Indirect tax Digest - April 19, 2016

[Bimal jain]

Indirect tax Digest - April 19, 2016
May Lord Mahavir bless you abundantly and fill your life with the virtue of truth, non violence & external compassion - Happy Mahavir Jayanti
Particulars	Notification/Circular/Citation
‘Any services’ provided by Government or Local authority to a Business Entity chargeable to Service Tax under Reverse Charge w.e.f. April 1,2016
Amendment in the Mega Exemption Notification No. 25/2012-ST dated June 20, 2012 to exempt certain services provided by Government or a Local authority to a Business entity	Notification No. 22/2016-ST dated April 13, 2016
Proviso inserted in Rule 6(2)(iv) of the Service Tax (Determination of Value) Rules, 2006, to include in value of taxable services, payment of interest/ other consideration payable on Governmental services, when payment is allowed to be deferred on such payment of interest/ other consideration	Notification No. 23/2016-ST dated April 13, 2016
Point of Taxation under Reverse Charge in case of Governmental services – Proviso inserted in Rule 7 of the Point of Taxation Rules, 2011	Notification No. 24/2016-ST dated April 13, 2016
Cenvat credit of Service tax paid on assignment of right to use of natural resources by Government, Local Authority or any other persons and related amendment made in the fifth, sixth, seventh and eighth proviso of Rule 4(7) of the Cenvat Credit Rules, 2004	Notification No.  24/2016- Central Excise (N.T.) dated April 13, 2016
Clarification on taxability of Governmental services & Illustration explaining how the Cenvat credit is to be availed on Service tax paid for assignment of right to use natural resources and related changes	Circular No. 192/02/2016-ST dated April 13, 2016
For detailed analysis, read more in our newsletter titled ‘Any services’ provided by Government or Local authority to a Business Entity chargeable to ST under Reverse Charge w.e.f. April 1,2016: Related Changes/Clarification
SERVICE TAX
Commissioner cannot demand Service tax on services rendered beyond his jurisdiction, only because the assessee was maintaining centralised accounting	Inox Leisure Ltd. Vs. Commissioner of Service Tax [ 2016 (1) TMI 850 - CESTAT MUMBAI ]
Refund of Cenvat credit cannot be denied without questioning the eligibility of credit taken	Commissioner of Service Tax Vs. Lionbridge Technologies (P.) Ltd. [ 2016 (3) TMI 204 - CESTAT MUMBAI ]
Construction services are eligible input service for rendering renting of immovable property services	Nirlon Ltd. Vs.Commissioner of Central Excise, Mumbai [ 2016 (2) TMI 417 - CESTAT MUMBAI ]
Business Support services provided to Business entity outside India on principal to principal basis would fall under Rule 3 of the Place of Provision of Services Rules, 2012 and thus will be treated as export of service	GoDaddy India Web Services (P.) Ltd. [ 2016 (3) TMI 355 - AUTHORITY FOR ADVANCE RULINGS ]
CENTRAL EXCISE
Refund of accumulated Cenvat credit is allowed, even if finished goods are supplied to deemed export area	M/s. Alom Extrusion Ltd. Vs. M/s. Commr. of Central Excise, Kolkata-II [2016 (4) TMI 447 - CESTAT KOLKATA]
Cenvat credit on capital goods cannot be denied merely because at the time of availing Cenvat credit, the assessee was not in possession of such capital goods	M/s. Indo Shell Mould Ltd. Vs. CCE, Coimbatore [2016 (4) TMI 369 - CESTAT CHENNAI]
There is no restriction forcross utilization of common credit availed on inputs/ input services for payment of Excise duty or Service tax - Hence, input service credit cannot be denied on ground that it was shown in ER-1 return and not shown in ST-3 return	Pipavav Shipyard Ltd. Vs. Commissioner of Central Excise & Service-tax, Bhavnagar [ 2015 (8) TMI 58 - CESTAT AHMEDABAD ]
Amendment in Rule 6(3) and Rule 7B of the Cenvat Credit Rules, 2004	Notification No. 23/2016- Central Excise (N.T) dated April 1, 2016
For further facilitating Ease of doing business, the CBEC has issued detailed guideline which is to be followed while adjudicating the Show Cause Notices	Circular No. 1023/11/2016-CX dated April 8, 2016
CUSTOMS
SAD Refund would be admissible notwithstanding the fact that the trader-importer made no endorsement that “credit of duty is not admissible” on the commercial invoices	M/s. K.I. International Ltd. Vs. CC, Chennai [2016 (4) TMI 487 - CESTAT CHENNAI]
When the Excise duty is exempt, there is no question of payment of Additional Customs duty	Union Of India And Ors. Vs. M/s. EngeeIndl. Services Co. Ltd. &Anr [2016 (4) TMI 490 - SUPREME COURT]
Detailed procedure laid down for the implementation of “Integrated Declaration” by CBEC	Instruction No. 450/147/2015-Cus-IV dated March 31, 2016
The Bill of Entry (Electronic Declaration) Regulation, 2011 got amended by bringing the “Bill of Entry (Electronic Declaration) (Amendment) Regulations, 2016”	Notification No. 45/2016-Customs (N.T.) dated April 1, 2016
No fee shall be levied for taking service from specified officers, if it is prescribed as “twenty- four hours on all days for customs clearance” on Customs ports or Customs airports	Notification No. 46/2016-Customs (N.T.) dated April 1, 2016
VAT
DVAT: Amendment in Form DVAT-16 and Form DVAT-17, Form DVAT-30 and Form DVAT-31	Notification No. No. F.3(30)/Fin(Rev-I)/2015-16/dsvi/121 dated April 12, 2016
Issuance of C Forms cannot be denied on ground that the assessee has not disclosed inter-state purchases even in revised return filed	Ingram Micro India (P.) Ltd. Vs. Commissioner, Department of Trade & Taxes [ 2016 (2) TMI 244 - DELHI HIGH COURT ]
When the foundation work or installation work is itself treated as part of Works contract by the Assessing officer, no Sales tax can be levied by treating them as “goods”	M/s. ENERCON (INDIA) LTD. Vs. STATE OF KARNATAKA[2016 (4) TMI 483 - SUPREME COURT]
GST CORNER
Thousands rally against Malaysia's Goods and Services Tax GST a key factor in improving ease of doing business: Shaktikanta Das GST rate will go up if Kejriwal keeps luxury item out of budget: Jaitley Better to wait till April 1, 2017 for better GST: Debroy Proposed GST in India is of paramount importance: US Tea industry seeks special rate under GST GST key to India’s entry to APEC: US study Hope the information will assist you in your Professional endeavours. In case of any query/ information, please do not hesitate to write back to us.