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Content at Glance :-

1.0 News & Updates

1. Reforms have been slow because of unions, Oppn: Bandaru Dattatreya Indiaseeks bids for oil, gas fields in first auction since 2010 India Inc to govt: Focuson GST, ease of doing biz

2. In bid to go for the jugular on GST, BJP woos Amma3. GST to test Modi govt's legislative skills4. Focus On Political Consensus For GST: Industry To Government5. Rajya Sabha will have the numbers for BJP to pass the GST Bill.6. Passage of key reform Bills could act as trigger for markets: Citi7. PM hopeful about passage of GST bill this year8. CAIT urges India Inc to push for GST passage9. Govt to push GST bill on 1st day of monsoon session10. Govt plans GST roll-out from April 201711. GST legislation likely to be passed in next session: Official12. ‘GST will help in removing distortions in agri market’13. Have GST numbers in Rajya Sabha: Government14. Government has the numbers to pass GST bill: M. Venkaiah Naidu15. PM hopeful about passage of GST bill this year16. Hopeful that GST Bill will be passed in monsoon session: Rajeev Pratap Rudy17. GST: Jaitley appeals to Left, Congress18. Impact of GST on Indian Economy19. The GST bill and a Congress-mukt Bharat — Venkaiah Naidu reveals all to

NewsX20. RSS against current GST Bill: Babbar21. ‘BJP not serious about implementing GST’

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2.0 Case Laws2.1 Case Laws related to Excise

Sr.No. Relevant Section Case Name Issue

1 Rule 18 of CentralExcise Rules 2002read with Section11B of CentralExcise Act 1944

Gravita India Ltd.v.Union of India

Rebate of Duty

2 Section 11A readwith Section 11ACofCentral Excise Act1944

Steel Authority of India Ltd.v.Commissioner of Central Excise, Raipur

Invocation ofextended period

3 Section 4 of CentralExcise Act

Commissioner of Central Excise, Indorev.Kriti Industries (India) Ltd.

Valuation

4 Rule 6 read withRule 2(d) and Rule2 (e ) of CENVATCredit Rules 2004

Commissioner of Central Excise, Indorev.Kriti Industries (India) Ltd.

Exempted & DutiableGoods

5 Rule 2(l) read withRule 3 of CENVATCredit Rules 2004

Maharashtra Cricket Associationv.Commissioner of Central Excise, Pune-III

Input Service

6 Section 14 ofCentral Excise Act1944

Sudhir Kumar Tripathiv.Commissioner of Central Excise &Service Tax

Summons

7 Section 11A ofCentral Excise Act1944

Premier Heavy Engineering Corporationv.Commissioner of Central Excise

Recovery

8 Section 35C ofCentral Excise Act1944

Premier Heavy Engineering Corporationv.Commissioner of Central Excise

Appeals

9 Section 35D ofCentral Excise Act1944

Simplex Infrastructures Ltd.v.Union of India

Appeals

10 Section 11B ofCentral Excise Act1944

Chambal Fertilizers & Chemicals Ltd.v.Commissioner of Central Excise, Jaipur-I

Refund

11 Section 35R ofCentral Excise Act1944

Commissioner of Central Excise andCustomsv.Morvi Vegetable Products Ltd.

Appeals

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2.2 Case Laws related to Service Tax

Sr.No. Relevant Statute Case Name Issue

1 Section 93 ofFinance Act 1994

Repro India Ltd.v.Commissioner of Central Excise

Exemptions

2 Rule 5 read withSection 11B of theCentral Excise Act1944 of CenvatCredit Rules 2004

Indagov.Commissioner of Service Tax, Pune

Cenvat Credit-Refund

3 Section 85 ofFinance Act 1994

Indagov.Commissioner of Service Tax, Pune

Appeals

4 Section 65(65) readwith Section 65(19)of Finance Act1994

Piem Hotels Ltd.v.Commissioner of Central Excise

Taxable Services

5 Rule 2(I) read withRule 5 of CenvatCredit Rules 2004

Principal Commissioner of Service Taxv.Shell Technology India (P.) Ltd.

Input Credit

6 Rule 2(I) of CenvatCredit Rules 2004

Steel Strips Wheels Ltd.v.Commissioner of Central Excise,Chandigarh

Input Credit

7 Section 107 ofFinance Act 2013

Commissioner of Customs & CentralExcise, Wardhav.Cityland Associates

ST VCES 2013

8 Section 65B(44) ofFinance Act 1994

Franco Indian Pharmaceutical (P.) Ltd.v.Commissioner of Service-Tax, Mumbai

Exclusion of servicesprovided byemployee toemployer

9 Section 65(12) readwith Section 66Aand Section 75 ofFinance Act 1994

Gitanjali Gems Ltd.v.Commissioner of Service Tax, Mumbai-I

Taxable Services

10 Section 65(16) ofFinance Act 1994

Commissioner of Service Tax, Delhiv.Zee Turner Ltd.

Taxable Services

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2.3 Case Laws related to Customs

Sr.No. Relevant Statute Case Name Issue

1 Section 112 readwith Section 2(33),104, 111 and 135 ofCustoms Act 1962

Gopal Sahav.Union of India

Penalty

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1.0 News & Updates

1. Reforms have been slow because of unions,Oppn: Bandaru Dattatreya India seeks bidsfor oil, gas fields in first auction since 2010India Inc to govt: Focus on GST, ease ofdoing biz

Building political consensus for the goods andservices tax(GST) Bill and sustaining the momentumon the ease of doing business should be thegovernment's focus in its third year in office,industry leaders said on Monday as the NarendraModi government nears its second anniversary onMay 26.

Implementation of GST is expected to increase thegross domestic product (GDP) of the country byabout 1.5 per cent.

Industry leaders had complained on numerousoccasions in the past on the hold-up in passingtheGST Bill in Parliament, which they have blamedon politicking between the ruling party and theprincipal opposition party, the Congress, whichwants the GST rate to be a part of the constitutionalamendment. Foreign investors, too, have statedconcern over the fate of the GST Bill. Minister ofstate for Finance, Jayant Sinha, however, hadrecently said the GST bill would be passed in theupcoming Monsoon session of Parliament.

However, the government's focus on ease of doingbusiness and incentivising new entrepreneurshipapart from its focus on the new economy of start-ups got support from industry.

"We are optimistic that India's ease of doingbusiness ranking can be among the top 50 within thenext two years," said Chandrajit Banerjee, director-general of CII.

India ranks 130 out of 189 countries in ease of doingbusiness, according to the World Bank's DoingBusiness Report 2016.

Industry was also hopeful about the generalcondition of the Indian economy. "Indian economyhas improved and is more stable than it was twoyears ago. This reflects sound and strategicmacroeconomic management to tackle inflation,keep the fiscal deficit on the target path, and curbvolatility," said CII President Naushad Forbes.

On the international front, the government's foreignpolicy agenda has been in tune with economic

requirements, said Harshavardhan Neotia,president of Ficci .

A slump in global commodity prices, coupled with aslowdown in China and slow economic revival indeveloped economies have resulted in Indianexports going down for the 17th straight month inApril.

The government's rural and infrastructure focus inparticular was also commended by industry.Economists have pinned their hope of fast economicrevival on the back of increasing rural demand. Thecommitment to double farm income in five years hasbeen highlighted in this regard.

Rajiv Memani, country managing partner, EY, saidthe finance ministry has in the past two years takenseveral measures to simplify and rationalise the taxregime and improve the dispute resolutionmechanisms.http://www.business-standard.com/article/economy-policy/india-inc-to-govt-focus-on-gst-ease-of-doing-biz-116052400037_1.html

2. In bid to go for the jugular on GST, BJPwoos Amma

In a house of 245, the government will require 165votes for a two-third majority since GST is aconstitutional amendment.

The Modi government is set to complete two yearsin office close on the heels of its electoral success inAssam. While it is busy celebrating and listing outits successes, it is also number-crunching for acrucial bill, the GST (Goods and Services Tax).

NDA CONFIDENT OF CLEARING GSTFor the first time, the government believes it is closeto passing the bill in the Upper House in theupcoming session. Fifty-three members of the RajyaSabha are set to retire before the Monsoon sessionand the government seems sure the changedequations in the house will help in the passage ofthe bill.

"We are confident. GST will be approved in the nextsession of Parliament," said Parliamentary AffairsMinister Venkaiah Naidu during his press briefingtoday.

Naidu added, "One madam has given the greensignal from Kolkata, hope the other madam will alsodo the same." The other madam refers to TamilNadu Chief Minister J Jayalalitha.

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AMMA MORE POWERFUL THAN BEFOREThe state has been opposed to GST. In fact, it wantsto levy a tax over and above GST on tobacco andtobacco products. Once GST Bill is passed, only theCentre will have the power to do so.After her thumping victory in the recentlyconcluded assembly elections, Amma has becomemore powerful than before. At present, theAIADMK has 12 members in the Rajya Sabha. Alongwith Congress' 64, the two are likely to create asituation for the government where the bill may justscrape through if there is a demand for division ofvotes.

In a house of 245, the government will require 165votes for a two-third majority since GST is aconstitutional amendment. Even as old membersretire and new enter, AIADMK is likely to remain astrong voice.

Though the TMC, BSP, SP and JD(U) have alreadypromised to support the GST bill, the NDA is still inminority in the Rajya Sabha and will need manyparties on board. The government has been unableto get Congress, who is refusing to put an 18 percent cap clause in the bill.

Moreover, the Congress has taken personally the'personal attack' on the Gandhis in the Agusta scamin Parliament. According to a senior Congressleader, "a constitutional amendment can't be passedin din and if the Congress continues to protest therewill be no order in the house to pass the bill."

In this scenario, the government is unlikely to try fora consensus. Instead, it is likely to press for division,where every other party will count, including theAIADMK. The Centre has pledged 'all support' tothe J Jayalalitha government, with the hope thatAmma will be kind to Modi. But will she be?http://indiatoday.intoday.in/story/in-bid-to-go-for-the-jugular-on-gst-bjp-woos-amma/1/676086.html

3. GST to test Modi govt's legislative skills

On the face of it, the Narendra Modi-led NationalDemocratic Alliance (NDA) government's trackrecord on its legislative performance over the pasttwo years appears to shine, compared to the firsttwo years of the previous two regimes of the UnitedProgressive Alliance (UPA) under ManmohanSingh. But, the real test of UPA's legislative skillswill come over the next 12 months as and whenParliament takes up the legislation related to thegoods and services tax, says legal experts.

The Modi government could steer throughParliament 59 out of 75 Bills introduced over thepast two years (excluding finance and appropriationBills), giving it a strike rate of 78.6 per cent.Although UPA-I passed 67 Bills in the first twoyears, the Manmohan Singh-led governmentintroduced 116 legislation to Parliament during thatperiod. That gave it a success rate of 57.7 per cent. Inits second tenure, the UPA introduced 100 Bills inParliament in the first two years. But, only 47 ofthese Bills were passed.

When it comes to repealing obsolete and redundantlaws, the Modi government fared better. Over thepast one year, Parliament passed four Bills to repealobsolete and redundant central laws. In all, theseBills repealed 1,179 laws.

However, legal experts have a mixed reaction to thegovernment's track record in managing itslegislative business. "The government has donefairly well on the legislative front in the past twoyears," says Debanshu Mukherjee, who heads thecorporate law financial regulation vertical at VidhiCentre for Legal Policy. The government has beensuccessful in enacting several important legislation,some of which are regarded part of 'structuralreforms', including the Bankruptcy Code, theAadhaar Act, the Commercial Courts Act, theamendment allowing 49 per cent foreign directinvestment in the insurance sector, and theamendments to the Arbitration Act. "Some of thesereforms have been long overdue," he added.http://www.business-standard.com/article/opinion/gst-to-test-modi-govt-s-legislative-skills-116052200767_1.html

4. Focus On Political Consensus For GST:Industry To Government

New Delhi: As the Narendra Modi governmentnears its second anniversary, industry leaders onMonday said focus should now be on buildingpolitical consensus for passage of the long-pendingGST (Goods and Services Tax) Bill and onexpediting the non-legislative reforms.

"Government needs to focus on building politicalconsensus so that the GST Bill is passed in RajyaSabha. Goods and Services Tax (GST) is a landmarkreform which will straight away add upto 1.5 percent to the GDP," Godrej Group chairman AdiGodrej said.

"Indian economy is definitely much improved andmore stable than it was two years ago. This reflects

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sound and strategic macroeconomic management totackle inflation, keep the fiscal deficit on the targetpath, and curb volatility," Naushad Forbes,president of industry body CII, said in a statement.

"In the near term, government can look atexpediting non-legislative and executive actionswhich could help in further reducing the proceduralimpediments to growth across sectors," saidHarshvardhan Neotia, president of another industrybody Ficci.

Commending the government for its focus on easeof doing business, incentivizing newentrepreneurship, facilitating submission of returnsand making administrative processes moretransparent, CII director-general Chandrajit Banerjeesaid, "We are optimistic that India's ease of doingbusiness ranking can rise to among the top 50 fromthe current 130 within the next two years withsustained micro-level actions."

India ranks 130 out of 189 countries in the ease ofdoing business, according to the World Bank'sDoing Business Report 2016.

Rajiv Memani, country managing partner, Ernst andYoung, said the Finance Ministry in the past twoyears has taken several measures to simplify andrationalise the tax regime and improve the disputeresolution mechanisms.

"The government has targeted infrastructureconstruction through public investment includingroads and highways, railways, and urban facilities.Public-private-partnership models in infrastructureand new financing routes have been initiated.Infrastructure is the new sunrise sector in Indiatoday," Bharti Enterprises vice-chairman Rakesh BMittal said.http://profit.ndtv.com/news/economy/article-focus-on-political-consensus-for-gst-industry-to-government-1409284

5. Rajya Sabha will have the numbers for BJPto pass the GST Bill.

When the house meets for the monsoon session,only 68 from Cong and Left will be opposing the Billas new members will be joining. This will make iteasy for the Centre to pass the GST Bill.

The Goods and Services Tax Bill, which has beenpassed in the Lok Sabha, is yet to be given the all-clear in the Rajya Sabha.

Reporting on the developments, CNBC-TV18'sLatha Venkatesh clarified that the GST Bill is anamendment. Unlike the Lok Sabha, the BJP doesn'thave a majority in the upper house.

Rajya Sabha has 244 members. As of January, therewere 82 people opposing the Bill. Congress and theLeft numbered 82, which is why the Bill wasn'tpassed.

About one-thirds of Rajya Saba members seek re-election every two years. From April to August,about 57 new members will come in. When thehouse meets for the monsoon session, only 68 fromCong and Left will be opposing. Therefore, if the Billis passed in the monsoon session, it will be passed.http://www.moneycontrol.com/news/business/rajya-sabha-will-havenumbers-for-bjp-to-passgst-bill_6709361.html

6. Passage of key reform Bills could act astrigger for markets: Citi

Investor sentiment towards the Indian economy isimproving but markets are now looking at thepassage of key reform Bills like the Goods andServices Tax (GST) to act as "new catalysts", says aCitigroup report.

Expectations on structural reforms however remainlow and "could be a positive catalyst if GST getspassed", it said.

According to the global financial services major,both equity and fixed income investors areportraying a constructive outlook for India, but arewaiting for the next 'catalyst' for fresh inflows.

"Positioning on India still remains heavy andrelative valuations do not appear to be cheap. This ispossibly leading to a lack of substantial freshinflows as the markets await new catalysts,"Citigroup said in a research note.

The BJP-led NDA government assumed office onMay 26, 2014 with a thumping majority in the LokSabha, but some key bills, including the one on GST,have been stuck in Rajya Sabha due to oppositionfrom some other parties, mainly Congress.

As per the report, foreign equity as well as fixedincome investors believe that the Indian economy isrelatively attractive than other emerging marketeconomies, as it provides better macro stability.Some investors were also enthusiastic about theprospects of a cyclical recovery.

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Though investors are on a cautious mode but withbetter monsoon forecasts, rural consumption islikely to revive.

Moreover, urban consumption is expected to get aboost post the 7th Pay Commission implementation.

"There was some skepticism that without substantialgrowth in jobs and wages, consumption may not besustained only by strong retail credit growth," thereport noted.

Investors held divergence views on inflation andrate cut and while one more 25 bps rate cut seems tobe priced in, expectations on future rate cuts variedwidely.

"Mixed views on inflation and rates as investorswait and watch for the monsoon outcome," thereport said.

Earlier in April, the Reserve Bank of India (RBI)reduced its policy rate by 0.25 per cent to 6.5 percent. While this was the first rate cut after a gap ofsix months, RBI has lowered its rate by 1.5 per centcumulatively since January 2015.http://www.business-standard.com/article/markets/passage-of-key-reform-bills-could-act-as-trigger-for-markets-citi-116052301797_1.html

7. PM hopeful about passage of GST bill thisyear

Modi said any efforts to amend this law at centrallevel are "over now" and it is up to individual statesto pursue any changes.

Washington: Expecting the long-pending GST bill toget passed this year, Prime Minister Narendra Modihas said any efforts to amend this law at centrallevel are "over now" and it is up to individual statesto pursue any changes. Modi also hit out at criticswho accuse him of failing to pursue "big bang"measures to revamp the Indian economy, saying hisgovernment has undertaken maximum reformssince coming to power in May 2014.

He said that many of the changes he has put in placewould have been regarded by previousadministrations as difficult to implement, but nowthat he has done them, to his critics they no longerqualify as "big bang".

"I have actually undertaken the maximum reforms,"Modi told The Wall Street Journal in an interviewahead of hisvisit to the US next month at theinvitation of President Barack Obama. Respondingto a question on Goods and Services Tax (GST) bill,Modi said he expects the legislation to pass thisyear.

He said the efforts to amend the law at the federallevel were "over now" and it is now up to individualstates to pursue changes. The GST bill, which hasbeen approved by Lok Sabha, is pending in RajyaSabha because of stiff resistance by Congress, thelargest party in the House.

Government has been insisting that most of theparties, except Congress, are in favour of GST,which will bring about a uniform indirect taxationregime in the country.

Modi said he would look to states to furtherliberalise the country's rigid labour laws, the dailyreported. "Labour reform should not just mean inthe interest of industry," he said adding, "Labourreform should also be in the interest of thelabourer."

"When I came to the government, I used to sit downwith all the experts and ask them to define for mewhat is the 'big bang' for them," he said, adding"Nobody could tell me." But at the same time he wasquick to add that there was a need to do more.

"I have an enormous task ahead for myself," Modisaid in Hindi. The Prime Minister said after comingto power his government had opened up more ofthe economy to foreign investment and madechanges to curb corruption, fill gaps in ruralinfrastructure and make it easier to do business.

The Prime Minister also underscored the importanceof public sector undertakings in the country. "In anydeveloping country in the world, both the publicsector and the private sector have a very importantrole to play. You can't suddenly get rid of the publicsector, nor should you," Modi said.http://www.deccanchronicle.com/business/in-other-news/260516/pm-hopeful-about-passage-of-gst-bill-this-year.html

8. CAIT urges India Inc to push for GSTpassage

India’s premier traders body has criticised IndiaInc’s suggestion that the government should focuson political consensus for the passage of Goods and

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Service Tax (GST), saying it would be better if theindustry asks Congress to do the same.

“It would have been much better if industry leadersasked the Congress and other political partiesopposed to GST, to extend their support to thegovernment in passing legislation in the RajyaSabha,” said Confederation of All India Traders(CAIT).

Reviewing the two-year performance of PrimeMinister Narendra Modi government, the industryhad suggested the government to work for politicalconsensus on GST so that the bill could be passed inthe Monsoon session.

“It is a well-known fact that since last two years, thegovernment has put all efforts in building consensuson the complex issue but adamant attitude of theCongress and not allowing discussion on the GSTBill in Rajya Sabha has proved the biggestimpediment in passing the legislation,” CAITSecretary General Praveen Khandelwal said.

B C Bhartia, National President of CAIT, suggestedthat both trade and industry organisation shouldform a joint coalition to take this issue forward withall political parties and impressing upon them topave smooth passage for GST Bill in the next sessionof Parliament so that by next fiscal year, the GSTcould be implemented in the country.

“However, once the bill is passed in Parliament, theconcerns of trade and industry could be raised withthe government in order to have a simplified andrationalised GST tax structure in the country toensure better self compliance and widening of taxbase,” he said.http://www.deccanherald.com/content/548456/cait-urges-india-inc-push.html

9. Govt to push GST bill on 1st day ofmonsoon session

NEW DELHI: The government is set to aggressivelypush the Constitution amendment bill forimplementing goods and services tax (GST) in themonsoon session of Parliament as it looks to roll outthe long-awaited tax reform from April.

"We will look to introduce the bill on the first dayitself and ask for a vote," said a senior governmentfunctionary, reflecting the assessment in rulingcircles that Congress, sobered by fresh electoralsetbacks, may not wish to play deal-breaker and risk

isolation on the legislation which has the support ofother non-BJP players.

"All parties other than Congress are supporting GSTand even Congress chief ministers are in favour ofit," said a top government source, adding that theCentre was confident of successfully pushing thelegislation through Rajya Sabha. Encouraged byBJP's victory in Assam, the government is set to givethe GST bill a determined shot in the monsoonsession.

"Ideally, we would like to pass it with the support ofCongress. It is a Constitution amendment bill and soit is desirable that all are on board. However, wedon't mind doing it without them if it comes tothat," a source told TOI.http://timesofindia.indiatimes.com/india/Govt-to-push-GST-bill-on-1st-day-of-monsoon-session/articleshow/52442233.cms

10. Govt plans GST roll-out from April 2017

The Union government is confident it would be ableto garner an adequate number of votes in the RajyaSabha to ensure the passage of the Constitutionamendment Bill on goods and services tax (GST)during the forthcoming monsoon session ofParliament. Based on this, it has already begunworking on a timeline that envisages roll-out of theGST regime from April 2017.Top government sources told Business Standardthat all political parties other than the Congress andthe All India Anna Dravida Munnetra Kazhagam(AIADMK) have supported the GST Bill. AIADMKleaders are understood to have indicated that theirmembers in the Rajya Sabha would not come in theway of the passage of the Constitution amendmentBill on GST. The understanding is that AIADMKmembers in the Upper House would abstain at thetime of voting. This is expected to help thegovernment as the Congress, whose strength isalready reduced, would be further isolated, pavingthe way for the passage of the Bill.According to the current government thinking, theConstitution amendment Bill is likely to be taken upfor discussion and voting in the Rajya Sabha duringthe very first week of the monsoon session. This willgive adequate time for the Bill to be sent to states, sothat at least half of them could approve it. Once thatis obtained, the government plans to introduce twoGST Bills, whose passage should not be a problemas these would be money Bills, for which the RajyaSabha's approval is not mandatory. These Billscould be approved by Parliament either in the

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winter session or in the first half of the Budgetsession next year.

The government's confidence on rolling out GSTfrom April also stems from its internal assessmentthat most chief ministers are in favour of the new taxregime that would introduce uniform rates andimprove the ease of doing business.http://www.business-standard.com/article/economy-policy/govt-plans-gst-roll-out-from-april-2017-116052600047_1.html

11. GST legislation likely to be passed in nextsession: Official

"The government of the day is making all out effortsand trying its best to create consensus for thesmooth passage of GST and the upper house ofParliament would be able to pass the legislation inthe forthcoming session of Parliament", Ajay Tyagi,Additional Secretary in Finance Ministry said at anevent here.

Government is making all efforts and trying its bestto create consensus for smooth passage of the Goodsand Services Tax (GST) bill, a senior FinanceMinistry official said.

"The government of the day is making all out effortsand trying its best to create consensus for thesmooth passage of GST and the upper house ofParliament would be able to pass the legislation inthe forthcoming session of Parliament", Ajay Tyagi,Additional Secretary in Finance Ministry said at anevent here.

He was addressing a seminar on NationalAgriculture Market, a release by PHD Chambersaid.

Tyagi further pointed out that bringing aboutuniformity in taxation and other areas of economicengagement is one of the prime objectives of theModi government, the release said.

With the passage of much talked about GST, thedistortions in goods and services would disappear,he said.

"It would also make sure that multiple taxationsincluding variant mandi taxes be rationalised afterGST is enacted as it would also facilitate to bringabout a placement of single national agriculturemarket in the country to enable farmers to obtain themaximum gains of their produce," he added.

Executive Director, Commodity Derivatives MarketRegulation, Sebi S K Mohanty said nationalagriculture market for which the government hasmade a beginning would be conclusive in duecourse of time.

Efforts are afoot to integrate over 500 mandis in thecountry through electronic mode, he said.http://www.moneycontrol.com/news/economy/gst-legislation-likely-to-be-passednext-session-official_6748341.html

12. ‘GST will help in removing distortions inagri market’

NEW DELHI, MAY 25:The Centre is making efforts to create consensus forthe smooth passage of the Goods and Services Tax(GST) in Rajya Sabha in the forthcoming session ofParliament which would create a uniform marketfor all goods and services including agriculturecommodities, a senior government official has said.

With this move, the government would be able tocreate a uniform market for all goods and services inthe country and the agriculture sector – wheremultiple distortions exist – would gain despite itbeing a State subject, Ajay Tyagi, AdditionalSecretary, Finance Ministry said at a seminar onNational Agriculture Market (NAM) organised bythe PHD Chamber of Commerce & Industry onWednesday.

Tyagi pointed out that the agriculture market in thecountry was suffering from lack of uniformity notonly between States but also within States at the‘tehsil’ level.

“Having uniformity within States is a big challengeas a lot of vested interests are at play in agriculturemandis in various ‘tehsils’. There is a need foruniformity within a State and a single license fee atmandis,” he said.

Agri e-marketThe e-NAM, an online portal for trading inagriculture produce launched in April, seeks tocreate a market for agriculture goods where pricesare uniformly discovered, there is standardisation ofproducts and where farmers get their due, theAdditional Secretary said, adding that there shouldbe more effort to disseminate information on this insemi-urban are rural areas.

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“People need to be told why is the NAM beneficialfor everyone including farmers, consumers, spotmarkets and financial markets,” he said.

The e-NAM will initially enable farmers in eightStates – Uttar Pradesh, Madhya Pradesh, Jharkhand,Himachal Pradesh, Gujarat, Telangana, Rajasthanand Haryana – to sell online 25 commodities in 21wholesale mandis.

The commodities that will initially be sold onlineinclude chana (black gram), castorseed, paddy,wheat, maize, turmeric, onion, mustard, mahuaflower, tamarind and shelling pea.http://www.thehindubusinessline.com/economy/agri-business/gst-will-help-in-removing-distortions-in-agri-market/article8646320.ece

13. Have GST numbers in Rajya Sabha:Government

NEW DELHI: Parliamentary Affairs Minister MVenkaiah Naidu underlined that despite oppositionattempts to disrupt the Rajya Sabha functioning,legislative work in Parliament has seen a remarkablejump since the NDA came to power and claimedthat the Narendra Modi government now has thenumbers to get the Goods and Services Tax (GST)Bill passed.

In a press interaction to mark two years of NDArule, Naidu said, "Finance Minister has over the lastone year clarified the government’s .

NDA strength in the Rajya Sabha will increase onlymarginally by July this year but the dwindlingnumbers of the Congress has given the governmenthope of getting support of regional parties to get theGSTn Bill passed.

Finance Minister Arun Jaitley has categorically saidthat the government is likely to bring the GST Billfor discussion and passage in the Rajya Sabha in themonsoon session even if the Congress is still not onboard.

The minister expressed concern over 44 pendingBills in the Rajya Sabha- where the ruling NDA is ina minority- and said he would like to take up thisissue with the Vice President and leaders of otherparties to ensure more coordination in passing oflegislation in both Houses. "From now on, anydisruptions and delaying tactics will invite a price. Iam sure all political parties will read the writing on

the wall and enable effective functioning of bothHouses of Parliament," he said.

Interestingly, he mentioned that there have beensocial media campaigns to demand effectivefunctioning of Parliament.

However, after frequent disruptions in the earliersessions, Naidu said both Houses have now evolveda "new equilibrium" under which while theopposition raises issues with all its might, legislativebusiness also goes on. "I hope this balance willcontinue to stay in the days ahead," he said.

In the last two years, 101 Bills were introduced inboth Houses (96 in Lok Sabha and five in the RajyaSabha). But while Lok Sabha has averaged passingof 48 Bills per year in the last two years- from theearlier figures of three per year for the last ten years-Rajya Sabha cleared an average of 41 Bills per yearin this time, which is a decline of 4 Bills per year.

http://economictimes.indiatimes.com/news/politics-and-nation/have-gst-numbers-in-rajya-sabha-government/articleshow/52422616.cms

14. Government has the numbers to pass GSTbill: M. Venkaiah Naidu

Parliamentary Affairs Minister M. Venkaiah Naiduon Tuesday said that the government has thenumbers to secure passage of the Goods andServices Tax (GST) bill, which is currently stuck inthe Rajya Sabha.

Replying to a question on the feasibility of change ofcomposition of Rajya Sabha and passage of GST Bill,he said: "Finance Minister (Arun Jaitley) has overthe last one year clarified the government's positionon the bill and the government has the numbers."Jaitley had earlier stated that if the Congress doesnot agree to support the GST, the government mayseek its passage by a vote in the parliament's nextsession.

The government on Tuesday expressed the hopethat parliament would continue to functioneffectively with growing demand from the peoplefor the same as evident in recent social mediacampaigns.

Speaking to media persons on the occasion of twoyears of the Narendra Modi government, Naidusaid: "After some avoidable disruptions of

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parliament and particularly, during the monsoonand winter sessions last year, both the houses haveevolved a new equilibrium i.e balance.

"Opposition is raising some issues with all the mightthey can muster but legislative work is going on. Ihope this balance will continue to stay in the daysahead."

He said that during the last two years, number ofsittings of both the houses, the bills introduced andbills passed by the Lok Sabha have increased incomparison to that of previous 10 years.Referring to 44 bills pending in Rajya Sabha, theminister said that he would like to take up thismatter with the upper house's chairman and leadersof other parties so that there could be moresynchrony in the transaction of legislative businessby both the houses.

Elaborating on improvements over the last twoyears, Naidu said: "101 bills were introduced in boththe Houses of Parliament - 96 in Lok Sabha and 5 inRajya Sabha. Lok Sabha passed 96 bills ie 48 per yearmarking an improvement of three bills per year overthe previous ten years. Rajya Sabah cleared 83 Billsie over 41 per year marking a decline of four billsper year."

Lok Sabha held a total of 149 sittings, or about 75per year, while Rajya Sabha held 143 sittings, or 71per year, marking an increase of four sittings peryear in both cases over the previous ten years.

"From now on, any disruptions and delaying tacticswill invite a price. I am sure all political parties willread the writing on the wall and enable effectivefunctioning of both the Houses of parliament," saidNaidu.

http://www.businesstoday.in/current/economy-politics/government-has-the-numbers-to-pass-gst-bill/story/232972.html

15. PM hopeful about passage of GST bill thisyear

WASHINGTON, MAY 26: Expecting the long-pending GST bill to get passed this year, PrimeMinister Narendra Modi has said any efforts toamend this law at the central level are “over now”and it is up to individual states to pursue anychanges.

Modi also hit out at critics who accuse him of failingto pursue “big bang” measures to revamp the

Indian economy, saying his government hasundertaken maximum reforms since coming topower in May 2014.

He said many of the changes he has put in placewould have been regarded by previousadministrations as difficult to implement, but nowthat he has done them, to his critics they no longerqualify as “big bang”.

“I have actually undertaken the maximum reforms,”Modi told The Wall Street Journal in an interviewahead of his visit to the US next month at theinvitation of President Barack Obama.

Responding to a question on Goods and ServicesTax (GST) bill, Modi said he expects the legislationto pass this year.

He said the efforts to amend the law at the federallevel were “over now” and it is now up toindividual states to pursue changes.

The GST bill, which has been approved by the LokSabha, is pending in the Rajya Sabha because of stiffresistance from the Congress, the largest party in theHouse.

Government has been insisting that most of theparties, except Congress, are in favour of GST,which will bring about a uniform indirect taxationregime in the country.

Modi said he would look to states to furtherliberalise the country’s rigid labour laws, the dailyreported.

“Labour reform should not just mean in the interestof industry,” he said adding, “Labour reform shouldalso be in the interest of the labourer.”

“When I came to the government, I used to sit downwith all the experts and ask them to define for mewhat is ‘big bang’ for them,” he said, adding“Nobody could tell me.”

But at the same time he was quick to add that therewas a need to do more.

“I have an enormous task ahead for myself,” Modisaid in Hindi.

The Prime Minister said after coming to power hisgovernment had opened up more of the economy toforeign investment and made changes to curb

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corruption, fill gaps in rural infrastructure and makeit easier to do business.

The Prime Minister also underscored the importanceof public sector undertakings in the country.

“In any developing country in the world, both thepublic sector and the private sector have a veryimportant role to play. You can’t suddenly get rid ofthe public sector, nor should you,” Modi said.http://www.thehindubusinessline.com/news/pm-hopeful-about-passage-of-gst-bill-this-year/article8649398.ece

16. Hopeful that GST Bill will be passed inmonsoon session: Rajeev Pratap Rudy

Union Minister Rajiv Pratap Rudy today said seniorUnion Ministers have been negotiating withCongress leadership on the GST Bill and expressed...Minister Rajiv Pratap Rudy today said senior UnionMinisters have been negotiating with Congressleadership on the GST Bill and expressed the hopethat the proposed law will be passed in themonsoon session of Parliament.

“There were demands to make improvements onsome parameters. We have rectified them and thesenior leadership, whether it is Venkaiah Naidu orArun Jaitley, is regularly negotiating with theCongress party,” he told reporters here.

Rajeev Pratap Rudy said, “After the setback in WestBengal, Kerala and Assam, I don’t think Congress’obstructionist policy is giving them any headstartacross the country.”

Earlier, the government had insisted that most of theparties, except the Congress, were in favour of GSTwhich would bring about a uniform indirecttaxation regime in the country.

Rajeev Pratap Rudy said the bill has been approvedby Lok Sabha but was pending in Rajya Sabhabecause of stiff resistance by the Congress.

“We are very hopeful that the GST Bill will bepassed in the monsoon session of Parliament,” hesaid, adding the entire country stands to benefitonce the Goods and Services Tax (GST) Bill ispassed.http://www.financialexpress.com/article/economy/hopeful-that-gst-bill-will-be-passed-in-monsoon-session-rajeev-pratap-rudy/267777/

17. GST: Jaitley appeals to Left, Congress

Union Finance Minister Arun Jaitley, on Friday,appealed to the Left and Congress to helpimplement the Goods and Services Tax (GST).Addressing a press conference here, soon afterattending the swearing-in ceremony of the MamataBanerjee-led Trinamool Congress government for asecond term, Jaitley said: “(Imposition of) GST is nota BJP issue” but a national issue. It will helpconsuming States like West Bengal, Odisha andothers.” Trinamool has already extended support toGST. The State Finance Minister Amit Mitra is thechairman of the empowered committee of Statefinance ministers on GST.http://www.thehindubusinessline.com/economy/policy/gst-jaitley-appeals-to-left-congress/article8656453.ece

18. Impact of GST on Indian Economy

In recent times, India has been abuzz with criticismon its archaic taxation structure and there is push fora simpler, flat tax structure that will potentially doaway with the complicated policy. As the next levelpolicy reform in indirect taxation, Goods andservices tax (GST) has taken a centre stage in thisrespect and is hoped to iron out the wrinkles in theexisting tax system. Tax policies play an importantrole on the economy through their impact on bothefficiency & equity and its high time India braceditself for a relook at the current status.

Historically, India has relied too much on indirecttaxation because of political compulsions, anagrarian economy, low income levels and lack ofinfrastructure to track personal income. In order tosimplify and rationalize indirect tax structures,government of India attempted various tax policyreforms at different points of time. While VAT was awelcome change during 2005, over the years, peoplehave identified shortcomings in the structure whilelevying VAT both at Central level and State level.Also, CENVAT has the limitation of non-inclusionof several taxes such as VAT, ACD, surcharge etc. Inthe present state-level VAT scheme, there is acascading effect on account of CENVAT element.Lastly, there is lack of integration of VAT on goodswith tax on services at the state level and hence thecascading effect of service tax.

To address such issues cited above, acomprehensive tax reform (GST is a part) having anextensive base to kick-start the applicability of anefficient and harmonized consumption tax systemhas been proposed. While the lower house hascleared the passage of the bill, it’s still pending inthe upper house. GST has been commonly accepted

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around the world and more than 140 countries haveacknowledged the same which ranges between 15%-20% in most of the countries. GST is a value addedtax which will be levied on both goods and services(except for a list of exempted goods and services) atboth the centre and state level (Central GST andState GST respectively). This is going to be onesingle tax which will be levied on the product orservice which is being sold. In effect, multiple taxeslike CENVAT, central sales tax, state sales tax, octroietc. will be replaced by GST. This comprehensive taxwill cover all stages during production to sale andwill be levied only on the value added at each stageof the process. What will GST achieve as a policyreform measure?

Economic union of India: The debate about India asone republic union versus a federation of states willbe put to rest. Goods can easily move across thecountry with diffused state boundaries and that willencourage businesses to focus on pan-Indiaoperations.

Simpler tax structure: By merging all levies ongoods and services into one, GST acquires a verysimple and transparent character with lesspaperwork and reduction in accountingcomplexities. A simple taxation regime can make themanufacturing sector more competitive and saveboth money and time.

Uniform tax regime: With only one or two tax ratesacross the supply chain as against multiple taxstructure at present, state specificadvantages/disadvantages are gone. This providesa fair play ground for all stakeholders and focus canbe brought in to efficiency rather than vantagepoints.

Greater tax revenues: A simpler tax structure canbring about greater compliance, thus increasing thenumber of tax payers and in turn tax revenues forthe government. By removing cascading effect,layers of taxes and simplifying structures, the GSTwould encourage compliance, which is alsoexpected to widen the tax base.

Competitive pricing: A cursory look at the retailprice of any product manufactured in India revealsthat the total tax component is roughly 25-30% ofthe cost of the product. GST will effectively meanthat the tax paid by the final consumer will comedown in most cases and will help in boostingconsumption, which is again beneficial tocompanies.

Push to exports: With fall in production cost indomestic market, the competitiveness of Indiangoods in international market will increase. Thisbodes well for exporters, who compete with globalmanufacturers which operate on very different coststructures.

Keeping all these potential benefits in account, astudy by the National Council of Applied EconomicResearch says that GST will boost India's GDPgrowth by anywhere around 0.9% to 1.7% andvirtually every media report cites expert opinion topotentially add up to 2% to India’s GDP.

However, there are sticky issues like taxation oninter-state services, stock transfers, integration offew central & state taxes etc. which need attentionbefore India makes a decisive move.

Closing Remarks:In terms of growth, price, currentaccount and budget balance, the macroeconomicimpact of a change to the introduction of the GSTwill be significant. With a burgeoning services sectorand a high economic growth trajectory that India isin today, a shift in income based tax to consumptionbased tax is going to provide substantial fillip tosource of revenue. Of course, there will be a shortlived limited price impact on the larger economywith introduction of GST. However, a larger impactis expected on the administrative compliance cost ofGST which is likely to increase tax revenue from the“parallel” or “black” economy. In an era where theadministration is treading cautiously on fiscal deficitmanagement, a complete failure to implement GSTwould result in surging deficit to around 4-4.2%during FY16-17 from 3.99% today. So the questionthat all of us should ponder over is how soon wecan bring in GST than whether we should.

DISCLAIMER: The views expressed are solely of theauthor and ETRetail.com do not necessarilysubscribe to it. ETRetail.com shall not be responsiblefor any damage caused to any person/organisationdirectly or indirectly.http://retail.economictimes.indiatimes.com/re-tales/impact-of-gst-on-indian-economy/1525

19. The GST bill and a Congress-mukt Bharat— Venkaiah Naidu reveals all to NewsX

New Delhi: Speaking to NewsX in an exclusiveinterview, Minister of Urban Development and ofParliamentary Affairs Venkaiah Naidu spoke aboutthe Bharatiya Janata Party's (BJP) two years of

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assuming power, its main opposition, and the roadahead for the GST bill.

The Minister of Urban Development said that it hefelt enthused by the response from people in the laststate assembly elections where BJP registered aresounding victory in Assam. Naidu remarked thatBJP was now occupying 46% of the country'sgeographical area and 35% of the total population,widely dominating the Congress party.

"We do not want a Congress-mukt Bharat sinceCongress is our main opposition," said Naidu, "Wejust want a Congress-Shashan-mukt Bharat."Asked about the passage for the GST bill (Goodsand Services Tax bill), Venkaiah Naidu said thatthey had personally visited Congress PresidentSonia Gandhi to negotiate a smooth passage for theGST. "The number of parliamentarians supportingthe GST bill now outnumbers the opponents of thebill," said the minister, who shared his optimismabout the GST bill in the upcoming monsoon sessionof the parliament.

The Minister of Parliamentary Affairs said the BJPwas focused more on delivering results to thepeople while all that the Opposition did was go tothe media and spread negative information aboutthe party. Naidu claimed that 44 bills were stuck inthe parliament and that the Opposition has to realisethat the government is working for the bettermentof the people.http://www.newsx.com/national/30074-the-gst-bill-and-a-congress-mukt-bharat-venkaiah-naidu-reveals-all-to-newsx

20. RSS against current GST Bill: Babbar

Tribune News Service Jammu, May 26:Daring the BJP-led NDA government to table Goodsand Services Tax (GST) Bill in the House, nationalspokesman of All India Congress Committee (AICC)Raj Babbar today said that this has not been donedue to pressure from the Rashtriya SwayamsevakSangh (RSS).

“The RSS is opposed to the present form of the GSTBill because it will serve only big business class byignoring rights of small businessmen and traders,”Babbar said while addressing a press conferencehere in connection with the party’s “Do Saal DeshBaadhal” campaign.“We have given three suggestions to the NDAgovernment to make this Bill comprehensive butnothing has been done in this regard,” Babbar said,adding that tax should not be more than 18 per cent

in the Bill. “As Chief Minister of Gujarat, NarendraModi had opposed GST Bill for nine years,” he said.Rating the two-year performance of the Modigovernment as completely disappointing, Babbarsaid that this regime had indulged in misleadingand misinformation campaign to befool the people.“This regime has failed on all fronts because exceptrolling out promises nothing has been done duringthe last two years,” he said. He added that the NDAgovernment had compromised the security of thecountry.

The Congress spokesman said that during the 2014Lok Sabha elections campaign, the BJP hadpromised to solve problems of refugees of J&K butnothing had been done. “Every section of society isfeeling cheated and betrayed by the BJP,” he said.“Not even a single promise made to the people ofJammu has been fulfilled so far.”

Referring to the National Institute of Technology(NIT), Srinagar, Babbar said that BJP’s pseudo-nationalism had been exposed during thecontroversy. “On the one hand, BJP has tried todivide countrymen in the name of ‘Bharat Mata KiJai’ slogan, on the other hand, party leadership hadbrazenly disowned students of NIT who had hoistednational flag,” he said.

Replying to another query, Babbar demanded strictaction against Bajrang Dal workers, who were foundgiving arms training.http://www.tribuneindia.com/news/jammu-kashmir/rss-against-current-gst-bill-babbar/242586.html

21. ‘BJP not serious about implementing GST’

Sensing opportunity after the Congress’ loss ofpolitical clout in the recent Assembly polls, the BJP-led Central government is making a fresh bid to getthe Constitutional amendment pertaining to theGoods and Services Tax (GST) passed. FinanceMinister Arun Jaitley said recently that most partiesbarring the Congress agree on the GST Bill. In anexclusive interview toBusinessLine, Congress MPand Leader of Opposition in the Rajya SabhaGhulam Nabi Azad asserts that it is, in fact, the BJPthat doesn’t want the crucial reform legislation to gothrough. Excerpts:

The Congress is steadily losing seats in the RajyaSabha. Are you going to continue with the kind ofintransigence you have so far displayed vis-à-vis theGST?

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The Congress is not against the GST. Weconceptualised and introduced this reform measure;we are the original architects of the Bill. For six longyears , it was the present Prime Minister, in hiscapacity as Chief Minister of Gujarat, who keptsaying that “GST nahin ayega (GST will not beallowed to come)”. We are relieved that good sensehas dawned on the BJP and that they are nowsteering the course of this Bill. Now, we, as aresponsible political party, want to ensure that acrucial legislation such as the GST is beneficial forindustry as well as the consumer.

We have been recommending mainly threeamendments: a cap on the GST rate at 18 per cent;inclusion of tobacco, electricity, alcohol and petrolunder the regime, and removal of 1 per centadditional tax over and above the GST rate. We alsowanted revenue for the states to be compensated.

To which part of these amendments would youattribute the term “intransigence”? The reality isthat ever since the BJP gained majority in the LokSabha, they have decided to ignore the views of theOpposition. In the spirit of majoritarianism, whichdrives the BJP, they seem to believe that just likethey issue a whip to their party MPs and they fall inline, the Opposition too should sign on the dottedline. India is still a democracy, isn’t it? We have aview, a serious and considered view, and we want itto be given due consideration and respect.

But the government has taken it seriously, acommittee was formed…

We are talking about cooperation and mutualrespect. These are not empty words. They toppledour government in Arunachal Pradesh just beforethe Budget Session. In the intervening period, theyattempted to bring our government in Uttarakhanddown. They conduct raids on our Chief Minister inHimachal Pradesh, slapped charges on our leaders,Chief Ministers. They try and demolish uspolitically, cut our feet and demand cooperation?This is not acceptable. Where is the spirit ofcooperation when those in power arm-twist theOpposition? Obviously, the BJP does not really wantto pass the GST when they are busy terrorising theOpposition.

Also, they have not learnt any lessons from history.The Janata government in 1977 convened a specialsession of Parliament and Indira Gandhi wasarrested. The Shah Commission carried on…Whathappened? The people brought Indiraji back with amajority. I was General Secretary of the Youth

Congress at the time. I have vivid memory of thatperiod. Persecuting the Opposition doesn’t help.

The perception is that the Congress is isolated in theRajya Sabha with powerful regional players likeMamata Banerjee openly backing the GST.

It would be difficult to isolate the Congress. Ourallies in Bihar — the JD(U) and the RJD — do notsupport the GST. We also have an alliance in TamilNadu, and even the AIADMK is opposed to theGST. Then there is the NCP and the Left, who areeven more opposed to the present form of this Bill.

There’s a fresh bid for the passage of the Bill. Howhopeful are you?

Yes, they are going through the motions. But I don’tthink that the BJP is serious about the GST. Myinformation is that different components of theSangh Parivar do not want the GST. They will claimthat they pushed the Bill and will paint the Congressblack for not supporting it. But look at their conductin Parliament and outside. Does it look like a sincerebid to pass a Constitutional amendment?http://www.thehindubusinessline.com/news/national/bjp-not-serious-about-implementing-gst/article8656428.ece

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2.0 Case Laws2.1 Case Laws related to Excise

Sr. No. 1RelevantSection

Rule 18 of Central Excise Rules 2002read with Section 11B

RelevantStatute Central Excise Act 1944Issue Rebate of DutySub IssueFavour of AssesseeIssuingAuthority High Court of RajasthanJudgment Assessee exported certain goods on

14-7-2008 - Later on 10-9-2009 it filed aclaim under rule 18 of Central ExciseRules read with Notification No.19/2004 - C.E. (NT), dated 6-9-2004 forrebate of duty paid on export of goods- Adjudicating Authority relying uponsection 11B rejected claim on groundof limitation stating that rebate claimwas filed after expiry of one year fromdate after export of goods - Assesseecontended that section 11B would notbe applicable to instant case, if at allsame was considered to be applicable,then date of release of necessarydocuments by department shall bedate for computation of limitation -Whether starting point forcomputation of period of one yearwould begin when documentsnecessary for substantiating claim ofrebate were furnished by departmentto assessee - Held, yes

Citation [2016] 69 taxmann.com 195(Rajasthan)Gravita India Ltd.

v.Union of India

Sr. No. 2RelevantSection Section 11A read with Section 11AC

RelevantStatute Central Excise Act 1944

Issue Invocation of extended periodSub IssueFavour of Partly in favour of AssesseeIssuingAuthority CESTAT New Delhi

Judgment Department raised demand levyingevasion penalty and invokingextended period - Commissioner

(Appeals) set aside 'evasion penalty'on ground that there was no mala fide- Assessee argued that even extendedperiod of limitation could not beinvoked - HELD : Commissioner(Appeals) set aside penalty on groundthat there was no allegation ofsuppression and no intent to evadeduty, as assessee was a GovernmentUndertaking - Revenue did notchallenge said findings ofCommissioner (Appeals) - In absenceof any intent to evade duty, extendedperiod cannot be invoked - Hence,matter was remanded back forquantifying demand for normalperiod

Citation [2016] 69 taxmann.com 264 (NewDelhi - CESTAT)Steel Authority of India Ltd.v.Commissioner of Central Excise,Raipur

Sr. No. 3RelevantSection Section 4

RelevantStatute Central Excise Act 1944

Issue ValuationSub IssueFavour of AssesseeIssuingAuthority CESTAT New Delhi

Judgment Exclusion of actual duties and taxes -Assessee was making 8 or 10 per centreversal on 'sale price' of 'exemptedgoods' under rule 6 of Cenvat CreditRules - Assessee was collectingcenvat-reversal amount from buyers -Department argued that amount ofreversal would also form part of 'saleprice' and 8 or 10 per cent would becomputed on 'total amount' recoveredfrom buyers - HELD : Amountpayable under rule 6 is not an 'exciseduty' - As per section 4, 'other taxes'do not form part of 'transaction value'- In absence of any definition of 'tax',any compulsory extraction madeunder any law is a duty or impost andsuch impost must be held to be innature of 'tax' - Construed in that

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manner, since 8 or 10 per cent payableon exempted goods is a statutoryrequirement, same amounts to 'othertax' and cannot be included in 'saleprice' or 'value' for computing that 8or 10 per cent amount

Citation [2016] 69 taxmann.com 265 (NewDelhi CESTAT)Commissioner of Central Excise,Indorev.Kriti Industries (India) Ltd.

Sr. No. 4RelevantSection

Rule 6 read with Rule 2(d) and Rule 2(e )

RelevantStatute CENVAT Credit Rules 2004

Issue Exempted and Dutiable GoodsSub IssueFavour of AssesseeIssuingAuthority CESTAT New Delhi

Judgment Period prior to 1-3-2011 - Assesseewas captively consuming 'exemptedHDPE bags' in manufacturing'exempted sprinkler system' -Assessee paid cenvat-reversal underrule 6 at 10 per cent on sale price of'exempted HDPE bags' and not on'exempted sprinkler system' -Department demanded reversal onsale price of final product viz.'exempted sprinkler system' - HELD :When assessee is paying specifiedpercent cenvat-reversal on value ofHDPE pipes used for manufacturingsprinkler system, they are notrequired to pay cenvat-reversal onvalue of sprinkler system - Hence,demand was quashed

Citation [2016] 69 taxmann.com 265 (NewDelhi - CESTAT)Commissioner of Central Excise,Indorev.Kriti Industries (India) Ltd.

Sr. No. 5RelevantSection Rule 2(l) read with Rule 3

RelevantStatute CENVAT Credit Rules 2004

Issue Input ServiceSub IssueFavour of AssesseeIssuingAuthority CESTAT Mumbai

Judgment Assessee received architect servicesand design services from certainpersons located outside India andused same for construction of astadium - It paid service tax on suchservices - Further assessee had rentedout stadium, on which it was payingservice tax under head of renting ofimmovable property - It had takencenvat credit of service tax paid onarchitect services and design services -Adjudicating Authority, relying onBoard Circular No. 98/01/2008-S.T.,dated 4-1-2008, held that credit ofservice tax paid on commercial orindustrial construction service orworks contract service, used forconstruction of immovable property,was not eligible as input service creditto person providing renting ofimmovable property services and,therefore, amount of service tax paidon architect services and designservices was inadmissible to assessee -Whether 'input service' defined underrule 2(l) was not limited to services forproviding output service, but it alsoincluded service for setting uppremises of provider of output service- Held, yes - Whether since, in instantcase, input services were architectservices and design services used forsetting up stadium of provider ofoutput service, i.e., assessee, andoutput service was renting of stadium,services used by assessee for settingup stadium were input services andsquarely covered by definition ofinput service - Held, yes - Whether,therefore, assessee was entitled forcredit of service tax paid on architectservices and design services - Held,yes

Citation [2016] 69 taxmann.com 298 (Mumbai -CESTAT)Maharashtra Cricket Associationv.Commissioner of Central Excise,Pune-III

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Sr. No. 6RelevantSection Section 14

RelevantStatute Central Excise Act 1944

Issue SummonsSub IssueFavour of RevenueIssuingAuthority Supreme Court

Judgment Department issued summons topetitioner to remain present 'inperson' for inquiry in a matter relatingto 'fake tax-payment challans' andbogus credit - Petitioner argued thatmatter pertained to NML and it hadnothing to do with NML; and tocomply with law, petitionerauthorised 'his lawyer' to remainpresent - Department argued thatmatter pertains to a big racketinvolving fake challans and boguscredit; hence, petitioner's presence isrequired - High Court held that : (a)several tax-payment challans werefound to be 'fake' and huge credittaken by NML was bogus; (b) severalanswers given by other persons werefound to be false, hence, crossverification is must; (c) questionswhich are to be asked from petitioner,cannot be asked from lawyer;therefore, presence of petitioner beforeDepartment Officer is must andaccordingly, writ petition wasdismissed with costs of Rs. 1,00,000 -On special leave petition beforeSupreme Court - HELD : SpecialLeave Petition was dismissed

Citation [2016] 69 taxmann.com 290 (SC)Sudhir Kumar Tripathiv.Commissioner of Central Excise &Service Tax

Sr. No. 7RelevantSection Section 11A

RelevantStatute Central Excise Act 1944

Issue RecoverySub IssueFavour of AssesseeIssuing High Court of Gujarat

AuthorityJudgment Department issued notice to 'F' and

raised demand on appellant-PHEC onground that appellant-PHEC was adummy of 'F' - On appeal, Tribunaldirected serving a copy of F's notice toappellant-PHEC - HELD : Whether'appellant-PHEC was dummy or not'cannot be decided without hearingalleged dummy 'F' - Mere issuance ofnotice to alleged parent company 'F',requirement of hearing appellant-PHEC cannot be done away with - Inoriginal notice issued to 'F', there wasneither any proposal againstappellant-PHEC nor a copy wasserved to appellant-PHEC; hence, onmere supply of copy of F's notice,Department cannot initiateproceedings against appellant-PHEC -Department had to take its owndecision as to issuance of fresh notice,if permissible in law as per period oflimitation

Citation [2016] 69 taxmann.com 330 (Gujarat)Premier Heavy EngineeringCorporationv.Commissioner of Central Excise

Sr. No. 8RelevantSection Section 35C

RelevantStatute Central Excise Act 1944

Issue AppealsSub Issue TribunalFavour of AssesseeIssuingAuthority High Court of Gujarat

Judgment Department issued notice to 'F' andraised demand on ground thatappellant-PHEC was a dummy of 'F' -On appeal filed by 'F', Tribunalremanded matter back foradjudication afresh and also directedserving a copy of F's notice toappellant-PHEC - HELD : Sinceappellant-PHEC was not named in F'snotice, no action could be takenagainst appellant-PHEC - It was fordepartment to issue notice toappellant-PHEC in accordance withprocedure and time-limit under law -

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It was neither duty nor authority ofTribunal to direct so - Further, suchrequirement cannot be fulfilled bymere supply of a copy of notice in caseof another entity 'F' - Hence,impugned order and consequentdirections were set aside

Citation [2016] 69 taxmann.com 330 (Gujarat)Premier Heavy EngineeringCorporationv.Commissioner of Central Excise

Sr. No. 9RelevantSection Section 35D

RelevantStatute Central Excise Act 1944

Issue AppealsSub Issue High CourtFavour of PetitionersIssuingAuthority High Court of Delhi

Judgment President (Tribunal) retired on 3-3-2016 and Vice-President (Tribunal)retired on 29-4-2016 - Thereupon, videorder dated 29-4-2016, Governmentappointed Member (Judicial) toprepare rosters for re-assigning benchtill joining of new President -Petitioners challenged said order inwrit jurisdiction - HELD : Impugnedorder is a temporary arrangement forcertain period and cannot continueindefinitely - Hence, notices wereissued for appointment of Presidentand Vice-President and CentralGovernment was directed to apprisecourt of steps taken to fill up saidposts on date of next hearing

Citation [2016] 69 taxmann.com 327 (Delhi)Simplex Infrastructures Ltd.v.Union of India

Sr. No. 10RelevantSection Section 11B

RelevantStatute Central Excise Act 1944

Issue RefundSub IssueFavour of Assessee

IssuingAuthority CESTAT New Delhi

Judgment Assessee, a service recipient, wasmanufacturing exempted product'urea' using raw material 'natural gas'- Assessee received services oftransport of natural gas from RGTIL,on which service tax was charged -Owing to downward revision inservice charges by Petroleum &Natural Gas Regulatory Board, RGTILissued credit note on assessee -Assessee applied for refund of excessservice tax paid on excess servicecharges recovered by RGTIL -Department denied refund on groundthat service recipient cannot filerefund claim - HELD : Servicerecipient, who has borne burden ofservice tax, can also file refund claim -Since assessee's tax jurisdiction falls inKota, hence, refund claim filed beforeCentral Excise Authorities at Kota ismaintainable [Oswal Chemicals &Fertilizers Ltd. v. CCE [2015] 50 GST551/57 taxmann.com 49 (SC),distinguished] - Hence, refund claimwas upheld

Citation [2016] 69 taxmann.com 328 (NewDelhi - CESTAT)Chambal Fertilizers & Chemicals Ltd.v.Commissioner of Central Excise,Jaipur-I

Sr. No. 11RelevantSection Section 35R

RelevantStatute Central Excise Act 1944

Issue AppealsSub IssueFavour of AssesseeIssuingAuthority High Court of Gujarat

Judgment In matter of appeal filed in year 2012by department, assessee argued thatamount involved was below Rs. 15lakh and hence, as per revisedmonetary limits, appeal was liable tobe dismissed - HELD : As perInstruction dated 17-12-2015,monetary limit for appeal to HighCourt was enhanced to Rs. 15 lakh

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and as per instruction dated 1-1-2016,it was clarified that same would applyto pending appeals also - Hence,present appeal involving amountbelow Rs. 15 lakh was dismissed -However, if there is any error incomputation of demand involved or iffor any reason, instruction dated 17-12-2015 is not applicable, it would beopen for Department to seek revival ofappeal

Citation [2016] 69 taxmann.com 326 (Gujarat)Commissioner of Central Excise andCustomsv.Morvi Vegetable Products Ltd.

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2.2 Case Laws related to Service Tax

Sr. No. 1RelevantSection Section 93

RelevantStatute Finance Act 1994

Issue ExemptionsSub IssueFavour of AssesseeIssuingAuthority CESTAT Mumbai

Judgment Refund of tax paid on services usedfor export goods - Period July, 2008 toDecember, 2008 - Assessee-exporterfiled claim for refund of tax paid onservices used for export on last/duedates viz. : (a) on 31-3-2009, forquarter ending September, 2008; and(b) on 30-6-2009, for quarter endingDecember, 2008 - Departmentreturned said claims citingdeficiencies - Assessee re-submittedsaid claims finally in February, 2011 -Department issued notices in May,2011 seeking rejection of refund claimsas time-barred, citing that delaywould create interest liability - HELD :Refund claims were originallysubmitted within time limit of 6months from end of quarter - Thoughthere may be deficiencies, however,date of filing of refund claim would bedate of original, albeit incomplete,filing - Hence, refund claims were nottime-barred - Since show-cause noticereferred to liability for interest onrefund, said notice was predicatedupon eligibility/sanction of refundand thus, rejection of refund, not onmerits, but on time-bar was with aview to avoid interest - Hence, refundwas allowed

Citation [2016] 69 taxmann.com 197 (Mumbai -CESTAT)Repro India Ltd.v.Commissioner of Central Excise

Sr. No. 2RelevantSection

Rule 5 read with Section 11B of theCentral Excise Act 1944

RelevantStatute Cenvat Credit Rules 2004

Issue Cenvat Credit- RefundSub IssueFavour of AssesseeIssuingAuthority CESTAT Mumbai

Judgment Period April 2012 to June 2012 -Assessee filed refund claim for CenvatCredit on 8-5-2013 - Departmentdenied refund claim on ground thatexport proceeds were received on 13-4-2012 and therefore, refund claimedfiled on 8-5-2013 was beyond time-limit of 1 year - Commissioner(Appeals) held that since refund claimis filed quarterly, time-limit of 1 yearis to be computed from quarter endingviz. 30-6-2012; hence, refund claimfiled on 8-5-2013 was within time -HELD : Refund of assessee being filedwithin 1 year from quarter ending, iswithin time-limit

Citation [2016] 69 taxmann.com 199 (Mumbai -CESTAT)Indagov.Commissioner of Service Tax, Pune

Sr. No. 3RelevantSection Section 85

RelevantStatute Finance Act 1994

Issue AppealsSub IssueFavour of AssesseeIssuingAuthority CESTAT Mumbai

Judgment Department denied export-refundholding same to be time-barred - Onassessee's appeal, Commissioner(Appeals) held that refund claim wasfiled within time, but, denied refundon ground that export was made indifferent period - HELD :Adjudicating authority had not issuedany notice on ground that exportpertained to different period - Sincedepartment had not gone into appeal,Commissioner (Appeals) was merelyrequired to adjudicate upon time-barissue raised by assessee and could nothave gone into issues not arising outof adjudication order - Hence, refundwas allowed

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Citation [2016] 69 taxmann.com 199 (Mumbai -CESTATIndagov.Commissioner of Service Tax, Pune

Sr. No. 4RelevantSection Section 65(65) read with Section 65(19)

RelevantStatute Finance Act 1994

Issue Taxable ServicesSub Issue Management or Buisness Consultant

ServiceFavour of AssesseeIssuingAuthority CESTAT Mumbai

Judgment Assessee, IHCL, was providingconsultancy and advice by postingkey senior personnel to assist Piem toconduct their hotel business with theirown infrastructure and manpower -Department classified said service asBusiness Auxiliary Service - HELD :Nature of service of IHCL is of kind ofadvice, consultancy and assistance inconnection with management ofhotels - IHCL is not managing orconducting hotel business of Piem ontheir behalf - IHCL is not providingany service on behalf of Piem toPiem's customers, nor are IHCLpromoting hotel business of Piem -Therefore, services provided by IHCLto Piem cannot be termed as BusinessAuxiliary Service and were rightlyclassifiable as Management orBusiness Consultant's Services

Citation 2016] 69 taxmann.com 201 (Mumbai -CESTATPiem Hotels Ltd.

v.Commissioner of Central Excise

Sr. No. 5RelevantSection Rule 2(I) read with Rule 5

RelevantStatute Cenvat Credit Rules 2004

Issue Input CreditSub IssueFavour of RevenueIssuingAuthority High Court of Karnataka

Judgment Department denied credit andconsequent refund of credit taken oninput services of event management,travel agent, tour operator and realestate agent - On assessee's appeal,Tribunal held that assessee is eligiblefor credit/refund - Departmentchallenged Tribunal order on groundthat Tribunal did not examine nexusof input service vis-à-vis outputservice - HELD : Tribunal did notexamine question of nexus vis-à-visparticular service for which refundclaim was disallowed, but gave asummary finding allowing credit andrefund on all services - Mereobservation that 'liberal interpretationis to be made while allowing credit ofinput services' cannot substituterequirement of nexus - Hence,impugned order was set aside andappeal was restored before Tribunalfor passing order afresh

Citation [2016] 69 taxmann.com 214(Karnataka)Principal Commissioner of ServiceTaxv.Shell Technology India (P.) Ltd.

Sr. No. 6RelevantSection Rule 2(I)

RelevantStatute Cenvat Credit Rules 2004

Issue Input CreditSub IssueFavour of AssesseeIssuingAuthority CESTAT New Delhi

Judgment Assessee was engaged in manufactureof automotive wheels - It availedservices of one 'M' for raising financeby way of private placement of shares,as it was in need of finances forimplementing automotive wheels lineproject in its factory - It claimed creditof service tax paid to 'M' as an inputservice credit as per provision of rule2(l) - Adjudicating Authority deniedcredit of service tax paid on service ofprivate placement of shares on groundthat financial services availed by

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assessee for disposal of shares werenot covered under definition of inputservice - Whether definition of inputservice has a wide ambit and coversservices which are relating to businessactivities of manufacture - Held, yes -Whether, therefore, service of privateplacement of shares for raising financewas an input service and credit ofservice tax paid on such servicedeserved to be allowed - Held, yes

Citation [2016] 69 taxmann.com 211 (NewDelhi - CESTAT)Steel Strips Wheels Ltd.v.Commissioner of Central Excise,Chandigarh

Sr. No. 7RelevantSection Section 107

RelevantStatute Finance Act 2013

Issue ST VCES 2013Sub IssueFavour of AssesseeIssuingAuthority CESTAT Mumbai

Judgment Procedure for making declaration andpayment of tax dues - Assesseeapplied for registration and madedeclared under VCES/amnestyscheme on due date 31-12-2013 andtried to make payment on same date -However, after making number ofattempts on website, transaction couldnot be completed as system showed'assessee code invalid' - Assessee paiddue amount on 1-1-2014 vide banker'scheque - Department rejecteddeclaration, as payment was not madeon due date being 31-12-2013 - HELD :Though scheme requires payment on31-12-2013 and there is no provisionfor extension, however, in this case,assessee could not make payment dueto system fault i.e., for reasons beyondcontrol of assessee - Hence, there wasno delay on part of assessee andaccordingly, payment made on 1-1-2014 should be treated as made on 31-12-2013 - Therefore, declaration washeld vali

Citation [2016] 69 taxmann.com 176 (Mumbai -CESTAT)Commissioner of Customs & CentralExcise, Wardhav.Cityland Associates

Sr. No. 8RelevantSection Section 65B(44)

RelevantStatute Finance Act 1994

Issue Exclusion of services provided byemployee to employer

Sub IssueFavour of AssesseeIssuingAuthority CESTAT Mumbai

Judgment Deputation of employee andacceptance thereto by employeemakes up 'joint employment' ofemployee with many employers;hence, sharing of employee-costs on'actual basis' between such employerscannot amount to 'service', as there isno intention to provide/receive any'service' inter se between employers

Citation [2016] 69 taxmann.com 198 (Mumbai -CESTAT)Franco Indian Pharmaceutical (P.) Ltd.v.Commissioner of Service-Tax,Mumbai

Sr. No. 9RelevantSection

Section 65(12) read with Section 66Aand Section 75

RelevantStatute Finance Act 1994

Issue Taxable ServicesSub IssueFavour of RevenueIssuingAuthority CESTAT Mumbai

Judgment Banking and other Financial Services -Assessee raised External CommercialBorrowings (ECB) in form of ForeignCurrency Convertible Bonds (FCCB)and appointed JIL forconducting/managing same -Department argued that amount paidfor JIL for its services is liable toservice tax under reverse charge inhands of assessee - HELD : In view of

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majority decision in Tata Steel Ltd. v.CST [Final Order No.A/3637/2015/STB, dated 1-10-2015],services received from foreignintermediary in connection withraising of ECB is liable to service taxunder reverse charge in hands ofIndian service recipient - Hence,demand was confirmed with interest

Citation [2016] 69 taxmann.com 266 (Mumbai -CESTAT)Gitanjali Gems Ltd.v.Commissioner of Service Tax,Mumbai-I

Sr. No. 10RelevantSection Section 65(16)

RelevantStatute Finance Act 1994

Issue Taxable ServicesSub Issue Broadcasting ServicesFavour of AssesseeIssuingAuthority CESTAT New Delhi

Judgment Assessee was appointed as 'exclusivedistributors' of TV channels broadcastby foreign broadcasters in India -Assessee was to promote, market, selland distribute channels; collectsubscription revenue; use channelmarks and other promotionalmaterials - Assessee retained 15 percent of total subscription and paidbalance to foreign broadcasters -Department demanded service tax onamounts paid by assessee to foreignbroadcasters under reverse charge -Assessee argued that it was Multi-System Operator (MSO) and servicesby foreign broadcasters to MSO weretaxable only from 16-6-2005 -Department argued that assessee wasmerely a representative/agent offoreign broadcasters and not MSO;hence, liable to service tax even priorto 16-6-2005 - HELD : Assessee hadalready paid service tax in its capacityas agent of foreign broadcasters -However, charges recovered bybroadcasters from MSOs forproviding signals were made taxablefrom 16-6-2005 - Hence, demand on

said charges for period prior to 16-6-2005 was set aside

Citation [2016] 69 taxmann.com 289 (NewDelhi - CESTAT)Commissioner of Service Tax, Delhiv.Zee Turner Ltd.

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2.3 Case Laws related to Customs

Sr. No. 1RelevantSection

Section 112 read with Section 2(33),104, 111 and 135

RelevantStatute Customs Act 1962

Issue PenaltySub Issue SmugglingFavour of AssesseeIssuingAuthority High Court of Calcutta

Judgment Assessee smuggled gold bars offoreign origin - Department treatedthem as 'prohibited goods' as theywere imported without followingproper procedure and levied penaltybased on value of gold - Assesseeargued that gold is not prohibitedgoods and hence, only penalty up toduty sought to be evaded could belevied - HELD : Section 111 providesfor confiscation of improperlyimported goods and it is liberallyinterpreted to deal with mischief ofillegal import - However, section 112deals with punishment/penalty andhas to be strictly construed -Expression 'goods in respect of whichany prohibition is in force' in section112 would imply goods which areprohibited from being imported inIndia and cannot cover goodssmuggled into country incontravention of procedure - Hence,imposition of penalty based on valueof gold was set aside and matter wasremanded for imposition of penalty asper law

Citation [2016] 69 taxmann.com 325 (Calcutta)Gopal Sahav.Union of India