CASE LAWS

2016-TIOL-03-ARA-ST + Story

SICPA INDIA PVT LTD Vs CST: ADVANCE RULINGS (Dated: January 22, 2016)

ST - It is not appropriate to determine the meaning of the Agreement on the basis of a phrase used in the Agreement - applicant is required to supply and install the ESCIM System at the site of the customer, supply consumables, as also provide training and documentation with respect to the System - transaction in question qualifies as a transfer of right to use goods and consequently is outside the definition of service: AAR [para 26, 30, 31, 32]

Application allowed

2016-TIOL-02-ARA-CX

INDUS TOWERS LTD Vs CCE: ADVANCE RULINGS (Dated: January 22, 2016)

CX - Manufacture - Applicant engaged in business of providing telecommunication infrastructure support services to mobile telecom operators in India - They are registered with Department of Telecommunication (DoT) as service provider for providing passive telecommunication infrastructure support services - Applicant submits that in view of high utilization of equipments at sites and to reduce operational cost and capital investments, applicant proposes to undertake repair and maintenance of said equipments so that same can be re-used without requiring replacement in all cases - Revenue agreed with applicant that activities involving mere repair of goods would not amount to manufacture within meaning of section 2(f) of CEA, 1944 - Since activities of repair and maintenance have been held as not amounting to manufacture, second issue raised by applicant regarding basis for arriving at value for purpose of Excise Duty under CEA, 1944 becomes infructuous.

Cenvat Credit - Applicant is eligible to avail Cenvat Credit of Excise Duty under CEA, 1944 / Additional Duty of Excise under Section 3(1) of Customs Tariff Act, 1975 paid on parts and spares used for their replacement of defective ones and ST paid on inspection, Certification and engineering services for aforesaid repair and maintenance activities and claim set off against output ST paid for rendering of passive infrastructure service by applicant to its customers: AAR.

Application allowed

2016-TIOL-01-ARA-ST

CREATIVE PROBLEM SOLVING INDIA Vs CST: ADVANCE RULINGS (Dated: January 8, 2016)

ST - As per MOU between applicant and one foreign firm IDEAS, applicant has agreed to become a Distributor of books of various nature which will be supplied by IDEAS and those books will be sold to various purchasers in India - It is a simple transaction between Distributor and IDEAS that if Distributor comes to know about any error that shall be corrected and extra expenditure required to be made by IDEAS would be reimbursed separately, there seems to be no element of service - Distributor applicant has not asked any question about whether there is any service provided by IDEAS to Distributor - Whether sale of books to Indian entities involves any ‘service' and would attract ST liability is answered in negative: AAR

Application disposed of

GUEST COLUMN

Startup India, Standup India

ST se GST tak

Valuation of joint development projects - Confusion galore

MIXED BUZZ

ACC clears several key Appointments (See 'Mixed Buzz')

TIOL Notification

Notification No : 34

Amendment in para 2.05 (c) of Foreign Trade Policy (2015-20)

Notification No : 16

Tariff Value of gold goes up but goes down for silver & RBD Palmolein

Notification No : 4

Anti-dumping Notification No 133/2008 amended

Order No : 9

CBDT issues posting / addl charge order of Principal CCITs / CCITs

Order No : 10

CBDT promotes Akhilesh Ranjan as CCIT; to look after charge of FT & TR-I

FEMA Notification No :10(R)/2015-RB

Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015

FEMA Notification No :7(R)/2015-RB

Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015