Sei sulla pagina 1di 4
News Flash – Indirect Tax Udyog Software (India) Ltd. 15/09/2014 This document contains a brief

News Flash – Indirect Tax

Udyog Software (India) Ltd.

15/09/2014

This document contains a brief summary of the latest updates related to Indirect Taxes

Central excise: ‘Lemonade’ v ‘lemon-based drink’

Central excise: ‘Lemonade’ v ‘lemon-based drink’ The issue before the CESTAT, Mumbai, in E/1465/2011 of Hindustan

The issue before the CESTAT, Mumbai, in E/1465/2011 of Hindustan Coca Cola Beverages v CCE Thane was whether Minute Maid Nimbu Fresh, manufactured by by diluting lemon juice concentrate with treated water, is a ‘lemonade’ (2202 1020), as per the department’s classification, or fruit pulp- or fruit juice-based drinks (2202 9020) as per the appellant’s classification. ‘Lemonade’ is a subcategory of ‘waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured…’. The appellant contended that its product is neither a mineral water nor an aerated water and does not contain artificial flavouring, and therefore could not be classified as a lemonade. It pointed to another product in the market, called Duke’s lemonade, which contained no lemon juice and only had artificial lemon flavouring, to say that such products were called lemonade. The CESTAT was not convinced. It observed that just because Duke’s lemonade contained no lemon but was called a lemonade did not mean that the appellant’s product cannot be called a lemonade. The word ‘flavour’ includes both natural and artificial flavours. ‘Lemonade’ is not defined in the tariff, but the HS Explanatory Notes describe ‘lemonade’ as drinking water, whether sweetened or not, flavoured with fruit juices or essences or compound extracts, to which citric or tartaric acid are sometimes added, and which is often aerated with carbon dioxide gas. In view of this the adjudication order and the consequent demand for duty were upheld. The order dated 27 August 2014 is narrated in

http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=21452

(Upon being posted on the CESTAT website it can be accessed with the case number given above.)

Customs: CVD not on ships for breaking up

The world’s largest ship-breaking yard is in Alang, Gujarat. Ships are brought here for breaking up, and at the time of import the customs officers levy customs duty as well as CVD equal to excise duty on these ships. The relevant entry in the central excise tariff is 8908, for which the description is ‘vessels and other floating structures for breaking up’. The CVD on import of ships for breaking up was challenged in the Gujarat High Court in Shivam Engineering Company v Union of India. The court observed that as ships for breaking up are not manufactured in India, there could not be a levy of additional duty (CVD) to counterbalance excise duty on the product as manufactured in India. Consequently the court ruled that no CVD is payable on the import of ships for breaking up. The judgment, dated 11 June 2014, can be downloaded from http://gujarathc-casestatus.nic.in/ with the following information: case type is ‘special civil application’, case number is 10607 and case year is 1995.

Service tax collections up

Figures for the period April to August 2014 show an increase of 15% in service tax collection over the corresponding period of the previous year. There is a slight increase in customs and central excise revenues also. See the government press release at http://pib.nic.in/newsite/PrintRelease.aspx?relid=109603

Agreement with ASEAN on trade in services

India has signed the Indo-ASEAN Trade in Investments and Trade in Services Agreement agreement. The ASEAN (Association of South East Asian Nations) includes South Korea, Indonesia, Thailand, Singapore, Malaysia, Philippines, Vietnam, Myanmar, Brunei, Cambodia and Laos. The government press release on the agreement can be perused at http://commerce.nic.in/pressrelease/pressrelease_detail.asp?id=3116

WTO: Jordan initiates safeguard investigation on paper imports

Jordan has notified the World Trade Organisation that it has initiated a safeguards investigation on writing and printing papers of A4 size. The reason given is that there has been a sudden, sharp and significant increase in the imports of the product in the period 2010 to 2013 and that there is sufficient evidence of injury to domestic industry and the causality between the increased imports and the injury to industry. See http://www.wto.org/english/news_e/news14_e/safe_jor_29aug14_e.htm, which gives a link to Jordan’s notification. If the investigation confirms the prima facie view taken, Jordan could levy a safeguard duty on all imports of the product.

Jordan could levy a safeguard duty on all imports of the product. ©All Rights Reserved USIL
Jordan could levy a safeguard duty on all imports of the product. ©All Rights Reserved USIL

©All Rights Reserved USIL an Adaequare Company

Page 1

WTO: DG to hold intensive consultations next week on Bali implementation From next week, the

WTO: DG to hold intensive consultations next week on Bali implementation

From next week, the Director General of the WTO, Robert Azevado, will hold intensive and comprehensive consultations with heads of delegations of member countries both on implementation of decisions taken at Bali, and on the way forward for the Doha Development Agenda. See http://www.wto.org/english/news_e/infocenter_e.htm.

Agenda. See http://www.wto.org/english/news_e/infocenter_e.htm . ©All Rights Reserved USIL an Adaequare Company Page 2
Agenda. See http://www.wto.org/english/news_e/infocenter_e.htm . ©All Rights Reserved USIL an Adaequare Company Page 2

©All Rights Reserved USIL an Adaequare Company

Page 2

Content provided by:

Radha Arun Consultants to Udyog Software (India) Ltd. radha.arjuni@gmail.com

Please connect with us at:

Web: www.udyogsoftware.com

Call:

Email: teammarketing@udyogsoftware.com

+91 (0) 40 6603 6561

Call: Email: teammarketing@udyogsoftware.com +91 (0) 40 6603 6561 ©All Rights Reserved USIL an Adaequare Company Page
Call: Email: teammarketing@udyogsoftware.com +91 (0) 40 6603 6561 ©All Rights Reserved USIL an Adaequare Company Page
Call: Email: teammarketing@udyogsoftware.com +91 (0) 40 6603 6561 ©All Rights Reserved USIL an Adaequare Company Page

©All Rights Reserved USIL an Adaequare Company

Page 3