Packaging and bottling of liquor classified as manufacture under excise law, excluding them from service tax liability.
Packaging and bottling of liquor are within the scope of manufacture for purposes of the Central Excise Act when read with the exclusionary provision in the Finance Act, and therefore are not to be treated as a distinct service subject to service tax where those operations are functionally integral to producing the consumable excisable product.

Value of SIM cards treated as part of telecommunication service, making their value subject to service tax.
The court determined that a SIM card is a computer chip essential to receiving mobile telephone service, lacking intrinsic utility apart from enabling connection, and accordingly the value of SIM cards supplied to subscribers forms part of the taxable value of telecommunication service for the purpose of service tax under the Finance Act, 1994.

Import ban lifting on live bird products following diplomatic assurances of contained avian influenza and resumed regulated trade.
Lifting of an import ban on live bird products from India followed diplomatic engagement after a localized avian influenza outbreak; Oman rescinded its blanket prohibition by ministerial decree after being informed that infections were contained, and imports were restored subject to applicable sanitary and regulatory requirements.

Discounts from media not taxable as service value; advertising agencies not liable for service tax on such incentives.
The tribunal held that discounts or incentives from media to advertising agencies are not part of the taxable value of service because the agency did not receive the amount from the media; only amounts received from the client constitute taxable consideration. Accordingly, demands for additional service tax, interest and penalties based on including the media discount in the agency's gross value were set aside. A later amendment to the statutory definition of advertising agency services may affect this position.

Preferential Trade Agreement grants reciprocal tariff concessions between India and Mercosur across multiple industrial and agricultural product lines.
The Preferential Trade Agreement between India and MERCOSUR, effective 1 June 2009, implements reciprocal tariff concessions negotiated under a 2003 Framework and the 2004 PTA with 2005 annexes. Concessions range from ten percent to full elimination across designated tariff lines, covering sectors such as chemicals, pharmaceuticals, machinery, electrical equipment, food and meat products, textiles, leather, plastics and rubber; the PTA uses listed margins of preference to operationalise staged market access commitments.

SEZ approvals: Board granted formal and in-principle clearances for new SEZs and co-developer statuses across sectors.
The Board of Approval recommended eight Formal Approvals and two In-Principle Approvals for SEZs across biotech, IT/ITES, multi-product and multi-services sectors, identified specific developers and sites for formalisation, and approved four co-developer proposals.

Export obligation compliance dictates duty liability on debonding; depreciation applies when capital goods were used for export production.
Cases on de-bonding hold that duty, confiscation and penalty for non-fulfilment of export obligations require a prior definite finding and proper adjudication; procedural lapses alone do not justify demands when statutory approvals for changed use exist. On debonding, capital goods manifestly used in export production or where obligations are partially fulfilled attract depreciation benefit and duty assessed on depreciated value, whereas breach of post-import conditions can disallow notification benefits and render goods confiscable, with remand appropriate where records lack findings.

Deemed exports equivalence: including supplies to EOUs in export calculations affects entitlement to DTA sales under Exim Policy.
Whether supplies treated as deemed exports to 100% EOUs for use as raw materials must be counted as exports when computing entitlement to DTA sales under the Exim Policy. Tribunal authorities, following Amitex Silk Mills, have treated deemed exports to EOUs as export-equivalent for determining DTA sale entitlement, aligning such clearances with the Development Commissioner's permission.

Duty on exit from EOU scheme: stock items attract duty; in-process goods not leviable; import value governs valuation.
Duty at exit from the EOU scheme is payable on imported and indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock; the Foreign Trade Policy does not authorize duty on goods in process, so such demands are not sustainable. For de-bonding, duty may be computed on the value at time of import using the then-adopted dollar rate while applying the rate of duties in force at clearance.

Customs duty exemption allows import of Tamiflu for a government buffer stock to supplement domestic supply.
Customs duty exemption dated 21.05.2009 authorises duty-free import of one million Tamiflu 75 mg capsules by M/s Roche India Ltd on behalf of the Government; Roche will maintain the imported Oseltamivir buffer stock for supply exclusively to the Government, on recommendation of the Department of Health and Family Welfare, to supplement domestic production for H1N1 treatment.

Refund of unutilized input service credit: exporters may claim cash refunds when notification conditions and documentary proof are met.
Refunds of unutilized Cenvat credit on input services are allowable under substituted Rule 5 and Notification No. 5/2006 for export transactions, including claims for periods prior to formal notification issuance, provided exporters satisfy the notification's conditions and documentary requirements; credits on mobile, C&F charges and foreign commission agent services have been held admissible, while services that are output services of the same supplier (e.g., certain business auxiliary services to a principal) are not allowable as inputs.

Special Economic Zones policy promotes export-led investment and local infrastructure to generate employment and export growth.
Special Economic Zones under the SEZ Act 2005 and SEZ Rules 2006 create a statutory regime to promote export-led industrialisation by providing fiscal incentives, quality infrastructure and single-window clearances to attract domestic and foreign investment. The scheme targets increased economic activity, exports, investment, employment and infrastructure development, requires developers to provide local infrastructure, and produces direct and indirect employment and spillover demand for ancillary industries across IT/ITES, multi-product and sector-specific SEZs.

Service tax exemption for services consumed within SEZs now unconditional; refund route applies only when consumed outside SEZ.
Notification No.15/2009 amends Notification No.9/2009 by granting unconditional exemption from service tax for specified taxable services consumed within the SEZ, while preserving a refund route where services are consumed partially or wholly outside the SEZ. Refund claims must be supported by the Approval Committee-approved list of services and documents evidencing payment of service tax; authorities may verify end use. Existing pre audit procedures apply to large claims, an interim ad hoc refund is to be sanctioned promptly for complete claims, and finalisation deadlines of thirty days (maximum forty five days) apply.

Export of service exemption: receipt in foreign currency not required where recipient has no Indian establishment.
Services provided in relation to the business of a recipient located outside India qualify as export of service even if payment is received in Indian currency through an intermediary, so long as the offshore recipient has no commercial or industrial establishment or office in India; the proviso and its conditions apply only where the service recipient maintains a local establishment, in which case payment from that local office may affect the export character.

Tariff valuation of imports fixed for edible oils, brass scrap and poppy seeds as reference values for customs assessment.
The Department of Revenue, via the Central Board of Excise and Customs, has fixed tariff values in US dollars per metric tonne for specified imported commodities for customs valuation: listed edible oils (with values unchanged), Brass scrap (all grades), and Poppy seeds. These tariff values serve as the prescribed reference import values for customs assessment and import taxation.

Services definition under SEZ clarifies tradable services scope, WTO coverage, prescription and foreign exchange requirement.
The term services under the SEZ regime requires that services be tradable, fall within GATS coverage or be prescribed by the Central Government, and earn foreign exchange; rule level guidance then provides an illustrative catalogue including information enabled services, engineering and design, human resources, financial and transport services, offshore banking, professional and business services, health, education, construction, distribution, tourism, and related auxiliary services.

Export oriented unit setup prerequisites ensure compliance with fiscal, environmental and registration requirements for lawful operations.
Establishing an Export Oriented Unit requires project planning covering ownership and foreign participation, product and technology choices, feasibility and financing for capital goods and construction, and detailed production design addressing inputs, capacity, by products and subcontracting. Compliance obligations include company registration, foreign exchange banking, RCMC, sales tax/SSI registration, factory registration and mandatory state clearances (pollution, building approval). Operational compliance extends to customs and excise duties, state levies, power supply arrangements including captive plants, and effluent/waste treatment measures.

EOU/SEZ approval mechanism lists application forms, approval criteria and operational guidelines for units and developers.
The approval framework for setting up Export Oriented Units and Special Economic Zone units requires an application and compliance with criteria for automatic approval, sector specific requirements, prescribed formats for letter of permission and legal agreements, and oversight by a Combined Board of Approvals with monitoring guidelines, DTA sale rules, and CST reimbursement procedures.

Export oriented unit approvals: prescribed application, licence equivalent Letter of Permission enabling procurement and conditions on DTA sales.
Procedures require submission of the prescribed application to the competent authority; non licence proposals are approved by the local approval committee within a short period, while licence dependent proposals require clearance by the approval board and central industrial policy department within a longer period. The Letter of Permission/Intent constitutes a licence for procurement and other statutory purposes and must specify activity, capacity, projected initial export, Net Foreign Exchange Earnings and any limitations on domestic tariff area sales, with such additional conditions as necessary.

Positive net foreign exchange requirement in SEZ units mandates bond agreement and annual reporting to the Development Commissioner.
SEZ units must obtain Development Commissioner approval by submitting the prescribed project proposal; the DC issues Letters of Permission/Intent and monitors performance via an Approval Committee with Zone Customs. Units must meet a positive net foreign exchange earning obligation, execute a Bond cum Legal Agreement with the DC and Deputy Commissioner of Customs, and provide annual reports in the prescribed format. Incentives include customs and excise exemptions for imports and domestic procurement, deemed export treatment for DTA supplies, in house customs clearance, EEFC retention, liberal repatriation and FDI policies, and subcontracting freedoms.