Payment for clearing and warehousing services outside India isn’t FTS; out of clutches of withholdin

IT/ILT : Payments to non-residents for clearing and warehousing services, rendered outside India is not fees for technical services

No sec. 41(1) addition if no evidences were produced to prove remission or cessation of liability

IT : Where Tribunal on basis of material on record, found that certain liability shown in assessee's books of account was genuine which was duly paid subsequently by account payee cheques, impugned addition made by revenue authorities under section 41(1) in respect of said liability was not sustainable

Cleaning of hospital building isn’t liable to service tax under ‘cleaning services’

ST : Where an assessee is filing returns regularly and its unit is audited periodically, Department is aware about fact of services rendered by them, there can't be any charge of suppression so as to invoke extended period

No sec. 254 rectification after lapse of 4 years if no reasonable explanations were given by petitio

IT : Where petitioner was very well aware that order of Tribunal had been construed to restore not all grounds of appeal but only one ground, petition filed for setting aside that order on basis that all grounds had not been dealt with particularly after lapse of prescribed time was to be dismissed

Issues of jurisdiction for re-assessment can be raised in an appeal for first time

IT : Question relating to jurisdiction assumed under section 147/148 goes to very root of matter and it can be raised in appeal for first time

Registration of a trust can’t be quashed due to amended sec. 2(15) as long as its activities are gen

IT : Even though objects of institution were no longer toward a 'charitable purpose' in view of amended law, registration under section 12A could not be reviewed and withdrawn in absence of stipulation in section 12AA(3) regarding continuing satisfaction

Managing affairs of organization isn’t covered under ‘Management Consultancy Service’

ST : If a person himself is managing affairs of organization, prima facie, it does not fall under 'Management Consultancy Service'

Central Excise Notification No 21/2013 dated 13-06-2013

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 21/2013 - Central Excise

New Delhi, dated the 13^th June, 2013

G.S.R. 372 (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government, on being satisfied that it is necessary in the public interest so to do , hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 30/2012- Central Excise dated the 9^th July, 2012 , published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 542(E), dated the 9^th July, 2012, namely :-

In the said notification, in paragraph 2, in condition (a),-

1. for the word and figure “Volume I”, the words and figures “Volume I in terms of entitlement under paragraph 3.14.2 or against the exports to the countries or regions specified in paragraph 3.14.4 (e) or paragraph 3.14.5(e) of the Foreign Trade Policy, as the case may be” shall be substituted;


2. in the first proviso, for the words “the Focus Market Scheme”, the words and figures “paragraph 3.14.2 of the Foreign Trade Policy” shall be substituted;


3. after the first proviso, the following proviso shall be inserted, namely:-

“Provided further that for the purpose of calculation of export performance or for computation of entitlement under paragraph 3.14.4 or paragraph 3.14.5 of the Foreign Trade Policy, the incremental growth shall be in respect of each exporter [Importer Exporter Code (IEC) holder] without any scope of combining the export for group company or for transferring export performance from any other IEC holder and the incremental growth shall be in terms of freely convertible currency to the designated markets. The following categories of exports shall not be counted for calculation of export performance or for computation of entitlements:

1. Export of imported goods or exports made through trans-shipment;


2. Export from SEZ/ EOU /EHTP /STPI /BTP/FTWZ;


3. Deemed Exports;


4. Service Exports;


5. Third Party exports;


6. Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones;


7. Ores and concentrates of all types and in all formations;


8. Cereals of all types;


9. Sugar of all types and all forms;


10. Crude / petroleum oil and crude / primary and base products of all types and all formulations;


11. Export of milk and milk products;


12. Export performance made by one exporter on behalf of other exporter;


13. Supplies made to SEZ units;


14. Items, export of which requires an export authorisation (except SCOMET);


15. Export of Meat and Meat Products;


16. Exports to Singapore, UAE and Hong Kong,


17. SEZ/EOU/EHTP/BTP/FTWZ products exported through DTA units;’’.

(Sanjay Kumar)

Under Secretary to the Government of India

[F.No.605/10/2013-DBK]

Note- The principal notification number 30/2012 - Central Excise, dated the 9^th July, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 542 (E), dated the 9^th July, 2012 and was last amended by notification No. 17/2013 - Central Excise dated the 16^th May,2013 vide number G.S.R. 315 (E) dated the 16^th May,2013.

Service Tax Notification No 11/2013 (ST) dated 13-06-2013

Government of India

Ministry of Finance

(Department of Revenue)

Notification No. 11/2013 - Service Tax

New Delhi, the 13^th June, 2013

G.S.R. 373(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 6/2013 - Service Tax, dated the 18^th April, 2013 , published in the Gazette of India, Extraordinary, Part II, section 3, subsection(i), vide number G.S.R. 254(E), dated the 18^th April, 2013, namely:-

In the said notification, in para 3, in condition (a),-

1. for the word and figure “Volume I”, the words and figures “Volume I in terms of entitlement under paragraph 3.14.2 or against exports to the countries or regions specified in paragraph 3.14.4(e) or paragraph 3.14.5(e) of the Foreign Trade Policy, as the case may be” shall be substituted;


2. in the first proviso, for the words “the Focus Market Scheme”, the words and figures “paragraph 3.14.2 of the Foreign Trade Policy” shall be substituted;


3. after the first proviso, the following proviso shall be inserted, namely:-

“Provided further that for the purpose of calculation of export performance or for computation of entitlement under paragraph 3.14.4 or paragraph 3.14.5 of the Foreign Trade Policy, the incremental growth shall be in respect of each exporter [Importer Exporter Code (IEC) holder] without any scope of combining the export for group company or for transferring export performance from any other IEC holder and the incremental growth shall be in terms of freely convertible currency to the designated markets. The following categories of exports shall not be counted for calculation of export performance or for computation of entitlement:

1. Export of imported goods or exports made through trans-shipment;


2. Export from SEZ or EOU or EHTP or STPI or BTP or FTWZ;


3. Deemed Exports;


4. Service Exports;


5. Third Party exports;


6. Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones;


7. Ores and concentrates of all types and in all formations;


8. Cereals of all types;


9. Sugar of all types and all forms;


10. Crude or petroleum oil and crude or primary and base products of all types and all formulations;


11. Export of milk and milk products;


12. Export performance made by one exporter on behalf of other exporter;


13. Supplies made to SEZ units;


14. Items, export of which requires an export authorisation (except SCOMET);


15. Export of Meat and Meat Products;


16. Exports to Singapore, UAE and Hong Kong,


17. SEZ or EOU or EHTP or BTP or FTWZ products exported through DTA units;’’.

(Sanjay Kumar)

Under Secretary to the Government of India

[F. No. 605/10/2013-DBK]

Note- The principal notification No. 6/2013-Service Tax, dated 18^th April, 2013 , was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 254(E), dated 18^th April, 2013.

Customs Notification No.32/ 2013 dated 13-06-2013

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 32/2013 - Customs

New Delhi, the 13^th June, 2013

G.S.R. 371 (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 93/2009 - Customs, dated the 11^th September, 2009 published in the Gazette of India, Extraordinary , Part II, Section 3, subsection (i), vide number G.S.R. 659 (E), dated the 11^th September, 2009, namely :-

In the said notification,-

1. in the opening paragraph, in condition (i), for the word s and figure “Volume I of the Foreign Trade Policy”, the words and figures “ Volume I in terms of entitlement under paragraph 3.14.2 or against exports to the countries or regions specified in paragraphs 3.14.4(e) or 3.14.5(e) of the Foreign Trade Policy, as the case may be” shall be substituted;
   


2. in paragraph 2, for the words “under the scheme”, the words and figures “under paragraph 3.14.2 of the Foreign Trade Policy” shall be substituted;
   


3. after paragraph 2 and before the Explanation, the following paragraph shall be inserted, namely:-

“3. For the purpose of calculation of export performance or for computation of entitlement under paragraph 3.14.4 or paragraph 3.14.5 of the Foreign Trade Policy, the incremental growth shall be in respect of each exporter [Importer Exporter Code (IEC) holder] without any scope of combining the export for group company or for transferring export performance from any other IEC holder and the incremental growth shall be in terms of freely convertible currency to the designated markets. The following categories of exports shall not be counted for calculation of export performance or for computation of entitlements:

1. Export of imported goods or exports made through trans-shipment;


2. Export from SEZ/ EOU /EHTP /STPI /BTP/FTWZ;


3. Deemed Exports;


4. Service Exports;


5. Third Party exports;


6. Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones;


7. Ores and concentrates of all types and in all formations.


8. Cereals of all types;


9. Sugar of all types and all forms;


10. Crude / petroleum oil and crude / primary and base products of all types and all formulations;


11. Export of milk and milk products;


12. Export performance made by one exporter on behalf of other exporter;


13. Supplies made to SEZ units;


14. Items, export of which requires an export authorisation (except SCOMET);


15. Export of Meat and Meat Products;


16. Exports to Singapore, UAE and Hong Kong,


17. SEZ/EOU/EHTP/BTP/FTWZ products exported through DTA units.’’.

(Sanjay Kumar)

Under Secretary to the Government of India

[F.No.605/10/2013-DBK]

Note: The principal notification number 93/2009 - Customs, dated the 11^th September, 2009 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 659 (E), dated the 11^th September, 2009 and was last amended by notification No. 29/2013 - Customs, dated the 16^th May, 2013 vide number G.S.R.316 (E), dated the 16^th May, 2013.

Matter remanded to consider the nature of exp. incurred on a computer software in light of licensed

IT : In absence of agreement licensing software to assessee, issue whether licensing fee was revenue expenditure or capital expenditure could not be decided

Excess sale proceeds owing to forex fluctuation are eligible for sec. 10A relief; no relief for deem

IT : Assessee is not entitled to exemption under section 10A in respect of deemed export to another Special Economic Zone

Cenvat credit not allowable on goods not forming part of value of services

ST : Where value of free supplied materials were not included in gross amount, assessee was not eligible for abatement of 67% ; hence, levy of service tax on value addition made was justified