Bold
portion amended by Finance Act, 2013 w.e.f. 01-04-2014]:
(1) Eligible Assessees: Resident individual .
(2) Nature of investment : The assessee has to make investment in listed equity shares or
listed units of an equity oriented fund in a previous year in accordance with a scheme
notified by the Central Government.
(3) Amount of Deduction: The deduction would be lower of the following(i)
50% of amount invested in such equity shares or listed units if an equity
oriented fund; or
(ii)
Rs. 25,000
(4) Period of deduction: The deduction shall be allowed for 3 consecutive assessment year,
beginning with the assessment year relevant to the pervious year in which the listed
equity shares or listed units of equity oriented fund were first acquired.
(5) Conditions for deduction: The following conditions have to be satisfied for claiming the
above deduction(i)
The gross total income of the assessee for the relevant assessment year should
be less than or equal to Rs. 12 lakhs.
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(ii)
(iii)
(iv)
The assessee should be a new retail investor as per the requirement specified
under the notified scheme.
The investment should be made in such listed equity shares or listed units of
equity oriented fund as may be specified under the notified scheme.
The minimum lock-in period in respect of such investment is 3 years from the
date of acquisition in accordance with the notified scheme, In addition to the
above, other conditions may also be prescribed, subject to fulfillment of which,
deduction under section 80CCG can be claimed.
Illustration 1 – Mr. Rajeev, a new retail investor, have made the following investments in equity
shares/units of equity oriented fund of Rajiv Gandhi Equity Savings Scheme for the P.Y. 2013-14,
P.Y. 2014-15 & P.Y. 2015-16 as below:
Particular
P.Y. 2013P.Y. 2014P.Y. 2015Mr. Rajeev
14
15
16
Rs.
Rs.
Rs.
(i)
Investment in Listed equity
10,000
22,000
48,000
(ii)
shares
50,000
12,000
10,000
Investment in units of equity(iii)
oriented fund
10,18,000
12,00,000
14,52,000
Gross Total Income
You are required to compute deduction admissible under section 80CCG.
Solution: Computation of admissible deduction under section 80CCG (amount in Rs.)Particulars
P.Y. 2013-14
P.Y. 2014-15
P.Y. 2015-16
50% of the invested
30,000
17,000
29,000
Maximum limit
25,000
25,000
25,000
Deduction u/s 80CCG
25,000
17,000
Nil
Remarks:
Deduction
Deduction
(No deduction
Restriced to
admissible=
admissible
Maximum
50% of
Since GTI
limit
amount
exceeds Rs.
invested.
12,00,000)
5) 80EE. Deduction in respect of interest on loan taken for
residential house property [Inserted by FA, 2013]
(1)Eligible assessee: An individual,
(2) Nature of payment: Interest payable on loan taken by him from any financial institution
for the purpose of acquisition of a residential house property.
(3) Amount of deduction: Interest payable on loan or Rs.1,00,000 for AY2014-2015.
However, in a case where the interest payable for the assessment year 2014-15 is less than
Rs.1,00,000, the balance amount shall be allowed in the assessment year 2015-2016.
(4) Conditions:
(i) the loan has been sanctioned by the financial institution during the period beginning on
the 1st day of April, 2013 and ending on the 31st day of March, 2014 ;
(ii) the amount of loan sanctioned for acquisition of the residential house property does not
exceed Rs.25,00,000 ;
(iii) the value of the residential house property does not exceed Rs.40,00,000;
(iv) the assessee does not own any residential house property on the date of sanction of the
loan.
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(4) Where a deduction under this section is allowed for any interest, deduction shall not be
allowed in respect of such interest under any other provisions of the Act for the same or any
other assessment year.
6) Section 115-OCorporate dividend tax (CDT)or Dividend distribution tax (DDT) : In case a
domestic company has –
- declared, distributed or paid any dividend (whether interim or final or otherwise
but excluding dividend referred u/s 2(22)(e) to its shareholders),
- then, it shall be liable to pay dividend distribution tax @ 15% (PLUS 10%
Surcharge and 3% EC and SHEC) i.e. 16.995% on the gross amount of Dividend.
[Amended by FA, 2014]
Gross Dividend:
Net Dividend*100
[100-(Rate of Div.)] i.e.83.005
Q1. Compute the liability towards dividend distribution tax under section 115-O in
following cases –
1. A domestic company engaged in the business of growing and manufacturing tea in
India, has declared a final dividend of Rs. 10 lakh for the financial year 2014-15.
2. A foreign company which has made prescribed arrangements for declaration and
payment of dividends within India, pays preference share dividend of Rs. 100 lakh for
financial year 2014-15.
(June 2009)
Sol.
7) Adjusted total Income [In Case of Alternate Minimum Tax]
Total income computed as per other provisions of this Act
Add: Deductions if any claimed u/s 80IA to 80RRB (other than Sec.80P
)
Add: Deductions if any claimed u/s 10AA
Add: Deductions claimed, if any under Section 35AD as reduced
by the amount of depreciation allowable in accordance with the
provisions of Section 32 as if no deduction under Section 35AD
was allowed in respect of the assets on which the deduction
under that section is claimed.
Adjusted total income
X
X
X
X
XX
8) The general rates of income-tax for individual for Assessment year 2015-16
are as under:
1. In case of every
individual [other than
those covered by (2) to
(3)], HUF,AOP,BOI, and
every artificial juridical
2. In case of resident
individual of age 60
years or more but less
than 80 years at any
time during the
3. In case of resident
individual of age 80
years or more at any
time during the
previous year
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person
previous year
Income
Upto Rs.2,50,000*
Next Rs.2,50,000
Next Rs.5,00,000
Balance
Rate
Nil
10%
20%
30%
Income
Upto Rs.3,00,000*
Next Rs.2,00,000
Next Rs.5,00,000
Balance
Rate
Nil
10%
20%
30%
Income
Upto Rs.5,00,000*
Next Rs. 5,00,000
Balance
Rate
Nil
20%
30%
Part-A
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Tax rate
Rebate in case of individual
CII for PY2014-2015 is 1024
Tax planning, tax management, tax evasion
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Tax benefits of merger/demerger
deemed dividend u/s 2(22)(e)
Section 115O (1A), Section 115QA [Most imp.]
Tax treatment of expenditure on issue of bonus shares
Section 32AC [Most imp.]
Computation of Book profits (inclusion/exclusion)
AMT provisions
Meaning of Specified domestic transaction
Associated Enterprise and Deemed Associated Enterprise
Practical question if there is more than 1 ALP
APA u/s 92CC and 92CD
Powers of TPO and DRP
Section 94A [NJA]
Section 245N(a)/(b) [Advance Ruling]
Section 115A, 115AD, 115BBD
Deemed international transaction/deemed associated transaction
Part-B Indirect Taxes
Chapter-1 basic concepts
2) All case laws
Chapter-2 not imp.
Chapter-3 complete [Rule 6, 8,9,10]
Chapter-4 complete and case studies
1. Definition of input/capital goods/input services
2. Time of taking CCr
3. Rule 3 (5A)
35
Chinmay Tutorials [9929277130]0141-2741111]
CS Factory..
Tax case Laws and amdt
Compiled By CA, LCS Chinmay Jain [9983554085]
4. Rule 10A Transfer of C Cr of ACD u/s 3 (5)
5. Difference between Special Audit /s 14A and 14AA
6. Refund of CCr in case of service tax paid on Partial reverse charge basis
Chapter-5 General Procedures
1. Interest on provisional assessment
2. Rule 16, 22, 25, 26, 27
Chapter-6 SSI
1. Meaning of SSI, Inclusion and exclusion and 2 or 3 practical questions
and latest case studies
Chapter-7
1. Complete and specially case studies are most imp.
Chapter-8 ACD u/s 3(1) and ACD u/s3(5)
Chapter-9
1. Format and some practical questions
Chapter-10
1. Case studies
Chapter-11
1. Section 74, 75 and case studies
Chapter-12
Amendment
Chapter-13
Section 110, 123, 125 and amendments/case laws
Chapter-14
1. Section 11A, 11AC, 28, 114A and case studies
Chapter-15,
1. Section 11B, 26, 26A, 27 and Case studies
Chapter-16
1. Definition of Activity and who can make application to ARA and in
settlement commission- cases on which settlement commission not
applicable, basic conditions to be fulfilled for making application to
settlement commission
Chapter-17
Chart
Service Tax:
1) Definition of service, consideration
2) SSP
3) POT 4) POP 5) Interest on Service tax u/s 75 6) Penalty under ST U/S 76, 77
7) Reverse charge 8) Work Contract Service
9) Exemption to service provided to SEZ units or developer of SEZ
10) Negative list under Service tax
11) 7-8 exemptions
12) Demand of service tax u/s73 of Finance Act, 1994
13) Payment of Service tax
14) Return filing under Service tax
VAT
Complete
36
Chinmay Tutorials [9929277130]0141-2741111]
CS Factory..
Tax case Laws and amdt
Compiled By CA, LCS Chinmay Jain [9983554085]
ALL The Best For EXAMS
ByChinmay Jain
FCA, LCS
9983554085
37