File Content -
(Amendments upto 30.10.2015 only applicable for May ’16 Exams)
S.No Chapter Nature Page
1. Central Excise EC & SHEC not applicable 3
2. Levy of Central Excise Change in ED Rate 3
3. Valuation of Goods under Central Excise Place of Removal in case of Exports 3
4. Valuation of Goods under Central Excise Determination of Value if price is less than Manufacturing
5. Central Excise Procedures Centralised Registration 3
6. Central Excise Procedures Procedure for Centralised Registration 3
7. Central Excise Procedures Electronic Maintenance /Authentication 3
8. Central Excise Procedures Registered Importer included for compliance 3
9. Central Excise Procedures Invoice Rules 3
10. Central Excise Procedures Digital Signature of Invoice 3
11. Central Excise Procedures Additional Contents of Invoice 4
12. Central Excise Procedures Late Fee for filing Returns 4
13. Remission of Duty under Central Excise Bond / LoU for removal at Concessional Rate of Duty 4
14. Procedures under Central Excise “Export” for Rebate / Exemption 4
15. Administration under Central Excise Jurisdiction of PDGCEI 4
16. Administration under Central Excise Guidelines for issue of Summons for ED / ST 4
17. Service Tax Change in ST Rate 5
18. Service Tax Swachh Bharat Cess w.e.f.15.11.2015 at 0.5% 5
19. Service Tax Consideration for Service Tax purposes 5
20. Service Tax Chit Services liable for Service Tax 5
21. Service Tax – Negative List Support Services 5
22. Service Tax Government definition 5
23. Service Tax – Negative List Example of Services to RBI 5
24. Service Tax – Negative List Yoga included under Charitable Activity 5
25. Service Tax – Negative List Alcoholic Liquor manufacture liable for ST 5
26. Service Tax – Negative List Amusement Park omitted from Negative List 6
27. Service Tax – Negative List Ambulance Service Exempt 6
28. Service Tax – Negative List Certain Construction / Maintenance Services to Govt /Local
Authority, Govt Authority liable for ST
29. Service Tax – Negative List Construction of Port / Airport liable for ST 6
30. Service Tax – Negative List Abatement Rates for Transportation of Passengers 6
31. Service Tax – Negative List Land Customs Station included in the Exemption list of GTA 6
32. Service Tax – Negative List Transportation Exemption withdrawn 6
33. Service Tax – Negative List Abatement for Transportation of Goods 6
34. Service Tax – Negative List Abatement for Ancillary to GTA Services 6
35. Service Tax – Negative List Chit Fund No abatement 7
36. Service Tax – Negative List Intermediary – New Taxable Services 7
37. Service Tax – Negative List Exemption for Intermediary at Rural Area – Banking and
38. Service Tax – Negative List Betting, Gambling, Lottery – Exclusions 7
39. Service Tax – Negative List Folk Artist, etc. Monetary Limit T
40. Service Tax – Negative List Life Insurance Schemes exempt from ST T
41. Service Tax – Negative List Specified Pilgrimage Services exempt T
42. Service Tax – Negative List Specified Services exempt T
43. Service Tax – Negative List Taxable Telephone Services T
44. Service Tax – Negative List Services against Duty Credit Scrips exempt 8
45. Service Tax – Reverse Charge
Mechanism Person liable for ST for Reverse Charge, Aggregator, etc. 8
46. Service Tax – Reverse Charge
Mechanism Inclusions under Complete Reverse Charge Services 8
47. Service Tax – Reverse Charge
Mechanism Abatement Rate for GTA 8
48. Service Tax – Procedures Person liable for ST Registration 8
49. Service Tax – Procedures Procedure for ST Registration 8
50. Service Tax – Procedures Authentication & Preservation of ST related Documents V
51. CENVAT Credit Rules CENVAT Time Limit 9
52. CENVAT Credit Rules Time Limit exclusions 9
53. CENVAT Credit Rules CENVAT Availment 9
54. CENVAT Credit Rules EC and SHEC Credit can be utilized for BED / ST Payment 9
55. CENVAT Credit Rules CENVAT Credit for Goods bought directly from Dealers –
Direct Delivery / In Transit Sale
56. CENVAT Credit Rules Direct Delivery of Goods to Job Worker 10
57. CENVAT Credit Rules Transfer from one Job Worker to another, etc. 10
58. CENVAT Credit Rules Adhoc Rate increased 10
59. CENVAT Credit Rules Exempted Goods inclusion in definition 10
60. CENVAT Credit Rules Effect of wrong CENVAT Credit Availment, etc. 10
61. Authority for Advance Rulings Application to AAR – Resident Firms included 10
62. Demand & Recovery , Refund, Drawback Issue of SCN not required in certain cases 10
63. Demand & Recovery , Refund, Drawback Time Limit for SCN issue 10
64. Demand & Recovery , Refund, Drawback Waiver of SCN 11
65. Demand & Recovery , Refund, Drawback Payment of Duty before SCN 11
66. Demand & Recovery , Refund, Drawback Recovery Proceedings applicable for Non–Payment / Short–
Payment of Duty
67. Demand & Recovery , Refund, Drawback Drawback 11
68. Offences, Prosecution & Penalties Penalty Provisions 11
69. Appeals & Revision Issues of Recurring Nature – Appeals by Department 11
70. Settlement Commission Settlement Commission 11
Latest Amendments at a Glance
S.No Issue Description
1. EC & SHEC
w.e.f. 01.03.2015 All goods falling under the First Schedule to CETA, 1985 shall be exempt
from the levy of Education Cess and Secondary & Higher Education Cess. [Notfn. 14/2015 &
15/2015–CE, dated 01.03.2015 ]
2. ED Rate BED Rate is as specified in Schedule I [w.e.f 01.03.2015 Rate is 12.50%]
3. Place of
1. In case of Direct Export by Manufacturer, Place of Removal = Port / ICD / CFS, where
Shipping Bill is filed by the Manufacturer Exporter and Goods are handed over to the
2. In case of Export through Merchant Exporter, Place of Removal = Place where the
Property in the Goods passes from the Manufacturer to the Merchant Exporter. Generally, it
would be the Factory Gate. [C.No.999/6/2015–CX, dt 28.02.2015]
4. Value if Price
< Mfrg Cost
Value of goods is deemed as Transaction Value, in case of –
[Notfn. 20/2014–CE (NT) dated 11.07.2014]
1. Price is less than Manufacturing Cost and Profit, and
2. No Additional Consideration is flowing directly or indirectly from the Buyer to such Assessee.
Note: Ruling in FIAT Case nullified by this amendment.
Manufacturers of Aluminium Roofing Panels, which are consumed at the site of manufacture for
execution of the Project, can opt for Centralised Registration, subject to conditions.
[Notfn.17/2015–CE (NT), dt 08.06.2015]
RC shall be issued within 2 days from the date of receipt of Application, complete in all respects.
Verification of Documents and Premises to be carried out after the grant of Registration. Other
conditions, e.g. Physical Verification, Documents to be submitted, etc. are applicable.
[Notfn.7/2015 – CE (NT) dt 01.03.2015]
W.e.f. 01.03.2015 Records u/r 10 may be preserved in electronic form. In such case, every page
of the Record so preserved shall be authenticated by means of a Digital Signature. CBEC may notify
the conditions, safeguards and procedure to be followed by an Assessee preserving digitally signed
records. [Notfn.8/2015 – CE (NT) dt 01.03.2015]
1. w.e.f. 01.03.2015 Registered Importer is also liable to maintain records under CER/ CCR,
provide List of Records, and submit the same for audit purposes, under Rule 22 of CER.
2. Registered Importer is also liable for misuse of CENVAT Credit, evasion and default in payment
of ED, under Rules 12AAA of CCR, and Rule 12CCC of CER.
9. Invoice Rules Invoicing Rules is also applicable for Importer issuing Invoice on which CENVAT Credit can be
An Invoice may be authenticated by means of a Digital Signature. However, if the Duplicate copy
of the Invoice meant for Transporter is digitally signed, a hard copy of such duplicate copy self
attested by the Manufacturer would be used for transport of the Goods. [Notfn.8/2015 – CE
(NT) dt 01.03.2015]
Situation Additional Details in the Invoice
In case of Proprietary
Name of the Individual / HUF
Goods are directly
sent to a Job Worker
on the direction of a
Details of Manufacturer / Service Provider as the Buyer,
Details of the Job Worker as the Consignee.
Goods are directly sent
to any person on the
direction of the
Details of the Registered Dealer as the Buyer,
Details of the Person as the Consignee.
If Imported Goods are
directly sent to
Invoice issued by the Buyer shall mention that goods are directly
sent from the place or port of import to the Buyers’ premises.
12. Late Fee for
Belated filing of –
Late Fee for each Return / Statement
1. Returns: ER–1 /
ER–2 / ER–3 /
2. Annual Financial
3. Annual Installed
` 100 per day, subject to maximum ` 20,000.
[Notfn.8/2015 – CE (NT) dt 01.03.2015]]
Bond / LoU for
Rate of Duty
9/2015 –CE (NT) dt
Submission of Bond / LoU
1. No SCN has been
issued u/s 11A(4)
/ (5) of CEA, or
2. No action
issued u/r 12CCC
of CER / 12AAA
If the conditions are –
satisfied – then submit LoU (Letter of Undertaking)
not satisfied – then submit Bond
For the purposes of claiming exemption / rebate, Export means taking Goods out of India to a place
outside India, and includes shipment of goods as provision / Stores for use on–board a Ship
proceeding to a Foreign Port, or supplied to a Foreign Going Aircraft. [Rule 18, Notfn.No.8/2015 dt
So, Clearances from DTA to SEZ is eligible for Rebate under CER / Refund of CENVAT Credit under
CCR. [C.No.1001/8/2015 dt 24.08.2015]
15. Jurisdiction of
The Principal Director General of Central Excise Intelligence shall have jurisdiction over the
Principal Commissioner / Commissioner of Central Excise / Service Tax, for the purpose of
assigning the show cause notices for adjudication. [Notfn. No.2/2015 dt. 10.02.15]
ED / ST
1. Power to issue summons are generally exercised by Superintendents, though higher officers
also issue summons.
2. Summons by Superintendents should be issued after obtaining prior written permission
from AC / DC or above Officers. The reasons for issuance of summons must be recorded in
3. Where for operational reasons it is not possible to obtain such prior written permission, oral
/ telephonic permission from such Officer must be obtained, and the same should be
reduced to writing and intimated to the Officer according such permission, at the earliest
4. In all cases, where summons are issued, the Officer issuing summons should submit a report
or should record a brief of the proceedings in the case file and submit the same to the
Officer who had authorised the issue of summons.
5. Summons to the Senior Officials such as CEO, CFO, General Managers of large Companies
and PSUs can be issued only when there are indications in the investigation.
[Instruction F. No. 207/07/2014-CX-6 dated 20.01.2015]
17. ST Rate w.e.f. 01.06.2015: ST 14% of Taxable Value of Service. [EC & SHEC not applicable from this
date.] [Notfn. No.14/2015 dt. 19.05.15]
Sec. 119 of FA 2015 has empowered Central Govt to impose a Swachh Bharat Cess on all or
any of the Taxable Services, at a Maximum Rate of 2%. It shall be levied w.e.f. 15.11.2015 at
0.5%. [Notfn. No.21/2015 & 22/2015 dt. 06.11.2015] – Not applicable for M 16 Exam
1. any reimbursable expenditure or cost incurred by the Service Provider and charged,
in the course of providing or agreeing to provide a Taxable Service, except in
circumstances, and subject to such conditions, as may be prescribed.
2. any amount retained by the Lottery Distributor or Selling Agent from Gross Sale
Amount of Lottery Ticket in addition to the Fee or Commission, if any, or, as the case may
be, the Discount Received, that is to say, the difference in the Face Value of Lottery Ticket
and the price at which the Distributor or Selling Agent gets such Ticket.
[Notfn. No.7/2015 dt. 01.03.2015]
w.e.f. 14.05.2015 Service includes any activity carried out, for a consideration, in relation to,
or for facilitation of, a transaction in Money or Actionable Claim, including the activity carried out
by a –
1. Lottery Distributor / Selling Agent in relation to promotion, marketing, organising, selling of
Lottery or facilitating in organising Lottery of any kind, in any other manner,
2. Foreman of Chit Fund for conducting or organising a Chit in any manner.
(a) Lottery Distributor / Selling Agent means a person appointed or authorised by a State
for the purpose of promoting, marketing, selling or facilitating in organising Lottery of any
kind, in any manner, organized by such State as per the Lotteries (Regulation) Act, 1998.
(b) Foreman of Chit Fund shall have the same meaning as per Sec.2(j) of the Chit Funds Act,
Support Services provided by Government to Business Entities is taxable under Reverse
Charge. The term Support Services to be changed to “Any Services”. (w.e.f. date yet to be
2. Union Territory,
Any Entity, whether created by a Statute or otherwise, the accounts of
which are not required to be kept in accordance with Article 150 of the
Constitution or the Rules made thereunder.
Any Service provided to the RBI is liable for ST. [Example: Agency Services by any Bank to the
RBI, for which Fee / Commission / other Consideration is received by the Agent Bank is still liable
for ST.] [Sec.66F(1) Illustration]
24. Yoga included Charitable Activities eligible for ST Exemption include advancement of religion or spirituality or
liable for ST
1. Any process amounting to manufacture of goods (w.e.f. 01.06.2015 excluding Alcoholic
Liquor for Human Consumption) are exempt from ST under the Negative List.
2. W.e.f. 01.06.2015, manufacture of Alcoholic Liquor for Human Consumption shall attract
ST. (whether intermediate process or the entire process itself)
[Notification No. 6/2015–ST, dated 01.03.2015]
W.e.f. 01.06.2015 The Service “Admission to Entertainment Event or access to Amusement
Facility” is omitted from the Negative List. Thus, it becomes fully taxable. However, the following
events continue to be exempt [Notification No. 6/2015–ST, dated 01.03.2015] –
1. Exhibition of Cinematographic Film, Circus, Dance, Or Theatrical Performances including
Drama or Ballet.
2 Recognized Sporting Events. [Note: "Recognised Sporting Event" means any Sporting Event,
organised by a Recognised Sports Body where the participating team or individual represent
any District, State, Zone or Country, or those Sporting Events where Sponsorship of the same
is exempt under Notfn.25/2012–ST.]
3 Concerts, Pageants, Award Functions, Musical Performances or Non–Recognized Sporting
Events where the consideration for such admission is upto ` 500 per person.
W.e.f. 01.04.2015 Ambulance Services provided by any Service Provider is exempt from ST.
[Notification No. 6/2015–ST, dated 01.03.2015]
to Govt /Local
Exemption available for Construction / Maintenance Services provided to the Government /Local
Authority / Govt. Authority in respect of the following items withdrawn w.e.f. 01.04.2015
1. A Civil Structure or any other Original Works meant predominantly for use other than for
commerce, industry, or any other business or profession,
2. A Structure meant predominantly for use as – (i) an Educational, (ii) a Clinical, or (iii) an Art
or Cultural establishment,
3. A Residential Complex predominantly meant for self–use or the use of their employees or for
MPs / MLAs / Other Persons holding post due to the Constitution / Chairperson / Member /
Director of a Body established by the Central Government / State Government.
[Notification No. 6/2015–ST, dated 01.03.2015]
29. Constrn Port /
w.e.f 01.04.2015 Exemption for Construction / Installation of Original Works provided in
relation to Airport / Port has been withdrawn [[Notification No. 6/2015–ST, dated
Nature of Service Abatement Taxable
Transport of Passengers with or without
accompanied belongings by Rail
Transport of Passengers by Air, with or
without accompanied belongings –
(a) in Economy Class
(b) in other than Economy Class
Renting of any Motor Cab (Note 3) 60% 40%
Transportation of Passengers with or without
accompanied belongings by –
(a) a Contract Carriage other than Motorcab,
or (b) a Radio Taxi
31. Land Customs
Exemption available for Transport of Export Goods by road from the place of removal to ICD,
CFS, Port, Airport, w.e.f 01.04.2015 Land Customs Stations. (Notfn. 4/2015–ST dt
w.e.f 01.04.2015 Exemption for Transportation of Tea, Coffee, Jaggery, Sugar, Milk Products,
and Edible Oil excluding Alcoholic Beverages, by a GTA, or by Rail or a Vessel is withdrawn.
[Notification No. 6/2015–ST, dated 01.03.2015]
Nature of Service Abatement Taxable
Transport of Goods by Vessel 70% 30%
Transport of Goods by Railways 70% 30%
Transport of Goods by Goods Transport
If ancillary services are provided in the course of transportation of goods by road and the charges
for such services are included in the Invoice issued by the GTA, and not by any other person,
such Services would form part of GTA Service and, therefore, the abatement of 70%, presently
applicable to GTA Service, would be available on it. (Circular No.186/5/2015–ST, dt.
35. Chit Fund No
Abatement for Services by Chit Funds is removed. [Notification No.8/2015–ST, dtd
w.e.f. 01.04.2015 the Following Services are taxable [Notification No. 6/2015–ST, dated
1. Mutual Fund Agent to a Mutual Fund or Asset Management Company,
2. Distributor to a Mutual Fund or Asset Management Company,
3. Selling or Marketing Agent of Lottery Tickets to a Distributor or a Selling Agent.
Rural Area –
Notfn.No.20/2015 – ST dated 21.10.2015: Exemption is available as under –
1. Business Facilitator or a Business Correspondent to a Banking Company with respect to a
Basic Savings Bank Deposit Account covered by Pradhan Mantri Jan Dhan Yojana in
the Banking Company’s Rural Area Branch, by way of account opening, cash deposits,
cash withdrawals, obtaining e–life certificate, Aadhar seeding,
2. Services by any person as an Intermediary to a Business Facilitator or a Business
Correspondent with respect to the above services,
3. Business Facilitator or a Business Correspondent to an Insurance Company in a rural
Note: Basic Savings Bank Deposit Account means an account opened under relevant RBI
w.e.f. 01.06.2015, Betting, Gambling or Lottery does not include –
1. Activity relating to use of money or conversion of currency, for which separate consideration is
2. Activity / Services relating to Lottery Distributor / Selling Agent,
3. Activity / Services of Foreman of a Chit Fund
w.e.f 01.04.2015, Services by Artist in Folk or Classical Art forms of music, dance, theatre, is taxable if
Consideration > ` 1 Lakh. [Note: Earlier, no monetary limit.] [Notification No. 6/2015–ST, dated
1. Pradhan Mantri Suraksha Bima Yojana, w.e.f. 30.04.2015
2. Pradhan Mantri Jeevan Jyoti Bima Yojana, w.e.f. 30.04.2015
3. Pradhan Mantri Jan Dhan Yojana, w.e.f. 30.04.2015
4. Varishtha Pension Bima Yojana w.e.f. 01.04.2015
[Notification No. 12/2015–ST, dated 30.04.2015]
Services provided by following Specified Organisations in respect of a religious pilgrimage
facilitated by the Ministry of External Affairs, under bilateral arrangement, is exempt from ST.
1. Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand Undertaking or
2. Haj Committee of India and State Haj Committees constituted under the Haj Committee Act,
2002, for making arrangements for the pilgrimage of Muslims of India for Haj.
1. Services by operator of Common Effluent Treatment Plant by way of Treatment of Effluent.
2. Services by way of pre–conditioning, pre–cooling, ripening, waxing, Retail Packing, labelling of
fruits & vegetables which do not change or alter the essential characteristics of the Fruits or
3. Services by way of Admission to a Museum, National Park, Wildlife Sanctuary, Tiger Reserve or
4. Service provided by way of exhibition of Movie by an Exhibitor to the Distributor or an
Association of Persons consisting of the Exhibitor as one of its Members.
5. Services by way of collection of Contribution under Atal Pension Yojana (APY)
Note: First 4 items w.e.f. 01.04.2015 [Notfn.6/2015–ST] Rth Item w.e.f. 30.04.2015
Services by way of making Telephone Calls from –
1. Departmentally Run Public Telephone,
2. Guaranteed Public Telephone operating only for Local Calls,
3. Free Telephone at airport and hospital where no bills are being issued
An Exporter, located in the Taxable Territory and holding –
Merchandise Exports from India Scheme (MEIS) Duty Credit Scrips, and
Service Exports from India Scheme (SEIS) Duty Credit Scrips.
[Notfn.10 & 11/2015–ST dt 08.04.2015]
for ST for
Nature of Services Person liable to pay ST
1. Services under Complete
Reverse Charge Any person liable for paying ST other than the Service Provider
2. Services under Partial
Service Provider and any person liable for paying ST other than
the Service Provider
3. Services involving
Aggregator in any manner
& such Aggregator –
is located in India Aggregator
does not have physical
presence in the Taxable
Territory, but has a
Person representing the Aggregator
has no physical presence
or any Representative in
the Taxable Territory
Person appointed by him for paying ST
Service Person liable to pay ST
1. Supply of Manpower for
any purpose / Security
Services by an Individual
/ HUF / Partnership Firm
(Regd. or not) / AOP
Business Entity registered as a Body Corporate, located in the
2. Service provided by
Mutual Fund Agent /
Distributor to Mutual
Fund / Asset Mgmt
Mutual Fund / Asset Management Company
3. Service provided by
Selling / Marketing Agent
of Lottery Tickets to
Lottery Distributor /
Lottery Distributor / Selling Agent
4. Service provided by a
Person involving an
Person liable to pay ST is as specified in previous item above.
Rate for GTA Service Receiver is liable to pay ST on 30% of the Gross Amount charged. (i.e. 70% abatement)
w.e.f. 01.03.2015 Any person other than the Service Provider, in case of Reverse Charge
Mechanism, where he is liable for Service Tax – should register under ST within 30 days from the
date on which ST is levied or Business is commenced, whichever is later.
1. w.e.f. 01.03.2015 RC shall be granted within 2 days from the date of receipt of
Application, complete in all respects. Submission of Physical Documents for Registration is
dispensed with. [Notfn. 5/2015–ST dt 01.03.2015]
2. Verification of Documents and Premises to be carried out after the grant of Registration.
Physical Verification of Premises, if there arises any need for the same, will have to be
authorized by an Officer not below the rank of AC / DC.
of ST related
1. Digital Signature: Any Invoice, Bill or Challan issued u/r 4A or Consignment Note issued
u/r 4B may be authenticated by means of a Digital Signature. CBEC may notify the
conditions, safeguards and procedure to be followed for issuing digitally signed Invoices.
[Notfn. 5/2015–ST dt 01.03.2015]
2. Preservation of Records [Rule 5(3)]:
(a) Minimum Period: 5 Years immediately after FY to which such Records pertain.
(b) E–Form: Records u/r 5 may be preserved in Electronic Form and every Page of the
Record so preserved would be authenticated by means of a Digital Signature. CBEC may
specify the conditions, safeguards and procedure for preserving digitally signed records.
51. CENVAT Time
W.e.f. 01.03.2015 CENVAT Credit shall be availed within 1 year from date of Invoice. [Notfn.
6/2015 CE(NT)] [Note: Earlier limit was 6 months, now increased to 1 year.]
52. Time Limit
Time Limit of 1 year for CENVAT Credit availment shall not apply when re–credit is taken of the
amount reversed under CCR, e.g. (a) Late Payment of ST Invoice, (b) Inputs / CG written off
in Books, later used, (c) Late Receipt of Inputs from Job Worker, etc. [C.No.990/14/2014 dt
19.11.2015] – Not applicable for May 16 Exam
W.e.f. 01.04.2015 For Input Service (Partial / Full Reverse Charge Basis), CENVAT Credit can
be availed at the Date of Payment of ST.
EC and SHEC
Credit can be
BED / ST
Availability Can be used payment of
Credit Respective Duty EC, SHEC only.
on / after
Credit Basic Excise Duty
of Credit Basic Excise Duty
Note: Notfn. 12/2015–CE(NT) dt. 30.04.2015] provides the above facility w.e.f 01.03.2015,
for Excise Duty. Notfn.No. 22/2015–CE(NT) dt. 29.10.2015 extends the same benefit of
using EC and SHEC towards Payment of Service Tax, the relevant date being 01.06.2015
(instead of ED Relevant Date 01.03.2015)
/ In Transit
1. Where a Dealer negotiates sale of an entire consignment from a Manufacturer /
Registered Importer and orders direct transport of goods to the Consignee, credit can be
availed by the Consignee on the basis of Invoice issued by the Manufacturer or Registered
Importer. In such cases, no CENVATable Invoice shall be issued by the Dealer.
2. Where a Registered Dealer negotiates sale of goods from the Total Stock ordered on a
Manufacturer or an Importer to multiple buyers, and orders direct transportation of goods
to the Consignees and the Manufacturer or the Importer is willing to issue individual Invoices
for each sale in favour of the Consignees for such individual sale, the same procedure shall
3. Similar procedure would also apply for sale by a Registered Importer to an end–user from
the Port / Warehouse. For such movement, the fact of such direct transport to the Buyer’s
Premises should be recorded in the Invoice.
4. If the goods are directly sent to any person on the direction of the Registered Dealer, the Invoice
shall also contain the details of the Registered Dealer as the Buyer and the person as the
Consignee, and that person shall take CENVAT credit on the basis of the Registered Dealer’s
5. If the goods imported under the cover of a Bill of Entry are sent directly to Buyer’s Premises,
the Invoice issued by the Importer shall mention that goods are sent directly from the place
or port of import to the Buyer’s Premises. [C. No. 1003/08/2015–CX dt. 05.05.15]
of Goods to
W.e.f. 01.04.2015 Credit shall be allowed even if any Capital Goods are directly sent to Job
Worker without their being first brought to the premises of Manufacturer / Service Provider. In
such case, time limit shall be counted from the date of Receipt by the Job Worker.
for Rule 4(5)(a)
The Manufacturer / Output Service Provider can avail CENVAT Credit on Inputs, even if such
inputs are removed as such or after partially processed, to the Job Worker premises or from one
Job Worker to another Job Worker.
1. Such Manufacturer / Output Service Provider should prove that these goods are received
back from the Job Worker within 180 days of original removal. For this purpose, sufficient
records / documents / memos shall be produced by the Manufacturer / Output Service
2. If the Inputs are directly sent to the Job Worker premises, then 180 days shall be counted
from the date of receipt of such inputs into the Job Worker premises.
3. The above facility of CENVAT credit availment is available even in respect of Capital Goods, if
the Capital Goods are received back within 2 years from the date of original removal to Job
In case of Manufacturer/ Service Provider, producing / providing excisable goods / taxable
services, as well as and exempted goods / services, he can avail full CENVAT Credit but pay 7%
on the value of Exempted Goods and Exempted Services. [Note: Earlier Rate was 6%] w.e.f.
1. “Exempted Goods / Final Products” shall include Non–Excisable Goods cleared for a
consideration from the Factory. EImpact: This is specifically for the purpose of calculation of
reversal of credit in relation to exempted goods / exempted services).
2. Value of Non–Excisable Goods = Invoice Value. If Invoice Value is not available, such value
shall be determined using reasonable means consistent with the principles of valuation under
CEA and Rules. [Rule 6(1) – Notfn. No.6/2015 – CE (NT) dt. 01.03.15]
[Rule 14 CCR–
1. CENVAT Credit wrongly availed but not utilized: It shall be recovered from the
Manufacturer / Service Provider by issue of Show Cause Notice.
2. CENVAT Credit wrongly availed and also utilized wrongly / erroneously refunded:
It shall be recovered from the Manufacturer / Service Provider along with interest by issue
of Show Cause Notice.
3. For the above purpose, all credits are assumed to be availed on the last day of the month.
Further, utilization of credits shall be assumed as follows:
(a) Utilisation is assumed to be first out of the Opening Balance
(b) Then, utilization is assumed to be out of the Eligible Credits availed during the period
(c) Finally, the utilization is assumed to be out of the Ineligible Credits.
w.e.f. 01.03.2015, Resident Firms can also apply to AAR. Firm shall have the meaning assigned
to it in Sec.4 of the Indian Partnership Act, 1932 and includes –
1. LLP u/s 2(1)(n) of the LLP Act, 2008,
2. LLP which has no Company as its Partner,
3. Sole Proprietorship i.e. Individual who engages himself in an activity defined u/s 23A(a) of
4. One Person Company u/s 2(62) of the Companies Act, 2013.
Issue of SCN
not required in
1. W.e.f. 14.05.2015 No issue of SCN if the short / non–payment is self–assessed and
declared as Duty payable by the Assessee in the periodic Returns filed by him. In such case,
recovery shall be made in the prescribed manner.
2. Pending Cases where no SCN has been issued prior to 14.05.2015 will be governed by the
amended Sec.11A. Only SCN issued after the enactment of the Finance Bill, 2015 will be
governed by the amended Sec. 11A of CEA.
63. Time Limit for
If only Interest is to be recovered, Time Limit for issue of SCN shall be determined from Due
Date of payment of duty to which such interest relates.
64. Waiver of SCN
In a case involving the extended period of limitation, if an Assessee pays the ED/ST, Interest and
Penalty equal to 15% of the Tax/Duty and makes a request in writing that a written SCN may
not be issued to them, then in such cases, the SCN can be oral and the representation if he
desires can also be oral. In other words, an Assessee can request for an informed waiver of a
written SCN. (F.No.137/46/2015–Service Tax)
65. Pymt of Duty
W.e.f. 14.05.2015 Provisions relating to Voluntary Payment of Duty / ST is applicable, in cases
where the Proper Officer is of the opinion that the payment has been made.
w.e.f. 14.05.2015 Recovery Proceedings are also applicable for Non–Payment / Short–Payment
of Duty declared in the periodic Returns, [i.e. Duty self–assessed by the Assessee, Interest and
Penalty thereon]. [Notfn.8/2015]
1. W.e.f. 22.11.2014 Special Brand Rate [Rule 7] Drawback can be claimed only no claim for
Drawback u/r 3 / 4 has been made. [i.e. no double benefit.]
2. w.e.f. 13.02.2015 Drawback shall be allowed in respect of Rice falling under Heading 1006.
1. Penalty Provisions under Excise, Customs and ST Law have undergone significant
changes, both for Fraudulent Cases, and Non–Fraudulent Cases. w.e.f. 14.05.2015
Penalty cannot be waived under any circumstances, i.e. even if the Assessee proves that
there was reasonable cause for failure.
2. u/s 112/114 CUA, w.r.t Dutiable Goods (other than Prohibited Goods), Reduced Penalty
of 25% of the Penalty Amount is applicable if the Duty and Interest determined by the
Proper Officer u/s 28(8) & 28AA is paid within 30 days from the date of communication of
1. Even if the issue is of recurring nature, the appeals would be preferred only when the
amount involved in the issue exceeds the monetary limit.
2. The term “Case” for the purposes of monetary limit, shall be understood as per the National
Litigation Policy. For example, if the Tribunal disposes multiple appeals by a composite order,
then further appeal can be filed only against those appeals whose amounts are greater than
the monetary limit. [Instruction dt 26.12.2014]
As per Customs and Central Excise Settlement Commission (Recruitment and Conditions of
Service of Chairman, Vice Chairman and Members) Rules, Members of CBEC are not eligible to be
Member of the Settlement Commisssion.