December 2015 issue of Tax Amicus brings to readers two articles. While the first talks about various issues in the recently notified Swachh Bharat Cess, the second article is on interest liability in case where duty is paid before finalisation of provisional assessment. It is stated that such interest is not payable as the Supreme Court has dismissed, on merits, the SLP filed by the department against the judgement of the Bombay High Court in Ceat [2015 (317) ELT 192 (Bom.)].
Central Board of Excise & Customs has revised monetary limits below which appeal shall not be filed by the Revenue Department in the CESTAT, High Courts and the Supreme Court. In Central Excise portion this issue of Tax Amicus summarises a recent judgment of the Supreme Court wherein it has been held that pre-delivery inspection charges (PDI) and free after sales service charges, which are not charged by the manufacturers of vehicles from the dealers, are not to be included in the transaction value of the vehicles, on which the manufacturer has to pay excise duty. CESTAT Bench at Delhi has held that filling of gas in cylinders, does not amount to manufacture. Further, Punjab & Haryana High Court has held that provisions of limitation as prescribed under Section 11B of the Central Excise Act, 1944 would not be applicable in case of rebate claims. These and certain other important orders are reported in this issue.
Customs portion of the Amicus, covers decisions of various Courts and Tribunal, and includes decision by the Supreme Court of India holding that the conversion of free shipping bill into drawback shipping bill may be permitted by the Commissioner under certain circumstances. Order of CESTAT Chennai holding that registration as per Customs (IGCRDMEG) Rules, 1996 is procedural and can be fulfilled post-importation, is also covered along with many other recent decisions of the Tribunal.
Under Service Tax, the Amicus covers many recent decisions, including the one by Gujarat High Court holding as not valid, attachment (recovery proceedings) before issue of SCN. Allahabad High Court has also observed that attachment without notice and opportunity of hearing is abuse of power. CESTAT Mumbai has held that taxi provided by radio taxi operators to customers is not taxable under Supply of Tangible Goods for Use service.
VAT portion includes recent amendments in the Haryana VAT Act in respect of Input Tax Credit and revision in rate of VAT on mobile phones sold along with accessories. Rajasthan High Court has held that battery and battery parts, primarily meant for motor cars are eligible for rate of tax as parts of motor vehicles.