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    INDEX OF SIX INFRASTRUCTURE INDUSTRIES (BASE: 1993-94=100) OCTOBER 2007
    Appeal before the High Court / Supreme Court - Whether determination of Production Based Capacity based duty is a question of law or question of fact?
    GOOD GOVERNANCE WILL CONTRIBUTE HIGHER RATE OF ECONOMIC GROWTH, SAYS KAMAL NATH ADDRESSES 102ND ANNUAL SESSION OF PHD CHAMBER
    Whether the recipient of services (import of services) is liable to pay Interest and Penalty in case of late payment of service tax?
    Whether the names "Amigen, Sorgen and Sigum" are branded products or trade names of the products manufactured by the appellant - for the purpose of SS...
    Whether a part of Turnkey Project performed by a contractor would be constituted as execution of turnkey project or an independent activity for the pu...
    Availability of Cenvat Credit of Service Tax paid on Input Services - Where invoices were issued in the name of unregistered premises
    Service Tax on Sale of Post Paid / Prepaid Cellular Sim Cards
    Can there be any demand of Interest on Late payment of Service Tax without Show Cause Notice
    Foreign Tours are Chargeable to Service Tax under Tour Operator
    Service Tax chargeable, if the Service provider and service receiver are both located outside Jammu and Kashmir
    The services provided by the lawyers in their professional capacity are not subjected to Service Tax
    Supply of cooling units along with pipe kits, electrical cord, remote control, etc. is manufacturing activity - Supreme Court
    PER CAPITA INCOME OF THE COUNTRY
    PROPOSED INDO-JAPAN TREATY ON CURRENCY SWAP
    EXPORTS UP BY OVER 35% - INDIA'S FOREIGN TRADE DATA: APRIL-OCTOBER 2007
    Whether writing a letter to the Central Excise Department well in advance is sufficient to prove that no show cause notice would be issued beyond one ...
    Whether Refrigerator is a "packaged commodity" for the purpose of Central Excise Valuation under MRP - Section 4A
    NEGOTIATIONS FOR INDIA-MALAYSIA COMPREHENSIVE ECONOMIC COOPERATION AGREEMENT TO COMMENCE FROM JAN. 2008. KAMAL NATH INAUGURATES “MALAYSIA-INDIA BUSI...
    Belated Payment of Service Tax with Interest before issuance of SCN - Whether penalty proceeding can be initiated
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    December 29, 2007
    Show AI Summary
    Infrastructure index signals slower growth in core industries, showing moderated production across key sectors.
    The Index of Six core infrastructure industries (combined weight 26.7% in the IIP, base 1993-94) stood at 237.9 in October 2007, with October-on-October growth of 4.5% and April-October cumulative growth of 6.2%. The release supplies provisional sectoral production and growth figures for crude petroleum, petroleum refinery products, coal, electricity, cement and finished (carbon) steel, including weights, monthly production volumes and month-wise indices. All data are provisional, may be revised, and derive from the concerned ministries, departments and organisations.
    December 24, 2007
    Show AI Summary
    Question of law vs fact: substantial question of law absent, so tribunal's factual finding on production capacity governs appellate review.
    Whether the determination of production based capacity under Section 3A of the Central Excise Act, 1944 is a question of law or a question of fact depends on whether a substantial question of law is raised; where the tribunal records primary factual findings on furnace capacity and no substantial legal question is shown, those factual determinations govern deemed annual production and are final for excise assessment purposes.
    December 20, 2007
    Show AI Summary
    Good governance as policy foundation: governance reforms and institutional capacity are essential to secure inclusive growth and social delivery.
    Good governance is advanced as a foundational policy instrument to foster higher economic growth and social capital, with principles such as decentralization, accountability, transparency, access to justice, nondiscrimination, peace, and adequate social budgetary provision. The address stresses that governance reforms are essential to achieve Inclusive Growth, ensure that growth benefits reach marginalized groups, and to tackle challenges including employment, agricultural performance, water and sanitation, education, housing, and healthcare through strengthened institutional capacity and comparative policy learning.
    December 14, 2007
    Show AI Summary
    Recipient of services liability affirmed: recipient must pay interest for late service tax payment under assumed tax obligations.
    The courts construed the Finance Act, 1994 and contractual terms and concluded that where a service recipient has undertaken to discharge service tax but fails to remit it, the recipient of services is liable to pay interest on late payment of service tax and attendant penalties as applicable.
    December 12, 2007
    Show AI Summary
    SSI exemption eligibility for unregistered trade names affirmed after finding abandonment and no objection by prior owner.
    The tribunal, on remand to decide whether Amigen, Sorgen and Sigum are trade names qualifying for SSI exemption, found that the prior owner had abandoned the names and had not objected to the appellant's use, and on that basis held the denial of exemption with respect to those unregistered trade names unsustainable.
    December 12, 2007
    Show AI Summary
    Turnkey project integration: ancillary engineering and supervision services treated as part of composite project, not separate taxable services.
    Where a subcontractor performs a segment of an integrated turnkey project that is functionally and contractually tied to the principal object of setting up a plant, that segment is treated as part of the composite turnkey execution rather than as an independent taxable service; ancillary services like design, engineering, supervision and post commissioning support do not attract separate service tax if they form part of the overall turnkey deliverable.
    December 8, 2007
    Show AI Summary
    Cenvat credit availability where invoice address differs: provisional stay after registrant added the invoiced address to registration.
    Availability of Cenvat credit for service tax on input services where invoices bear an address different from the registration certificate depends on whether the registrant subsequently amends registration to include the invoiced address; where such addition was made, the tribunal accepted the contention and granted a provisional stay of the demand.
    December 8, 2007
    Show AI Summary
    Service tax on SIM card sales treated as sales tax; distributor profit not subject to service tax.
    The tribunal found sales of post paid and prepaid cellular SIM cards fall within Sales Tax; the cellular company had discharged tax on the transactions, distributors act as independent sellers, and distributor profits from resale are not subject to service tax.
    December 8, 2007
    Show AI Summary
    Accrual of interest on late service tax is automatic; separate show cause notice not required.
    The adjudicating question concerned demand of interest for late payment of service tax when the show cause notice proposed penalties but did not mention interest; the applicable principle is that accrual of interest on late payment is automatic and a separate show cause notice proposing interest is not required, permitting an adjudicator to quantify and demand interest even if it was not expressly included in the original notice.
    December 5, 2007
    Show AI Summary
    Tour operator service tax: outbound tour planning by India-based provider to India-based recipient deemed taxable, with past liabilities.
    Change in the definition of Tour Operator effective 10.09.2004 renders services provided by an India based tour operator to a recipient also located in India for planning, scheduling and organizing tours outside India taxable as tour operator service; taxability is premised on both provider and recipient being located in India and the service flowing within the country, and operators were directed to pay current and past service tax liabilities.
    December 5, 2007
    Show AI Summary
    Service Tax chargeability applies where both provider and receiver are outside a state even if the service object is within.
    The Board clarified that Service Tax is chargeable on the service provider when both the provider and the service receiver are located outside Jammu and Kashmir, even if the object or project area of the service is situated within Jammu and Kashmir.
    December 5, 2007
    Show AI Summary
    Legal professional services exempt from service tax - outsourcing to associates not treated as taxable business support service.
    Services rendered by lawyers in their professional capacity relating to law are not subject to service tax; outsourcing legal work to associates does not convert that activity into taxable business support service because the professional character of legal services governs tax treatment and an intergovernmental committee has included legal service among services not presently taxed.
    December 5, 2007
    Show AI Summary
    Manufacture classification of supplied cooling units renders them liable to excise duty under the applicable tax framework.
    Supply and incorporation of cooling units and ancillary items into split air conditioner assemblies-where vendors fit appellant supplied motors, units are combined with condensing units and pre delivery testing is performed-amounts to manufacture and is therefore liable to excise duty because the components are transformed and integrated into a finished product delivered for sale.
    December 4, 2007
    Show AI Summary
    Per capita income growth signals stronger state incomes and an elevated GDP growth target for the Eleventh Plan.
    Per capita income at constant 1999-2000 prices is reported for States, Union Territories and the national level, with several local city figures withheld; the release tabulates state-wise per capita income for three years and notes missing entries. It records a higher rise in per capita income during the Tenth Five Year Plan than the Ninth, and states that the Approach Paper to the Eleventh Five Year Plan proposes an elevated average annual GDP growth target. The data and plan-period comparisons were provided in reply to a parliamentary question and are drawn from official statistical compilations.
    December 4, 2007
    Show AI Summary
    Bilateral currency swap arrangement to provide short-term balance of payments liquidity with an interest and renewal framework.
    A proposed bilateral currency swap between India and Japan would allow reciprocal exchanges of dollars for domestic currency to meet short term balance of payments liquidity needs, with an initial short maturity, interest payable on dollar amounts received, and a renewal mechanism permitting extensions up to a maximum duration. Separately, Japan has been approached for Official Development Assistance for a dedicated freight corridor project, with funding sources still under ministerial consideration.
    December 4, 2007
    Show AI Summary
    Trade deficit widened as exports grew strongly but imports grew faster, increasing the external merchandise gap.
    Exports expanded strongly in October and cumulatively for April-October 2007 with higher dollar term growth than rupee term growth; imports-particularly non oil imports-grew faster than exports, oil imports rose more moderately, and the provisional merchandise trade deficit for April-October 2007 widened relative to the prior year, with values reported in both US dollar and rupee terms.
    November 29, 2007
    Show AI Summary
    Advance correspondence does not bar excise proceedings where deliberate mislabeling shows intent to evade duty.
    Advance correspondence with revenue authorities does not, by itself, preclude later show cause proceedings when contemporaneous labeling or communications demonstrate deliberate misrepresentation to avoid excise liability. Evidence that dutiable products were intentionally described under a different name undermines claims of bona fides and supports treating the conduct as suppression or evasion for purposes of demand and notice.
    November 29, 2007
    Show AI Summary
    Packaged commodity designation controls MRP-based excise valuation and obliges manufacturers to comply with notification requirements.
    Refrigerators included in the notification qualify as a packaged commodity under Section 4A and are therefore subject to MRP-based central excise valuation and associated printing and valuation obligations; inclusion in the notification governs applicability unless the notification's validity is successfully challenged, and mere disagreement with the packaged characterization does not remove the product from scope.
    November 28, 2007
    Show AI Summary
    Comprehensive Economic Cooperation Agreement negotiations to begin, aiming to expand trade, investment and services cooperation between India and Malaysia.
    Negotiations are proposed to commence for a India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) from January 2008 following a Joint Study Group recommendation; the JSG identified potential to expand bilateral trade in goods, services and investment, and the CECA is presented as the instrument to deepen economic ties and facilitate market access, services cooperation and increased investment flows.
    November 27, 2007
    Show AI Summary
    Voluntary payment of service tax with interest prevents penalty and halts penalty proceedings if made before notice.
    Voluntary deposit of service tax with interest under the procedure of section 73(3), coupled with written notification to the Central Excise Officer before any show cause notice, prevents service of a notice and precludes initiation of penalty proceedings for the amount so paid; CBEC guidance states such proceedings shall be deemed concluded and no penalty imposed.

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      News and Press Release

      INDEX OF SIX INFRASTRUCTURE INDUSTRIES (BASE: 1993-94=100) OCTOBER 2007

      December 29, 2007

      Contents
      Summary
      Note

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       The Index of Six core-infrastructure industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) with base 1993-94 stood at 237.9 (provisional) in October 2007 and registered a growth of 4.5% (provisional) compared to a growth of 9.9 % in October 2006.  During April-October 2007-08, s ix core-infrastructure industries registered a growth of 6.2%(provisional) as against 8.9% during the corresponding period of the previous year.

      Crude Petroleum

      Crude petroleum production (weight of 4.17% in the IIP) registered a  Negative growth of 0.1% (provisional) in October 2007 compared to a growth rate of 9.3% in October 2006.   The Crude petroleum production registered a growth of 0.6% (provisional) during April-October 2007-08 compared to 4.8% during the same period of 2006-07.

      Petroleum Refinery Products

      Petroleum refinery production  (weight of 2.00% in the IIP) registered a growth of 2.8% (provisional) in October 2007 compared to growth of 18.1 % in October 2006. The Petroleum refinery production registered a growth of 8.8% (provisional) during April-October 2007-08 compared to 13.1% during the same period of 2006-07.

      Coal

      Coal production (weight of 3.22% in the IIP) registered a growth of 9.2% (provisional) in October 2007 compared to  growth rate 1.9% in October 2006. Coal production grew by 3.8 % (provisional) during April-October 2007-08 compared to an increase of 4.8% during the same period of 2006-07. 

      Electricity

      Electricity generation (weight of 10.17% in the IIP ) registered a growth of 4.2% (provisional) in October 2007 compared to a growth rate 9.7% in October 2006. Electricity generation grew by 7.1 % (provisional) during April-October 2007-08 compared to 7.1% during the same period of 2006-07.

      Cement

      Cement production (weight of 1.99% in the IIP) registered a growth of 7.0% (provisional) in October 2007 compared to 9.4% in October 2006. Cement Production grew by 8.1 % (provisional) during April-October 2007-08 compared to an increase of 10.4% during the same period of 2006-07.   .

      Finished (carbon) steel

      Finished (carbon) Steel production (weight of 5.13% in the IIP) registered a growth of 4.8% (provisional) in October 2007 compared to 10.6% (estimated) in October 2006. Finished (carbon) Steel production grew by 6.1% (provisional) during April-October 2007-08 compared to an increase of 11.9% during the same period of 2006-07. 

      N.B: Data are provisional. Revision has been made based on revised data obtained.

      PERFORMANCE OF SIX INFRASTRUCTURE INDUSTRIES October 2007  (Weight in IIP: 26.68 %)

      Base Year: 1993-94

      Sector-wise Growth Rate (%) in Production

      Sector                 

      Weight (%)

      Oct 06

      Oct 07

      Apr-Oct 2006-07

      Apr-Oct   2007-08

      Crude Petroleum

      4.17

      9.3

      -0.1

      4.8

      0.6

      Petroleum Refinery Products

      2.00

      18.1

      2.8

      13.1

      8.8

      Coal                  

      3.22

      1.9

      9.2

      4.8

      3.8

      Electricity            

      10.17

      9.7

      4.2

      7.1

      7.1

      Cement                  

      1.99

      9.4

      7.0

      10.4

      8.1

      Finished steel (carbon)          

      5.13

      10.6

      4.8

      11.9

      6.1

      Overall                     

      26.68

      9.9

      4.5

      8.9

      6.2

      Source of data: Concerned Ministries/Departments/Organization(s)

       

       

       

       

       

       

       

       

       

      Month

      INDEX

      Growth Rates (%)

       

      2005-06

      2006-07

      2007-08

      2006-07

      2007-08

      April

      195.6

      211.0

      224.1

      7.9

      6.2

      May

      200.7

      216.3

      232.6

      7.8

      7.5

      June

      196.5

      212.8

      220.9

      8.3

      3.8

      July

      193.1

      214.2

      228.7

      10.9

      6.8

      August

      198.2

      211.3

      230.8

      6.6

      9.2

      September

      192.7

      213.1

      224.8

      10.6

      5.5

      October

      207.1

      227.6

      237.9

      9.9

      4.5

      November

      202.2

      221.6

      9.6

       

       

      December

      214.5

      232.9

      8.6

       

       

      January

      219.4

      237.5

      8.2

       

       

      February

      205.0

      220.6

      7.6

       

       

      March

      231.1

      254.3

      10.0

       

       

      Apr-October

      197.7

      215.2

      228.5

      8.9

      6.2

      N.B: Indices and Growth rates are provisional

      CRUDE PETROLEUM  PRODUCTION

      Weight: 4.17%

      Month

       

      Production (in Thousand tonnes)

      Growth Rates (%)

      2005-06

      2006-07

      2007-08

      2006-07

      2007-08

      April

      2802

      2752

      2791

      -1.8

      1.4

      May

      2830

      2863

      2818

      1.2

      -1.6

      June

      2792

      2826

      2774

      1.2

      -1.8

      July

      2751

      2863

      2888

      4.1

      0.9

      August

      2411

      2701

      2876

      12.0

      6.5

      September

      2572

      2814

      2794

      9.4

      -0.7

      October

      2679

      2928

      2924

      9.3

      -0.1

      November

      2563

      2815

      9.8

       

       

      December

      2642

      2924

      10.7

       

       

      January

      2770

      2901

      4.7

       

       

      February

      2542

      2666

      4.9

       

       

      March

      2844

      2934

      3.2

       

       

      Cumulative Total (Apr-Oct)

      18837

      19748

      19866

      4.8

      0.6

      Note: 1. Cumulative total may not tally with monthly total;

                 2. Production data and Growth rates are provisional.

      Source: Ministry of Petroleum & Natural Gas

      OUTPUT OF PETROLEUM REFINERY PRODUCTS

      Weight: 2.00%

      Month

       

      Production (in Thousand tonnes)

      Growth Rates (%)

      2005-06

      2006-07

      2007-08

      2006-07

      2007-08

      April

      8947

      10118

      11642

      13.1

      15.1

      May

      9624

      10784

      12393

      12.1

      14.9

      June

      9896

      10940

      12027

      10.5

      9.9

      July

      10096

      11370

      11902

      12.6

      4.7

      August

      10042

      11257

      12178

      12.1

      8.2

      September

      9776

      11082

      11848

      13.4

      6.9

      October

      9719

      11473

      11791

      18.1

      2.8

      November

      9853

      11467

      16.4

       

       

      December

      10754

      11423

      6.2

       

       

      January

      10857

      11854

      9.2

       

       

      February

      10098

      11241

      11.3

       

       

      March

      11089

      12577

      13.4

       

       

      Cumulative Total (Apr-Oct)

      68099

      77025

      83782

      13.1

      8.8

      Note: 1. Cumulative total may not tally with monthly total

                2. Output and Growth rates are provisional.

      3.   The figure are estimated on the basis of data on refinery production (in terms of crude throughput)

      Source: Ministry of Petroleum & Natural Gas

      COAL PRODUCTION

      Weight: 3.22%

      Month

      Production (in Million tones)

      Growth Rates (%)

      2005-06

      2006-07

      2007-08

      2006-07

      2007-08

      April

      30.50

      31.53

      31.69

      3.4

      0.5

      May

      30.67

      33.23

      33.54

      8.3

      0.9

      June

      28.54

      31.92

      32.34

      11.8

      1.3

      July

      28.14

      30.70

      31.04

      9.1

      1.1

      August

      29.03

      29.20

      31.74

      0.6

      8.7

      September

      29.42

      29.20

      31.02

      -0.8

      6.2

      October

      32.96

      33.59

      36.67

      1.9

      9.2

      November

      34.69

      36.38

      4.9

         

       

      December

      38.39

      39.50

      2.9

       

       

      January

      38.32

      42.15

      10.0

       

       

      February

      36.90

      39.35

      6.6

       

       

      March

      43.82

      48.49

      10.6

       

       

      Cumulative Total (Apr-Oct)

      209.25

      219.30

      227.59

      4.8

      3.8

      Note : 1. Cumulative total may not tally with monthly total

       2. Production data and Growth rates are provisional.

      Source : Department of Coal

      ELECTRICITY GENERATION

      WEIGHT: 10.17%

      Month

       

      Generation (in Gwh)

      Growth Rates (%)

      2005-06

      2006-07

      2007-08

      2006-07

      2007-08

      April

      50413.2

      53394.9

      58026.7

      5.9

      8.7

      May

      52942.6

      55630.8

      60814.1

      5.1

      9.3

      June

      50948.9

      53450.6

      57078.1

      4.9

      6.8

      July

      49781.1

      54224.2

      58301.0

      8.9

      7.5

      August

      52145.2

      54295.8

      59278.3

      4.1

      9.2

      September

      48694.5

      54289.3

      56641.2

      11.5

      4.3

      October

      52217.7

      57292.5

      59700.2

      9.7

      4.2

      November

      49405.3

      53721.3

      8.7

       

       

      December

      52257.1

      57095.6

      9.3

       

       

      January

      53759.6

      58320.6

      8.5

       

       

      February

      50225.4

      51902.3

      3.3

       

       

      March

      54719.9

      59075.3

      8.0

       

       

      Cumulative Total (Apl-Oct)

      357143.2

      382578.0

      409850.8

      7.1

      7.1

      Note : 1. Cumulative total may not tally with monthly total;

      2. Generation and Growth rates are provisional.

      3. Electricity generation data includes also imports from Bhutan

      Source: Ministry of Power

      CEMENT PRODUCTION

      Weight: 1.99%

      Month 

      Production (Thousand Tonnes)

      Growth Rates (%)

      2005-06

      2006-07

      2007-08

      2006-07

      2007-08

      April

      12240

      13730

      14475

      12.2

      5.4

      May

      12630

      13490

      14760

      6.8

      9.4

      June

      12010

      13410

      14160

      11.7

      5.6

      July

      11160

      12720

      13860

      14.0

      9.0

      August

      11160

      11480

      13340

      2.9

      16.2

      September

      10845

      12630

      13260

      16.5

      5.0

      October

      12218

      13370

      14310

      9.4

      7.0

      November

      11599

      12970

      11.8

       

       

      December

      12968

      14010

      8.0

       

       

      January

      13571

      14550

      7.2

       

       

      February

      12757

      13500

      5.8

       

       

      March

      14650

      15450

      5.5

       

       

      Cumulative Total (Apr-Oct)

      82263

      90830

      98165

      10.4

      8.1

      Note : 1. Cumulative total may not tally with monthly total;

      2. Production and Growth rates are provisional 

      Source : Department of Industrial Policy & Promotion

      FINISHED   (CARBON) STEEL PRODUCTION

      Weight: 5.13%

      Month

      Production (in Thousand Tonnes)

      Growth Rates (%)

      2005-06

      2006-07

      2007-08

      2006-07

      2007-08

      April

      3400

      3823

      3979

      12.4

      4.1

      May

      3358

      3798

      4071

      13.1

      7.2

      June

      3401

      3828

      3824

      12.6

      -0.1

      July

      3385

      3894

      4268

      15.0

      9.6

      August

      3626

      3972

      4310

      9.5

      8.5

      September

      3562

      3941

      4272

      10.6

      8.4

      October

      3861

      4272

      4476

      10.6

      4.8

      November

      3834

      4191

      9.3

       

       

      December

      3948

      4351

      10.2

       

       

      January

      4005

      4345

      8.5

       

       

      February

      3715

      4222

      13.6

       

       

      March

      4295

      4938

      15.0

       

       

      Cumulative Total (Apr-Oct)

      24593

      27528

      29200

      11.9

      6.1

      Note : 1. Cumulative total May not tally with monthly total;

      2. Production Data and Growth rates are provisional.   

      Source: Ministry of Steel

      Topics

      ActsIncome Tax