India revises its model BIT text
11 January, 2016
India finalised the model Bilateral Investment Treaty (BIT) agreement last month. The first version was seen as pro-State with clauses like those relating to investor responsibilities, provision for the host State to make counter claim, absence of Most Favoured Nation clause and so on. The revised text incorporates some changes which make it more...
No interest if differential duty paid before finalization of provisional assessment
1 January, 2016
The Supreme Court of India has dismissed the Special Leave Petition filed by the Revenue department against the order of the Bombay High Court in a case involving liability to pay interest when the duty was paid before finalization of provisional assessment. The Apex Court in its Order dated 14-12-2015, found absence of any merit in the petition filed by the Reven...
New All Industry Rates of Drawback notified
17 November, 2015
Central Board of Excise and Customs (CBEC) has notified new All Industry Rates (AIR) of Duty Drawback which are effective from 23-11-2015, i.e. will be applicable on exports made from 23rd of November 2015. Further, Customs, Central Excise and Service Tax Drawback Rules, 1995 have been amended by Notification dated 16-11-2015 to...
GST in India – Reports on business processes released
3 November, 2015
The Joint Committees on Business Processes for Goods & Services Tax (GST), set up by the Ministry of Finance, have given their reports providing a broad outline of the processes to be followed in respect of registration, payments, refunds and in case of filing of returns under the proposed GST regime by the assessees.
Provisional release by Customs – Jurisdiction for appeal
21 October 2015
Delhi High Court has held that appeal against provisional release of goods can be filed before Commissioner (Appeals). The Court in a recent judgement (Gurdeep Kaur v. Commissioner) noted that the order in relation to provisional release falls within the description of “order or decision” as provided in Section 128 of...
Windmill doors are part of wind operated electricity generators
27 August, 2015
The Supreme Court of India has held that windmill doors and electrical boxes are components and/or parts of wind operated electricity generators (WOEG). Benefit of duty exemption under Notification No. 6/2002-C.E. (List 5, Item No. 13), listing “Wind operated electricity generators, their components and parts thereof”, was held as available to th...
No Service Tax on indivisible works contracts prior to 1-6-2007 – SC
25 August, 2015
The Supreme Court of India has held that indivisible works contracts were not liable to Service tax prior to 1-6-2007 under various entries of the Finance Act, 1994. The Court rejected the contentions of the Revenue Department that the 46th Constitutional Amendment had itself divided works contracts by Article 366(29A)(b), and that the amendment of the Servi...
Australia proposes new green-gold standard for COOL
11 August 2015
USA went through a long drawn battle to protect its COOL (Country Of Origin Labelling) measures which were held to be protectionist and discriminatory. It seems to have inspired rather than deterred Australia from introducing its own labelling requirements. The proposed reforms to the existing rules include two aspects – whether the food was grown or made in ...
Indian Parliamentary Committee on GST
29 July, 2015
The Select Committee of the Rajya Sabha presented its report recently on the Constitution (122nd) Amendment Bill, 2014. The bill is the first step to bring Goods and Services Tax (GST) across India. The amendments are aimed at empowering the Federal / Union Government to levy tax on goods beyond manufacturing stage and the Regional / State Governmen...
Limitation for demand for breach of exemption notification
24 July, 2015
The Bombay High Court has held that demand beyond 5 years cannot be confirmed by invoking bond in case of EOUs. It was observed that even if fraud is of great magnitude and there is admission of involvement, it does not mean that recovery of duty, because of such fraud, can be made at any time under Section 11A of the Central Excise Act, 1944. The High Court b...