Foreign Trade Policy (FTP)
Notification No. 107(RE-2010)/2009-2014 dated March 21, 2012
FTP amended to provide that supply to non mega power projects shall not be entitled to any deemed export benefit. Previously, benefit of deemed exports was available in respect of supplies to non mega power projects under Para 8.3(a) of FTP, viz., Advance Authorization/ Advance Authorization for annual requirement/ DFIA.
CENTRAL EXCISE, SERVICE TAX, VAT & GST
Central Excise
CCE, Surat Vs. M/s Favourite Industries [2012 TIOL 30 SC CX]
An exemption notification has to be interpreted in the light of the words employed by it and not on any other basis. A person who claims exemption or concession must establish clearly that he is covered by the provision(s) concerned and, in case of doubt or ambiguity, benefit of the same must go to the State.
Cenvat
The CBEC Circular No.962/05/2012-CE dated March 28, 2012
Where duty demand has been confirmed under Section 11A of the Central Excise Act, 1944, an assessee may pay such duty from Cenvat credit available at the time of payment of duty, whether Cenvat credit accrued prior to or after the arrears arose.
Paramount Minerals & Chemicals Ltd Vs. CCE, Thane [2012 TIOL 322 CESTAT MUM]
There is no time limit under Rule 16 of Central Excise Rules, 2002 for taking Cenvat credit on goods returned to the factory as defective.
Service Tax
The CBEC Circular No.154/5/ 2012 – ST dated March 28, 2012
The point of taxation for invoices issued on or before March 31, 2012, shall continue to be the date of payment in case of individuals or proprietary firms or partnership firms providing taxable services of consulting engineer, architect, interior decorator, chartered accountant, cost accountant, company secretary, scientist or technocrat, and legal service.
CST, Mumbai Vs. P N Writer & Co Ltd [2012 TIOL 343 CESTAT MUM]
Activity of storage and retrieval of records of banks and corporate houses viz. discharged cheques, vouchers, agreements, books of accounts etc. which were not intended for sale and do not have any commercial value is not leviable to Service Tax under the category of "Storage and Warehousing of goods", since "goods" must be capable of being bought and sold.
VAT
Hotel Ashoka Vs. Assistant Commissioner of Commercial Taxes [2012-TIOL-08-SC-VAT]
Duty free shops situated at the International Airport of Bangalore are beyond the custom frontiers of India. Thus, in terms of Article 286 of the Constitution no sales tax could be imposed on the sales made by the duty free shops.
IFB Industries Ltd. Vs. State of Kerala [2012-TIOL-SC-CT]
While interpreting Rule 9(a) of the Kerala General Sales Tax Rules, 1963 the Supreme Court held that the Rule does not speak of invoices but stipulates that discount must be shown in the accounts. Thus, IFB Industries' claim for exemption of amounts of trade discount cannot be rejected solely on the ground that discounts were not shown in sale invoices.
GST
GST will help contain inflation [The Hindu, March 30, 2012]
Subir Gokarn, Deputy Governor, Reserve Bank of India, addressing the Confederation of Indian Industry's (CII) Western Region annual regional meeting said that introduction of GST would help contain price rise, create space for interest rates to come down and contribute to growth momentum.
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