Transfer of Status Holder Incentive Scrip (SHIS) is the topic of discussion in this month’s article. Discussing the question as to whether mere issuance of sale invoice in favour of broker / intermediary by the seller status holder would amount to transfer of scrip, the author is of the view that the incentive scheme is turning out to be a major disincentive drifting away from the very objective of upgradation of technology and increasing exports.
Drawback rates have been revised and system of online submission of IEC application has been operationalised. CESTAT Mumbai has held that merely because a product possesses certain therapeutic properties which are naturally occurring, the same cannot be classifiable as medicament. Delhi High Court has held that benefit of Served From India Scheme (SFIS) cannot be denied to Indian subsidiaries of foreign entities on the ground that they do not represent any Indian brand. This issue provides update on these changes and orders.
Central Excise portion of this Amicus covers recent CBEC Circular providing guidelines for issuance of summons in Central Excise and Service Tax matters. It also provides summary of orders passed by CESTAT, Delhi allowing exemption under Notification No. 214/86-C.E., meant for job work, in a case where the principal manufacturer had not filed the requisite declaration and extending area based in a case when village name and khasra number subsequently figured in the notification after substitution.
Service tax part of the Amicus has many recent decisions of CESTAT including the one holding that reimbursement of payment made on behalf of principal-service recipient would not be taxable. It has also been held that there is no service element in the activity undertaken by the dealer of used cars to enhance value of goods. The Mumbai Bench of CESTAT has held that service which is an input for another service is covered under the definition of input service for the purpose of Cenvat Credit Rules, 2004.
Under VAT portion, this newsletter covers amendments in the Rajasthan VAT Act and Uttarakhand VAT Act. Supreme Court’s Larger Bench has upheld the constitutional validity of Entry 25 of Schedule VI of the Kerala Sales Tax Act and it has been held that sales tax is leviable on the goods component of photography services.February, 2015/Issue-44