TIOL-DDT 2672
27 08 2015
Thursday

A CESTAT Circular issued yesterday informs all concerned that with effect from 01.09.2015, all appeals/applications originating from territories within the State of Uttar Pradesh shall be filed at Room. No. 210 & 220, in the Office of the Commissioner of Central Excise, 38, MG Marg, Allahabad.

This is as per the Allahabad High Court directions on 20.08.2015.

The High Court had directed that:

All the appeals, which are pending before the Tribunal at New Delhi relating to the State of Uttar Pradesh will stand automatically transferred to the regional Bench at Allahabad. It also follows that the filing of fresh appeals will now be made at Allahabad from 01.09.2015 onwards.

The Registrar, Tribunal will issue an advertisement in the leading newspapers, which has a circulation in Delhi as well as in the State of Uttar Pradesh published in English and Hindi within 10 days from today intimating the public about the transfer of the pending appeals to the regional Bench at Allahabad and also with regard to the filing of fresh appeals under Central Excise Act, Customs Tariff Act, Finance Act and all other relevant laws with effect from 01.09.2015 onwards.

The advertisement has to come now. The CESTAT has an annual budget of 2 lakh rupees for advertising and publicity, which has not been used so far. Maybe they can spend all of it now and maybe ask the Revenue Department for some more lakhs on this account.

CESTAT Circular in F.No.08/MISC/MIN/2008-CR., Dated August 26 2015 

Free Home Delivery of Food - No Service Tax - Deputy Commissioner Clarifies

COMMENTING in our columns on 24.05.2013 in Service tax on AC Restaurants - A peep into Legal Interpretation, Advocate Sivakumar wrote,

Most of these restaurants are also charging service tax on self-service, take-away/parcel as also on home delivery, which seems highly unjustified. Truly speaking, these are transactions of sale, with a negligible service component.

The CBEC should come out with a Circular and remove the cooking fumes from the restaurant kitchen rather than keeping mum and allowing others in the 'establishment' to have their fill!

Now, the Deputy Commissioner of Central Excise and Service Tax Division, Chandigarh has clarified to a restaurant:

Please refer to your office letter dated 22-7-2015 (received in this office on 23-7-2015) on the above cited subject where under Clarification as to whether Service Tax is payable on food sold by way of Pick-up or Home deliveries has been sought.

It is clarified that in case of the transaction involving Pick-up or the Home Deliveries of the food sold by the Restaurant, the dominant nature of the transaction is that of sale and not service as the food is not served at the Restaurant and further no other element of service which is offered at the Restaurants, be it ambience, live entertainment, if any, air conditioning, or personalized hospitality is offered. The Service Tax can be levied if there's an element of 'Service' involved which would typically the case where food is served in restaurant.

The above transaction is not liable to Service Tax, being sale in nature, only if, no amount is charged for such free delivery of food.

This is issued with prior approval of the Additional Commissioner.

Does the CBEC agree with this?

Huge Service Tax Demand on SEBI?

IT is reported that CBEC has given the green signal for a huge Service Tax notice on SEBI.

Section 25 of the SEBI Act reads as:

Exemption from tax on wealth and income.

25. Notwithstanding anything contained in the Wealth-tax Act, 1957 (27 of 1957), the Income tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on wealth, income, profits or gains-

(a) the Board;

(b) the existing Securities and Exchange Board from the date of its constitution to the date of establishment of the Board, shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth,income, profits or gains derived.

But this does not speak of Service Tax, according to the Service Tax officers.

Please also see:   SEBI Gets Service Tax Summons?

FTP - SEZ - Procedure for filing applications under MEIS and SEIS

AS per Para 3.08 of the Handbook of Procedures of Foreign Trade Policy(FTP) 2015-20;

3.08 Port of Registration of Scrips

(a) Port of Registration under MEIS would be as follows:

(i) Duty Credit Scrip (including splits) under MEIS shall be issued with a single port of registration which shall be the port of export.

(ii) Duty credit scrip needs to be registered at the port of exports. This is to be done prior to allowing usage of duty credit. Once registered at EDI port, scrip can be automatically used at any EDI port for import and at any manual port under Telegraphic Release Advice (TRA) procedure.

(iii)  In case port of registration is a manual port, TRA shall be required for imports at any other port.

(b) In case of scrip applied under Service Exports from India Scheme, the applicant can choose any port as port of registration and mention it in the application at the appropriate column. RA will issue the scrip with such port of registration. Such Duty credit scrip needs to be registered at the port of registration of duty credit. Once registered at EDI port, scrip can be automatically be used at any EDI port for import and at any manual port under Telegraphic Release Advice (TRA) procedure. In case port of registration is a manual port, TRA shall be required for imports at any other port.

Now it is amended to stipulate that, SEZs being non-EDI Ports, the scrip shall be registered at the SEZ port and in case the scrip holder intends to use the scrip for import from another port, the concerned DC shall issue Telegraphic Release Advice (TRA).

 Jurisdictional RA / RA Concerned:

Importer Exporter Code(IEC) holders having units in SEZs /EOUs shall apply to the concerned Development Commissioner of Special Economic Zones (SEZs) given in appendix 1A for availing benefit under Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) provided in FTP 2015-2020.

In case of IEC holders that have units in SEZ/EOUs as well as in DTA, such IEC holders, for availing benefits under MEIS and SEIS provided in FTP 2015-2020, shall file their applications as under :-

(i) DTA units shall apply to concerned Regional Authority(RA), DGFT as given in Appendix 1A;

(ii) SEZ/EOU units shall apply to concerned Development Commissioner (DC), SEZ as given in Appendix 1A.

DGFT Public Notice No. 30/2015-20, Dated: August 26, 2015

FTP - EOU-LOP - Amendments in Appendix-6B

THE DGFT has amended paragraph (7) of Appendix-6B of Appendices and Aayat Niryat Forms of FTP 2015-2020:

An enabling provision has been incorporated in paragraph (7) of Appendix 6-B of Appendices and Aayat Niryat Forms of FTP 2015-20 so as to enable the Board of Approval to consider and decide the cases for extension of Letter of Permission of existing EOUs.

DGFT Public Notice No. 31/2015-20, Dated: August 26, 2015

FinMin Issues Budget Circular 2016-17

THE Finance Ministry has issued Budget Circular 2016-17 about two months in advance to ensure wider consultations with all Ministries/Departments on various issues.

The Budget Circular contains the compendium of instructions issued from time to time by Ministry of Finance on various issues.

Estimates of Central taxes and duties administered by the Central Board of Direct Taxes and Central Board of Excise and Customs as also of cesses collected by the CBEC, will be furnished by them to the Budget Division giving commodity-wise estimates of manufacture/imports, duty rates and foreign exchange rate assumptions forming the basis of the estimates.

The estimates of expenditure are to be furnished to Budget Division in stages. The estimates will be finalized after Secretary (Exp.) has held discussions with the Financial Advisers, as in the past. These discussions are scheduled to be held in October/November, 2015. These will focus on the net Budget of each Ministry/ Department i.e. expenditure less revenue receipts and capital receipts, like recoveries of loans, issue of bonus shares, etc.

Bank Holiday on 2nd and 4th Saturdays

THE Central Government has declared the second and fourth Saturday of every month as Public Holiday for banks in India with effect from the 1st day of September 2015.

This is done under Section 25 of the Negotiable Instruments Act, 1881 which reads as:

25. When day of maturity is a holiday. When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day.

Explanation.- The expression "public holiday" includes Sundays and any other day declared by the Central Government, by notification in the Official Gazette, to be a public holiday.

Ministry of Finance, Department of Financial Services Notification in F. No. 4/1/7/2015-IR., Dated: August 20 2015.

Hyderabad Air Customs Detects ingenious way of Gold Smuggling - Gold Powder mixed with chemical

THE officers of Customs Air Intelligence Unit, RGIA, Hyderabad, on 25.8.2015 night, intercepted at the customs exit, 2 passengers who arrived from Dubai by Emirates Airlines. The passengers were carrying hand bags and opted to pass through the Green Channel by not declaring any dutiable goods. On questioning by the officers, about possession of any dutiable/prohibited goods, the passengers denied and replied in negative. Because of the nervous behaviour and suspicious nature of the passengers, the officers have conducted detailed personal search, as a result of which they have recovered gold powder ingeniously mixed with a chemical compound made in the shape of shoe soles and concealed in the shoes worn by them. The passengers were interrogated and they have admitted the offence. The Officers recovered the gold powder by melting the chemical compound like item and made them into Gold Bars for ease of proceedings and the total value of Gold Bars seized is Rs. 88 Lakhs (approx.).

Until Tomorrow with more DDT

Have a nice day.

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