News Flash Indirect Tax

Udyog Software (India) Ltd.

22/09/2014



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

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Customs: Tariff values notified

The CBEC has notified tariff values of specified commodities for customs assessment under section 14 of the
Customs Act 1962. The downward trend in the value of palm oils and oleins and crude soyabean oil continues.
The value of brass scrap too has been lowered. The value of poppy seeds and areca nuts remains unchanged.
The value of gold in respect of which the benefit of exemption under serial numbers 321 and 323 of
notification 12/2012-Customs is availed has been reduced to USD 400 per 10 grams (from USD 420 per 10
grams). The value of silver in respect of which the benefit of serial numbers 322 and 324 of notification
12/2012-Customs is availed has been reduced to USD 609 per kilogram (from USD 645 per kilogram). The
notification 76/2014-Customs (NT) dated 15 September 2014 can be seen at http://cbec.gov.in/customs/cs-
act/notifications/notfns-2014/cs-nt2014/csnt76-2014.htm.

Customs: Modinagar notified as ICD

The CBEC has amended notification 12/97-Customs (NT) to include Modinagar, Ghaziabad, Uttar Pradesh, as
an inland container depot for the purpose of unloading of import goods and loading of export goods. The
amendment has been made by notification 86/2014-Customs(NT) dated 18 September 2014, which can be seen
at http://cbec.gov.in/customs/cs-act/notifications/notfns-2014/cs-nt2014/csnt86-2014.htm.

Customs: Exchange rates notified

The CBEC has notified rates of exchange of specified currencies for the purpose of section 14 of the Customs
Act 1962, to arrive at the value of imported and export goods for assessment to customs duties. Inter alia, the
exchange rate of the Euro is Rs 79.65 for imported goods and Rs 77.75 for export goods; the exchange rate of
the pound sterling is Rs 100.75 for imported goods and Rs 98.55 for export goods; and the US dollar exchanges
for Rs 61.75 for valuation of imported goods and Rs 60.75 for export goods. The notification 87/2014-Customs
(NT) dated 18 September 2014 can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-
2014/cs-nt2014/csnt87-2014.htm.

Customs: Provisional anti-dumping duty on insulators of glass, ceramic, porcelain from China

The Director-General (Anti-Dumping) had begun investigations on 5 September 2013 on a complaint by WS
Industries (India) Limited, Modern Insulators Limited, Insulators & Electrical Company, Bharat Heavy
Electricals Limited and Aditya Birla Nuvo Limited that electrical insulators were being dumped from China,
causing injury to domestic industry. He issued preliminary findings on 1 July 2014
(http://commerce.nic.in/writereaddata/traderemedies/adpref_Electrical_Insulators_ChinaPR.pdf ) to the
effect that there has been dumping, which has caused injury to domestic industry; and has recommended
imposition of provisional duty on the goods. Accordingly the central government has issued notification
40/2014-Customs(ADD) dated 16 September 2014 levying provisional anti-dumping duty on electric insulators
of glass, ceramic and porcelain from the Peoples Republic of China, for a period of six months
(http://cbec.gov.in/customs/cs-act/notifications/notfns-2014/cs-add2014/csadd40-2014.htm.)

Customs: Anti-dumping duty on sulphur black from China

Anti-dumping duty had been levied on sulphur black from the Peoples Republic of China vide notification
127/2008-Customs dated 3 December 2008, and had been extended till 10 April 2014 by notification 5/2013-
Customs (ADD) dated 10 April 2013. The DG (Anti-Dumping) conducted a sunset review and recommended
imposition of the duty for a further period. Accordingly the central government has issued notification
41/2014-Customs (ADD) dated 18 September 2014, imposing anti-dumping duty of USD 766 per MT on the
import of sulphur black from China. The duty will be valid for a period of five years from the date of the
notification, which can be downloaded from http://cbec.gov.in/customs/cs-act/notifications/notfns-2014/cs-
add2014/csadd41-2014.htm.

Customs: Goods for AEW&C System for defence exempted upto 5 October

The central government has issued notification 27/2014-Customs dated 18 September 2014 exempting customs
duty on import of goods for the Airborne Early Warning & Control (AEW&C) System Program of the Ministry of
Defence. The exemption will expire on 5 October 2014. The notification, which introduced the exemption by
amending existing notification 39/96-Customs, can be perused at http://cbec.gov.in/customs/cs-
act/notifications/notfns-2014/cs-tarr2014/cs27-2014.htm.

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Customs: Sample fabric, oil cake etc, import exemptions extended

The central government has amended notification 12/2012-Customs to increase the permitted duty-free
import of free samples of fabric to 1000 m in a year. It has also extended the exemption for import of various
kinds of oil cakes and oil cake meal till the end of March 2015. The notification can be seen at
http://cbec.gov.in/customs/cs-act/notifications/notfns-2014/cs-tarr2014/cs28-2014.htm.

Customs: Goods for AEW&C System for defence exempted upto 5 October

The CBEC has issued Circular 984/08/2014-CX dated 16 September 2014 providing much-needed clarifications
on the new provisions of pre-deposit for appeals. The clarifications are as follows:

(i) In appeal from an order of the Commissioner (Appeals), the pre-deposit at the CESTAT level will be
10% of the duty or penalty payable in terms of the order of the Commissioner (Appeals), not in terms
of the order of the lower authority;
(ii) Pre-deposit can be made by e-payment, and a self-attested copy of the proof of payment will suffice
before the appellate authority;
(iii) Payment made during investigation or audit can be treated as deposit made towards the appeal, and
the date of filing the appeal will be treated as the date of pre-deposit (-this is relevant for purpose of
interest, if it arises). Such payment as is in excess of the amount required for filing the appeal will not
be treated as pre-deposit in terms of the sections of the statute that govern pre-deposit for appeal;
(iv) Upon payment of the required pre-deposit, no action will be taken for recovery of the disputed
amounts during pendency of the appeal.
(v) Upon decision of the case in favour of the assessee, or even upon remand of the case for re-decision
by a lower authority, the pre-deposit amount will be refunded upon application by the assessee, even
if the department plans to go in appeal against the decision. This is not a refund claim and will not
treated as such.

The circular can be downloaded from http://cbec.gov.in/excise/cx-circulars/cx-circ14/984-2014cx.htm.

Customs, excise, service tax: CESTAT clarifies on pre-deposit in appeal

The CESTAT has issued a circular 15/CESTAT/General/2013-14 dated 28 August 2014 to clarify some issues
regarding pre-deposit. This says, inter alia, that mandatory deposit of penalty has to be made in cash, while
mandatory deposit of duty can be made out of Cenvat credit. The circular can be accessed from the list under
the Important Circulars tab on http://cestat.gov.in/.

Customs, excise, service tax: Jurisdiction and powers of officers notified

Pursuant to cadre review in the department and creation of new posts and designations, the CBEC has notified
the jurisdiction and powers of officers. This includes manpower for the Directorate-General of Audit, including
officers for carrying out on-site audit under the On-site Post Clearance Audit at the Premises of Importers and
Exporters Regulations, 2011. The customs notifications numbering 77 to 85/2014-Customs (NT), all dated 16
September 2014, can be seen at http://cbec.gov.in/csnt77-85-notifications.pdf. The excise notifications
numbering 27 to 29/2014-CE(NT) dated 16 September 2014 can be seen at http://cbec.gov.in/cent27-29-
notifications.pdf. The service tax notifications numbering 20 to 22/2014-ST can be seen at
http://cbec.gov.in/st20-22-notifications.pdf.

Central excise: CBEC draws attention of officers to SC judgment on sales tax incentive scheme

The Supreme Court had held in its judgment dated 28 February 2014 the case of CCE Jaipur v Super Synotex
India Limited that when the manufacturer had collected sales tax from the buyer and was allowed to retain
75% of it under a sales tax incentive scheme, this amount was to form part of the assessable value for central
excise. This case is accessible from the Supreme Court website at
http://judis.nic.in/supremecourt/chejudis.asp by using the name of the respondent and date of the
judgment. The CBEC has now written to its field formations inviting their attention to this judgment for
finalisation of similar cases. See http://cbec.gov.in/excise/cx-circulars/cx-ins-14/cx-ins-salestax-
incentivesceme.htm.

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Content provided by:

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

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