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...
Corporate guarantee having bearing on profits is an International Transaction
17 July, 2015
Corporate guarantees have often been examined for transfer pricing adjustment. While there are number of judgements on how to determine the ALP and that bank rates are not to be applied, whether the transaction is an international transaction is always intriguing.
ITAT, Hyderabad in its decision in Four Soft P Ltd v. DCIT...
Mandatory pre-deposit for appeals filed prior to 6-8-2014
16 July, 2015
Rajasthan High Court has agreed with the earlier Order of the court (Paramount Security v. UoI – W.P. No. 12232) which had held that effect of the amendment to Section 35F of the Central Excise Act, 1944 in 2014 cannot be restricted only for appeals filed after 6-8-2014.
According to the earlier order such restricti...
ADD – New Zealand proposes automatic termination period
9 July, 2015
New Zealand continues to seek ways to reform its anti-dumping and countervailing duties regime. Last year it had sought views on introduction of a bounded public interest test (Refer, International Trade Amicus, July 2014 issue) and now proposes to lay down the broad parameters and procedure to take into account the effect of AD, on public -...
Commissions paid by manufacturer to related exporter - Inclusion in export price
9 July, 2015
European Union’s General Court has upheld the downward adjustment to the export price in respect of commissions paid by the manufacturer to its exporter. The applicant-manufacturer here was of the view that they and the exporter (Singaporean entity) formed a single economic entity and that, consequently, there was no need to carry out any downw...
Exemption notification – Applicability of Interpretative Rules of Excise Tariff
3 July, 2015
Three Judges Bench of the Supreme Court has, on 1-7-2015, held that Rules of Interpretation of the Central Excise Tariff may not be applicable if the notification (exemption notification) commands and require a different understanding. Holding that rules or principles of interpretation are always subject to context and are not binding commands, the Court rejected the...
Clarification on Rollback provisions of APA
19 June, 2015
Advance Pricing Agreement (‘APA’) Scheme was introduced in the statute in 2012, which authorizes the CBDT to enter into agreement with the taxpayers, prescribing the arm’s length price (ALP) for international transaction which have been undertaken (which are continuous in nature) and those to be entered into between related parties in t...
EOUs – FTP provisions incorporated in Excise notifications
15 June, 2015
Notification Nos. 22/2003-C.E. and 23/2003-C.E. have been amended by Notification No. 28/2015-C.E., dated 15-5-2015 to reflect the new Foreign Trade Policy 2015-20 notified by the Ministry of Commerce on 1st of April. Some of the important changes are,
EOUs have been allowed to return, without payment of duty, capital goods tra...