September issue of Tax Amicus covers an article which discusses the question as to whether ‘Total’ Cenvat credit is to be considered for reversal formula under Rule 6 of Cenvat Credit Rules. According to the author, where inputs or input services are exclusively used in the manufacture of dutiable goods or for providing taxable output services, the restriction under Cenvat Rule 6(1) itself would not be attracted and hence there shall be no requirement to apply the formula under Rule 6(3A) for such input services.
Ratio Decidendi in Central Excise portion of this Amicus covers important Supreme Court judgments holding like cash discounts are admissible as deductions to arrive at the assessable value of goods and Vaseline Intensive Care Heel Guard is to be classified as a medicament under Chapter 30 and not a preparation for skin under Chapter 33 of the Central Excise Tariff. Madras High Court order holding that Central Excise duty is not payable on clearance of fly ash, which is produced due to burning of coal for generation of electricity in thermal power stations and CESTAT, Delhi order that no penalty for suo-motu credit of interest on delayed refund of pre-deposit are also covered in this section.
This issue of Tax Amicus covers a notice issued by Commissioner of Customs which clarifies the procedure for import of metallic waste and scrap. Ratio Decidendi under Customs portion of this month’s Amicus carries CESTAT Mumbai order holding that redemption fine is not imposable when goods are not available for confiscation and CESTAT Hyderabad order clarifying that while a holding company may have effective control over a subsidiary, such control does not amount to ownership of the holding company over the subsidiaries. Other important case law covered includes Supreme Court judgment upholding that territorial restrictions on import for welfare of people are valid.
Service Tax portion of Tax Amicus covers CESTAT, Delhi order holding that refund claim for a particular quarter need not be necessarily in respect of input services consumed in that quarter. Other important order of Delhi CESTAT that in the course of a credit card transaction, various customary relationships are established and the same cannot be limited to relationships emerging due to opening of a bank account and Banking and Other Financial Services (BOFS) did not seek to include services provided by an issuing bank to an acquiring bank within its ambit.
Amendments made in UP VAT Act and Haryana VAT Act are included under Notification section of Value Added Tax portion of this issue. Ratio Decidendi of this portion covers two important judgements on digital still image video cameras whether can be considered as information technology product and availability of input tax credit when discounts are received from sellers subsequently.