CENVAT credit conditions updated: Abatement rates altered and motorcab, contract carriage credit rules clarified.
Amendments to Notification No.26/2012 revise abatement entries and prescribe that CENVAT credit on inputs, capital goods and input services used for providing the taxable service has not been taken under the CENVAT Credit Rules, 2004; they redefine certain transport service descriptions (substituting "motorcab" and inserting contract carriage/radio taxi), detail permissible CENVAT credit treatment for renting of motorcab input services depending on supplier taxation, and fix specified effective dates for several changes.

Excise duty rate change: tariff table amended to redefine goods eligible for concessionary treatment without cenvat credit.
Amendments to the Central Excise notification, under section 5A, modify the Table governing goods eligible for a concessionary effective duty rate when cenvat credit is not availed by inserting a tariff entry for gloves specially designed for sports, omitting an existing serial entry at serial number 63, inserting an entry for polyester staple fibre or filament yarn manufactured from plastic scrap or waste, substituting the description for sewing machines to specify non-electric sewing machines, and omitting the entry at serial number 104.

Authorisation validity for SEZ services tied to Form A-1 verification; providers may supply on Form A-1 pending authorisation.
Authorisation for provision of specified services to SEZ Units or Developers is valid from verification of Form A-1 by the Specified Officer; if Form A-1 is not submitted to the Assistant or Deputy Commissioner within fifteen days of such verification, validity commences from the date of submission. Providers may supply services on Form A-1 pending formal authorisation, but the SEZ Unit or Developer must provide the authorisation copy immediately; failure to provide it within three months from the date services were deemed supplied shifts service tax liability to the provider.

Service tax exemption amendments expand and recast exempt services, redefining educational, hotel, waste treatment and commodity exemptions.
The amendment revises the Mega Exemption Notification by inserting an exemption for Common Bio medical Waste Treatment Facility services to clinical establishments, substituting and omitting multiple exemption entries to redefine coverage for educational institutions (including student transport, catering, security, cleaning and examination services), hotels with declared tariffs below a specified threshold, specified agricultural inputs and commodities, non airconditioned contract carriage exclusions, municipal services, and loading/unloading/warehousing of rice and cotton; it also adds exemptions for certain services received from abroad and introduces a defined life micro insurance product, while updating key definitions including "educational institution", "life micro insurance product", "radio taxi" and "recognised sports body".

Issuance of equity shares against payable funds permitted for non-residents subject to FDI caps, pricing rules and tax netting.
Amendment permits issuance of equity shares to non-residents against funds payable by the investee company where remittance does not require prior FEMA permission, subject to extant FDI sectoral caps and pricing guidelines as amended by the Reserve Bank, and subject to applicable tax laws with conversion net of taxes.

Related party definition amended: "and holds" replaces "or holds" to clarify statutory scope and resolve drafting error.
The Companies (Removal of Difficulties) Fifth Order, 2014 substitutes the word "and holds" for the inadvertent "or holds" in sub-clause (v) of clause (76) of the Companies Act definitions, effective on publication, thereby correcting the definition of related party to reflect the intended conjunctive meaning.

Default authorised services updated to include Business Support Service, Transport Passengers by Air and Accommodation Service.
The Department of Commerce expanded the uniform list of default authorised services for Special Economic Zones by adding Business Support Service, Transport Passengers by Air, and Accommodation Service to the previously conveyed list of 63 services. Development Commissioners and Unit Approval Committees may further expand the list to facilitate Units and Developers within their Zones.

Warehousing station designation under Section 9 enables establishment of a 100% Export Oriented Unit at Davni industrial area.
A warehousing station is designated at Plot No. 95 HPSIDC Industrial Area, Davni, Nalagarh, Distt. Solan, Himachal Pradesh to facilitate establishment of a 100% Export Oriented Unit; the designation is made under delegated powers pursuant to Section 9 of the Customs Act, 1962 and operates to classify the site as a customs-controlled warehousing location for EOU purposes.

Organic sugar export policy: allowed without quantity ceiling while requiring certification and prior registration.
Amendment removes the quantitative ceiling on organic sugar exports while sugar exports remain free, includes organic sugar within the definition of sugar, and requires organic sugar to be certified as organic and for export quantities to be registered through the online DGFT system; pharmaceutical-grade and speciality sugars remain exempt from registration.

Anti-dumping duty extension on steel and fibre glass tapes from China maintained pending completion of statutory review procedures.
Extension of an existing anti-dumping duty on imports of steel and fibre glass tapes and their parts and components from the People's Republic of China is ordered pending completion of a statutory review initiated under the Customs Tariff Act and the Customs Tariff Rules; the Central Government amended the principal notification to specify the continued period in force while the review proceeds.

Import prohibition for foie gras enacted, converting prior free import allowance into a statutory ban.
Import policy for foie gras under EXIM Code 0207 43 00 in Chapter 2 of ITC (HS) 2012, Schedule I is revised from 'free' to prohibited. The notification declares that while fatty livers, fresh or chilled remain free generally, the item specified as 'foie gras' is expressly prohibited and importers must comply with the new import-control status set out in the Schedule I framework.

Exchange Rate Determination: notification sets official foreign currency to rupee conversion rates for import and export purposes.
Determination under section 14 of the Customs Act, 1962 fixes official rupee conversion rates for specified foreign currencies to be applied for customs valuation of imported and export goods, prescribing separate figures for import and export purposes in two attached Schedules, and superseding the immediately preceding exchange rate notification except as to completed actions.

Overseas direct investment compliance: mandatory use of Form ODI with specified valuation and reporting obligations to regulators.
Amendments require Indian parties and resident individuals to use the prescribed Form ODI for overseas direct investments, including submission of Part I to authorised dealers and filing Parts I and II with the Reserve Bank within thirty days; Part III Annual Performance Reports based on audited JV/WOS accounts must be submitted annually. Valuation requirements accompany remittance applications with specified provider standards, bidding and acquisition remittances and reporting must follow Form ODI procedures, and proprietary concerns need prior Reserve Bank permission via Part I of Form ODI to accept foreign shares subject to specified limits.

Common Adjudicating Authority assignment: show cause notice transferred to the designated Commissioner for adjudication proceedings.
Pursuant to the Notification issued under the Customs Act, the Board assigns the Show Cause Notice in the matter of M/s KY Enterprises and others to the Commissioner, Inland Container Depot (ICD), Tughlakabad, New Delhi, for the purpose of adjudication, thereby designating the Commissioner as the Common Adjudicating Authority and notifying relevant enforcement and customs offices of the transfer for coordination and service.

Common Adjudicating Authority assignment: customs show cause notice transferred for adjudication to Port Imports Commissioner at Nhava Sheva.
The Board assigns a Show Cause Notice issued by the investigative agency to the Commissioner of Customs (Port-Imports), Jawaharlal Nehru Custom House, Nhava Sheva for adjudication, effectuating formal transfer of the case against M/s Daikin Airconditioning India Pvt. Ltd. and directing transmission of the assignment to the issuing unit, relevant customs offices, and the designated electronic contact for information and further action.

Assignment of adjudication: Show cause notice transferred to the designated customs adjudicating authority for adjudication.
The Board assigns the show cause notice issued by the Directorate of Revenue Intelligence in the case of M/s MS International and others to the Commissioner of Customs (Export), Air Cargo Complex, Sahar, Andheri (East), Mumbai for the purpose of adjudication, with copies sent to the originating DRI unit, the recipient Commissioner of Customs (Export), the Additional Commissioner at the inland container depot, and the departmental web administrator.

Assignment of adjudication under Customs Act: show cause notice reassigned to designated Commissioner for adjudication.
Under Notification No.15/2002-Customs (N.T.) issued under sub-section (1) of section 4 of the Customs Act, 1962, the Board assigns Show Cause Notice F. No. DRI/MZU/D/Inv-09/2013-14 issued by the Additional Director General, DRI Mumbai in the matter of M/s Hero Traders (taken over by M/s JKB Rightways Exim Pvt. Ltd.) and others to the Commissioner of Central Excise and Customs (in-charge: ICD, Loni), Ghaziabad for adjudication.

Common Adjudicating Authority appointed to adjudicate misuse of export incentive schemes following a DRI show cause notice.
The Board, under Notification No.15/2002 Customs (N.T.) read with section 4(1) of the Customs Act, assigns for adjudication the Show Cause Notice dated 16.05.2014 issued by the Directorate of Revenue Intelligence, Mumbai Zonal Unit, concerning alleged misuse of export incentive schemes by a group of firms in export of fabrics, and appoints the Commissioner of Customs (Export), Jawaharlal Nehru Custom House, Nhava Sheva, as the Common Adjudicating Authority, with notice circulated to relevant Customs formations for procedural follow up.

Common Adjudicating Authority appointment: Show Cause Notice assigned to Commissioner of Customs for adjudication under Customs Act.
A Show Cause Notice issued by the Directorate of Revenue Intelligence is assigned for adjudication to the Commissioner of Customs (Import), Air Cargo Complex, Sahar, Andheri (East), Mumbai under the Notification issued under Customs (N.T.) and the Customs Act, effecting a jurisdictional transfer of the specified proceeding to that Commissioner as Proper Officer for adjudication.

Appointment of Common Adjudicating Authority assigns Commissioner to adjudicate show cause notice issued by revenue intelligence.
The Board designates the Commissioner of Customs, Hyderabad-II Commissionerate, as the Common Adjudicating Authority to adjudicate the Show Cause Notice issued by the Directorate of Revenue Intelligence in relation to M/s Adroit Bio Science, transferring the adjudication file for processing, hearing and determination under applicable customs adjudication procedure.