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Tax Amicus: August 2014

New provisions brought into force with the assent of Finance (No. 2) Bill, 2014 with effect from 6-8-2014, requiring compulsory pre-deposit and withdrawing discretion of the appellate authorities / body to grant stay is discussed in this issue of Tax Amicus. According to the author of the article covered in this issue, the present amendment is short sighted and adds to the miseries of the assessees.

Under Central Excise, this issue covers CESTAT decisions holding that, cylinder rental charges are not includible; interest is payable from three months from date of Tribunal’s order reducing demand; and that cement cleared in 50kg bags to builders & RMC manufacturers is eligible for exemption. Customs portion of the Amicus covers case law holding that, mere issuance or dispatch of notices to assessee would not amount to ‘giving’ of notice under Section 110(2) of the Customs Act; it is obligatory upon the assessing officer to pass speaking order within 15 days; Oil/Fuel contained in vessels imported for breaking up is freely importable; and that depreciation on capital goods is admissible, in case of debonding of EOU, once export obligation is discharged even partly.

Gujarat High Court has allowed Cenvat credit on CHA service and shipping agents & container services and Chhattisgarh High Court has allowed Cenvat credit on GTA services from factory gate to customer’s premises when excise duty is charged on specified rate (MRP). These two orders are summarized in this issue of Tax Amicus under Service Tax portion. The VAT portion of this issue while covering various notifications amending the Rajasthan VAT provisions and Haryana VAT law, also brings a report on the Karnataka High Court decision holding that supply of food and drinks in canteen is covered under ‘business’ and ‘sale’ and VAT would be payable.

August, 2014/ Issue-38 August, 2014/ Issue-38

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