Content at Glanceavinashpoddar.com/W/JA/813y9Communique_Final.pdf3. Present GST bill flawed: Chidambaram 4. As uncertainty over GST prevails, markets to remain volatile this week:

AP Institute For Training and Learning Pvt Ltd 1

Content at Glance :-

1.0 News & Updates1. 'Will compensate industry in another way for GST delay'2. Industry to be safeguarded from GST delay: Piyush Goyal3. Present GST bill flawed: Chidambaram4. As uncertainty over GST prevails, markets to remain volatile this week:

Analysts5. After Parliament truce, government hopeful of passing pending bills

barring GST6. BJD to support GST Bill; Naveen hopes for Posco project7. Markets likely to remain volatile this week as uncertainty prevails over

GST Bill: Analysts8. Crude prices, GST to sway markets9. Manufacturing companies fear loss of input tax credit, GST on transfer to

self10. Arun Jaitley holds talks with Congress leaders on GST Bill11. Odisha to back GST Bill despite friction with Centre12. Support GST Bill but onus for its passage on govt: JD(U) Seating Chair -

Independent NEWS Agency13. A delayed GST is better than a flawed one, says Arun Jaitley14. GST being delayed for 'collateral reasons': FM Arun Jaitley15. Infosys at work on GST tech framework despite delay in passing of Bill16. SC gets plea urging enforcement of GST17. GST: Delay might translate to growth opportunity missed18. Remove additional tax in GST, need flexibility issues: Rangarajan19. Imposition of cost by CESTAT on grounds of quality of adjudication order20. Winter session of Parliament ends; GST remains pending21. Over 48,000 including top industrialists sign petition for GST22. Difficult to predict timeline for GST bill passage: Govt23. Govt delays bankruptcy law, fails to break deadlock on GST24. Hard to predict timeline for GST roll out, says Jayant Sinha25. BJP’s GST Bill destroys single market26. RBI: GST must to enable India to move towards potential growth27. Don't Give Administration of GST to Central Revenue Officials, Say Tax

Advocates28. AIFPA raises pitch against recommendation of higher taxes on food items

in GST


29. Authorizing officers of the Zone to appear before CESTAT BenchCorrigendum dt. 18-12-2015

30. Reduction of Government litigation - providing monetary limits for filingappeals by the department before CESTAT/High Courts and SupremeCourt

31. Withdrawal of cases pending before HC/CESTAT on the basis of earlierSupreme Court's decision on identical matters

32. The proposed Goods & Services Tax rates are retrograde for food products33. Centre, States broadly agree on the GST exemption list, says CEA

Subramanian34. Government hopeful of GST bill will be passed in Parliament: Jayant Sinha35. Cigarette firms will have to ‘rework’ supply chain under goods and

services tax regime


2.0 Case Laws2.1 Case Laws related to ExciseSr.No. Relevant Section Case Name Issue

1 Section 127B read withSection 28AA & 28AB

"[2015] 63 taxmann.com 212 (Bombay)Bharmpal Panchalv.Union of India"

Settlement of Cases

2 Section 32E "[2015] 63 taxmann.com 290 (AndhraPradesh) Anil Re-rolling Millsv.Commissioner of Central Excise,Hyderabad"

Settlement of Cases

3 Section 5A "[2015] 63 taxmann.com 271 (SC)Commissioner of Central Excise, Delhiv.GTC Industries Ltd."

General Exemption

2.2 Case Laws related to Service TaxSr.No. Relevant Statute Case Name Issue

1 Section 107 [2015] 63 taxmann.com 266 (Gujarat)ASK Me Enterprisev.Union of India

Service Tax VoluntaryCompliance Scheme

2 Section 84, read withSection 73

[2015] 63 taxmann.com 270 (Mumbai -CESTAT) Commissioner of ServiceTax, Mumbaiv.Reliance Communications Ltd.

Revision of Order byCommissioner

3 Section 65(25b) [2015] 63 taxmann.com 210 (Mumbai -CESTAT) Shapoorji Pallonji & Co.Ltd.v.Commissioner of Central Excise, Pune I

4 Section 67 [2015] 63 taxmann.com 236 (Mumbai -CESTAT) Automotive Manufacturers(P.) Ltd.v.Commissioner of Central Excise &Customs, Nagpur

Valuation of TaxableServices

5 Section 73 and 75 [2015] 63 taxmann.com 294 (SC)Commissioner of Central Excise,Bangalorev.Toyota Kirloskar Motors

Interest

6 Rule 3 read with Rule2(I)

[2015] 63 taxmann.com 235 (Mumbai -CESTAT) Accenture Services (P.) Ltd.v.Commissioner of Service Tax, MumbaiII

Input Services

7 Section 65(109a) readwith Section 67

[2015] 63 taxmann.com 295 (Mumbai -CESTAT) Vodafone Essar Ltd.v.Commissioner of Service Tax, Mumbai

Taxable Services


8 Section 106 [2015] 63 taxmann.com 206 (Bangalore -CESTAT) B.R. Ajit (Managing Director)v.Commissioner of Customs, CentralExcise & Service Tax Commissionerate,Cochin

Service Tax VoluntaryCompliance Scheme

9 Rule 7 read with rule 3 [2015] 63 taxmann.com 231 (New Delhi- CESTAT) Rohan Motors Ltd.v.Commissioner of Service Tax, Noida

Cenvat Credit

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1.0 News& Updates

1. 'Will compensate industry in another wayfor GST delay'

JAIPUR: On the passage of the Goods and ServicesTax (GST) bill currently stalled in the Rajya Sabha,the government said on Sunday it will "find anotherway" to bring benefits of the law to industry.

"Even if GST is not passed in Parliament, we willfind another way to bring the benefits of law so thatindustry and business do not suffer," powerminister Piyush Goyal said speaking at the RotaryInstitute here.

The GST Bill, that seeks to usher in a pan-Indiacommon market by reforming the country's indirecttax regime, was passed in the Lok Sabha in May. Butit has been stuck in the Rajya Sabha, where theruling National Democratic Alliance does not enjoya majority.

"Bihar election results do not set us back. Every statehas its own election dynamics. We will continue ourfocus on development," Goyal said.

At an all-party meeting held in New Delhi by RajyaSabha chairman Hamid Ansari on Friday, theopposition, after weeks of confrontation on variousissues, agreed to the passage of certain bills in theRajya Sabha during the last week of the session, butconsensus was elusive on the GST bill.

"India's consumption of coal is 0.5 tonnes per capitain 2015, what the US had 150 years back," theminister said.

In a tweet earlier, Goyal said: "India's renewableprogramme is the largest in the world. 175 GW by2022. Five times growth in seven years. Entire worldis appreciating.""Ujwal Discom Assurance Yojna #UDAY scheme toturn around DISCOMs, also saves capital for PSBs,"he added.

(Ref http://timesofindia.indiatimes.com/business/india-business/Will-compensate-industry-in-another-way-for-GST-delay/articleshow/50257004.cms)

2. Industry to be safeguarded from GST delay:Piyush Goyal

NEW DELHI: To ensure that businesses do notsuffer due to delay in the GST bill passage, thegovernment will "find another way" to bring the

benefits of the law to the industry, Power MinisterPiyush Goyal said today.

"Even if GST is not passed in Parliament, we willfind another way to bring the benefits of law so thatindustry and business does not suffer," Goyal said ina tweet.

However, he did not elaborate on the alternateways.

Finance Ministry had earlier expressed hope that theGoods and Services Tax regime, the constitutionamendment bill for which has been stalled in theRajya Sabha, will be rolled out in 2016.

Congress leader Anand Sharma had yesterday saidthat the April 1 deadline for rolling out GST will notbe met "even if the trinity of Gods - Brahma, Vishnuand Mahesh - descend on earth", as the governmenthas not yet completed the preparatory work for thenew indirect tax regime.

Talking about the construction of toilets underSwachh Vidyalaya Abhiyan, Goyal tweeted, "PSUsunder my Ministries alone have constructed 1,28,000toilets under Swachh Vidyalaya Abhiyan. Separatetoilets for boys & girls."

"Every government school in the country now has aseparate toilet for boys & girls," he said in anothertweet.

Goyal, who also holds the new and renewableenergy portfolio, highlighted the country's 175 GWgreen energy target by 2022.

"India's renewable program is the largest in theworld. 175GW by 2022. 5x growth in 7 years. Entireworld is appreciating.

"India's consumption of coal is 0.5 tonnes per capitain 2015, what the US had 150 years back," he said.

Regarding the government's package for statediscoms, he said, "Ujwal Discom Assurance Yojna#UDAY scheme to turn around DISCOMs, alsosaves capital for PSBs."

(Refhttp://economictimes.indiatimes.com/news/economy/policy/industry-to-be-safeguarded-from-gst-delay-piyush-goyal/articleshow/50254801.cms)


3. Present GST bill flawed: Chidambaram

Former finance minister P. Chidambaram onSunday said the present GST bill is “flawed” and thegovernment could get the legislation passed byaddressing the concerns of the Congress party.

He said the cap on GST rate can be provided in theConstitution Amendment Bill through “skilfuldrafting” and for that the government should talk tothe opposition.

“Agree with FM. A delayed GST is better than aflawed one. Present GST Bill is flawed,” Mr.Chidambaram tweeted.

Speaking at the annual general meeting of FICCI lastweek, Finance Minister Arun Jaitley had said “adelayed GST is better than a flawed GST.”

Read: Opposition agrees to clear six Bills as GST isout of way

Mr. Chidambaram suggested to “scrap” the one percent addition tax on inter-state movement of goods.

“One percent tax is anyway dead. Scrap theprovision. Meet Congress’ three weighty objectionsand the bill could be passed,” he tweeted.

The Congress has been opposing the presentConstitution Amendment Bill on Goods andServices Tax (GST) on three grounds.

They want the GST rate to be prescribed in the bill,to which the government says tax rates cannot be‘cast in stone.’

Mr. Chidambaram said: “Rate cap can be providedin the Bill through skilful drafting. Talk toopposition”.

The Congress has also been demanding for SupremeCourt adjudicating disputes between states.

“No state is opposed to independent disputeresolution mechanism. Set it up,” Mr. Chidambaramtweeted.

Keywords: GST bill, P. Chidambaram

(Refhttp://www.thehindu.com/business/Economy/present-gst-bill-flawed-chidambaram/article8010707.ece)

4. As uncertainty over GST prevails, markets toremain volatile this week: Analysts

MUMBAI: Investors' initial merriment over the USFederal Reserve interest rates hike has turned into asinking realization of what the move could mean forglobal economic growth. The Dow Jones IndustrialAverage lost 367 points or 2.1% on Friday, as aresult Indian markets are expected to remain weak,and the Nifty may test 7,700 levels.

Analysts said the markets are likely to remainvolatile this week due to the prevailing uncertaintyregarding the passage of GST bill in the wintersession of parliament which ends on December 23.The government's revision of GDP growth target to7-7.5% for fiscal 2015-16 has also hurt sentiments.

"The probability of the GST bill getting passed in thecurrent session of Parliament looks low," said DipenShah, senior vice-president and head of research atKotak Securities. "The cautious outlook by the chiefeconomic advisor on Friday has impactedsentiments."

Analysts said Nifty holds an important supportlevel at 7,700, and if the index breaks this level thenNifty may resume correction till 7,500 levels.

"A decline for Nifty towards 7700 is possible in thenear-term," said Amar Ambani, head of research atIIFL "Maximum open interest or outstandingpositions for Nifty is seen at 8,000 call option, and7500 put option, and we expect market tradingrange around these levels.

Sensex surged 474 points or 1.89% during last weekto settle at 25,519. Nifty rose 151 points or 1.99% tosettle at 7,761. Broader markets depicted morestrength, BSE Mid-Cap index rose 3.24% and BSESmall-Cap index advanced 2.84% in the week endedFriday, both these indices outperformed the Sensex.

Analysts said foreigners are slowly getting intoneutral trading zone, foreign portfolio investors(FPIs) are seen reversing its trend, they boughtshares worth a net Rs 445 crore last week.

On the global front, the US GDP data for thirdquarter is expected to be released on Tuesday, andUS initial jobless claims data to be announced onThursday.

(Ref http://economictimes.indiatimes.com/markets/stocks/news/as-uncertainty-over-gst-prevails-markets-to-remain-volatile-this-week-analysts/articleshow/50262495.cms)


5. After Parliament truce, government hopefulof passing pending bills barring GST

NEW DELHI: After the truce in Parliament, theModi government is hopeful about a substantialportion of pending legislative business beingcompleted in the remaining three days of the WinterSession beginning Monday.

After disruptions in both Houses, particularly theRajya Sabha, over the last three weeks, Thegovernment and opposition arrived at an agreementyesterday at an all-party meeting called by RajyaSabha Chairman Hamid Ansari to pass those billson which there is a general consensus, skipping thecontentious GST bill.

In the Upper House, where the Winter Session hasbeen a near washout so far, 18 bills are pending. Nonew bill could be introduced in Rajya Sabha duringthe session, while the only one that was passed wasthe The Negotiable Instruments (Amendment) Bill,which deals with cheque bounce cases.

Legislative and financial items entailing 43-and-a-half- hours of business are pending before theHouse, including key bills like The ScheduledCastes and the Scheduled Tribes (Prevention ofAtrocities) Amendment Bill, The Real Estate(Regulation and Development) Bill and The WhistleBlowers Protection (Amendment) Bill are to betaken up.

There is a broad political consensus to pass the theSC/ST bill, which is a politically-sensitive issue.

Apart from it there is also a general consensus topass the Appropriation Bills, the Anti-Hijacking Bill,the Atomic Energy (Amendment) Bill, theCommercial Courts Ordinance Bill and theArbitration and Conciliation (Amendment) Bill.

The SC/ST Amendment Bill, which was moved inthe House on December 14, has already been listedfor discussion on Monday. The government has alsolisted two appropriation bills the same day.

Two other bills -- The Arbitration and Conciliation(Amendment) Bill and The Commercial Courts,Commercial Division and Commercial AppellateDivision of High Courts Bill have also been listed forMonday.

The major bills like The Whistle Blowers Bill, TheAtomic Energy (Amendment) Bill and the The Anti-Hijacking Bill have been listed for Tuesday.

At the all-party meeting, it was decided that threebills - the Child Labour (Prohibition and Regulation)Amendment Bill, the Whistle Blowers Protection(Amendment) Bill and the Juvenile Justice (Care andProtection of Children) Bill - will be discussedduring the remaining period but the course of actionwill be decided later.

The opposition is insisting on sending the WhistleBlowers Bill to a Select Committee.

Rajya Sabha is also likely to take up discussion onthe issue prices of essential commodities andfoodgrains in the country and "growing intoleranceendangering the unity and diversity of the country".Ever since the Winter Session got underway onNovember 26, proceedings in the Upper House weredisrupted over a variety of issues, with Congressaccusing the Modi government of "politicalvendetta" in the wake of the National Herald case.The Arunachal Pradesh imbroglio and UnionMinister V K Singh's 'dog' remarks also triggereduproar in the House.

In Lok Sabha, Finance Minister Arun Jaitley will onMonday introduce The Insolvency and BankruptcyCode, 2015 that seeks to consolidate and amend thelaws relating to reorganisation and insolvencyresolution of corporate persons, partnership firmsand individuals in a time-bound manner formaximisation of value of assets.

Union Minister Nitin Gadkari will move theNational Waterways Bill, which seeks to makeprovisions for existing national waterways and toprovide for the declaration of certain inlandwaterways as national waterways and also toprovide for regulation and development ofwaterways.

On Tuesday, Labour Minister Bandaru Dattatreyawill move The Payment of Bonus (Amendment) Billthat seeks to amend the Payment of Bonus Act, 1965.Lok Sabha is likely to take up discussions on thesituation in Nepal and Indo-Nepal relations, besidesSustainable Development Goals.

Lok Sabha has allotted three hours and two hourseach to discuss and pass The National Waterways(Amendment) Bill and The Payment of Bonus(Amendment) Bill respectively.

(Ref http://economictimes.indiatimes.com/news/politics-and-nation/after-parliament-truce-government-hopeful-of-passing-pending-bills-barring-gst/articleshow/50253560.cms)


6. BJD to support GST Bill; Naveen hopes forPosco project

Announcing his party’s support to the GST Bill,Odisha Chief Minister Naveen Patnaik on Sundaysaid he is optimistic about implementation of thePosco project as well as an investment of Rs.1.73lakh crore during the next three years in the State.

“My party (BJD) supports the GST Bill as it is goodfor the State and also for the country,” Mr. Patnaiksaid while speaking at a round-table discussion on“The ease of doing business in Odisha”.

BJD has 20 members in Lok Sabha and seven MPs inRajya Sabha.

Replying to a question on Posco, which hasreportedly put its Odisha project on hold, Mr.Patnaik said: “Posco has proposed to be the largestFDI (Foreign Direct Investment) in the country. I amhopeful of its coming up here.”

Mr. Patnaik said the State government has taken upthe matter related to the Posco project with thePrime Minister and has been trying to convene ameeting at the Central Government-level to sort outthe issues.

With the Posco’s Rs.52,000-crore project goinguncertain mostly due to lack of mining linkages tothe South Korean steel major, Mr. Patnaik onOctober 22 had met Union Finance Minister ArunJaitley and requested him to convene a tripartitemeeting with Posco officials to take a final call onthe project. On Odisha’s plan for investment, Mr.Patnaik said: “Our Vision-2019 for industrialdevelopment is to achieve 60 per cent growth withyear-on-year growth of 15 per cent. We haveenvisaged Rs.1.73 lakh crore of new investmentcreating 3.50 lakh new jobs. To achieve this goal, theState government has taken a number of newinitiatives.” – PTI

(Refhttp://www.thehindu.com/news/national/other-states/bjd-to-support-gst-bill-naveen-hopes-for-posco-project/article8012074.ece)

7. Markets likely to remain volatile this weekas uncertainty prevails over GST Bill:Analysts

Analysts said markets are likely to remain volatilethis week as uncertainty prevails over GST Bill.

Nifty has a key support level at 7,700 and if theindex breaks this level, it may decline to 7,500 levels.

GAUTAM SHAH ASSOCIATE DIRECTOR &CHIEF TECHNICAL ANALYST, JM FINANCIALSERVICES

Where Are We? Analysis suggests that the test ofthe 7550 level early last week was a selling climaxand hence completed the large down cycle thatbegan in October 15. The recovery last week had allthe characteristics of a move after a bottom as thevolume activity, market breadth & momentum haveall been strong.

What is in Store: The markets seemed to haveclimbed a "wall of worry" creating a strong basearound 7500-7550 levels. The coming week is likelyto see consolidation in the range of 7600-7850. Once7850 is crossed we see Nifty moving back to 8000and then to 8250.

What Could You Do: Any pullback into the 7600-7700 zone should be used to go long. We see 2016 asa bright year.

ASHISH JHA TECHNICAL & DERIVATIVESANALYST, CENTRUM BROKING

Where Are We? Nifty has seen fair bit of recoveryfrom its double bottom support of 7550 this weekbut we saw some selling emerge around the stronghurdle zone of 7850.

What is in Store: The range for next week would be7680-7950. Any decline towards 7700/7680 shouldbe taken as a buying opportunity as we have seen astrong support base shift to that zone from theprevious support zone of 7600/7550.

What Could You Do: For short term traders theideal strategy would be to stay on the long side andexit only if the Nifty falls below 7680 on a closingbasis. Long-term investors can see good risk rewardin entering some beaten down stocks around theselevels.

ASHU BAGRI AVP-TECHNICAL RESEARCH,SBICAP SECURITIES

Where are We? We are in the range of 300 points.Downside support is coming in at 7614 while theresistance is at 7905.

What is in Store: The nifty future has closed at thehigher level of the weekly charts showing strength


for the next week. The volumes were more ascompared to previous week showing strength in theup move. Nifty future has closed above 7760. If itremains above 7760 then immediately on the upsideit will find resistance at 7905. A close below 7760 cantake Nifty to lower level of 7614

What Could You Do: Nifty futures has never closedbelow 7900 on a monthly basis for the last fourmonths. I will be a regular buyer below this level. Iwill be keeping a watch on the levels of 7760,7614and 7468 for buying purpose.

(Ref http://economictimes.indiatimes.com/markets/stocks/news/markets-likely-to-remain-volatile-this-week-as-uncertainty-prevails-over-gst-bill-analysts/articleshow/50260534.cms)

8. Crude prices, GST to sway marketsNEW DELHI: The domestic equity market may seevolatile trading sessions in a holiday-shortenedweek ahead, with movement of crude oil pricesexpected to be an important factor driving stocks inthe near term, say experts. Markets will remainclosed on Friday for Christmas.

"We expect the market to be volatile in the near termdue to domestic cues amid the prevailinguncertainty over the passage of the GST," said VinodNair, head (fundamental research), Geojit BNPParibas Financial Services.

The GST Bill is stuck in the Rajya Sabha where theruling NDA government does not have a majority aswell as due to stiff opposition by the Congress. Thegovernment has planned to roll out GST from April1, 2016.

The winter session of Parliament concludes onWednesday.

Vivek Gupta, CMT director research, CapitalViaGlobal Research, said, "Market may remain volatiledue to concerns over continuous falling of crude oilprices." Over the past week, in the broader market,the index gained 475 points to close at 25,519.

(Ref http://timesofindia.indiatimes.com/business/india-business/Crude-prices-GST-to-sway-markets/articleshow/50260433.cms)

9. Manufacturing companies fear loss of inputtax credit, GST on transfer to self

MUMBAI: The GST has a dual tax structure, whichallows both the Centre and states to levy tax.

In this fourth of the five-part series, TOI finds outwhy manufacturers are worried ...India Inc has been waiting for a seamless indirecttax regime and is looking forward to theintroduction of GST. However, it hopes that somepain points are resolved before the GST bill becomeslaw.

The basic frameworkThe dual GST structure, which enables both thecentral government and states to levy GST (CentralGST, or CGST, and State GST, or SGST), is causingsome concerns. In addition, integrated GST (IGST)will be levied by the Centre on inter-state supply ofgoods.

As Sunil Gabhawalla, indirect tax expert, points out:"The GST design has not been incorporated withinthe constitutional framework. The role of the GSTCouncil is only recommendatory. This results in astructural flaw whereby any of the states can deviatenot only with regard to procedures, rates andexemptions but also with regard to the basic GSTdesign (which is a multiple point tax system withcredit at each stage)."

Supply to self & cash outflow problemsThe tax trigger under GST is the 'supply' of goodsand services. The draft model GST law, which is inwide circulation, has defined 'supply' to also includesupply made without a consideration. "Thissignificantly widens the scope of the levy. Forexample, transactions in goods and services betweenthe head office and a branch of the same companymay be covered and subject to GST levy," saysRohan Shah, managing partner, Economic LawsPractice.

Currently, a transfer of goods to warehouses(known as stock transfer) doesn't attract any tax. Thevolume of stock transfers is high in certainindustries, such as pharma and FMCG.Under GST,the stock transfer is likely to come within the GSTambit. "Such goods will need to be valued at thetime of the stock transfer, for the purpose of GSTlevy.Specifically, valuation in case of capital assets,consumables, tools and spares,goods sent for job work or repairs will be verysubjective," says Gabhawalla. Government officialssay the draft model GST law, which is in circulation,was not released by the government -an officialversion will be released in the coming weeks forshareholder discussion. India Inc hopes that thisissue will be addressed.


Restrictions On Set-Off Of Input Tax CreditsIn simple terms, GST is levied on supply of goodsand the manufacturer will be allowed credit for theGST paid on purchases of input (an input tax creditwill be available). But there are restrictions onutilization of input tax credit, which could impactcash flows."A CGST tax credit cannot be set off against a SGSTtax liability. While IGST credit can be effectivelyutilized, a priority order has to be followed for sucha set-off (see table)," says Yusuf Hakim, partner atCNK & Associates. "In case a company has opted forseparate registrations of its business verticals in thesame state, then a SGST set-off even within that stateis restricted only to that business vertical. However,most business houses will opt for a commonregistration within the state, unless the GST lawoffers some specific tax incentives for a particularbusiness vertical, which seems to be unlikely, giventhat incentives are likely to be phased out under theGST regime," adds Hakim.

Further, if a company has business operations indifferent states, SGST cannot be set off pan-India."As regards, CGST set-off, there is no express clarity.One hopes that offset of excess CGST paid in onestate against the CGST payable in the other state isprovided for by lawmakers in the final GST bill,"sums up Hakim.

Loss Of Input Tax Credit"The GST IT infrastructure is to be set up such thatthere will be a matching of the input tax creditclaimed by a recipient and the tax paid by thesupplier. Accordingly, if a company's vendor is taxnon-compliant and blacklisted, the company as arecipient of goods could also be impacted anddenied input tax credit," says Shah.

(Ref http://timesofindia.indiatimes.com/business/india-business/Manufacturing-companies-fear-loss-of-input-tax-credit-GST-on-transfer-to-self/articleshow/50276226.cms)

10. Arun Jaitley holds talks with Congressleaders on GST Bill

This gesture should be taken as an answer to theircritics who questioned 'Rahul Gandhi meeting floodvictims in Tamil Nadu on the day he was supposedto appear in Delhi High Court. On the party's otherdemand of scrapping the powers to states to levy 1percent additional tax over and above the GST rate,he said the government will talk to manufacturingstates like Gujarat and Tamil Nadu, which havebeen demanding such a levy.

Sharma used the occassion to target Modi lamentingthat the measure could not be passed for five longyears during the UPA-II due to the opposition bythe present Prime Minister, who was then theGujarat Chief Minister. "Whatever you may believebut the system does not run like this", Modi stated.For the Congress, except one family, no one else canrule.

Describing BJP leader Subramaniam Swamy, onwhose petition the trial court had initiated legalproceedings, as a "private citizen", Jaitley said, "It isthe duty of every citizen to report an offence when itcomes to his notice".

Rahul said in Guwahati on Saturday that theNational Herald case had no bearing on the GSTBill.

"They (Congress leadership) have acquiredproperties worth huge amounts without spendinganything".

The current scenario in the parliament made FinanceMinister Arun Jaitley today post a message onFacebook. The Congress is, therefore, crying fouland calling it political vendetta.

The main opposition party Congress has beendemanding a simple GST and scrapping of theproposed levy of one per cent additional tax ongoods.

"Our protest against the government is against whatwe feel is a pattern of vendetta against Congressleaders by the NDA government, and not just theNational Herald case", said former ParliamentaryAffairs Minister Kamal Nath.

The opposition party is in no mood to give up itsprotest, and the government is set to hit them whereit hurts the most.

"Government is nowhere in the picture, let me makeit very clear but Congress party is trying to fight alegal batle in Parliament instead of fighting it incourt", he said.

"Democracy can not function at the whims andfancies of anyone", he added. Delhi High Courtgranted them an interim protection but eventuallydismissed the petition. The judge hearing the casehas opined that it "smacked of criminality". "Thenation is waiting for the Parliament to discuss publicissues, to legislate and approve a historic


Constitution Amendment enabling the GST", Jaitleywrote.

There is no doubt that Congress party is facing thethreat of getting isolated in Parliament and needs tocorrect its course, but till the time BJP remainsentangled with it in the game of political one-upmanship, there will always be a question mark onits own willingness to bring in the GST.

(Ref http://financialspots.com/2015/12/22/arun-jaitley-holds-talks-with-congress-leaders-on-gst-bill/)

11. Odisha to back GST Bill despite frictionwith Centre

Odisha chief minister and BijuJanata Dal (BJD)supremo Naveen Patnaik said on Sunday his partywould back the goods and services tax (GST) Billdespite the ongoing tiff with the Centre over thePolavaram project, drought relief aid, and grant ofspecial category status to Odisha. “My partysupports the GST Bill because it is good for the stateand good for the country,” Chief Minister NaveenPatnaik said at the second edition of Odisha RoundTable hosted by Business Standard .

On the tussle with the Centre over the Polavaramproject, drought relief and special category status,he stated, “These are separate issues. We willsupport whatever is good for the state.” The rulingBJD has raised a loud banner of protest against thePolavaram irrigation project, saying large tracts ofland in the southern tip of Odisha would beinundated if the project is allowed to come up inneighbouring Andhra Pradesh.Besides, with 26 of its 30 districts in the grip ofdrought, the state government has sought centralassistance of Rs 2,199.06 crore. Asked on the Poscoproject, the chief minister sounded optimistic.

“Indeed, Posco is the largest foreign directinvestment in the country and I certainly haven'tgiven up hope of its coming up here. Recently, Iurged the Prime Minister if the Centre could have ameeting to resolve the Posco project. They (Centralgovernment) will come back to us,” he said.

Patnaik admitted to a crunch in resourcemobilisation because of a dip in revenues from themining sector. However, his government would notabandon the welfare schemes and banked on itslatest industrial policy statement — Industrial PolicyResolution 2015 — to draw investments andgenerate employment. “We have plans in the next

three years to attract investments of approximatelyRs 1.73 lakh crore in the state. This will helpgenerate 350,000 new jobs,” he stated. Spelling outhis vision for Odisha, Patnaik said he aimed toeradicate poverty in the state and this explains hisgovernment’s thrust on pro-poor programmes. Hisvision is also aligned to development, welfare (ofthe people), health and education sectors, Patnaikadded. The chief minister indicated he was wary ofneighbouring states competing with Odisha to drawinvestments.

“We will certainly look into the aspects of ourneighbouring states and work for mutualcooperation,” he said.

Delivering the keynote address on ‘Ease of DoingBusiness’, he said: “We will continue to implementbusiness reforms to make it smooth for companiesto do business in the state. One of the key reformsplanned to be implemented in the next two to threeyears is the operationalisation of online combinedapplication form.”

(Ref-(http://www.business-standard.com/article/economy-policy/odisha-to-back-gst-bill-despite-friction-with-centre-115122000454_1.html)

12. Support GST Bill but onus for its passage ongovt: JD(U) Seating Chair - IndependentNEWS Agency

"Democracy can not function at the whims andfancies of anyone", PM Modi said at an event inDelhi.

However, fate took a queer turn the very next weekand now the Congress is on the defensive while theBJP is gloating over the developments in theNational Herald case. He also asked her and RahulGandhi to contest the issue in courts instead ofdisrupting the Parliament. "It's matter of sorrow thatParliament is not running", said Modi at the Jagranforum in Delhi. "The Congress is, therefore, cryingfoul and calling it political vendetta", he wrote.

Earlier, Congress president Sonia Gandhi, her sonRahul Gandhi and others were on Tuesday directedto appear in person on 19 December by a Delhi courtwhich allowed their plea seeking exemption frompersonal appearance for the day in the "NationalHerald" case.


Rejecting the Congress charge of political vendetta,Jaitley said the Government has "so far not takenany punitive action".

Referring to Prime Minister Narendra Modi'scomments that reforms meant for common men arebeing stalled in Parliament, Sibal asked, "When hewas Chief Minister of Gujarat and for six years hewas opposing GST, at that time was his feelings notconnected with common men?".

The Enforcement Directorate has not issued anynotice to them. Similarly, the National Herald casehas the potential to gobble up whatever is left of theCongress and help fulfil Modi's dream of a"Congress-mukt Bharat".

The Congress general secretary claimed that theassets of National Herald are not owned by privateparties, rather they are properties of "publicinterest".

"Legislative side is complicated because you needtwo-third majority in the Rajya Sabha, you need 50per cent of states to pass it and then we have to getGST Bill to be passed...so there is lot of heavy liftingto done on legislative side which makes thischallenging in terms of April 1, 2016", Mr Sinha said.

On the other hand, the BJP leaders are restrainingthemselves even in their attack on the Congress.Pushed to the wall over the stalling of Parliamentproceedings by the Congress MPs, the Unionministers are seen refuting the allegations beinglevelled at the ruling party.

(Ref http://seatingchair.com/2015/12/20/support-gst-bill-but-onus-for-its-passage-on-govt-jd-u-54054.html)

13. A delayed GST is better than a flawed one,says Arun Jaitley

Accusing the Congress of delaying the long-pendinggoods and services tax (GST) due to “collateralreasons”, finance minister Arun Jaitley on Saturdayindicated that while the new indirect tax regimemay not be able to secure passage in the ongoingsession, the government will push for other reformbills in the remaining three days of the session,which ends on Wednesday.

“As far as the GST is concerned, I have no doubt inmy mind that an attempt to delay it is entirely forcollateral reasons. And the only collateral reason, Isuspect is — if I cannot do it, why should somebodyelse do it. That I regret, when Indian politicsbecomes hurdle to India’s larger interests,” the

finance minister said at the annual general meetingof Ficci.

Also read: Agree with Jaitley, better to wait thanpass a flawed GST Bill: Chidambaram

He said that accepting the conditions put across bythe Congress in toto would make the proposed newindirect tax system flawed and “I think a delayedGST is better than a flawed GST”.The government will however take up three cruciallegislation — Arbitration Bill, Bill to set up benchesin high courts to deal with commercial disputes, andBankruptcy Bill — in Parliament in the remainingthree days. While the Arbitration Bill has alreadybeen passed by the Lok Sabha, the other two billswill be introduced in Parliament.

On Arbitration Act he said that in terms of ease ofdoing business, India has almost ceased to be acentre for dispute adjudication and arbitration. “Wehave to bring it back. Indian companies have to gothrough costly international arbitration and find itprohibitive. Therefore Arbitration Act, whichprovides for fast-track mechanism with singlearbitral member and outer time limit of six monthsto complete adjudication, will come up in thesethree days,” he added.

Emphasising that in democracy, “it is politics thatdetermines its policies and so the future depends onquality of politics we have”, Jaitley said that interms of economic growth, 1960s, 1970s and 1980swere a wasted era.

“In 1971, you could survive on slogan withoutperformance, in 1991 it was difficult because youstarted a change and Indian polity had fear ofunknown. So the constituency which opposed thechange was much larger. 2015 is different. One ofthe major thing is that India has become soaspirational that even when things are happening,there is a section which feels that why aren’t theyhappening quickly…,” he said.He also exuded confidence in the economy’s macro-economic parameters.

(Ref http://indianexpress.com/article/business/economy/a-delayed-gst-is-better-than-a-flawed-one-says-arun-jaitley/)

14. GST being delayed for 'collateral reasons':FM Arun Jaitley

However, the Minister added that the governmentwill push for other reform bills in the Rajya Sabha in


the remaining three days of the Winter Session,which ends on Wednesday.

The bills include amendment to the Arbitration andConciliation Act, a legislation to set up commercialcourts and bankruptcy code.

Addressing the annual general meeting of industrychamber Ficci, Jaitley said, "I have no doubt in mymind that attempt to delay (GST) is entirely forcollateral reasons. And the only collateral reason Isuspect is if I couldn't do it, then why shouldsomebody else do it?"

Politics should not become a hurdle to largerinterest of the country, he said, adding that it wouldnot be possible for the government to acceptCongress party's demand of prescribing GST tariffin the Constitution itself.

"A delayed GST is better than a flawed GST," hesaid.

The GST Bill is stuck in the Rajya Sabha where theruling NDA government does not have a majority aswell as stiff opposition by the Congress.

The government had planned to roll out GST fromApril 1, 2016.

The Bill, which is being touted as the biggest reformin indirect taxation since Independence, is unlikelyto be taken in the remaining three days of theWinter Session.

The Lok Sabha has already passed the CommercialCourts, Commercial Division and CommercialAppellate Division of High Courts Bill andArbitration and Conciliation (Amendment) Bill.

These are likely to be taken up in the Rajya Sabhanext week.

Regretting that some people get sadistic pleasure inseeing India slowing down, Jaitley said, "but thenit's a sadistic pleasure at a very severe national cost.We cannot allow that.

"There is no point saying that 'GST is good and webrought in the GST proposal, but', I think this 'but' isa terrible phrase as far as Indian politics isconcerned."

The biggest challenge at the moment is to get theIndian politics to support the economic reforms in

the midst of the global slowdown, he said, addingthat the endeavour should be to overcome politicalobstacles coming in the way of growth.

"Is the Indian politics going to be a support in thisadverse global situation, to add the extra per cent ortwo to our current level of GDP or is it going to bean obstacle?" Jaitley said.

The Minister added that he would "still urge andpersuade them (Opposition) to give up their rigidityon Constitutionally prescribed tariffs (for GST).

"Constitution prescribed tariffs actually can be analbatross around the neck of the future generation.And we owe it to them not to create situations ofthis kind."

Jaitley further said "we have three days ofParliament left. (They) are extremely crucial and Iam going to try and push some of these (reforms).

"These are important pieces of reforms which we aregoing to try and I hope nobody tries to hurt thecountry's interest by again invoking the word 'but'."

Referring to the Arbitration and Conciliation Bill,which will go to the Rajya Sabha for approval, theMinister said "in terms of ease of doing business,India has almost ceased to be a centre for disputeadjudication and arbitration and we have to bring itback.

"The Arbitration Act, which provides for a fast-trackmechanism with a single member and an outer timeperiod of 6 months to compete adjudication, waspassed by Lok Sabha and will come up in these 3days before the Parliament."

Regarding the Commercial Disputes Resolution Bill,he said it seeks to expedite resolution of suchdisputes which remain pending in courts for yearsand decades.

(Refhttp://economictimes.indiatimes.com/news/economy/policy/gst-being-delayed-for-collateral-reasons-fm-arun-jaitley/articleshow/50242897.cms)

15. Infosys at work on GST tech frameworkdespite delay in passing of Bill

NEW DELHI/BENGALURU: Infosys, which a fewmonths ago won a landmark Rs 1,380-crore contractfrom the government to develop a stateof-the-arttechnology platform for the proposed goods and


services tax (GST), is going ahead with the projectdespite the delay in the GST Bill getting passed,according to ministers and executives directlyfamiliar with the matter.

On Monday, Prakash Kumar, CEO of the Goods andServices Tax Network (GSTN), was in Bengaluru toreview the progress of the project, the peoplementioned above said. All of them requestedanonymity.

"From our end, the project is going ahead as perplans — the delay in the Bill getting passed has notstalled anything," said an InfosysBSE -1.80 %executive familiar with the plans, who requestedanonymity. "If not this session, there's every chancethat the Bill will get passed in the next session. Andin such a scenario, the technology framework for theGST has to be ready. So, as of now, the project is stillgoing ahead at full steam."

The passage of the GST Bill was indefinitely delayedafter opposition parties, led by the Congress,declined to support the tax reform measure whileagreeing to allow the Rajya Sabha, where they havethe majority, to function from Monday. Thegovernment has now changed the roll-out deadlinefrom April 1, 2016 to June 1.

The uncertainty over the Bill's passage has resultedin volatility in the stock markets and raised concernsover the future road-map of the goods and servicestax network.

On Monday, Kumar told ET that the project wasgoing ahead as per plan. "We are already workingon the IT framework," he said. "It's going on asplanned. You don't develop these kind ofapplications in one month, it takes time."

Infosys, the nation's second largest software servicesexporter, declined to comment or confirm whetherthe company was still going ahead with the project.

"In case the government makes some changes, we'llincorporate that. That's the way it was planned,"said Kumar, stressing that there was no change onthe deadline from the government's side. "It's opensource as well as proprietary components. Work isgoing on in full swing, as per our initial plan. Thebasic framework is being developed - if there is anychange in any particular process, we will changethat process," said Kumar.

PricewaterhouseCoopers is the official consultantfor this project.

"The three most important functionalities in theonline system are registrations, returns andpayments. We are closely monitoring the passage ofGST Bill and as of now targeting the system to beready by April-May 2016, with the keyfunctionalities in place," said Anurag Dua, director,government and public sector, at PwC. "In fact, ifchanges are proposed at a later stage (if it is not alarge-scale structural change in GST) after theimplementation of GST, those changes the systemwill be able to take up in a seamless kind of way,"Dua added.

(Refhttp://economictimes.indiatimes.com/tech/ites/infosys-at-work-on-gst-tech-framework-despite-delay-in-passing-of-bill/articleshow/50275120.cms)

16. SC gets plea urging enforcement of GST

A petitioner has moved the Supreme Court, seekingenforcement of the long-awaited Goods and ServicesTax (GST) as the legislation was stuck in Parliamentdue to constant “virtual non-functioning” of the LokSabha and Rajya Sabha.“The nation is waiting for Parliament to discusspublic issues and legislate. Parliament shouldfunction through debate, dissent and decision, notdisruption,” SK Bhardwaj said in his PIL.But the parliamentary conduct of MPs had“plumbed new depths,” resulting in the presentlogjam and non-passage of several Bills pending forlong. This had caused agony to the common man,besides wastage of taxpayers’ money due to stalledlegislative business, the PIL said.Pointing out that GST, which would replace allindirect taxes, had been mooted far back in 2000, thepetitioner said a categorical assurance was made inthe 2006-07 Budget presented by the then FinanceMinister P Chidambaram that GST would beintroduced in April 2010. But GST was yet tobecome a reality even after 15 years.Being the final arbiter and guardian of theConstitution, the SC should issue a directive for theenforcement of GST as Parliament was notfunctioning and important Bills were pending, thepetitioner pleaded.The PIL noted that there was no law or guideline todeal with the constitutional crises arising from thefrequent disruptions in Parliament and make thegovernment and MPs accountable.

(Ref http://www.tribuneindia.com/news/nation/sc-gets-plea-urging-enforcement-of-gst/174232.html)


17. GST: Delay might translate to growthopportunity missed

The importance of the Goods and Service Tax (GST)bill being passed for the Indian economy cannot beover stated. It is estimated that the GST would boostGDP by 2% a year and help in combating inflation.The political parties and all other groups concernedin the decision-making should do the needful toimplement the GST by 2016. Further delay in itsimplementation will be a lost opportunity in termsof growth. The political deadlock in the housecannot have sufficient justification of any reasonwhen it comes to the neglect of passing the bill onGST.

Simple Benefits of GSTAs per a World Bank report, implementing the GSTwould increase productivity and raise efficiencylevels in the logistics sector and the overalleconomy. Overall, it could cut freight times by 20-30% and lower logistics costs by a more thansubstantial 30-40%. India's key manufacturingsectors would receive a competitiveness boostequivalent to about 3-4% of net sales, helping inhigh growth and enabling job creation along theway. Recently, the RBI Governor, Raghuram Rajan,threw his weight behind the bill saying the GSTwould 'unify the nation'. However, whether the billsees the light of day in the winter session ofparliament remains to be seen. The whole state ofaffairs is indeed a disappointment given theopportunity portended by the bill.

Current Tax SystemCurrently, the tax system is complicated due to themulti- layered system of the government, with bothCentral and State governments having the power toimpose taxes. The goods that move across thecountry are levied with taxes at different rates. Thereviewing and examining of freight that takes placeat every inter-state checkpoint by the stateauthorities not only causes delays but also results inthe same freight getting taxed multiple times. Thepresent tax system increases the overall costincurred by a logistic service provider and isuniversally considered a hindrance by those in thelogistics industry.

Restructuring of Logistics Sector with GSTThe decrease in logistics costs that will accompanythe implementation of GST will raise competitionlevels to a new high in the sector. Small andunorganized players may tie up or collaborate withthe medium sized and big players in the organizedsector. These changes will help the unorganized

players survive the competition and big players willpossibly benefit as they would look to increase theirnetwork or reach through such collaborations. Theresult would be an efficient and collaborative usageof existing infrastructure assets for all.

Restructuring of Warehousing Sector with GSTWith the huge investments expected to be pumpedin to building the right logistics infrastructure, theindustry's warehousing structure will changedrastically. The development of large hubs in keylocations coupled with smaller spoke warehousescloser to production and consumption centres areexpected to emerge following the rollout. Theregulatory reforms under GST shall replace around15 state and federal taxes and other tariffs with asingle tax at the point of sale. It would also be the

largest driver of modern warehousing infrastructureas this will lead to efficient tax administration,improved logistics, transparent dealings, digitalcompliance, faster and efficient clearance of goods atports and dry ports. Therefore, harmonization of taxrates and administration across states will bringabout significant gain in minimizing distortions andreducing compliance cost for taxpayers.

ConclusionSimplifying the tax structure and bringing in GSTwill usher in a new era of growth and prosperityand will be a significant turning point in the historyof taxation in our country. Since the beginning of thegreat recession in 2008, India, with its consumer-driven economy has had ample opportunities tokeep pace with and surpass China's economicgrowth. So far, all those opportunities have beenmissed because of inadequate reform and a lack ofpolitical will and consensus. Today, with Chinafinally showing signs of slowing down, India seemsto be moving steadily ahead. Introduction of GSTcan consolidate this trend and ensure India'seconomic expansion domestically. The PrimeMinister's 'Make in India' vision may alsomaterialize into something more tangible.Opportunities abound, but they must be taken andthe GST Bill should be implemented at the earliest.

(Ref http://economictimes.indiatimes.com/small-biz/policy-trends/gst-delay-might-translate-to-growth-opportunity-missed/articleshow/50281313.cms)

18. Remove additional tax in GST, needflexibility issues: Rangarajan

HYDERABAD: The proposed 1 per cent additionaltax on inter-state sales is against the spirit of Goods


and Services Tax (GST) and that should not beimplemented, former RBI Governor C Rangarajansaid.

"I think GST is a good measure. Certainly that 1 percent tax, that was contemplated, goes against thespirit of GST, and that should not be implemented,"Rangarajan told PTI here.

Finance Minister Arun Jaitley had last week hintedat accepting Congress' stand on scrapping 1 per centadditional tax, but said that their demand forincorporating the GST rate in the Constitution Billwas not agreeable.

Congress has been stalling the passage of GST Billover its demand for a simple GST regime wherestates do not have powers to levy additional taxover a 18 per cent tax rate, which should form partof the Constitutional Amendment Bill.

At an industry meet on GST, Jaitley had said the 1per cent additional tax on inter-state sales wasproposed as manufacturing states like Gujarat andTamil Nadu were of the opinion that they, havingspent money on putting up infrastructure, wouldlose on revenue as GST is more of a destination tax.

Referring to the stand-off on GST, Rangarajan, whowas also the former Chairman of the PrimeMinister's Economic Advisory Council, said: "But onother issues, I think there should be some amount offlexibility, and we should also take note thatwhatever compromise is worked out is acceptable tothe states also. The states may not like too rigid aformulation."

Asked if enough is being done to unearth blackmoney, Rangarajan said while one thing is to bringit back, the other is to prevent black moneyaccumulation.

"I think as we move towards less and less controlsand as the fiscal system gets stabilised at areasonable level...the opportunity or the scope forcreation of black money will be less," Rangarajansaid.

On the country's GDP growth, Rangarajan said theeconomy as a whole would do slightly better thanlast year.

"Perhaps the growth rate in the current fiscal endingMarch 31, 2016, will be around 7.5 per cent. That'smy estimate," he said.

As for the country's exports continuing to fall for the12th month in a row in November, he noted thatIndia also benefited from lower imports.

"When you look at total value of exports, the declineis very strong. But if you exclude oil, the non-oilexport is also showing a decline, but not severe adecline as the overall exports, because on the importside we are gained by the fall in the oil prices,"Rangarajan pointed out.

"The export of oil products from India has alsosuffered because of fall in the value. Much dependsupon how the world economy picks up. I would stillthink that the current account deficit will still bemanageable.

"Export growth may come down or may bemoderated, but at the same time we have the benefitof lower imports because the oil imports...the valueof oil imports is coming down very fast because oilprices have gone below (USD) 50 (a barrel)," he said.

"But the non-oil exports will depend upon a largeextent on how the world economy behaves,"Rangarajan added.(Ref http://newsinformer.info/in-business-news/remove-

additional-tax-in-gst-need-flexibility-issues-rangarajan-economic-times/)

19. Imposition of cost by CESTAT on groundsof quality of adjudication order

F. No.390/CESTAT/69/2014-JCGovernment of IndiaMinistry of FinanceDepartment of RevenueCentral Board of Excise & Customs(Judicial Cell)

New Delhi Dated 22nd December , 2015

Instruction

To,

1. All Principal Chief Commissioners/ ChiefCommissioners and Director General under theCentral Board of Excise and Customs

2. Chief Commissioner (AR)/ AdditionalCommissioner (AR)/ Asstt. Commissioner(AR),CESTAT


3. All Principal Commissioners/ Commissioners ofCustoms, Central Excise & Service Tax/ Directorateof Legal Affairs

4. [email protected]

Sub: Imposition of cost by CESTAT on grounds ofquality of adjudication order

During the recent past there have been certaindecisions of the CESTAT wherein cost was imposedeither on department or on the adjudicating officer/appellate officers. The cost so imposed was orderedto be paid to the assesse or to the Registry of theTribunal.

2. On examination of such orders it is found that thecost has been imposed on the officers/ departmentfor ignoring ; (i) the directions and principles laiddown made de novo order while Hon’ble Tribunaldirecting the original adjudicating authority to re-examine the duty liability only , (ii) Principles ofnatural justice , (iii) the pleadings and evidences onrecord before deciding the matter or (iv) non-application of mind.

3. There are already provisions for examination ofall the order-in- original passed by theCommissioners/ Committee of Commissioners orthe Committee of Chief Commissioners. However, ithas been experienced that only such orders whichare passed in favour of assesses are subjected torigorous scrutiny and whenever the reviewingauthorities are of the considered view that orderswere not in conformity with the law, such orders areappealed against whereas the orders passed infavour of Revenue are accepted without any criticalexamination as to whether such orders are legal andproper. Therefore, there is a need to examinecritically the orders passed in favour of theDepartment also by the same standards. Needless tomention that such orders are avoidable in case theoriginal adjudication orders/ appellate orders areexamined critically during review by the competentauthorities.

4. In view of alarming increase in the number ofsuch orders, all Principal Chief Commissioners/Chief Commissioners should sensitize theadjudicating authorities about the issue ofimposition of costs by the Tribunals due to poorquality of the adjudications. To address the issue,the Principal Chief Commissioners/ ChiefCommissioners (under whose jurisdiction ordersimposing costs have been passed by the Tribunal)may kindly send a report after examining such cases

of the last two years regarding the feasibility forchallenging before the Hon’ble High Court /Supreme Court by way of Writ Petition or SpecialLeave Petition. A one time report as above may besent in a months time.

(Rohit Singhal)Dy. Secretary (Review)

(Ref http://www.cbec.gov.in/resources//htdocs-cbec/excise/cx-instructions/cx-instructions-2015/cx-ins-cost-quality-adjodr.pdf)

20. Winter session of Parliament ends; GSTremains pending

NEW DELHI: The stormy Winter session ofParliament ended on Wednesday, leaving thecrucial economic reform bill GST pending andevoking some strong comments by Rajya SabhaChairman Hamid Ansari who asked MPs tointrospect and desist from "demeaning the stature"of the House.

The Session, which began on November 26, had 20sittings in all and out of this, Rajya Sabha lost 47hours due to disruptions caused almost every dayby Congress which raised one issue after another.

The Lok Sabha performed a little better as it passed13 bills and saw discussions over various issues likeprice rise, flood and drought situation, despiterepeated uproar created by the opposition Congressover various issues.

The Rajya Sabha, which saw passage of nine bills,could not, however, clear the pending GST billwhich provides for overhauling the direct taxstructure of the country as Congress steadfastlymaintained its opposition to it.

But the parties, except the Left, came together in theUpper House on Tuesday to pass the JuvenileJustice Bill under which the age of trying a juvenileas an adult in heinous crimes like rape was broughtdown from 18 years to 16 years.The House virtually rushed to pass this pending billagainst the backdrop of the public outrage over therelease of a juvenile convict in the December 2012gangrape-cum-murder after spending three years ina reform home.

The disruptions in both Houses were caused overissues like summons by a Delhi court to Sonia


Gandhi and Rahul Gandhi in the National Heraldcase, atrocities on dalits, role of Arunachal PradeshGovernor and demand for resignation of FinanceMinister Arun Jaitley in connection with allegedirregularities in DDCA.

The Rajya Sabha also saw uproar over Congressmember Kumari Selja's remark about being askedabout her caste at a temple in Gujarat, alleged anti-Dalit remarks of Minister V K Singh and RSS ChiefMohan Bhagwat's reported comments on Ramtemple in Ayodhya.

Taking a serious view of the disruptions, the RajyaSabha Chairman asked the MPs "to introspect onthis state of affairs (and) desist from approaches andpractices that demean the stature of the RajyaSabha."

The Lok Sabha passed 13 bills and was considerablymuch productive as compared to the last Monsoonsession which was a virtual washout due to theruckus caused by the opposition which had beenpressing for ouster of External Affairs MinisterSushma Swaraj, Rajasthan Chief MinisterVasundhara Raje and Madhya Pradesh ChiefMinister Shivraj Singh Chouhan over variousallegations.

In this session, Speaker Sumitra Mahajan preferredto carry on with the listed business even asprotesting Congress members stormed the Well andshouted slogans, many times walking out of theHouse for the day.

She twice threatened to take action against theCongress members who were disrupting the Houseby asking officials to note down their names.

In the last session, she had suspended as many as 25of the 44 Congress members for their unrelentingdisruptions.

This session saw the rare action of the Speakerexpunging her own controversial "vested interests"remarks made about Congress members yesterday.

In her valedictory remarks, Mahajan said, "I hopethis coming year brings new hope and new energyin our lives and we reflect with resolve that in theNew Year we will take conscious decision whileusing all Parliamentary instruments to forcefullyregister our dissent and disagreement, if any, andwill attempt to ensure less disruptions."

The House passed 13 bills, including the Bureau ofIndian Standards Bill, the High Court and SupremeCourt Judges (Salaries and Conditions of Service)Bill and the National Waterways Bill.

The Rajya Sabha passed or returned nine Bills,including the Negotiable Instruments (Amendment)Bill, the Appropriation Bills, the Scheduled Castesand Scheduled Tribes (Prevention of Atrocities)Amendment Bill and the Juvenile Justice (Care andProtection of Children) Bill.

On the last day, the Upper House passed four bills,three of them within a few minutes without anydiscussion.

The Bills passed today were the Commercial Courts,Commercial Division and Commercial AppellateDivision of High Courts Bill, the Arbitration andConciliation (Amendment) Bill, the Atomic Energy(Amendment) Bill, the Payment of Bonus(Amendment) Bill.

The Prevention of Corruption (Amendment) Bill,2013 was referred to the Select Committee of theRajya Sabha and the Insolvency and BankruptcyCode, 2015, referred to a Joint Committee of both theHouses.

There were short-duration discussions on damagecaused due to North-East monsoon rain and floodsin Tamil Nadu and Andhra Pradesh situation inNepal and the state of Indo-Nepal relations and theflood and drought situation.

(Ref http://timesofindia.indiatimes.com/india/Winter-session-of-Parliament-ends-GST-remains-pending/articleshow/50299229.cms)

21. Over 48,000 including top industrialists signpetition for GST

Over 48,000 people, including prominentindustrialists, have supported a signature campaignlaunched by industry body CII urging Members ofParliament to allow the passage of the GST bill, evenas the Winter Session came to an end today.

The petition, titled ‘Universal Appeal to SupportGST’ filed on Change.org, terms the ongoing delayin implementation of GST as a matter of “greatconcern”.

“CII appeals to all stakeholders to support theConstitution Amendment Bill, so that it can see an


early passage in Parliament,” the chamber said inthe petition.

The petition, launched on December 19, has drawnsupport from HDFC Chairman Deepak Parekh;Godrej Group Chairman Adi Godrej; Dr Reddy’sLaboratories Chairman Satish Reddy; Aditya BirlaGroup Financial Services CEO Ajay Srinivasan; CIIPresident Sumit Mazumder; historian andbiographer Ramachandra Guha, among severalothers.

People from countries like the US, the UK, Canada,Australia, Singapore, Malaysia, the UAE, SouthAfrica and New Zealand have signed the petition.

The signature campaign has come against thebackdrop of uncertainty over roll out of the indirecttax reform, as the Constitution Amendment bill isstuck in Rajya Sabha as it could not be taken up fordiscussion in the Winter Session of Parliamentwhich concluded today.

The government was hoping to roll out the GSTregime from April next year.

“At this point of time it is imperative to moveforward with GST. It is the need of the hour to passthe Bill and implement GST without any furtherdelay,” the petition said.

GST has the potential to improve tax compliance,lower the overall tax rate in the country,dramatically improve ease of doing business andboost country’s GDP growth by 1 to 2 per cent, thepetition said.

(Ref - http://www.thehindu.com/business/Economy/over-48000-including-top-industrialists-sign-petition-for-gst/article8022112.ece)

22. Difficult to predict timeline for GST billpassage: Govt

The government on Wednesday said it is unable topredict a timeline for the passage of the GST Bill,currently stalled in the Rajya Sabha because theruling NDA does not have the required numbers inthe upper house of Parliament.

"We will have to see how the legislative calendardevelops... It's very hard to predict how soon thatwill happen," Minister of State for Finance JayantSinha told reporters here replying to queries on theGoods and Services Tax (GST) bill.

"GST is a transaction tax that can be put in placevirtually overnight, but there is the legislativecalender, then states have to pass it," he said onWednesday as the winter session of Parliament wasadjourned sine die.

At an all-party meeting held by Rajya Sabhachairman Hamid Ansari last week, the opposition,after weeks of confrontation on various issues, hadagreed to pass certain bills in the Rajya Sabha in thisfinal of the session, but consensus was elusive on theGST bill.

The Congress party is asking for a cap on the GSTrate to be included in the Constitution AmendmentBill, as also scrapping the proposed one per centadditional tax on inter-state movement of goods ongrounds that this would have a cascadinginflationary effect on prices.

At an interaction with industry chambers here lastweek, Jaitley said the Congress's pre-condition thatthe cap of 18 percent GST be placed in theconstitutional amendment was difficult to acceptbecause it would make raising taxes for exceptionalreasons very difficult.

"Give up the rigidness on constitutionallyprescribed (GST) tariffs, which can become analbatross around the necks of future generations," heexhorted the Congress on Saturday here.

The GST Bill, which seeks to usher in a pan-Indiacommon market by reforming the country's indirecttax regime, was passed in the Lok Sabha in May, buthas been stuck since in the Rajya Sabha.

(Ref - http://www.thestatesman.com/news/latest-headlines/difficult-to-predict-timeline-for-gst-bill-passage-govt/112294.html)

23. Govt delays bankruptcy law, fails to breakdeadlock on GST

NEW DELHI: The Centre sent a proposedbankruptcy law for review on Wednesday, closingoff a raucous Parliament session without transactingany major legislative business including a signaturereform on state taxes.

The bankruptcy law is aimed at unifying andoverhauling rules governing the liquidation orrevival of ailing companies into a single code andfor the first time imposing deadlines.


Its passage was widely considered to be a done dealafter the government introduced the legislation as amoney bill which could not have been blocked inthe opposition-dominated upper house.

But Finance Minister Arun Jaitley gave in to ademand by some opposition members for a reviewby a parliamentary panel. The panel has been askedto submit its suggestions in the first week of thesession that begins in February.

Jayant Sinha, Jaitley's deputy, told reporters thatwhile the government would have liked to pass thebill, it also wanted it to be foolproof.

The month-long session was also expected to make abreakthrough on the passage of the proposed goodsand services tax (GST) that has been languishing inparliament since last December.

The measure is the biggest tax reform since India'sindependence from Britain in 1947. It seeks toreplace a slew of federal and state levies, convertingthe nation of 1.2 billion people into a customs union.

But the tax bill has become a victim of a battlebetween Prime Minister Narendra Modi's BJP andthe opposition Congress.

Even Jaitley's offer to address some of the Congressparty's concerns on the bill failed to paper over thefraying ties between the two parties.

The failure to pass the GST in the session hasensured that Jaitley's self-imposed deadline of April1 for its launch will be missed.

"April 1 is out of question," a senior finance ministryofficial said without spelling out a new timeline.

Sinha also shied away from setting a new date forthe GST rollout, which he said was dependent onthe passage of the bill.

With political parties gearing up for a fresh set ofstate elections next year, very few are hopeful ofspeedier reforms.

"Prospects for wide-ranging reform in the first halfof 2016 look slim too," wrote Shilan Shah, aneconomist with Capital Economics.

(Ref - http://economictimes.indiatimes.com/news/politics-and-nation/govt-delays-bankruptcy-law-fails-to-break-deadlock-on-gst/articleshow/50297705.cms)

24. Hard to predict timeline for GST roll out,says Jayant Sinha

NEW DELHI: Government today said it is "hard topredict" the timeline for the roll out of indirect taxreform, Goods and Services tax (GST), as it mainlydepends on the legislative procedure.

"It is the legislative calendar, which is the gettingfactor. So when is it that the GST bill can be tabled inParliament? When the states will do what they needto do... it is very hard to predict right now how soonthat will happen," ?Jayant Sinha told reporters here.

The government was hoping to rollout the GST fromApril 1, but the Constitution Amendment Bill isstuck in Rajya Sabha as it could not be taken up fordiscussion in the Winter Session of Parliamentwhich concluded today.

He was replying to a question on what could be therevised date for GST implementation.

"GST is a transaction tax and it can be put in placeovernight. Administratively, we are ready to go forApril 1, 2016. If indeed the ConstitutionAmendment Bill is passed in the Budget session, wewill have see, how legislative calendar thendevelops," he said.

GST being a constitution amendment bill, it has tobe passed by two third majority in both the housesof Parliament and at least by 50 per cent of statelegislatures.

The new tax regime is touted as the biggest reformin the indirect taxation since independence andwould subsume levies like excise, service tax, andother local levies.

Sinha said the Winter Session of Parliament hasbeen "very disappointing" as the expectation of thegovernment was to pass the GST constitutionamendment bill.

"There was a very broad consensus across allparties. Unfortunately, the Congress party hasdecided it wants to wreck the Indian economy... Weare all paying the price for that and the collateraldamage is very enormous," he said.

Sinha said the Winter Session of Parliament hasbeen "very disappointing" as the expectation of thegovernment was to pass the GST constitutionamendment bill.


"There was a very broad consensus across allparties. Unfortunately, the Congress party hasdecided it wants to wreck the Indian economy... Weare all paying the price for that and the collateraldamage is very enormous," he said.

Sinha said the Insolvency and Bankruptcy Code,2015 which seeks to provide an easy exit option forinsolvent and sick companies, has been referred to a30-member Joint Select Committee of the membersof Parliament for further scrutiny.

He said there was delay in many legislation becauseafter approval of a Bill by the Standing Committeeof Parliament, Rajya Sabha would again send it toanother Committee.

In order to expedite the process, bankruptcy codehas been referred to a a joint select committee so thatthere could be a combined report taking intoaccount the suggestions and inputs from membersof both houses.

"With joint committee's report in hand by the end ofthe first leg of the budget session...our expectationwould be to get the Bankruptcy Bill passed (in thesecond leg of the budget session)," Sinha added.

He said the government is hopeful that both theGST as well as bankruptcy code would be passed inthe Budget session.

"If all parties work together to think about theinterest of the nation, rather than pursuing theirvested interest, then we will be in a situation wherewe will be able to give double booster shot to theeconomy with GST Constitution Amendmentpassed as well as Bankruptcy," Sinha said.

He said the solution offered by the government onCongress objections to GST bill are "veryreasonable".

"Any party that sees merit in logical argumentwould very quickly accept what we are suggestingas solution. If we have a meeting with the minds ofopposition on substance and not on politics, then Idon't see any reason why the ConstitutionAmendment cannot be passed in the budgetsession," he said.

The Congress has been opposing the GSTConstitution Amendment Bill on three grounds.They want the GST rate to be prescribed in the bill,to which the government says tax rates cannot be'cast in stone'.

The Congress has also been demanding forscrapping of 1 per cent additional tax for inter-statemovement of goods and services, which thegovernment has hinted at agreeing to.

Congress has also suggested a Supreme Courtadjudicating disputes between states. The billproposes GST Council to settle disputes and if it isnot addressed even there, then the council itself willprepare a redressal mechanism.

Talking about the fiscal consolidation, Sinha said thegovernment is committed to the roadmap. Thegovernment proposes to lower fiscal deficit to 3.9per cent in current fiscal and further to 3.5 per centin 2016-17. Deficit was 4 per cent in last fiscal.

(Ref http://economictimes.indiatimes.com/news/economy/policy/hard-to-predict-timeline-for-gst-roll-out-says-jayant-sinha/articleshow/50298778.cms)

25. BJP’s GST Bill destroys single market

As the winter session of Parliament wound upwithout the crucial Goods and Services Tax (GST)Bill being passed, Congress leader Shashi Tharoorsaid that the Bill could have been passed in thesession if the ruling Bharatiya Janata Party (BJP) hadnot “mulishly” insisted on resisting the Congressparty’s three key proposals.

Tharoor maintained that there was a “perception” inthe Congress party that “there is a sort of desire (inthe BJP) to target United Progressive Alliance (UPA)leaders for matters that have nothing to do withpolitics,” like the National Herald case. This, hesaid, had contributed to the “growingestrangement” between the BJP and the Congress,and the BJP needed to heal the rift in order to rule.

The MP from Thiruvananthapuram said if the BJPhad “the sense” to formulate something closer to theUPA’s original GST Bill, then it could have beenpassed in Parliament quickly.

“I honestly believe the Bill could have been passedin this session if the BJP had not mulishly insistedon resisting our proposals,” Tharoor said in anexclusive interview to the thestatesman.com.

He also said the Congress party had made a “hugecompromise” to reduce its earlier minimum list ofeight objections to three core objections. “We standby those (eight) objections. But in a spirit of


compromise we came down to three essential ones,”he added.

“It has been an absolute disaster that 70 years afterIndependence we don’t have one single unified taxregime. The Congress or UPA GST Bill supportedthat and proposed it,” he said, adding that it was“strongly opposed by the BJP, especially NarendraModi”.

Tharoor said that in the BJP version of the Bill "theyhave destroyed the idea of a single market, bytalking of producer states having the right to levy anextra one per cent”.

“Now if you start dividing the country intoproducer states and consumer states you aredestroying the single market, and on top of that youtalk about exporting goods from producer state toanother state,” he said, adding, “I say we shouldnever vote for a GST Bill with such a provision.”

The second objection is about the way in which theBill is not comprehensive and comes up withvarious numbers which, according to the NationalInstitute for Finance Policy, could amount in somecases to 27 per cent.

Tharoor said that 27 per cent tax could be recreatingthe grounds for tax evasion, and black money wouldgo up. “We said, if you really need the revenue, letus have a cap of 18 per cent. They are saying wecan’t have a cap as we can’t have a cap in theConstitution. That is simply not true… because thereis such a precedent. We are not suggesting anamount, but a percentage. What is the harm inthat?” he added.

“Instead of being a comprehensive bill like ours,they’ve left out a number of goods and services,which in our version of the Bill were included. Ourworry is if you create a tax which is difficult forpeople to comply with you will actually bepromoting conditions for tax evasion,” Tharoor said.The third condition was “there has to be a fairdisputes reconciliation mechanism.” “What we aresaying is have an independent body. We’vesuggested a formula, we could be open to discussingthe formula,” he said.“If the BJP had accepted these conditions twomonths ago we would have had a Bill this session. Ifthey accept the conditions within the next twomonths, we will have a bill in the next session,” headded.

Tharoor maintained that independent ratingagencies stated the UPA’s bill could add one to twoper cent to the GDP. But with regard to the BJP’sbill, “the experts said that in this form it will noteven add 0.1 per cent to the GDP”.“So it’s a pointless Bill, we may as well not have it.Even advocates of GST urged people to block it,saying no bill is better than a bad bill. Because GSTwill get discredited if you have a bad bill,” Tharoorsaid.Wen asked if the Congress objection to the GST waslinked in any way to the National Herald case,Tharoor said the Congress “is obviously veryunhappy over the National Herald issue”.

“There is a perception in the Congress party thatthere is a sort of desire to target UPA leaders formatters that have nothing to do with politics,whether it is the National Herald, or the raid onVirbhadra Singh during his daughter’s wedding. Idon’t want to raise myself as an example. There area lot of people who feel that political use is beingmade of non-political cases against UPA figures. Iwould say that whether or not it is true, and it ispossible that it is not true, there is such a perception.And that perception undoubtedly has contributed tothe growing estrangement between the BJP, as theruling party, and the Congress as the principalOpposition party. And it is in the BJP's interests toheal this estrangement, this rift, because it has torule for the next three-and-half years,” Tharoor said.

(Ref http://www.thestatesman.com/news/india/bjp-s-gst-bill-destroys-single-market-tharoor/112502.html)

26. RBI: GST must to enable India to movetowards potential growth

MUMBAI : Quick introduction of the Goods andServices Tax is key to enabling India to achieve itspotential growth rate, said the Financial StabilityReport released by the Reserve Bank of India.

“Carrying out important economic reforms in tunewith market expectations will be highly beneficial tothe economy amidst global uncertainties.Implementation of Goods and Services Tax is animmediate necessity so as to enable India to movetowards its potential growth rate,” the report said.

Minister of State for Finance Jayant Sinha expressedhope of passage of the GST Bill in the Budgetsession.


There have been indications that the governmentcould push the implementation of GST to Jun 1 fromthe original plan of introduction from Apr 1.

erratic climate impact

Reserve Bank of India Governor Raghuram Rajanhas warned that despite domestic inflation easing“significantly”, it is imperative that the impact oferratic climatic conditions on inflation movement infuture is closely watched.

(Ref http://www.freepressjournal.in/rbi-gst-must-to-enable-india-to-move-towards-potential-growth/742123)

27. Don't Give Administration of GST toCentral Revenue Officials, Say TaxAdvocates

Tax advocates have suggested to finance ministerArun Jaitley that administration of the goods andservice tax (GST)-- once it passes the legislativehurdle -- be handed over to state revenue authoritiesand not the central ones.

The All India Tax Advocates Forum said that sincesuch state officials "have greater penetration, spreadand expertise" in administering diverse tax laws,including those on value added tax and central salestax, they would be more suitable to do the job.

"At present, state revenue officials are effectivelymonitoring over 75 lakh registered dealers spreadacross the country, while number of dealersregistered under Union Excise and Service Tax isabout 17 lakh," according to the Forum's president,MK Gandhi.

In a letter to Jaitley, the forum has also suggestedthat to make administration of the new tax effective,a separate all India service for commercial taxes beset up on the lines of the Indian AdministrativeService and the Indian Police Service.

The GST bill is stuck in the Rajya Sabha because ofopposition by the Congress party, which has therequisite number of votes to block a Constitutionalamendment envisaged under the new tax regime.The Congress has suggested several changes whichthe ruling party is unwilling to accept.

Gandhi said in a press release that state officialsshould also handle complicated issues related tointer-state taxation and would be well equipped to

take on a regime which consolidates a number ofcentral and state taxes.

Gandhi said officials of the Central Board of Exciseand Customs (CBEC) were "well versed only in thenuances and technicalities of manufacture and notin trade transactions."

Therefore, he added, it would be disadvantageousto the GST regime if CBEC officials were given themain role in administration of the GST.

(Ref http://www.newindianexpress.com/nation/Dont-Give-Administration-of-GST-to-Central-Revenue-Officials-Say-Tax-Advocates/2015/12/24/article3194203.ece)

28. AIFPA raises pitch against recommendationof higher taxes on food items in GST

NEW DELHI: Despite the indefinite delay in thepassage of the goods and services tax (GST) duringthe winter session of Parliament, All India FoodProcessors' Association (AIFPA) has raised a pitchagainst the recommendation of higher taxes on fooditems in the proposed regulation.

The association, which represents food companiessuch as NestleBSE 0.19 %, BritanniaBSE 0.45 % andalso small and medium players of the industry,wants the government to retain the present status offood in the central levy which is either 'exempted',or 'zero rated', or 2 per cent.

"Food is a life sustaining input and taxes on fooddirectly impact inflation thereby causing socialdiscomfiture and unrest. It is evident that this sectordeserves a sensitive treatment in the matter oftaxation and cannot be clubbed with other sectors,"said Amit Dhanuka, president, AIFPA.

The association demands commonly used foodproducts, including dairy products, fruit &vegetables, spices, edible oil, meat and poultry,aquatic food products, grain and cereals, sugar andhoney products, tea and coffee, herbal plant food,namkeens, ready-to-eat-food and traditional andethnic foods not be so highly taxed. "These foodproducts are important constituents of the foodbasket and are not luxury or sin products," heargued.

Recently, Coca-Cola said it would have to shut someof its bottling plants due to the 40 per cent 'sin' taxlevied on fizzy drinks in the proposed bill.


A government appointed panel examining GST hassuggested rate of 17-18 per cent which will be leviedon most goods and all services. The proposed taxregime which is considered to be one of the biggesttax reforms in India since Independence, seeks toreplace a slew of federal and state levies, convertingthe nation of 1.2 billion people into a customs union.

ET View

No exceptions to make exemptions

The clamour for exemptions must stop. It goesagainst the grain of any tax reform. Chief economicadvisor Arvind Subramanian has given a sensibleblueprint on GST rates, which the government mustadopt. It includes a standard 17-18 per cent GST rateand a lower 12 per cent rate for items deservingconcession. Food products can attract the lower rate.As manufactures get credit for all the taxes paid oninputs in the value chain, production will becomemore efficient. This, in turn, will lower retail prices.The government must not buckle under pressure.

(Ref http://economictimes.indiatimes.com/industry/cons-products/food/aifpa-raises-pitch-against-recommendation-of-higher-taxes-on-food-items-in-gst/articleshow/50318251.cms)

29. Authorizing officers of the Zone to appearbefore CESTAT Bench Corrigendum dt. 18-12-2015

File can be Downloaded from here :-

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-instructions/cs-instructions-2015/fn-no-390-misc-69-2015-jc.pdf

(Ref - http://www.cbec.gov.in/Excise-Circulars-Instructions)

30. Reduction of Government litigation -providing monetary limits for filing appealsby the department before CESTAT/HighCourts and Supreme Court



(Ref - http://www.cbec.gov.in/Customs-Circulars-Instructions)

31. Withdrawal of cases pending beforeHC/CESTAT on the basis of earlier SupremeCourt's decision on identical matters


http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-instructions/cs-instructions-2015/fno390misc67-2015-jc.pdf

(Ref - http://www.cbec.gov.in/Customs-Circulars-Instructions)

32. The proposed Goods & Services Tax ratesare retrograde for food products

The Goods and Services Tax (GST), which wasenvisaged for accelerating the economy throughstreamlining of taxation regime across the country,so far failed to get Parliament's nod. The foodindustry which is a price- sensitive industry needsconcessions, feels industry captains. So far, there isno clear picture on what kind of rates will beapplicable for the industry. The minister concerned,however, tried to pacify the industry byacknowledging the need for rates on a lower side,still the food industry feels that if the subject of foodis placed along with others, it would have negativeconsequences for the industry.

GST (Goods & Services Tax) is rapidly movingtowards its point of culmination. The latestproposals made by senior functionaries of thegovernment, including the chief economic advisor &head of GST panel Arvind Subramanian, reflect thatGST rates are likely to be finalised in the range of16% - 20% i.e. Central GST @ 8% - 10% and stateGST @ 8% - 10%. While these rates may be suitablefor many fields, a thorough analysis reveals thatthese rates are extremely retrograde for ‘foodproducts,’ as described below:

In the past two decades, through a well-studiedand calibrated process, the Central levy i.e. CentralExcise Duty on food products was placed at‘Exempted,’ ‘Zero Rated,’ 2% levels (also 6% ifCenvat credit is to be availed), which is helping thefield to stabilise through adverse & difficultcircumstances. This rate structure was evolved afterextensive and comprehensive deliberations owing toa large number of important & critical reasons. Thenation is grappling with issues of exorbitantwastages of agri-produce, low levels of processing,uncertainties of climate, distress to farmers, highfood prices and inflation. There is an urgent need forthe food sector to contribute to Make in India, skill











development and employment generation. Underthese harsh circumstances, it is not at all justified toplace food products at 8% - 10% Central GST.Neither this sector will be able to bear this burden.The system may go into a negative spiral causingserious crisis, further distressing the consumer andthe farmer.

Impact on inflation

Food is a life sustaining input and taxes on fooddirectly impact inflation thereby causing socialdiscomfiture and unrest. It is evident that this sectordeserves a sensitive treatment in the matter oftaxation and cannot be clubbed with other sectors. Ithas been assessed that the family food basketconsumes 40% - 60% of the earnings of a commoncitizen resulting in a major household burden.Moreover, food is perishable by nature, has a highrisk profile, is critical to consumer needs andtherefore, should not be targeted for revenuegeneration.

In view of the above strategic futures, it isstrongly recommended that the present status ofCentral levy on food products (i.e. exempted, zerorated, 2%) should be continued in the GST regimeunder the terminology ‘Central GST.’

In a similar manner, realising the inherentsensitivities & limitations of the food sector, asexplained above, the state levy under GST i.e. ‘stateGST’ for food products should be kept at the samerate as was recommended for VAT by the‘Empowered Committee of State Finance Minister.’The rates recommended by the EmpoweredCommittee were ‘Exempted,’ ‘Zero Rated,’ and ‘4%VAT’ levels.

Multilevel employment

It needs to be recognised that food sector has thehighest multiplier effect in generating multilevelemployment. There is an urgent need to provideimpetus to this sector to harness its vast potentialrather than seek revenue from food products. Wehave to adopt a ‘Food Sensitive Tax Policy’ in theGST framework. The GST rates being proposed bysenior government officials at the moment appear tobe highly regressive in the context of ‘FoodProducts.’

It is important to clarify here that the currentrates of ‘Exempted’ or ‘Zero Rated’ food productsdo not pose any difficulty in the system. Thegovernment gets input taxes even if the final food

product is ‘Exempted’ or ‘Zero Rated.’ There shouldbe no worry in continuing the policy of Exempted orZero Rated food products to the GST Scheme also.

It is strongly recommended that to savewastages, help farmers, generate employment,boost ‘Food Processing’ in the country, and forgreater economic & strategic benefits, it is advisableto maintain low rates of ‘Central GST’ and ‘stateGST’ for ‘food products’ in line with those of‘Central Excise Duty’ and ‘ State VAT’ currently.The nation looks forward to a clear fiscal policy inthis regard. This policy should cover all commonlyused food products, including ‘Dairy Products’,‘Fruit & Vegetable Products’. ‘Spices &Condiments,’ ‘Edible Oils & Fats,’ ‘Meat & PoultryProducts,’ ‘Aquatic Food Products,’ ‘Grain & CerealProducts, ‘Sugar & Honey Products,’ ‘Tea & CoffeeProducts,’ ‘ Herbal & Plant Food Products,’ ‘Namkeens & Savories,’ ‘Ready-to-eat-Foods,’ and‘Traditional & Ethnic Foods.’ These food productsare important constituents of the food basket andare not luxury or sin products. These food productsmerit ‘Exemption’ or ‘Zero Rating’ under GST.

It may be reiterated that the food sector hasimmense growth potential and there will be hugecontribution to revenue by way of input duty. It willalso enhance GDP significantly.

Integrated process

Food is an integrated process, each stepinvolves some processing and at each step food isconsumed in some form. An attempt to classify foodproducts into various baskets for application ofdifferent tax levels will lead to uncontrollable‘product-and-rate-litigations,’ dissipating valuabletime & energy of the government and the industry.

Keeping food products at ‘Exemption’ or ‘ZeroRating’ will also promote innovation which lies atthe root of the ‘Make in India’ programme. This GSTrate structure for ‘food products’ will be onevisionary policy which will go across the board tosatisfy the entire nation and applauded forever.

Let us take the right step forward and ensurerapid growth of the food sector by placing ‘FoodProducts’ at ‘Exempted’ or ‘Zero Rated’ level under‘Central GST’ and ‘state GST.

(Ref - http://www.fnbnews.com/Top-News/the-proposed-goods--services-tax-rates-are-retrograde-forfood-products-38286)


33. Centre, States broadly agree on the GSTexemption list, says CEA Subramanian

The Centre and the States are broadly on the samepage on the number of items that will be exemptedfrom the Goods & Services Tax (GST) regime.

Arvind Subramanian, Chief Economic Advisor tothe Finance Ministry, told BusinessLine that “theexact list of exemptions will be decided by theproposed GST Council. But there is anunderstanding that the 300 (existing exemptions)will come down to 90 for both the Centre and theStates… There seems to be a broad politicalconsensus on this.” Subramanian, who recentlysubmitted his report on the proposed GST rates toFinance Minster Arun Jaitley, had likened theeconomy to an “exemption Raj” and stressed theneed to rationalise such incentives. Currently, thenumber of exemptions at the Centre stands at 292(excise duty related) and 90 at the State level (VAT-related). Asked if he agreed with the figure of 1.4per cent as GST’s contribution to GDP, Subramaniansaid: “I didn’t make any such calculations.Hopefully, it will help, but we didn’t factor it in. Ifthat happens, it will be a bonus.”

Administrative preparations

Declining to give a definitive timeline for theintroduction of GST, Subramanian saidadministrative preparations are going on for its rollout. “It’s difficult to give a timeline because itdepends on when the Constitution Amendment Billis passed. Once the Constitution Amendment isdone, we will try and implement it as soon aspossible. Since it is a transaction tax, it doesn’t needto be implemented from beginning of the fiscal. Itcan be implemented mid-way also,” he said.

The government is expected to push through theConstitution Amendment Bill for GST in the Budgetsession of Parliament to ensure a swift rollout of thetax. The work on the enabling legislation is likely tobe concluded by this month-end. The draft GST law,which heavily borrows from Subramanian’s report,is likely to include the tax rates, define the term‘supply’, and set the threshold level for the tax.

The Finance Ministry is finalising the model GSTlaw, which has already undergone three rounds ofrevisions. The law will be enacted by both theCentre and the States after the ConstitutionAmendment Bill is passed by Parliament.

(Ref - http://www.thehindubusinessline.com/economy/centre-states-broadly-agree-on-the-gst-exemption-list-says-cea-subramanian/article8029398.ece)

34. Government hopeful of GST bill will bepassed in Parliament: Jayant Sinha

A day after Prime Minister Narendra Modi reachedout to the Congress leadership, the governmentexpressed hope that the GST Bill will be passed inParliament and implemented soon.

"On the GST... We are hopeful, we remain hopeful,"Minister of State for Finance Jayant Sinha said whileaddressing the annual session of PHD Chamber ofCommerce. Hopefully, the GST will be implementedsoon, he added.

Talking about India's fiscal architecture, Sinha said"when the GST is implemented, it will be the mostrevolutionary transformation of taxes in India sinceindependence. That's how a big game changer it is".

Modi had invited former Prime Minister ManmohanSingh and Congress President Sonia Gandhi for atea at his residence, where the discussions coveredlegislations pending before Parliament, particularlythe Goods and Services Tax (GST) ConstitutionAmendment Bill.

The government needs Parliament approval for theGST Bill in the ongoing Winter Session to roll outthe new indirect tax regime, as planned, from April1, 2016.

Sinha further said the government is trying toreform the tax system to make it more simple andpredictable and a step towards that direction isbringing down corporate tax rate to 25 per cent fromthe present 30% by phasing out exemptions.

"A part of the reason to get rid of the exemption oncorporate tax side is that we want to reducelitigation. So that we don't have to do theadversarial rent-seeking tax exercise. So, all ourefforts are towards that end," he said.

Sinha said the Finance Ministry has already heardviews of the pharma and auto sectors on theroadmap for phasing out exemptions and invitedindustry leaders to seek their views on the same.

"Those proposals have already been put up, pleasecomment on them, tell us what you think. Many ofyou are going to be very upset because these


exemptions are going to go... But it is a big change,"he said.

Sinha said the measures such as a 10 per centincrease in state's share in Union taxes to 42 percent, implementation of the GST and reduction incorporate tax rate will be a "radical change to India'sfiscal architecture"

(Ref - http://www.dnaindia.com/money/report-government-hopeful-of-gst-bill-will-be-passed-in-parliament-jayant-sinha-2150008)

35. Cigarette firms will have to ‘rework’ supplychain under goods and services tax regime

Cigarette manufacturers such as ITC, GodfreyPhillips and Golden Tobacco will have to ‘rework’their supply chain when the GST is implemented inthe country, with the tax implications on theirproducts undergoing a “significant change” underthe new indirect tax regime.

Change in the tax implications on cigarettes andother tobacco products will be higher comparedwith other products, as at present, cigarettes aresubject to excise duty, VAT (value-added tax) andentry taxes, and GST will subsume all indirect taxesto create one rate, according to analysts. Currently,overall indirect tax incidence on tobacco productsvaries across different states, making it a complextax structure.

“Under a national-level tax system under GST, taximplications of bringing in raw materials andequipment from other states to the state wherecigarette is being manufactured will undergo asignificant change, “ M S Mani, senior director,Deloitte India, told FE.

According to Mani, the unmanufactured tobacco,actually an agricultural product, was also subject tocertain indirect taxes. “So, tobacco companies nowneed to rework their supply chain. After the roll-outof the GST regime by the government, tobacco firmswill have to re-evaluate transportation costs andwork on logistics management,” he said.

For cigarette makers, logistics management is veryimportant as high moisture content affects theproducts. Tobacco moisture is one of the importantfactors in smoking quality.

Mani said the tobacco firms would benefit if theCentre scraps the tax of 1% on the inter-statemovement of goods. Chief economic adviser Arvind

Subramanian-led panel on GST rates has suggestedthat the 1% inter-state tax be done away with.

The Subramanian panel has recommended a 40%‘sin tax’ on tobacco products based on the currenttax structure.

According to Mani, currently it would be prematureto comment on change in actual indirect taxincidence on cigarette companies, as the rate of 40%mentioned for the demerit goods would beconsidered by the GST council while determiningthe rate of GST for tobacco products.

While commenting on his panel’s recommendationson GST rates on tobacco products earlier this month,Subramanian said some of these goods were taxedat close to what the panel suggested. “We have notrecommended anything at all to suggest increases inany of these rates. We are just codifying what thestatus quo is,” he has added.

According to Sachin Menon, head of indirect tax,KPMG in India, overall indirect tax incidence oncigarettes would be “more or less” the samecompared with the current rates if the governmentaccepts the panel’s proposal. “The Centre may alsouse top-up excises over and above the GST, if it feelsthat there is a deficiency in the taxation,” Menonadded.

Edelweiss head of research Vinay Khattar said thesentiment of the tobacco industry will be down onthe back of a high ‘sin tax’, as the industry wasalready facing volume degrowth in cigarettebusiness.

“Smoking is down in the country because of avariety of reasons, including health concerns andhigh incidence of taxation. The government’sprimary aim is to reduce smoking levels, and thehigher sin tax is a step in this direction,” Khattaradded.

During the second quarter of this fiscal, thecigarettes business of ITC remained muted due totaxation and regulatory headwinds. The India’slargest cigarette maker had said the operatingenvironment for the legal cigarette industry in thecountry was rendered even more challenging withtwo rounds of sharp increase in excise duty — inJuly 2014 and February 2015.

New rules* Change in the tax implications on cigarettes andother tobacco products will be higher compared


with other products, as at present, cigarettes aresubject to excise duty, VAT and entry taxes, andGST will subsume all indirect taxes to create onerate, according to analysts

* For cigarette makers, logistics management is veryimportant as high moisture content affects theproducts. Tobacco moisture is one of the importantfactors in smoking quality

(Ref - http://www.newslocker.com/en-in/news/india-economy-news/cigarette-firms-will-have-to-rework-supply-chain-under-goods-and-services-tax-regime/view/)


3.0 Case Laws

3.1 Case Laws related to Excise

Sr. No. 1RelevantSection Section 5ARelevantStatute Central Excise Act 1944Issue General ExemptionSub IssueFavour of AssesseeIssuingAuthority Supreme CourtJudgment Holding company had assigned its

trademark 'BILZ' in favour of assesseeunder agreement with right to usesaid trademark in India exclusively -Assessee used said brand name ongoods and claimed SSI-exemption -Department denied exemption onground of use of other's brand - HELD: Because of aforesaid assignment,assessee is using trademark 'BILZ' inits own right as its own trademark -Therefore, it cannot be said that it isusing trademark of 'another person' -Hence, assessee is entitled to SSI-exemption

Citation [2015] 63 taxmann.com 317 (SC)Commissioner of Central Excise,Bangalorev.Otto Bilz (India) (P.) Ltd.

Sr. No. 2RelevantSection Section 11A read with Section 35FRelevantStatute Central Excise Act 1944Issue AppealsSub IssueFavour of RevenueIssuingAuthority High Court of MadrasJudgment Where pre-deposit order directing

assessee to make a pre-deposit wasnot at all challenged, same hadattained finality and once pre-depositorder has attained finality, dismissalof appeal for non-compliance with

pre-deposit condition cannot beindependently challenged

Citation [2015] 64 taxmann.com 201 (Madras)Sri Krishna Smelters (P.) Ltd.v.Customs, Excise & Service TaxAppellate Tribunal

Sr. No. 3RelevantSection Rule 5RelevantStatute CENVAT Credit Rules 2004Issue RefundSub IssueFavour of AssesseeIssuingAuthority CESTAT New DelhiJudgment Appellant, engaged in manufacture of

HDPE woven bags, was availing crediton same - Appellant shifted machinesto another premises near factory -Machines were returned within 180days - Movement of machines as wellas semi-finished material from factoryand finished material from rentedpremises were done by creatingchallans - Shifting was done only dueto paucity of space - No job work wasdone - Commissioner (Appeals)corroborated that appellant hadtaken semi-finished goods outsidefactory premises for completion ofmanufacturing process due toshortage of space in factory andfinishing work of stitching and packingwas being done by appellant withouthiring or engaging other person fordoing work and, thus, no job workerwas involved - Whether since therewas no suppression of facts on part ofappellant as he intimated departmentabout removal of machine andsubmitted proper document, Cenvatcredit could not be denied toappellant - Held, yes

Citation [2015] 64 taxmann.com 172 (NewDelhi - CESTAT) Primo Pick N Pack Ltd.v.Commissioner of Central Excise &Service Tax, Bhopal


Sr. No. 4RelevantSection

Section 11A read with Rule 6 and 14of the Cenvat Credit Rules 2004

RelevantStatute Central Excise Act 1944Issue Interest on Delayed payment of

duty/taxSub IssueFavour of AssesseeIssuingAuthority High Court of Andhra PradeshJudgment Assessee-PSU was manufacturing

pistols, missiles, etc. for Ministry ofDefence - In March 2010, assesseesought clarification from departmentwhether goods were exempt underNotification 63/95 - In absence ofclarification, assessee took Cenvatcredit and paid duty on final products- On getting clarification in April 2011that goods were exempt, assesseereversed entire credit - Departmentdemanded interest on wrongly takencredit - Tribunal held that : (a)assessee had right to ask forclarification from department, (b) inabsence of clarification, assessee's actin paying duty and taking creditcannot be said to be 'wrong'; (c)therefore, credit was not 'wronglytaken or utilized' and hence, therecan be no interest under rule 14 -HELD : Findings of fact of Tribunalwere not perverse - Hence, appealwas dismissed

Citation [2015] 64 taxmann.com 148 (AndhraPradesh) Commissioner ofCustoms, Central Excise & Service Taxv.Bharat Dynamics Ltd.

Sr. No. 5

RelevantSection Section 3ARelevantStatute Central Excise Act 1944Issue Charge / LevySub Issue Excise duty based on production

capacityFavour of Assessee

IssuingAuthority CESTAT AhmedabadJudgment Excise duty based on production

capacity - Vide Notification dated 4-2-2011, government completely banneduse of plastic pouches for packing ofPan Masala and Gutkha - Assesseeapplied for closure of factory andmachines were sealed on 10-2-2011 -On 17-2-2011, Supreme Courtclarified that ban would be effectivefrom 1-3-2011 - Assessee applied forde-sealing and machines were de-sealed on 17-2-2011 - Owing toclosure of factory during 11-2-2011 to16-2-2011, assessee applied forrefund of duty pertaining to 6 days -Department denied refund arguing'abatement is allowed only if factorydoes not produce goods for 15 daysor more' - HELD : Assessee's requestfor closure of factory owing tocomplete ban falls under first provisoto section 3A(2), read with rule 16and therefore, there can be no dutyfor period of closure - It is not a caseof non-production/abatement owingto temporary closure falling underrule 10 - Mere fact that factory hadreopened subsequently on decision ofSupreme Court cannot be used todeny benefit of 'closure of factory' -Hence, assessee was eligible forrefund under rule 16

Citation [2015] 64 taxmann.com 102(Ahmedabad - CESTAT)Dhariwal Industries Ltd.v.Commissioner, Central Excise &Service Tax, Vadodara-I

Sr. No. 6

RelevantSection Rule 4RelevantStatute Central Excise Rules 2002Issue Duty payable on RenewalSub IssueFavour of AssesseeIssuing CESTAT Mumbai


Authority

Judgment Appellant was granted permission tostore goods without payment of dutyoutside factory premises - Appellant,before expiry of permission, made anapplication for extension - Saidapplication was vetted bySuperintendent of Central Excise andhe recommended same to Asstt.Commissioner, who alsorecommended for extension -Whether since both field formationsthat is, Range Superintendent as wellas Jurisdictional Division officerrecommended case of appellant ashad been genuine one, Commissionercould not reject application withoutgiving any reason - Held, yes

Citation [2015] 64 taxmann.com 59 (Mumbai -CESTAT) Leben Laboratories (P.) Ltd.v.Commissioner of CentralExcise,Nagpur


3.2 Case Laws related to Service Tax


Section 65 (19) read with Sections65B(40), 66D(d) and 66D(f)

RelevantStatute Finance Act 1994Issue Taxable ServicesSub Issue Business Auxilliary ServicesFavour of AssesseeIssuingAuthority CESTAT MumbaiJudgment Assessee was engaged in preparation

of vegetables and fruits by sorting,cleaning, boiling and freezing sameand subsequently packing it in unitpacking to be sold by their customersunder brand name - Departmentdemanded service tax treating sameas 'processing of goods for/on behalfof clients' - Assessee claimed that itamounts to manufacture and notliable to service tax - HELD : Activity ofprocessing vegetables by assessee willbe in relation to 'agriculture'; hence itis exempt under Notification No.14/2004-ST and not liable to servicetax under business auxiliary services

Citation [2015] 64 taxmann.com 70 (Mumbai -CESTAT) Tasty Bite Eatables Ltd.v.Commissioner of Central Excise, PuneIII

Sr. No. 2RelevantSection Section 72RelevantStatute Finance Act 1994Issue Best Judgement AssessmentSub IssueFavour of AssesseeIssuingAuthority CESTAT New DelhiJudgment Alleging that assessee had failed to

furnish requisite information and hadalso not furnished returns,department issued notice resorting tobest judgment assessment andpassed assessment order - Assesseeargued that proceedings were badbecause : (a) returns were filed on

time, (b) notice sought month-wisedetails without specifying whichdetails, and (c) despite assessee'srequests, department did not verifyrecords - HELD : Section 72 can beinvoked only if : (a) return is notmade, or, (b) having made return, taxis not assessed as per law - Sinceassessee had made return, section72(a) was not available - Since thereno allegation that assessee had madereturn but failed to assess tax as perlaw, section 72(b) was also notavailable - Further, notice did notpoint out what information was notsupplied - Moreover, departmentalletters asked for details, without evenspecifying what details/documents -Hence, notice was issued merely onbasis of presumptions and was notmaintainable - Assessment order wasset aside

Citation [2015] 64 taxmann.com 203 (NewDelhi - CESTAT) Creative Travel (P.)Ltd.v.Commissioner of Central Excise &Service Tax, New Delhi


Section 65(25b) read with Section65(30a)

RelevantStatute Finance Act 1994Issue Taxable ServicesSub Issue Commercial or Industrial ConstructionFavour of AssesseeIssuingAuthority CESTAT New DelhiJudgment Construction work of shops for local

authority, which were to be allottedto unemployed people under a statesponsored scheme, is liable to servicetax. In case of construction services,abatement cannot be denied even iffree supplies of materials by servicerecipient were not included in grossamount

Citation [2015] 64 taxmann.com 166 (NewDelhi - CESTAT)Commissioner of Central Excise &Service Tax, Raipur


v.Arora Construction


Section 65(16) read with Section65(104c)

RelevantStatute Finance Act 1994Issue Taxable ServicesSub Issue Broadcasting ServicesFavour of RevenueIssuingAuthority CESTAT ChennaiJudgment Stay Order - Under permission from

Broadcasting Ministry, assessee wasuplinking its own TV channels andearning 'allotment of airtime anduplink income', which was booked as'broadcasting income' in Profit & LossAccount - Department demandedservice tax under Broadcastingservices - Assessee argued that, as perCircular dated 9-7-2001, uplinking ofprogramme to satellite is donethrough BSNL or other earth stationslocated in India/abroad and uplinkingagencies are not broadcastingagencies; therefore, assessee'sactivity could be taxed only underBusiness Support Services from 1-5-2006 - HELD : Since assessee wasuplinking its own TV channels and hadearned 'airtime and uplinkingcharges', same was prima facietaxable under Broadcasting services -Pre-deposit was ordered in part

Citation [2015] 64 taxmann.com 125 (Chennai- CESTAT) Coxswain Technologies Ltd.v.Commissioner of Service Tax, Chennai

Sr. No. 5RelevantSection Rule 2(1)RelevantStatute Cenvat Credit Rules 2004Issue Cenvat CreditSub Issue Input ServiceFavour of AssesseeIssuingAuthority CESTAT New DelhiJudgment

Assessee, an advertising agency, took

input service credit of eventmanagement services - Assesseesubmitted that : (a) eventmanagement concerns conductevents likes shows, exhibitions etc fordisplaying exhibiting variousconsumer goods, (b) assesseeobtained space for advertisement insuch shows, exhibitions etc. byavailing service of event managementconcerns and therefore, same wasinput service used for providingoutput service - HELD : Eventmanagement services availed byassessee is related to output serviceof providing advertisement servicesand eligible for credit - Denial ofcredit on ground that assessee wasnot registered for event managementservices is too flimsy and feeble -Hence, credit was allowed

Citation [2015] 64 taxmann.com 153 (NewDelhi - CESTAT) Shakun Advertising(P.) Ltd.v.Commissioner of Central Excise &Service Tax, Jaipur


Section 80 read with Section 76, 77and 78

RelevantStatute Finance Act 1994Issue PenaltySub IssueFavour of AssesseeIssuingAuthority CESTAT New DelhiJudgment Assessee, an advertising agency, paid

service tax on commission taking 15per cent as commission amount -Since, in eighteen cases, commissionwas higher than 15 per cent, assesseepaid differential service tax ondifferential commission prior toissuance of notice and argued thatsame occurred by mistake, asnormally commission was 15 per cent- HELD : Assessee has put forward aplausible explanation for failure topay service tax - In view of reasonablecause for said failure, penalties were


waived under section 80Citation [2015] 64 taxmann.com 153 (New

Delhi - CESTAT) Shakun Advertising(P.) Ltd.v.Commissioner of Central Excise &Service Tax, Jaipur

Sr. No. 7RelevantSection Section 78 read with Section 73RelevantStatute Finance Act 1994Issue PenaltySub IssueFavour of RevenueIssuingAuthority CESTAT AllahabadJudgment For computing reduced penalty of 25

per cent in section 78, 'service taxassessed or determined under section73(2)' is taken, which shall includeboth : (a) sums paid prior to issuanceof notice and appropriated inadjudication order; as well as (b)further sums confirmed as payable inadjudication order

Citation [2015] 64 taxmann.com 243(Allahabad - CESTAT) Amit PandeyPhysics Classesv.Commissioner of Central Excise &Service Tax, Kanpur


3.3 Case Laws related to Customs

Sr. No. 1RelevantSection Section 111RelevantStatute Customs Act 1962Issue Confiscation of improperly imported

goodsSub IssueFavour of RevenueIssuingAuthority High Court of MadrasJudgment Goods liable to confiscation if

condition prescribed for its freeimport is violated

Citation [2015] 64 taxmann.com 5 (Madras)HRB Boarding and Lodging (P.) Ltd.v.Union of India


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