File Content -
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1 0 t h E d i t i o n
2 M a r c h 2 0 1 6
CA Pritam Mahure
This book is a compilation of key Service Tax
Legal provisions (as applicable from 1 July 2012).
Relevant amendments have been shown in red
colour/ track change. Also, Central Excise
provisions which are applicable (vide sec. 83 of
FA’ 1994) to ST legislation are highlighted in
green colour. For feedback/queries readers may
write to capritam@gmail.com
Service Tax -
Negative List
Regime
CA Pritam Mahure
2
Contents
A B O U T T H E B O O K ...................................................... 11
1. N E G A T I V E L I S T – I N A N U T S H E L L ............................ 13
A. In a nutshell ..................................................................................... 13
B. Negative vis-à-vis Positive list regime – A Comparative Analysis ............. 13
C. Rules deleted/ substituted .................................................................. 13
D. Key provisions and effective date ........................................................ 14
E. Abatement (Refer Not. No. 26/2012 and Valuation Rules) ....................... 14
F. Reverse Charge Mechanism (Refer Not. No. 30/2012-ST) ....................... 15
G. Brief Note on Negative List regime ...................................................... 17
2. E X I S T I N G I N D I R E C T T A X S Y S T E M I N I N D I A ............... 20
Key features of specified indirect taxes: ................................................... 20
Current Indirect tax implications on various transactions ............................ 22
3. S E R V I C E T A X — S T A T U T O R Y P R O V I S I O N S ................. 24
4. A P P L I C A B L E C E N T R A L E X C I S E P R O V I S I O N S ............... 90
6 . S E R V I C E T A X R U L E S , 1 9 9 4 .................................... 127
1. Short title and commencement ......................................................... 127
2. Definitions ...................................................................................... 127
3. Appointment of officers .................................................................... 132
4. Registration .................................................................................... 132
4A. Taxable service to be provided on invoice, bill or challan .................... 134
4B. Issue of consignment note .............................................................. 136
5. Records .......................................................................................... 137
5A. Access to a registered premises....................................................... 138
6. Payment of service tax ..................................................................... 138
6A. Export of services.- ........................................................................ 145
7. Returns .......................................................................................... 146
7A. Returns ........................................................................................ 147
7B. Revision of return .......................................................................... 147
7C. Amount to be paid for delay in furnishing the prescribed return ........... 147
8. Form of appeals to Commissioner of Central Excise (Appeals) ............... 149
9. Form of appeals to Appellate Tribunal ................................................ 149
10. Procedure and facilities for large taxpayer......................................... 149
7 . S E R V I C E T A X ( D E T E R M I N A T I O N O F V A L U E ) R U L E S , 2 0 0 6
........................................................................ 151
1.Short title and commencement. — ...................................................... 151
3
2.Definitions ....................................................................................... 151
2A. Determination of value of service portion in works contract................. 151
2B.Determination of value of service in relation to money changing ........... 154
2C. Determination of value of service portion involved in a restaurant or as
outdoor catering ......................................................................... 155
3.Manner of determination of value ....................................................... 156
4.Rejection of value ............................................................................. 156
5.Inclusion in or exclusion .................................................................... 157
6.Cases in which the commission, costs, etc., will be included or excluded . 159
8 . P O I N T O F T A X A T I O N R U L E S , 2 0 1 1 .......................... 162
1.Short title and commencement .......................................................... 162
2.Definitions ....................................................................................... 162
2A. Date of payment ........................................................................... 163
3.Determination of point of taxation ...................................................... 163
4.Point of taxation in case of change in effective rate of tax ...................... 164
5. Payment of tax in case of new services .............................................. 165
7. Point of taxation in case of specified services or persons ...................... 165
8.Determination of point of taxation in case of copyrights, etc .................. 166
8A. Determination of point of taxation in other cases ............................... 166
9.Transitional Provisions ...................................................................... 167
9 . P L A C E O F P R O V I S I O N O F S E R V I C E S R U L E S , 2 0 1 2 ..... 168
1. Short title, extent and commencement .......................................... 168
2. Definitions .................................................................................. 168
3. Place of provision generally .......................................................... 171
4. Place of provision of performance based services ............................ 171
5. Place of provision of services relating to immovable property ............ 172
6. Place of provision of services relating to events ............................... 172
7. Place of provision of services provided at more than one location ...... 172
8. Provision of services - Provider and recipient located in taxable territory
................................................................................................. 172
9. Place of provision of specified services ........................................... 173
10. Place of provision of goods transportation services .......................... 173
11. Place of provision of passenger transportation service ...................... 173
12. Place of provision of services provided on board a conveyance .......... 173
13. Powers to notify description of services or circumstances for certain
purposes .................................................................................... 174
4
14. Order of application of rules.......................................................... 174
1 0 . C E N V A T C R E D I T R U L E S , 2 0 0 4 .............................. 175
1.Short title, extent and commencement ................................................ 175
2.Definitions ....................................................................................... 175
3.CENVAT credit .................................................................................. 182
4.Conditions for allowing CENVAT credit ................................................. 192
5. Refund of CENVAT Credit .................................................................. 198
5A.Refund of CENVAT credit to units in specified areas ............................ 200
5B. Refund of CENVAT credit to service providers RCM services ................ 201
6.Obligation of a manufacturer or service providers ................................. 201
7.Manner of distribution of credit by input service distributor ................... 217
7A.Distribution of credit on inputs by the office or any other premises ....... 220
8.Storage of input outside the factory of the manufacturer ....................... 220
9.Documents and accounts ................................................................... 221
9A.Information relating to principal inputs .............................................. 225
10.Transfer of CENVAT credit ................................................................ 226
10A. Transfer of CENVAT credit of additional duty ................................... 226
11.Transitional provision ...................................................................... 228
12.Special dispensation ........................................................................ 229
12A. Procedure and facilities for large tax payer ...................................... 229
12AAA. Power to impose restrictions in certain types of cases ................... 233
13.Power of CG to notify goods for deemed CENVAT credit ....................... 234
14.Recovery of CENVAT credit wrongly taken or erroneously refunded ....... 234
15.Confiscation and penalty ................................................................. 235
15A. General penalty ........................................................................... 235
16.Supplementary provision ................................................................. 236
1 1 . S E R V I C E T A X V C E S , 2 0 1 3 ................................... 237
1 2 . S e r v i c e T a x V C E S R u l e s , 2 0 1 3 ............................. 241
1. Short title and commencement ......................................................... 241
2. Definitions ...................................................................................... 241
3. Registration .................................................................................... 241
4. Form of declaration .......................................................................... 241
5. Form of acknowledgment of declaration ............................................. 241
6. Payment of tax dues ........................................................................ 241
7. Form of acknowledgement of discharge .............................................. 242
F O R M V C E S-2 ........................................................... 244
5
F O R M V C E S-3 ........................................................... 246
1 3 . N o t i f i c a t i o n s .................................................... 247
14/2012 - Research & development cess ................................................ 247
25/2012 - Mega exemption notification .................................................. 248
26/2012 - Abatement notification .......................................................... 270
27/2012 - Exemption for foreign diplomatic mission ................................ 280
29/2012 - Exemption on property tax paid ............................................. 283
30/2012 - Reverse charge mechanism ................................................... 285
31/2012 - Exemption to gta services for exporter .................................... 292
32/2012 - Exemption of services provided by tbi and ............................... 299
33/2012 - Exemption to small service providers ...................................... 303
34/2012 - Rescinding of earlier 81 notifications ....................................... 306
35/2012 - Earlier works contract composition scheme rescinded ............... 310
28/2011 - Notified continuous supply of services ..................................... 311
39/2012 - Rebate on inputs and input services ....................................... 312
40/2012 - Exemption on services provided to sez authorised operations .... 319
41/2012 - Rebate for service tax paid — new scheme .............................. 333
27/2012(ce) – Cenvat credit refund (rule 5) .................................................... 363
43/2012 - Exemption to railways........................................................... 367
45/2012 - Reverse charge mechanism for directors and security services ... 368
46/2012 – STR amended for RCM on directors and security services .......... 369
47/2012 – Return due date .................................................................. 370
48/2012 - Amends ST-1 and Accounting codes re-notified ........................ 371
49/2012 - Exemption to Janashri and Aam Aadmi Bima Yojana ........................... 382
1/2013 - Amendment in Service Tax Rules, 1994 ............................................. 383
2/2013 - Construction of Complex – Taxable value 25% or 30% ............... 402
3/2013 - Mega Exemption Amended ...................................................... 403
4/2013 - Advance Ruling (Applicable for Public Company) ........................ 405
5/2013 - New ST-5, ST-6 and ST-7 notified ............................................ 406
6/2013 - Focus Market Scheme ............................................................. 416
7/2013 - Focus Product Scheme ............................................................ 421
8/2013 - Vishes Krishi and Gram Udyog Yojana ...................................... 424
9/2013 - Construction service – Change in abatement ............................. 426
10/2013 - Service Tax Voluntary Compliance Encouragement Rules notified 427
11/2013 - Amends Not. No. 6/2013-ST .................................................. 428
12/2013 - Special Economic Zone (SEZ) Developer / Unit ........................ 430
6
13/2013 – Amendment to Not. 25/2012 ......................................................... 440
1/1/2013 - AD-HOC EXEMPTION ............................................................... 441
12/2013 (CE) – Amendment in 3 (5A) of CCR ................................................. 442
14/2013 – Catering in canteen .............................................................. 443
15/ 2013- Amendment in SEZ Not. ........................................................ 444
16 /2013- E-payment (1 lac) ................................................................ 445
17/2013-Amendment to FMS Not. ......................................................... 446
01/2014 – Amendment in Mega Not. ............................................................ 447
02/2014 – ST – Governmental Authority definition ............................................ 448
03/2014-ST – Forward contract sub-broker exemption ...................................... 449
05/2014-ST – FMS Amendment ................................................................. 451
18/2013-C.E. (N.T.) –Rescinded later .................................................... 452
01/2014-CE (NT) – CENVAT Credit amendment ............................................. 453
02/2014-CE(N.T.) – Amends Rule 12 ..................................................... 454
05/2014 – CE (NT) – Rule 7 (ISD Amendment) ............................................... 455
07/2014 – CE (NT) – Rescinds 18/2013 ................................................. 456
09/2014-CE(N.T.) – CCR Amendment .................................................... 457
11/2014–CE (N.T.) –Return for a Quarter ............................................... 458
12/2014–CE (NT)- Refund for Partial RCM service providers ..................... 460
13/2014–CE (N.T.) – Rescinds Not. No. 6/2012CE (NT) ........................... 465
15/2014 - CE(N.T.) – 12AAA introduced ................................................. 466
06/2014-ST – Mega Not. amended ........................................................ 467
07/2014-ST – SEZ refund simplified ...................................................... 471
08/2014-ST – Abatement amended ....................................................... 474
09/2014-ST – RCM amended ................................................................ 477
10/2014-ST – RCM amended ................................................................ 479
11/2014-ST – Valuation Rules amended ................................................. 481
12/2014-ST – Interest rates notified ...................................................... 482
13/2014-ST – POT amended ................................................................. 483
14/2014-ST – POPS amended ............................................................... 485
15/2014-ST –Advance Ruling for private company .................................. 487
21/2014-CE(NT) – CCR amendment ...................................................... 488
22/2014 – ST – Appointment of Officers................................................. 490
23/2014-ST – Service Tax (Amendment) Rules ....................................... 492
1/2015-ST – Amendment to Notification No. 20/2014-ST ......................... 493
2/2015-ST – Jurisdiction of Principal Director/ Principal Commissioner ....... 501
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3/2015-ST – Notification No. 42.2012-ST rescinded ................................. 503
4/2015-ST – Amendment to Notification No. 31/2012-ST ......................... 504
5/2015-ST – Service Tax (Amendment) Rules, 2015 ................................ 505
6/2015-ST – Amendments in Notification No. 25/2012-ST ....................................... 507
7/2015-ST - Amendments in Notification No. 30/2012-ST .................................... 511
8/2015-ST - Amendments in Notification No. 26/2012-ST ........................................ 513
9/2015 – ST – Resident Firm ................................................................ 515
10/ 2015 – ST – Service provided against scrip ....................................... 516
11 / 2015 – ST – Exemption against Scrip .............................................. 518
12/2015-ST - Amendments in Notification No. 25/2012-ST ....................... 521
13/2015-ST - Amendments in Notification No. 26/2012-ST ...................... 522
14/2015-ST – Applicability of provisions ................................................ 523
15/2015-ST – Applicability of provisions ................................................. 524
16/2015-ST – Applicability of Provisions ................................................. 525
17/2015-ST – Power System Development Fund Scheme ........................ 526
18/2015-ST – Rank of Officers .............................................................. 531
19/2015-ST – Money Transfer Service ................................................... 532
20/2015-ST - Amendments in Notification No. 25/2012-ST ...................... 533
21/2015-ST – Swachh Bharat Cess (SBC) .............................................. 534
22/2015 - ST – SBC Exemption ............................................................. 535
23 /2015- Amendments in Notification No. 22/2015-ST ........................... 536
24 /2015-ST – RCM applicable for SBC .................................................. 537
25/2015-ST – Service Tax (Amendment) Rules ....................................... 538
26/2015-ST – Service Tax (Third Amendment) Rules, 2015 ...................... 539
27/2015-ST – Service Tax (Fourth Amendment) Rules, 2015 .................... 540
01/2016- ST - Amendment to Notification No. 41/2012-ST ...................... 541
02/2016- ST – Amendment to Notification No. 12/2013-ST ...................... 542
03/2016- ST – Rebate of Swachh Bharat Cess ........................................ 543
04/2016 – ST - Annual Information Return ............................................. 544
05/2016 – ST – Amendment in exemption of SBC ................................... 551
6/2016 – ST – Effective date for amendment in Section 66D(a)(iv) ........... 552
07/2016 – ST – Exemption from RCM for ‘Support Services’ ..................... 553
08/2016 – ST - Amendment to Notification No.26/2012-ST ...................... 554
09/2016 – ST - Amendment to Notification No. 25/2012-ST ..................... 558
10/2016 – ST - Point of Taxation Rules .................................................. 564
11/2016 – ST - Exemption on Sale of Software ....................................... 565
8
12/2016 – ST - Amendment to Notification No. 32-2012-ST ..................... 567
13/2016 – ST - Interest Rates Revised................................................... 569
14/2016 – ST - Interest Rates - Section 73B .......................................... 570
15/2016 – ST - Deletion of word 'Support' .............................................. 571
16/2016 – ST - Effective Date for Notification No. 5/2015-ST ................... 572
17/2016 – ST - Effective Date for Notification No. 7/2015-ST ................... 573
18/2016 – ST - Amendment to Notification No. 30/2012-ST ..................... 574
19/2016 – ST - Amendment to Service Tax Rules, 1994 ........................... 576
14. C I R C U L A R S .................................................... 579
160/11/2012 - Applicability of EC and SHEC .......................................... 579
161/12/2012 – Accounting code for Negative List .................................... 581
163/14/2012 - Clarification on Remittances ............................................ 583
164/15/2012 – Clarification on vocational education ................................ 583
165/16/2012 - Circular on restoration of accounting codes ....................... 586
166/1/2013 – Reminder letters for insurance policies .............................. 597
167/2/2013 - Milk transportation by rail ................................................. 598
969/03/2013-CX – CESTAT Appeal forms ..................................................... 599
168/3/2013 - Clarification on Pandal and Shamiyana ............................... 603
169/4/2013 - Clarification on VCES ....................................................... 605
170/5 /2013 - Clarification on VCES ...................................................... 607
171/6/2013 - Circular on Arrest and Bail ........................................................ 611
172/7/2013 – Education services – Clarification ............................................... 615
173/8/2013 – Restaurant clarifications .......................................................... 618
174/9/2013 – VCES clarifications ................................................................ 620
175/01/2014 ST – RWA Clarification ...................................................... 623
176/2/2014 – ST – VCES Discharge and CENVAT ........................................... 625
177/03/2014 – ST – Rice, paddy clarification .................................................. 625
974/08/2013-CX - Arrest and Bail ......................................................... 626
178/4/2014-ST – ISD clarification ......................................................... 633
179/5/2014-ST – Joint Venture ...................................................................... 634
180/06/2014 – ST - Remittances from abroad ................................................. 636
181/7/2014-ST - Audit ............................................................................. 639
995/2/2015-CX - Audit norms ..................................................................... 640
182/01/2015 –ST - Payment ...................................................................... 644
183 / 02 / 2015-ST – Rate of Service Tax ...................................................... 645
184/3/2015-ST – Restaurant service .................................................... 647
9
186/5/2015-ST – Various Services provided by GTA ......................................... 649
1009/16/2015-CX – Guidelines for Prosecution ............................................... 650
1010/17/2015-CX - Monetary Limits for Arrest................................................. 656
187/6/2015-ST – Refund claim ............................................................. 657
188/7/2015-ST – Accounting Codes for Swachh Bharat Cess .............................. 660
189/8/2015 – ST – Seed Testing ........................................................... 661
190/9/2015- ST Applicability on Input Services – Export of Garments ........ 664
1 5 . P O T R C I R C U L A R S ............................................... 667
341/34/2010-TRU - POTR Clarifications .................................................. 667
154/5/2012-ST – POTR clarification ....................................................... 671
155/6/2012-ST – POTR Clarifications ..................................................... 672
158/9/2012-ST – Change in Rate .......................................................... 673
162/13/2012 - Clarification on POTR...................................................... 675
16. D R A F T C I R C U L A R ............................................ 678
Dr a f t c i r c u l a r o n s t a f f b e n e f i t s ................................................... 678
Draft circular on service tax on air transport ........................................... 684
1 7 . I N S T R U C T I O N S / O R D E R S .................................... 688
Instructions – Negative list of service tax regime .................................... 688
Filing of ST-3 ...................................................................................... 690
Order 3/2012 - Due date for filing of Service Tax return ..................................... 692
Service tax instruction ......................................................................... 693
Order 2/2013 - ST-3 [30 April 2013] ..................................................... 695
Order 3/2013 - ST-3 [31 August 2013] .................................................. 696
Order 4/2013 - ST-3 [10 September 2013] ............................................ 697
F.No: 137/116/2012- E-payment 1 lacs ................................................. 698
F. No. B1/19/2013-TRU (Pt.) - VCES...................................................... 700
F. No. 137/50/2013-VCES .................................................................... 701
F.No.275/05/2014-CX.8A – Validity of Stay ............................................ 702
17/1/2012-CX.1 – Proposed amendment in Rule 6 of CCR ........................ 704
18. D I S P U T E R E S O L U T I O N S C H E M E , 2 0 1 6 .................... 706
19. S W A C H H B H A R A T C E S S ........................................ 710
2 0 . K R I S H I K A L Y A N C E S S ......................................... 711
2 1 . B u d g e t 2 0 1 3 ..................................................... 712
Union FM –Budget Speech (Extracts) ..................................................... 712
TRU – Budget 2013 – Service Tax ..................................................... 718
Supply of food in restaurant, ‘sale’ or ‘service’? – CA Pritam Mahure .......... 721
10
ST on Foreign Bank Charges ................................................................. 727
CEVAT Credit of ST paid under VCES ..................................................... 732
Applicability of VAT on flat .................................................................... 737
Economic Times - Pause Due to Paucity of Funds .................................... 744
Valuation of barter between Landowner and Developer ............................ 746
Applicability of Excise duty on Sales Tax Retention .................................. 752
Service Tax on Mid-day meal scheme .................................................... 757
CENVAT Credit - ‘Interest’ing issue ........................................................ 763
2 0 . B u d g e t 2 0 1 5 ..................................................... 768
Service Tax TRU letter ......................................................................... 776
21. T R U – B u d g e t - 2016 .......................................... 803
22. A n E d u c a t i o n G u i d e ............................................... 843
11
ABOUT THE BOOK
FOREWORDS
The challenge of dissemination of a tax law in a cogent and lucid manner is
nearly as huge as its making. Mr. Pritam Mahure in this book has attempted to
meet the challenge with laurels coming very close to what could even be termed
as a “work of art”.
Indirect tax reforms in recent years have been largely guided keeping in view
the eventual goal of GST. The changes over the last couple of years in the areas
of service tax are definitely precursors in that direction. A careful understanding
and applicability of the new provisions will go a great length in helping our
smooth transition towards GST.
Taxation of services based on Negative List, together with many other significant
changes, in 2012 has refreshed the challenge of managing change once again.
Despite an elaborate effort to explain the new provisions by way of “Education
Guide” released by the Government, it still required considerable effort to carry
out the task in the light of experience gained from its early applicability.
Service tax law by itself is not comprehensive and relies considerably on the
provisions from other enactments. To put it in a user-friendly manner for the
tax-payers and other practitioners is an enormous challenge.
I have noticed that Mr Pritam Mahure has taken immense pains to provide
comprehensive coverage to the subject. It has been a pleasure for me to go
through the subject once again, somewhat like watching a suspense movie all
over again, knowing the ultimate truth, yet enjoying the nuances from time-to
time.
V K Garg
Joint Secretary (Tax Research Unit)
Department of Revenue
Central Board of Excise & Customs
Ministry of Finance,
Government of India
July 2013
12
Special Thanks
- I would like to thank Shri J. C. Chaturvedi (DG, DGCEI) who had suggested me the
idea to write this book on Service Tax
- I would like to thank Shri. Sunil Gabhawalla (CA) under whose able guidance I
learnt Service Tax
- I would like to thank Shri. Rajan Choudhary (Addl. Commissioner of Service Tax,
Pune) for his valuable feedback for the book and guidance
- Also, would like to thank Suresh Nair (Partner, Ernst & Young) for his valuable
suggestions and expert guidance
- Also, I am grateful to CA Pratik Shah and CA Jigar Doshi (Partners, SKP Business
Consulting LLP) for his valuable suggestions and feedback
- Also, I am thankful to CA Shankar Rochlani for his efforts in updating this edition
About the author
- CA Pritam Mahure works in the field of Indirect Taxes (Service
Tax, Excise and Goods and Service Tax) since more than a
decade. Pritam has also worked with leading multinational
consulting organisations.
- Pritam has authored books on “Service Tax” and “GST” for
Bharat Publication and CII.
- Pritam has authored more than 100 articles in The Hindu,
Business Standard, Business Line, Economic Times, The Asian
Age, Deccan Herald, Sakal, Taxmann, Taxindiaonline etc.
- Pritam has addressed more than 75 conferences/ seminars
and 10,000 professionals on GST and Service Tax for CII,
ASSOCHAM, NASSCOM, MCCIA, DCCIA, ICAI, DGST and
Government officers across India.
- Pritam is conducting GST Awareness Campaign for CII IIL by
addressing seminars on GST all across India. Pritam is also
assisting State Governments with respect to proposed GST.
- For suggestions/ feedback/ queries readers may revert at
capritam@gmail.com
13
1. NEGATIVE LIST – IN A NUTSHELL
A. In a nutshell
B. Negative vis-à-vis Positive list regime – A Comparative Analysis
Current provisions
(Negative List)
Coverage Earlier provisions
(Positive List)
65B Definitions 65
66B Charging Section 66 and 66A
66C Determination of Place of
Provision of services
Export and Import Rules
66D Negative List Service specific
exclusions/ exemptions
66E Declared services 65 (105)
66F Interpretation Rules and
Bundled services
65A (covers classification
only)
67 and Valuation Rules
(Amended)
Valuation 67 and Valuation Rules
67A and POTR Date of determination tax rate,
value and exchange Rate
POTR
25/2012-ST One mega notification Various notifications
C. Rules deleted/ substituted
SR Rules Particulars Rationale for deletion of
rules
1 Taxation of Services (Provided
from Outside India & Received in
India) Rules, 2006
Deleted Introduction of ‘Place of
Provision of Services Rules,
2012’
2 Export of Services Rules, 2005 Deleted Introduction of ‘Place of
Provision of Services Rules,
2012’
3 Works Contract (Composition
Scheme for Payment of Service
Tax) Rules, 2007
Deleted Insertion of Rule 2A in the
Service Tax Valuation Rules,
2006
1. Negative List
Service is taxable unless
exempt
Applicable wef 1 July 2012
2. Positive List
Service is exempt unless
taxable
Applicable upto 30 June 2012
14
D. Key provisions and effective date
Provisions Particulars
Negative List regime Applicable w.e.f. 1 July 2012
Applicable rate of Service Tax 14% (From 1st June 2015) + SBC 0.50%
(From 15th Nov. 2015) + 0.50% KKC (From
1st June 2016)
E. Abatement (Refer Not. No. 26/2012 and Valuation Rules)
SR Service Taxable
1 Goods Transport Agency (GTA) other than used household
goods1 (any person who pays or is liable to pay freight either
himself or through his agent for the transportation of such
goods by road in a goods carriage)
Provided that when such person is located in a non-taxable
territory, the provider of such service shall be liable to pay
service tax.
30%
1A Services of goods transport agency in relation to
transportation of used household goods
40%
2 Transport of goods by rail (other than service specified at Sl.
No. 2A below)2
30%
2A Transport of goods in containers by rail by any person other
than Indian Railways3
40%
3 Services provided by a foreman of chit fund in relation to
chit4
70%
4 Transport of passengers by rail 30%
5 Transport of goods in a vessel 50%5
6 Transport of passengers by air (if travelling in economy class) 40%
7 Transport of passengers by air (for classes other than
economy class)
60%
8 Supply of food or any other article of human consumption or
any drink, in a restaurant / other premises
40%/
60%
9 Supply of food in convention centre, pandal, shamiana etc 70%
10 Accommodation in hotels, inns etc 60%
1 Inserted vide Notification No. 8/2016-ST w.e.f. 01.04.2016
2 Substituted vide Notification No. 8/2016-ST w.e.f. 01.04.2016
3 Inserted vide Notification No. 8/2016-ST w.e.f. 01.04.2016
4 Inserted vide Notification No. 8/2016-ST w.e.f. 01.04.2016.
5 40% wef 1 October 2014 vide Not. No. 8/2014-ST
15
11 Renting of [any vehicle designed to carry passengers]6 40%
12 Services by a tour operator in relation to,-
(i) a tour, only for the purpose of arranging or booking
accommodation for any person
(ii) tours other than (i) above
10
13 30%
14 Services other than 11 and 12 provided in relation to tour 40%
15 Financial leasing services including hire purchase 10%
17 7Construction of a complex, building, civil structure or a part
thereof, intended for a sale to a buyer, wholly or partly,
except where entire consideration is received after issuance
of completion certificate by the competent authority,-
(a) for a residential unit satisfying both the following
conditions, namely:–
(i) the carpet area of the unit is less than 2000 square feet;
and
(ii) the amount charged for the unit is less than rupees one
crore;
(b) for other than the (a) above
8
30%
18 Works contracts entered into for execution of original works 40%
19 Works contracts entered into for maintenance or repair or
reconditioning or restoration or servicing of any goods
70%
20 For other works contracts, not covered under sr. no. 16
and 17 , including maintenance, repair, completion and
finishing services such as glazing, plastering, floor and wall
tiling, installation of electrical fittings of an immovable
property,
70%
21 Transport of passengers, with or without accompanied
belongings, by
a. a contract carriage other than motorcab
b. a radio taxi
c. a stage carriage9
40%
F. Reverse Charge Mechanism (Refer Not. No. 30/2012-ST)
SR Service Service recipient % of ST payable
Provider Recipient
6 Substituted as ‘motorcab’ wef 1 October 2014 vide Not. No. 8/2014-ST
7 Not. No. 9/2013-ST dated 8 May 2013
8 Vide Notification No. 8/2016-ST w.e.f. 01.04.2016
9 Inserted from 1st June 2016 vide Not. No. 8/2016-ST
16
1 Provided by person who is
located in non-taxable territory
and received by any person
located in taxable territory
Any person10 Nil 100%
2 Works contract services by
individual, HUF, firm or AOP
Body corporate 50% 50%
3 Manpower supply for any
purposes or security services
by individual, HUF, firm or AOP
Body corporate 100%
4 Renting of vehicle to any
person who is not engaged in
the similar line of business to
carry passenger by individual,
HUF, firm or AOP
- With abatement
- Without abatement
Body corporate
Nil
50%
100%
5011%
5 Any service 12 by Government and
Local Authority (excluding renting
and 66D (a) (i) to (iii)
Business entity Nil 100%
6 Provided or agreed to be
provided by a director of a
company to the said company
(w.e.f. 7 August 2012 vide Not.
45/2012)
Body Corporate13 Nil 100%
7 A firm of advocates or an
individual advocate other than
senior advocate, by way of
legal services
Business entity14 Nil 100%
8 Arbitral Tribunal Business entity15 Nil 100%
9 Sponsorship Body corporate or PF Nil 100%
10 GTA Company, P. Firm,
Factory, Society,
excise registered
assessee
Nil 100%
11 Insurance agent to insurance
companies
Insurance business Nil 100%
12 In relation to service provided
or agreed to be provided by a
recovery agent16
Banking company or a
financial institution or
a non-banking
financial company
Nil 100%
13 Mutual fund Agent17 AMC NIL 100
10 Exemption provided to certain persons vide Sr. No. 34 of Not. No. 25/2012-ST
11 Change effective from 1 October 2014 vide Not. No. 10/2014-ST
12 Deleted by Finance Act, 2015 w.e.f. 01.04.2016
13 Substituted for ‘company’ from 11 July 2014 vide Not. No. 9/20141-ST
14 Exemption provided to certain persons vide Sr. No. 6 of Not. No. 25/2012-ST
15 Exemption provided to certain persons vide Sr. No. 6 of Not. No. 25/2012-ST
16 Inserted from 11 July 2014 vide Not. No. 9/20141-ST
17 Deleted from 1 April 2016 and covered under forward charge vide Not. 18/2016-ST
17
G. Brief Note on Negative List regime18
What is the significance of the changes due to the new system of taxation?
Budget 2012 proposes to usher a paradigm shift in the manner services will be taxed in
future. The transition involves shift from taxation of 119 service-specific descriptions to a
new regime whereby all services will be taxed unless they are covered by any of the
entries in the negative list or are otherwise exempted. The new system is a marked shift
by way of comprehensive taxation of the entire service sector without getting into
complex issues of classification of services.
What is the broad the scheme of new taxation?
In the new system, service tax will be levied on all services provided in a taxable
territory other than the services specified in the negative list. The key features of this
system are as follows:
At the outset ‘service’ has been defined in clause (44) of section65B of the Act.
Section 66B specifies the charge of service tax which is essentially that service tax
shall be levied on all services provided or agreed to be provided in a taxable
territory, other than services specified in the negative list.
The negative list of services is contained in section 66D of the Act.
Since provision of service in the taxable territory is an important ingredient of
taxability, section 66C empowers the Central Government to make rules for
determination of place of provision of service. Under these provisions the Place of
Provision of Services Rules, 2012 have been made for which a separate and detailed
guidance paper (GPB) has been issued.
To remove some ambiguities certain activities have been specifically defined by
description as services and are referred as Declared Services (listed in section 66E).
In addition to the services specified in the negative list, certain exemptions have
been given. Most of the exemptions are proposed to be consolidated in a single
mega exemption for ease of reference.
Principles have been laid down in section 66F of the Act for interpretation wherever
services have to be treated differentially for any reason and also for determining the
taxability of bundled services.
The system of valuation of services for levy of service tax and of availment and
utilization of Cenvat credits essentially remains the same with only incidental
changes required for the new system of taxation
What is service?
In the existing system, only the services specified in clause (105) of section 65 of the
Finance Act, 1994 are taxed under the charging section 66. In the new system, all
18 Relevant paras from TRU DOF No 334/1/2012-TRU dated 16 March 2012
18
services, other than services specified in the negative list, provided or agreed to be
provided in the taxable territory by a person to another would be taxed under section
66B. This Note explains the various ingredients and aspects of the definition of service.
Service’ has been defined in clause (44) of the new section 65B and means –
- any activity
- for consideration
- carried out by a person for another
- and includes a declared service.
The said definition further provides that ‘Service’ does not include –
- any activity that constitutes only a transfer in title of (i) goods or (ii) immovable
property by way of sale, gift or in any other manner
- a transaction only in (iii) money or (iv) actionable claim
- any service provided by an employee to an employer in the course of the employment.
- fees payable to a court or a tribunal set up under a law for the time being in force
There are three explanations appended to the definition of ‘service’ which are dealt with
in later part of this Guidance Note. Each of the ingredients bulleted above have been
explained in the points below.
Taxability of service
The taxability of services or the charge of service tax has been specified in section 66B
of the Act. To be a taxable a service should be –
- provided or agreed to be provided by a person to another
- in the taxable territory
- and should not be specified in the negative list.
Provided in the taxable territory
- Taxable territory has been defined in section 65B of the Act as the territory to which
the Act applies i.e the whole of territory of India other than the State of Jammu and
Kashmir.
- Detailed rules called the Place of Provision of Service Rules, 2012 have been made
which determine the place of provision of service depending on the nature and
description of service.
- Please refer to the Place of Provision of Service Rules, 2012
Rules of interpretation
Despite doing away with the service-specific descriptions, there will be some descriptions
where some differential treatment will be available to a service or a class of services.
19
Section 66F lays down the principles of interpretation of specified descriptions of services
and bundled services.
Principles for interpretation of specified descriptions of services
Although the negative list approach largely obviates the need for descriptions of
services, such descriptions continue to exist in the following areas –
- In the negative list of services.
- In the declared list of services.
- In exemption notifications.
- In the Place of Provision of Service Rules, 2012
- In few other rules and notifications.
20
2. EXISTING INDIRECT TAX SYSTEM IN INDIA
As per the Constitution of India, the taxing powers of the Central Government
encompass taxes on income (except agricultural income), excise duty on goods
manufactured in India (other than alcohol for human consumption), customs
duty, inter-state sale of goods etc. The taxing powers of the State Governments
include the power to tax agricultural income, excise duty on alcohol for human
consumption, sales tax on intra-State sale of goods etc.
On a high level basis, indirect taxes in the country can be categorised in three
baskets
- Central level indirect taxes : Customs duty, Excise duty, Service Tax etc
- State level indirect taxes: VAT, Entry Tax, Purchase Tax etc
- Local level indirect taxes: Octroi etc
The following diagram captures the aforesaid:
Key features of specified indirect taxes:
SR Indirect Tax Key features
1 Customs duty - Customs duty is applicable on import of goods into India
- Customs duty is payable by the importer
- Rate of Customs duty is specified in the Customs Tariff
- Generic rate of Customs duty is 28.85% which comprises the
following:
Central Goverrnment
Customs duty
Excise Duty
Service Tax
Central Sales Tax,
Research & Dev. Cess
State Government
VAT/Sales Tax
Entry Tax, Purchase
Tax, Entertainment
tax, Elect. dutyLocal Taxes
Octroi / Local Body
Tax
21
a. Basic Customs Duty (generic rate is 10%)
b. Additional Duty of Customs in lieu of excise19 (generic rate
is 12.50%)
c. Additional Duty of Customs in lieu of VAT20 (generic rate is
4%)
d.
- Customs duty is levied and governed under the Customs Act,
1962 and the Rules made thereunder
2 Excise duty - Excise duty is applicable on ‘manufacture’ of goods in India
- ‘Manufacture’ typically implies a process at end the end of which
a new and different article, having a distinctive name, character
or use, emerges.
- Excise duty is payable by the manufacturer
- Rate of Excise duty is specified in the Excise Tariff
- Generic rate of Excise duty is 12.50% . Further, certain goods
are liable to concessional rate of Excise duty
- Excise duty is levied and governed under the Excise Act, 1944
and the Rules made thereunder
3 Service Tax - Service tax is applicable on provision of all services
- Service tax is not applicable on ‘Negative list21’ services and
certain exempt services22
- Service tax is payable by Service provider. However, in certain
case service recipient is also liable to pay service tax23.
- Rate of Service Tax is 14%. Further, for certain services
abatement is provided24
- Service tax is levied and governed under the Finance Act, 1994
and the Rules made thereunder
4 Research and
Development
Cess
- Research and Development (R&D) cess is applicable on import
of technology through foreign collaborator
- The rate of R&D cess is 5%
- R&D cess is levied by governed under Research and
Development Cess Act, 1986 and the Rules made thereunder
5 VAT/ Sales Tax - VAT / Sales tax is applicable on sale of goods within a State
- VAT is payable by the seller
- Rate of VAT is State specific. Rate of VAT is specified the VAT
schedule of the State
- Typically, the rate of VAT varies from 0% to 15%
- VAT is levied and governed under the State specific VAT Act and
the Rules made thereunder
6 CST - CST is applicable on inter –State sale of goods
- CST is payable by the seller
- Rate of CST is 2% provided the buyer issues C form. If the
buyer doesn’t issue C form then CST is applicable at the rate
equal to rate of VAT in the State from which goods are sold
- CST is levied and governed under The Central Sales Tax Act,
1956 and the Rules made thereunder
7 Entry Tax - Entry tax is applicable on entry of specified goods in the State
19 Also known as Counter-Veiling Duty/ CVD
20 Also known as Special Additional Duty of Customs / SACD
21 Negative List of services comprises of 17 services and is specified under Section 66D
of Finance Act, 1994
22 Exemption is provided to 39 services vide Not. No. 25/2012-ST
23 Situations where service recipient is liable to pay ST (as recipient of service) is
specified in Not. No. 30/2012-ST
24 Abatement to various services is specified under Not. No. 26/2012-ST and Service Tax
(Determination of Value of Services) Rules, 2006
22
for sale, use or consumption
- Entry tax is levied by various States in India
- Entry tax is levied and governed under State specific Entry Tax
Act and the Rules made thereunder
8 Octroi / Local
Body Tax (LBT)
- Octroi is levied by the Municipal Corporation on entry of
specified goods in their jurisdiction for sale, use or consumption
- Octroi is levied by various Municipal Corporations in the State of
Maharashtra (such as Mumbai, Thane, Pune etc)
- Octroi is levied and governed under Rules made by the
Municipal Corporations
- LBT is proposed to be introduced by substituting Octroi.
9 Purchase Tax - Purchase tax is applicable on purchase of specified goods
- Purchase Tax is a major source of revenue for Punjab and
Haryana
- In Punjab, Purchase Tax is levied under Punjab Value Added
Tax Act, 2005
- Its pertinent to note that in 2012, Maharashtra has also
introduced Purchase Tax on cotton and oil seeds
10 Entertainment
tax
- Entertainment tax is applicable on movie tickets, commercial
shows etc
- Entertainment tax is levied by the State Governments
- The rate of entertainment tax varies from 0% to 110%25
- This source of revenue has grown with the advent of Pay
Television Services in India. Since, entertainment is being
provided through the services such as Broadcasting Services,
DTH Services, Pay TV Services, Cable Services, etc. The
component of entertainment is intrinsically intertwined in the
transaction of service, that it cannot be separated from the
whole transaction. Given the nature of transaction of service, it
is being subjected to tax by the Union and the State
governments both26
Current Indirect tax implications on various transactions
A transaction in an economy can be one of the following type:
a. Transaction in goods:
o Trading (i.e. buying and subsequently selling the goods)
o Manufacturing and subsequently selling of goods
b. Transaction is services (such as provision of logistics services, advisory
services, courier services etc)
c. Transaction involving both goods and services (i.e. works contract such as
contract for construction of compound wall wherein material alongwith
labour is provided by the contractor)
d. Transaction in immovable property
e. Other transactions (such as employment, grants etc)
Transactions in an economy are subject to indirect taxes. We have given below
the typical indirect tax implications on the aforesaid transactions:
SR Activity Tax applicable
25 Source www.filmtvguildindia.org
26 Source www.en.wikipedia.org
23
1 Trading – Sale to a customer
located in same State (Intra-
State sale)
Value Added Tax27 (VAT) would be applicable
on the sale to the customer
2 Trading – Sale to a customer
located in different State
(inter-State sale)
Central Sales Tax (CST) would be applicable
on the customer sale to the customer
3 Manufacturing and
subsequently intra-State sale
of goods
- Excise duty on manufacture of goods
- VAT on sale of goods
4 Manufacturing and
subsequently inter-State sale
of goods
- Excise duty on manufacture of goods
- CST on sale of goods
5 Provision of services Service Tax28
6 Works contracts (i.e.
transaction involving both
goods and services)
- VAT on ‘goods’ portion in works contract
- Service Tax on ‘service’ portion in the
works contract
7 Transaction of sale of an
completed29 immovable
property
Stamp duty
8 Other transactions (such as
employment, donation etc)
Income from salary, donation etc is subject
matter of Income Tax
Apart from the aforesaid taxes, certain States and Municipal Corporations also
levy Entry Tax, Octroi for entry of goods for consumption/ sale in their
respective jurisdiction.
From the aforesaid discussion, it can be observed from the above that currently
the indirect tax system in the India is governed by the ‘taxable events’ (such as
manufacture, sale, provision of service etc). However, this approach to levy and
collect indirect tax has its own limitations and it results in inefficiency in certain
cases due to non-availability of input tax credit.
27 Also known as Sales tax
28 However, certain specified services such as entertainment, advertisement etc may be
liable to State VAT
29 W.e.f. 1 July 2010, Service tax has been made applicable on sale of property before
completion certificate is received for the same.
24
3. SERVICE TAX — STATUTORY PROVISIONS
SECTIONS 64 TO 96-I (CHAPTERS V and VA) OF THE FINANCE ACT, 1994
PROVIDING FOR SERVICE TAX)
SECTION 64. Extent, commencement and application. —
(1) This Chapter extends to the whole of India except the State of Jammu and
Kashmir.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
(3) It shall apply to taxable services provided on or after the commencement of
this Chapter.
65B. Interpretations30.
In this Chapter, unless the context otherwise requires,-
(1) "actionable claim" shall have the meaning assigned to it in section 3 of
the Transfer of Property Act, 1882 (4 of 1882.);
(2) "advertisement" means any form of presentation for promotion of, or
bringing awareness about, any event, idea, immovable property, person,
service, goods or actionable claim through newspaper, television, radio or
any other means but does not include any presentation made in person;
(3) "agriculture" means the cultivation of plants and rearing of all life-forms of
animals, except the rearing of horses, for food, fibre, fuel, raw material or
other similar products;
(4) "agricultural extension" means application of scientific research and
knowledge to agricultural practices through farmer education or training31;
30 Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012
31 From the language it may be stated that the exemption is restricted to ‘Application of
scientific research and knowledge to agricultural practices through farmer education
or training’. The term farmer precedes ‘education or training’. Herein the context in
which the term ‘education or training’ is used needs to be understood. Typically, the
farmers in India are either illiterate or less educated. Thus, a knowledge sharing
platform, per-se, which adds knowledge and thus ‘educate or train’ the farmers would
become eligible. Further, the exemption is available for ‘application of Scientific
research and knowledge to agricultural practices’. Thus, in case scientific research,
25
(5) "agricultural produce" means any produce of agriculture on which either
no further processing is done or such processing is done as is usually done
by a cultivator or producer which does not alter its essential characteristics
but makes it marketable for primary market32;
(6) "Agricultural Produce Marketing Committee or Board" means any
committee or board constituted under a State law for the time being in force
for the purpose of regulating the marketing of agricultural produce;
(7) "aircraft" has the meaning assigned to it in clause (1) of section 2 of the
Aircraft Act, 1934 (22 of 1934.);
(8) "airport" has the meaning assigned to it in clause (b) of section 2 of the
Airports Authority of India Act, 1994 (55 of 1994.);
(10) "Appellate Tribunal" means the Customs, Excise and Service Tax
Appellate Tribunal constituted under section 129 of the Customs Act, 1962
(52 of 1962.);
33 (11) "approved vocational education course" means,-
knowledge, know-how etc about agricultural practices etc is shared with the farmers for
application in farm then the same will be eligible for exemption.
32 The Finance Act 1994 exempts storage or warehousing of ‘agricultural produce’. In this
context, question had arisen as to whether ‘rice’ is an ‘agricultural produce’ or not? In
this regard, the H’ble Finance Minister had vide letter dated 9 November 2013 had
clarified that ‘paddy’ is an ‘agricultural produce’ but ‘rice’ is not since it is subject to
processing (de-husking etc) and it will not qualify as ‘agricultural produce’ and thus its
storage, warehousing etc will be liable to service tax. Now, as a relief, vide Notification
No. 4/2014-ST dated 17 February 2014, the Finance Ministry has exempted storage or
warehousing, loading, unloading, packing of ‘rice’ from service tax.
However, this Notification is half-hearted as the exemption is provided but it will be
applicable for period from 17 February 2014 onwards (i.e. prospective), thus implying
that the Government considers this service was taxable prior to 17 February 2014.
This leads to a paradox as the Government thinks the storage, warehousing etc of ‘rice’
as exempt with effect from 17 February 2014 onwards but taxable prior to 17 February
2014. Though the interpretation of the Finance Ministry that ‘rice’ is not an ‘agricultural
produce’ is itself doubtful still the warehousing industry may receive notices asking
them to pay service tax for the period prior to 17 February 2014. In our view, it is of
atmost importance that the aforesaid services are exempted retrospectively.
33 Deleted by Finance Bill, 2016 and incorporated in Notification No. 25/2012-ST. W.e.f. enactment of
Finance Bill, 2016
26
(i) a course run by an industrial training institute or an industrial training centre
affiliated to the National Council for Vocational Training or State Council for
Vocational Training34 offering courses in designated trades notified under the
Apprentices Act, 1961 (52 of 1961.); or
(ii) a Modular Employable Skill Course, approved by the National Council of
Vocational Training, run by a person registered with the Directorate General of
Employment and Training, Union Ministry of Labour and Employment
(iii) a course run by an institute affiliated to the National Skill Development
Corporation set up by the Government of India;
(12) "assessee" means a person liable to pay tax and includes his agent;
(13) "associated enterprise" shall have the meaning assigned to it in section
92A of the Income-tax Act, 1961 (43 of 1961.);
(14) "authorised dealer of foreign exchange" shall have the meaning
assigned to "authorised person" in clause (c) of section 2 of the Foreign
Exchange Management Act, 1999 (42 of 1999.);
(15) "betting or gambling" means putting on stake something of value,
particularly money, with consciousness of risk and hope of gain on the
outcome of a game or a contest, whose result may be determined by chance
or accident, or on the likelihood of anything occurring or not occurring;
(16) "Board" means the Central Board of Excise and Customs constituted
under the Central Boards of Revenue Act, 1963 (54 of 1963.);
(17) "business entity" means any person ordinarily carrying out any activity
relating to industry, commerce or any other business or profession;
(18) "Central Electricity Authority" means the authority constituted under
section 3 of the Electricity (Supply) Act, 1948 (54 of 1948.);
(19) "Central Transmission Utility" shall have the meaning assigned to it in
clause (10) of section 2 of the Electricity Act, 2003 (36 of 2003.);
Applicable from 10 May 2013
27
(20) "courier agency" means any person engaged in the door-to-door
transportation of time-sensitive documents, goods or articles utilising the
services of a person, either directly or indirectly, to carry or accompany such
documents, goods or articles;
(21) "customs station" shall have the meaning assigned to it in clause (13) of
section 2 of the Customs Act, 1962 (52 of 1962.);
(22) "declared service" means any activity carried out by a person for
another person for consideration and declared as such under section 66E;
(23) "electricity transmission or distribution utility" means the Central
Electricity Authority; a State Electricity Board; the Central Transmission
Utility or a State Transmission Utility notified under the Electricity Act, 2003
(36 of 2003.); or a distribution or transmission licensee under the said Act,
or any other entity entrusted with such function by the Central Government
or, as the case may be, the State Government;
(23A) “foreman of chit fund” shall have the same meaning as is
assigned to the term “foreman” in clause (j) of section 2 of the Chit
Funds Act, 198235
36(25) "goods" means every kind of movable property other than actionable
claim and money; and includes securities37, growing crops, grass, and things
attached to or forming part of the land which are agreed to be severed
before sale or under the contract of sale;
(26) "goods transport agency" means any person who provides service in
relation to transport of goods by road and issues consignment note, by whatever
name called38;(26A) “Government” means the Departments of the Central
Government, a State Government and its Departments and a Union
territory and its Departments, but shall not include any entity, whether
created by a statute or otherwise, the accounts of which are not
35 Inserted by Finance Act, 2015 from 14.05.2015
36 Deleted by Finance Act, 2015 from 14.05.2015
37 ‘Securities’ is included in the definition of ‘goods’ so as to exclude the same from the
definition of ‘service’ (as ‘service’ excludes transaction in ‘goods’)
38 In the case of U P State Sugar Corp Ltd [2011 (24) S.T.R. 423 (Tri - Del)] the Tribunal
prima-facie held that as no proforma for Consignment Note is prescribed hence issue of
formal Consignment Note not mandatory for levy of Service tax [Stay case]
28
required to be kept in accordance with article 150 of the Constitution or
the rules made thereunder 39
(27) "India" means,-
(a) the territory of the Union as referred to in clauses (2) and (3) of article 1
of the Constitution;
(b) its territorial waters, continental shelf, exclusive economic zone or any
other maritime zone as defined in the Territorial Waters, Continental
Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80
of 1976.);
(c) the seabed and the subsoil underlying the territorial waters;
(d) the air space above its territory and territorial waters; and
(e) the installations, structures and vessels located in the continental shelf of
India and the exclusive economic zone of India, for the purposes of
prospecting or extraction or production of mineral oil and natural gas and
supply thereof;
(28) "information technology software" means any representation of
instructions, data, sound or image, including source code and object code,
recorded in a machine readable form, and capable of being manipulated or
providing interactivity to a user, by means of a computer or an automatic
data processing machine or any other device or equipment;
(29) "inland waterway" means national waterways as defined in clause (h) of
section 2 of the Inland Waterways Authority of India Act, 1985 (82 of
1985.) or other waterway on any inland water, as defined in clause (b) of
section 2 of the Inland Vessels Act, 1917 (1 of 1917.);
(30) "interest" means interest payable in any manner in respect of any
moneys borrowed or debt incurred (including a deposit, claim or other
similar right or obligation) but does not include any service fee or other
charges in respect of the moneys borrowed or debt incurred or in respect of
any credit facility which has been utilised;
(31) "local authority" means-
(a) a Panchayat as referred to in clause (d) of article 243 of the
Constitution;
39 Inserted by Finance Act, 2015 from 14.05.2015
29
(b) a Municipality as referred to in clause (e) of article 243P of the
Constitution;
(c) a Municipal Committee and a District Board, legally entitled to, or
entrusted by the Government with, the control or management of a
municipal or local fund;
(d) a Cantonment Board as defined in section 3 of the Cantonments Act,
2006 (41 of 2006.);
(e) a regional council or a district council constituted under the Sixth
Schedule to the Constitution;
(f) a development board constituted under article 371 of the Constitution;
or
(g) a regional council constituted under article 371A of the Constitution;
(31A) “lottery distributor or selling agent” means a person appointed or
authorised by a State for the purposes of promoting, marketing, selling or
facilitating in organising lottery of any kind, in any manner, organised by such
State in accordance with the provisions of the Lotteries (Regulation) Act, 199840
(32) "metered cab" means any contract carriage on which an automatic
device, of the type and make approved under the relevant rules by the State
Transport Authority, is fitted which indicates reading of the fare chargeable at
any moment and that is charged accordingly under the conditions of its permit
issued under the Motor Vehicles Act, 1988 (59 of 1988.) and the rules made
thereunder but does not include radio taxi41;
(33) "money" means legal tender, cheque, promissory note, bill of exchange,
letter of credit, draft, pay order, traveller cheque, money order, postal or
electronic remittance or any similar instrument but shall not include any
currency that is held for its numismatic value;
(34) "negative list" means the services which are listed in section 66D;
(35) "non-taxable territory" means the territory which is outside the taxable
territory42;
(36) "notification" means notification published in the Official Gazette and the
expressions "notify'' and "notified" shall be construed accordingly;
40 Inserted by Finance Act, 2015 from 14.05.2015
41 With effect from date to be notified
42 Non-taxable territory would mean Jammu & Kashmir and rest of the world
30
(37) "person43" includes,-
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a society,
(v) a limited liability partnership,
(vi) a firm,
(vii) an association of persons or body of individuals, whether incorporated
or not,
(viii) Government,
(ix) a local authority, or
(x) every artificial juridical person, not falling within any of the preceding
sub-clauses;
(38) "port" has the meaning assigned to it in clause (q) of section 2 of the
Major Port Trusts Act, 1963 (38 of 1963.) or in clause (4) of section 3 of
the Indian Ports Act, 1908 (15 of 1908.);
(39) "prescribed" means prescribed by rules made under this Chapter;
(39a) “print media” means,—
(i) “book” as defined in sub-section (1) of section 1 of the Press and Registration
of Books Act, 1867, but does not include business directories, yellow pages
and trade catalogues which are primarily meant for commercial purposes;
(ii) “newspaper” as defined in sub-section (1) of section 1 of the Press and
Registration of Books Act, 186744
(40) "process amounting to manufacture or production of goods45"
means a process on which duties of excise are leviable under section 3 of
43 It may be noted that in the Positive List Regime (i.e. upto 30 June 2012) the term
'person' was not defined in the Finance Act, 1994 or Rules made thereunder. Thus
upto 30.06.2012 the definition of the term “person” as defined in the General Clauses
Act, 1897 should be referred to, which defines the term “person” as Sec.3 (42)
"person" shall include any company or association or body of individuals, whether
incorporated or not; However, from 1.07.2012 as the term ‘person’ is specifically
defined ,it should be referred.
44 With effect from date to be notified
45 Business Support Services - Processes amounting to manufacture - Same activity
cannot be considered as manufacturing and subjected to Excise levy and also
considered as service and subjected to Service Tax – Jubilant Industries Limited
31
the Central Excise Act, 1944 (1 of 1944) or the Medicinal and Toilet
Preparations (Excise Duties) Act,195546 or any process amounting to
manufacture of 47opium, Indian hemp and other narcotic drugs and
narcotics on which duties of excise are leviable under any State Act for the
time being in force;
(41) "renting" means allowing, permitting or granting access, entry,
occupation, use or any such facility, wholly or partly, in an immovable
property, with or without the transfer of possession or control of the said
immovable property and includes letting, leasing, licensing or other similar
arrangements in respect of immovable property;
(42) "Reserve Bank of India" means the bank established under section 3 of
the Reserve Bank of India Act, 1934 (2 of 1934.);
(43) "securities" has the meaning assigned to it in clause (h) of section 2 of
the Securities Contract (Regulation) Act, 1956 (42 of 1956.);
(44) "service" means any activity carried out by a person for another for
consideration, and includes a declared service, but shall not include-
(a) an activity which constitutes merely,-
(i) a transfer of title in goods or immovable property, by way of sale, gift or in
any other manner; or
(ia) such transfer, delivery or supply of any goods which is deemed to be a
sale within the meaning of clause (29A) of article 366 of the Constitution;
or".
(ii) a transaction in money or actionable claim48;
[2013 (9) TMI 358 - CESTAT NEW DELHI]
46 Applicable from 10 May 2013
47 Deleted by Finance Act, 2015 from 14.05.2015
48 In the case of Future Gaming Solutions India Pvt Ltd 2013-TIOL-904-HC-Sikkim-ST,
the High Court held that:
“70. In view of the facts and circumstances and the discussions, our conclusions are as
under:-
( i) In t h e lig h t of Su b-Se ct ion ( 1) t o S ect i o n 65B r ead wit h Su b-Se ct ion ( 44)
t h er e of l ot t er y i s e xcl u d ed f ro m t h e d e fin it i on of ' s er vi ce ' b ein g ' act i on ab l e
claim …
32
(b) a provision of service by an employee to the employer in the course of or in
relation to his employment;
(c) fees taken in any Court or tribunal established under any law for the time
being in force.
Explanation 1 For the removal of doubts, it is hereby declared that nothing
contained in this clause shall apply to,-
(A) the functions performed by the Members of Parliament, Members of State
Legislative, Members of Panchayats, Members of Municipalities and Members
of other local authorities who receive any consideration in performing the
functions of that office as such member; or
(B) the duties performed by any person who holds any post in pursuance of the
provisions of the Constitution in that capacity; or
(C) the duties performed by any person as a Chairperson or a Member or a
Director in a body established by the Central Government or State
Governments or local authority and who is not deemed as an employee
before the commencement of this section.
Explanation 1A- For the purposes of this clause, transaction in money shall not
include, any activity relating to the use of money or its conversion by cash or by
any other mode, from one form, currency or denomination to another form,
currency or denomination for which a separate consideration is charged:".
Explanation 2.- For the purposes of this Chapter,-
(a) an unincorporated association or a body of persons, as the case may be, and
a member thereof shall be treated as distinct persons49;
( iii) Th e act i vit y o f t h e P et it ion e r c omp risin g o f p r om ot ion s, org a n isin g , r e sellin g
or an y ot h e r man n er assi st in g in a rr an g in g o f l ot t er y t i ck et s of t h e St at e
Lot t e ri es d oe s n ot e st ab lish t h e r elat i on sh ip o f a p rin cip al o r an a g en t b u t
rat h er t h at o f a b u y e r an d a s ell e r an d , on p rin cip al t o p rin cip al b asi s in vi ew o f
t h e n at u r e of t h e t ran sact i on c on si st in g o f b u lk p u r ch a se s o f l ot t e ry t i ck et s b y
t h e Pet it ion e r fr om t h e St at e Go v ern men t o n fu ll p aym en t on a d i sc ou n t ed p ri ce
as a n at u ral b u sin es s t ran s act i on an d , ot h e r r elat ed f eat u re s li k e t h e r e b ein g n o
p rivit y of c on t ra ct b et we en t h e St at e G ov e r n men t an d t h e st ock i s t s, ag en t s ,
r es ell e rs u n d e r t h e P e t it ion er ”
49 In view of this clause, services provided by club to its members will attract service tax
33
(b) an establishment of a person in the taxable territory and any of his other
establishment in a non-taxable territory shall be treated as establishments of
distinct persons50;
(c) For the purposes of this clause, the expression “transaction in money or
actionable claim” shall not include––
(i) any activity relating to use of money or its conversion by cash or by
any other mode, from one form, currency or denomination, to another
form, currency or denomination for which a separate consideration is
charged;
(ii) 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––
(a) by a lottery distributor or selling agent on behalf of the State
Government, in relation to promotion, marketing, organising,
selling of lottery or facilitating in organising lottery of any kind, in
any other manner, in accordance with the provisions of the
Lotteries (Regulation) Act, 199851
(a) by a lottery distributor or selling agent in relation to promotion,
marketing, organising, selling of lottery or facilitating in organising
lottery of any kind, in any other manner;
(b) by a foreman of chit fund for conducting or organising a chit in
any manner52
50 It may be noted that this clause would cover Jammu & Kashmir branch providing
services to another Branch in say Pune or vice-versa
51 Substituted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
52 Inserted by Finance Act, 2015 from 14.05.2015. It may be noted that In a chit business, the
subscription is tendered in any one of the forms of ‘money’ as defined in section
65B(33). It would, therefore, be a transaction in money. So considered, the
transaction would fall within the exclusionary part of the definition of the word ‘service’
as being merely a transaction in money…The notification No.26/2012-ST dated
20.06.2012 issued is quashed to the extent of the entry in serial No.8 thereof. Delhi
Chit Fund Association 2013-TIOL-331-HC-DEL-ST - SLP against High Court Order
Dismissed by Supreme Court [UoI Vs Delhi Chit Fund Association 2014-TIOL-
23-SC-ST]
34
Explanation 3.- A person carrying on a business through a branch or agency or
representational office in any territory shall be treated as having an
establishment in that territory;
(45) "Special Economic Zone" has the meaning assigned to it in clause (za)
of section 2 of the Special Economic Zones Act, 2005 (28 of 2005.);
(46) "stage carriage" shall have the meaning assigned to it in clause (40) of
section 2 of the Motor Vehicles Act, 1988 (59 of 1988.);
(47) "State Electricity Board" means the Board constituted under section 5 of
the Electricity (Supply) Act, 1948 (54 of 1948.);
(48) "State Transmission Utility" shall have the meaning assigned to it in
clause (67) of section 2 of the Electricity Act, 2003 (36 of 2003.);
(50) "tax" means service tax leviable under the provisions of this Chapter;
(51) "taxable service" means any service on which service tax is leviable
under section 66B ;
(52) "taxable territory" means the territory to which the provisions of this
Chapter apply;
(53) "vessel" has the meaning assigned to it in clause (z) of section 2 of the
Major Port Trusts Act, 1963 (38 of 1963.);
(54) "works contract" means a contract wherein transfer of property in goods
involved in the execution of such contract is leviable to tax as sale of goods
and such contract is for the purpose of carrying out construction, erection,
commissioning, installation, completion, fitting out, repair, maintenance,
renovation, alteration of any moveable or immovable property or for carrying
out any other similar activity or a part thereof in relation to such property;
(55) words and expressions used but not defined in this Chapter and defined in
the Central Excise Act, 1944 ( 1 of 1944.) or the rules made thereunder,
shall apply, so far as may be, in relation to service tax as they apply in
relation to a duty of excise.'
35
66B. Charge of service tax on and after Finance Act, 201253. There shall be
levied a tax (hereinafter referred to as the service tax) at the rate of Fourteen
per cent.54 on the value of all services, other than those services specified in the
negative list, provided or agreed to be provided in the taxable territory by one
person to another and collected in such manner as may be prescribed.
55Explanation.- For the removal of doubts, it is hereby clarified that the references to the provisions of section 66
in Chapter V of the Finance Act, 1994(32 of 1994) or any other Act, for the purpose of levy and collection of
service tax, shall be construed as references to the provisions of section 66B
5666BA.
(1) For the purpose of levy and collection of service tax, any reference to section
66 in the Finance Act, 1994 or any other Act for the time being in force, shall
be construed as reference to section 66B thereof.
(2) The provisions of this section shall be deemed to have come into force on the
1st day of July, 2012
66C. Determination of place of provision of service57.
(1) The Central Government may, having regard to the nature and
description of various services58, by rules made in this regard, determine
the place where such services are provided or deemed to have been
provided or agreed to be provided or deemed to have been agreed to be
provided.
(2) Any rule made under sub-section (1) shall not be invalid merely on the
ground that either the service provider or the service receiver or both are
located at a place being outside the taxable territory.
66D. Negative list of services59. The negative list shall comprise of the
following services, namely:––
53 Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012
54 Applicable from 01.07.2015. Also w.e.f 15.11.2015 Swachh Bharat Cess will applicable at the rate
of 0.50% on the value of taxable thus taking the effective rate of tax to 14.50%
55 Omitted from 10 May 2013
56 Applicable from 10 May 2013
57 Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012
58 From the language used in the section 66C it may be construed that section 66C
permits determination of place of provision by ‘having regard to the nature and
description of various services’. However, this principle is completely ignored in
Rule 8 of Place of Provision of Services Rules, 2012
59 Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012
36
(a) services by Government or a local authority excluding the following services
to the extent they are not covered elsewhere—
(i) services by the Department of Posts by way of speed post, express parcel
post, life insurance and agency services provided to a person other than
Government60;
(ii) services in relation to an aircraft or a vessel, inside or outside the
precincts of a port or an airport;
(iii) transport of goods or passengers; or
(iv) any service61 , other than services covered under clauses (i) to (iii) above,
provided to business entities;
(b) services by the Reserve Bank of India62;
(c) services by a foreign diplomatic mission located in India63;
(d) services relating to agriculture or agricultural produce by way of —
(i) agricultural operations directly related to production of any agricultural
produce including cultivation, harvesting, threshing, plant protection or
seed 64testing;
(ii) supply of farm labour;
(iii) processes carried out at an agricultural farm including tending,
pruning, cutting, harvesting, drying, cleaning, trimming, sun drying,
fumigating, curing, sorting, grading, cooling or bulk packaging and such
like operations which do not alter the essential characteristics of
agricultural produce but make it only marketable for the primary
market65;
(iv) renting or leasing of agro machinery or vacant land with or without a
structure incidental to its use;
(v) loading, unloading, packing, storage or warehousing of agricultural
produce;
(vi) agricultural extension services66;
60 Only specific services such as speed post etc are liable to Service Tax. Thus, basic mail
service, money order service, pension payment etc is not liable to Service Tax
61 Amended by Finance Act, 2015Applicable w.e.f. from 01.04.2016 vide Notification No. 06/2016-ST
and Notification No. 15/2016-ST
62 Services provided BY RBI are exempt (and not TO RBI)
63 This exemption seems to be given in view of Vienna Convention (which provides for
grants immunity from local laws to the missions)
64 Omitted from 10 May 2013
65 Such as shelling of paddy or cleaning of wheat
66 As per Section 65B (4) "agricultural extension" means application of scientific
research and knowledge to agricultural practices through farmer education or training
37
(vii) services by any Agricultural Produce Marketing Committee or Board
or services provided by a commission agent for sale or purchase of
agricultural produce;
(e) trading of goods67;
(f) services by way of carrying out any process amounting to manufacture or
production of goods excluding alcoholic liquor for human consumption68
69 (g) selling of space for advertisements in print media70;
(h) service by way of access to a road or a bridge on payment of toll charges71;
(i) betting, gambling or lottery72
Explanation - For the purposes of this clause, the expression “betting, gambling
or lottery” shall not include the activity specified in Explanation 2 to clause (44)
of section 65B73;
74(k) transmission or distribution of electricity by an electricity transmission or
distribution utility75;
(l) services by way of—
(i) pre-school education and education up to higher secondary school or
equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by
any law76 for the time being in force;
(iii) education as a part of an approved vocational education course77;
67 Refer Entry No. 54 to List II (State List) in Seventh Schedule to Constitution of India
which reads as “Taxes on the sale or purchase of goods other than newspapers, subject
to the provisions of entry 92A of List I”
68 Amended by Finance Act, 2015 applicable from a date to be notified.
69 Refer Entry No. 55 to List II (State List) in Seventh Schedule to Constitution of India
which reads as “Taxes on advertisements other than advertisements published in the
newspapers and advertisements broadcast by radio or television”
70 Effective from a date to be notified
71 Refer Entry No. 59 to List II (State List) in Seventh Schedule to Constitution of India
which reads as “Tolls”
72 Refer Entry No. 34 to List II (State List) in Seventh Schedule to Constitution of India
which reads as “Betting and gambling”
73 Inserted by Finance Act, 2015 applicable from 14.05.2015
74 Deleted by Finance Act, 2015 w.e.f. 01.06.2015. New entry (Entry No. 47) has been inserted in
Notification 25/2012-ST.
75 Refer Entry No. 53 to List II (State List) in Seventh Schedule to Constitution of India
which reads as “Taxes on consumption or sale of electricity”
76 The legislature has not used the expression "conferred by law" or "conferred by
statute". Thus even if the certificate/degree/diploma/qualification is not the product of
a statute but has approval of some kind in 'law', would be exempt [2013-TIOL-430-HC-
DEL-ST]
77 Deleted by Finance Bill, 2016 and incorporated in Not. No. 25/2012 w.e.f. its enactment
38
(m) services by way of renting of residential dwelling for use as residence;
(n) services by way of—
(i) extending deposits, loans or advances in so far as the consideration is
represented by way of interest or discount;
(ii) inter se sale or purchase of foreign currency amongst banks or authorised
dealers of foreign exchange or amongst banks and such dealers;
(o) service of transportation of passengers78, with or without accompanied
belongings, by—
(i) a stage carriage79;
(ii) railways in a class other than—
(A) first class; or
(B) an airconditioned coach;
(iii) metro, monorail or tramway;
(iv) inland waterways;
(v) public transport, other than predominantly for tourism purpose, in a
vessel, between places located in India; and
(vi) metered cabs80 or auto rickshaws;
(p) services by way of transportation of goods81—
(i) by road except the services of—
(A) a goods transportation agency; or
(B) a courier agency;
(ii) by an aircraft or a vessel from a place outside India up to the customs
station of clearance82; or
(iii) by inland waterways;
(q) funeral, burial, crematorium or mortuary services including transportation of
the deceased.
66E Declared Services83. The following shall constitute declared services,
namely:––
78 Refer Entry No. 56 to List II (State List) in Seventh Schedule to Constitution of India
which reads as “Taxes on goods and passengers carried by road or on inland
waterways”
79 Deleted by Finance Bill, 2016. W.e.f. from 01.06.2016
80 Effective from a date to be notified
81 Ibid
82 Deleted by Finance Bill, 2016. However, such services by Aircraft will be exempt under in
Notification No. 25/2012-ST w.e.f. from 01.06.2016.
83 Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012
39
(a) renting of immovable property84;
(b) construction of a complex, building, civil structure or a part thereof, including
a complex or building intended for sale to a buyer, wholly or partly, except
where the entire consideration is received after issuance of completion-
certificate by the competent authority85.
Explanation.— For the purposes of this clause,—
(I) the expression "competent authority" means the Government or any
authority authorised to issue completion certificate under any law for the time
being in force and in case of non-requirement of such certificate from such
authority, from any of the following, namely:––
(A) architect registered with the Council of Architecture constituted under the
Architects Act, 1972 (20 of 1972.); or
(B) chartered engineer registered with the Institution of Engineers (India); or
(C) licensed surveyor of the respective local body of the city or town or village or
development or planning authority;
(II) the expression "construction" includes additions, alterations,
replacements or remodeling of any existing civil structure;
(c) temporary transfer or permitting the use or enjoyment of any intellectual
property right86;
(d) development, design, programming, customisation, adaptation, upgradation,
enhancement, implementation of information technology software8788;
84 Refer Entry No. 49 to List II (State List) in Seventh Schedule to Constitution of India
which reads as “Taxes on lands and buildings”. Whether collection of Service Tax on
‘Renting of immovable property’ amounts to “Taxes on lands and buildings” or is it on
‘income’ arising out of land and building has been long a subject matter of contention –
Refer Tamil Nadu Kalyana Mandapam Assn. v. Union of India — 2006 (3) STR 260 (SC)
and Home Solutions Retail (India) Ltd 2011 (24) STR 129 (Del)
85 The Apex Court in the case of Larson and Toubro [2013-TIOL-SC-CT-LB] has held
that: ‘It may, however, be clarified that activity of construction undertaken by the
developer would be works contract only from the stage the developer enters into a
contract with the flat purchaser’
86 IPR in normal trade parlance means copyright, patents, trademarks, designs, any
other similar right to an intangible property. Also, there is no condition regarding the
law under which an intellectual right should be registered. Further, permanent
transfers do not come under the purview of this entry [Thermax Ltd 201-TIOL1092-
CESTAT-MUM].
87 It is a settled position of law that pre-packaged or canned software which is put on a
media is in the nature of goods [Supreme Court judgment in case of Tata Consultancy
Services vs State of Andhra Pradesh [2002(178) ELT22(SC) refers]. Sale of pre-
packaged or canned software is, therefore, in the nature of sale of goods and is not
40
(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a
situation, or to do an act;
(f) transfer of goods by way of hiring, leasing, licensing or in any such manner
without transfer of right to use such goods;
(g) activities in relation to delivery of goods on hire purchase or any system of
payment by installments;
(h) service portion in the execution of a works contract;
(i) service portion89 in an activity wherein goods, being food or any other
article of human consumption or any drink (whether or not intoxicating) is
supplied in any manner as a part of the activity.
(j) assignment by the Government of the right to use the radio-frequency
spectrum and subsequent transfers thereof90
66F Principles of interpretation of specified descriptions of services or
bundled services 91. (1) Unless otherwise specified, reference to a service
(herein referred to as main service) shall not include reference to a service
which is used for providing main service92
Illustration
The services by the Reserve Bank of India, being the main service within the
meaning of clause (b) of section 66D, does not include any agency service
provided or agreed to be provided by any bank to the Reserve Bank of India.
Such agency service, being input service, used by the Reserve Bank of India for
providing the main service, for which the consideration by way of fee or
covered in this entry. License to use software which does not involve the transfer of
‘right to use‘ would neither be a transfer of title in goods nor a deemed sale of goods.
Such an activity would fall in the ambit of definition of ‘service‘ and also in the declared
service category specified in clause (f) of section 66E [Refer Para 6.4.4 of Education
Guide for details]
88 Sale of software recorded on media under Chapter 85 of First Schedule of Central Excise Tariff Act,
1985 is exempt from service tax vide Notification No. 11/2016-ST w.e.f. 01.03.2016. For conditions to
be satisfied refer Notification
89 Where element of service has been so declared and brought under Service
Tax no Value Added Tax can be imposed thereon VALLEY HOTEL & RESORTS
2014-TIOL-600-HC-DEL-VAT
90 Inserted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
91 Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012
92 Provision of access to any road or bridge on payment of toll‘ is a specified entry in the
negative list in section 66D of the Act. Any service provided in relation to collection of
tolls or for security of a toll road would be in the nature of service used for providing
such specified service and will not be entitled to the benefit of the negative list entry.
[Refer Para 9. 1.1 of Education Guide for details]
41
commission or any other amount is received by the agent bank, does not get
excluded from the levy of service tax by virtue of inclusion of the main service in
clause (b) of the negative list in section 66D and hence, such service is leviable
to service tax
(2) Where a service is capable of differential treatment for any purpose based on
its description, the most specific description shall be preferred over a more
general description93.
(3) Subject to the provisions of sub-section (2), the taxability of a bundled
service shall be determined in the following manner, namely:––
(a) if various elements of such service are naturally bundled in the ordinary
course of business, it shall be treated as provision of the single service
which gives such bundle its essential character94;
(b) if various elements of such service are not naturally bundled in the
ordinary course of business, it shall be treated as provision of the single
service which results in highest liability of service tax95.
Explanation.— For the purposes of sub-section (3), the expression "bundled
service" means a bundle of provision of various services wherein an element of
provision of one service is combined with an element or elements of provision of
any other service or services.’
93 The services provided by a real estate agent are in the nature of intermediary services
relating to immovable property. As per the Place of Provision of Service Rule, 2012, the
place of provision of services provided in relation to immovable property is the location
of the immovable property. However in terms of the rule 5 pertaining to services
provided by an intermediary the place of provision of service is where the intermediary
is located. Since Rule 5 provides a specific description of ‘estate agent‘, the same shall
prevail [Refer Para 9. 1.2 of Education Guide for details]
94 Eg. A hotel provides a 4-D/3-N package with the facility of breakfast. This is a natural
bundling of services in the ordinary course of business. The service of hotel
accommodation gives the bundle the essential character and would, therefore, be
treated as service of providing hotel accommodation [Refer Para 9.2.1 of Education
Guide for details]
95 Eg. A house is given on rent one floor of which is to be used as residence and the
other for housing a printing press. Such renting for two different purposes is not
naturally bundled in the ordinary course of business. Therefore, if a single rent deed is
executed it will be treated as a service comprising entirely of such service which
attracts highest liability of service tax. In this case renting for use as residence is a
negative list service while renting for non-residence use is chargeable to tax. Since the
latter category attracts highest liability of service tax amongst the two services bundled
together, the entire bundle would be treated as renting of commercial property [Refer
Para 9.2.2 of Education Guide for details]
42
SECTION 67. Valuation of taxable services for charging service tax. —
(1) Subject to the provisions of this Chapter, where service tax is chargeable on
any taxable service with reference to its value, then such value shall, —
(i) in a case where the provision of service is for a consideration in
money, be the gross amount charged by the service provider for such
service provided or to be provided by him;
(ii) in a case where the provision of service is for a consideration not
wholly or partly consisting of money, be such amount in money as,
with the addition of service tax charged, is equivalent to the
consideration;
(iii) in a case where the provision of service is for a consideration which is
not ascertainable, be the amount as may be determined in the
prescribed manner96.
(2) Where the gross amount charged by a service provider, for the service
provided or to be provided is inclusive of service tax payable, the value of
such taxable service shall be such amount as, with the addition of tax
payable, is equal to the gross amount charged.
(3) The gross amount charged for the taxable service shall include any amount
received towards the taxable service before, during or after provision of such
service.
(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be
determined in such manner as may be prescribed.
Explanation. — For the purposes of this section, —
(a) 97“consideration” includes
i. any amount that is payable for the taxable services provided or to
96 Rule 3 of Valuation Rules was amended vide Not. No. 24/2012-ST w.e.f. 1.7.2012 to
incorporate that it is applicable only in cases ‘where such value is not ascertainable’. In
this regard, the CBEC vide its Circular 334/1/2012-TRU dated 16.03.2012 had clarified
that ‘…it is proposed to amend Rule 3 of valuation rules to provide that ‘prescribed
manner’ in Rule 3 will be applicable only in the cases where valuation is not
ascertainable. At present Rule 3 has been inadvertently made applicable to situation
where consideration received is not wholly or partly consisting of money, which is fully
covered by the Act.” Thus, if the value can be determined in terms of section 67 (1) (ii)
itself, then reference need not be made to section 67 (1) (iii) (and in-turn to
Valuation Rules).
97 Substituted by Finance Act, 2015 w.e.f 14.05.2015 prior to substitution the clause read as under:
‘any amount that is payable for the taxable services provided or to be provided’
43
be provided98;
ii. 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 such circumstances, and
subject to such conditions, as may be prescribed99
iii. 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
(c) “gross amount charged” includes payment by cheque, credit card,
deduction from account and any form of payment by issue of credit
notes or debit notes and book adjustment, and any amount credited or
debited, as the case may be, to any account, whether called “Suspense
account” or by any other name, in the books of account of a person
liable to pay service tax, where the transaction of taxable service is
with any associated enterprise.
67A. Date of determination of rate of tax, value of taxable service and
rate of exchange 100. (1)101 The rate of service tax, value of a taxable
service and rate of exchange, if any, shall be the rate of service tax or value
of a taxable service or rate of exchange, as the case may be, in force or as
applicable at the time when the taxable service has been provided or agreed
to be provided.
98 Notional interest on security deposit taken for premises rented out on lease basis -
No evidence led by revenue to show that such security deposit has influenced the rent
received and it is only a presumption - Prima facie appellant has made a case in favour
- 2013-TIOL-1068-CESTAT-MUM
99 In the case of Intercontinental Consultants And Technocrats Pvt Ltd [2012-
TIOL-966-HC-DEL-ST] wherein the Delhi High Court held inclusion of reimbursable costs as ultra
vires Section 66 and 67 of the Act. Now, in order to overcome aforesaid judgment, by way of
Explanation to Section 67 it is clarified that ‘consideration’ includes ‘any reimbursable expenditure or
cost incurred by the service provider and charged, in the course of providing or agreeing to provide a
taxable service’. as may be prescribed now been specifically provided in the section that
reimbursement of expenses, incurred for providing taxable service by service provider, will chargeable
to service tax. It is pertinent to note that „Pure agent‟ reimbursement (subject to fulfillment of
prescribed conditions under per Rule 5(2) of STR) will continue to be excluded from value of taxable
service
100 With effect from 28 May 2012
101Re-numbered by Finance Bill, 2016
44
(2) The time or the point in time with respect to the rate of service tax shall be
such as may be prescribed102
Explanation.— For the purposes of this section, “rate of exchange” means the
rate of exchange determined in accordance with such rules as may be
prescribed103 Explanation.— For the purposes of this section, "rate of exchange"
means the rate of exchange referred to in the Explanation to section 14 of the
Customs Act, 1962 (52 of 1962.).
SECTION 68. Payment of service tax. — (1) Every person providing
taxable service to any person shall pay service tax at the rate specified in
section 66B104 in such manner and within such period as may be prescribed105.
(2) Notwithstanding anything contained in sub-section (1), in respect of such
taxable services as may be notified106 by the Central Government in the
Official Gazette, the service tax thereon shall be paid by such person and in
such manner as may be prescribed at the rate specified in section 66B107 and
all the provisions of this Chapter shall apply to such person as if he is the
person liable for paying the service tax in relation to such service.
Provided that the Central Government may notify the service and the extent of
service tax which shall be payable by such person and the provisions of this
Chapter shall apply to such person to the extent so specified and the remaining
part of the service tax shall be paid by the service provider108.
102 Inserted by Finance Bill, 2016 to obtain specific powers to specify Point of Taxation Rules, 2011
w.e.f. enactment of Finance Bill, 2016
103 Effective from a date to be notified
104 Substituted vide Service Tax (Removal of Difficulty) Order, 2012
105 Service recipient is required to reimburse the Service Tax to the service provider:
service tax is statutory liability. It is a tax which is required to be collected by the
service provider from the person to whom service is provided, and thereafter to be
deposited with government treasury within the prescribed time. Thus essentially the
statute is being imposing the tax upon the person to whom service is being provided,
and the service provider is merely a collecting agency. The respondent no.2 is directed
to make reimbursement of service tax to the petitioner. Bhagwati Security Services
2014-TIOL-33-HC-ALL-ST
106 Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012
107 Substituted vide Service Tax (Removal of Difficulty) Order, 2012
108 Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012
45
SECTION 69. Registration. —
(1) Every person liable to pay the service tax under this Chapter or the rules
made thereunder shall, within such time and in such manner and in such
form as may be prescribed, make an application for registration to the
Superintendent of Central Excise
(2) The Central Government may, by notification in the Official Gazette, specify
such other person or class of persons, who shall make an application for
registration within such time and in such manner and in such form as may
be prescribed.
SECTION 70. Furnishing of returns. —
(1) Every person liable to pay the service tax shall himself assess the tax due on
the services provided by him and shall furnish to the Superintendent of
Central Excise, a return in such form and in such manner and at such
frequency and with such late fee not exceeding twenty thousand rupees,
for delayed furnishing of return, as may be prescribed109.
(2) The person or class of persons notified under sub-section (2) of section 69,
shall furnish to the Superintendent of Central Excise, a return in such form
and in such manner and at such frequency as may be prescribed.
SECTION 71. Scheme for submission of Returns through Service Tax
Preparers. — (1) Without prejudice to the provisions of section 70, the Board
may, by notification in the Official Gazette, frame a Scheme for the purposes of
enabling any person or class of persons to prepare and furnish a return under
section 70, and authorise a Service Tax Return Preparer to act as such under the
Scheme.
(2) A Service Tax Return Preparer shall assist the person or class of persons to
prepare and furnish the return in such manner as may be specified in the
Scheme framed under this section.
(3) For the purposes of this section, —
(a) “Service Tax Return Preparer” means any individual, who has been
109 This penalty is applicable for delayed or non-filing of Service Tax returns. Upto
8.04.2011, this penalty was only Rs 2,000. This penalty is on a very high side as in
certain case the Service Tax liability may be Rs say 3,000 but penalty could go upto Rs
20,000. Government should consider restricting this penalty upto the maximum of
Service Tax liability.
46
authorised to act as a Service Tax Return Preparer under the Scheme
framed under this section;
(b) “person or class of persons” means such person, as may be specified in
the Scheme, who is required to furnish a return required to be filed
under section 70.
(4) The Scheme framed by the Board under this section may provide for the
following, namely :—
(a) the manner in which and the period for which the Service Tax Return
Preparer shall be authorised under sub-section (1);
(b) the educational and other qualifications to be possessed, and the
training and other conditions required to be fulfilled, by a person to act
as a Service Tax Return Preparer;
(c) the code of conduct for the Service Tax Return Preparer;
(d) the duties and obligations of the Service Tax Return Preparer;
(e) the circumstances under which the authorisation given to a Service Tax
Return Preparer may be withdrawn;
(f) any other matter which is required to be, or may be, specified by the
Scheme for the purposes of this section.
SECTION 72. Best judgment assessment. — If any person, liable to pay
service tax, —
(a) fails to furnish the return under section 70;
(b) having made a return, fails to assess the tax in accordance with the
provisions of this Chapter or rules made thereunder,
the Central Excise Officer, may require the person to produce such accounts,
documents or other evidence as he may deem necessary and after taking into
account all the relevant material which is available or which he has gathered,
shall by an order in writing, after giving the person an opportunity of being
heard, make the assessment of the value of taxable service to the best of his
judgment and determine the sum payable by the assessee or refundable to the
assessee on the basis of such assessment.
72A Special audit110.
110 With effect from 28 May 2012
47
(1) If the Commissioner of Central Excise, has reasons to believe that any
person liable to pay service tax (herein referred to as ''such person''),
(i) has failed to declare or determine the value of a taxable service correctly;
or
(ii) has availed and utilised credit of duty or tax paid-
(a) which is not within the normal limits having regard to the nature of
taxable service provided, the extent of capital goods used or the type
of inputs or input services used, or any other relevant factors as he
may deem appropriate; or
(b) by means of fraud, collusion, or any wilful misstatement or
suppression of facts; or
(iii) has operations spread out in multiple locations and it is not possible or
practicable to obtain a true and complete picture of his accounts from the
registered premises falling under the jurisdiction of the said
Commissioner, he may direct such person to get his accounts audited by a
chartered accountant or cost accountant nominated by him, to the extent
and for the period as may be specified by the Commissioner.
(2) The chartered accountant or cost accountant referred to in sub-section (1)
shall, within the period specified by the said Commissioner, submit a report
duly signed and certified by him to the said Commissioner mentioning therein
such other particulars as may be specified by him.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the
accounts of such person have been audited under any other law for the time
being in force.
(4) The person liable to pay tax shall be given an opportunity of being heard in
respect of any material gathered on the basis of the audit under sub-section
(1) and proposed to be utilised in any proceeding under the provisions of this
Chapter or rules made thereunder.
Explanation.— For the purposes of this section,––
(i) "chartered accountant" shall have the meaning assigned to it in clause (b) of
sub-section (1) of section 2 of the Chartered Accountants Act, 1949(38 of
1949.);
(ii) "cost accountant" shall have the meaning assigned to it in clause (b) of sub-
48
section (1) of section 2 of the Cost and Works Accountants Act, 1959(23 of
1959.).'
SECTION 73. Recovery of service tax not levied or paid or short-levied
or short-paid or erroneously refunded. — (1) Where any service tax has not
been levied or paid or has been short-levied or short-paid or erroneously
refunded, Central Excise Officer may, within eighteen monthsthirty
month111112 from the relevant date, serve notice on the person chargeable with
the service tax which has not been levied or paid or which has been short-levied
or short-paid or the person to whom such tax refund has erroneously been
made, requiring him to show cause why he should not pay the amount specified
in the notice :
113Provided that where any service tax has not been levied or paid or has been
short-levied or short-paid or erroneously refunded by reason of —
(a) fraud; or
(b) collusion; or
(c) wilful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or of the rules
made thereunder with intent to evade payment of service tax,
by the person chargeable with the service tax or his agent, the provisions of this
sub-section shall have effect, as if, for the words “eighteen months114”, the
words “five years” had been substituted115.
111 Substituted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
112 With effect from 28 May 2012
113 Once the Commissioner (Appeals) has come to a finding that for the relevant period,
there was genuine cause for confusion regarding the correct legal position and also
scope for doubt about the service tax liability on GTA as the 'Commercial concern' for
non-imposition of penalty then the same cause is also to be factored in to conclude that
extended period of limitation cannot be invoked - The Saswad Mali Sugar Factory Ltd
2013-TIOL-898-HC-MUM-ST
114 With effect from 28 May 2012
115 The Supreme Court has observed in the case of Cosmic Dye Chemical [1995 (75) ELT
721 (SC)] observed that–
Intent to evade duty is built in to the expressions ‘fraud’ and ‘collusion’
‘Mis-statement’ and ‘suppression’ have been qualified by immediately preceding
words ‘willful’
‘Contravention of any of the provisions of this Act or rules’ has been qualified by the
immediately following words ‘with intent to evade payment of duty’.
49
Explanation. — Where the service of the notice is stayed by an order of a court,
the period of such stay shall be excluded in computing the aforesaid period of
eighteen months116 or five years, as the case may be.
(1A)117 Notwithstanding anything contained in sub-section (1) (except the period
of eighteen monthsthirty months118 of serving the notice for recovery of
service tax), the Central Excise Officer may serve, subsequent to any
notice or notices served under that sub-section, a statement, containing
the details of service tax not levied or paid or short levied or short paid or
erroneously refunded for the subsequent period, on the person chargeable
to service tax, then, service of such statement shall be deemed to be
service of notice on such person, subject to the condition that the grounds
relied upon for the subsequent period are same as are mentioned in the
earlier notices.
(1B) Notwithstanding anything contained in sub-section (1), in a case where the
amount of service tax payable has been self-assessed in the return
furnished under sub-section (1) of section 70, but not paid either in full or
in part, the same shall be recovered along with interest thereon in any of
the modes specified in section 87, without service of notice under sub-
section (1)119
(2) The Central Excise Officer shall, after considering the representation, if any,
made by the person on whom notice is served under sub-section (1),
determine the amount of service tax due from, or erroneously refunded to,
such person (not being in excess of the amount specified in the notice) and
thereupon such person shall pay the amount so determined :
* * * * *
Thus, to invoke the proviso to the section 73 (1) of the Finance Act, 1994 and the
extended period of limitation Department should prove that the assessee has made
a misstatement or suppression which is ‘willful’ or has acted with ‘intent to evade
payment of duty’.
116 With effect from 28 May 2012
117 With effect from 28 May 2012
118 Substituted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
119 Applicable from 14.05.2015
50
120(2A) Where any appellate authority or tribunal or court concludes that the
notice issued under the proviso to sub-section (1) is not sustainable for the
reason that the charge of,—
(a) fraud; or
(b) collusion; or
(c) wilful misstatement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or the rules made
thereunder with intent to evade payment of service tax,
has not been established against the person chargeable with the service
tax, to whom the notice was issued, the Central Excise Officer shall
determine the service tax payable by such person for the period of
eighteen monthsthirty months121, as if the notice was issued for the
offences for which limitation of eighteen months applies under sub-section
(1)
(3) Where any service tax has not been levied or paid or has been short-levied
or short-paid or erroneously refunded, the person chargeable with the service
tax, or the person to whom such tax refund has erroneously been made, may
pay the amount of such service tax, chargeable or erroneously refunded, on the
basis of his own ascertainment thereof, or on the basis of tax ascertained by a
Central Excise Officer before service of notice on him under sub-section (1) in
respect of such service tax, and inform the Central Excise Officer of such
payment in writing, who, on receipt of such information shall not serve any
notice under sub-section (1) in respect of the amount so paid122:
120 Applicable from 10 May 2013
121 Substituted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
122 Even, CBEC vide Circular F. No. 137/167/2006-CX-4, dated 3-10-2007 clarified
that sub-section (3) of Section 73 provides for conclusion of adjudication proceedings in
respect of person who has voluntarily deposited the service tax. The relevant extract of
the circular is reproduced below:
“2. A question has been raised as to whether the conclusion of proceedings in such cases
is limited to the action taken under section 73 of the Act or all proceedings under the
Finance Act, 1994, including those under section 76, 77 and 78, get concluded.
3. The issue has been examined. The intention of section 73(1A) has already been
explained vide para 8(g) of the post budget instructions issued by TRU vide D.O.F. No.
334/4/2006-TRU., dated 28-2-2006 [2006 (4) S.T.R. C30], wherein it has been
clarified that this sub-section provides for conclusion of adjudication proceedings in
respect of person who has voluntarily deposited the service tax.
3.1 The relevant portion of section 73 is reproduced below-
51
Provided that the Central Excise Officer may determine the amount of short-
payment of service tax or erroneously refunded service tax, if any, which in his
opinion has not been paid by such person and, then, the Central Excise Officer
shall proceed to recover such amount in the manner specified in this section,
and the period of “eighteen months123thirty months124” referred to in sub-section
(1) shall be counted from the date of receipt of such information of payment.
Explanation.1 — For the removal of doubts, it is hereby declared that the
interest under section 75 shall be payable on the amount paid by the person
under this sub-section and also on the amount of short payment of service tax
or erroneously refunded service tax, if any, as may be determined by the Central
Excise Officer, but for this sub-section.
Explanation 2. — For the removal of doubts, it is hereby declared that no
penalty under any of the provisions of this Act or the rules made thereunder
shall be imposed in respect of payment of service tax under this sub-section and
interest thereon.
(4) Nothing contained in sub-section (3) shall apply to a case where any
service tax has not been levied or paid or has been short-levied or short-paid
or erroneously refunded by reason of —
(a) fraud; or
(b) collusion; or
(c) wilful mis-statement; or
“Provided further that where such person has paid service tax in full together with
interest and penalty under sub-section (1A), the proceeding in respect of such person
and other person to whom notices are served under sub-section (1) shall be deemed to
be concluded.”
Thus, law prescribes conclusion of proceedings against such person to whom SCN is
issued under sub-section (1) of section 73. Therefore, it is not merely a conclusion
under sub-section (1), but conclusion of all proceeding against such person. Similar is
the position in respect of sub-section (3) of section 73.
4. Accordingly, conclusion of proceeding in terms of sub-section (1A) and (3) of section
73 implies conclusion of entire proceedings under the Finance Act, 1994.”
123 With effect from 28 May 2012
124 Substituted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
52
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or of the
rules made thereunder with intent to evade payment of service
tax.
125
(4B) The Central Excise Officer shall determine the amount of service tax due
under subsection (2)—
(a) within six months from the date of notice where it is possible to do so, in
respect of cases whose limitation is specified as eighteen months in sub-
section (1)
(b) within one year from the date of notice, where it is possible to do so, in
respect of cases falling under the proviso to sub-section (1) or the proviso to
sub-section (4A)
(5) The provisions of sub-section (3) shall not apply to any case where the
service tax had become payable or ought to have been paid before the 14th
day of May, 2003.
(6) For the purposes of this section, “relevant date” means, —
(i) in the case of taxable service in respect of which service tax has not
been levied or paid or has been short-levied or short-paid —
(a) where under the rules made under this Chapter, a periodical
return, showing particulars of service tax paid during the period to
which the said return relates, is to be filed by an assessee, the
date on which such return is so filed;
(b) where no periodical return as aforesaid is filed, the last date on
which such return is to be filed under the said rules;
(c) in any other case, the date on which the service tax is to be paid
under this Chapter or the rules made thereunder;
(ii) in a case where the service tax is provisionally assessed under this
Chapter or the rules made thereunder, the date of adjustment of the
service tax after the final assessment thereof;
(iii) in a case where any sum, relating to service tax, has erroneously been
refunded, the date of such refund.
125 Deleted w.e.f 14.05.2015
53
SECTION 73A. Service tax collected from any person to be deposited
with Central Government. —
(1) Any person who is liable to pay service tax under the provisions of this
Chapter or the rules made thereunder, and has collected any amount in
excess of the service tax assessed or determined and paid on any taxable
service under the provisions of this Chapter or the rules made thereunder
from the recipient of taxable service in any manner as representing service
tax, shall forthwith pay the amount so collected to the credit of the Central
Government.
(2) Where any person who has collected any amount, which is not required to
be collected, from any other person, in any manner as representing service
tax, such person shall forthwith pay the amount so collected to the credit of
the Central Government.
(3) Where any amount is required to be paid to the credit of the Central
Government under sub-section (1) or sub-section (2) and the same has not
been so paid, the Central Excise Officer shall serve, on the person liable to
pay such amount, a notice requiring him to show cause why the said
amount, as specified in the notice, should not be paid by him to the credit of
the Central Government.
(4) The Central Excise Officer shall, after considering the representation, if any,
made by the person on whom the notice is served under sub-section (3),
determine the amount due from such person, not being in excess of the
amount specified in the notice, and thereupon such person shall pay the
amount so determined.
(5) The amount paid to the credit of the Central Government under sub-section
(1) or sub-section (2) or sub-section (4), shall be adjusted against the
service tax payable by the person on finalisation of assessment or any other
proceeding for determination of service tax relating to the taxable service
referred to in sub-section (1).
(6) Where any surplus amount is left after the adjustment under sub-section
(5), such amount shall either be credited to the Consumer Welfare Fund
referred to in section 12C of the Central Excise Act, 1944 (1 of 1944) or, as
the case may be, refunded to the person who has borne the incidence of
such amount, in accordance with the provisions of section 11B of the said
Act and such person may make an application under that section in such
54
cases within six months from the date of the public notice to be issued by
the Central Excise Officer for the refund of such surplus amount.
SECTION 73B. Interest on amount collected in excess. —
Where an amount has been collected in excess of the tax assessed or
determined and paid for any taxable service under this Chapter or the rules
made thereunder from the recipient of such service, the person who is liable to
pay such amount as determined under sub-section (4) of section 73A, shall, in
addition to the amount, be liable to pay interest at such rate not below ten per
cent. and not exceeding twenty-four per cent. per annum, as is for the time
being fixed by the Central Government, by notification in the Official Gazette,
from the first day of the month succeeding the month in which the amount
ought to have been paid under this Chapter, but for the provisions contained in
sub-section (4) of section 73A, till the date of payment of such amount :
Provided that in such cases where the amount becomes payable consequent to
issue of an order, instruction or direction by the Board under section 37B of the
Central Excise Act, 1944 (1 of 1944), and such amount payable is voluntarily
paid in full, without reserving any right to appeal against such payment at any
subsequent stage, within forty-five days from the date of issue of such order,
instruction or direction, as the case may be, no interest shall be payable and in
other cases, the interest shall be payable on the whole amount, including the
amount already paid.
Provided further that in the case of a service provider, whose value of taxable
services provided in a financial year does not exceed sixty lakh rupees during
any of the financial years covered by the notice issued under sub-section (3) of
section 73A or during the last preceding financial year, as the case may be, such
rate of interest shall be reduced by three per cent. per annum.
Explanation 1. — Where the amount determined under sub-section (4) of
section 73A is reduced by the Commissioner (Appeals), the Appellate Tribunal
or, as the case may be, the court, the interest payable thereon under this
section shall be on such reduced amount.
55
Explanation 2. — Where the amount determined under sub-section (4) of
section 73A is increased by the Commissioner (Appeals), the Appellate Tribunal
or, as the case may be, the court, the interest payable thereon under this
section shall be on such increased amount.
SECTION 73C. Provisional attachment to protect revenue in certain
cases. —
(1) Where, during the pendency of any proceeding under section 73 or section
73A, the Central Excise Officer is of the opinion that for the purpose of
protecting the interests of revenue, it is necessary so to do, he may, with the
previous approval of the Commissioner of Central Excise, by order in writing,
attach provisionally any property belonging to the person on whom notice is
served under sub-section (1) of section 73 or sub-section (3) of section 73A,
as the case may be, in such manner as may be prescribed.
(2) Every such provisional attachment shall cease to have effect after the expiry of
a period of six months from the date of the order made under sub-section (1) :
Provided that the Chief Commissioner of Central Excise may, for reasons to be
recorded in writing, extend the aforesaid period by such further period or periods
as he thinks fit, so, however, that the total period of extension shall not in any
case exceed two years.
SECTION 73D. Publication of information in respect of persons in
certain cases. —
(1) If the Central Government is of the opinion that it is necessary or expedient
in the public interest to publish the name of any person and any other
particulars relating to any proceedings under this Chapter in respect of such
person, it may cause to be published such names and particulars in such
manner as may be prescribed.
(2) No publication under this section shall be made in relation to any penalty
imposed under this Chapter until the time for presenting an appeal to the
Commissioner (Appeals) under section 85 or the Appellate Tribunal under
section 86, as the case may be, has expired without an appeal having been
presented or the appeal, if presented, has been disposed of.
56
Explanation. — In the case of a firm, company or other association of persons,
the names of the partners of the firm, directors, managing agents, secretaries
and treasurers or managers of the company, or the members of the association,
as the case may be, shall also be published if, in the opinion of the Central
Government, circumstances of the case justify it.
SECTION 74. Rectification of mistake. —
(1) With a view to rectifying any mistake apparent from the record, the Central
Excise Officer who passed any order under the provisions of this Chapter
may, within two years of the date on which such order was passed, amend
the order.
(2) Where any matter has been considered and decided in any proceeding by
way of appeal or revision relating to an order referred to in sub-section (1),
the Central Excise Officer passing such order may, notwithstanding anything
contained in any law for the time being in force, amend the order under that
sub-section in relation to any matter other than the matter which has been
so considered and decided.
(3) Subject to the other provisions of this section, the Central Excise Officer
concerned -
(a) may make an amendment under sub-section (1) of his own motion; or
(b) shall make such amendment if any mistake is brought to his notice by
the assessee or the Commissioner of Central Excise or the
Commissioner of Central Excise (Appeals).
(4) An amendment, which has the effect of enhancing the liability of the
assessee or reducing a refund, shall not be made under this section unless
the Central Excise Officer concerned has given notice to the assessee of his
intention so to do and has allowed the assessee a reasonable opportunity of
being heard.
(5) Where an amendment is made under this section, an order shall be passed
in writing by the Central Excise Officer concerned.
(6) Subject to the other provisions of this Chapter where any such amendment
has the effect of reducing the liability of an assessee or increasing the
refund, the Central Excise Officer shall make any refund which may be due
to such assessee.
(7) Where any such amendment has the effect of enhancing the liability of the
57
assessee or reducing the refund already made, the Central Excise Officer
shall make an order specifying the sum payable by the assessee and the
provisions of this Chapter shall apply accordingly.
SECTION 75. Interest on delayed payment of service tax. — Every
person, liable to pay the tax in accordance with the provisions of section 68 or
rules made thereunder, who fails to credit the tax or any part thereof to the
account of the Central Government within the period prescribed, shall pay simple
interest at such rate not below ten per cent. and not exceeding thirty-six per
cent. per annum, as is for the time being fixed by the Central Government, by
notification in the Official Gazette for the period by which such crediting of the
tax or any part thereof is delayed.
Provided that in the case of a person who collects any amount as service
tax but fails to pay the amount so collected to the credit of the Central
Government, on or before the date on which such payment is due, the
Central Government may, by notification in the Official Gazette, specify
such other rate of interest, as it may deem necessary126127Provided that
in the case of a service provider, whose value of taxable services provided in a
financial year does not exceed sixty lakh rupees during any of the financial
years covered by the notice or during the last preceding financial year, as the
case may be, such rate of interest, shall be reduced by three per cent. per
annum.128
SECTION 75A. * * * *
SECTION 76. Penalty for failure to pay service tax. — (1) Where service
tax has not been levied or paid, or has been short-levied or short-paid, or
erroneously refunded, for any reason, other than the reason of fraud or collusion
or wilful misstatement or suppression of facts or contravention of any of the
provisions of this Chapter or of the rules made thereunder with the intent to
evade payment of service tax, the person who has been served notice under
126 Substituted by Finance Bill, 2016 w.e.f from enactment of Finance Bill, 2016
127 Refer Notification No. 13/2016-ST for rate of interest
128 As per TRU In case of assessees, whose value of taxable services in the preceding year/years
covered by the notice is less than Rs. 60 Lakh, the rate of interest on delayed payment of service tax
will be 12%
58
sub-section (1) of section 73 shall, in addition to the service tax and interest
specified in the notice, be also liable to pay a penalty not exceeding ten per
cent. of the amount of such service tax Provided that where such service
tax and interest is paid within a period of thirty days of–
(i) the date of service of notice under sub-section (1) of section 73, no
penalty shall be payable;
(ii) the date of receipt of the order of the Central Excise Officer determining
the amount of service tax under sub-section (2) of section 73, the penalty
payable shall be twenty-five per cent. of the penalty imposed in that
order, only if such reduced penalty is also paid within such period.
(2) Where the Commissioner (Appeals), the Appellate Tribunal or, the court, as
the case may be, modifies the service tax determined under sub-section (2) of
section 73, then, the amount of penalty payable thereon, shall also stand
modified accordingly, and the benefit of reduced penalty under the proviso to
sub-section (1) shall be available if such service tax, interest and reduced
penalty so payable, is paid within a period of thirty days from the date of receipt
of the order by which such modification is made129
SECTION 77. Penalty for contravention of rules and provisions of Act
for which no penalty is specified elsewhere. — (1) Any person, —
130(a) who is liable to pay service tax or required to take registration, fails
to take registration in accordance with the provisions of section 69 or
rules made under this Chapter shall be liable to a penalty which may
extend to ten thousand rupees
(b) who fails to keep, maintain or retain books of account and other
documents as required in accordance with the provisions of this
Chapter or the rules made thereunder, shall be liable to a penalty
which may extend to ten thousand rupees;
(c) who fails to —
(i) furnish information called by an officer in accordance with the
provisions of this Chapter or rules made thereunder; or
129 Substituted by Finance Act, 2015 w.e.f. 14.05.2015
130 Substituted from 10 May 2013
59
(ii) produce documents called for by a Central Excise Officer in
accordance with the provisions of this Chapter or rules made
thereunder; or
(iii) appear before the Central Excise Officer, when issued with a
summon for appearance to give evidence or to produce a
document in an inquiry,
shall be liable to a penalty which may extend to ten thousand rupees or
two hundred rupees for everyday during which such failure continues,
whichever is higher, starting with the first day after the due date, till the
date of actual compliance;
(d) who is required to pay tax electronically, through internet banking,
fails to pay the tax electronically, shall be liable to a penalty which may
extend to ten thousand rupees;
(e) who issues invoice in accordance with the provisions of the Act or rules
made thereunder, with incorrect or incomplete details or fails to
account for an invoice in his books of account, shall be liable to a
penalty which may extend to ten thousand rupees.
(2) Any person, who contravenes any of the provisions of this Chapter or any
rules made thereunder for which no penalty is separately provided in this
Chapter, shall be liable to a penalty which may extend to ten thousand
rupees.
SECTION 78. Penalty for suppressing, etc. of value of taxable services.
—
(1) Where any service tax has not been levied or paid, or has been short-levied
or shortpaid, or erroneously refunded, by reason of fraud or collusion or wilful
mis-statement or suppression of facts or contravention of any of the provisions
of this Chapter or of the rules made thereunder with the intent to evade
payment of service tax, the person who has been served notice under the
proviso to sub-section (1) of section 73 shall, in addition to the service tax and
interest specified in the notice, be also liable to pay a penalty which shall be
equal to hundred per cent. of the amount of such service tax Provided that
where such service tax and interest is paid within a period of thirty days of –
(i) the date of service of notice under the proviso to sub-section (1) of section
73, the penalty payable shall be fifteen per cent. of such service tax;
60
(ii) the date of receipt of the order of the Central Excise Officer determining the
amount of service tax under sub-section (2) of section 73, the penalty payable
shall be twenty-five per cent. of the service tax so determined
Provided further that the benefit of reduced penalty under the first proviso shall
be available only if the amount of such reduced penalty is also paid within such
period
(2) Where the Commissioner ( Appeals), the Appellate Tribunal or the court, as
the case may be, modifies the service tax determined under sub-section (2) of
section 73, then, the amount of penalty payable thereon, shall also stand
modified accordingly, and the benefit of reduced penalty under the first proviso
to sub-section (1) shall be available if such service tax, interest and reduced
penalty so payable, is paid within a period of thirty days from the date of
receipt of the order by which such modification is made 131
13278A. Where a company has committed any of the following contraventions,
namely:—
(a) evasion of service tax; or
(b) issuance of invoice, bill or, as the case may be, a challan without provision of
taxable service in violation of the rules made under the provisions of this
Chapter; or
(c) availment and utilisation of credit of taxes or duty without actual receipt of
taxable service or excisable goods either fully or partially in violation of the
rules made under the provisions of this Chapter; or
(d) failure to pay any amount collected as service tax to the credit of the Central
Government beyond a period of six months from the date on which such
payment becomes due,
then any director, manager, secretary or other officer of such company,
who at the time of such contravention was in charge of, and was responsible to,
the company for the conduct of business of such company and was knowingly
concerned with such contravention, shall be liable to a penalty which may
extend to one lakh rupees
Explanation.– For the removal of doubts, it is hereby clarified that where any
service tax has not been levied or paid or has been short-levied or short-paid or
131 Substituted by Finance Act, 2015 w.e.f. 14.05.2015
132 Inserted from 10 May 2013
61
erroneously refunded, and the proceedings with respect to a notice issued under
sub-section (1) of section 73 or the proviso to sub-section (1) of section 73 is
concluded in accordance with the provisions of clause (i) of the first proviso to
section 76 or clause (i) of the second proviso to section 78, as the case may be,
the proceedings pending against any person under this section shall also be
deemed to have been concluded133
78B (1) Where, in any case,––
(a) service tax has not been levied or paid or has been short-levied or short-paid
or erroneously refunded and no notice has been served under sub-section (1)
of section 73 or under the proviso thereto, before the date on which the Finance
Bill, 2015 receives the assent of the President; or
(b) service tax has not been levied or paid or has been short-levied or short-paid
or erroneously refunded and a notice has been served under sub-section (1)
of section 73 or under the proviso thereto, but no order has been passed
under sub-section (2) of section 73, before the date on which the Finance Bill,
2015 receives the assent of the President,
then, in respect of such cases, the provisions of section 76 or section 78, as the
case may be, as amended by the Finance Act, 2015 shall be applicable
(2) Notwithstanding anything contained in sub-section (1), in respect of cases
falling under the provisions of sub-section (4A) of section 73 as was in force
prior to the date of coming into force of the Finance Act, 2015, where no notice
under the proviso to sub-section (1) of section 73 has been served on any
person or, where so served, no order has been passed under sub-section (2) of
section 73, before such date, the penalty leviable shall not exceed fifty per cent.
of the service tax.134
SECTION 79. * * * *
135
SECTION 81. * * *
SECTION 82. Power to search premises. —
133 Inserted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
134 Inserted by Finance Act, 2015 w.e.f. 14.05.2015
135 Deleted by Finance Act, 2015 w.e.f. 14.05.2015
62
“(1) Where the Joint Commissioner of Central Excise or Additional Commissioner
of Central Excise or such other Central Excise officer as may be notified by the
Board has reasons to believe that any documents or books or things, which in
his opinion shall be useful for or relevant to any proceedings under this Chapter,
are secreted in any place, he may authorise in writing any Central Excise officer
to search for and seize or may himself search and seize such documents or
books or things136
(2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974),
relating to searches, shall, so far as may be, apply to searches under this section
as they apply to searches under that Code.
SECTION 83. Application of certain provisions of Act 1 of 1944. — The
provisions of the following sections of the Central Excise Act, 1944, as in force
from time to time, shall apply, so far as may be, in relation to service tax as
they apply in relation to a duty of excise :-
[sub-section (2A) of section 5A137, Subsection (2) of section]138 9A, 9AA, 9B, 9C,
9D, 9E, 11B, 11BB, 11C, 12, 12A, 12B, 12C, 12D, 12E, 14, 15, 15A, 15B, 31,
32, 32A to 32P (both inclusive), 33A, 34A, 35EE, 35F139, 35FF, to 35O (both
inclusive), 35Q, 35R, 36, 36A, 36B, 37A, 37B, 37C, 37D 38A and 40.
SECTION 83A. Power of adjudication. — Where under this Chapter or the
rules made thereunder any person is liable to a penalty, such penalty may be
adjudged by the Central Excise Officer conferred with such power as the Central
Board of Excise and Customs constituted under the Central Boards of Revenue
Act, 1963 (54 of 1963), may, by notification in the Official Gazette, specify.
SECTION 84. Appeals to Commissioner of Central Excise (Appeals). — (1)
The Commissioner of Central Excise may, of his own motion, call for and
examine the record of any proceedings in which an adjudicating authority
subordinate to him has passed any decision or order under this Chapter for the
purpose of satisfying himself as to the legality or propriety of any such decision
or order and may, by order, direct such authority or any Central Excise Officer
subordinate to him to apply to the Commissioner of Central Excise (Appeals) for
136 WEF Presidential assent
137 WEF Presidential assent
138 Inserted from 10 May 2013
139 With effect from 28 May 2012
63
the determination of such points arising out of the decision or order as may be
specified by the Commissioner of Central Excise in his order.
(2) Every order under sub-section (1) shall be made within a period of
three months from the date of communication of the decision or order of the
adjudicating authority.
(3) Where in pursuance of an order under sub-section (1), the
adjudicating authority or any other officer authorised in this behalf makes an
application to the Commissioner of Central Excise (Appeals) within a period of
one month from the date of communication of the order under sub-section (1) to
the adjudicating authority, such application shall be heard by the Commissioner
of Central Excise (Appeals), as if such application were an appeal made against
the decision or order of the adjudicating authority and the provisions of this
Chapter regarding appeals shall apply to such application.
Explanation. — For the removal of doubts, it is hereby declared that any
order passed by an adjudicating officer subordinate to the Commissioner of
Central Excise immediately before the commencement of clause (C) of section
112 of the Finance (No. 2) Act, 2009, shall continue to be dealt with by the
Commissioner of Central Excise as if this section had not been substituted.
SECTION 85. Appeals to the Commissioner of Central Excise (Appeals).
— (1) Any person aggrieved by any decision or order passed by an adjudicating
authority subordinate to the Commissioner of Central Excise may appeal to the
Commissioner of Central Excise (Appeals).
(2) Every appeal shall be in the prescribed form and shall be verified in the
prescribed manner.
(3) An appeal shall be presented within three months from the date of receipt
of the decision or order of such adjudicating authority, relating to service tax,
interest or penalty under this Chapter , made before the date on which the
Finance Bill, 2012 receives the assent of the President140 :
Provided that the Commissioner of Central Excise (Appeals) may, if he is
satisfied that the appellant was prevented by sufficient cause from presenting
the appeal within the aforesaid period of three months, allow it to be presented
within a further period of three months.
140 With effect from 28 May 2012
64
(3A)141 An appeal shall be presented within two months142 from the date of
receipt of the decision or order of such adjudicating authority, made on and after
the Finance Bill, 2012 receives the assent of the President, relating to service
tax, interest or penalty under this Chapter:
Provided that the Commissioner of Central Excise (Appeals) may, if he is
satisfied that the appellant was prevented by sufficient cause from presenting
the appeal within the aforesaid period of two months, allow it to be presented
within a further period of one month."
(4) The Commissioner of Central Excise (Appeals) shall hear and determine the
appeal and, subject to the provisions of this Chapter, pass such orders as he
thinks fit and such orders may include an order enhancing the service tax,
interest or penalty :
Provided that an order enhancing the service tax, interest or penalty shall not
be made unless the person affected thereby has been given a reasonable
opportunity of showing cause against such enhancement.
(5) Subject to the provisions of this Chapter, in hearing the appeals and
making orders under this section, the Commissioner of Central Excise (Appeals)
shall exercise the same powers and follow the same procedure as he exercises
and follows in hearing the appeals and making orders under the Central Excise
Act, 1944 (1 of 1944).
SECTION 86. Appeals to Appellate Tribunal. —
(1) Save as otherwise provided herein, an assessee143 aggrieved by an order
passed by a Commissioner of Central Excise under section 73 or section
83A * * * , or an order passed by a Commissioner of Central Excise
141 With effect from 28 May 2012
142 The materials available on record showed that order was passed by the original
authority on 27.03.2012 and that the amendment came into force on 28.05.2012.
Therefore the petitioner is justified in its contention that the appeal should have been
taken up on file in accordance with the regulations in force prior to 28.05.2012-
Winwind Power Energy Pvt Ltd 2013-TIOL-863-HC-MAD-ST
143 Substituted for ‘Commissioner’ by Finance Act, 2015. Applicable from 14.05.2015
65
(Appeals) under section 85, may appeal to the Appellate Tribunal against
such order within three months of the date of receipt of the order144.
Provided that where an order, relating to a service which is exported, has been
passed under section 85 and the matter relates to grant of rebate of service tax
on input services, or rebate of duty paid on inputs, used in providing such
service, such order shall be dealt with in accordance with the provisions of
section 35EE of the Central Excise Act, 1944
Provided further that all appeals filed before the Appellate Tribunal in respect of
matters covered under the first proviso, after the coming into force of the
Finance Act, 2012, and pending before it up to the date on which the Finance
Bill, 2015 receives the assent of the President, shall be transferred and dealt
with in accordance with the provisions of section 35EE of the Central Excise Act,
1944145
(1A)(i) The Board may, by order, constitute such Committees as may be
necessary for the purposes of this Chapter.
(ii) Every Committee constituted under clause (i) shall consist of two Chief
Commissioners of Central Excise or two Commissioners of Central Excise,
as the case may be.
(2) The Committee of Chief Commissioners of Central Excise may, if it objects
to any order passed by the Commissioner of Central Excise under section
73 or section 83A * * * , direct the Commissioner of Central Excise
to appeal to the Appellate Tribunal against the order :
Provided that where the Committee of Chief Commissioners of Central
Excise differs in its opinion against the order of the Commissioner of
Central Excise, it shall state the point or points on which it differs and make
a reference to the Board which shall, after considering the facts of the
order, if is of the opinion that the order passed by the Commissioner of
Central Excise is not legal or proper, direct the Commissioner of Central
Excise to appeal to the Appellate Tribunal against the order.
144 With effect from 28 May 2012
145 Inserted by Finance Act, 2015 w.e.f. 14.05.2015
66
(2A) The Committee of Commissioners may, if it objects to any order passed by
the Commissioner of Central Excise (Appeals) under section 85, direct any
Central Excise Officer to appeal on its behalf to the Appellate Tribunal
against the order :
Provided that where the Committee of Commissioners differs in its opinion
against the order of the Commissioner of Central Excise (Appeals), it shall state
the point or points on which it differs and make a reference to the jurisdictional
Chief Commissioner who shall, after considering the facts of the order, if is of
the opinion that the order passed by the Commissioner of Central Excise
(Appeals) is not legal or proper, direct any Central Excise Officer to appeal to the
Appellate Tribunal against the order.
Explanation. — For the purposes of this sub-section, “jurisdictional Chief
Commissioner” means the Chief Commissioner having jurisdiction over the
concerned adjudicating authority in the matter.
(3) Every appeal under sub-section (2) or sub-section (2A) shall be filed within
four months from the date on which the order sought to be appealed against
is received by the Committee of Chief Commissioners or, as the case may
be, the Committee of Commissioners.
(4) The Commissioner of Central Excise or any Central Excise Officer
subordinate to him or the assessee, as the case may be, on receipt of a
notice that an appeal against the order of the Commissioner of Central
Excise or the Commissioner of Central Excise (Appeals) has been preferred
under sub-section (1) or sub-section (2) or sub-section (2A) by the other
party may, notwithstanding that he may not have appealed against such
order or any part thereof, within forty-five days of the receipt of the notice,
file a memorandum of cross-objections, verified in the prescribed manner,
against any part of the order of the Commissioner of Central Excise or the
Commissioner of Central Excise (Appeals), and such memorandum shall be
disposed of by the Appellate Tribunal as if it were an appeal presented within
the time specified in sub-section (3).
67
(5) The Appellate Tribunal may admit an appeal or permit the filing of a
memorandum of cross-objections after the expiry of the relevant period
referred to in sub-section (1) or146 sub-section (3) or sub-section (4) if it is
satisfied that there was sufficient cause for not presenting it within that
period.
(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall
be verified in the prescribed manner and shall, irrespective of the date of
demand of service tax and interest or of levy of penalty in relation to which
the appeal is made, be accompanied by a fee of, —
(a) where the amount of service tax and interest demanded and penalty
levied by any Central Excise Officer in the case to which the appeal
relates is five lakh rupees or less, one thousand rupees;
(b) where the amount of service tax and interest demanded and penalty
levied by any Central Excise Officer in the case to which the appeal
relates is more than five lakh rupees but not exceeding fifty lakh
rupees, five thousand rupees;
(c) where the amount of service tax and interest demanded and penalty
levied by any Central Excise Officer in the case to which the appeal
relates is more than fifty lakh rupees, ten thousand rupees :
Provided that no fee shall be payable in the case of an appeal referred to
in sub-section (2) or sub-section (2A) or a memorandum of cross-
objections referred to in sub-section (4).
(6A) Every application made before the Appellate Tribunal, —
(a) in an appeal 147for rectification of mistake or for any other
purpose; or
(b) for restoration of an appeal or an application,
shall be accompanied by a fee of five hundred rupees :
Provided that no such fee shall be payable in the case of an application
146 Inserted from 10 May 2013
147 WEF Presidential assent
68
filed by the Commissioner of Central Excise or Assistant Commissioner of
Central Excise or Deputy Commissioner of Central Excise, as the case may
be under this sub-section.
(7) Subject to the provisions of this Chapter, in hearing the appeals and
making orders under this section, the Appellate Tribunal shall exercise
the same powers and follow the same procedure as it exercises and
follows in hearing the appeals and making orders under the Central
Excise Act, 1944 (1 of 1944)148.
SECTION 87. Recovery of any amount due to Central Government149. —
Where any amount payable by a person to the credit of the Central Government
under any of the provisions of this Chapter or of the rules made thereunder is
not paid, the Central Excise Officer shall proceed to recover the amount by one
or more of the modes mentioned below :—
(a) the Central Excise Officer may deduct or may require any other Central
Excise Officer or any officer of customs to deduct the amount so payable
from any money owing to such person which may be under the control of
the said Central Excise Officer or any officer of customs;
(b) (i) the Central Excise Officer may, by notice in writing, require any other
person from whom money is due or may become due to such person, or
who holds or may subsequently hold money for or on account of such
person, to pay to the credit of the Central Government either forthwith
upon the money becoming due or being held or at or within the time
specified in the notice, not being before the money becomes due or is held,
so much of the money as is sufficient to pay the amount due from such
person or the whole of the money when it is equal to or less than that
148 Provisions pertaining to stay etc as applicable to Central Excise etc are made
applicable to Service Tax vide this Section 86 (7)
149 Unless VCES application is considered and decided, proceedings under Section 87 for
recovery should not be initiated. The object of the VCES may be defeated, if the
recovery is allowed to proceed – K Anand Caterers 2013-TIOL-741-HC-ALL-ST
CBEC Circular No. 967/01/2013: The provisions contained in the circular dated 1 January
2013 mandating the initiation of recovery proceedings thirty days after the filing of an
appeal, if no stay is granted, cannot be applied to an assessee who has filed an
application for stay, which has remained pending for reasons beyond the control of the
assessee- Patel Engineering Limited 2013-TIOL-150-HC-MUM-ST
69
amount;
(ii) every person to whom a notice is issued under this section shall be
bound to comply with such notice, and in particular, where any such
notice is issued to a post office, banking company or an insurer, it shall
not be necessary to produce any pass book, deposit receipt, policy or
any other document for the purpose of any entry, endorsement or the
like being made before payment is made, notwithstanding any rule,
practice or requirement to the contrary;
(iii) in a case where the person to whom a notice under this section is sent,
fails to make the payment in pursuance thereof to the Central
Government, he shall be deemed to be an assessee in default in respect
of the amount specified in the notice and all the consequences of this
Chapter shall follow150;
(c) the Central Excise Officer may, on an authorisation by the Commissioner of
Central Excise, in accordance with the rules made in this behalf, distrain any
movable or immovable property belonging to or under the control of such
person, and detain the same until the amount payable is paid; and in case,
any part of the said amount payable or of the cost of the distress or keeping
of the property, remains unpaid for a period of thirty days next after any
such distress, may cause the said property to be sold and with the proceeds
of such sale, may satisfy the amount payable and the costs including cost of
sale remaining unpaid and shall render the surplus amount, if any, to such
person;
151Provided that where the person (hereinafter referred to as predecessor) from
whom the service tax or any other sums of any kind, as specified in this section,
is recoverable or due, transfers or otherwise disposes of his business or trade in
whole or in part, or effects any change in the ownership thereof, in consequence
of which he is succeeded in such business or trade by any other person, all
goods, in the custody or possession of the person so succeeding may also be
150 Recovery proceedings under Section 87(b )( iii) by directing the banks not to
allow withdrawal / transfer - Section 87 applies only after a proceeding under Section
73 is concluded by an order determining the amount due and payable by the petitioner
- Such a situation having not arisen as there is no conclusion of the proceeding, Section
87 is inapplicable - Impugned communications to the banks are quashed - GSP
Infratech Development Ltd 2013-TIOL-399-HC-KAR-ST
151 WEF Presidential assent
70
attached and sold by such officer empowered by the Central Board of Excise and
Customs, after obtaining the written approval of the Commissioner of Central
Excise, for the purposes of recovering such service tax or other sums
recoverable or due from such predecessor at the time of such transfer or
otherwise disposal or change.
(d) the Central Excise Officer may prepare a certificate signed by him specifying
the amount due from such person and send it to the Collector of the district
in which such person owns any property or resides or carries on his business
and the said Collector, on receipt of such certificate, shall proceed to recover
from such person the amount specified thereunder as if it were an arrear of
land revenue.
SECTION 88. Liability under Act to be first charge. — Notwithstanding
anything to the contrary contained in any Central Act or State Act, any amount
of tax152, penalty, interest, or any other sum payable by an assessee or any
other person under this Chapter, shall, save as otherwise provided in section
529A of the Companies Act, 1956 (1 of 1956) and the Recovery of Debts Due to
Banks and the Financial Institutions Act, 1993 (51 of 1993) and the
Securitisation and Reconstruction of Financial Assets and the Enforcement of
Security Interest Act, 2002 (54 of 2002), be the first charge on the property of
the assessee or the person as the case may be.
SECTION 89. Offences and penalties. —
(1) Whoever commits any of the following offences, namely :—
(a)153 knowingly evades the payment of service tax under this Chapter; or
(b) avails and utilises credit of taxes or duty without actual receipt of
taxable service or excisable goods either fully or partially in violation
of the rules made under the provisions of this Chapter; or
(c) maintains false books of account or fails to supply any information
which he is required to supply under this Chapter or the rules made
thereunder or (unless with a reasonable belief, the burden of proving
which shall be upon him, that the information supplied by him is true)
152 With effect from 28 May 2012
153 With effect from 28 May 2012
71
supplies false information; or
(d) collects any amount as service tax but fails to pay the amount so
collected to the credit of the Central Government beyond a period of
six months from the date on which such payment becomes due, shall
be punishable,—
154(i) in the case of an offence specified in clauses (a), (b) or (c) where the
amount exceeds two hundred lakh rupees155fifty lakh rupees, with
imprisonment for a term which may extend to three years:
Provided that in the absence of special and adequate reasons to the contrary to
be recorded in the judgment of the court, such imprisonment shall not be for a
term of less than six months;
(ii) in the case of the offence specified in clause (d), where the amount
exceeds two hundred lakh rupees156fifty lakh rupees, with
imprisonment for a term which may extend to seven years:
Provided that in the absence of special and adequate reasons to the contrary to
be recorded in the judgment of the court, such imprisonment shall not be for a
term of less than six months
(iii) in the case of any other offences, with imprisonment for a term, which may
extend to one year
(2) If any person is convicted of an offence punishable under—
(a) clause (i) or clause (iii), then, he shall be punished for the second and for
every subsequent offence with imprisonment for a term which may extend to
three years;
(b) clause (ii), then, he shall be punished for the second and for every
subsequent offence with imprisonment for a term which may extend to
seven years.
154 Substituted from 10 May 2013
155 Substituted by Finance Bill, 2016 w.e.f enactment of Finance Bill, 2016
156 Substituted by Finance Bill, 2016 w.e.f enactment of Finance Bill, 2016
72
(i) in the case of an offence where the amount exceeds fifty lakh rupees, with
imprisonment for a term which may extend to three years :
Provided that in the absence of special and adequate reasons to the contrary to
be recorded in the judgment of the court, such imprisonment shall not be for a
term of less than six months;
(ii) in any other case, with imprisonment for a term, which may extend to one
year.
(2) If any person convicted of an offence under this section is again convicted
of an offence under this section, then, he shall be punishable for the second and
for every subsequent offence with imprisonment for a term which may extend to
three years :
Provided that in the absence of special and adequate reasons to the
contrary to be recorded in the judgment of the court, such imprisonment shall
not be for a term less than six months.
(3) For the purposes of sub-sections (1) and (2), the following shall not be
considered as special and adequate reasons for awarding a sentence of
imprisonment for a term of less than six months, namely :—
(i) the fact that the accused has been convicted for the first time for an
offence under this Chapter;
(ii) the fact that in any proceeding under this Act, other than prosecution,
the accused has been ordered to pay a penalty or any other action has
been taken against him for the same act which constitutes the offence;
(iii) the fact that the accused was not the principal offender and was acting
merely as a secondary party in the commission of offence;
(iv) the age of the accused.
(4) A person shall not be prosecuted for any offence under this section except
with the previous sanction of the Chief Commissioner of Central Excise.
15790. (1) An offence under clause (ii) of sub-section (1) of section 89 shall be
cognizable.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973,
157 Applicable from 10 May 2013
73
all offences, except the offences specified in sub-section (1), shall be non-
cognizable and bailable158.
91. (1) If the Commissioner of Central Excise has reason to believe that any
person has committed an offence specified in clause (i)159 or clause (ii)
of sub-section (1) of section 89, he may, by general or special order,
authorise any officer of Central Excise, not below the rank of
Superintendent of Central Excise, to arrest such person.
(2) Where a person is arrested for any cognizable offence, every officer
authorised to arrest a person shall, inform such person of the grounds of
arrest and produce him before a magistrate within twenty-four hours.
(3) In the case of a non-cognizable and bailable offence, the Assistant
Commissioner, or the Deputy Commissioner, as the case may be,
shall, for the purpose of releasing an arrested person on bail or
otherwise, have the same powers and be subject to the same
provisions as an officer in charge of a police station has, and is subject to,
under section 436 of the Code of Criminal Procedure, 1973160161.
158 Deleted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
159 Deleted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
160 Section 436 of Code of Criminal Procedure, 1973: In what cases bail to be
taken.
(1) When any person other than a person accused of a non- bailable offence is arrested
or detained without warrant by an officer in charge of a police station, or appears or is
brought before a Court, and is prepared at any time while in the custody of such officer
or at any stage of the proceeding before such Court to give bail, such person shall be
released on bail: Provided that such officer or Court, if he or it thinks fit, may, instead
of taking bail from such person, discharge him on his executing a bond without sureties
for his appearance as hereinafter provided: Provided further that nothing in this section
shall be deemed to affect the provisions of sub- section (3) of section 116 or section
446A.
(2) Notwithstanding anything contained in sub- section (1), where a person has failed to
comply with the conditions of the bail- bond as regards the time and place of
attendance, the Court may refuse to release him on bail, when on a subsequent
occasion in the same case he appears before the Court or is brought in custody and any
such refusal shall be without prejudice to the powers of the Court to call upon any
person bound by such bond to pay the penalty thereof under section 446.
161 Deleted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
74
(4) All arrests under this section shall be carried out in accordance with the
provisions of the Code of Criminal Procedure, 1973 relating to arrests.
SECTIONS 90 to 92 * * * *
SECTION 93. Power to grant exemption from service tax. —
(1) If the Central Government is satisfied that it is necessary in the public
interest so to do, it may, by notification in the Official Gazette, exempt
generally or subject to such conditions as may be specified in the
notification, taxable service of any specified description from the whole or
any part of the service tax leviable thereon.
(2) If the Central Government is satisfied that it is necessary in the public
interest so to do, it may, by special order in each case, exempt any taxable
service of any specified description from the payment of whole or any part of
the service tax leviable thereon, under circumstances of exceptional nature
to be stated in such order.
SECTION 93A. Power to grant rebate. — Where any goods or services are
exported, the Central Government may grant rebate of service tax paid on
taxable services which are used as input services for the manufacturing or
processing or removal or export of such goods162 or for providing any taxable
services and such rebate shall be subject to such extent and manner as may be
prescribed or specified by notification in the Official Gazette163prescribed :
Provided that where any rebate has been allowed on any goods or services
under this section and the sale proceeds in respect of such goods or
consideration in respect of such services are not received by or on behalf of the
exporter in India within the time allowed by the Reserve Bank of India under
section 8 of the Foreign Exchange Management Act, 1999 (42 of 1999), such
rebate shall except under such circumstances or conditions as may be
prescribed, be deemed never to have been allowed and the Central Government
may recover or adjust the amount of such rebate in such manner as may be
prescribed.
162 With effect from 28 May 2012
163 Substituted by Finance Bill, 2016 w.e.f. enactment of Finance Bill, 2016
75
93B164 Rules made under section 94 to be applicable to services other
than taxable services. All rules made under section 94 and applicable to the
taxable services shall also be applicable to any other service in so far as they are
relevant to the determination of any tax liability, refund, credit of service tax or
duties paid on inputs and input services or for carrying out the provisions of
Chapter V of the Finance Act, 1994 (32 of 1994.).
SECTION 94. Power to make rules. —
(1) The Central Government may, by notification in the Official Gazette, make
rules for carrying out the provisions of this Chapter.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely :-
(a) collection and recovery of service tax under sections 66 and 68;
(aa) Determination of the amount and value of taxable service, the manner
thereof, and the circumstances and conditions under which an amount
shall not be a consideration, under section 67 165
(b) the time and manner and the form in which application for registration
shall be made under sub-sections (1) and (2) of section 69
(c) the form, manner and frequency of the returns to be furnished under
sub-sections (1) and (2) and the late fee for delayed furnishing of
return under sub-section (1) of section 70
(cc) the manner of provisional attachment of property under sub-section
(1) of section 73C;
(ccc) publication of name of any person and particulars relating to any
proceeding under sub-section (1) of section 73D;
(d) the form in which appeal under section 85 or under sub-section (6) of
section 86 may be filed and the manner in which they may be verified;
(e) the manner in which the memorandum of cross objections under sub-
section (4) of section 86 may be verified;
(eee) the credit of service tax paid on the services consumed or duties paid
or deemed to have been paid on goods used for providing a taxable
164 Inserted With effect from 28 May 2012
165 Substituted by Finance Act, 2015 w.e.f 14.05.2015
76
service;
(eeee) the manner of recovery of any amount due to the Central
Government under section 87;
(f) provisions for determining export of taxable services;
(g) grant of exemption to, or rebate of service tax paid on, taxable
services which are exported out of India;
(h) rebate of service tax paid or payable on the taxable services
consumed or duties paid or deemed to have been paid on goods used
for providing taxable services which are exported out of India;
(hh) rebate of service tax paid or payable on the taxable services used as
input services in the manufacturing or processing of goods exported
out of India under section 93A;
(hhh) the date for determination of rate of service tax and the place of
provision of taxable service under section 66C;
(i) provide for the amount to be paid for compounding and the manner of
compounding of offences166;
(j) provide for the settlement of cases, in accordance with sections 31, 32
and 32A to 32P (both inclusive), in Chapter V of the Central Excise Act,
1944 (1 of 1944.) as made applicable to service tax vide section 83167;
(k) imposition, on persons liable to pay service tax, for the proper levy and
collection of the tax, of duty of furnishing information, keeping records and
the manner in which such records shall be verified;
(l) make provisions for withdrawal of facilities or imposition of restrictions
(including restrictions on utilisation of CENVAT credit) on provider of
taxable service or exporter, for dealing with evasion of tax or misuse of
CENVAT credit;
(m) authorisation of the Central Board of Excise and Customs or Chief
Commissioners of Central Excise to issue instructions, for any incidental or
supplemental matters for the implementation of the provisions of this Act;
(n) any other matter which by this Chapter is to be or may be prescribed168
(3) The power to make rules conferred by this section shall on the first occasion
166 With effect from 28 May 2012
167 With effect from 28 May 2012
168 WEF Presidential assent
77
of the exercise thereof include the power to give retrospective effect to the
rules or any of them from a date not earlier than the date on which the
provisions of this Chapter come into force.
(4) Every rule made under this Chapter, Scheme framed under section 71 and
every notification issued under section 93 shall be laid, as soon as may be,
after it is made or issued, before each House of Parliament, while it is in
session for a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the expiry of
the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule or
notification or both Houses agree that the rule should not be made or the
notification should not be issued, the rule or notification shall thereafter have
effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice
to the validity of anything previously done under that rule or notification.
SECTION 95. Power to remove difficulties. —
(1) If any difficulty arises in respect of implementing, or assessing the value of,
any taxable service incorporated in this Chapter by the Finance Act, 2002, the
Central Government may, by order published in the Official Gazette, which is not
inconsistent with the provisions of this Chapter, remove the difficulty :
Provided that no such order shall be made after the expiry of a period of two
years from the date on which the provisions of the Finance Act, 2002
incorporating such taxable services in this Chapter come into force.
(1A) If any difficulty arises in respect of implementing, or assessing the value
of, any taxable service incorporated in this Chapter by the Finance Act, 2003,
the Central Government may, by order published in the Official Gazette, not
inconsistent with the provisions of this Chapter, remove the difficulty :
Provided that no such order shall be made after the expiry of a period of two
years from the date on which the provisions of the Finance Act, 2003
incorporating such taxable services in this Chapter come into force.
78
(1B) If any difficulty arises in respect of implementing, or assessing the value of,
any taxable service incorporated in this Chapter by the Finance (No. 2) Act,
2004, the Central Government may, by order published in the Official Gazette,
not inconsistent with the provisions of this Chapter, remove the difficulty :
Provided that no such order shall be made after the expiry of a period of two
years from the date on which the Finance (No. 2) Bill, 2004 receives the assent
of the President.
(1C) If any difficulty arises in respect of implementing, classifying or assessing
the value of any taxable service incorporated in this Chapter by the Finance Act,
2006 (21 of 2006), the Central Government may, by order published in the
Official Gazette, not inconsistent with the provisions of this Chapter, remove the
difficulty :
Provided that no such order shall be made after the expiry of a period of one
year from the date on which the Finance Bill, 2006 receives the assent of the
President.
(1D) If any difficulty arises in respect of implementing, classifying or assessing
the value of any taxable service incorporated in this Chapter by the Finance Act,
2007, the Central Government may, by order published in the Official Gazette,
not inconsistent with the provisions of this Chapter, remove the difficulty :
Provided that no such order shall be made after the expiry of a period of one
year from the date on which the Finance Bill, 2007 receives the assent of the
President.
(1E) If any difficulty arises in respect of implementing, classifying or assessing
the value of any taxable service incorporated in this Chapter by the Finance Act,
2008, the Central Government may, by order published in the Official Gazette,
not inconsistent with the provisions of this Chapter, remove the difficulty :
79
Provided that no such order shall be made after the expiry of a period of one
year from the date on which the Finance Bill, 2008 receives the assent of the
President.
(1F) If any difficulty arises in respect of implementing, classifying or assessing
the value of any taxable service incorporated in this Chapter by the Finance (No.
2) Act, 2009, the Central Government may, by order published in the Official
Gazette, not inconsistent with the provisions of this Chapter, remove the
difficulty :
Provided that no such order shall be made after the expiry of a period of one
year from the date on which the Finance (No. 2) Bill, 2009 receives the assent of
the President.
(1G) If any difficulty arises in respect of implementing, classifying or assessing
the value of any taxable service incorporated in this Chapter by the Finance Act,
2010, the Central Government may, by order published in the Official Gazette,
not inconsistent with the provisions of this Chapter, remove the difficulty :
Provided that no such order shall be made after the expiry of a period of one
year from the date on which the Finance Bill, 2010 receives the assent of the
President.
(1H) If any difficulty arises in respect of implementing, classifying or assessing
the value of any taxable service incorporated in this Chapter by the Finance Act,
2011, the Central Government may, by order published in the Official Gazette,
not inconsistent with the provisions of this Chapter, remove the difficulty :
Provided that no such order shall be made after the expiry of a period of one
year from the date on which the Finance Bill, 2011 receives the assent of the
President.;
(1-I)169. If any difficulty arises in giving effect to section 143 of the Finance Act,
2012, in so far as it relates to insertion of sections 65B, 66B, 66C, 66D, 66E and
169 With effect from 28 May 2012
80
section 66F in Chapter V of the Finance Act, 1994 (32 of 1994.), the Central
Government may, by order published in the Official Gazette, which is not
inconsistent with the provisions of this Chapter, make such provisions, as may
be necessary or expedient for the purpose of removing the difficulty from such
date, which shall include the power to give retrospective effect from a date not
earlier than the date of coming into force of the Finance Act, 2012:
Provided that no such order shall be made after the expiry of a period of two
years from the date of coming into force of these provisions.
170(1J) If any difficulty arises in giving effect to section 93 of the Finance Act,
2013, in so far as it relates to amendments made by the Finance Act, 2013 in
Chapter V of the Finance Act, 1994, the Central Government may, by an order
published in the Official Gazette, not inconsistent with the provisions of this
Chapter, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of one
year from the date on which the Finance Bill, 2013 receives the assent of the
President
(1K) If any difficulty arises in giving effect to section 106 of the Finance (No. 2)
Act, 2014, in so far as it relates to amendments made by the said Act, in this
Chapter, the Central Government may, by an order, published in the Official
Gazette, not inconsistent with the provisions of this Chapter, remove the
difficulty:
Provided that no such order shall be made after the expiry of a period of one
year from the date on which the Finance (No. 2) Bill, 2014 receives the assent of
the President171.
(2) Every order made under this section shall be laid, as soon as may be after it
is made, before each House of the Parliament.
SECTION 96. Consequential amendment. — In the Economic Offences
170 Applicable from 10 May 2013
171 WEF Presidential assent
81
(Inapplicability of Limitation) Act, 1974 (12 of 1974), in the Schedule, after
entry 7 relating to the Central Excise Act, 1944 (1 of 1944), the following entry
shall be inserted, namely :-
“7A. Chapter V of the Finance Act, 1994.”
CHAPTER VA
ADVANCE RULINGS
SECTION 96A. Definitions. — In this Chapter, unless the context otherwise
requires,-
(a) “advance ruling” means the determination, by the Authority, of a question of
law or fact specified in the application regarding the liability to pay service
tax in relation to a service proposed to be provided, by the applicant;
(b) “applicant” means —
(i)
(a) a non-resident setting up a joint venture in India in collaboration with
a non-resident or a resident; or
(b) a resident setting up a joint venture in India in collaboration with a
non-resident; or
(c) a wholly owned subsidiary Indian company, of which the holding
company is a foreign company, who or which, as the case may be,
proposes to undertake any business activity in India;
(ii) a joint venture in India; or
(iii) a resident falling within any such class or category of persons, as the
Central Government may, by notification in the Official Gazette, specify in
this behalf, and which or who, as the case may be, makes application for
advance ruling under sub-section (1) of section 96C172;
Explanation. — For the purposes of this clause, “joint venture in India” means
a contractual arrangement whereby two or more persons undertake an
economic activity which is subject to joint control and one or more of the
participants or partners or equity holders is a non-resident having
substantial interest in such arrangement;
172 Vide Not. No.4/2013-ST Central Government has specified “resident public limited
Company” as class of persons for this clause
82
(c) “application” means an application made to the Authority under sub-section
(1) of section 96C;
(d) “Authority” means the Authority for Advance Rulings, constituted under
sub-section (1), or authorised by the Central Government under sub-section
(2A), of section 28F of the Customs Act, 1962 (52 of 1962).
(e) “non-resident”, “Indian company” and “foreign company” have the meanings
respectively assigned to them in clauses (30), (26) and (23A) of section 2 of
the Income-tax Act, 1961 (43 of 1961);
(f) words and expressions used but not defined in this Chapter and defined in
the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder shall
apply, so far as may be, in relation to service tax as they apply in relation to
duty of excise.
SECTION 96B. Vacancies, etc., not to invalidate proceedings. — No
proceeding before, or pronouncement of advance ruling by, the Authority under
this Chapter shall be questioned or shall be invalid on the ground merely of the
existence of any vacancy or defect in the constitution of the Authority.
SECTION 96C. Application for advance ruling. —
(1) An applicant desirous of obtaining an advance ruling under this Chapter may
make an application in such form and in such manner as may be prescribed,
stating the question on which the advance ruling is sought.
(2) The question on which the advance ruling is sought shall be in respect of, -
(a) classification of any service as a taxable service under Chapter V;
(b) the valuation of taxable services for charging service tax;
(c) the principles to be adopted for the purposes of determination of
value of the taxable service under the provisions of Chapter V;
(d) applicability of notifications issued under Chapter V;
(e) admissibility of credit of duty or tax in terms of the rules made in this
regard173;
(f) determination of the liability to pay service tax on a taxable service
under the provisions of Chapter V.
(3) The application shall be made in quadruplicate and be accompanied by a
173 With effect from 28 May 2012
83
fee of two thousand five hundred rupees.
(4) An applicant may withdraw an application within thirty days from the
date of the application.
SECTION 96D. Procedure on receipt of application. — (1) On receipt of an
application, the Authority shall cause a copy thereof to be forwarded to the
Commissioner of Central Excise and, if necessary, call upon him to furnish the
relevant records :
Provided that where any records have been called for by the Authority in any
case, such records shall, as soon as possible, be returned to the Commissioner
of Central Excise.
(2) The Authority may, after examining the application and the records called
for, by order, either allow or reject the application :
Provided that the Authority shall not allow the application where the question
raised in the application is, -
(a) already pending in the applicant’s case before any Central Excise Officer, the
Appellate Tribunal or any Court;
(b) the same as in a matter already decided by the Appellate Tribunal or any
Court :
Provided further that no application shall be rejected under this sub-section
unless an opportunity has been given to the applicant of being heard :
Provided also that where the application is rejected, reasons for such rejection
shall be given in the order.
(3) A copy of every order made under sub-section (2) shall be sent to the
applicant and to the Commissioner of Central Excise.
(4) Where an application is allowed under sub-section (2), the Authority shall,
after examining such further material as may be placed before it by the
applicant or obtained by the Authority, pronounce its advance ruling on the
question specified in the application.
84
(5) On a request received from the applicant, the Authority shall, before
pronouncing its advance ruling, provide an opportunity to the applicant of being
heard, either in person or through a duly authorised representative.
Explanation. - For the purposes of this sub-section, “authorised representative”
has the meaning assigned to it in sub-section (2) of section 35Q of the Central
Excise Act, 1944 (1 of 1944).
(6) The Authority shall pronounce its advance ruling in writing within ninety
days of the receipt of application.
(7) A copy of the advance ruling pronounced by the Authority, duly signed by
the Members and certified in the prescribed manner shall be sent to the
applicant and to the Commissioner of Central Excise, as soon as may be, after
such pronouncement.
SECTION 96E. Applicability of advance ruling. —
(1) The advance ruling pronounced by the Authority under section 96D shall be
binding only -
(a) on the applicant who had sought it;
(b) in respect of any matter referred to in sub-section (2) of section 96C;
(c) on the Commissioner of Central Excise, and the Central Excise
authorities subordinate to him, in respect of the applicant.
(2) The advance ruling referred to in sub-section (1) shall be binding as
aforesaid unless there is a change in law or facts on the basis of which the
advance ruling has been pronounced.
SECTION 96F. Advance ruling to be void in certain circumstances. —
(1) Where the Authority finds, on a representation made to it by the
Commissioner of Central Excise or otherwise, that an advance ruling pronounced
by it under sub-section (4) of section 96D has been obtained by the applicant by
fraud or misrepresentation of facts, it may, by order, declare such ruling to be
void ab initio and thereupon all the provisions of this Chapter shall apply (after
excluding the period beginning with the date of such advance ruling and ending
85
with the date of order under this sub-section) to the applicant as if such advance
ruling had never been made.
(2) A copy of the order made under sub-section (1) shall be sent to the
applicant and the Commissioner of Central Excise.
SECTION 96G. Powers of Authority. — (1) The Authority shall, for the
purpose of exercising its powers regarding discovery and inspection, enforcing
the attendance of any person and examining him on oath, issuing commissions
and compelling production of books of account and other records, have all the
powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908).
(2) The Authority shall be deemed to be a civil court for the purposes of
section 195, but not for the purposes of Chapter XXVI of the Code of Criminal
Procedure, 1973 (2 of 1974), and every proceeding before the Authority shall be
deemed to be a judicial proceeding within the meaning of sections 193 and 228,
and for the purpose of section 196 of the Indian Penal Code (45 of 1860).
SECTION 96H. Procedure of Authority. — The Authority shall, subject to
the provisions of this Chapter, have power to regulate its own procedure in all
matters arising out of the exercise of its powers under this Act.
SECTION 96-I. Power of Central Government to make rules. — (1) The
Central Government may, by notification in the Official Gazette, make rules for
carrying out the provisions of this Chapter.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters, namely :-
(a) the form and manner for making application under sub-section (1)
of section 96C;
(b) the manner of certifying a copy of advance ruling pronounced by
the Authority under sub-section (7) of section 96D;
(c) any other matter which, by this Chapter, is to be or may be
prescribed.
(3) Every rule made under this Chapter shall be laid, as soon as may be,
after it is made, before each House of Parliament, while it is in session for a total
period of thirty days which may be comprised in one session or in two or more
86
successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or both Houses agree that the rule should
not be made, the rule shall thereafter have effect only in such modified form or
be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done
under that rule..
SECTION 96J. Special exemption from service tax in certain cases. —
(1) Notwithstanding anything contained in section 66, no service tax shall be
levied or collected in respect of membership fee collected by a club or
association formed for representing industry or commerce, during the period on
and from the 16th day of June, 2005 to the 31st day of March, 2008 (both days
inclusive).
(2) Refund shall be made of all such service tax which has been collected
but which would not have been so collected if sub-section (1) had been in force
at all material times.
(3) Notwithstanding anything contained in this Chapter, an application for
the claim of refund of service tax shall be made within six months from the date
on which the Finance Bill, 2011 receives the assent of the President..
97174 Special provision for exemption in certain cases relating to
management, etc., of roads. (1) Notwithstanding anything contained in
section 66, no service tax shall be levied or
collected in respect of management, maintenance or repair of roads, during the
period on and
from the 16th day of June, 2005 to the 26th day of July, 2009 (both days
inclusive).
(2) Refund shall be made of all such service tax which has been collected but
which would not
have been so collected had sub-section (1) been in force at all material times.
(3) Notwithstanding anything contained in this Chapter, an application for the
claim of refund of service tax shall be made within a period of six months from
174 With effect from 28 May 2012
87
the date on which the Finance Bill, 2012 receives the assent of the President.
98175 Special provision for exemption in certain cases relating to
management, etc., of noncommercial Government buildings.
(1) Notwithstanding anything contained in section 66, no service tax shall be
levied or collected in respect of management, maintenance or repair of non-
commercial Government buildings, during the period on and from the 16th
day of June, 2005 till the date on which section 66B comes into force.
(2) Refund shall be made of all such service tax which has been collected but
which would not have been so collected had sub-section (1) been in force at
all material times.
(3) Notwithstanding anything contained in this Chapter, an application for the
claim of refund of service tax shall be made within a period of six months
from the date on which the Finance Bill, 2012 receives the assent of the
President.
17699(1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of
July, 2012, no service tax shall be levied or collected in respect of taxable services
provided by the Indian Railways during the period prior to 1st day of October, 2012,
(2) No refund shall be made of service tax paid in respect of taxable services
provided by the Indian Railways during the said period prior to 1st day of October,
2012,
100. Notwithstanding anything contained in section 66 as it stood
prior to the 1st day of July, 2012, no service tax shall be levied or
collected in respect of taxable services provided by the Employees’
State Insurance Corporation set up under the Employees’ State
Insurance Act, 1948, during the period prior to the 1st day of July,
2012177.
178101. (1) Notwithstanding anything contained in section 66B, no
service tax shall be levied or collected during the period
commencing from the 1st day of July, 2012 and ending with the
29th day of January, 2014 (both days inclusive) in respect of
175 With effect from 28 May 2012
176 Applicable from 10 May 2013
177 WEF Presidential assent
178 Inserted by Finance Bill, 2016
88
taxable services provided to an authority or a board or any other
body–
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by the Government, with ninety per cent. or more
participation by way of equity or control, to carry out any function
entrusted to a municipality under article 243W of the Constitution,
by way of construction, erection, commissioning, installation,
completion, fitting out, repair, maintenance, renovation or alteration
of canal, dam or other irrigation works.
(2) Refund shall be made of all such service tax which has been
collected but which would not have been so collected had sub-
section (1) been in force at all material times.
(3) Notwithstanding anything contained in this Chapter, an
application for the claim of refund of service tax shall be made
within a period of six months from the date on which the Finance
Bill, 2016 receives the assent of the President.
102. (1) Notwithstanding anything contained in section 66B, no
service tax shall be levied or collected during the period
commencing from the 1st day of April, 2015 and ending with the
29th day of February, 2016 (both days inclusive), in respect of
taxable services provided to the Government, a local authority or a
Governmental authority, by way of construction, erection,
commissioning, installation, completion, fitting out, repair,
maintenance, renovation or alteration of–
(a) a civil structure or any other original works meant
predominantly for use other than for commerce, industry or any
other business or profession;
(b) a structure meant predominantly for use as–
(i) an educational establishment;
(ii) a clinical establishment; or
(iii) an art or cultural establishment;
(c) a residential complex predominantly meant for self-use or for
the use of their employees or other persons specified in Explanation
1 to clause (44) of section 65B of the said Act, under a contract
89
entered into before the 1st day of March, 2015 and on which
appropriate stamp duty, where applicable, had been paid before
that date.
(2) Refund shall be made of all such service tax which has been
collected but which would not have been so collected had sub-
section (1) been in force at all the material times.
(3) Notwithstanding anything contained in this Chapter, an
application for the claim of refund of service tax shall be made
within a period of six months from the date on which the Finance
Bill, 2016 receives the assent of the President.
103. (1) Notwithstanding anything contained in section 66B, no
service tax shall be levied or collected during the period
commencing from the 1st day of April, 2015 and ending with the
29th day of February, 2016 (both days inclusive), in respect of
services provided by way of construction, erection, commissioning
or installation of original works pertaining to an airport or port,
under a contract which had been entered into before the 1st day of
March, 2015 and on which appropriate stamp duty, where
applicable, had been paid before that date, subject to the condition
that Ministry of Civil Aviation or, as the case may be, the Ministry of
Shipping in the Government of India certifies that the contract had
been entered into before the 1st day of March, 2015.
(2) Refund shall be made of all such service tax which has been
collected but which would not have been so collected had sub-
section (1) been in force at all material times.
(3) Notwithstanding anything contained in this Chapter, an
application for the claim of refund of service tax shall be made
within a period of six months from the date on which the Finance
Bill, 2016 receives the assent of the President.
90
4. APPLICABLE CENTRAL EXCISE PROVISIONS
SECTION 83 of the Finance Act, 1994. Application of certain provisions
of Act 1 of 1944. — The provisions of the following sections of the Central
Excise Act, 1944 (10 of 1944), as in force from time to time, shall apply, so far
as may be, in relation to service tax as they apply in relation to a duty of excise
: sub-section (2A) of section 5A179, Subsection (2) of section]180 9A, 9AA, 9B, 9C,
9D, 9E, 11B, 11BB, 11C, 12, 12A, 12B, 12C, 12D, 12E, 14, 15, [15A, 15B]181,
31, 32, 32A to 32P (both inclusive), 33A, 34A, 35EE, 35F182, 35FF, to 35O (both
inclusive), 35Q, 35R, 36, 36A, 36B, 37A, 37B, 37C, 37D 38A and 40
CENTRAL EXCISE ACT, 1944 – Provisions of Central Excise Act are
highlighted in green colour for ease of reference183
SECTION 9A. Certain offences to be non-cognizable. — (1)
Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5
of 1898), offences under section 9 shall be deemed to be non-cognizable within
the meaning of that Code184
185(1) Notwithstanding anything contained in the Code of Criminal Procedure,
1973, offences under section 9, except the offences referred to in sub-section
(1A), shall be non-cognizable within the meaning of that Code.
(1A) The offences relating to excisable goods where the duty leviable thereon
under this Act exceeds fifty lakh rupees and punishable under clause (b) or
clause (bbbb) of sub-section (1) of section 9, shall be cognizable and non-
bailable.
(2) Any offence under this Chapter may, either before or after the institution of
prosecution, be compounded by the Chief Commissioner of Central Excise on
payment, by the person accused of the offence to the Central Government, of
such compounding amount and in such manner of compounding as may be
prescribed :
Provided that nothing contained in this sub-section shall apply to —
179 WEF Presidential assent
180 Inserted from 10 May 2013
181 WEF Presidential assent
182 With effect from 28 May 2012
183 Reader may also refer Section 86 (7) of Finance Act, 1994 vide which provisions
pertaining to stay etc as applicable to Central Excise etc are made applicable to
Service Tax
184 Applicable from 10 May 2013
185 Applicable from 10 May 2013
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(a) a person who has been allowed to compound once in respect of any of the
offences under the provisions of clause (a), (b), (bb), (bbb), (bbbb) or (c) of
sub-section (1) of section 9;
(b) a person who has been accused of committing an offence under this Act
which is also an offence under the Narcotic Drugs and Psychotropic Substances
Act, 1985 (61 of 1985);
(c) a person who has been allowed to compound once in respect of any
offence under this Chapter for goods of value exceeding rupees one crore;
(d) a person who has been convicted by the court under this Act on or after
the 30th day of December, 2005.
SECTION 9AA. Offences by companies. — (1) Where an offence under this
Act has been committed by a company, every person who, at the time the
offence was committed was in charge of, and was responsible to, the company
for the conduct of the business of the company, as well as the company, shall be
deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly :
Provided that nothing contained in this sub-section shall render any such
person liable to any punishment provided in this Act, if he proves that the
offence was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence
under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is attributable
to any neglect on the part of, any director, manager, secretary or other officer of
the company, such director, manager, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
Explanation. — For the purposes of this section, -
(a) “company” means any body corporate and includes a firm or other
association of individuals; and
(b) “director” in relation to a firm means a partner in the firm.
SECTION 9B. Power of Court to publish name, place of business, etc., of
persons convicted under the Act. — (1) Where any person is convicted under
this Act for contravention of any of the provisions thereof, it shall be competent
for the Court convicting the person to cause the name and place of business or
residence of such person, nature of the contravention, the fact that the person
has been so convicted and such other particulars as the Court may consider to
be appropriate in the circumstances of the case, to be published at the expense
of such person, in such newspapers or in such manner as the Court may direct.
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(2) No publication under sub-section (1) shall be made until the period for
preferring an appeal against the orders of the Court has expired without any
appeal having been preferred, or such an appeal, having been preferred, has
been disposed of.
(3) The expenses of any publication under sub-section (1) shall be recoverable
from the convicted person as if it were a fine imposed by the Court.
SECTION 9C. Presumption of culpable mental state. — (1) In any
prosecution for an offence under this Act which requires a culpable mental state
on the part of the accused, the Court shall presume the existence of such mental
state but it shall be a defence for the accused to prove the fact that he had no
such mental state with respect to the act charged as an offence in that
prosecution.
Explanation. — In this section, “culpable mental state” includes intention,
motive, knowledge of a fact, and belief in, or reason to believe, a fact.
(2) For the purposes of this section, a fact is said to be proved only when the
Court believes it to exist beyond reasonable doubt and not merely when its
existence is established by a preponderance of probability.
SECTION 9D. Relevancy of statements under certain circumstances. —
(1) A statement made and signed by a person before any Central Excise Officer
of a gazetted rank during the course of any inquiry or proceeding under this Act
shall be relevant, for the purpose of proving, in any prosecution for an offence
under this Act, the truth of the facts which it contains, -
(a) when the person who made the statement is dead or cannot be found, or
is incapable of giving evidence, or is kept out of the way by the adverse party, or
whose presence cannot be obtained without an amount of delay or expense
which, under the circumstances of the case, the Court considers unreasonable;
or
(b) when the person who made the statement is examined as a witness in the
case before the Court and the Court is of opinion that, having regard to the
circumstances of the case, the statement should be admitted in evidence in the
interests of justice.
(2) The provisions of sub-section (1) shall, so far as may be, apply in relation
to any proceeding under this Act, other than a proceeding before a Court, as
they apply in relation to a proceeding before a Court.
SECTION 9E. Application of section 562 of the Code of Criminal
Procedure, 1898, and of the Probation of Offenders Act, 1958. — (1)
Nothing contained in section 562 of the Code of Criminal Procedure, 1898 (5 of
1898), or in the Probation of Offenders Act, 1958 (20 of 1958), shall apply to a
person convicted of an offence under this Act unless that person is under
eighteen years of age.
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(2) The provisions of sub-section (1) shall have effect notwithstanding anything
contained in sub-section (3) of section 9.
SECTION 11B. Claim for refund of duty and interest, if any, paid on
such duty. — (1) Any person claiming refund of any duty of excise and interest,
if any, paid on such duty may make an application for refund of such duty and
interest, if any, paid on such duty to the Assistant Commissioner of Central
Excise or Deputy Commissioner of Central Excise before the expiry of one year
from the relevant date in such form and manner as may be prescribed and the
application shall be accompanied by such documentary or other evidence
(including the documents referred to in section 12A) as the applicant may
furnish to establish that the amount of duty of excise and interest, if any, paid
on such duty in relation to which such refund is claimed was collected from, or
paid by, him and the incidence of such duty and interest, if any, paid on such
duty had not been passed on by him to any other person :
Provided that where an application for refund has been made before the
commencement of the Central Excises and Customs Laws (Amendment) Act,
1991, such application shall be deemed to have been made under this sub-
section as amended by the said Act and the same shall be dealt with in
accordance with the provisions of sub-section (2) substituted by that Act :
Provided further that the limitation of one year shall not apply where any duty
and interest, if any, paid on such duty has been paid under protest.
* * * *
(2) If, on receipt of any such application, the Assistant Commissioner of Central
Excise or Deputy Commissioner of Central Excise is satisfied that the whole or
any part of the duty of excise and interest, if any, paid on such duty paid by the
applicant is refundable, he may make an order accordingly and the amount so
determined shall be credited to the Fund :
Provided that the amount of duty of excise and interest, if any, paid on such
duty as determined by the Assistant Commissioner of Central Excise or Deputy
Commissioner of Central Excise under the foregoing provisions of this sub-
section shall, instead of being credited to the Fund, be paid to the applicant,
if such amount is relatable to -
(a) rebate of duty of excise on excisable goods exported out of India or on
excisable materials used in the manufacture of goods which are exported out of
India;
(b) unspent advance deposits lying in balance in the applicant’s account current
maintained with the Commissioner of Central Excise;
(c) refund of credit of duty paid on excisable goods used as inputs in
accordance with the rules made, or any notification issued, under this Act;
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(d) the duty of excise and interest, if any, paid on such duty paid by the
manufacturer, if he had not passed on the incidence of such duty and interest, if
any, paid on such duty to any other person;
(e) the duty of excise and interest, if any, paid on such duty borne by the
buyer, if he had not passed on the incidence of such duty and interest, if any,
paid on such duty to any other person;
(f) the duty of excise and interest, if any, paid on such duty borne by any
other such class of applicants as the Central Government may, by notification in
the Official Gazette, specify :
Provided further that no notification under clause (f) of the first proviso shall be
issued unless in the opinion of the Central Government the incidence of duty and
interest, if any, paid on such duty has not been passed on by the persons
concerned to any other person.
(3) Notwithstanding anything to the contrary contained in any judgment,
decree, order or direction of the Appellate Tribunal or any Court or in any other
provision of this Act or the rules made thereunder or any other law for the time
being in force, no refund shall be made except as provided in sub-section (2).
(4) Every notification under clause (f) of the first proviso to sub-section (2)
shall be laid before each House of Parliament, if it is sitting, as soon as may be
after the issue of the notification, and, if it is not sitting, within seven days of its
re-assembly, and the Central Government shall seek the approval of Parliament
to the notification by a resolution moved within a period of fifteen days
beginning with the day on which the notification is so laid before the House of
the People and if Parliament makes any modification in the notification or directs
that the notification should cease to have effect, the notification shall thereafter
have effect only in such modified form or be of no effect, as the case may be,
but without prejudice to the validity of anything previously done thereunder.
(5) For the removal of doubts, it is hereby declared that any notification issued
under clause (f) of the first proviso to sub-section (2), including any such
notification approved or modified under sub-section (4), may be rescinded by
the Central Government at any time by notification in the Official Gazette.
Explanation. — For the purposes of this section, -
(A) “refund” includes rebate of duty of excise on excisable goods exported out
of India or on excisable materials used in the manufacture of goods which are
exported out of India;
(B) “relevant date” means, -
(a) in the case of goods exported out of India where a refund of excise duty
paid is available in respect of the goods themselves or, as the case may be, the
excisable materials used in the manufacture of such goods, -
95
(i) if the goods are exported by sea or air, the date on which the ship
or the aircraft in which such goods are loaded, leaves India, or
(ii) if the goods are exported by land, the date on which such goods pass the
frontier, or
(iii) if the goods are exported by post, the date of despatch of goods by the
Post Office concerned to a place outside India;
(b) in the case of goods returned for being remade, refined, reconditioned, or
subjected to any other similar process, in any factory, the date of entry into the
factory for the purposes aforesaid;
(c) in the case of goods to which banderols are required to be affixed if
removed for home consumption but not so required when exported outside
India, if returned to a factory after having been removed from such
factory for export out of India, the date of entry into the factory;
(d) in a case where a manufacturer is required to pay a sum, for a certain
period, on the basis of the rate fixed by the Central Government by notification
in the Official Gazette in full discharge of his liability for the duty leviable on his
production of certain goods, if after the manufacturer has made the payment on
the basis of such rate for any period but before the expiry of that period such
rate is reduced, the date of such reduction;
(e) in the case of a person, other than the manufacturer, the date of purchase
of the goods by such person;
(ea) in the case of goods which are exempt from payment of duty by a special
order issued under sub-section (2) of section 5A, the date of issue of such order;
(eb) in case where duty of excise is paid provisionally under this Act or the
rules made thereunder, the date of adjustment of duty after the final
assessment thereof;
(ec) in case where the duty becomes refundable as a consequence of judgment,
decree, order or direction of appellate authority, Appellate Tribunal or any court,
the date of such judgment, decree, order or direction;
(f) in any other case, the date of payment of duty.
SECTION 11BB. Interest on delayed refunds. — If any duty ordered to be
refunded under sub-section (2) of section 11B to any applicant is not refunded
within three months from the date of receipt of application under sub-section (1)
of that section, there shall be paid to that applicant interest at such rate, not
below five per cent and not exceeding thirty per cent per annum as is for
the time being fixed by the Central Government, by Notification in the Official
Gazette, on such duty from the date immediately after the expiry of three
96
months from the date of receipt of such application till the date of refund of such
duty :
Provided that where any duty ordered to be refunded under sub-section (2) of
section 11B in respect of an application under sub-section (1) of that section
made before the date on which the Finance Bill, 1995 receives the assent of the
President, is not refunded within three months from such date, there shall be
paid to the applicant interest under this section from the date immediately after
three months from such date, till the date of refund of such duty.
Explanation. - Where any order of refund is made by the Commissioner
(Appeals), Appellate Tribunal , National Tax Tribunal or any court against an
order of the Assistant Commissioner of Central Excise or Deputy Commissioner
of Central Excise, under sub-section (2) of section 11B, the order passed by the
Commissioner (Appeals), Appellate Tribunal National Tax Tribunal or, as the case
may be, by the court shall be deemed to be an order passed under the said sub-
section (2) for the purposes of this section.
SECTION 11C. Power not to recover duty of excise not levied or short-
levied as a result of general practice. — (1) Notwithstanding anything
contained in this Act, if the Central Government is satisfied -
(a) that a practice was, or is, generally prevalent regarding levy of duty of
excise (including non-levy thereof) on any excisable goods; and
(b) that such goods were, or are, liable -
(i) to duty of excise, in cases where according to the said practice the duty was
not, or is not being, levied, or
(ii) to a higher amount of duty of excise than what was, or is being, levied,
according to the said practice,
then, the Central Government may, by notification in the Official Gazette, direct
that the whole of the duty of excise payable on such goods, or as the case may
be, the duty of excise in excess of that payable on such goods, but for the said
practice, shall not be required to be paid in respect of the goods on which the
duty of excise was not, or is not being, levied, or was, or is being, short-levied,
in accordance with the said practice.
(2) Where any notification under sub-section (1) in respect of any goods has
been issued, the whole of the duty of excise paid on such goods or, as the case
may be, the duty of excise paid in excess of that payable on such goods, which
would not have been paid if the said notification had been in force, shall be dealt
with in accordance with the provisions of sub-section (2) of section 11B :
Provided that the person claiming the refund of such duty or, as the case may
be, excess duty, makes an application in this behalf to the Assistant
Commissioner of Central Excise or Deputy Commissioner of Central Excise, in
the form referred to in sub-section (1) of section 11B, before the expiry of six
months from the date of issue of the said notification.
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SECTION 12. Application of the provisions of Act No. 52 of 1962 to Central Excise
Duties. — The Central Government may, by notification in the Official Gazette, declare that
any of the provisions of the Customs Act, 1962 (52 of 1962), relating to the levy of and
exemption from customs duties, drawback of duty, warehousing, offences and penalties,
confiscation, and procedure relating to offences and appeals shall, with such modifications
and alterations as it may consider necessary or desirable to adapt them to the circumstances,
be applicable in regard to like matters in respect of the duties imposed by section 3 and
section 3A.
SECTION 12A. Price of goods to indicate the amount of duty paid
thereon. — Notwithstanding anything contained in this Act or any other law for
the time being in force, every person who is liable to pay duty of excise on any
goods shall, at the time of clearance of the goods, prominently indicate in all the
documents relating to assessment, sales invoice, and other like documents, the
amount of such duty which will form part of the price at which such goods are to
be sold.
SECTION 12B. Presumption that the incidence of duty has been passed on to
the buyer. — Every person who has paid the duty of excise on any goods under
this Act shall, unless the contrary is proved by him, be deemed to have passed
on the full incidence of such duty to the buyer of such goods.
SECTION 12C. Consumer Welfare Fund. — (1) There shall be established by
the Central Government a fund, to be called the Consumer Welfare Fund.
(2) There shall be credited to the Fund, in such manner as may be prescribed, -
(a) the amount of duty of excise referred to in sub-section (2) of section
11B or sub-section (2) of section 11C or sub-section (2) of section 11D;
(b) the amount of duty of customs referred to in sub-section (2) of section 27
or sub-section (2) of section 28A, or sub-section (2) of section 28B of the
Customs Act, 1962 (52 of 1962);
(c) any income from investment of the amount credited to the Fund and any
other monies received by the Central Government for the purposes of this Fund.
(d) the surplus amount referred to in sub-section (6) of section 73A of the
Finance Act, 1994 (32 of 1994).
SECTION 12D. Utilisation of the Fund. — (1) Any money credited to the
Fund shall be utilised by the Central Government for the welfare of the
consumers in accordance with such rules as that Government may make in this
behalf.
(2) The Central Government shall maintain or, if it thinks fit, specify the
authority which shall maintain, proper and separate account and other relevant
records in relation to the Fund in such form as may be prescribed in consultation
with the Comptroller and Auditor-General of India.
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SECTION 12E. Powers of Central Excise Officers. — (1) A Central Excise
Officer may exercise the powers and discharge the duties conferred or imposed
under this Act on any other Central Excise Officer who is subordinate to him.
(2) Notwithstanding anything contained in sub-section (1), the Commissioner of
Central Excise (Appeals) shall not exercise the powers and discharge the duties
conferred or imposed on a Central Excise Officer other than those specified in
section 14 or Chapter VIA.
SECTION 14. Power to summon persons to give evidence and produce
documents in inquiries under this Act. — (1) Any Central Excise Officer duly
empowered by the Central Government in this behalf, shall have power to
summon any person whose attendance he considers necessary either to give
evidence or to produce a document or any other thing in any inquiry which such
officer is making for any of the purposes of this Act. A summons to produce
documents or other things may be for the production of certain specified
documents or things or for the production of all documents or things of a certain
description in the possession or under the control of the person summoned.
(2) All persons so summoned shall be bound to attend, either in person or by
an authorised agent, as such officer may direct; and all persons so summoned
shall be bound to state the truth upon any subject respecting which they are
examined or make statements and to produce such documents and other things
as may be required :
Provided that the exemptions under Sections 132 and 133 of the Code of Civil
Procedure, 1908 (5 of 1908) shall be applicable to requisitions for attendance
under this section.
(3) Every such inquiry as aforesaid shall be deemed to be a “judicial
proceeding” within the meaning of Section 193 and Section 228 of the Indian
Penal Code, 1860 (45 of 1860).
SECTION 15. Officers required to assist Central Excise Officers. — All
officers of Police and Customs and all officers of Government engaged in the
collection of land revenue, and all village officers are hereby empowered and
required to assist the Central Excise Officers in the execution of this Act.
18615A. (1) Any person, being—
(a) an assessee; or
(b) a local authority or other public body or association; or
(c) any authority of the State Government responsible for the collection of value
added tax or sales tax; or
186 WEF Presidential assent
99
(d) an income tax authority appointed under the provisions of the Income-tax
Act, 1961; or
(e) a banking company within the meaning of clause (a) of section 45A of the
Reserve Bank of India Act, 1934; or
(f) a State Electricity Board; or an electricity distribution or transmission licensee
under the Electricity Act, 2003, or any other entity entrusted, as the case
may be, with such functions by the Central Government or the State
Government; or
(g) the Registrar or Sub-Registrar appointed under section 6 of the Registration
Act, 1908; or
(h) a Registrar within the meaning of the Companies Act, 2013; or
(i) the registering authority empowered to register motor vehicles under Chapter
IV of the Motor Vehicles Act, 1988; or
(j) the Collector referred to in clause (c) of section 3 of the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013; or
(k) the recognised stock exchange referred to in clause (f) of section 2 of the
Securities Contracts (Regulation) Act, 1956; or
(l) a depository referred to in clause (e) of sub-section (1) of section 2 of the
Depositories Act, 1996; or
(m) an officer of the Reserve Bank of India, constituted under section 3 of the
Reserve Bank of India Act, 1934,
who is responsible for maintaining record of registration or statement of
accounts or any periodic return or document containing details of payment of
tax and other details or transaction of goods or services or transactions
related to a bank account or consumption of electricity or transaction of
purchase, sale or exchange of goods or property or right or interest in a
property, under any law for the time being in force, shall furnish an
information return of the same in respect of such periods, within such
time, form (including electronic form) and manner, to such authority or
agency as may be prescribed.
(2) Where the prescribed authority considers that the information submitted in
the information return is defective, he may intimate the defect to the person
who has furnished such information return and give him an opportunity of
rectifying the defect within a period of thirty days from the date of such
intimation or within such further period which, on an application made in this
behalf, the prescribed authority may allow and if the defect is not rectified
within the said period of thirty days or, as the case may be, the further
period so allowed, then, notwithstanding anything contained in any other
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provision of this Act, such information return shall be treated as not
submitted and the provisions of this Act shall apply.
(3) Where a person who is required to furnish information return has not
furnished the same within the time specified in sub-section (1) or sub-
section (2), the prescribed authority may serve upon him a notice requiring
furnishing of such information return within a period not exceeding ninety
days from the date of service of the notice and such person shall furnish the
information return.
18715B. If a person who is required to furnish an information return under
section 15A fails to do so within the period specified in the notice issued under
sub-section (3) thereof, the prescribed authority may direct that such person
shall pay, by way of penalty, a sum of one hundred rupees for each day of the
period during which the failure to furnish such return continues.
SETTLEMENT OF CASES
SECTION 31. Definitions. — In this Chapter, unless the context otherwise
requires, —
(a) “assessee” means any person who is liable for payment of excise duty
assessed under this Act or any other Act and includes any producer or
manufacturer of excisable goods or a registered person under the rules made
under this Act, of a private warehouse in which excisable goods are stored;
(b) “Bench” means a Bench of the Settlement Commission;
(c) “case” means any proceeding under this Act or any other Act for the levy,
assessment and collection of excise duty, pending before an adjudicating
authority on the date on which an application under sub-section (1) of section
32E is made :
Provided that when any proceeding is referred back in any appeal or revision,
as the case may be, by any court, Appellate Tribunal or any other authority, to
the adjudicating authority for a fresh adjudication or decision, as the case may
be, then such proceeding shall not be deemed to be a proceeding pending within
the meaning of this clause;
(d) “Chairman” means the Chairman of the Settlement Commission;
(e) “Commissioner (Investigation)” means an officer of the Customs or a
Central Excise Officer appointed as such Commissioner to conduct inquiry or
investigation for the purposes of this Chapter;
187 WEF Presidential assent
101
(f) “Member” means a Member of the Settlement Commission and includes the
Chairman and the Vice-Chairman;
(g) “Settlement Commission” means the Customs, Central Excise and Service
Tax188 Settlement Commission constituted under section 32; and
(h) “Vice-Chairman” means a Vice-Chairman of the Settlement Commission.
SECTION 32. Customs and Central Excise Settlement Commission. — (1)
The Central Government shall, by notification in the Official Gazette, constitute a
Commission to be called the Customs, Central Excise and Service Tax
Settlement Commission for the settlement of cases under this Chapter and
Chapter XIVA of the Customs Act, 1962 (52 of 1962).
(2) The Settlement Commission shall consist of a Chairman and as many Vice-
Chairmen and other Members as the Central Government thinks fit and shall
function within the Department of the Central Government dealing with Customs
and Central Excise matters.
(3) The Chairman, Vice-Chairman and other Members of the Settlement
Commission shall be appointed by the Central Government from amongst
persons of integrity and outstanding ability, having special knowledge of, and
experience in, administration of customs and central excise laws :
Provided that, where a member of the Board is appointed as the Chairman,
Vice-Chairman or as a Member of the Settlement Commission, he shall cease to
be a member of the said Board.
SECTION 32A. Jurisdiction and powers of Settlement Commission. —
(1) Subject to the other provisions of this Chapter, the jurisdiction, powers and
authority of the Settlement Commission may be exercised by Benches thereof.
(2) Subject to the other provisions of this section, a Bench shall be presided
over by the Chairman or a Vice-Chairman and shall consist of two other
Members.
(3) The Bench for which the Chairman is the presiding officer shall be the
principal Bench and other Benches shall be known as additional Benches.
(4) Notwithstanding anything contained in sub-section (1) and sub-section (2),
the Chairman may authorise the Vice-Chairman or other Member appointed to
one Bench to discharge also the functions of the Vice-Chairman or, as the case
may be, other Member of another Bench.
188 WEF Presidential assent
102
(5) The principal Bench shall sit at Delhi and the Central Government shall, by
notification in the Official Gazette, establish additional Benches at such places as
it considers necessary.
(6) Notwithstanding anything contained in the foregoing provisions of this
section, and subject to any rules that may be made in this behalf, when one of
the persons constituting a Bench (whether such person be the presiding officer
or other Member of the Bench) is unable to discharge his functions owing to
absence, illness or any other cause or in the event of the occurrence of any
vacancy either in the office of the presiding officer or in the office of one or the
other Members of the Bench, the remaining Members may function as the Bench
and if the presiding officer of the Bench is not one of the remaining Members,
the senior among the remaining Members shall act as the presiding officer of the
Bench :
Provided that if at any stage of the hearing of any such case or matter, it
appears to the presiding officer that the case or matter is of such a nature that it
ought to be heard of by a Bench consisting of three Members, the case or matter
may be referred by the presiding officer of such Bench to the Chairman for
transfer to such Bench as the Chairman may deem fit.
Provided further that at any stage of the hearing of any such case or matter,
referred to in the first proviso, the Chairman may, if he thinks that the case or
matter is of such a nature that it ought to be heard by a Bench consisting of
three Members, constitute such Bench and if Vice-Chairman is not one of the
Members, the senior among the Members shall act as the presiding officer of
such Bench.
(7) Notwithstanding anything contained in the foregoing provisions of this
section, the Chairman may, for the disposal of any particular case, constitute a
special Bench consisting of more than three Members.
(8) Subject to the other provisions of this Chapter, the special Bench shall sit at
a place to be fixed by the Chairman.
SECTION 32B. Vice-Chairman to act as Chairman or to discharge his
functions in certain circumstances. — (1) In the event of the occurrence of
any vacancy in the office of the Chairman by reason of his death, resignation or
otherwise, the Vice-Chairman or, as the case may be, such one of the Vice-
Chairmen as the Central Government may, by notification in the Official Gazette,
authorise in this behalf, shall act as the Chairman until the date on which a new
Chairman, appointed in accordance with the provisions of this Chapter to fill such
vacancy, enters upon his office.
(2) When the Chairman is unable to discharge his functions owing to absence,
illness or any other cause, the Vice-Chairman or, as the case may be, such one
of the Vice-Chairmen as the Central Government may, by notification in the
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Official Gazette, authorise in this behalf, shall discharge the functions of the
Chairman until the date on which the Chairman resumes his duties.
SECTION 32C. Power of Chairman to transfer cases from one Bench to
another. — On the application of the assessee or the Chief Commissioner or
Commissioner of Central Excise and after giving notice to them, and after
hearing such of them as he may desire to be heard, or on his own motion
without such notice, the Chairman may transfer any case pending before one
Bench, for disposal, to another Bench.
SECTION 32D. Decision to be by majority. — If the Members of a Bench
differ in opinion on any point, the point shall be decided according to the opinion
of the majority, if there is a majority, but if the members are equally divided,
they shall state the point or points on which they differ, and make a reference to
the Chairman who shall either hear the point or points himself or refer the case
for hearing on such point or points by one or more of the other Members of the
Settlement Commission and such point or points shall be decided according to
the opinion of the majority of the Members of the Settlement Commission who
have heard the case, including those who first heard it.
SECTION 32E. Application for settlement of cases. — (1) An assessee
may, in respect of a case relating to him, make an application, before
adjudication, to the Settlement Commission to have the case settled, in such
form and in such manner as may be prescribed and containing a full and true
disclosure of his duty liability which has not been disclosed before the Central
Excise Officer having jurisdiction, the manner in which such liability has been
derived, the additional amount of excise duty accepted to be payable by him and
such other particulars as may be prescribed including the particulars of such
excisable goods in respect of which he admits short levy on account of
misclassification, under-valuation, inapplicability of exemption notification or
Cenvat credit or otherwise and any such application shall be disposed of in the
manner hereinafter provided :
Provided that no such application shall be made unless, —
(a) the applicant has filed returns showing production, clearance and Central
excise duty paid in the prescribed manner;
(b) a show cause notice for recovery of duty issued by the Central Excise
Officer has been received by the applicant;
(c) the additional amount of duty accepted by the applicant in his application
exceeds three lakh rupees; and
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(d) the applicant has paid the additional amount of excise duty accepted by
him along with interest due under section [11AA :
Provided further that the Settlement Commission, if it is satisfied that the
circumstances exist for not filing the returns referred to in clause (a) of the first
proviso to sub-section (1), may after recording the reasons therefor, allow the
applicant to make such application:
Provided also that]189 no application shall be entertained by the Settlement
Commission under this sub-section in cases which are pending with the
Appellate Tribunal or any court :
Provided also that no application under this sub-section shall be made for the
interpretation of the classification of excisable goods under the Central Excise
Tariff Act, 1985 (5 of 1986).
(1A) Notwithstanding anything contained in sub-section (1), where an
application was made under sub-section (1), before the 1st day of June, 2007
but an order under sub-section (1) of section 32F has not been made before the
said date or payment of amount so ordered by the Settlement Commission
under sub-section (1) of section 32F has not been made, the applicant shall
within a period of thirty days from the 1st day of June, 2007, pay the accepted
duty liability failing which his application shall be liable to be rejected.
(3) Every application made under sub-section (1) shall be accompanied by such
fees as may be prescribed.
(4) An application made under sub-section (1) shall not be allowed to be
withdrawn by the applicant.
SECTION 32F. Procedure on receipt of an application under section 32E.
— (1) On receipt of an application under sub-section (1) of section 32E, the
Settlement Commission shall, within seven days from the date of receipt of the
application, issue a notice to the applicant to explain in writing as to why the
application made by him should be allowed to be proceeded with, and after
taking into consideration the explanation provided by the applicant, the
Settlement Commission, shall, within a period of fourteen days from the date of
the notice, by an order, allow the application to be proceeded with, or reject the
application as the case may be, and the proceedings before the Settlement
Commission shall abate on the date of rejection :
Provided that where no notice has been issued or no order has been passed
within the aforesaid period by the Settlement Commission, the application shall
be deemed to have been allowed to be proceeded with.
(2) A copy of every order under sub-section (1), shall be sent to the applicant
and to the Commissioner of Central Excise having jurisdiction.
189 WEF Presidential assent
105
(3) Where an application is allowed or deemed to have been allowed to be
proceeded with under sub-section (1), the Settlement Commission shall, within
seven days from the date of order under sub-section (1), call for a report along
with the relevant records from the Commissioner of Central Excise having
jurisdiction and the Commissioner shall furnish the report within a period of
thirty days of the receipt of communication from the Settlement Commission :
Provided that where the Commissioner does not furnish the report within the
aforesaid period of thirty days, the Settlement Commission shall proceed further
in the matter without the report of the Commissioner.
(4) Where a report of the Commissioner called for under sub-section (3) has
been furnished within the period specified in that sub-section, the Settlement
Commission may, after examination of such report, if it is of the opinion that any
further enquiry or investigation in the matter is necessary, direct, for reasons to
be recorded in writing, the Commissioner (Investigation) within fifteen days of
the receipt of the report, to make or cause to be made such further enquiry or
investigation and furnish a report within a period of ninety days of the receipt of
the communication from the Settlement Commission, on the matters covered by
the application and any other matter relating to the case :
Provided that where the Commissioner (Investigation) does not furnish the
report within the aforesaid period, the Settlement Commission shall proceed to
pass an order under sub-section (5) without such report.
(5) After examination of the records and the report of the Commissioner of
Central Excise received under sub-section (3), and the report, if any, of the
Commissioner (Investigation) of the Settlement Commission under sub-section
(4), and after giving an opportunity to the applicant and to the Commissioner of
Central Excise having jurisdiction to be heard, either in person or through a
representative duly authorised in this behalf, and after examining such further
evidence as may be placed before it or obtained by it, the Settlement
Commission may, in accordance with the provisions of this Act, pass such order
as it thinks fit on the matters covered by the application and any other matter
relating to the case not covered by the application, but referred to in the report
of the Commissioner of Central Excise and Commissioner (Investigation) under
sub-section (3) or sub-section (4).
(6) An order under sub-section (5) shall not be passed in respect of an
application filed on or before the 31st day of May, 2007, later than the 29th day
of February, 2008 and in respect of an application made on or after the 1st day
of June, 2007, after nine months from the last day of the month in which the
application was made, failing which the settlement proceedings shall abate, and
the adjudicating authority before whom the proceeding at the time of making
the application was pending, shall dispose of the case in accordance with the
provisions of this Act as if no application under section 32E had been made.
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Provided that the period specified under this sub-section may, for reasons to be
recorded in writing, be extended by the Settlement Commission for a further
period not exceeding three months.
(7) Subject to the provisions of section 32A, the materials brought on record
before the Settlement Commission shall be considered by the Members of the
concerned Bench before passing any order under sub-section (5) and, in relation
to the passing of such order, the provisions of section 32D shall apply.
(8) The order passed under sub-section (5) shall provide for the terms of
settlement including any demand by way of duty, penalty or interest, the
manner in which any sums due under the settlement shall be paid and all other
matters to make the settlement effective and in case of rejection contain the
reasons therefor and it shall also provide that the settlement shall be void if it is
subsequently found by the Settlement Commission that it has been obtained by
fraud or misrepresentation of facts :
Provided that the amount of settlement ordered by the Settlement Commission
shall not be less than the duty liability admitted by the applicant under section
32E.
(9) Where any duty, interest, fine and penalty payable in pursuance of an order
under sub-section (5) is not paid by the assessee within thirty days of receipt of
a copy of the order by him, the amount which remains unpaid, shall be
recovered along with interest due thereon, as the sums due to the Central
Government by the Central Excise Officer having jurisdiction over the assessee
in accordance with the provisions of section 11.
(10) Where a settlement becomes void as provided under sub-section (8), the
proceedings with respect to the matters covered by the settlement shall be
deemed to have been revived from the stage at which the application was
allowed to be proceeded with by the Settlement Commission and the Central
Excise Officer having jurisdiction may, notwithstanding anything contained in
any other provision of this Act, complete such proceedings at any time before
the expiry of two years from the date of the receipt of communication that the
settlement became void.
SECTION 32G. Power of Settlement Commission to order provisional
attachment to protect revenue. — (1) Where, during the pendency of any
proceeding before it, the Settlement Commission is of the opinion that for the
purpose of protecting the interests of revenue it is necessary so to do, it may, by
order, attach provisionally any property belonging to the applicant in the manner
as may be prescribed.
(2) Every provisional attachment made by the Settlement Commission under
sub-section (1) shall cease to have effect from the date, the sums due to the
Central Government for which such attachment is made are discharged by the
applicant and evidence to that effect is submitted to the Settlement Commission.
107
SECTION 32H. Power of Settlement Commission to reopen completed
proceedings. — If the Settlement Commission is of the opinion (the reasons for
such opinion to be recorded by it in writing) that, for the proper disposal of the
case pending before it, it is necessary or expedient to reopen any proceeding
connected with the case but which has been completed under this Act before
application for settlement under section 32E was made, it may, with the
concurrence of the applicant, reopen such proceeding and pass such order
thereon as it thinks fit, as if the case in relation to which the application for
settlement had been made by the applicant under that section covered such
proceeding also :
Provided that no proceeding shall be reopened by the Settlement Commission
under this section after the expiry of five years from the date of application.
Provided further that no proceeding shall be reopened by the Settlement
Commission under this section in a case where an application under section 32E
is made on or after the 1st day of June, 2007.
SECTION 32-I. Powers and procedure of Settlement Commission. —
(1) In addition to the powers conferred on the Settlement Commission under
this Chapter, it shall have all the powers which are vested in a Central Excise
Officer under this Act or the rules made thereunder.
(2) Where an application made under section 32E has been allowed to be
proceeded with under section 32F, the Settlement Commission shall, until an
order is passed under sub-section (5) of section 32F, have, subject to the
provisions of sub-section (4) of that section, exclusive jurisdiction to exercise the
powers and perform the functions of any Central Excise Officer, under this Act in
relation to the case.
(3) In the absence of any express direction by the Settlement Commission to
the contrary, nothing in this Chapter shall affect the operation of the provisions
of this Act in so far as they relate to any matters other than those before the
Settlement Commission.
(4) The Settlement Commission shall, subject to the provisions of this Chapter,
have power to regulate its own procedure and the procedure of Benches thereof
in all matters arising out of the exercise of its powers, or of the discharge of its
functions, including the places at which the Benches shall hold their sittings.
SECTION 32J. Inspection, etc., of reports. — No person shall be entitled to
inspect, or obtain copies of, any reports made by any Central Excise Officer to
the Settlement Commission; but the Settlement Commission may, in its
discretion furnish copies thereof to any such person on an application made to it
in this behalf and on payment of the prescribed fee :
108
Provided that, for the purpose of enabling any person whose case is under
consideration to rebut any evidence brought on record against him in any such
report, the Settlement Commission shall, on an application made in this behalf,
and on payment of the prescribed fee by such person, furnish him with a
certified copy of any such report or part thereof relevant for the purpose.
SECTION 32K. Power of Settlement Commission to grant immunity
from prosecution and penalty. — (1) The Settlement Commission may, if it
is satisfied that any person who made the application for settlement under
section 32E has co-operated with the Settlement Commission in the
proceedings before it and has made a full and true disclosure of his duty liability,
grant to such person, subject to such conditions as it may think fit to impose,
immunity from prosecution for any offence under this Act and also either wholly
or in part from the imposition of any penalty and fine under this Act, with
respect to the case covered by the settlement :
Provided that no such immunity shall be granted by the Settlement Commission
in cases where the proceedings for the prosecution for any such offence have
been instituted before the date of receipt of the application under section 32E.
Explanation. — For the removal of doubts, it is hereby declared that
applications filed before the Settlement Commission on or before the 31st day of
May, 2007 shall be disposed of as if the amendment in this section had not come
into force.
(2) An immunity granted to a person under sub-section (1) shall stand
withdrawn if such person fails to pay any sum specified in the order of the
settlement passed under sub-section (5) of section 32F within the time specified
in such order or fails to comply with any other condition subject to which the
immunity was granted and thereupon the provisions of this Act shall apply as if
such immunity had not been granted.
(3) An immunity granted to a person under sub-section (1) may, at any time,
be withdrawn by the Settlement Commission, if it is satisfied that such person
had, in the course of the settlement proceedings, concealed any particular
material to the settlement or had given false evidence, and thereupon such
person may be tried for the offence with respect to which the immunity was
granted or for any other offence of which he appears to have been guilty in
connection with the settlement and shall also become liable to the imposition of
any penalty under this Act to which such person would have been liable, had no
such immunity been granted.
SECTION 32L. Power of Settlement Commission to send a case back to
the Central Excise Officer. — (1) The Settlement Commission may, if it is of
opinion that any person who made an application for settlement under section
32E has not co-operated with the Settlement Commission in the proceedings
before it, send the case back to the Central Excise Officer having jurisdiction who
109
shall thereupon dispose of the case in accordance with the provisions of this Act
as if no application under section 32E had been made.
(2) For the purpose of sub-section (1), the Central Excise Officer shall be
entitled to use all the materials and other information produced by the assessee
before the Settlement Commission or the results of the inquiry held or evidence
recorded by the Settlement Commission in the course of the proceedings before
it as if such materials, information, inquiry and evidence had been produced
before such Central Excise Officer or held or recorded by him in the course of the
proceedings before him.
(3) For the purposes of the time limit under section 11A and for the purposes of
interest under section 11BB, in a case referred to in sub-section (1), the period
commencing on and from the date of the application to the Settlement
Commission under section 32E and ending with the date of receipt by the
Central Excise Officer of the order of the Settlement Commission sending the
case back to the Central Excise Officer shall be excluded.
SECTION 32M. Order of settlement to be conclusive. — Every order of
settlement passed under sub-section (5) of section 32F shall be conclusive as to
the matters stated therein and no matter covered by such order shall, save as
otherwise provided in this Chapter, be reopened in any proceeding under this Act
or under any other law for the time being in force.
SECTION 32N. Recovery of sums due under order of settlement. —
Any sum specified in an order of settlement passed under sub-section (5) of
section 32F may, subject to such conditions if any, as may be specified therein,
be recovered, and any penalty for default in making payment of such sum may
be imposed and recovered as sums due to the Central Government in
accordance with the provisions under section 11 by the Central Excise Officer
having jurisdiction over the person who made the application for settlement
under section 32E.
SECTION 32-O. Bar on subsequent application for settlement in certain cases.
— (1) Where, * * * -
(i) an order of settlement passed under sub-section (7) of section 32F , as it
stood immediately before the commencement of section 122 of the Finance Act,
2007 (22 of 2007) or sub-section (5) of section 32F, provides for the imposition
of a penalty on the person who made the application under section 32E for
settlement, on the ground of concealment of particulars of his duty liability; or
Explanation.— In this clause, the concealment of particulars of duty liability
relates to any such concealment made from the Central Excise Officer190
190 WEF Presidential assent
110
(ii) after the passing of an order of settlement under the said sub-section (7)
, as it stood immediately before the commencement of section 122 of the
Finance Act, 2007 (22 of 2007) or sub-section (5) of section 32F, in relation to a
case, such person is convicted of any offence under this Act in relation to that
case; or
(iii) the case of such person is sent back to the Central Excise Officer having
jurisdiction by the Settlement Commission under section 32L,
then, he shall not be entitled to apply for settlement under section 32E in
relation to any other matter.
(2) * * *
SECTION 32P. Proceedings before Settlement Commission to be judicial
proceedings. — Any proceedings under this Chapter before the Settlement
Commission shall be deemed to be a judicial proceeding within the meaning of
Sections 193 and 228, and for the purposes of Section 196 of the Indian Penal
Code (45 of 1860).
SECTION 33A. Adjudication procedure. — (1) The Adjudicating authority
shall, in any proceeding under this Chapter or any other provision of this Act,
give an opportunity of being heard to a party in a proceeding, if the party so
desires.
(2) The Adjudicating authority may, if sufficient cause is shown, at any stage of
proceeding referred to in sub-section (1), grant time, from time to time, to the
parties or any of them and adjourn the hearing for reasons to be recorded in
writing :
Provided that no such adjournment shall be granted more than three times to a
party during the proceeding.
SECTION 35EE. Revision by Central Government. — (1) The Central
Government may, on the application of any person aggrieved by any order
passed under section 35A, where the order is of the nature referred to in the
first proviso to sub-section (1) of section 35B, annul or modify such order :
Provided that the Central Government may in its discretion, refuse to admit
an application in respect of an order where the amount of duty or fine or
penalty, determined by such order does not exceed five thousand rupees.
Explanation. — For the purposes of this sub-section, “order passed under
section 35A” includes an order passed under that section before the
commencement of section 47 of the Finance Act, 1984 against which an appeal
has not been preferred before such commencement and could have been, if the
111
said section had not come into force, preferred after such commencement, to
the Appellate Tribunal.
(1A) The Commissioner of Central Excise may, if he is of the opinion that an
order passed by the Commissioner (Appeals) under section 35A is not legal or
proper, direct the proper officer to make an application on his behalf to the
Central Government for revision of such order.
(2) An application under sub-section (1) shall be made within three months
from the date of the communication to the applicant of the order against which
the application is being made :
Provided that the Central Government may, if it is satisfied that the applicant
was prevented by sufficient cause from presenting the application within the
aforesaid period of three months, allow it to be presented within a further period
of three months.
(3) An application under sub-section (1) shall be in such form and shall be
verified in such manner as may be specified by rules made in this behalf and
shall be accompanied by a fee of, -
(a) two hundred rupees, where the amount of duty and interest demanded,
fine or penalty levied by any Central Excise officer in the case to which the
application relates is one lakh rupees or less;
(b) one thousand rupees, where the amount of duty and interest demanded,
fine or penalty levied by any Central Excise officer in the case to which the
application relates is more than one lakh rupees :
Provided that no such fee shall be payable in the case of an application referred
to in sub-section (1A).
(4) The Central Government may, of its own motion, annul or modify any order
referred to in sub-section (1).
(5) No order enhancing any penalty or fine in lieu of confiscation or confiscating
goods of greater value shall be passed under this section, —
(a) in any case in which an order passed under section 35A has enhanced any
penalty or fine in lieu of confiscation or has confiscated goods of greater value;
and
(b) in any other case, unless the person affected by the proposed order has
been given notice to show cause against it within one year from the date of the
order sought to be annulled or modified.
(6) Where the Central Government is of opinion that any duty of excise has not
been levied or has been short-levied, no order levying or enhancing the duty
112
shall be made under this section unless the person affected by the proposed
order is given notice to show cause against it within the time-limit specified in
section 11A.
SECTION 34A. Confiscation or penalty not to interfere with other
punishments. — No confiscation made or penalty imposed under the
provisions of the Act or of any rule made thereunder shall prevent the infliction
of any other punishment to which the person affected thereby is liable under the
provisions of this Act or under any other law.
SECTION 35C. Orders of Appellate Tribunal. — (1) The Appellate Tribunal
may, after giving the parties to the appeal an opportunity of being heard, pass
such orders thereon as it thinks fit, confirming, modifying or annulling the
decision or order appealed against or may refer the case back to the authority
which passed such decision or order with such directions as the Appellate
Tribunal may think fit, for a fresh adjudication or decision, as the case may be,
after taking additional evidence, if necessary.
[(1A) The Appellate Tribunal may, if sufficient cause is shown, at any stage of
hearing of an appeal, grant time, from time to time, to the parties or any of
them and adjourn the hearing of the appeal for reasons to be recorded in writing
:
Provided that no such adjournment shall be granted more than three times to a
party during hearing of the appeal.].
(2) The Appellate Tribunal may, at any time within [six months] from the date
of the order, with a view to rectifying any mistake apparent from the record,
amend any order passed by it under sub-section (1) and shall make such
amendments if the mistake is brought to its notice by the [Commissioner of
Central Excise] or the other party to the appeal :
Provided that an amendment which has the effect of enhancing an assessment
or reducing a refund or otherwise increasing the liability of the other party, shall
not be made under this sub-section, unless the Appellate Tribunal has given
notice to him of its intention to do so and has allowed him a reasonable
opportunity of being heard.
[(2A) The Appellate Tribunal shall, where it is possible to do so, hear and decide
every appeal within a period of three years from the date on which such appeal
is filed :
191192
191 7. It requires to be noted there is no specific provision authorising grant of stay of
realisation of the adjudicated liability. However the power to grant of stay pending the
hearing of an appeal being an inherent power of an appellate forum/quasi judicial
forum, such power is exercised as integral to the appellate jurisdiction. It is this
exercise of the power to grant of stay that is the subject matter of the sunset clause in
113
(3) The Appellate Tribunal shall send a copy of every order passed under this
section to the [Commissioner of Central Excise] and the other party to the
appeal.
(4) [Save as provided in section 35G or section 35L,] orders passed by the
Appellate Tribunal on appeal shall be final.
SECTION 35D. Procedure of Appellate Tribunal. — (1) The provisions of
sub-sections (1), (2), (5) and (6) of section 129C of the Customs Act, 1962 (52
of 1962), shall apply to the Appellate Tribunal in the discharge of its functions
under this Act as they apply to it in the discharge of its functions under the
Customs Act, 1962.
[(2) * * *]
(3) The President or any other member of the Appellate Tribunal authorised in
this behalf by the President may, sitting singly, dispose of any case which has
been allotted to the Bench of which he is a member where —
(a) in any disputed case, other than a case where the determination of any
question having a relation to the rate of duty of excise or to the value of goods
for purposes of assessment is in issue or is one of the points in issue, the
difference in duty involved or the duty involved; or
(b) the amount of fine or penalty involved, does not exceed [fifty lakh rupees].
19335F. The Tribunal or the Commissioner (Appeals), as the case may be, shall
not entertain any appeal,—
(i) under sub-section (1) of section 35, unless the appellant has deposited
seven and a half per cent. of the duty demanded or penalty imposed
or both, in pursuance of a decision or an order passed by an officer of
Central Excise lower in rank than the Commissioner of Central Excise;
(ii) against the decision or order referred to in clause (a) of sub-section (1) of
section 35B, unless the appellant has deposited seven and a half per cent.
of the duty demanded or penalty imposed or both, in pursuance of the
decision or order appealed against;
(iii) against the decision or order referred to in clause (b) of sub-section (1) of
section 35B,unless the appellant has deposited ten per cent. of the duty
demanded or penalty imposed or both, in pursuance of the decision or order
appealed against:
the proviso to Sub Section (2A) of Section 35C. The sunset clause does not apply to
grant of waiver of pre-deposit, an exercise conditioned by the provision of Section 35F.
On the aforesaid analysis, the orders of the Tribunal dated 20.9.2012 in the stay
application in the two appeals, notwithstanding the observations that the grant of
waiver shall operate during the pendency of the appeal, operate during the pendency of
the appeals. - SHYAM KUMAR AND CO PVT LTD 2014-TIOL-362-CESTAT-DEL
192 WEF Presidential assent
193 WEF Presidential assent
114
Provided that the amount required to be deposited under this section shall not
exceed rupees ten crores:
Provided further that the provisions of this section shall not apply to the stay
applications and appeals pending before any appellate authority prior to the
commencement of the Finance (No.2) Act, 2014.
Explanation.— For the purposes of this section “duty demanded” shall include,—
(i) amount determined under section 11D;
(ii) amount of erroneous Cenvat credit taken;
(iii) amount payable under rule 6 of the Cenvat Credit Rules, 2001 or the Cenvat
Credit Rules, 2002 or the Cenvat Credit Rules, 2004.
SECTION 35FF. Interest on delayed refund of amount deposited under
the proviso to section 35F. — Where an amount deposited by the appellant in
pursuance of an order passed by the Commissioner (Appeals) or the Appellate
Tribunal (hereinafter referred to as the appellate authority), under the first
proviso to section 35F, is required to be refunded consequent upon the order of
the appellate authority and such amount is not refunded within three months
from the date of communication of such order to the adjudicating authority,
unless the operation of the order of the appellate authority is stayed by a
superior court or tribunal, there shall be paid to the appellant interest at the rate
specified in section 11BB after the expiry of three months from the date of
communication of the order of the appellate authority, till the date of refund of
such amount.
SECTION 35G. Appeal to High Court. - (1) An appeal shall lie to the High
Court from every order passed in appeal by the Appellate Tribunal on or after
the 1st day of July, 2003 (not being an order relating, among other things, to
the determination of any question having a relation to the rate of duty of excise
or to the value of goods for purposes of assessment), if the High Court is
satisfied that the case involves a substantial question of law.
(2) The Commissioner of Central Excise or the other party aggrieved by any
order passed by the Appellate Tribunal may file an appeal to the High Court and
such appeal under this sub-section shall be -
(a) filed within one hundred and eighty days from the date on which the order
appealed against is received by the Commissioner of Central Excise or the other
party;
(b) accompanied by a fee of two hundred rupees where such appeal is filed by
the other party;
115
(c) in the form of a memorandum of appeal precisely stating therein the
substantial question of law involved.
(2A) The High Court may admit an appeal after the expiry of the period of one
hundred and eighty days referred to in clause (a) of sub-section (2), if it is
satisfied that there was sufficient cause for not filing the same within that
period.
(3) Where the High Court is satisfied that a substantial question of law is
involved in any case, it shall formulate that question.
(4) The appeal shall be heard only on the question so formulated, and the
respondents shall, at the hearing of the appeal, be allowed to argue that the
case does not involve such question :
Provided that nothing in this sub-section shall be deemed to take away or
abridge the power of the Court to hear, for reasons to be recorded, the appeal
on any other substantial question of law not formulated by it, if it is satisfied that
the case involves such question.
(5) The High Court shall decide the question of law so formulated and deliver
such judgment thereon containing the grounds on which such decision is
founded and may award such cost as it deems fit.
(6) The High Court may determine any issue which -
(a) has not been determined by the Appellate Tribunal; or
(b) has been wrongly determined by the Appellate Tribunal, by reason of
a decision on such question of law as is referred to in sub-section
(1).
(7) When an appeal has been filed before the High Court, it shall be heard by a
bench of not less than two Judges of the High Court, and shall be decided in
accordance with the opinion of such Judges or of the majority, if any, of such
Judges.
(8) Where there is no such majority, the Judges shall state the point of law
upon which they differ and the case shall, then, be heard upon that point only by
one or more of the other Judges of the High Court and such point shall be
decided according to the opinion of the majority of the Judges who have heard
the case including those who first heard it.
(9) Save as otherwise provided in this Act, the provisions of the Code of Civil
Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far
as may be, apply in the case of appeals under this section.
116
SECTION 35H. Application to High Court. — (1) The Commissioner of
Central Excise or the other party may, within one hundred and eighty days of
the date upon which he is served with notice of an order under section 35C
passed before the 1st day of July, 2003 (not being an order relating, among
other things, to the determination of any question having a relation to the rate
of duty of excise or to the value of goods for purposes of assessment), by
application in the prescribed form, accompanied, where the application is made
by the other party, by a fee of two hundred rupees, apply to the High Court to
direct the Appellate Tribunal to refer to the High Court any question of law
arising from such order of the Tribunal.
(2) The Commissioner of Central Excise or the other party applying to the
High Court under sub-section (1) shall clearly state the question of law which he
seeks to be referred to the High Court and shall also specify the paragraph in the
order of the Appellate Tribunal relevant to the question sought to be referred.
(3) On receipt of notice that an application has been made under sub-
section (1), the person against whom such application has been made, may,
notwithstanding that he may not have filed such application, file, within forty-
five days of the receipt of the notice, a memorandum of cross-objections verified
in the prescribed manner against any part of the order in relation to which an
application for reference has been made and such memorandum shall be
disposed of by the High Court as if it were an application presented within the
time specified in sub-section (1).
(3A) The High Court may admit an application or permit the filing of a
memorandum of cross-objections after the expiry of the relevant period referred
to in sub-section (1) or sub-section (3), if it is satisfied that there was sufficient
cause for not filing the same within that period.
(4) If, on an application made under sub-section (1), the High Court
directs the Appellate Tribunal to refer the question of law raised in the
application, the Appellate Tribunal shall, within one hundred and twenty days of
the receipt of such direction, draw up a statement of the case and refer it to the
High Court.
SECTION 35-I. Power of High Court or Supreme Court to require
statement to be amended. — If the High Court or the Supreme Court is not
satisfied that the statements in a case referred to it are sufficient to enable it to
determine the questions raised thereby, the Court may refer the case back to
the Appellate Tribunal for the purpose of making such additions thereto or
alterations therein as it may direct in that behalf.
SECTION 35J. Case before High Court to be heard by not less than two
judges. — (1) When any case has been referred to the High Court under
section 35G or section 35H, it shall be heard by a Bench of not less than two
judges of the High Court and shall be decided in accordance with the opinion of
such judges or of the majority, if any, of such judges.
(2) Where there is no such majority, the judges shall state the point of
117
law upon which they differ and the case shall then be heard upon that point only
by one or more of the other judges of the High Court, and such point shall be
decided according to the opinion of the majority of the judges who have heard
the case including those who first heard it.
SECTION 35K. Decision of High Court or Supreme Court on the case
stated. — (1) The High Court or the Supreme Court hearing any such case
shall decide the question of law raised therein and shall deliver its judgment
thereon containing the grounds on which such decision is founded and a copy of
the judgment shall be sent under the seal of the Court and the signature of the
Registrar to the Appellate Tribunal which shall pass such orders as are necessary
to dispose of the case in conformity with such judgment.
(1A) Where the High Court delivers a judgment in an appeal filed before it
under section 35G, effect shall be given to the order passed on the appeal by the
concerned Central Excise Officer on the basis of a certified copy of the judgment.
(2) The costs of any reference to the High Court or an appeal to the High
Court or the Supreme Court, as the case may be which shall not include the fee
for making the reference, shall be in the discretion of the Court.
SECTION 35L. Appeal to the Supreme Court — (1) An appeal shall lie to
the Supreme Court from —
(a) any judgment of the High Court delivered -
(i) in an appeal made under section 35G; or
(ii) on a reference made under section 35G by the Appellate Tribunal before
the 1st day of July, 2003;
(iii) on a reference made under section 35H,
in any case which, on its own motion or on an oral application made by or on
behalf of the party aggrieved, immediately after passing of the judgment, the
High Court certifies to be a fit one for appeal to the Supreme Court; or.
(b) any order passed before the establishment of the National Tax Tribunal by
the Appellate Tribunal relating, among other things, to the determination of
any question having a relation to the rate of duty of excise or to the value of
goods for purposes of assessment.
(2) For the purposes of this Chapter, the determination of any question having a
relation to the rate of duty shall include the determination of taxability or
excisability of goods for the purpose of assessment.194
SECTION 35M. Hearing before Supreme Court. — (1) The provisions of
the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the
194 WEF Presidential assent
118
Supreme Court shall, so far as may be, apply in the case of appeals under
section 35L as they apply in the case of appeals from decrees of a High Court :
Provided that nothing in this sub-section shall be deemed to affect the
provisions of sub-section (1) of section 35K or section 35N.
(2) The costs of the appeal shall be in the discretion of the Supreme
Court.
(3) Where the judgment of the High Court is varied or reversed in the
appeal, effect shall be given to the order of the Supreme Court in the manner
provided in section 35K in the case of a judgment of the High Court.
SECTION 35N. Sums due to be paid notwithstanding reference, etc. —
Notwithstanding that a reference has been made to the High Court or the
Supreme Court or an appeal has been preferred to the Supreme Court, under
this Act before the commencement of the National Tax Tribunal Act, 2005 sums
due to the Government as a result of an order passed under sub-section (1) of
section 35C shall be payable in accordance with the order so passed.
SECTION 35-O. Exclusion of time taken for copy. — In computing the
period of limitation prescribed for an appeal or application under this Chapter,
the day on which the order complained of was served, and if the party preferring
the appeal or making the application was not furnished with a copy of the order
when the notice of the order was served upon him, the time requisite for
obtaining a copy of such order shall be excluded.
SECTION 35Q. Appearance by authorised representative. — (1) Any
person who is entitled or required to appear before a Central Excise Officer or
the Appellate Tribunal in connection with any proceedings under this Act,
otherwise than when required under this Act to appear personally for
examination on oath or affirmation, may, subject to the other provisions of this
section, appear by an authorised representative.
(2) For the purposes of this section, “authorised representative” means a
person authorised by the person referred to in sub-section (1) to appear on his
behalf, being —
(a) his relative or regular employee; or
(b) any legal practitioner who is entitled to practise in any civil court in India;
or
(c) any person who has acquired such qualifications as the Central Government
may prescribe for this purpose.
(3) Notwithstanding anything contained in this section, no person who
was a member of the Indian Customs and Central Excise Service — Group A and
has retired or resigned from such Service after having served for not less than
three years in any capacity in that Service, shall be entitled to appear as an
119
authorised representative in any proceedings before a Central Excise Officer for
a period of two years from the date of his retirement or resignation, as the case
may be.
(4) No person, —
(a) who has been dismissed or removed from Government service; or
(b) who is convicted of an offence connected with any proceeding under this
Act, the Customs Act, 1962 (52 of 1962) or the Gold (Control) Act, 1968 (45 of
1968); or
(c) who has become an insolvent,
shall be qualified to represent any person under sub-section (1), for all times in
the case of a person referred to in clause (a), and for such time as the
Commissioner of Central Excise or the competent authority under the Customs
Act, 1962 or the Gold (Control) Act, 1968, as the case may be, may, by order,
determine in the case of a person referred to in clause (b), and for the period
during which the insolvency continues in the case of a person referred to in
clause (c).
(5) If any person, —
(a) who is a legal practitioner, is found guilty of mis-conduct in his professional
capacity by any authority entitled to institute proceedings against him, an order
passed by that authority shall have effect in relation to his right to appear before
a Central Excise Officer or the Appellate Tribunal as it has in relation to his right
to practise as a legal practitioner;
(b) who is not a legal practitioner, is found guilty of mis-conduct in connection
with any proceedings under this Act by the prescribed authority, the prescribed
authority may direct that he shall thenceforth be disqualified to represent any
person under sub-section (1).
(6) Any order or direction under clause (b) of sub-section (4) or clause
(b) of sub-section (5) shall be subject to the following conditions, namely :—
(a) no such order or direction shall be made in respect of any person unless he
has been given a reasonable opportunity of being heard;
(b) any person against whom any such order or direction is made may, within
one month of the making of the order or direction, appeal to the Board to have
the order or direction cancelled; and
(c) no such order or direction shall take effect until the expiration of one month
from the making thereof, or, where an appeal has been preferred, until the
disposal of the appeal.
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SECTION 35R. Appeal not to be filed in certain cases. — (1) The Central
Board of Excise and Customs may, from time to time, issue orders or
instructions or directions fixing such monetary limits, as it may deem fit, for the
purposes of regulating the filing of appeal, application, revision or reference by
the Central Excise Officer under the provisions of this Chapter.
(2) Where, in pursuance of the orders or instructions or directions, issued
under sub-section (1), the Central Excise Officer has not filed an appeal,
application, revision or reference against any decision or order passed under the
provisions of this Act, it shall not preclude such Central Excise Officer from filing
appeal, application, revision or reference in any other case involving the same or
similar issues or questions of law.
(3) Notwithstanding the fact that no appeal, application, revision or reference
has been filed by the Central Excise Officer pursuant to the orders or instructions
or directions issued under sub-section (1), no person, being a party in appeal,
application, revision or reference shall contend that the Central Excise Officer
has acquiesced in the decision on the disputed issue by not filing appeal,
application, revision or reference.
(4) The Commissioner (Appeals) or the Appellate Tribunal or court195 hearing
such appeal, application, revision or reference shall have regard to the
circumstances under which appeal, application, revision or reference was not
filed by the Central Excise Officer in pursuance of the orders or instructions or
directions issued under sub-section (1).
(5) Every order or instruction or direction issued by the Central Board of Excise
and Customs on or after the 20th day of October, 2010, but before the date on
which the Finance Bill, 2011 receives the assent of the President, fixing
monetary limits for filing of appeal, application, revision or reference shall be
deemed to have been issued under sub-section (1) and the provisions of sub-
sections (2), (3) and (4) shall apply accordingly.
SECTION 36. Definitions. — In this Chapter —
(a) “appointed day” means the date of coming into force of the amendments to
this Act specified in Part II of the Fifth Schedule to the Finance (No. 2) Act,
1980;
(b) “High Court” means, —
(i) in relation to any State, the High Court for that State;
(ii) in relation to a Union Territory to which the jurisdiction of the High Court of
a State has been extended by law, that High Court;
(iii) in relation to the Union Territories of Dadra and Nagar Haveli and Daman
and Diu, the High Court at Bombay;
195 WEF Presidential assent
121
(iv) in relation to any other Union Territory, the highest court of civil
appeal for that territory other than the Supreme Court of India;
(c) “President” means the President of the Appellate Tribunal.
CHAPTER VIB - PRESUMPTION AS TO DOCUMENTS
SECTION 36A. Presumption as to documents in certain cases. — Where
any document is produced by any person or has been seized from the custody or
control of any person, in either case, under this Act or under any other law and
such document is tendered by the prosecution in evidence against him or against
him and any other person who is tried jointly with him, the Court shall, —
(a) unless the contrary is proved by such person, presume —
(i) the truth of the contents of such document;
(ii) that the signature and every other part of such document which purports to
be in the handwriting of any particular person or which the Court may
reasonably assume to have been signed by, or to be in the handwriting of, any
particular person, is in that person’s handwriting, and in the case of a document
executed or attested, that it was executed or attested by the person by whom it
purports to have been so executed or attested;
(b) admit the document in evidence, notwithstanding that it is not duly
stamped, if such document is otherwise admissible in evidence.
SECTION 36B. Admissibility of micro films, facsimile copies of
documents and computer print outs as documents and as evidence. —
(1) Notwithstanding anything contained in any other law for the time being in
force, —
(a) a micro film of a document or the reproduction of the image or images
embodied in such micro film (whether enlarged or not); or
(b) a facsimile copy of a document; or
(c) a statement contained in a document and included in a printed material
produced by a computer (hereinafter referred to as a “computer print out”), if
the conditions mentioned in sub-section (2) and the other provisions contained
in this section are satisfied in relation to the statement and the computer in
question,
shall be deemed to be also a document for the purposes of this Act and the rules
made thereunder and shall be admissible in any proceedings thereunder, without
further proof or production of the original, as evidence of any contents of the
122
original or of any fact stated therein of which direct evidence would be
admissible.
(2) The conditions referred to in sub-section (1) in respect of a computer
print out shall be the following, namely :—
(a) the computer print out containing the statement was produced by the
computer during the period over which the computer was used regularly to store
or process information for the purposes of any activities regularly carried on over
that period by the person having lawful control over the use of the computer;
(b) during the said period, there was regularly supplied to the computer in the
ordinary course of the said activities, information of the kind contained in the
statement or of the kind from which the information so contained is derived;
(c) throughout the material part of the said period, the computer was operating
properly or, if not, then any respect in which it was not operating properly or
was out of operation during that part of that period was not such as to affect the
production of the document or the accuracy of the contents; and
(d) the information contained in the statement reproduced or is derived from
information supplied to the computer in the ordinary course of the said activities.
(3) Where over any period, the function of storing or processing
information for the purposes of any activities regularly carried on over that
period as mentioned in clause (a) of sub-section (2) was regularly performed by
computers, whether —
(a) by a combination of computers operating over that period; or
(b) by different computers operating in succession over that period; or
(c) by different combinations of computers operating in succession over that
period; or
(d) in any other manner involving the successive operation over that period, in
whatever order, of one or more computers and one or more combinations of
computers,
all the computers used for that purpose during that period shall be treated for
the purposes of this section as constituting a single computer; and references in
this section to a computer shall be construed accordingly.
(4) In any proceedings under this Act and the rules made thereunder
where it is desired to give a statement in evidence by virtue of this section, a
certificate doing any of the following things, that is to say, —
123
(a) identifying the document containing the statement and describing the
manner in which it was produced;
(b) giving such particulars of any device involved in the production of that
document as may be appropriate for the purpose of showing that the document
was produced by a computer;
(c) dealing with any of the matters to which the conditions mentioned in sub-
section (2) relate,
and purporting to be signed by a person occupying a responsible official position
in relation to the operation of the relevant device or the management of the
relevant activities (whichever is appropriate) shall be evidence of any matter
stated in the certificate; and for the purposes of this sub-section it shall be
sufficient for a matter to be stated to the best of the knowledge and belief of the
person stating it.
(5) For the purposes of this section, —
(a) information shall be taken to be supplied to a computer if it is supplied
thereto in any appropriate form and whether it is so supplied directly or (with or
without human intervention) by means of any appropriate equipment;
(b) whether in the course of activities carried on by any official, information is
supplied with a view to its being stored or processed for the purposes of those
activities by a computer operated otherwise than in the course of those
activities, that information, if duly supplied to that computer, shall be taken to
be supplied to it in the course of those activities;
(c) a document shall be taken to have been produced by a computer whether it
was produced by it directly or (with or without human intervention) by means of
any appropriate equipment.
Explanation. — For the purposes of this section, —
(a) “computer” means any device that receives, stores and processes data,
applying stipulated processes to the information and supplying results of these
processes; and
(b) any reference to information being derived from other information shall be
a reference to its being derived therefrom by calculation, comparison or any
other process.
SECTION 37A. Delegation of powers. - The Central Government may, by
notification in the Official Gazette direct that subject to such conditions, if any,
as may be specified in the notification —
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(a) any power exercisable by the Board under this Act may be exercisable also
by a Chief Commissioner of Central Excise or a Commissioner of Central Excise
empowered in this behalf by the Central Government;
(b) any power exercisable by a Commissioner of Central Excise under this Act
may be exercisable also by a Joint Commissioner of Central Excise or an
Assistant Commissioner of Central Excise or Deputy Commissioner of Central
Excise empowered in this behalf by the Central Government;
(c) any power exercisable by a Joint Commissioner of Central Excise under this
Act may be exercisable also by an Assistant Commissioner of Central Excise or
Deputy Commissioner of Central Excise empowered in this behalf by the Central
Government; and
(d) any power exercisable by an Assistant Commissioner of Central Excise or
Deputy Commissioner of Central Excise under this Act may be exercisable also
by a gazetted officer of Central Excise empowered in this behalf by the Board.
SECTION 37B. Instructions to Central Excise Officers. — The Central
Board of Excise and Customs constituted under the Central Boards of Revenue
Act, 1963 (54 of 1963), may, if it considers it necessary or expedient so to do
for the purpose of uniformity in the classification of excisable goods or with
respect to levy of duties of excise on such goodssuch goods or for the
implementation of any provisions of this Act196, issue such orders, instructions
and directions to the Central Excise Officers as it may deem fit, and such officers
and all other persons employed in the execution of this Act shall observe and
follow such orders, instructions and directions of the said Board :
Provided that no such orders, instructions or directions shall be issued—
(a) so as to require any Central Excise Officer to make a particular assessment
or to dispose of a particular case in a particular manner; or
(b) so as to interfere with the discretion of the Commissioner of Central Excise
(Appeals) in the exercise of his appellate functions.
SECTION 37C. Service of decisions, orders, summons, etc. — (1) Any
decision or order passed or any summons or notices issued under this Act or the
rules made thereunder, shall be served, -
(a) by tendering the decision, order, summons or notice, or sending it by
registered post with acknowledgment due or by speed post with proof of
196 To be inserted from date of enactment of Finance Bill, 2016
125
delivery or by courier approved by the Central Board of Excise and Customs
constituted under the Central Boards of Revenue Act, 1963197, to the person for
whom it is intended or his authorised agent, if any;
(b) if the decision, order, summons or notice cannot be served in the manner
provided in clause (a), by affixing a copy thereof to some conspicuous part of
the factory or warehouse or other place of business or usual place of residence
of the person for whom such decision, order, summons or notice, as the case
may be, is intended;
(c) if the decision, order, summons or notice cannot be served in the manner
provided in clauses (a) and (b), by affixing a copy thereof on the notice board of
the officer or authority who or which passed such decision or order or issued
such summons or notice.
(2) Every decision or order passed or any summons or notice issued
under this Act or the rules made thereunder, shall be deemed to have been
served on the date on which the decision, order, summons or notice is tendered
or delivered by post or courier referred to in sub-section (1)198 or a copy thereof
is affixed in the manner provided in sub-section (1).
SECTION 37D. Rounding off of duty, etc. — The amount of duty, interest,
penalty, fine or any other sum payable, and the amount of refund or any other
sum due, under the provisions of this Act shall be rounded off to the nearest
rupee and, for this purpose, where such amount contains a part of a rupee
consisting of paise then, if such part is fifty paise or more, it shall be increased
to one rupee and if such part is less than fifty paise it shall be ignored.
SECTION 38A. Effect of amendments, etc., of rules, notifications or
orders. — Where any rule, notification or order made or issued under this Act or
any notification or order issued under such rule, is amended, repealed,
superseded or rescinded, then, unless a different intention appears, such
amendment, repeal, supersession or rescinding shall not -
(a) revive anything not in force or existing at the time at which the
amendment, repeal, supersession or rescinding takes effect; or
(b) affect the previous operation of any rule, notification or order so amended,
repealed, superseded or rescinded or anything duly done or suffered thereunder;
or
(c) affect any right, privilege, obligation or liability acquired, accrued or
incurred under any rule, notification or order so amended, repealed, superseded
or rescinded; or
197 Effective from 10 May 2013
198 Effective from 10 May 2013
126
(d) affect any penalty, forfeiture or punishment incurred in respect of any
offence committed under or in violation of any rule, notification or order so
amended, repealed, superseded or rescinded; or
(e) affect any investigation, legal proceeding or remedy in respect of any such
right, privilege, obligation, liability, penalty, forfeiture or punishment as
aforesaid,
and any such investigation, legal proceeding or remedy may be instituted,
continued or enforced and any such penalty, forfeiture or punishment may be
imposed as if the rule, notification or order, as the case may be, had not been
amended, repealed, superseded or rescinded.
SECTION 40. Protection of action taken under the Act. — (1) No suit,
prosecution or other legal proceeding shall lie against the Central Government or
any officer of the Central Government or a State Government for anything which
is done, or intended to be done, in good faith, in pursuance of this Act or any
rule made thereunder.
(2) No proceeding, other than a suit, shall be commenced against the
Central Government or any officer of the Central Government or a State
Government for anything done or purported to have been done in pursuance of
this Act or any rule made thereunder, without giving the Central Government or
such officer a month’s previous notice in writing of the intended proceeding and
of the cause thereof or after the expiration of three months from the accrual of
such cause.
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6. SERVICE TAX RULES, 1994
NOTIFICATION NO. 2/94 - ST, DATED JUNE 28, 1994, AS
AMENDED
In exercise of the powers conferred by sub-section (1), read with sub-section (2)
of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government
hereby makes the following rules for the purpose of the assessment and
collection of service tax, namely: -
1. SHORT TITLE AND COMMENCEMENT
(1) These rules may be called the Service Tax Rules, 1994.
(2) They shall come into force on the 1st day of July, 1994.
2. DEFINITIONS
(1) In these rules, unless the context otherwise requires, -
(a) “Act” means the Finance Act, 1994 (32 of 1994);
199(aa) “aggregator” means a person, who owns and manages a web based
software application, and by means of the application and a communication
device, enables a potential customer to connect with persons providing service
of a particular kind under the brand name or trade name of the aggregator;
(b) “assessment” includes self-assessment of service tax by the assessee,
reassessment, provisional assessment, best judgment assessment and any
order of assessment in which the tax assessed is nil; determination of the
interest on the tax assessed or reassessed;
“(bb) “banking company” has the meaning assigned to it in clause (a) of section
45A of the Reserve Bank of India Act, 1934 (2 of 1934);
(bc) “body corporate” has the meaning assigned to it in clause (7) of section 2 of
the Companies Act, 1956 (1 of 1956);
(bca) 200“brand name or trade name” means, a brand name or a trade name,
whether registered or not, that is to say, a name or a mark, such as an
invented word or writing, or a symbol, monogram, logo, label, signature,
which is used for the purpose of indicating, or so as to indicate a connection,
199 Inserted vide Not. No. 5/2015-ST w.e.f 01.03.2015
200 Inserted vide Not. No. 5/2015-ST w.e.f 01.03.2015
128
in the course of trade, between a service and some person using the name
or mark with or without any indication of the identity of that person
(bd) “financial institution” has the meaning assigned to it in clause (c) of section
45-I of the Reserve Bank of India Act, 1934 (2 of 1934);”
(c) “Form” means a Form appended to these rules;
(c1a) goods carriage” has the meaning assigned to it in clause (14) of section 2
of the Motor Vehicles Act, 1988 (59 of 1988);
(ca) “Half-year” means the period between 1st April to 30th September or 1st
October-to 31st March of a financial year;
(cb) “input service distributor” has the meaning assigned to it in clause (m) of
Rule 2 of the CENVAT Credit Rules, 2004;
“(cba) “insurance agent” has the meaning assigned to it in clause (10) of section
2 of the Insurance Act, 1938 (4 of 1938);”
(cc) “large taxpayer” has the meaning assigned to it in the Central Excise Rules,
2002.
‘(cca)“legal service” means any service provided in relation to advice,
consultancy or assistance in any branch of law, in any manner and includes
representational services before any court, tribunal or authority;
(ccb) “life insurance business” has the meaning assigned to it in clause (11) of
section 2 of the Insurance Act, 1938 (4 of 1938);
(ccc) “non-banking financial company” has the meaning assigned to it in clause
(f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);
(cd) “partnership firm” includes a limited liability partnership;.
(d) person liable for paying service tax, -
(i) in respect of the taxable services notified under sub-section (2) of section 68
of the Act, means,-
(A) in relation to service provided or agreed to be provided by an insurance
agent to any person carrying on the insurance business, the recipient of
the service.
129
(AA) in relation to service provided or agreed to be provided by a recovery agent to a
banking company or a financial institution or a non-banking financial company, the
recipient of the service;201
(AAA)202 in relation to service provided or agreed to be provided by a person
involving an aggregator in any manner, the aggregator of the service:
Provided that if the aggregator does not have a physical presence in the
taxable territory, any person representing the aggregator for any
purpose in the taxable territory shall be liable for paying service tax;
Provided further that if the aggregator does not have a physical presence
or does not have a representative for any purpose in the taxable
territory, the aggregator shall appoint a person in the taxable territory
for the purpose of paying service tax and such person shall be liable for
paying service tax
(B) in relation to service provided or agreed to be provided by a goods
transport agency in respect of transportation of goods by road, where
the person liable to pay freight is,—
(I) any factory registered under or governed by the Factories Act, 1948
(63 of 1948);
(II) any society registered under the Societies Registration Act, 1860
(21 of 1860) or under any other law for the time being in force in
any part of India;
(III) any co-operative society established by or under any law;
(IV) any dealer of excisable goods, who is registered under the Central
Excise Act, 1944 (1 of 1944) or the rules made thereunder;
(V) any body corporate established, by or under any law; or
(VI) any partnership firm whether registered or not under any law
including association of persons;
any person who pays or is liable to pay freight either himself or through
his agent for the transportation of such goods by road in a goods carriage:
201 Inserted from 11 July 2014 vide Not. No. 9/2014-ST
202 Inserted vide Not. No. 5/2015-ST w.e.f. 01.03.2015
130
Provided that when such person is located in a non-taxable territory, the
provider of such service shall be liable to pay service tax.
(C) in relation to service provided or agreed to be provided by way of
sponsorship to anybody corporate or partnership firm located in the taxable
territory, the recipient of such service;
(D) in relation to service provided or agreed to be provided by,-
(I) an arbitral tribunal, or
(II) a firm of advocates or an individual advocate other than a senior
advocate by way of legal services203an individual advocate or a firm of
advocates by way of legal services, to any business entity located in
the taxable territory, the recipient of such service;
(E) in relation to204 support services provided or agreed to be provided by
Government or local authority except,-
(a) renting of immovable property, and
(b) services specified sub-clauses (i), (ii) and (iii) of clause (a) of section
66D of the Finance Act,1994,
to any business entity located in the taxable territory, the recipient of such
service;
(EE) in relation to service provided or agreed to be provided by a director of a company or a
body corporate to the said company or the body corporate, the recipient of such service205
(EEA) in relation to service provided or agreed to be provided by a mutual fund
agent or distributor to a mutual fund or asset management company, the
recipient of the service206
(EEB) in relation to service provided or agreed to be provided by a selling or
marketing agent of lottery tickets to a lottery distributor or selling agent,
the recipient of the service207
203 Subtituted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
204 Deleted vide Not. No. 5/2015-ST read with Not. No. 17/2016-ST effective from 01.04.2016
205 Substituted from 11 July 2014 vide Not. No. 9/2014-ST
206 Deleted vide Notification No. 19/2016-ST w.e.f. 01.042016
131
(F) in relation to services provided or agreed to be provided by way of :-
(a) renting of a motor vehicle designed to carry passengers, to any person
who is not engaged in a similar business; or
(b) supply of manpower for any purpose or security services208; or
(c) service portion in execution of a works contract-
by any individual, Hindu Undivided Family or partnership firm, whether
registered or not, including association of persons, located in the taxable
territory to a business entity registered as a body corporate, located in the
taxable territory, both the service provider and the service recipient to the
extent notified under sub-section (2) of section 68 of the Act, for each
respectively.
(G) in relation to any taxable service provided or agreed to be provided by any
person which is located in a non-taxable territory and received by any
person located in the taxable territory, the recipient of such service;
(ii) in a case other than sub-clause (i), means the provider of service.
(dd) “place of provision” shall be the place as determined by Place of Provision
of Services Rules 2012;’
(f) “renting of immovable property” means any service provided or agreed to be
provided by renting of immovable property or any other service in relation
to such renting.
(fa) “security services” means services relating to the security of any property,
whether movable or immovable, or of any person, in any manner and
includes the services of investigation, detection or verification, of any fact
or activity209
(g) “supply of manpower” means supply of manpower, temporarily or otherwise,
to another person to work under his superintendence or control.’
207 Inserted vide Not. No. 5/2015-ST w.e.f. 01.0.4.2015
208 Ibid
209 Not. No. 46/2012-ST dated 7 August 2012
132
(e) “quarter” means the period between 1st January to 31st March or 1st April to
30th June or 1st July to 30th September or 1st October to 31st December
of a financial year.
(2) All words and expressions used but not defined in these rules but defined in
the Central Excise Act, 1944 (1 of 1944), and the Rules made there under
shall have the meanings assigned to them in that Act and rules.
3. APPOINTMENT OF OFFICERS
The Central Board of Excise and Customs may appoint such Central Excise
Officers as it thinks fit for exercising the powers under Chapter V of the Act
within such local limits as it may assign to them as also specify the taxable
service in relation to which any such Central Excise Officer shall exercise his
powers.
4. REGISTRATION
(1) Every person liable for paying the service tax shall make an application to
the concerned Superintendent of Central Excise in Form ST-1 for registration
within a period of thirty days from the date on which the service tax under
section 66B of the Finance Act, 1994 (32 of 1994) is levied:
Provided that where a person commences the business of providing a taxable
service after such service has been levied, he shall make an application for
registration within a period of thirty days from the date of such commencement:
Provided further that a person liable for paying the service tax in the case of
taxable services referred to in sub-section (4) or sub-section (5) of section 66 of
the Finance Act, 1994 (32 of 1994) may make an application for registration on
or before the 31st day of December, 1998:
Provided also that a person liable for paying the service tax in the case of
taxable services referred to in sub-clause (zzp) of clause (105) of section 65 of
the Act may make an application for registration on or before the 31st day of
March, 2005.
(2) Where a person, liable for paying service tax on a taxable service,
(i) provides such service from more than one premises or offices; or
(ii) receives such service in more than one premises or offices; or
133
(iii) is having more than one premises or offices, which are engaged in
relation to such service in any other manner, making such person
liable for paying service tax, and has centralised billing system or
centralised accounting system in respect of such service, and such
centralised billing or centralised accounting systems are located in one
or more premises, he may, at his option, register such premises or
offices from where centralised billing or centralised accounting
systems are located210.
(3) The registration under sub-rule (2), shall be granted by the Commissioner of
Central Excise in whose jurisdiction the premises or offices, from where
centralised billing or accounting is done, are located:
Provided that nothing contained in this sub-rule shall have any effect on the
registration granted to the premises or offices having such centralised billing or
centralised accounting systems, prior to the 2nd day of November, 2006.
(3A)Where an assessee is providing a taxable service from more than one
premises or offices, and does not have any centralized billing systems or
centralized accounting systems, as the case may be, he shall make separate
applications for registration in respect of each of such premises or offices to
the jurisdictional Superintendent of Central Excise.
(4) Where an assessee is providing more than one taxable service, he may make
a single application, mentioning therein all the taxable services provided by
him, to the concerned Superintendent of Central Excise.
(5) The Superintendent of Central Excise shall after due verification of the
application form or an intimation under sub-rule (5A), as the case may be,
grant a certificate of registration in Form ST-2 within seven days from the
date of receipt of the application or the intimation. If the registration
certificate is not granted within the said period, the registration applied for
shall be deemed to have been granted.
(5A)Where there is a change in any information or details furnished by an
assessee in Form ST-1 at the time of obtaining registration or he intends to
210 Argument that respondent is a service receiver and hence is not eligible for
centralized registration is meaningless and defeats the objective of registration 2013-
TIOL-990-CESTAT-MUM
134
furnish any additional information or detail, such change or information or
details shall be intimated, in writing, by the assessee, to 112 Service Tax in
India the jurisdictional Assistant Commissioner or Deputy Commissioner of
Central Excise, as the case may be, within a period of thirty days of such
change.
(6) Where a registered assessee transfers his business to another person, the
transferee shall obtain a fresh certificate of registration.
(7) Every registered assessee, who ceases to provide the taxable service for
which he is registered, shall surrender his registration certificate immediately
to the Superintendent of Central Excise.
(8) On receipt of the certificate under sub-rule (7), the Superintendent of
Central Excise shall ensure that the assessee has paid all monies due to the
Central Government under the provisions of the Act, and the rules and the
notifications issued thereunder, and thereupon cancel the registration
certificate.
(9) The registration granted under this rule shall be subject to such conditions,
safeguards and procedure as may be specified by an order issued by the
Board211
4A. TAXABLE SERVICE TO BE PROVIDED OR CREDIT TO BE
DISTRIBUTED ON INVOICE, BILL OR CHALLAN
(1) Every person providing taxable service, not later than thirty days from the
date of completion of such taxable service or receipt of any payment towards
the value of such taxable service, whichever is earlier, shall issue an invoice,
a bill or, as the case may be, a challan signed by such person or a person
authorised by him in respect of such taxable service provided or agreed to
be providedand such invoice, bill or, as the case may be, challan shall be
serially numbered and shall contain the following, namely: -
(i) the name, address and the registration number of such person;
(ii) the name and address of the person receiving taxable service;
(iii) description and value of taxable service provided or agreed to be
provided; and (iv) the service tax payable thereon:
211 Inserted vide Not. No. 5/2015-ST w.e.f. 01.0.4.2015
135
Provided that in case the provider of taxable service is a banking company or a
financial institution including a non-banking financial company, providing service
to any person, an invoice, a bill or, as the case may be, challan shall include any
document, by whatever name called, whether or not serially numbered, and
whether or not containing address of the person receiving taxable service but
containing other information in such documents as required under this sub-rule:
Provided further that in case the provider of taxable service is a goods transport
agency, providing service to any person, in relation to transport of goods by
road in a goods carriage, an invoice, a bill or, as the case may be, a challan shall
include any document, by whatever name called, which shall contain the details
of the consignment note number and date, gross weight of the consignment and
also contain other information as required under this sub-rule:
Provided also that in case of continuous supply of service, every person
providing such taxable service shall issue an invoice, bill or challan, as the case
may be, within thirty days of the date when each event specified in the contract,
which requires the service receiver to make any payment to the service provider
is completed:
Provided also that in case the provider of taxable service is a banking company
or a financial institution including a non-banking financial company, providing
service to any person, in relation to banking and other financial services, the
period within which the invoice, bill or challan, as the case may be is to be
issued, shall be forty five days
Provided also that in case the provider of taxable service is providing the service
of transport of passenger, an invoice, a bill or as the case may be, challan shall
include ticket in any form by whatever name called and whether or not
containing registration number of the service provider, classification of the
service received and address of the service receiver but containing other
information in such documents as required under this sub-rule.
Provided also that wherever the provider of taxable service receives an amount
upto rupees one thousand in excess of the amount indicated in the invoice and
the provider of taxable service has opted to determine the point of taxation
based on the option as given in Point of Taxation Rules, 2011, no invoice is
required to be issued to such extent
136
(2) Every input service distributor distributing credit of taxable services shall, in
respect of credit distributed, issue an invoice, a bill or, as the case may be, a
challan signed by such person or a person authorised by him, for each of the
recipient of the credit distributed, and such invoice, bill or, as the case may
be, challan shall be serially numbered and shall contain the following,
namely: -
(i) the name, address and registration number of the person providing input
services and the serial number and date of invoice, bill, or as the case
may be, challan issued under sub-rule (1);
(ii) the name and address of the said input service distributor;
(iii) the name and address of the recipient of the credit distributed;
(iv) the amount of the credit distributed:
Provided that in case the input service distributor is an office of a banking
company or a financial institution including a non-banking financial company,
providing service to any person, , an invoice, a bill or, as the case may be,
challan shall include any document, by whatever name called, whether or not
serially numbered but containing other information in such documents as
required under this sub-rule.
4B. ISSUE OF CONSIGNMENT NOTE
Any goods transport agency which provides service in relation to transport of
goods by road in a goods carriage shall issue a consignment note to the recipient
of service:
Provided that where any taxable service in relation to transport of goods by road
in a goods carriage is wholly exempted under section 93 of the Act, the goods
transport agency shall not be required to issue the consignment note.
Explanation. - For the purposes of this rule and the second proviso to rule 4A,
“consignment note” means a document, issued by a goods transport agency
against the receipt of goods for the purpose of transport of goods by road in a
goods carriage, which is serially numbered, and contains the name of the
consignor and consignee, registration number of the goods carriage in which the
goods are transported, details of the goods transported, details of the place of
137
origin and destination, person liable for paying service tax whether consignor,
consignee or the goods transport agency.
4C. Authentication by digital signature-
(1) Any invoice, bill or challan issued under rule 4A or consignment note
issued under rule 4B may be authenticated by means of a digital
signature
(2) The Board may, by notification, specify the conditions, safeguards and
procedure to be followed by any person issuing digitally signed invoices
5. RECORDS
(1) The records including computerised data as maintained by an assessee in
accordance with the various laws in force from time to time shall be
acceptable.
(2) Every assessee shall furnish to the Superintendent of Central Excise at the
time of filing of return for the first time or the 31st day of January, 2008,
whichever is later, a list in duplicate, of
(i) all the records prepared or maintained by the assessee for accounting of
transactions in regard to,
(a) providing of any service,;
(b) receipt or procurement of input services and payment for such input
services;
(c) receipt, purchase, manufacture, storage, sale, or delivery, as the case
may be, in regard of inputs and capital goods;
(d) other activities, such as manufacture and sale of goods, if any.
(ii) all other financial records maintained by him in the normal course of
business.
(3) All such records shall be preserved at least for a period of five years
immediately after the financial year to which such records pertain.
(4) Records under this rule may be preserved in electronic form and every
page of the record so preserved shall be authenticated by means of a
digital signature.
138
The Board may, by notification, specify the conditions, safeguards and
procedure to be followed by an assessee preserving digitally signed records
Explanation – For the purposes of rule 4C and sub-rule (4) and (5) of this
rule,-
(i) The expression “authenticate” shall have the same meaning as assigned in
the Information Technology Act, 2000 (21 of 2000).
(ii) The expression “digital signature” shall have the meaning as defined in
the Information Technology Act, 2000 (21 of 2000) and the expression
“digitally signed” shall be construed accordingly212
2135A. ACCESS TO A REGISTERED PREMISES
(1) An officer authorised by the Commissioner in this behalf shall have access to
any premises registered under these rules for the purpose of carrying out
any scrutiny, verification and checks as may be necessary to safeguard the
interest of revenue.
(2) Every assessee shall, on demand, make available to the officer authorised
under sub-rule (1) or the audit party deputed by the Commissioner or the
Comptroller and Auditor General of India, within a reasonable time not
exceeding fifteen working days from the day when such demand is made, or
such further period as may be allowed by such officer or the audit party, as
the case may be,-
(i) the records as mentioned in sub-rule (2) of rule 5;
(ii) trial balance or its equivalent; and
(iii) the income-tax audit report, if any, under section 44AB of the Income-
tax Act,1961 (43 of 1961), for the scruitiny of the officer or audit party, as
the case may be
6. PAYMENT OF SERVICE TAX
(1) The service tax shall be paid to the credit of the Central Government,-
212 Inserted w.e.f 01.04.2015 vide Not. No. 5/2015-ST
213 CAG has no power to audit records of a private assessee: there is no provision in
Chapter V of the Finance Act, 1994 or for that matter in the CAG Act which empowers
the CAG to audit the accounts of an assessee which is a nongovernment company, not
in receipt of aid or assistance from any government or government entity- Since
conflicting decision matter referred to Division Bench - SKP Securities Ltd Infinity
Infotech Parks Ltd 2013-TIOL-38-HC-KOL-ST
139
(i) by the 6th day of the month, if the duty is deposited electronically
through internet banking; and
(ii) by the 5th day of the month, in any other case, immediately following
the calendar month in which the service is deemed to be provided as per
the rules framed in this regard:
Provided that where the assessee is a one person company whose aggregate
value of taxable services provided from one or more premises is fifty lakh rupees
or less in the previous financial year, or is an individual or proprietary firm or
partnership firm or Hindu Undivided Family214assessee is an individual or
proprietary firm or partnership firm, the service tax shall be paid to the
credit of the Central Government by the 6th day of the month if the duty is
deposited electronically through internet banking, or, in any other case, the 5th
day of the month, as the case may be, immediately following the quarter in
which the service is deemed to be provided as per the rules framed in this
regard:
Provided further that the service tax on the service deemed to be provided in the
month of March, or the quarter ending in March, as the case may be, shall be
paid to the credit of the Central Government by the 31st day of March of the
calendar year.
Provided also that
“in case of such individuals, partnership firms and one person companies
whose215in case of individuals and partnership firms whose aggregate value of
taxable services provided from one or more premises is fifty lakh rupees or less
in the previous financial year, the service provider shall have the option to
pay tax on taxable services provided or agreed to be to be provided by him up
to a total of rupees fifty lakhs in the current financial year, by the dates
specified in this sub-rule with respect to the month or quarter, as the case may
be, in which payment is received
(1A)Without prejudice to the provisions contained in sub-rule (1), every person
liable to pay service tax, may, on his own volition, pay an amount as service
tax in advance, to the credit of the Central Government and adjust the
214 Substitued vide Notification No. 19/2016-ST w.e.f. 01.04.2016
215 Substituted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
140
amount so paid against the service tax which he is liable to pay for the
subsequent period:
Provided that the assessee shall,-
(i) intimate the details of the amount of service tax paid in advance, to the
jurisdictional Superintendent of Central Excise within a period of fifteen days
from the date of such payment; and
(ii) indicate the details of the advance payment made, and its adjustment, if any
in the subsequent return to be filed under section 70 of the Act.
(2) Every assessee shall electronically pay the service tax payable by him,
through internet banking:
Provided that the Assistant Commissioner or the Deputy Commissioner of
Central Excise, as the case may be, having jurisdiction, may for reasons to
be recorded in writing, allow the assessee to deposit the service tax by any
mode other than internet banking.216
(2A) For the purpose this rule, if the assessee deposits the service tax by
cheque, the date of presentation of cheque to the bank designated by the
Central Board of Excise and Customs for this purpose shall be deemed to be
the date on which service tax has been paid subject to realization of that
cheque.
(3) Where an assessee has issued an invoice, or received any payment, against
a service to be provided which is not so provided by him either wholly or
partially for any reason or where the amount of invoice is renegotiated due
to deficient provision of service, or any terms contained in the contract, the
assessee may take credit of such excess service tax paid by him, if the
assessee,-
(a) has refunded the payment or part thereof, so received for the service
provided to the person from whom it was received; or
(b) has issued a credit note for the value of the service not so provided to
the person to whom such an invoice had been issued.;
216 Substituted from 1 October 2014 vide Not. No. 9/2014-ST
141
(4) Where an assessee is, for any reason, unable to correctly estimate, on
the date of deposit, the actual amount payable for any particular month or
quarter, as the case may be, he may make a request in writing to the
Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, giving reasons for payment of service
tax on provisional basis and the Assistant Commissioner of Central Excise or
the Deputy Commissioner of Central Excise, as the case may be, on receipt
of such request, may allow payment of service tax on provisional basis on
such value of taxable service as may be specified by him and the provisions
of the Central Excise Rules, 2002217Central Excise (No. 2) Rules, 2001,
relating to provisional assessment except so far as they relate to execution
of bond, shall, so far as may be, apply to such assessment.
(4A)Notwithstanding anything contained in sub-rule (4), where an assessee has
paid to the credit of Central Government any amount in excess of the
amount required to be paid towards service tax liability for a month or
quarter, as the case may be, the assessee may adjust such excess amount
paid by him against his service tax liability for the succeeding month or
quarter, as the case may be.
(4B) The adjustment of excess amount paid, under sub-rule (4A), shall be
subject to the condition that the excess amount paid is on account of
reasons not involving interpretation of law, taxability, valuation or
applicability of any exemption notification.
(4C) Notwithstanding anything contained in sub-rules (4), (4A) and (4B), where
the person liable to pay service tax in respect of services of renting of
immovable property has paid to the credit of Central Government any
amount in excess of the amount required to be paid towards service tax
liability for a month or quarter, as the case may be, on account of non-
availment of deduction of property tax paid in terms of notification No.
29/2012-Service Tax, dated the 20th June, 2012, from the gross amount
charged for renting of the immovable property for the said period at the time
of payment of service tax, the assessee may adjust such excess amount paid
by him against his service tax liability within one year from the date of
payment of such property tax and the details of such adjustment shall be
217 Substituted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
142
intimated to the Superintendent of Central Excise having jurisdiction over the
service provider within a period of fifteen days from the date of such
adjustment.”;
(5) Where an assessee under sub-rule (4) requests for a provisional
assessment he shall file a statement giving details of the difference
between the service tax deposited and the service tax liable to be paid for
each month in a memorandum in Form ST-3A accompanying the quarterly or
half - yearly return, as the case may be.
(6) Where the assessee submits a memorandum in Form ST-3A under sub-rule
(5), it shall be lawful for the Assistant Commissioner of Central Excise or the
Deputy Commissioner of Central Excise, as the case may be, to complete the
assessment, wherever he deems it necessary, after calling such further
documents or records as he may consider necessary and proper in the
circumstances of the case.
Explanation. - For the purposes of this rule and rule 7, “Form G.A.R.-7” means a
memorandum or challan referred to in rule 26 of the Central Government
Account (Receipts and Payments) Rules, 1983.
218(7) The person liable for paying the service tax in relation of booking of
tickets for travel by airby an air travel agent, shall have the option, to pay
an amount calculated at the rate of 0.7% 219of the basic fare in the case
of domestic bookings, and at the rate of 1.4%220 of the basic fare in the
case of international bookings, of passage for travel by air, during any
calendar month or quarter, as the case may be, towards the discharge of his
service tax liability instead of paying service tax at the rate specified in
section 66B of Chapter V of the Act and the option, once exercised, shall
apply uniformly in respect of all the bookings of passage for travel by air
made by him and shall not be changed during a financial year under any
circumstances.
Explanation. - For the purposes of this sub-rule, the expression “basic fare”
means that part of the air fare on which commission is normally paid to the air
travel agent by the airline.
218 Deleted w.e.f 14.05.2015
219 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
220 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
143
(7A) An insurer carrying on life insurance business shall have the option to
pay tax:
(i) on the gross premium charged from a policy holder reduced by the amount
allocated for investment, or savings on behalf of policy holder, if such
amount is intimated to the policy holder at the time of providing of service;
(ia) in case of single premium annuity policies other than (i) above, 1.4 per cent.
of the single premium charged from the policy holder221
(ii) in all other cases, 3.5 per cent222 of the premium charged from policy holder
in the first year and 1.75 per cent.223 of the premium charged from policy
holder in the subsequent years:
towards the discharge of his service tax liability instead of paying service tax at
the rate specified in section 66B of Chapter V of the said Act.
Provided that such option shall not be available in cases where the entire
premium paid by the policy holder is only towards risk cover in life insurance.
(7B) The person liable to pay service tax in relation to purchase or sale of
foreign currency, including money changing, shall have the option to
pay an amount calculated at the following rate towards discharge of his
service tax liability instead of paying service tax at the rate specified in
section 66B of Chapter V of the Act, namely:
(a) 0.14 per cent224 of the gross amount of currency exchanged for an amount
upto rupees 100,000, subject to the minimum amount of rupees 35225; and
(b) rupees 140 and 0.07226 percent. of the gross amount of currency
exchanged for an amount of rupees exceeding 100,000 and upto rupees
10,00,000; and
(c) rupees 770 and 0.014227 percent. of the gross amount of currency
exchanged for an amount of rupees exceeding 10,00,000, subject to
maximum amount of rupees 7000:
221 Inserted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
222 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
223 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
224 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
225 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
226 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
144
Provided that the person providing the service shall exercise such option for the
financial year and such option shall not be withdrawn during the remaining part
of that financial year.
(7C)The distributor or selling agent, liable to pay service tax for the taxable
service of promotion, marketing, organising or in any other manner assisting
in organising lottery, shall have the option to pay an amount at the rate
specified in column (2) of the Table given below, subject to the conditions
specified in the corresponding entry in column (3) of the said Table, instead
of paying service tax at the rate specified in section 66B of Chapter V of the
said Act:
Sl. No. Rate Condition
1 2 3
1
Rs 8200 on every Rs 10 lakh (or part
of Rs 10 lakh) of aggregate face value
of lottery tickets printed by the
organising State for a draw
If the lottery or lottery scheme is
one where the guaranteed prize
payout is more than 80%
2
Rs 12800 on every Rs 10 lakh (or part
of Rs 10 lakh) of aggregate face value
of lottery tickets printed by the
organising State for a draw228
If the lottery or lottery scheme is
one where the guaranteed prize
payout is less than 80%
Provided that in case of online lottery, the aggregate face value of lottery tickets
for the purpose of this sub-rule shall be taken as the aggregate value of tickets
sold, and service tax shall be calculated in the manner specified in the said
Table.
Provided further that the distributor or selling agent shall exercise such option
within a period of one month of the beginning of each financial year and such
option shall not be withdrawn during the remaining part of the financial year.
Provided also that the distributor or selling agent shall exercise such option for
financial year 2010-11, within a period of one month of the publication of this
sub-rule in the Official Gazette or, in the case of new service provider, within one
month of providing of such serviceand such option shall not be withdrawn during
the remaining part of that financial year.
227 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
228 Amended vide Not. No. 5/2015-ST w.e.f. 01.06.2015
145
Explanation.- For the purpose of this sub-rule-
229(ii) “draw” shall have the meaning assigned to it in clause (d) of the rule 2 of
the Lottery (Regulation) Rules, 2010 notified by the Government of India in
the Ministry of Home Affairs published in the Gazette of India, Part-II,
Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April, 2010.
(iii) “online lottery” shall have the meaning assigned to it in clause (e) of the
rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of
India in the Ministry of Home Affairs published in the Gazette of India, Part-
II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April,
2010.
(iv) “organising state” shall have the meaning assigned to it in clause (f) of the
rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of
India in the Ministry of Home Affairs published in the Gazette of India, Part-
II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April,
2010.
6A. Export of services230.-
(1) The provision of any service provided or agreed to be provided shall be
treated as export of service when,-
(a) the provider of service is located in the taxable territory ,
(b) the recipient of service is located outside India,
(c) the service is not a service specified in the section 66D of the Act,
(d) the place of provision of the service is outside India,
(e) the payment for such service has been received231 by the provider of
service in convertible foreign exchange, and
(f) the provider of service and recipient of service are not merely
establishments of a distinct person in accordance with item (b) of
Explanation 2 of clause (44) of section 65B of the Act
229 Deleted w,e,f 01.06.2015
230 All the six conditions (i.e. a to f) should be cumulatively satisfied.
231 Non-receipt of consideration within prescribed RBI time limit may attract provision of
Rule 6 (refer Rule 6 (8) of CENVAT Credit Rules, 2004 for details)
146
(2) Where any service is exported, the Central Government may, by notification,
grant rebate of service tax or duty paid on input services or inputs, as the
case may be, used in providing such service and the rebate shall be allowed
subject to such safeguards, conditions and limitations, as may be specified,
by the Central Government, by notification.
7. RETURNS
(1) Every assessee shall submit a half-yearly return in Form ‘ST-3’ or ‘ST-3A’, as
the case may be, along with a copy of the Form G.A.R.-7, in triplicate for the
months covered in the half-yearly return.
(2) Every assessee shall submit the half - yearly return by the 25th of the month
following the particular half-year.
Provided that the Form ‘ST-3’ required to be submitted by the 25th day of
October, 2012 shall cover the period between 1st April to 30th June, 2012
only.232
Provided further that the Form ST- 3 for the period between the 1st day of July 2012to the 30th day of
September 2012, shall be submitted by the 25th day of March, 2013233
(3) Every assessee shall submit the half yearly return electronically
(3A) Notwithstanding anything contained in sub-rule (1), every assessee shall
submit an annual return for the financial year to which the return relates, in
such form and manner as may be specified in the notification in the Official
Gazette by the Central Board of Excise and Customs, by the 30th day of
November of the succeeding financial year234
(3B) The Central Government may, subject to such conditions or limitations,
specify by notification an assesse or class of assesses who may not be required
to submit the annual return referred to in sub-rule(3A)235
(4) The Central Board of Excise and Customs may, by an order extend the
period referred to in sub-rules (2) and (3A)236sub-rule (2) by such period as
232 Not. No. 47/2012-ST dated 28 September 2012
233 Inserted Vide Not. No. 1/2013-ST dated 22 February 2013
234 Inserted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
235 Inserted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
236 Substituted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
147
deemed necessary under circumstances of special nature to be specified in
such order.
7A. RETURNS
IN CASE OF TAXABLE SERVICE PROVIDED BY GOODS TRANSPORT
OPERATORS AND CLEARING AND FORWARDING AGENTS
Notwithstanding anything contained in rule 7, an assessee, in case of service
provided by -
(a) goods transport operator for the period commencing on and from the 16th
day of November, 1997 to 2nd day of June, 1998; and
(b) clearing and forwarding agents for the period commencing on and from the
16th day of July, 1997 to 16th day of October, 1998,
shall furnish a return within a period of six months from the 13th day of May,
2003, in Form ST-3B alongwith copy of Form G.A.R.-7 in triplicate, failing which
the interest and penal consequences as provided in the Act shall follow.
7B. REVISION OF RETURN
(1) An assessee may submit a revised return, in Form ST-3, in triplicate, to
correct a mistake or omission, within a period of ninety days from the date of
submission of the return under rule 7.
(1)(2) An assessee who has filed the annual return referred to in sub-rule (3A) of
rule 7 by the due date may submit a revised return within a period of one
month from the date of submission of the said annual return237
Explanation - Where an assessee submits a revised return, the ‘relevant date’ for
the purpose of recovery of service tax, if any, under section 73 of the Act shall
be the date of submission of such revised return.
7C. AMOUNT TO BE PAID FOR DELAY IN FURNISHING THE
PRESCRIBED RETURN
(1) Where the return prescribed under rule 7 is furnished after the date
prescribed for submission of such return, the person liable to furnish the said
return shall pay to the credit of the Central Government, for the period of delay
of-
237 Inserted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
148
(i) fifteen days from the date prescribed for submission of such return, an
amount of five hundred rupees;
(ii) beyond fifteen days but not later than thirty days from the date prescribed
for submission of such return, an amount of one thousand rupees; and
(iii) beyond thirty days from the date prescribed for submission of such return
an amount of one thousand rupees plus one hundred rupees for every
day from the thirty first day till the date of furnishing the said return238:
Provided that the total amount payable in terms of this rule, for delayed
submission of return, shall not exceed the amount specified in section 70 of
the Act:
Provided further that where the assessee has paid the amount as prescribed
under this rule for delayed submission of return, the proceedings, if any, in
respect of such delayed submission of return shall be deemed to be concluded:
Provided also that where the gross amount of service tax payable is nil, the
Central Excise Officer may on being satisfied that there is sufficient reason for
not filing the return, reduce or waive the penalty239.
Explanation - It is hereby declared that any pending proceedings under section
77 for delayed submission or non-submission of return that has been initiated
before the date on which the Finance Bill, 2007 receives the assent of the
President, shall also be deemed to be concluded if the amount specified for delay
in furnishing the return is paid by the assessee within sixty days from the date
of assent to the said Finance Bill.
(2) Where the annual return referred to in sub-rule (3A) of rule 7 is filed by the
assessee after the due date, the assessee shall pay to the credit of the Central
Government, an amount calculated at the rate of one hundred rupees per day
for the period of delay in filing of such return, subject to a maximum of twenty
thousand rupees240
238 If the delay in filing returns crosses 220 days (approx. 7.5 months) then the
maximum penalty of Rs 20,000 is attracted (i.e. Rs 1,000 for first 30 days and Rs 100
per day for next 190 days)
239 No penalty for delayed NIL return– Suchak Mrkt. Pvt Ltd 2013-TIOL-63-
CESTAT-KOL, AMRAPALI BARTER PVT. LTD. 2013 (32) S.T.R. 456 (Tri. -
Kolkata)
240 Inserted vide Notification No. 19/2016-ST w.e.f. 01.04.2016
149
8. FORM OF APPEALS TO COMMISSIONER OF CENTRAL EXCISE
(APPEALS)
(1) An appeal under section 85 of the Act to the Commissioner of Central Excise
(Appeals) shall be in Form ST-4.
(2) The appeal shall be filed in duplicate and shall be accompanied by a copy of
order appealed against.
9. FORM OF APPEALS TO APPELLATE TRIBUNAL
(1) An appeal under sub-section (1) of section 86 of the Act to the Appellate
Tribunal shall be made in Form ST-5 in quadruplicate and shall be
accompanied by a copy of the Order appealed against (one of which shall be a
certified copy).
(2) An appeal under sub-section (2) of section 86 of the Act to the Appellate
Tribunal shall be made in Form ST-7 in quadruplicate and shall be
accompanied by a copy of the order of the Commissioner of Central Excise
(one of which shall be a certified copy) and a copy of the order passed by the
Central Board of Excise and Customs directing the Commissioner of Central
Excise to apply to the Appellate Tribunal.
(2A) An appeal under sub-section (2A) of section 86 of the Act to the Appellate
Tribunal shall be made in Form ST-7 in quadruplicate and shall be
accompanied by a copy of the order of the Commissioner of Central Excise
(Appeals) (one of which shall be a certified copy) and a copy of the order
passed by the Commissioner of Central Excise directing the Assistant
Commissioner of Central Excise or as the case may be, the Deputy
Commissioner of Central Excise to apply to the Appellate Tribunal; and
(3) A Memorandum of cross-objections under sub-section (4) of section 86 of
the Act, shall be made in Form ST-6 in quadruplicate.
10. Procedure and facilities for large taxpayer
Notwithstanding anything contained in these rules, the following shall apply to a
large taxpayer, -
(1) A large taxpayer shall submit the returns, as prescribed under these rules,
for each of the registered premises.
150
Explanation. - A large taxpayer who has obtained a centralized registration
under sub-rule (2) of Rule 4, shall submit a consolidated return for all such
premises.
(2) A large taxpayer, on demand, may be required to make available the
financial, stores and CENVAT credit records in electronic media, such as,
compact disc or tape for the purposes of carrying out any scrutiny and
verification, as may be necessary.
(3) A large taxpayer may, with intimation of at least thirty days in advance, opt
out to be a large taxpayer from the first day of the following financial year.
(4) Any notice issued but not adjudged by any of the Central Excise Officer
administering the Act or rules made thereunder immediately before the date
of grant of acceptance by the Chief Commissioner of Central Excise, Large
Taxpayer Unit, shall be deemed to have been issued by Central Excise Officers
of the said unit.
(5) Provisions of these rules, insofar as they are not inconsistent with the
provisions of this rule shall mutatis mutandis apply in case of a large
taxpayer.
151
7. SERVICE TAX (DETERMINATION OF VALUE) RULES, 2006
[Notification No. 12/2006-S.T., dated 19-4-2006]
In exercise of the powers conferred by clause (aa) of sub-section (2) of section
94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes
the following rules, namely :-
1. Short title and commencement. —
(1) These rules may be called the Service Tax (Determination of Value) Rules,
2006.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. Definitions
In these rules, unless the context otherwise requires, -
(a) “Act” means the Finance Act, 1994 (32 of 1994);
(b) “section” means the section of the Act;
(c) “value” shall have the meaning assigned to it in section 67;
(d) words and expressions used in these rules and not defined but defined
in the Act shall have the meaning respectively assigned to them in the
Act.
2A. Determination of value of service portion in the execution of a
works contract241
- Subject to the provisions of section 67, the value of service portion in the
execution of a works contract , referred to in clause (h) of section 66E of the
Act, shall be determined in the following manner, namely:-
241 As per Rule 2A two methodology wherein the ‘service portion’ would be as under:
Option Value
I Value = ‘Gross amount charged’ - Value of goods
II Value = 40% of ‘Total amount charged’ for Original works OR=
60% of ‘Total amount charged’ for Other works=
OR=
70B=of ‘Total amount charged’ for repairs etc of goods=
=
152
(i) Value of service portion in the execution of a works contract shall be
equivalent to the gross amount charged for the works contract less the value
of property in goods transferred in the execution of the said works contract.
Explanation.- For the purposes of this clause,-
(a) gross amount charged for the works contract shall not include value added
tax or sales tax, as the case may be, paid or payable, if any, on transfer of
property in goods involved in the execution of the said works contract;
(b) value of works contract service shall include, -
(i) labour charges for execution of the works;
(ii) amount paid to a sub-contractor for labour and services;
(iii) charges for planning, designing and architect’s fees;
(iv) charges for obtaining on hire or otherwise, machinery and tools used
for the execution of the works contract;
(v) cost of consumables such as water, electricity, fuel used in the
execution of the works contract;
(vi) cost of establishment of the contractor relatable to supply of labour
and services;
(vii) other similar expenses relatable to supply of labour and services; and
(viii) profit earned by the service provider relatable to supply of labour and
services;
(c) Where value added tax or sales tax has been paid or payable on the
actual value of property in goods transferred in the execution of the
works contract, then, such value adopted for the purposes of payment
of value added tax or sales tax, shall be taken as the value of property
in goods transferred in the execution of the said works contract for
determination of the value of service portion in the execution of works
contract under this clause.
(ii) Where the value has not been determined under clause (i), the person
liable to pay tax on the service portion involved in the execution of the
works contract shall determine the service tax payable in the following
manner, namely:-
153
(A) in case of works contracts entered into for execution of original works,
service tax shall be payable on forty per cent. of the total amount
charged for the works contract;
(B) in case of works contract, not covered under sub-clause (A), including works contract
entered into for,-
(i) maintenance or repair or reconditioning or restoration or servicing of any goods; or
(ii) maintenance or repair or completion and finishing services such as glazing or plastering
or floor and wall tiling or installation of electrical fittings of immovable property,
service tax shall be payable on seventy per cent. of the total amount charged for the works
contract242.
;
Explanation 1.- For the purposes of this rule,-
(a) “original works” means-
(i) all new constructions;
(ii) all types of additions and alterations to abandoned or damaged
structures on land that are required to make them workable;
(iii) erection, commissioning or installation of plant, machinery or
equipment or structures, whether pre-fabricated or otherwise;
243(b) “total amount” means the sum total of the gross amount charged for
the works contract and the fair market value of all goods and services
supplied in or in relation to the execution of the works contract, whether
242 WEF 1 October 2014 vide Not. No. 11/2014-ST
243 The Larger Bench in the case of Bhayana Builder Pvt. Ltd 2013-TIOL-1331-CESTAT-
Del-LB in the context of erstwhile Not. No. 15/2004 (as amended from time to time)
held that:
(a) The value of goods and materials supplied free of cost by a service recipient to the
provider of the taxable construction service, being neither monetary or non-monetary
consideration paid by or flowing from the service recipient, accruing to the benefit of
service provider, would be outside the taxable value or the gross amount charged,
within the meaning of the later expression in Section 67 of the Finance Act, 1994; and
(b) Value of free supplies by service recipient do not comprise the gross amount charged
under Notification No. 15/2004-ST, including the Explanation thereto as introduced by
Notification No. 4/2005-ST.
G D Builders [2013-TIOL-908-HC-DEL-ST] - Service Tax on works contract/
construction service - Abatement - Notification No. 1/2006 - Abatement notifications
optional, but once opted, have to be complied with fully.
154
or not supplied under the same contract or any other contract, after
deducting-
(i) the amount charged for such goods or services, if any; and
(ii) the value added tax or sales tax, if any, levied thereon:
Provided that the fair market value of goods and services so supplied may be
determined in accordance with the generally accepted accounting principles.
Explanation 2.--For the removal of doubts, it is clarified that the provider of
taxable service shall not take CENVAT credit of duties or cess paid on any inputs,
used in or in relation to the said works contract, under the provisions of CENVAT
Credit Rules, 2004.”.
2B. Determination of value of service in relation to money
changing
Subject to the provisions of section 67, the value of taxable service provided for
the services, so far as it pertains to purchase or sale of foreign currency,
including money changing, shall be determined by the service provider in the
following manner :-
For a currency, when exchanged from, or to, Indian Rupees (INR), the value
shall be equal the difference in the buying rate or the selling rate, as the case
may be, and the Reserve Bank of India (RBI) [reference rate for that currency at
that time], multiplied by the total units of currency.
Example I : [US $ 1000] are sold by a customer at the rate of Rupees 45 per US
$. RBI reference rate for US $ is Rupees 45.50 for that day. The
taxable value shall be Rupees 500.
Example II : INR 70000 is changed into Great Britain Pound (GBP) and the
exchange rate offered is Rupees 70, thereby giving GBP 1000. RBI
reference rate for that day for GBP is Rupees 69. The taxable value
shall be Rupees 1000.
Provided that in case where the RBI reference rate for a currency is not
available, the value shall be 1% of the gross amount of Indian Rupees provided
or received, by the person changing the money:
155
Provided further that in case where neither of the currencies exchanged is
Indian Rupee, the value shall be equal to 1% of the lesser of the two amounts
the person changing the money would have received by converting any of the
two currencies into Indian Rupee on that day at the reference rate provided by
RBI.
2C. Determination of value of service portion involved in
supply of food or any other article of human consumption or
any drink in a restaurant or as outdoor catering
Subject to the provisions of section 67, the value of service portion, in an
activity wherein goods being food or any other article of human consumption
or any drink (whether or not intoxicating) is supplied in any manner as a part of
the activity at a restaurant or as outdoor catering, shall be the specified
percentage of the total amount charged for such supply, in terms of the
following Table, namely:-
Table
Sl.
No.
Description Percentage
of the
total
amount
(1) (2) (3)
1. Service portion in an activity wherein goods, being food or any
other article of human consumption or any drink(whether or not
intoxicating) is supplied in any manner as a part of the
activity, at a restaurant
40
2. Service portion in outdoor catering wherein goods, being food or
any other article of human consumption or any drink(whether or
not intoxicating) is supplied in any manner as a part of such
outdoor catering
60
Explanation 1.- For the purposes of this rule, “total amount” means the sum
total of the gross amount charged and the fair market value of all goods and
services supplied in or in relation to the supply of food or any other article of
human consumption or any drink(whether or not intoxicating), whether or not
supplied under the same contract or any other contract, after deducting-
(i) the amount charged for such goods or services, if any; and
(ii) the value added tax or sales tax, if any, levied thereon:
156
Provided that the fair market value of goods and services so supplied may be
determined in accordance with the generally accepted accounting principles.
Explanation 2.- For the removal of doubts, it is clarified that the provider of
taxable service shall not take CENVAT credit of duties or cess paid on any goods
classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of
1986).
3. Manner of determination of value
Subject to the provisions of section 67, the value of taxable service, where such
value is not ascertainable, shall be determined by the service provider in the
following manner :-
(a) the value of such taxable service shall be equivalent to the gross
amount charged by the service provider to provide similar service to
any other person in the ordinary course of trade and the gross amount
charged is the sole consideration;
(b) where the value cannot be determined in accordance with clause (a),
the service provider shall determine the equivalent money value of
such consideration which shall, in no case be less than the cost of
provision of such taxable service.
4. Rejection of value244
(1) Nothing contained in rule 3 shall be construed as restricting or calling into
question the power of the Central Excise Officer to satisfy himself as to the
accuracy of any information furnished or document presented for valuation.
(2) Where the Central Excise Officer is satisfied that the value so determined by
the service provider is not in accordance with the provisions of the Act or
these rules, he shall issue a notice to such service provider to show cause
why the value of such taxable service for the purpose of charging service tax
should not be fixed at the amount specified in the notice.
244 Service Tax - Pre-deposit: Free Telephone Service to employees and associates -
Tribunal ordered pre-deposit of Rs . 80 Crores. Taxability doubtful for the period prior
to 23.08.2007. Pre-deposit reduced to Rs. 25 Crores. Bharti Airtel Ltd 2013-TIOL-426-
HC-DEL-ST
157
(3) The Central Excise Officer shall, after providing reasonable opportunity of
being heard, determine the value of such taxable service for the purpose of
charging service tax in accordance with the provisions of the Act and these
rules.
5. Inclusion in or exclusion245
from value of certain expenditure or costs
(1) Where any expenditure or costs are incurred by the service provider in the
course of providing taxable service, all such expenditure or costs shall be
treated as consideration for the taxable service provided or to be provided
and shall be included in the value for the purpose of charging service tax on
the said service.
Explanation.- For the removal of doubts, it is hereby clarified that for the value
of the telecommunication service shall be the gross amount paid by the person
to whom telecommunication service is actually provided,.
(2) Subject to the provisions of sub-rule (1), the expenditure or costs incurred
by the service provider as a pure agent of the recipient of service, shall be
excluded from the value of the taxable service if all the following conditions
are satisfied, namely :-
(i) the service provider acts as a pure agent of the recipient of service
when he makes payment to third party for the goods or services
procured;
(ii) the recipient of service receives and uses the goods or services so
procured by the service provider in his capacity as pure agent of the
recipient of service;
(iii) the recipient of service is liable to make payment to the third party;
(iv) the recipient of service authorises the service provider to make
payment on his behalf;
(v) the recipient of service knows that the goods and services for which
payment has been made by the service provider shall be provided by
the third party;
245 If a receipt is for reimbursing the expenditure incurred for the purpose, the mere act
of reimbursement, per se, would not justify the contention of the Revenue that the
same, having the character of the remuneration or commission, deserves to be
included in the sum amount of remuneration / Commission – Sangmitra Service
Agency 2013-TIOL-606-HC-MAD-ST
158
(vi) the payment made by the service provider on behalf of the recipient of
service has been separately indicated in the invoice issued by the
service provider to the recipient of service;
(vii) the service provider recovers from the recipient of service only such
amount as has been paid by him to the third party; and
(viii) the goods or services procured by the service provider from the third
party as a pure agent of the recipient of service are in addition to the
services he provides on his own account.
Explanation 1. - For the purposes of sub-rule (2), “pure agent” means a person
who -
(a) enters into a contractual agreement with the recipient of service to act
as his pure agent to incur expenditure or costs in the course of
providing taxable service;
(b) neither intends to hold nor holds any title to the goods or services so
procured or provided as pure agent of the recipient of service;
(c) does not use such goods or services so procured; and
(d) receives only the actual amount incurred to procure such goods or
services.
Explanation 2. - For the removal of doubts it is clarified that the value of the
taxable service is the total amount of consideration consisting of all components
of the taxable service and it is immaterial that the details of individual
components of the total consideration is indicated separately in the invoice.
Illustration 1. - X contracts with Y, a real estate agent to sell his house and
thereupon Y gives an advertisement in television. Y billed X including charges for
Television advertisement and paid service tax on the total consideration billed.
In such a case, consideration for the service provided is what X pays to Y. Y does
not act as an agent behalf of X when obtaining the television advertisement even
if the cost of television advertisement is mentioned separately in the invoice
issued by X. Advertising service is an input service for the estate agent in order
to enable or facilitate him to perform his services as an estate agent.
Illustration 2. - In the course of providing a taxable service, a service provider
incurs costs such as travelling expenses, postage, telephone, etc., and may
indicate these items separately on the invoice issued to the recipient of service.
159
In such a case, the service provider is not acting as an agent of the recipient of
service but procures such inputs or input service on his own account for
providing the taxable service. Such expenses do not become reimbursable
expenditure merely because they are indicated separately in the invoice issued
by the service provider to the recipient of service.
Illustration 3. - A contracts with B, an architect for building a house. During
the course of providing the taxable service, B incurs expenses such as telephone
charges, air travel tickets, hotel accommodation, etc., to enable him to
effectively perform the provision of services to A. In such a case, in whatever
form B recovers such expenditure from A, whether as a separately itemised
expense or as part of an inclusive overall fee, service tax is payable on the total
amount charged by B. Value of the taxable service for charging service tax is
what A pays to B.
Illustration 4. - Company X provides a taxable service of rent-a-cab by
providing chauffeur-driven cars for overseas visitors. The chauffeur is given a
lump sum amount to cover his food and overnight accommodation and any other
incidental expenses such as parking fees by the Company X during the tour. At
the end of the tour, the chauffeur returns the balance of the amount with a
statement of his expenses and the relevant bills. Company X charges these
amounts from the recipients of service. The cost incurred by the chauffeur and
billed to the recipient of service constitutes part of gross amount charged for the
provision of services by the Company X.
6. Cases in which the commission, costs, etc., will be included or
excluded
(1) Subject to the provisions of section 67, the value of the taxable services
shall include‚ -
(i) the commission or brokerage charged by a broker on the sale or
purchase of securities including the commission or brokerage paid by
the stock-broker to any sub-broker;
(ii) the adjustments made by the telegraph authority from any deposits
made by the subscriber at the time of application for telephone
connection or pager or facsimile or telegraph or telex or for leased
circuit;
(iii) the amount of premium charged by the insurer from the policy holder;
160
(iv) the commission received by the air travel agent from the airline;
(v) the commission, fee or any other sum received by an actuary, or
intermediary or insurance intermediary or insurance agent from the
insurer;
(vi) the reimbursement received by the authorised service station, from
manufacturer for carrying out any service of any motor car, light motor
vehicle or two wheeled motor vehicle manufactured by such
manufacturer;
(vii) the commission or any amount received by the rail travel agent from
the Railways or the customer;
(viii) the remuneration or commission, by whatever name called, paid to
such agent by the client engaging such agent for the services provided
by a clearing and forwarding agent to a client rendering services of
clearing and forwarding operations in any manner;
(ix) the commission, fee or any other sum, by whatever name called, paid
to such agent by the insurer appointing such agent in relation to
insurance auxiliary services provided by an insurance agent: and.
(x) the amount realised as demurrage or by any other name whatever
called for the provision of a service beyond the period originally
contracted or in any other manner relatable to the provision of service.
(2) Subject to the provisions contained in sub-rule (1), the value of any taxable
service, as the case may be, does not include -
(i) initial deposit made by the subscriber at the time of application for
telephone connection or pager or facsimile (FAX) or telegraph or telex
or for leased circuit;
(ii) the airfare collected by air travel agent in respect of service provided
by him;
(iii) the rail fare collected by [rail travel agent] in respect of service
provided by him; and
(iv) interest on delayed payment of any consideration for the provision
of services or sale of property, whether moveable or immoveable
(v) the taxes levied by any Government on any passenger travelling by
air, if shown separately on the ticket, or the invoice for such ticket,
issued to the passenger: and]
161
vi) accidental damages due to unforeseen actions not
relatable to the provision of service; and
(vii) subsidies and grants disbursed by the Government, not
directly affecting the value of service
162
8. POINT OF TAXATION RULES, 2011
[Notification No. 18/2011-S.T., dated 1-3-2011 as amended]
In exercise of the powers conferred under sub-section (2) of section 67A
and246 clause (a) and clause (hhh) of subsection (2) of section 94 of the Finance
Act, 1994. The Central Government has notified the following rules for the
purpose of collection of service tax and determination of rate of service tax,
namely,-
1. Short title and commencement
(1) These rules shall be called the Point of Taxation Rules, 2011.
(2) They shall come into force on the 1st day of April, 2011.
2. Definitions
In these rules, unless the context otherwise requires,-
(a) “Act” means the Finance Act, 1994 (32 of 1994);
(ba) “change in effective rate of tax” shall include a change in the portion
of value on which tax is payable in terms of a notification issued in the
Official Gazette under the provisions of the Act, or rules made
thereunder;
(c) “continuous supply of service” means any service which is provided, or
to be provided continuously or on recurrent basis, under a contract, for
a period exceeding three months with the obligation for payment
periodically or from time to time, or where the Central Government, by
a notification in the Official Gazette, prescribes provision of a particular
service to be a continuous supply of service, whether or not subject to
any condition;
(d) “invoice” means the invoice referred to in rule 4A of the Service Tax
Rules, 1994 and shall include any document as referred to in the said
rule;
(e) “point of taxation” means the point in time when a service shall be
deemed to have been provided;
246 Inserted vide Notification No. 10/2016-ST w.e.f. enactment of Finance Bill, 2016
163
2A. Date of payment
For the purposes of these rules, “date of payment” shall be the earlier of
the dates on which the payment is entered in the books of accounts or is
credited to the bank account of the person liable to pay tax:
Provided that —
(A) the date of payment shall be the date of credit in the bank account
when —
(i) there is a change in effective rate of tax or when a service is taxed
for the first time during the period between such entry in books of
accounts and its credit in the bank account; and
(ii) the credit in the bank account is after four working days from the
date when there is change in effective rate of tax or a service is
taxed for the first time; and
(iii) the payment is made by way of an instrument which is credited to
a bank account,
(B) if any rule requires determination of the time or date of payment
received, the expression “date of payment” shall be construed to
mean such date on which the payment is received;
3. Determination of point of taxation
For the purposes of these rules, unless otherwise provided, ‘point of taxation’
shall be,-
(a) the time when the invoice for the service provided or agreed to be
provided is issued :
“Provided that where the invoice is not issued within the time period
specified in rule 4A of the Service Tax Rules,1994, the point of
taxation shall be the date of completion of provision of the service”;
(b) in a case, where the person providing the service, receives a payment
before the time specified in clause (a), the time, when he receives
such payment, to the extent of such payment.
“Provided that for the purposes of clauses (a) and (b), —
164
(i) in case of continuous supply of service where the provision of the
whole or part of the service is determined periodically on the
completion of an event in terms of a contract, which requires the
receiver of service to make any payment to service provider, the
date of completion of each such event as specified in the contract
shall be deemed to be the date of completion of provision of
service;
(ii) wherever the provider of taxable service receives a payment up to
rupees one thousand in excess of the amount indicated in the
invoice, the point of taxation to the extent of such excess amount,
at the option of the provider of taxable service, shall be determined
in accordance with the provisions of clause (a).”
Explanation — For the purpose of this rule, wherever any advance by whatever
name known, is received by the service provider towards the provision of
taxable service, the point of taxation shall be the date of receipt of each such
advance.
4. Determination of point of taxation in case of change in effective rate
of tax
Notwithstanding anything contained in rule 3, the point of taxation in cases
where there is a change in effective rate of tax in respect of a service, shall be
determined in the following manner, namely :-
(a) in case a taxable service has been provided before the [change in
effective rate of tax,-
(i) where the invoice for the same has been issued and the
payment received after the [change in effective rate of tax],
the point of taxation shall be date of payment or issuing of
invoice, whichever is earlier; or
(ii) where the invoice has also been issued prior to [change in
effective rate of tax] but the payment is received after the
change in effective rate of tax, the point of taxation shall be
the date of issuing of invoice; or
(iii) where the payment is also received before the [change in
165
effective rate of tax], but the invoice for the same has been
issued after the [change in effective rate of tax], the point of
taxation shall be the date of payment;
(b) in case a taxable service has been provided after the [change in
effective rate of tax,-
(i) where the payment for the invoice is also made after the change
in effective rate of tax but the invoice has been issued prior to
the change in effective rate of tax, the point of taxation shall
be the date of payment; or
(ii) where the invoice has been issued and the payment for the
invoice received before the [change in effective rate of tax],
the point of taxation shall be the date of receipt of payment or
date of issuance of invoice, whichever is earlier; or
(iii) where the invoice has also been raised after the [change in
effective rate of tax] but the payment has been received
before the [change in effective rate of tax], the point of
taxation shall be date of issuing of invoice.
5. Payment of tax in case of new services
Where a service is taxed for the first time, then,—
(a) no tax shall be payable to the extent the invoice has been issued and the
payment received against such invoice before such service became taxable;
(b) no tax shall be payable if the payment has been received before the service
becomes taxable and invoice has been issued within fourteen days of the
date when the service is taxed for the first time.
Explanation 1.- This rule shall apply mutatis mutandis in case of new levy on
services247
Explanation 2.- New levy or tax shall be payable on all the cases other than
specified above248
7. Determination of point of taxation in case of specified services or
persons
247 Inserted vide Notification No. 10/2016-ST w.e.f. 01.03.2016
248 Inserted vide Notification No. 10/2016-ST w.e.f. 01.03.2016
166
Notwithstanding anything contained in rule 3,4 and 8249, the point of taxation in
respect of the persons required to pay tax as recipients of service under the
rules made in this regard in respect of services notified under sub-section (2) of
section 68 of the Act, shall be the date on which payment is made:
Provided that where the payment is not made within a period of three months of the date of
invoice, the point of taxation shall be the date immediately following the said period of three
months250
Provided further that in case of “associated enterprises”, where the person
providing the service is located outside India, the point of taxation shall be the
date of debit in the books of account of the person receiving the service or date
of making the payment whichever is earlier.
8. Determination of point of taxation in case of copyrights, etc
In respect of royalties and payments pertaining to copyrights, trademarks,
designs or patents, where the whole amount of the consideration for the
provision of service is not ascertainable at the time when service was performed,
and subsequently the use or the benefit of these services by a person other than
the provider gives rise to any payment of consideration, the service shall be
treated as having been provided each time when a payment in respect of such
use or the benefit is received by the provider in respect thereof, or an invoice is
issued by the provider, whichever is earlier.
8A. Determination of point of taxation in other cases
Where the point of taxation cannot be determined as per these rules as the date
of invoice or the date of payment or both are not available, the Central Excise
officer, may, require the concerned person to produce such accounts, documents
or other evidence as he may deem necessary and after taking into account such
material and the effective rate of tax prevalent at different points of time, shall,
by an order in writing, after giving an opportunity of being heard, determine the
point of taxation to the best of his judgment.
249 WEF 1 October 2014 vide Not. No. 13/2014-ST
250 WEF 1 October 2014 vide Not. No. 13/2014-ST
167
9. Transitional Provisions
Nothing contained in [these rules] shall be applicable, -
(i) where the provision of service is completed; or
(ii) where invoices are issued
prior to the date on which these rules come into force.
Provided that services for which provision is completed on or before 30th day of
June, 2011 or where the invoices are issued upto the 30th day of June, 2011,
the point of taxation shall, at the option of the taxpayer, be the date on which
the payment is received or made as the case may be.
10. Notwithstanding anything contained in the first proviso to rule 7, if the invoice in respect of a
service, for which point of taxation is determinable under rule 7 has been issued before the 1st day
of October, 2014 but payment has not been made as on the said day, the point of taxation shall,–
(a) if payment is made within a period of six months of the date of invoice, be the date on
which payment is made
(b) if payment is not made within a period of six months of the date of invoice, be
determined as if rule 7 and this rule do not exist251
251 WEF 1 October 2014 vide Not. No. 13/2014-ST
168
9. PLACE OF PROVISION OF SERVICES RULES, 2012252
1. Short title, extent and commencement
(1) These rules may be called the Place of Provision of Services Rules, 2012.
(2) They shall come into force on 1st day of July, 2012.
2. Definitions
In these rules, unless the context otherwise requires,-
(a) “Act” means the Finance Act, 1994 (32 of 1994);
(b) “account” means an account bearing interest to the depositor, and
includes a non-resident external account and a non-resident ordinary
account;
(c) “banking company” has the meaning assigned to it in clause (a) of
section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);
(d) “continuous journey” means a journey for which a single or more than
one ticket or invoice is issued at the same time, either by one service
provider or through one agent acting on behalf of more than one service
provider, and which involves no stopover between any of the legs of the
journey for which one or more separate tickets or invoices are issued;
(e) “financial institution” has the meaning assigned to it in clause (c) of
section 45-I of the Reserve Bank of India Act,1934 (2 of 1934);
(f) ‘intermediary’ means a broker, an agent or any other person, by whatever name called,
who arranges or facilitates a provision of a service (hereinafter called the ‗main‘ service)
or a supply of goods, between two or more persons, but does not include a person who
provides the main service or supplies the goods on his account253
252 Manner of applying POPSR – First, one has to determine whether any Rule from
Rule 4 to Rule 12 is applicable? If yes, then the place of provision of service would be
determined as per that specific Rule (say for e.g. Rule 4). However, in case, Rules 4 to
12 are not applicable, then the Rule 3 (i.e. Residual rule) would be applicable, i.e. the
place of provision of service would be the place where recipient is located. Further, as
per Rule 14, in case more than one Rule is applicable, then the Rule which occurs later
shall be applied.
253 Substituted W EF 1 October 2014 vide Not. No. 14/2014-ST
169
(g) “leg of journey” means a part of the journey that begins where
passengers embark or disembark the conveyance, or where it is stopped
to allow for its servicing or refueling, and ends where it is next stopped
for any of those purposes;
(h) “location of the service provider” means-
(a). where the service provider has obtained a single registration,
whether centralized or otherwise, the premises for which such
registration has been obtained;
(b). where the service provider is not covered under sub-clause (a):
(i) the location of his business establishment; or
(ii) where the services are provided from a place other than the
business establishment, that is to say, a fixed establishment
elsewhere, the location of such establishment; or
(iii) where services are provided from more than one establishment,
whether business or fixed, the establishment most directly
concerned with the provision of the service; and
(iv) in the absence of such places, the usual place of residence of the
service provider.
(i) “location of the service receiver” means:-
(a). where the recipient of service has obtained a single registration,
whether centralized or otherwise, the premises for which such
registration has been obtained;
(b). where the recipient of service is not covered under sub-clause (a):
(i) the location of his business establishment; or
(ii) where services are used at a place other than the business
establishment, that is to say, a fixed establishment elsewhere,
the location of such establishment; or
(iii) where services are used at more than one establishment,
whether business or fixed, the establishment most directly
concerned with the use of the service; and
(iv) in the absence of such places, the usual place of residence of the
recipient of service.
Explanation:-. For the purposes of clauses (h) and (i), “usual place of
residence” in case of a body corporate means the place where it is
incorporated or otherwise legally constituted.
170
Explanation 2:-. For the purpose of clause (i), in the case of
telecommunication service, the usual place of residence shall be the billing
address.
(j) “means of transport” means any conveyance designed to transport goods
or persons from one place to another;
(k) “non-banking financial company” means-
(i) a financial institution which is a company; or
(ii) a non-banking institution which is a company and which has as its
principal business the receiving of deposits, under any scheme or
arrangement or in any other manner, or lending in any manner; or
(iii) such other non-banking institution or class of such institutions, as
the Reserve Bank of India may, with the previous approval of the
Central Government and by notification in the Official Gazette
specify;
(l) “online information and database access or retrieval services” means
providing data or information, retrievable or otherwise, to any person, in
electronic form through a computer network;
(m) “person liable to pay tax” shall mean the person liable to pay service tax
under section 68 of the Act or under sub-clause (d) of sub-rule (1) of rule
2 of the Service Tax Rules, 1994;
(n) “provided” includes the expression “to be provided”;
(o) “received” includes the expression “to be received”;
(p) “registration” means the registration under rule 4 of the Service Tax
Rules, 1994;
(q) “telecommunication service” means service of any description (including
electronic mail, voice mail, data services, audio text services, video text
services, radio paging and cellular mobile telephone services) which is
made available to users by means of any transmission or reception of
signs, signals, writing, images and sounds or intelligence of any nature,
by wire, radio, visual or other electro-magnetic means but shall not
include broadcasting services.
(r) words and expressions used in these rules and not defined, but defined
in the Act, shall have the meanings respectively assigned to them in the
Act.
171
3. Place of provision generally254
The place of provision of a service shall be the location of the recipient of
service:
Provided that in case the location of the service receiver is not available in the
ordinary course of business, the place of provision shall be the location of the
provider of service.
4. Place of provision of performance based services
The place of provision of following services shall be the location where the
services are actually performed, namely:-
(a) services provided in respect of goods that are required to be made
physically available by the recipient of service to the provider of service,
or to a person acting on behalf of the provider of service, in order to
provide the service255:
Provided that when such services are provided from a remote location by
way of electronic means the place of provision shall be the location where
goods are situated at the time of provision of service:
Provided further that this clause shall not apply in the case of a service provided in
respect of goods that are temporarily imported into India for repairs and are exported after
the repairs without being put to any use in the taxable territory, other than that which is
required for such repair256
(b) services provided to an individual, represented either as the recipient of
service or a person acting on behalf of the recipient, which require the
physical presence of the receiver or the person acting on behalf of the
receiver, with the provider for the provision of the service.
254 Advance Ruling - Marketing and sales support in India to a firm in China and USA is
covered under Rule 3 and amounts to export of services [2013-TIOL-03-ARA-ST]
255 Examples of such services are repair, reconditioning, or any other work on goods (not
amounting to manufacture), storage and warehousing, courier service, cargo handling
service (loading, unloading, packing or unpacking of cargo), technical testing/
inspection/ certification/ analysis of goods, dry cleaning etc. – Para 5.4.1 of Education
Guide
256 Substituted W EF 1 October 2014 vide Not. No. 14/2014-ST
172
5. Place of provision of services relating to immovable property
The place of provision of services provided directly in relation to an immovable
property, including services provided in this regard by experts and estate
agents, provision of hotel accommodation by a hotel, inn, guest house, club or
campsite, by whatever, name called, grant of rights to use immovable property,
services for carrying out or co-ordination of construction work, including
architects or interior decorators, shall be the place where the immovable
property is located or intended to be located.
6. Place of provision of services relating to events
The place of provision of services provided by way of admission to, or
organization of, a cultural, artistic, sporting, scientific, educational, or
entertainment event, or a celebration, conference, fair, exhibition, or similar
events, and of services ancillary to such admission, shall be the place where the
event is actually held.
7. Place of provision of services provided at more than one
location
Where any service referred to in rules 4, 5, or 6 is provided at more than one
location, including a location in the taxable territory, its place of provision shall
be the location in the taxable territory where the greatest proportion of the
service is provided.
2578. Place of provision of services where provider and recipient
are located in taxable territory
Place of provision of a service, where the location of the provider of service as
well as that of the recipient of service is in the taxable territory, shall be the
location of the recipient of service.
257 From the language used in the section 66C it may be noted that section 66C permits
determination of place of provision by ‘having regard to the nature and description
of various services’. However, this principle is completely ignored in Rule 8 of Place
of Provision of Services Rules, 2012. Thus, it may be contended that the Rules are
overriding the Section 66C.
173
9. Place of provision of specified services
The place of provision of following services shall be the location of the service
provider:-
(a) Services provided by a banking company, or a financial institution, or a
non-banking financial company, to account holders;
(b) Online information and database access or retrieval services;
(c) Intermediary services;
(d) Service consisting of hiring of all means of transport other than,-
(i) aircrafts, and
(ii) vessels except yachts,
upto a period of one month258
10. Place of provision of goods transportation services
The place of provision of services of transportation of goods, other than by way
of mail or courier, shall be the place of destination of the goods:
Provided that the place of provision of services of goods transportation
agency shall be the location of the person liable to pay tax.
11. Place of provision of passenger transportation service
The place of provision in respect of a passenger transportation service shall be
the place where the passenger embarks on the conveyance for a continuous
journey.
12. Place of provision of services provided on board a conveyance
Place of provision of services provided on board a conveyance during the course
of a passenger transport operation, including services intended to be wholly or
substantially consumed while on board, shall be the first scheduled point of
departure of that conveyance for the journey.
258 Substituted W EF 1 October 2014 vide Not. No. 14/2014-ST
174
13. Powers to notify description of services or circumstances for
certain purposes
In order to prevent double taxation or non-taxation of the provision of a service,
or for the uniform application of rules, the Central Government shall have the
power to notify any description of service or circumstances in which the place of
provision shall be the place of effective use and enjoyment of a service.
14. Order of application of rules
Notwithstanding anything stated in any rule, where the provision of a service is,
prima facie, determinable in terms of more than one rule, it shall be determined
in accordance with the rule that occurs later among the rules that merit equal
consideration.
[F.No. 334 /1/ 2012-TRU]
175
10. CENVAT CREDIT RULES, 2004
[Notification No. 23/2004-C.E. (N.T.), dated 10-9-2004 as amended]
In exercise of the powers conferred by section 37 of the Central Excise Act,
1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994) and in
supersession of the CENVAT Credit Rules, 2002 and the Service Tax Credit
Rules, 2002, except as respects things done or omitted to be done before such
supersession, the Central Government hereby makes the following rules, namely
:-
1. Short title, extent and commencement
(1) These rules may be called the CENVAT Credit Rules, 2004.
(2) They extend to the whole of India :
Provided that nothing contained in these rules relating to availment and
utilization of credit of service tax shall apply to the State of Jammu and Kashmir.
(3) They shall come into force from the date of their publication in the Official
Gazette.
2. Definitions
In these rules, unless the context otherwise requires, -
(a) “capital goods” means :-
(A) the following goods, namely :-
(i) all goods falling under Chapter 82, Chapter 84, Chapter 85,
Chapter 90, heading 6805, grinding wheels and the like, and
parts thereof falling under heading 6804 and wagons of sub-
heading 860692259heading 6804 of the First Schedule to the
Excise Tariff Act;
(ii) pollution control equipment;
(iii) components, spares and accessories of the goods specified at
(i) and (ii);
(iv) moulds and dies, jigs and fixtures;
(v) refractories and refractory materials;
259 Substitued vide Notification No. 13/2016-CE(NT) w.e.f. 01.04.2016
176
(vi) tubes and pipes and fittings thereof; * * *
(vii) storage tank, and
(viii) motor vehicles other than those falling under tariff headings
8702, 8703, 8704, 8711 and their chassis but including
dumpers and tippers,
used -
(1) in the factory of the manufacturer of the final products,
but does not include any equipment or appliance used in
an office260; or
(1A) outside the factory of the manufacturer of the final
products for generation of electricity or for pumping of
water261 for captive use within the factory; or
(2) for providing output service;
(B) motor vehicle designed for transportation of goods including their chassis
registered in the name of the service provider, when used for -
(i) providing an output service of renting of such motor vehicle;
or
(ii) transportation of inputs and capital goods used for providing
an output service; or
(iii) providing an output service of courier agency;
(C) motor vehicle designed to carry passengers including their chassis,
registered in the name of the provider of service, when used for providing output
service of -
(i) transportation of passengers; or
(ii) renting of such motor vehicle; or
(iii) imparting motor driving skills;
(D) components, spares and accessories of motor vehicles which are
capital goods for the assessee;
(b) “Customs Tariff Act” means the Customs Tariff Act, 1975 (51 of
1975);
260 Deleted vide Notification No. 13/2016-CE(NT) w.e.f. 01.04.2016
261 Inserted vide Notification No. 13/2016-CE(NT) w.e.f. 01.04.2016
177
(c) “Excise Act” means the Central Excise Act, 1944 (1 of 1944);
(d) “exempted goods” means excisable goods which are exempt from the
whole of the duty of excise leviable thereon, and includes goods which are
chargeable to “Nil” rate of duty and goods in respect of which the benefit of an
exemption under Notification No. 1/2011-C.E., dated the 1st March, 2011 or
under entries at serial numbers 67 and 128 of Notification No. 12/2012-C.E.,
dated the 17th March, 2012 is availed;
(e) “exempted service” means a -
(1) taxable service which is exempt from the whole of the service tax
leviable thereon; or
(2) service, on which no service tax is leviable under section 66B of the
Finance Act; or
(3) taxable service whose part of value is exempted on the condition that
no credit of inputs and input services, used for providing such taxable
service, shall be taken;
but shall not include a service
(a) which is exported in terms of rule 6A of the Service Tax Rules, 1994.
(a)(b) by way of transportation of goods by a vessel from customs station of
clearance in India to a place outside India262
(f) “Excise Tariff Act” means the Central Excise Tariff Act, 1985 (5 of 1986);
(g) “Finance Act” means the Finance Act, 1994 (32 of 1994);
(h) “final products” means excisable goods manufactured or produced from
input, or using input service;
(ij) “first stage dealer” means a dealer, who purchases the goods directly from,
-
(i) the manufacturer under the cover of an invoice issued in terms of the
provisions of Central Excise Rules, 2002 or from the depot of the said
manufacturer, or from premises of the consignment agent of the said
manufacturer or from any other premises from where the goods are
sold by or on behalf of the said manufacturer, under cover of an
invoice; or
(ii) an importer or from the depot of an importer or from the premises of
the consignment agent of the importer, under cover of an invoice;
262 Inserted vide Notification No. 13/2016-CE(NT) w.e.f. 01.03.2016
178
(k) “input” means -
(i) all goods used in the factory by the manufacturer of the final
product; or
(ii) any goods including accessories, cleared along with the final
product, the value of which is included in the value of the final
product and goods used for providing free warranty for final
products; or
(iii) all goods used for generation of electricity or steam or pumping of
water263 for captive use; or
(iv) (iv) all goods used for providing any output service or;
(iv)(v) all capital goods which have a value upto ten
thousand rupees per piece264
but excludes -
(A) light diesel oil, high speed diesel oil or motor spirit,
commonly known as petrol;
(B) any goods used for -
(a) construction or execution of works contract of a building
or a civil structure or a part thereof; or
(b) laying of foundation or making of structures for support of
capital goods,
except for the provision of service portion in the execution of a
works contract or construction service as listed under clause
(b) of section 66E of the Act;
(C) capital goods except
(i) when used as parts or components in the manufacture of a final
product;
(ii) the value of such capital goods is upto ten thousand rupees per
piece
(D) motor vehicles;
(E) any goods, such as food items, goods used in a guesthouse,
residential colony, club or a recreation facility and clinical
establishment, when such goods are used primarily for
263 Inserted vide Notification No. 13/2016-CE(NT) w.e.f. 01.04.2016
264 Inserted vide Notification No. 13/2016-ST w.e.f. 01.04.2016
179
personal use or consumption of any employee; and
(F) any goods which have no relationship whatsoever with the
manufacture of a final product.
Explanation. - For the purpose of this clause, “free warranty” means a warranty
provided by the manufacturer, the value of which is included in the price of the
final product and is not charged separately from the customer;
265(l) “input service” means any service, -
(i) used by a provider of output service for providing an output service;
or
(ii) used by a manufacturer, whether directly or indirectly, in or in
relation to the manufacture of final products and clearance of final
products upto the place of removal,
and includes services used in relation to modernisation, renovation or repairs of
a factory, premises of provider of output service or an office relating to such
factory or premises, advertisement or sales promotion, market research, storage
upto the place of removal, procurement of inputs, accounting, auditing,
financing, recruitment and quality control, coaching and training, computer
networking, credit rating, share registry, security, business exhibition, legal
services, inward transportation of inputs or capital goods and outward
transportation upto the place of removal266;
but excludes, -
265 W.e.f. 1 April 2011, the term “input service” is defined to inter-alia mean any service
used by the provider of taxable service for manufacture of excisable goods and the
definition further provides for various inclusions and exclusions there from. It is
pertinent to note that, post 1 April 2011, the term 'activities relating to business' does
not form part of the aforesaid amended definition of ‘input services’. Also, the term
‘setting up’ has been deleted. The intention seems to be to deny CENVAT credit on
services availed for setting up of factory or premises. However, this has lead to un-
necessary denial of Cenvat credit in on services which are essential. For instance the
Business Process Outsourcing (BPO) sector cannot operate without cabs for pick and
drop for its employees. Similarly, a manufacturing unit located at the outskirts of the
city needs a outdoor caterer. Thus, it can be observed that these are essential services
for a business to exist and there is no sound rational for denial of tax credit on these
services. Thus, these Cenvat credit provisions should be re-visited and CENVAT credit
should be made seamless. This will provide a non-adversarial tax environment to the
industry.
266 CENVAT - Rule 2(l) of CCR, 2004 - Whether Outward transportation of finished goods
from place of removal is covered by definition of "Input Service" before 01.04.2008 -
Calcutta High Court refuses to accept Karnataka HC decision in ABB Ltd. allowing credit
on GTA service - CESTAT order set aside - Vesuvious India Ltd2013-TIOL-1038-HC-
KOL-ST
180
(A) service portion in the execution of a works contract and construction services
including service listed under clause (b) of section 66E of the Finance Act
(hereinafter referred as specified services) in so far as they are used for -
(a) construction or execution of works contract of a building or a civil
structure or a part thereof; or
(b) laying of foundation or making of structures for support of capital
goods,
except for the provision of one or more of the specified services; or
(B) services provided by way of renting of a motor vehicle, in so far as they
relate to a motor vehicle which is not a capital goods; or
(BA) service of general insurance business, servicing, repair and maintenance,
in so far as they relate to a motor vehicle which is not a capital goods, except
when used by -
(a) a manufacturer of a motor vehicle in respect of a motor vehicle
manufactured by such person; or
(b) an insurance company in respect of a motor vehicle insured or
reinsured by such person; or
(C) such as those provided in relation to outdoor catering, beauty treatment,
health services, cosmetic and plastic surgery, membership of a club, health
and fitness centre, life insurance, health insurance and travel benefits
extended to employees on vacation such as Leave or Home Travel
Concession, when such services are used primarily for personal use or
consumption of any employee;
(m) “input service distributor” means an office of the manufacturer or producer
of final products or provider of output service or an outsourced manufacturing
unit267, which receives invoices issued under rule 4A of the Service Tax Rules,
1994 towards pur-chases of input services and issues invoice, bill or, as the case
may be, challan for the purposes of distributing the credit of service tax paid on
the said services to such manufacturer or producer or provider, as the case may
be;
267 Inserted vide Notification No. 13/2016-CE(NT) w.e.f. 01.04.2016
181
(n) “job work” means processing or working upon of raw material or semi-
finished goods supplied to the job worker, so as to complete a part or whole of
the process resulting in the manufacture or finishing of an article or any
operation which is essential for aforesaid process and the expression “job
worker” shall be construed accordingly;
(na) “large tax payer” shall have the meaning assigned to it in the Central
Excise Rules, 2002;
(naa) “manufacturer” or “producer”, -
(i) in relation to articles of jewellery or other articles of precious metals
falling under Heading 7113 or 7114 as the case may be of the First
Schedule to the Excise Tariff Act, includes a person who is liable to
pay duty of excise leviable on such goods under sub-rule (1) of rule
12AA of the Central Excise Rules, 2002;
(ii) in relation to goods falling under Chapters 61, 62 or 63 of the First
Schedule to the Excise Tariff Act, includes a person who is liable to
pay duty of excise leviable on such goods under sub-rule (1A) of rule
4 of the Central Excise Rules, 2002;
(o) “notification” means the notification published in the Official Gazette;
(p) “output service” means any service provided by a provider of service
located in the taxable territory but shall not include a service, -
(1) specified in section 66D of the Finance Act; or
(2) where the whole of service tax is liable to be paid by the recipient
of service.
(q) “person liable for paying service tax” has the meaning as assigned to
it in clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules, 1994;
(qa) “place of removal” means-
(i) a factory or any other place or premises of production or manufacture of the excisable
goods;
(ii) a warehouse or any other place or premises wherein the excisable goods have been
permitted to be deposited without payment of duty;
(iii) a depot, premises of a consignment agent or any other place or premises from
where the excisable goods are to be sold after their clearance from the factory,
from where such goods are removed268
268 Inserted from 11 July 2014 vide Not. No. 21/2014-CE (NT)
182
(r) “provider of taxable service” include a person liable for paying service
tax;
(s) “second stage dealer” means a dealer who purchases the goods from
a first stage dealer;
(t) words and expressions used in these rules and not defined but defined
in the Excise Act or the Finance Act shall have the meanings respectively
assigned to them in those Acts.
3. CENVAT credit
(1) A manufacturer or producer of final products or a provider of output
service shall be allowed to take credit (hereinafter referred to as the CENVAT
credit) of -
(i) the duty of excise specified in the First Schedule to the Excise Tariff
Act, leviable under the Excise Act;
Provided that CENVAT credit of such duty of excise shall not be
allowed to be taken when paid on any goods -
(a) in respect of which the benefit of an exemption under Notification
No. 1/2011-C.E., dated the 1st March, 2011 is availed; or
(b) specified in serial numbers 67 and 128 in respect of which the
benefit of an exemption under Notification No. 12/2012-C.E., dated the
17th March, 2012 is availed;
(ii) the duty of excise specified in the Second Schedule to the Excise Tariff
Act, leviable under the Excise Act;
(iii) the additional duty of excise leviable under section 3 of the Additional
Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978);
(iv) the additional duty of excise leviable under section 3 of the Additional
Duties of Excise (Goods of Special Importance) Act, 1957 (58 of
1957);
(v) the National Calamity Contingent duty leviable under section 136 of
the Finance Act, 2001 (14 of 2001);
(vi) the Education Cess on excisable goods leviable under section 91 read
with section 93 of the Finance (No. 2) Act, 2004 (23 of 2004);
(via) the Secondary and Higher Education Cess on excisable goods leviable
under section 136 read with section 138 of the Finance Act, 2007 (22
of 2007);
183
(vii) the additional duty leviable under section 3 of the Customs Tariff Act,
equivalent to the duty of excise specified under clauses (i), (ii), (iii),
(iv), (v) , (vi) and (via);
Provided that CENVAT credit shall not be allowed in excess of eighty-
five per cent. of the additional duty of customs paid under sub-section
(1) of section 3 of the Customs Tariff Act, on ships, boats and other
floating structures for breaking up falling under tariff item 8908 00 00
of the First Schedule to the Customs Tariff Act;
(viia) the additional duty leviable under sub-section (5) of section 3 of the
Customs Tariff Act * * * :
Provided that a provider of output service shall not be eligible to take
credit of such additional duty;
(viii) the additional duty of excise leviable under section 157 of the Finance
Act, 2003 (32 of 2003);
(ix) the service tax leviable under section 66 of the Finance Act; * *
*
(ixa) the service tax leviable under section 66A of the Finance Act;
(ixb) the service tax leviable under section 66B of the Finance Act;
(x) the Education Cess on taxable services leviable under section 91 read
with section 95 of the Finance (No. 2) Act, 2004 (23 of 2004);
(xa) the Secondary and Higher Education Cess on taxable services leviable
under section 136 read with section 140 of the Finance Act, 2007 (22
of 2007); and
(xi) the additional duty of excise leviable under section 85 of Finance Act,
2005 (18 of 2005), :
paid on -
(i) any input or capital goods received in the factory of manufacture of
final product or by the provider of output service on or after the 10th
day of September, 2004; and
(ii) any input service received by the manufacturer of final product or by
the provider of output services on or after the 10th day of September,
2004,
including the said duties, or tax, or cess paid on any input or input service, as
the case may be, used in the manufacture of intermediate products, by a job-
worker availing the benefit of exemption specified in the notification of the
184
Government of India in the Ministry of Finance (Department of Revenue), No.
214/86-Central Excise, dated the 25th March, 1986, published in the Gazette of
India vide number G.S.R. 547(E), dated the 25th March, 1986, and received by
the manufacturer for use in, or in relation to, the manufacture of final product,
on or after the 10th day of September, 2004.
Provided that the CENVAT credit shall be allowed to be taken of the
amount equal to central excise duty paid on the capital goods at the time of
debonding of the unit in terms of the para 8 of Notification No. 22/2003-
Central Excise, published in the Gazette of India, part II, Section 3, sub-
section (i), vide number G.S.R. 265(E), dated, the 31st March, 2003.
Explanation. - For the removal of doubts it is clarified that the
manufacturer of the final products and the provider of output service shall be
allowed CENVAT credit of additional duty leviable under section 3 of the Customs
Tariff Act on goods falling under heading 9801 of the First Schedule to the
Customs Tariff Act.
(2) Notwithstanding anything contained in sub-rule (1), the manufacturer
or producer of final products shall be allowed to take CENVAT credit of the duty
paid on inputs lying in stock or in process or inputs contained in the final
products lying in stock on the date on which any goods manufactured by the
said manufacturer or producer cease to be exempted goods or any goods
become excisable.
(3) Notwithstanding anything contained in sub-rule (1), in relation to a
service which ceases to be an exempted service, the provider of the output
service shall be allowed to take CENVAT credit of the duty paid on the inputs
received on and after the 10th day of September, 2004 and lying in stock on the
date on which any service ceases to be an exempted service and used for
providing such service.
(4) The CENVAT credit may be utilized for payment of -
(a) any duty of excise on any final product; or
(b) an amount equal to CENVAT credit taken on inputs if such inputs are
removed as such or after being partially processed; or
(c) an amount equal to the CENVAT credit taken on capital goods if such
capital goods are removed as such; or
(d) an amount under sub-rule (2) of rule 16 of Central Excise Rules,
2002; or
185
(e) service tax on any output service :
Provided that while paying duty of excise or service tax, as the case may
be, the CENVAT credit shall be utilized only to the extent such credit is available
on the last day of the month or quarter, as the case may be, for payment of
duty or tax relating to that month or the quarter, as the case may be :
Provided further that CENVAT credit shall not be utilised for payment of
any duty of excise on goods in respect of which the benefit of an exemption
under Notification No. 1/2011-C.E., dated the 1st March, 2011 is availed :
Provided also that the CENVAT credit of the duty, or service tax, paid on
the inputs, or input services, used in the manufacture of final products cleared
after availing of the exemption under the following notifications of Government
of India in the Ministry of Finance (Department of Revenue), -
(i) No. 32/99-Central Excise, dated the 8th July, 1999 G.S.R. 508(E),
dated 8th July, 1999;
(ii) No. 33/99-Central Excise, dated the 8th July, 1999 G.S.R. 509(E),
dated 8th July, 1999;
(iii) No. 39/2001-Central Excise, dated the 31st July, 2001 G.S.R. 565 (E),
dated the 31st July, 2001;
(iv) No. 56/2002-Central Excise, dated the 14th November, 2002 G.S.R.
764(E), dated the 14th November, 2002;
(v) No. 57/2002-Central Excise, dated 14th November, 2002 G.S.R.
765(E), dated the 14th November, 2002;
(vi) No. 56/2003-Central Excise, dated the 25th June, 2003 G.S.R. 513(E),
dated the 25th June, 2003; and
(vii) No. 71/2003-Central Excise, dated the 9th September, 2003 G.S.R.
717(E), dated the 9th September, 2003,
shall, respectively, be utilized only for payment of duty on final products, in
respect of which exemption under the said respective notifications is availed of :
Provided also that no credit of the additional duty leviable under sub-
section (5) of section 3 of the Customs Tariff Act, * * * shall be utilised for
payment of service tax on any output service :
Provided also that the CENVAT credit of any duty specified in sub-rule (1),
except the National Calamity Contingent duty in item (v) thereof, shall not be
utilized for payment of the National Calamity Contingent duty leviable under
186
section 136 of the Finance Act, 2001 (14 of 2001)269said National Calamity
Contingent duty on goods falling under tariff items 8517 12 10 and 8517 12 90
respectively of the First Schedule of the Central Excise Tariff :
Provided also that the CENVAT credit of any duty specified in sub-rule (1)
shall not be utilized for payment of the Clean Energy Cess leviable under section
83 of the Finance Act, 2010 (14 of 2010) :
Provided also that the CENVAT credit of any duty mentioned in sub-rule
(1), other than credit of additional duty of excise leviable under section 85 of
Finance Act, 2005 (18 of 2005), shall not be utilised for payment of said
additional duty of excise on final products.
Provided also that the CENVAT credit of any duty specified in sub-rule (1)
shall not be utilised for payment of the Swachh Bharat Cess leviable under sub-
section (2) of section 119 of the Finance Act, 2015 (20 of 2015)270
Provided also that CENVAT credit shall not be utilised for payment of
Infrastructure Cess leviable under sub-clause (1) of clause 159 of the Finance
Bill, 2016271
Explanation. - CENVAT credit cannot be used for payment of service tax
in respect of services where the person liable to pay tax is the service recipient.
(5) When inputs or capital goods, on which CENVAT credit has been
taken, are removed as such from the factory, or premises of the provider of
output service, the manufacturer of the final products or provider of output
service, as the case may be, shall pay an amount equal to the credit availed in
respect of such inputs or capital goods and such removal shall be made under
the cover of an invoice referred to in rule 9 :
Provided that such payment shall not be required to be made where any
inputs or capital goods are removed outside the premises of the provider of
output service for providing the output service :
* * *
Provided further that such payment shall not be required to be made
where any inputs are removed outside the factory for providing free warranty for
final products :
* * * * * *
269 Substituted vide Notification No. 13/2016-CE(NT) w.e.f. 01.03.2016
270 Inserted vide Not. No. 02/2016 - ST Dated 03.02.2016.
271 Inserted vide Notification No. 13/2016-CE(NT) w.e.f. 01.03.2016
187
(5A) (a) If the capital goods, on which CENVAT credit has been taken, are
removed after being used, whether as capital goods or as scrap or waste272the
manufacturer or provider of output services shall pay an amount equal to the
CENVAT Credit taken on the said capital goods reduced by the percentage points
calculated by straight line method as specified below for each quarter of a year
or part thereof from the date of taking the CENVAT Credit, namely : -
(i)for computers and computer peripherals :
for each quarter in the first year @ 10%
for each quarter in the second year @ 8%
for each quarter in the third year @ 5%
for each quarter in the fourth and fifth year @ 1%
(ii) for capital goods, other than computers and computer peripherals
@ 2.5% for each quarter :
Provided that if the amount so calculated is less than the amount equal to
the duty leviable on transaction value, the amount to be paid shall be equal to
the duty leviable on transaction value.
273(b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount
equal to the duty leviable on transaction value.
(5B) If the value of any,
(i) input, or
(ii) capital goods before being put to use,
on which CENVAT credit has been taken is written off fully or partially or where
any provision to write off fully or partially has been made in the books of
account then the manufacturer or service provider, as the case may be, shall
pay an amount equivalent to the CENVAT credit taken in respect of the said
input or capital goods :
Provided that if the said input or capital goods is subsequently used in the
manufacture of final products or the provision of output services, the
manufacturer or output service provider, as the case may be, shall be entitled to
take the credit of the amount equivalent to the CENVAT credit paid earlier
subject to the other provisions of these rules.
272 Amended / deleted vide Not. No. 12/2013-CE dated 27 September 2013
273 Inserted vide Not. No. 12/2013-CE dated 27 September 2013
188
274Explanation. – If the manufacturer of goods or the provider of output service fails to pay the
amount payable under sub-rules (5), (5A), and (5B), it shall be recovered, in the manner as
provided in rule 14, for recovery of CENVAT credit wrongly taken275
(5C) Where on any goods manufactured or produced by an assessee, the
payment of duty is ordered to be remitted under rule 21 of the Central Excise
Rules, 2002, the CENVAT credit taken on the inputs used in the manufacture or
production of said goods and the CENVAT credit taken on input services used in or in
relation to the manufacture or production of said goods276 shall be reversed.
Explanation 1.- The amount payable under sub-rules (5), (5A), (5B) and (5C), unless specified
otherwise, shall be paid by the manufacturer of goods or the provider of output service by debiting
the CENVAT credit or otherwise on or before the 5th day of the following month except for the
month of March, where such payment shall be made on or before the 31st day of the month of
March.
Explanation 2.- If the manufacturer of goods or the provider of output service fails to pay the
amount payable under sub-rules (5), (5A), (5B) and (5C), it shall be recovered, in the manner as
provided in rule 14, for recovery of CENVAT credit wrongly taken and utilized277
(6) The amount paid under sub-rule (5) and sub-rule (5A) shall be eligible
as CENVAT credit as if it was a duty paid by the person who removed such goods
under sub-rule (5) and sub-rule (5A).
(7) Notwithstanding anything contained in sub-rule (1) and sub-rule (4), -
(a) CENVAT credit in respect of inputs or capital goods produced or
manufactured, by a hundred per cent. export-oriented undertaking or
by a unit in an Electronic Hardware Technology Park or in a Software
Technology Park other than a unit which pays excise duty levied under
section 3 of the Excise Act read with serial numbers 3, 5, 6 and 7 of
Notification No. 23/2003-Central Excise, dated the 31st March, 2003
274 Inserted vide Not. No. 3/2013-CE dated 1 March 2013 [Author Note – This is
‘Explanation’ thus it could have retrospective effect]
275 Omitted vide Not. No. 1/2014-CE dated 8.1.2014
276 Inserted vide Not. No. 1/2014-CE dated 8.1.2014
277 Expl. 1 and 2 inserted vide Not. No. 1/2014-CE dated 8.1.2014
189
G.S.R. 266(E), dated the 31st March, 2003 and used in the
manufacture of the final products or in providing an output service, in
any other place in India, in case the unit pays excise duty under
section 3 of the Excise Act read with serial number 2 of the Notification
No. 23/2003-Central Excise, dated the 31st March, 2003 G.S.R.
266(E), dated the 31st March, 2003, shall be admissible equivalent to
the amount calculated in the following manner, namely :-
Fifty per cent. of X multiplied by {(l+BCD/100) multiplied by
(CVD/100)}, where BCD and CVD denote ad valorem rates, in per
cent. of basic customs duty and additional duty of customs leviable
on the inputs or the capital goods respectively and X denotes the
assessable value :
Provided that the CENVAT credit in respect of inputs and capital
goods cleared on or after 1st March, 2006 from an export oriented
undertaking or by a unit in Electronic Hardware Technology Park or in
a Software Technology Park, as the case may be, on which such unit
pays excise duty under section 3 of the Excise Act read with serial
number 2 of the Notification No. 23/2003-Central Excise, dated 31st
March, 2003 G.S.R. 266(E), dated the 31st March, 2003 shall be
equal to X multiplied by (1+BCD/200) multiplied by (CVD/100) :
Provided further that the CENVAT credit in respect of inputs and
capital goods cleared on or after the 7th September, 2009 from an
export-oriented undertaking or by a unit in Electronic Hardware
Technology Park or in a Software Technology Park, as the case may
be, on which such undertaking or unit has paid -
(A) excise duty leviable under section 3 of the Excise Act read
with serial number 2 of the Notification No. 23/2003-Central
Excise, dated 31st March, 2003 G.S.R. 266(E), dated the 31st
March, 2003; and
(B) the Education Cess leviable under section 91 read with section
93 of the Finance (No. 2) Act, 2004 and the Secondary and
Higher Education Cess leviable under section 136 read with
section 138 of the Finance Act, 2007, on the excise duty
referred to in (A),
shall be the aggregate of -
190
(I) that portion of excise duty referred to in (A), as is equivalent
to -
(i) the additional duty leviable under sub-section (1) of
section 3 of the Customs Tariff Act, which is equal to the
duty of excise under clause (a) of sub-section (1) of
section 3 of the Excise Act;
(ii) the additional duty leviable under sub-section (5) of
section 3 of the Customs Tariff Act; and
(II) the Education Cess and the Secondary and Higher Education
Cess referred to in (B).
(b) CENVAT credit in respect of -
(i) the additional duty of excise leviable under section 3 of the
Additional Duties of Excise (Textiles and Textile Articles) Act, 1978
(40 of 1978);
(ii) the National Calamity Contingent duty leviable under section 136
of the Finance Act, 2001 (14 of 2001);
(iii) the education cess on excisable goods leviable under section 91
read with section 93 of the Finance (No. 2) Act, 2004 (23 of
2004);
(iiia) the Secondary and Higher Education Cess on excisable goods
leviable under section 136 read with section 138 of the Finance
Act, 2007 (22 of 2007);
(iv) the additional duty leviable under section 3 of the Customs Tariff
Act, equivalent to the duty of excise specified under items (i), (ii)
and (iii) above;
(v) the additional duty of excise leviable under section 157 of the
Finance Act, 2003 (32 of 2003);
(vi) the education cess on taxable services leviable under section 91
read with section 95 of the Finance (No. 2) Act, 2004 (23 of
2004);
(via) the Secondary and Higher Education Cess on taxable services
leviable under section 136 read with section 140 of the Finance
Act, 2007 (22 of 2007); and
(vii) the additional duty of excise leviable under section 85 of the
191
Finance Act, 2005 (18 of 2005),
shall be utilised towards payment of duty of excise or as the case may
be, of service tax leviable under the said Additional Duties of Excise
(Textiles and Textile Articles) Act, 1978 or the National Calamity Contingent
duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), or
the education cess on excisable goods leviable under section 91 read with
section 93 of the said Finance (No. 2) Act, 2004 (23 of 2004), or the
Secondary and Higher Education Cess on excisable goods leviable under
section 136 read with section 138 of the Finance Act, 2007 (22 of 2007) or
the additional duty of excise leviable under section 157 of the Finance Act,
2003 (32 of 2003), or the education cess on taxable services leviable under
section 91 read with section 95 of the said Finance (No. 2) Act, 2004 (23 of
2004), or the Secondary and Higher Education Cess on taxable services
leviable under section 136 read with section 140 of the Finance Act, 2007
(22 of 2007), or the additional duty of excise leviable under section 85 of
the Finance Act, 2005 (18 of 2005) respectively, on any final products
manufactured by the manufacturer or for payment of such duty on inputs
themselves, if such inputs are removed as such or after being partially
processed or on any output service :
Provided that the credit of the education cess on excisable goods and
the education cess on taxable services can be utilized, either for payment
of the education cess on excisable goods or for the payment of the
education cess on taxable services :
Provided further that the credit of the Secondary and Higher
Education Cess on excisable goods and the Secondary and Higher
Education Cess on taxable services can be utilized, either for payment of
the Secondary and Higher Education Cess on excisable goods or for the
payment of the Secondary and Higher Education Cess on taxable services.
Explanation. - For the removal of doubts, it is hereby declared that
the credit of the additional duty of excise leviable under section 3 of the
Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of
1957) paid on or after the 1st day of April, 2000, may be utilised towards
payment of duty of excise leviable under the First Schedule or the Second
Schedule to the Excise Tariff Act.
(c) the CENVAT credit, in respect of additional duty leviable under section
192
3 of the Customs Tariff Act, paid on marble slabs or tiles falling under
tariff items 2515 12 20 and 2515 12 90 respectively of the First
Schedule to the Excise Tariff Act shall be allowed to the extent of thirty
rupees per square metre;
Explanation. - Where the provisions of any other rule or notification
provide for grant of whole or part exemption on condition of non-availability of
credit of duty paid on any input or capital goods, or of service tax paid on input
service, the provisions of such other rule or notification shall prevail over the
provisions of these rules.
4. Conditions for allowing CENVAT credit
(1) The CENVAT credit in respect of inputs may be taken immediately on
receipt of the inputs in the factory of the manufacturer or in the premises of
the provider of output service or in the premises of the job worker, in case
goods are sent directly to the job worker on the direction of the manufacturer or
the provider of output service, as the case may be278 :
Provided that in respect of final products, namely, articles of jewellery or
other articles of precious metals falling under Heading 7113 or 7114, as the case
may be of the First Schedule to the Excise Tariff Act, the CENVAT credit of duty
paid on inputs may be taken immediately on receipt of such inputs in the
registered premises of the person who get such final products manufactured on
his behalf, on job work basis, subject to the condition that the inputs are used in
the manufacture of such final product by the job worker.
Provided further that the CENVAT credit in respect of inputs may be taken
by the provider of output service when the inputs are delivered to such provider,
subject to maintenance of documentary evidence of delivery and location of the
inputs.
Provided also that the manufacturer or the provider of output service shall not take CENVAT
credit after one year279 of the date of issue of any of the documents specified in sub- rule (1) of
rule 9280
(2)(a) The CENVAT credit in respect of capital goods received in a factory
278 Amended by Not. No. 6/2015-CE (NT) w.e.f 01.03.2015
279 Amended by Not. No. 06/2015-CE (NT) w.e.f. 01.03.2015. It is possible to take a view that this
amendment will be applicable for all invoices on which credit is availed after 1 March 2015
irrespective of date of invoice by relying on the judgment of Apex Court in case of Osram Surya (P)
Ltd. Appeal (Civil) 2359 of 1999 /2002 (142) ELT 5 (SC)]
280 Inserted from 1 September 2014 vide Not. No. 21/2014-CE (NT)
193
or in the premises of the provider of output service or outside the factory of
the manufacturer of the final products for generation of electricity for captive use
within the factory or in the premises of the job worker, in case capital goods are
sent directly to the job worker on the direction of the manufacturer or the
provider of output service, as the case may be281, at any point of time in a given
financial year shall be taken only for an amount not exceeding fifty per cent. of
the duty paid on such capital goods in the same financial year :
Provided that the CENVAT credit in respect of capital goods shall be
allowed for the whole amount of the duty paid on such capital goods in the same
financial year if such capital goods are cleared as such in the same financial year
:
Provided further that the CENVAT credit of the additional duty leviable under
sub-section (5) of section 3 of the Customs Tariff Act, * * * * in respect of
capital goods shall be allowed of the capital goods in the factory of a
manufacturer :
Provided also that where an assessee is eligible to avail of the exemption
under a notification based on the value of clearances in a financial year, the
CENVAT credit in respect of capital goods received by such assessee shall be
allowed for the whole amount of the duty paid on such capital goods in the same
financial year :
Provided also that the CENVAT credit in respect of capital goods may be
taken by the provider of output service when the capital goods are
delivered to such provider, subject to maintenance of documentary evidence of
delivery and location of the capital goods.
Explanation. - 282For the removal of doubts, it is hereby clarified that-
(i) an assessee engaged in the manufacture of articles of jewellery,
other than articles of silver jewellery but inclusive of articles of
silver jewellery studded with diamond, ruby, emerald or sapphire,
falling under chapter heading 7113 of the First Schedule of the
Excise Tariff Act, shall be eligible, if his aggregate value of
clearances of all excisable goods for home consumption in the
preceding financial year, computed in the manner specified in the
said notification, did not exceed rupees twelve crore
281 Amended by Not. No. 06/2015-CE (NT)
282 Substituted vide Notification No. 13/2016-CE(NT) w.e.f. 01.03.2016
194
(i)(ii) For the removal of doubts, it is hereby clarified that an assessee
shall be “eligible” if his aggregate value of clearances of all
excisable goods for home consumption in the preceding financial
year computed in the manner specified in the said notification did
not exceed rupees four hundred lakhs.
(b) The balance of CENVAT credit may be taken in any financial year
subsequent to the financial year in which the capital goods were received in the
factory of the manufacturer, or in the premises of the provider of output service,
if the capital goods, other than components, spares and accessories, refractories
and refractory materials, moulds and dies and goods falling under heading 6805,
grinding wheels and the like, and parts thereof falling under heading 6804 of the
First Schedule to the Excise Tariff Act, are in the possession of the
manufacturer of final products, or provider of output service in such subsequent
years.
Illustration. - A manufacturer received machinery on the 16th day of April,
2002 in his factory. CENVAT of two lakh rupees is paid on this machinery. The
manufacturer can take credit up to a maximum of one lakh rupees in the
financial year 2002-2003, and the balance in subsequent years.
(3) The CENVAT credit in respect of the capital goods shall be allowed to a
manufacturer, provider of output service even if the capital goods are acquired
by him on lease, hire purchase or loan agreement, from a financing
company.
(4) The CENVAT credit in respect of capital goods shall not be allowed in
respect of that part of the value of capital goods which represents the amount of
duty on such capital goods, which the manufacturer or provider of output service
claims as depreciation under section 32 of the Income-tax Act, 1961 (43 of
1961).
(5)(a)(i) The CENVAT credit on inputs shall be allowed even if any inputs
as such or after being partially processed are sent to a job worker and from
there subsequently sent to another job worker and likewise, for further
processing, testing, repairing, re-conditioning or for the manufacture of
intermediate goods necessary for the manufacture of final products or any other
purpose, and it is established from the records, challans or memos or any other
document produced by the manufacturer or the provider of output service taking
the CENVAT credit that the inputs or the products produced therefrom are
195
received back by the manufacturer or the provider of output service, as
the case may be, within one hundred and eighty days of their being sent
from the factory or premises of the provider of output service, as the case may
be:
Provided that credit shall also be allowed even if any inputs are directly sent to a
job worker without their being first brought to the premises of the manufacturer
or the provider of output service, as the case may be, and in such a case, the
period of one hundred and eighty days shall be counted from the date of receipt
of the inputs by the job worker;
(ii) the CENVAT credit on capital goods shall be allowed even if any capital goods
as such are sent to a job worker for further processing, testing, repair, re-
conditioning or for the manufacture of intermediate goods necessary for the
manufacture of final products or any other purpose, and it is established from
the records, challans or memos or any other document produced by the
manufacturer or the provider of output service taking the CENVAT credit that the
capital goods are received back by the manufacturer or the provider of
output service, as the case may be, within two years of their being so
sent:
Provided that credit shall be allowed even if any capital goods are directly sent
to a job worker without their being first brought to the premises of the
manufacturer or the provider of output service, as the case may be, and in such
a case, the period of two years shall be counted from the date of receipt of the
capital goods by the job worker;
(iii) if the inputs or capital goods, as the case may be, are not received
back within the time specified under sub-clause (i) or (ii), as the case may be,
by the manufacturer or the provider of output service, the manufacturer or the
provider of output service shall pay an amount equivalent to the CENVAT credit
attributable to the inputs or capital goods, as the case may be, by debiting the
CENVAT credit or otherwise, but the manufacturer or the provider of output
service may take the CENVAT credit again when the inputs or capital goods, as
the case may be, are received back in the factory or in the premises of the
provider of output service.283
(b) The CENVAT credit shall also be allowed to a manufacturer of final
products in respect of jigs, fixtures, moulds and dies or tools falling under
283 Substituted by Not. No. 6/2015-CE (NT)
196
Chapter 82 of the First Schedule to the Excise Tariff Act, sent by such
manufacturer to, -
(i) another manufacturer for the production of goods; or
(ii) a job worker for the production of goods on his behalf, according to his
specifications:
Provided that such credit shall also be allowed where jigs, fixtures, moulds
and dies or tools falling under Chapter 82 of the First Schedule to the Excise
Tariff Act, are sent by the manufacturer of final products to the premises of
another manufacturer or job worker without bringing these to his own
premises284 (b) The CENVAT credit shall also be allowed in respect of jigs,
fixtures, moulds and dies sent by a manufacturer of final products to, -
(i) another manufacturer for the production of goods; or
(ii) a job worker for the production of goods on his behalf, according to his
specifications.
(6) The Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, having jurisdiction over the
factory of the manufacturer of the final products who has sent the input or
partially processed inputs outside his factory to a job-worker may, by an order,
which shall be valid for three financial years285valid for a financial year, in
respect of removal of such input or partially processed input, and subject to such
conditions as he may impose in the interest of revenue including the manner in
which duty, if leviable, is to be paid, allow final products to be cleared from the
premises of the job-worker.
(7) The CENVAT credit in respect of input service shall be allowed, on or
after the day on which the invoice, bill or, as the case may be, challan
referred to in rule 9 is received :
[Provided that in respect of input service where whole or part of the service tax is liable
to be paid by the recipient of service, credit of service tax payable by the service
recipient shall be allowed after such service tax is paid286
287Provided further that in case the payment of the value of input service and the service
tax paid or payable as indicated in the invoice, bill or, as the case may be, challan
284 Substituted vide Notification No. 13/2016-CE(NT) w.e.f. 01.04.2016
285 Substitued vide Notification No. 13/2016-CE(NT) w.e.f. 01.04.2016
286 Substituted by Not. No. 6/2015-CE (NT)
287 Deleted by Not. No. 6/2015-CE (NT)
197
referred to in rule 9 is not made within three months of the date of the invoice, bill or, as
the case may be, challan, the manufacturer or the service provider who has taken credit
on such input service, shall pay an amount equal to the CENVAT credit availed on such
input service, except an amount equal to the CENVAT credit of the tax that is paid by the
manufacturer or the service provider as recipient of service, and in case the said
payment is made, the manufacturer or output service provider, as the case may be, shall
be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier
subject to the other provisions of these rules288
Provided also that if any payment or part thereof, made towards an input
service is refunded or a credit note is received by the manufacturer or the
service provider who has taken credit on such input service, he shall pay an
amount equal to the CENVAT credit availed in respect of the amount so refunded
or credited :
Provided also that CENVAT credit in respect of an invoice, bill or, as the
case may be, challan referred to in rule 9, issued before the 1st day of April,
2011 shall be allowed, on or after the day on which payment is made of the
value of input service and the service tax paid or payable as indicated in invoice,
bill or, as the case may be, challan referred to in rule 9.
Provided also that the manufacturer or the provider of output service shall not take CENVAT
credit after one year289 of the date of issue of any of the documents specified in sub-rule (1) of
rule 9290
Provided also that CENVAT Credit of Service Tax paid on the charges paid or
payable for the service provided by way of assignment, by the Government or
any other person, of the right to use any natural resource, shall be spread over
such period of time as the period for which the right to use has been assigned.
CENVAT Credit in the financial year in which the right to use is acquired and in
the subsequent years during which such right is retained by the manufacturer of
goods or provider of output service as the case may be, shall be taken of an
amount determined as per the following formula:
Amount of CENVAT Credit that shall be taken in a financial year = Service Tax
paid on the charges payable for the assignment of the right to use / No. of Years
for which the rights have been assigned
288 Substituted by Not. No. 6/2015-CE (NT)
289 Amended by Not. No. 06/2015-CE (NT) w.e.f 01.03.2015
290 Inserted from 1 September 2014 vide Not. No. 21/2014-CE (NT)
198
Provided also that where the manufacturer of goods or provider of output
service, as the case may be, further assigns such right to use assigned to him by
the Government or any other person, in any financial year, to another person
against a consideration, such amount of balance CENVAT credit as does not
exceed the service tax payable on the consideration charged by him for such
further assignment, shall be allowed in the same financial year:
Provided also that CENVAT credit of annual or monthly user charges payable in
respect of any service by way of assignment of right to use natural resources
shall be allowed in the same financial year in which they are paid.291
Explanation I. - The amount mentioned in this rule292, unless specified
otherwise, shall be paid by the manufacturer of goods or the provider of output
service by debiting the CENVAT credit or otherwise on or before the 5th day of
the following month except for the month of March, when such payment shall be
made on or before the 31st day of the month of March.
Explanation II. - If the manufacturer of goods or the provider of output
service fails to pay the amount payable under this rule293, it shall be recovered,
in the manner as provided in rule 14, for recovery of CENVAT credit wrongly
taken.
Explanation III - In case of a manufacturer who avails the exemption
under a notification based on the value of clearances in a financial year and a
service provider who is an individual or proprietary firm or partnership firm, the
expressions, “following month” and “month of March” occurring in sub-rule (7)
shall be read respectively as “following quarter” and “quarter ending with the
month of March”.
5. Refund of CENVAT Credit294
(1) A manufacturer who clears a final product or an intermediate product for
export without payment of duty under bond or letter of undertaking, or a service
291 Inserted vide Notification No. 13/2016-CE(NT) w.e.f. 01.04.2016
292 Amended by Not. No. 6/2015-CE (NT)
293 Amended by Not. No. 6/2015-CE (NT)
294 CX - Refund - Certainty promotes the rule of law - While adjudicating upon refund
claims it is necessary in the interest of justice for the assessing officers as well as the
first appellate authorities to dispose of all the objections so that proceedings do not
remain pending for several years in CESTAT - HC directs CBEC to issue necessary
guidelines in this regard - OIL & NATURAL GAS CORPORATION LTD - 2013-TIOL-
809-HC-MUM-CX
199
provider who provides an output service which is exported without payment of
service tax, shall be allowed refund of CENVAT credit as determined by the
following formula subject to procedure, safeguards, conditions and limitations,
as may be specified by the Board by notification in the Official Gazette :
Refund
amount
=
(Export turnover of goods +
Export turnover of services) × Net CENVAT
credit
Total turnover
Where, -
(A) “Refund amount” means the maximum refund that is admissible;
(B) “Net CENVAT credit” means total CENVAT credit availed on inputs and
input services by the manufacturer or the output service provider
reduced by the amount reversed in terms of sub-rule (5C) of rule 3,
during the relevant period;
(C) “Export turnover of goods” means the value of final products and
intermediate products cleared during the relevant period and exported
without payment of Central Excise duty under bond or letter of
undertaking;
(D) “Export turnover of services” means the value of the export service
calculated in the following manner, namely :-
Export turnover of services = payments received during the relevant
period for export services + export services whose provision has been
completed for which payment had been received in advance in any
period prior to the relevant period - advances received for export
services for which the provision of service has not been completed
during the relevant period;
(E) “Total turnover” means sum total of the value of -
(a) all excisable goods cleared during the relevant period including
exempted goods, dutiable goods and excisable goods exported;
(b) export turnover of services determined in terms of clause (D) of
sub-rule (1) above and the value of all other services, during the
relevant period; and
(c) all inputs removed as such under sub-rule (5) of rule 3 against an
invoice, during the period for which the claim is filed.
(2) This rule shall apply to exports made on or after the 1st April, 2012 :
200
Provided that the refund may be claimed under this rule, as existing,
prior to the commencement of the CENVAT Credit (Third Amendment)
Rules, 2012, within a period of one year from such commencement :
Provided further that no refund of credit shall be allowed if the
manufacturer or provider of output service avails of drawback allowed
under the Customs and Central Excise Duties and Service Tax Drawback
Rules, 1995, or claims rebate of duty under the Central Excise Rules, 2002,
in respect of such duty; or claims rebate of service tax under the Service
Tax Rules, 1994 in respect of such tax.
Explanation 1. - For the purposes of this rule, -
(1) “export service” means a service which is provided as per rule 6A of
the Service Tax Rules, 1994;
(1A) "export goods" means any goods which are to be taken out of India to
a place outside India295
(2) “relevant period” means the period for which the claim is filed.
Explanation 2. - For the purposes of this rule, the value of services shall
be determined in the same manner as the value for the purposes of sub-rules
(3) and (3A) of rule 6 is determined.
5A. Refund of CENVAT credit to units in specified areas
Notwithstanding anything contrary contained in these rules, where a
manufacturer has cleared final products in terms of notification of the
Government of India in the Ministry of Finance (Department of Revenue) No.
20/2007-Central Excise, dated the 25th April, 2007 and is unable to utilize the
CENVAT credit of duty taken on inputs required for manufacture of final products
specified in the said notification, other than final products which are exempt or
subject to nil rate of duty, for payment of duties of excise on said final products,
then the Central Government may allow the refund of such credit subject to such
procedure, conditions and limitations, as may be specified by notification.
Explanation : For the purposes of this rule, “duty” means the duties
specified in sub-rule (1) of rule 3 of these rules.
295 Inserted by Not. No. 6/2015-CE (NT) w,e,f 01.03.2015
201
5B. Refund of CENVAT credit to service providers providing
services taxed on reverse charge basis
A provider of service providing services notified under sub-section (2) of section
68 of the Finance Act and being unable to utilise the CENVAT credit availed on
inputs and input services for payment of service tax on such output services,
shall be allowed refund of such unutilised CENVAT credit subject to procedure,
safeguards, conditions and limitations, as may be specified by the Board by
notification in the Official Gazette296.
6. Obligation of a manufacturer or producer of final products and a
provider of output service297
The CENVAT credit shall not be allowed on such quantity of input as is used
in or in relation to the manufacture of exempted goods or for provision of
exempted services or input service as is used in or in relation to the manufacture
of exempted goods and their clearance upto the place of removal or for provision
of exempted services and the credit not allowed shall be calculated and paid by
the manufacturer or the provider of output service, in terms of the provisions of
sub-rule (2) or sub-rule (3), as the case may be :
Provided that the CENVAT credit on inputs shall not be denied to job
worker referred to in rule 12AA of the Central Excise Rules, 2002, on the ground
that the said inputs are used in the manufacture of goods cleared without
payment of duty under the provisions of that rule.
Explanation 1.- For the purposes of this rule, exempted goods or final
products as defined in clauses (d) and (h) of rule 2 shall include non-excisable
goods cleared for a consideration from the factory.
Explanation 2.- Value of non-excisable goods for the purposes of this rule,
shall be the invoice value and where such invoice value is not available, such
value shall be determined by using reasonable means consistent with the
principles of valuation contained in the Excise Act and the rules made there
under.
296 Procedure for refund for Partial RCM service providers provided vide Not. No.
12/2014–CE (NT)-
297 Substituted vide Notification No. 13/2016- CE(NT) w.e.f. 01.04.2016
202
Explanation 3. – For the purposes of this rule, exempted services as
defined in clause (e) of rule 2 shall include an activity, which is not a ‘service’ as
defined in section 65B(44) of the Finance Act, 1994.
Explanation 4. – Value of such an activity as specified above in Explanation
3, shall be the invoice/agreement/contract value and where such value is not
available, such value shall be determined by using reasonable means consistent
with the principles of valuation contained in the Finance Act, 1994 and the rules
made thereunder. (1) The CENVAT credit shall not be allowed on such quantity
of input used in or in relation to the manufacture of exempted goods or for
provision of exempted services, or input service used in or in relation to the
manufacture of exempted goods and their clearance upto the place of removal or
for provision of exempted services, except in the circumstances mentioned in
sub-rule (2).
Provided that the CENVAT credit on inputs shall not be denied to job
worker referred to in rule 12AA of the Central Excise Rules, 2002, on the ground
that the said inputs are used in the manufacture of goods cleared without
payment of duty under the provisions of that rule.
Explanation 1. – For the purposes of this rule, exempted goods or final products
as defined in clauses (d) and (h) of rule 2 shall include non-excisable goods
cleared for a consideration from the factory
Explanation 2. – Value of non-excisable goods for the purposes of this rule, shall
be the invoice value and where such invoice value is not available, such value
shall be determined by using reasonable means consistent with the principles of
valuation contained in the Excise Act and the rules made thereunder
(2) A manufacturer who exclusively manufactures exempted goods for
their clearance upto the place of removal or a service provider who exclusively
provides exempted services shall pay the whole amount of credit of input and
input services and shall, in effect, not be eligible for credit of any inputs and
input servicesWhere a manufacturer or provider of output service avails of
CENVAT credit in respect of any inputs or input services and manufactures such
final products or provides such output service which are chargeable to duty or
tax as well as exempted goods or services, then, the manufacturer or provider of
output service shall maintain separate accounts for -
203
(a) the receipt, consumption and inventory of inputs used –
(i) in or in relation to the manufacture of exempted goods;
(ii) in or in relation to the manufacture of dutiable final products
excluding exempted goods;
(iii) for the provision of exempted services;
(iv) for the provision of output services excluding exempted services;
and
(b) the receipt and use of input services —
(i) in or in relation to the manufacture of exempted goods and their
clearance upto the place of removal;
(ii) in or in relation to the manufacture of dutiable final products,
excluding exempted goods, and their clearance upto the place of removal;
(iii) for the provision of exempted services; and
(iv) for the provision of output services excluding exempted services,
and shall take CENVAT credit only on inputs under sub-clauses (ii) and (iv)
of clause (a) and input services under sub-clauses (ii) and (iv) of clause (b).
(3) A manufacturer who manufactures two classes of goods, namely :-
(i) non-exempted goods removed;
(ii) exempted goods removed; or
(b) a provider of output service who provides two classes of services,
namely:-
(i) non-exempted services;
(ii) exempted services,
shall follow any one of the following options applicable to him, namely
(i) Pay an amount equal to six per cent. of value of the exempted
goods and seven per cent. of value of the exempted services
subject to a maximum of the total credit available in the account
of the assessee at the end of the period to which the payment
relates; or
(ii) Pay an amount as determined under sub-rule (3A)
Provided that if any duty of excise is paid on the exempted goods, the
same shall be reduced from the amount payable under clause (i) :
204
Provided further that if any part of the value of a taxable service has been
exempted on the condition that no CENVAT credit of inputs and input
services, used for providing such taxable service, shall be taken then the
amount specified in clause (i) shall be seven per cent. of the value so
exempted
Provided also that in case of transportation of goods or passengers by rail,
the amount required to be paid under clause (i) shall be an amount equal
to two per cent. of value of the exempted services
Explanation 1.- If the manufacturer of goods or the provider of output
service, avails any of the option under this sub-rule, he shall exercise such
option for all exempted goods manufactured by him or, as the case may
be, all exempted services provided by him, and such option shall not be
withdrawn during the remaining part of the financial year
Explanation 2.- No CENVAT credit shall be taken on the duty or tax paid on
any goods and services that are not inputs or input services
Explanation 3.- For the purposes of this sub-rule and sub-rule(3A),-
(a) non-exempted goods removed‖ means the final products excluding
exempted goods manufactured and cleared upto the place of removal;
(b) exempted goods removed‖ means the exempted goods manufactured
and cleared upto the place of removal;
(c) non-exempted services‖ means the output services excluding exempted
services.
Notwithstanding anything contained in sub-rules (1) and (2), the
manufacturer of goods or the provider of output service, opting not to maintain
separate accounts, shall follow any one of the following options, as applicable to
him, namely :-
(i) pay an amount equal to six per cent. of value of the exempted goods
and exempted services; or
(ii) pay an amount as determined under sub-rule (3A); or
(iii) maintain separate accounts for the receipt, consumption and
205
inventory of inputs as provided for in clause (a) of sub-rule (2), take CENVAT
credit only on inputs under sub-clauses (ii) and (iv) of said clause (a) and pay an
amount as determined under sub-rule (3A) in respect of input services. The
provisions of sub-clauses (i) and (ii) of clause (b) and sub-clauses (i) and (ii) of
clause (c) of sub-rule (3A) shall not apply for such payment :
Provided that if any duty of excise is paid on the exempted goods, the
same shall be reduced from the amount payable under clause (i) :
Provided further that if any part of the value of a taxable service has
been exempted on the condition that no CENVAT credit of inputs and input
services, used for providing such taxable service, shall be taken then the amount
specified in clause (i) shall be six per cent. of the value so exempted.
Provided also that in case of transportation of goods or passengers by rail
the amount required to be paid under clause (i) shall be an amount equal to 2
per cent. of value of the exempted services.
Explanation I. - If the manufacturer of goods or the provider of output
service, avails any of the option under this sub-rule, he shall exercise such
option for all exempted goods manufactured by him or, as the case may be, all
exempted services provided by him, and such option shall not be withdrawn
during the remaining part of the financial year.
Explanation II.- For removal of doubt, it is hereby clarified that the credit
shall not be allowed on inputs used exclusively in or in relation to the
manufacture of exempted goods or for provision of exempted services and on
input services used exclusively in or in relation to the manufacture of exempted
goods and their clearance upto the place of removal or for provision of exempted
services.
Explanation III. - No CENVAT credit shall be taken on the duty or tax
paid on any goods and services that are not inputs or input services.
(3A)
For determination of amount required to be paid under clause (ii) of sub-
rule (3), the manufacturer of goods or the provider of output service shall follow
the following procedure and conditions, namely :-
(a) the manufacturer of goods or the provider of output service shall
intimate in writing to the Superintendent of Central Excise giving the following
particulars, namely :-
206
(i) name, address and registration number of the manufacturer of goods or
provider of output service;
(ii) date from which the option under this clause is exercised or proposed
to be exercised;
(iii) description of inputs and input services used exclusively in or in
relation to the manufacture of exempted goods removed or for provision of
exempted services and description of such exempted goods removed and such
exempted services provided;
(iv) description of inputs and input services used exclusively in or in
relation to the manufacture of non-exempted goods removed or for the provision
of non-exempted services and description of such non-exempted goods removed
and non-exempted services provided ;
(v) CENVAT credit of inputs and input services lying in balance as on the
date of exercising the option under this condition;
(b) the manufacturer of final products or the provider of output service
shall determine the credit required to be paid, out of this total credit of inputs
and input services taken during the month, denoted as T, in the following
sequential steps and provisionally pay every month, the amounts determined
under sub-clauses (i) and (iv), namely:-
(i) the amount of CENVAT credit attributable to inputs and input services
used exclusively in or in relation to the manufacture of exempted goods
removed or for provision of exempted services shall be called ineligible credit,
denoted as A, and shall be paid;
(ii) the amount of CENVAT credit attributable to inputs and input services
used exclusively in or in relation to the manufacture of non-exempted goods
removed or for the provision of non-exempted services shall be called
eligible credit, denoted as B, and shall not be required to be paid;
(iii) credit left after attribution of credit under sub-clauses (i) and (ii) shall
be called common credit, denoted as C and calculated as,-
C = T – (A + B);
Explanation.- Where the entire credit has been attributed under sub-
clauses (i) and (ii), namely ineligible credit or eligible credit, there shall be left
no common credit for further attribution.
(iv) the amount of common credit attributable towards exempted goods
207
removed or for provision of exempted services shall be called ineligible common
credit, denoted as D and calculated as follows and shall be paid, -
D = (E/F) x C;
where E is the sum total of –
(a) value of exempted services provided; and
(b) value of exempted goods removed,
during the preceding financial year;
where F is the sum total of-
(a) value of non-exempted services provided,
(b) value of exempted services provided,
(c) value of non-exempted goods removed, and
(d) value of exempted goods removed,
during the preceding financial year:
Provided that where no final products were manufactured or no output
service was provided in the preceding financial year, the CENVAT credit
attributable to ineligible common credit shall be deemed to be fifty per cent. of
the common credit;
(v) remainder of the common credit shall be called eligible common credit
and denoted as G, where,-
G = C - D;
Explanation.- For the removal of doubts, it is hereby declared that out of
the total credit T, which is sum total of A, B, D, and G, the manufacturer or the
provider of the output service shall be able to attribute provisionally and retain
credit of B and G, namely, eligible credit and eligible common credit and shall
provisionally pay the amount of credit of A and D, namely, ineligible credit
and ineligible common credit.
(vi) where manufacturer or the provider of the output service fails to pay
the amount determined under sub-clause (i) or sub-clause (iv), he shall be liable
to pay the interest from the due date of payment till the date of payment of such
amount, at the rate of fifteen per cent. per annum;
(c) the manufacturer or the provider of output service shall determine the
amount of CENVAT credit attributable to exempted goods removed and provision
of exempted services for the whole of financial year, out of the total credit
208
denoted as T (Annual) taken during the whole of financial year in the following
manner, namely :-
(i) the CENVAT credit attributable to inputs and input services used
exclusively in or in relation to the manufacture of exempted goods removed or
for provision of exempted services on the basis of inputs and input services
actually so used during the financial year, shall be called Annual ineligible credit
and denoted as A(Annual);
(ii) the CENVAT credit attributable to inputs and input services used
exclusively in or in relation to the manufacture of non-exempted goods removed
or for the provision of non-exempted services on the basis of inputs and input
services actually so used shall be called Annual eligible credit and denoted as
B(Annual);
(iii) common credit left for further attribution shall be denoted as C(Annual)
and calculated as, -
C(Annual) = T(Annual) – [A(Annual) + B(Annual)];
(iv) common credit attributable towards exempted goods removed or for
provision of exempted services shall be called Annual ineligible common credit,
denoted by D(Annual) and shall be calculated as, -
D(Annual) = (H/I) x C(Annual);
where H is sum total of-
(a)value of exempted services provided; and
(b) value of exempted goods removed;
during the financial year ;
where I is sum total of –
(a) value of non-exempted services provided,
(b) value of exempted services provided,
(c) value of non-exempted goods removed; and
(d) value of exempted goods removed;
during the financial year;
(d) the manufacturer or the provider of output service shall pay on or
before the 30th June of the succeeding financial year, an amount equal to
difference between the total of the amount of Annual ineligible credit and Annual
209
ineligible common credit and the aggregate amount of ineligible credit and
ineligible common credit for the period of whole year, namely, [{A(Annual) +
D(Annual)} – {(A+D) aggregated for the whole year)}], where the former of the
two amounts is greater than the later;
(e) where the amount under clause (d) is not paid by the 30th June of the
succeeding financial year, the manufacturer of goods or the provider of output
service, shall, in addition to the amount of credit so paid under clause (d), be
liable to pay on such amount an interest at the rate of fifteen per cent. per
annum, from the 30th June of the succeeding financial year till the date of
payment of such amount;
(f) the manufacturer or the provider of output service, shall at the end of
the financial year, take credit of amount equal to difference between the total of
the amount of the aggregate of ineligible credit and ineligible common credit
paid during the whole year and the total of the amount of annual ineligible credit
and annual ineligible common credit, namely, [{(A+D) aggregated for the whole
year)} – {A(Annual) + D(Annual)}], where the former of the two amounts is
greater than the later;
(g) the manufacturer of the goods or the provider of output service shall
intimate to the jurisdictional Superintendent of Central Excise, within a period of
fifteen days from the date of payment or adjustment, as per the provisions of
clauses (d), (e) and (f) , the following particulars, namely :-
(i) details of credit attributed towards eligible credit, ineligible credit,
eligible common credit and ineligible common credit, month-wise, for the whole
financial year, determined as per the provisions of clause (b);
(ii) CENVAT credit annually attributed to eligible credit, ineligible credit,
eligible common credit and ineligible common credit for the whole of financial
year, determined as per the provisions of clause (c);
(iii) amount determined and paid as per the provisions of clause (d), if any,
with the date of payment of the amount;
(iv) interest payable and paid, if any, determined as per the provisions of
clause (e); and
(v) credit determined and taken as per the provisions of clause (f), if any,
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with the date of taking the creditFor determination and payment of amount
payable under clause (ii) of sub-rule (3), the manufacturer of goods or the
provider of output service shall follow the following procedure and conditions,
namely :-
(a) while exercising this option, the manufacturer of goods or the
provider of output service shall intimate in writing to the Superintendent of
Central Excise giving the following particulars, namely :-
(i) name, address and registration No. of the manufacturer of goods or
provider of output service;
(ii) date from which the option under this clause is exercised or
proposed to be exercised;
(iii) description of dutiable goods or output services;
(iv) description of exempted goods or exempted services;
(v) CENVAT credit of inputs and input services lying in balance as on
the date of exercising the option under this condition;
(b) the manufacturer of goods or the provider of output service shall,
determine and pay, provisionally, for every month, -
(i) the amount equivalent to CENVAT credit attributable to inputs used
in or in relation to manufacture of exempted goods, denoted as A;
(ii) the amount of CENVAT credit attributable to inputs used for
provision of exempted services (provisional)= (B/C) multiplied by D, where B
denotes the total value of exempted services provided during the preceding
financial year, C denotes the total value of dutiable goods manufactured and
removed plus the total value of output services provided plus the total value of
exempted services provided, during the preceding financial year and D denotes
total CENVAT credit taken on inputs during the month minus A;
(iii) the amount attributable to input services used in or in relation to
manufacture of exempted goods and their clearance upto the place of removal or
provision of exempted services (provisional) = (E/F) multiplied by G, where E
denotes total value of exempted services provided plus the total value of
exempted goods manufactured and removed during the preceding financial year,
F denotes total value of output and exempted services provided, and total value
of dutiable and exempted goods manufactured and removed, during the
preceding financial year, and G denotes total CENVAT credit taken on input
services during the month;
211
(c) the manufacturer of goods or the provider of output service, shall
determine finally the amount of CENVAT credit attributable to exempted goods
and exempted services for the whole financial year in the following manner,
namely :-
(i) the amount of CENVAT credit attributable to inputs used in or in
relation to manufacture of exempted goods, on the basis of total quantity of
inputs used in or in relation to manufacture of said exempted goods, denoted as
H;
(ii) the amount of CENVAT credit attributable to inputs used for
provision of exempted services = (J/K) multiplied by L, where J denotes the total
value of exempted services provided during the financial year, K denotes the
total value of dutiable goods manufactured and removed plus the total value of
output services provided plus the total value of exempted services provided,
during the financial year and L denotes total CENVAT credit taken on inputs
during the financial year minus H;
(iii) the amount attributable to input services used in or in relation to
manufacture of exempted goods and their clearance upto the place of removal or
provision of exempted services = (M/N) multiplied by P, where M denotes total
value of exempted services provided plus the total value of exempted goods
manufactured and removed during the financial year, 1N denotes total value of
output and exempted services provided, and total value of dutiable and
exempted goods manufactured and removed, during the financial year, and 1P
denotes total CENVAT credit taken on input services during the financial year;
(d) the manufacturer of goods or the provider of output service, shall
pay an amount equal to the difference between the aggregate amount
determined as per condition (c) and the aggregate amount determined and paid
as per condition (b), on or before the 30th June of the succeeding financial year,
where the amount determined as per condition (c) is more than the amount
paid;
(e) the manufacturer of goods or the provider of output service, shall,
in addition to the amount short-paid, be liable to pay interest at the rate of
twenty-four per cent. per annum from the due date, i.e., 30th June till the date
of payment, where the amount short-paid is not paid within the said due date;
(f) where the amount determined as per condition (c) is less than the
amount determined and paid as per condition (b), the said manufacturer of
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goods or the provider of output service may adjust the excess amount on his
own, by taking credit of such amount;
(g) the manufacturer of goods or the provider of output service shall
intimate to the jurisdictional Superintendent of Central Excise, within a period of
fifteen days from the date of payment or adjustment, as per condition (d) and
(f) respectively, the following particulars, namely :-
(i) details of CENVAT credit attributable to exempted goods and
exempted services, monthwise, for the whole financial year, determined
provisionally as per condition (b),
(ii) CENVAT credit attributable to exempted goods and exempted
services for the whole financial year, determined as per condition (c),
(iii) amount short paid determined as per condition (d), alongwith the
date of payment of the amount short-paid,
(iv) interest payable and paid, if any, on the amount short-paid,
determined as per condition (e), and
(v) credit taken on account of excess payment, if any, determined as
per condition (f);
(h) where the amount equivalent to CENVAT credit attributable to
exempted goods or exempted services cannot be determined provisionally, as
prescribed in condition (b), due to reasons that no dutiable goods were
manufactured and no output service was provided in the preceding financial
year, then the manufacturer of goods or the provider of output service is not
required to determine and pay such amount provisionally for each month, but
shall determine the CENVAT credit attributable to exempted goods or exempted
services for the whole year as prescribed in condition (c) and pay the amount so
calculated on or before 30th June of the succeeding financial year.
(i) where the amount determined under condition (h) is not paid within
the said due date, i.e., the 30th June, the manufacturer of goods or the provider
of output service shall, in addition to the said amount, be liable to pay interest at
the rate of twenty four per cent. per annum from the due date till the date of
payment.
Explanation I to III * * *
213
(3AA) Where a manufacturer or a provider of output service has failed to
exercise the option under sub-rule (3) and follow the procedure provided under
sub-rule (3A), the Central Excise Officer competent to adjudicate a case based
on amount of CENVAT credit involved, may allow such manufacturer or provider
of output service to follow the procedure and pay the amount referred to in
clause (ii) of sub-rule (3), calculated for each of the months, mutatis-mutandis
in terms of clause (c) of sub-rule (3A), with interest calculated at the rate of
fifteen per cent. per annum from the due date for payment of amount for each
of the month, till the date of payment thereof.
(3AB) Assessee who has opted to pay an amount under clause (ii) or clause (iii)
of sub-rule (3) in the financial year 2015-16, shall pay the amount along with
interest or take credit for the said financial year in terms of clauses ( c), (d), (e),
(f), (g), (h) or (i) of sub-rule (3A), as they prevail on the day of publication of
this notification and for this purpose these provisions shall be deemed to be in
existence till the 30th June, 2016.
(3B) A banking company and a financial institution including a non-banking
financial company, engaged in providing services by way of extending deposits,
loans or advances, in addition to options given in sub-rules (1), (2) and (3),
shall have the option to pay for every month an amount equal to fifty per cent.
of the CENVAT credit availed on inputs and input services in that month.
Notwithstanding anything contained in sub-rules (1), (2) and (3), a banking
company and a financial institution including a non-banking financial company,
engaged in providing services by way of extending deposits, loans or advances
shall pay for every month an amount equal to fifty per cent. of the CENVAT
credit availed on inputs and input services in that month.
(3C) * * * *
(3D) Payment of an amount under sub-rule (3) shall be deemed to be CENVAT
credit not taken for the purpose of an exemption notification wherein any
exemption is granted on the condition that no CENVAT credit of inputs and input
services shall be taken.
Explanation I. - “Value” for the purpose of sub-rules (3) and (3A), —
214
(a) shall have the same meaning as assigned to it under section 67 of
the Finance Act, read with rules made thereunder or, as the case
may be, the value determined under section 3, 4 or 4A of the
Excise Act, read with rules made thereunder;
(b) in the case of a taxable service, when the option available under
sub-rules (7), (7A), (7B) or (7C) of rule 6 of the Service Tax Rules,
1994, has been availed, shall be the value on which the rate of
service tax under section 66B of the Finance Act, read with an
exemption notification, if any, relating to such rate, when applied
for calculation of service tax results in the same amount of tax as
calculated under the option availed;
(c) in case of trading, shall be the difference between the sale price
and the cost of goods sold (determined as per the generally
accepted accounting principles without including the expenses
incurred towards their purchase) or ten per cent. of the cost of
goods sold, whichever is more;
(d) in case of trading of securities, shall be the difference between the
sale price and the purchase price of the securities traded or one
per cent. of the purchase price of the securities traded, whichever
is more;
(e) shall not include the value of services by way of extending
deposits, loans or advances in so far as the consideration is
represented by way of interest or discount.
Explanation II. - The amount mentioned in sub-rules (3), (3A) and (3B),
unless specified otherwise, shall be paid by the manufacturer of goods or the
provider of output service by debiting the CENVAT credit or otherwise on or
before the 5th day of the following month except for the month of March, when
such payment shall be made on or before the 31st day of the month of March.
Explanation III. - If the manufacturer of goods or the provider of output service
fails to pay the amount payable under sub-rules (3), (3A) and (3B), it shall be
recovered, in the manner as provided in rule 14, for recovery of CENVAT credit
wrongly taken.
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Explanation IV. - In case of a manufacturer who avails the exemption under a
notification based on the value of clearances in a financial year and a service
provider who is an individual or proprietary firm or partnership firm, the
expressions, “following month” and “month of March” occurring in sub-rules (3)
and (3A) shall be read respectively as “following quarter” and “quarter ending
with the month of March”.
(4)
No CENVAT credit shall be allowed on capital goods used exclusively in the
manufacture of exempted goods or in providing exempted services for a period
of two years from the date of commencement of the commercial production or
provision of services, as the case may be, other than the final products or output
services which are exempt from the whole of the duty of excise leviable thereon
under any notification where exemption is granted based upon the value or
quantity of clearances made or services provided in a financial year:
Provided that where capital goods are received after the date of
commencement of commercial production or provision of services, as the case
may be, the period of two years shall be computed from the date of installation
of such capital goods No CENVAT credit shall be allowed on capital goods which
are used exclusively in the manufacture of exempted goods or in providing
exempted services, other than the final products which are exempt from the
whole of the duty of excise leviable thereon under any notification where
exemption is granted based upon the value or quantity of clearances made in a
financial year.
(5) * * *
(6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable
in case the excisable goods removed without payment of duty are either -
(i) cleared to a unit in a special economic zone or to a developer of a
special economic zone for their authorised operations; or
(ii) cleared to a hundred per cent. export-oriented undertaking; or
(iii) cleared to a unit in an Electronic Hardware Technology Park or
Software Technology Park; or
(iv) supplied to the United Nations or an international organization for their
official use or supplied to projects funded by them, on which
exemption of duty is available under notification of the Government of
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India in the Ministry of Finance (Department of Revenue) No. 108/95-
Central Excise, dated the 28th August, 1995, number G.S.R. 602 (E),
dated the 28th August, 1995; or
(iva) supplied for the use of foreign diplomatic missions or consular
missions or career consular offices or diplomatic agents in terms of the
provisions of Notification No. 12/2012-Central Excise, dated the 17th
March, 2012, number G.S.R. 163(E), dated the 17th March, 2012; or
(v) cleared for export under bond in terms of the provisions of the Central
Excise Rules, 2002; or
(vi) gold or silver falling within Chapter 71 of the said First Schedule,
arising in the course of manufacture of copper or zinc by smelting; or
(vii) all goods which are exempt from the duties of customs leviable under
the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and
the additional duty leviable under sub-section (1) of section 3 of the
said Customs Tariff Act when imported into India and are supplied, —
(a) against International Competitive Bidding; or
(b) to a power project from which power supply has been tied up
through tariff based competitive bidding; or
(c) to a power project awarded to a developer through tariff based
competitive bidding,
in terms of Notification No. 12/2012-Central Excise, dated the 17th March,
2012;
(viii) supplies made for setting up of solar power generation projects or
facilities.
(7) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable
in case the taxable services are provided, without payment of service
tax, to a unit in a Special Economic Zone or to a developer of a Special
Economic Zone for their authorised operations or when a service is
exported or when a service is provided or agreed to be provided by
way of transportation of goods by a vessel from customs station of
clearance in India to a place outside India298.
(8) For the purpose of this rule, a service provided or agreed to be
provided shall not be an exempted service when :-
298 Inserted vide Notification No. 13/2016 – CE(NT) w.e.f. 01.03.2016
217
(a) the service satisfies the conditions specified under rule 6A of the
Service Tax Rules, 1994 and the payment for the service is to be
received in convertible foreign currency; and
(b) such payment has not been received for a period of six months or
such extended period as maybe allowed from time-to-time by the
Reserve Bank of India, from the date of provision.
Provided that if such payment is received after the specified or extended period allowed
by the Reserve Bank of India but within one year from such period, the service provider
shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid
earlier in terms of sub rule (3) to the extent it relates to such payment, on the basis of
documentary evidence of the payment so received299
7. Manner of distribution of credit by input service distributor 300
The input service distributor shall distribute the CENVAT credit in respect of the
service tax paid on the input service to its manufacturing units or unit providing
output service or an outsourced manufacturing units, as defined in Explanation
4, subject to the following conditions, namely :—
(a) the credit distributed against a document referred to in rule 9 does not
exceed the amount of service tax paid thereon;
(b) the credit of service tax attributable as input service to a particular unit shall
be distributed only to that unit;
(c) the credit of service tax attributable as input service to more than one unit
but not to all the units shall be distributed only amongst such units to which the
input service is attributable and such distribution shall be pro rata on the basis
of the turnover of such units, during the relevant period, to the total turnover of
all such units to which such input service is attributable and which are
operational in the current year, during the said relevant period;
(d) the credit of service tax attributable as input service to all the units shall be
distributed to all the units pro rata on the basis of the turnover of such units
during the relevant period to the total turnover of all the units, which are
299 Inserted from 11 July 2014 vide Not. No. 21/2014-CE (NT)
300 Substituted vide Notification No. 13/2016 – CE(NT) w.e.f. 01.04.2016
218
operational in the current year, during the said relevant period;
(e) outsourced manufacturing unit shall maintain separate account for input
service credit received from each of the input service distributors and shall use it
only for payment of duty on goods manufactured for the input service distributor
concerned;
(f) credit of service tax paid on input services, available with the input service
distributor, as on the 31st of March, 2016, shall not be transferred to any
outsourced manufacturing unit and such credit shall be distributed amongst the
units excluding the outsourced manufacturing units.
Explanation.-The provision of this clause shall, mutatis-mutandis, apply to any
outsourced manufacturer commencing production of goods on or after the 1st of
April, 2016;
(g) provisions of rule 6 shall apply to the units manufacturing goods or provider
of output service and shall not apply to the input service distributor.
Explanation 1.- For the purposes of this rule, ‘unit’ includes the premises of a
provider of output service or the premises of a manufacturer including the
factory, whether registered or otherwise or the premises of an outsourced
manufacturing unit.
Explanation 2.–For the purposes of this rule, the total turnover shall be
determined in the same manner as determined under rule 5:
Provided that the turnover of an outsourced manufacturing unit shall be the
turnover of goods manufactured by such outsourced manufacturing unit for the
input service distributor.
Explanation 3.– For the purposes of this rule, the ‘relevant period’ shall be, -
(a) if the assessee has turnover in the ‗financial year‘ preceding to the year
during which credit is to be distributed for month or quarter, as the case maybe,
219
the said financial year; or;
(b) if the assessee does not have turn over for some or all the units in the
preceding financial year, the last quarter for which details of turnover of all the
units are available, previous to the month or quarter for which credit is to be
distributed.
Explanation 4.– For the purposes of this rule, ‘outsourced manufacturing unit’
means a job-worker who is liable to pay duty on the value determined under rule
10A of the Central Excise Valuation (Determination of Price of Excisable Goods)
Rules, 2000 on the goods manufactured for the input service distributor or a
manufacturer who manufactures goods, for the input service distributor under a
contract, bearing the brand name of such input service distributor and is liable to
pay duty on the value determined under section 4A of the Excise Act.The input
service distributor may distribute the CENVAT credit in respect of the service tax
paid on the input service to its manufacturing units or units providing output
service, subject to the following conditions, namely :—
(a) the credit distributed against a document referred to in rule 9 does not
exceed the amount of service tax paid thereon;
(b) credit of service tax attributable to service used by one or more units
exclusively engaged in manufacture of exempted goods or providing of
exempted services shall not be distributed;
(c) credit of service tax attributable to service used wholly by a unit shall
be distributed only to that unit; and
(d) credit of service tax attributable to service used by more than one unit
shall be distributed pro rata on the basis of the turnover of such units
during the relevant period to the total turnover of all its units, which
are operational in the current year, during the said relevant period.
Explanation 1. - For the purposes of this rule, “unit” includes the
premises of a provider of output service and the premises of a manufacturer
including the factory, whether registered or otherwise.
Explanation 2. - For the purposes of this rule, the total turnover shall be
determined in the same manner as determined under rule 5.
Explanation 3. – For the purposes of this rule, the ‘relevant period’ shall
220
be,-
(a) If the assessee has turnover in the ‘financial year’ preceding to the year
during which credit is to be distributed for month or quarter, as the case may
be, the said financial year; or
(b) If the assessee does not have turnover for some or all the units in the
preceding financial year, the last quarter for which details of turnover of all
the units are available, previous to the month or quarter for which credit is
to be distributed.
7A. Distribution of credit on inputs by the office or any other premises
of output service provider
(1) A provider of output service shall be allowed to take credit on inputs and
capital goods received, on the basis of an invoice or a bill or a challan issued by
an office or premises of the said provider of output service, which receives
invoices, issued in terms of the provisions of the Central Excise Rules, 2002,
towards the purchase of inputs and capital goods.
(2) The provisions of these rules or any other rules made under the
Central Excise Act, 1944, as made applicable to a first stage dealer or a second
stage dealer, shall mutatis mutandis apply to such office or premises of the
provider of output service.
7B Distribution of credit on inputs by warehouse of manufacturer. -
(1) A manufacturer having one or more factories, shall be allowed to take credit
on inputs received under the cover of an invoice issued by a warehouse of the
said manufacturer, who receives inputs under cover of invoices, issued in terms
of the provisions of the Central Excise Rules, 2002, towards the purchase of such
inputs.
(2) The provisions of these rules or any other rules made under the Excise Act
as applicable to a first stage dealer or a second stage dealer, shall, mutatis
mutandis, apply to such warehouse of the manufacturer.301
8. Storage of input outside the factory of the manufacturer
The Deputy Commissioner of Central Excise or the Assistant Commissioner of
Central Excise, as the case may be, having jurisdiction over the factory of a
301 Inserted vide Notification No. 13/2016 – CE(NT) w.e.f. 01.04.2016
221
manufacturer of the final products may, in exceptional circumstances having
regard to the nature of the goods and shortage of storage space at the premises
of such manufacturer, by an order, permit such manufacturer to store the input
in respect of which CENVAT credit has been taken, outside such factory, subject
to such limitations and conditions as he may specify :
Provided that where such input is not used in the manner specified in
these rules for any reason whatsoever, the manufacturer of the final products
shall pay an amount equal to the credit availed in respect of such input.
9. Documents and accounts
(1) The CENVAT credit shall be taken by the manufacturer or the provider of
output service or input service distributor, as the case may be, on the basis of
any of the following documents, namely :-
(a) an invoice issued by -
(i) a manufacturer or a service provider for clearance of a
manufacturer for clearance of -302
(I) inputs or capital goods from his factory or depot or from the
premises of the consignment agent of the said manufacturer or
from any other premises from where the goods are sold by or on
behalf of the said manufacturer;
(II) inputs or capital goods as such;
(ii) an importer;
(iii) an importer from his depot or from the premises of the
consignment agent of the said importer if the said depot or the
premises, as the case may be, is registered in terms of the
provisions of Central Excise Rules, 2002;
(iv) a first stage dealer or a second stage dealer, as the case may be,
in terms of the provisions of Central Excise Rules, 2002; or
(b) a supplementary invoice, issued by a manufacturer or importer of
inputs or capital goods in terms of the provisions of Central Excise
Rules, 2002 from his factory or depot or from the premises of the
consignment agent of the said manufacturer or importer or from any
other premises from where the goods are sold by, or on behalf of, the
said manufacturer or importer, in case additional amount of excise
302 Inserted vide Notification No. 13/2016 – CE(NT) w.e.f. 01.04.2016
222
duties or additional duty leviable under section 3 of the Customs Tariff
Act, has been paid, except where the additional amount of duty
became recoverable from the manufacturer or importer of inputs or
capital goods on account of any non-levy or short-levy by reason of
fraud, collusion or any wilful mis-statement or suppression of facts or
contravention of any provisions of the Excise Act, or of the Customs
Act, 1962 (52 of 1962) or the rules made thereunder with intent to
evade payment of duty.
Explanation. - For removal of doubts, it is clarified that
supplementary invoice shall also include challan or any other similar
document evidencing payment of additional amount of additional duty
leviable under section 3 of the Customs Tariff Act; or
(bb) a supplementary invoice, bill or challan issued by a provider of
output service, in terms of the provisions of Service Tax Rules, 1994
except where the additional amount of tax became recoverable from
the provider of service on account of non-levy or non-payment or
short-levy or short-payment by reason of fraud or collusion or wilful
mis-statement or suppression of facts or contravention of any of the
provisions of the Finance Act or of the rules made thereunder with the
intent to evade payment of service tax; or
(c) a bill of entry; or
(d) a certificate issued by an appraiser of customs in respect of goods
imported through a Foreign Post Office; or
(e) a challan evidencing payment of service tax, by the service recipient as
the person liable to pay service tax; or
(f) an invoice303, a bill or challan issued by a provider of input service on
or after the 10th day of September, 2004; or
(g) an invoice, bill or challan issued by an input service distributor under
rule 4A of the Service Tax Rules, 1994 :
Provided that the credit of additional duty of customs levied under sub-
section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975) shall not be
allowed if the invoice or the supplementary invoice, as the case may be, bears
303 Debit notes containing the information like the service provider's name and address,
service tax registration number, nature of service provided, value and service tax paid
are valid documents for availing CENVAT Credit as held by the Tribunal in a number of
judgments [2013-TIOL-836-CESTAT-DEL]
223
an indication to the effect that no credit of the said additional duty shall be
admissible.
(2) No CENVAT credit under sub-rule (1) shall be taken unless all the
particulars as prescribed under the Central Excise Rules, 2002 or the Service Tax
Rules, 1994, as the case may be, are contained in the said document :
Provided that if the said document does not contain all the particulars but
contains the details of duty or service tax payable, description of the goods or
taxable service, assessable value, Central Excise or Service tax registration
number of the person issuing the invoice, as the case may be, name and
address of the factory or warehouse or premises of first or second stage dealers
or provider of output service, and the Deputy Commissioner of Central Excise or
the Assistant Commissioner of Central Excise, as the case may be, is satisfied
that the goods or services covered by the said document have been received and
accounted for in the books of the account of the receiver, he may allow the
CENVAT credit.
(3) * * * *
(4) The CENVAT credit in respect of input or capital goods purchased from
a first stage dealer or second stage dealer shall be allowed only if such first
stage dealer or second stage dealer, as the case may be, has maintained records
indicating the fact that the input or capital goods was supplied from the stock on
which duty was paid by the producer of such input or capital goods and only an
amount of such duty on pro rata basis has been indicated in the invoice issued
by him.
Provided that provisions of this sub-rule shall apply mutatis mutandis to an
importer who issues an invoice on which CENVAT credit can be taken
(5) The manufacturer of final products or the provider of output service
shall maintain proper records for the receipt, disposal, consumption and
inventory of the input and capital goods in which the relevant information
regarding the value, duty paid, CENVAT credit taken and utilized, the person
from whom the input or capital goods have been procured is recorded and the
burden of proof regarding the admissibility of the CENVAT credit shall lie upon
the manufacturer or provider of output service taking such credit.
(6) The manufacturer of final products or the provider of output service
shall maintain proper records for the receipt and consumption of the input
services in which the relevant information regarding the value, tax paid, CENVAT
224
credit taken and utilized, the person from whom the input service has been
procured is recorded and the burden of proof regarding the admissibility of the
CENVAT credit shall lie upon the manufacturer or provider of output service
taking such credit.
(7) The manufacturer of final products shall submit within ten days from
the close of each month to the Superintendent of Central Excise, a monthly
return in the form specified, by notification, by the Board :
Provided that where a manufacturer is availing exemption under a
notification based on the value or quantity of clearances in a financial year, he
shall file a quarterly return in the form specified, by notification, by the Board
within ten days after the close of the quarter to which the return relates.
(8) A first stage dealer or a second stage dealer or a registered
importer304, as the case may be, shall submit within fifteen days from the close
of each quarter of a year to the Superintendent of Central Excise, a return in the
form specified, by notification, by the Board305:
Provided that the first stage dealer or second stage dealer or a registered
importer306, as the case may be, shall submit the said return electronically.
(9) The provider of output service availing CENVAT credit, shall submit a
half yearly return in form specified, by notification, by the Board to the
Superintendent of Central Excise, by the end of the month following the
particular quarter or half year.
(10) The input service distributor, shall furnish a half yearly return in such form
as may be specified, by notification, by the Board, giving the details of credit
received and distributed during the said half year to the jurisdictional
Superintendent of Central Excise, not later than the last day of the month
following the half year period.
(11) The provider of output service, availing CENVAT credit referred to in
sub-rule (9) or the input service distributor referred to in sub-rule (10), as the
case may be, may submit a revised return to correct a mistake or omission
within a period of sixty days from the date of submission of the return under
sub-rule (9) or sub-rule (10), as the case may be.
304 Inserted vide Not. No. 09/2014-CE (NT) dated 28.02.2014
305 Quarterly Return provided through Not. No. 11/2014–CE (N.T.)
306 Inserted vide Not. No. 09/2014-CE (NT) dated 28.02.2014
225
9A. Information relating to principal inputs
(1) A manufacturer of final products or provider of output services, shall submit
to the Superintendent of Central Excise an annual return for each financial year,
by the 30th day of November of the succeeding year, in the form as specified by
a notification by the Board307A manufacturer of final products shall furnish to the
Superintendent of Central Excise, annually by 30th April of each Financial Year, a
declaration in the Form specified, by a notification, by the Board, in respect of
each of the excisable goods manufactured or to be manufactured by him, the
principal inputs and the quantity of such principal inputs required for use in the
manufacture of unit quantity of such final products :
Provided that for the year 2004-05, such information shall be furnished latest
by 31st December, 2004 :
* * * * *
(2) The provisions of rule 12 of the Central Excise Rules, 2002, in so far
as they relate to annual return shall, mutatis-mutandis, apply to the annual
return required to be filed under this rule.308If a manufacturer of final products
intends to make any alteration in the information so furnished under sub-rule
(1), he shall furnish information to the Superintendent of Central Excise together
with the reasons for such alteration before the proposed change or within 15
days of such change in the Form specified by the Board under sub-rule (1).
(3) A manufacturer of final products shall submit, within ten days from
the close of each month, to the Superintendent of Central Excise, a monthly
return in the Form specified, by a notification, by the Board, in respect of
information regarding the receipt and consumption of each principal inputs with
reference to the quantity of final products manufactured by him :
* * * * *
(4) The Central Government may, by notification and subject to such
conditions or limitations, as may be specified in such notification, specify
manufacturers or class of manufacturers who may not be required to furnish
declaration mentioned in sub-rule (1) or monthly return mentioned in sub-rule
(3).
(5) Every assessee shall file electronically, the declaration or the return,
as the case may be, specified in this rule.
307 Substituted vide Notification No. 13/2016 – CE(NT) w.e.f. 01.04.2016
308 Substituted vide Notification No. 13/2016 – CE(NT) w.e.f. 01.04.2016
226
Explanation. - For the purposes of this rule, “principal inputs”, means any
input which is used in the manufacture of final products where the cost of such
input constitutes not less than 10% of the total cost of raw materials for the
manufacture of unit quantity of a given final products.
10. Transfer of CENVAT credit
(1) If a manufacturer of the final products shifts his factory to another site or
the factory is transferred on account of change in ownership or on account
of sale, merger, amalgamation, lease or transfer of the factory to a joint
venture with the specific provision for transfer of liabilities of such factory,
then, the manufacturer shall be allowed to transfer the CENVAT credit lying
unutilized in his accounts to such transferred, sold, merged, leased or
amalgamated factory.
(2) If a provider of output service shifts or transfers his business on account of
change in ownership or on account of sale, merger, amalgamation, lease or
transfer of the business to a joint venture with the specific provision for
transfer of liabilities of such business, then, the provider of output service
shall be allowed to transfer the CENVAT credit lying unutilized in his
accounts to such transferred, sold, merged, leased or amalgamated
business.
(3) The transfer of the CENVAT credit under sub-rules (1) and (2) shall be
allowed only if the stock of inputs as such or in process, or the capital
goods is also transferred along with the factory or business premises to the
new site or ownership and the inputs, or capital goods, on which credit has
been availed of are duly accounted for to the satisfaction of the Deputy
Commissioner of Central Excise or, as the case may be, the Assistant
Commissioner of Central Excise.
10A. Transfer of CENVAT credit of additional duty leviable under
sub-section (5) of section 3 of the Customs Tariff Act
(1) A manufacturer or producer of final products, having more than one
registered premises, for each of which registration under the Central Excise
Rules, 2002 has been obtained on the basis of a common Permanent Account
Number under the Income-tax Act, 1961 (43 of 1961), may transfer unutilised
CENVAT credit of additional duty leviable under sub-section (5) of section 3 of
the Customs Tariff Act, lying in balance with one of his registered premises at
227
the end of a quarter, to his other registered premises by—
(i) making an entry for such transfer in the documents maintained under
rule 9;
(ii) issuing a transfer challan containing registration number, name and
address of the registered premises transferring the credit and receiving
such credit, the amount of credit transferred and the particulars of
such entry as mentioned in clause (i),
and such recipient premises may take CENVAT credit on the basis of the transfer
challan :
Provided that nothing contained in this sub-rule shall apply if the
transferring and recipient registered premises are availing the benefit of the
following notifications of the Government of India in the Ministry of Finance
(Department of Revenue), namely :-
(i) No. 32/99-Central Excise, dated the 8th July, 1999 G.S.R. 508(E),
dated the 8th July, 1999;
(ii) No. 33/99-Central Excise, dated the 8th July, 1999 G.S.R. 509(E),
dated the 8th July, 1999;
(iii) No. 39/2001-Central Excise, dated the 31st July, 2001 G.S.R. 565(E),
dated the 31st July, 2001;
(iv) No. 56/2002-Central Excise, dated the 14th November, 2002 G.S.R.
764(E), dated the 14th November, 2002;
(v) No. 57/2002-Central Excise, dated the 14th November, 2002 G.S.R..
765(E), dated the 14th November, 2002;
(vi) No. 56/2003-Central Excise, dated the 25th June, 2003 G.S.R. 513(E),
dated the 25th June, 2003;
(vii) No. 71/2003-Central Excise, dated the 9th September, 2003 G.S.R.
717(E), dated the 9th September, 2003;
(viii) No. 20/2007-Central Excise, dated the 25th April, 2007 G.S.R.
307(E), dated the 25th April, 2007; and
(ix) No. 1/2010-Central Excise, dated the 6th February, 2010 G.S.R. 62(E),
dated the 6th February, 2010.
(2) The manufacturer or producer shall submit the monthly return, as
specified under these rules, separately in respect of transferring and recipient
registered premises.
228
11. Transitional provision
(1) Any amount of credit earned by a manufacturer under the CENVAT
Credit Rules, 2002, as they existed prior to the 10th day of September, 2004 or
by a provider of output service under the Service Tax Credit Rules, 2002, as
they existed prior to the 10th day of September, 2004, and remaining unutilized
on that day shall be allowed as CENVAT credit to such manufacturer or provider
of output service under these rules, and be allowed to be utilized in accordance
with these rules.
(2) A manufacturer who opts for exemption from the whole of the duty of
excise leviable on goods manufactured by him under a notification based on the
value or quantity of clearances in a financial year, and who has been taking
CENVAT credit on inputs or input services before such option is exercised, shall
be required to pay an amount equivalent to the CENVAT credit, if any, allowed to
him in respect of inputs lying in stock or in process or contained in final products
lying in stock on the date when such option is exercised and after deducting the
said amount from the balance, if any, lying in his credit, the balance, if any, still
remaining shall lapse and shall not be allowed to be utilized for payment of duty
on any excisable goods, whether cleared for home consumption or for export.
(3) A manufacturer or producer of a final product shall be required to pay
an amount equivalent to the CENVAT credit, if any, taken by him in respect of
inputs received for use in the manufacture of the said final product and is lying
in stock or in process or is contained in the final product lying in stock, if, -
(i) he opts for exemption from whole of the duty of excise leviable on the
said final product manufactured or produced by him under a
notification issued under section 5A of the Act; or
(ii) the said final product has been exempted absolutely under section 5A
of the Act, and after deducting the said amount from the balance of
CENVAT credit, if any, lying in his credit, the balance, if any, still
remaining shall lapse and shall not be allowed to be utilized for
payment of duty on any other final product whether cleared for home
consumption or for export, or for payment of service tax on any output
service, whether provided in India or exported.
(4) A provider of output service shall be required to pay an amount
equivalent to the CENVAT credit, if any, taken by him in respect of inputs
received for providing the said service and is lying in stock or is contained in the
taxable service pending to be provided, when he opts for exemption from
229
payment of whole of the service tax leviable on such taxable service under a
notification issued under section 93 of the Finance Act, 1994 (32 of 1994) and
after deducting the said amount from the balance of CENVAT credit, if any, lying
in his credit, the balance, if any, still remaining shall lapse and shall not be
allowed to be utilized for payment of duty on any excisable goods, whether
cleared for home consumption or for export or for payment of service tax on any
other output service, whether provided in India or exported.
12. Special dispensation
In respect of inputs manufactured in factories located in specified areas
of North East region, Kutch district of Gujarat, State of Jammu and
Kashmir and State of Sikkim. —Notwithstanding anything contained in these
rules, but subject to the proviso to clause (i) of sub-rule (1) of Rule 3, where a
manufacturer has cleared any inputs or capital goods, in terms of notifications of
the Government of India in the Ministry of Finance (Department of Revenue) No.
32/99-Central Excise, dated the 8th July, 1999 G.S.R. 508(E), dated the 8th
July, 1999 or No. 33/99-Central Excise, dated the 8th July, 1999 G.S.R. 509(E),
dated the 8th July, 1999 or No. 39/2001-Central Excise, dated the 31st July,
2001 G.S.R. 565(E), dated the 31st July, 2001 or notification of the Government
of India in the erstwhile Ministry of Finance and Company Affairs (Department of
Revenue) No. 56/2002-Central Excise, dated the 14th November, 2002 G.S.R.
764(E), dated 14th November, 2002 or No. 57/2002-Central Excise, dated the
14th November, 2002 GSR 765(E), dated the 14th November, 2002 or
notification of the Government of India in the Ministry of Finance (Department of
Revenue) No. 56/2003-Central Excise, dated the 25th June, 2003 G.S.R. 513(E),
dated the 25th June, 2003 or 71/2003-Central Excise, dated the 9th September,
2003 G.S.R. 717(E), dated the 9th September, 2003, or No. 20/2007-Central
Excise, dated the 25th April, 2007 GSR 307(E), dated the 25th April, 2007 or
No.1/2010-Central Excise, dated the 6th February, 2010 [G.S.R. 62(E), dated
the 6th February, 2010]309 the CENVAT credit on such inputs or capital goods
shall be admissible as if no portion of the duty paid on such inputs or capital
goods was exempted under any of the said notifications.
12A. Procedure and facilities for large tax payer
Notwithstanding anything contained in these rules, the following procedure shall
309 Inserted vide Not. No. 2/2014-CE (NT) dated 20.01.2014
230
apply to a large tax payer, -
(1) A large tax payer may remove inputs, except motor spirit, commonly
known as petrol, high speed diesel and light diesel oil or capital goods, as
such, on which CENVAT credit has been taken, without payment of an
amount specified in sub-rule (5) of rule 3 of these rules, under the cover of a
transfer challan or invoice, from any of his registered premises (hereinafter
referred to as the sender premises) to his other registered premises, other
than a premises of a first or second stage dealer (hereinafter referred to as
the recipient premises), for further use in the manufacture or production of
final products in recipient premises subject to condition that -
(a) the final products are manufactured or produced using the said inputs
and cleared on payment of appropriate duties of excise leviable
thereon within a period of six months, from the date of receipt of the
inputs in the recipient premises; or
(b) the final products are manufactured or produced using the said inputs
and exported out of India, under bond or letter of undertaking within a
period of six months, from the date of receipt of the input goods in the
recipient premises,
and that any other conditions prescribed by the Commissioner of Central Excise,
Large Tax payer Unit in this regard are satisfied.
Explanation 1. — The transfer challan or invoice shall be serially
numbered and shall contain the registration number, name, address of the large
tax payer, description, classification, time and date of removal, mode of
transport and vehicle registration number, quantity of the goods and registration
number and name of the consignee :
Provided that if the final products manufactured or produced using the
said inputs are not cleared on payment of appropriate duties of excise leviable
thereon or are not exported out of India within the said period of six months
from the date of receipt of the input goods in the recipient premises, or such
inputs are cleared as such from the recipient premises, an amount equal to the
credit taken in respect of such inputs by the sender premises shall be paid by
the recipient premises with interest in the manner and rate specified under rule
14 of these rules.
Provided further that if such capital goods are used exclusively in the
manufacture of exempted goods, or such capital goods are cleared as such from
231
the recipient premises, an amount equal to the credit taken in respect of such
capital goods by the sender premises shall be paid by the recipient premises
with interest in the manner and rate specified under rule 14 of these rules.
Explanation 2. — If a large tax payer fails to pay any amount due in
terms of the first and second provisos, it shall be recovered along with interest
in the manner as provided under rule 14 of these rules :
Provided also that nothing contained in this sub-rule shall be applicable if
the recipient premises is availing following notifications of Government of India
in the Ministry of Finance (Department of Revenue), -
(i) No. 32/99-C.E., dated the 8th July, 1999 G.S.R. 508(E), dated
the 8th July, 1999;
(ii) No. 33/99-C.E., dated the 8th July, 1999 G.S.R. 509(E), dated
the 8th July, 1999;
(iii) No. 39/2001-C.E., dated the 31st July, 2001 G.S.R. 565(E),
dated the 31st July, 2001;
(iv) No. 56/2002-C.E., dated the 14th November, 2002 G.S.R.
764(E), dated the 14th November, 2002;
(v) No. 57/2002-C.E., dated 14th November, 2002 G.S.R.. 765(E),
dated the 14th November, 2002;
(vi) No. 56/2003-C.E., dated the 25th June, 2003 G.S.R. 513(E),
dated the 25th June, 2003;
(vii) No. 71/2003-C.E., dated the 9th September, 2003 G.S.R.
717(E), dated the 9th September, 2003; * * *
(viii) No. 20/2007-C.E., dated the 25th April, 2007 GSR 307(E), dated
the 25th April, 2007, and
(ix) No. 1/2010-Central Excise, dated the 6th February, 2010 G.S.R.
62(E), dated the 6th February, 2010 :
Provided also that nothing contained in this sub-rule shall be applicable to
an export-oriented unit or a unit located in a Electronic Hardware Technology
Park or Software Technology Park.
(2) The first recipient premises may take CENVAT credit of the amount
paid under first proviso to sub-rule (1) as if it was a duty paid by the sender
premises who removed such goods on the basis of a document showing payment
of such duties.
232
(3) CENVAT credit of the specified duties taken by a sender premises shall
not be denied or varied in respect of any inputs or capital goods, -
(a) removed as such under sub-rule (1) on the ground that the said inputs
or the capital goods have been removed without payment of an
amount specified in sub-rule (5) of rule 3 of these rules; or
(b) on the ground that the said inputs or capital goods have been used in
the manufacture of any intermediate goods removed without payment
of duty under sub-rule (1) of rule 12BB of Central Excise Rules, 2002.
Explanation. - For the purpose of this sub-rule “intermediate goods” shall
have the same meaning assigned to it in sub-rule (1) of rule 12BB of the Central
Excise Rules, 2002.
(4) A large tax payer may transfer, CENVAT credit taken, on or before the 10th
July, 2014, by one of his registered manufacturing premises310 or premises providing
taxable service to his other such registered premises by, -
(i) making an entry for such transfer in the record maintained under rule
9;
(ii) issuing a transfer challan containing registration number, name and
address of the registered premises transferring the credit as well as
receiving such credit, the amount of credit transferred and the
particulars of such entry as mentioned in clause (i),
and such recipient premises can take CENVAT credit on the basis of such
transfer challan as mentioned in clause (ii) :
Provided that such transfer or utilisation of CENVAT credit shall be subject
to the limitations prescribed under clause (b) of sub-rule (7) of rule 3 :
Provided further that nothing contained in this sub-rule shall be
applicable if the registered manufacturing premises is availing following
notifications of Government of India in the Ministry of Finance (Department of
Revenue), -
(i) No. 32/99-C.E., dated the 8th July, 1999 G.S.R. 508(E), dated the 8th
July, 1999;
(ii) No. 33/99-C.E., dated the 8th July, 1999 G.S.R. 509(E), dated the 8th
July, 1999;
(iii) No. 39/2001-C.E., dated the 31st July, 2001 G.S.R. 565(E), dated the
310 Substituted from 11 July 2014 vide Not. No. 21/2014-CE (NT)
233
31st July, 2001;
(iv) No. 56/2002-C.E., dated the 14th November, 2002 G.S.R. 764(E),
dated the 14th November, 2002;
(v) No. 57/2002-C.E., dated 14th November, 2002 G.S.R.. 765(E), dated
the 14th November, 2002;
(vi) No. 56/2003-C.E., dated the 25th June, 2003 G.S.R. 513(E), dated the
25th June, 2003;
(vii) No. 71/2003-C.E., dated the 9th September, 2003 G.S.R. 717(E),
dated the 9th September, 2003; * * *
(viii) No. 20/2007-C.E., dated the 25th April, 2007 GSR 307(E), dated the
25th April, 2007 and
(ix) No. 1/2010-Central Excise, dated the 6th February, 2010 G.S.R. 62(E),
dated the 6th February, 2010.
(5) A large tax payer shall submit a monthly return, as prescribed under
these rules, for each of the registered premises.
(6) Any notice issued but not adjudged by any of the Central Excise
Officer administering the Act or rules made thereunder immediately before the
date of grant of acceptance by the Chief Commissioner of Central Excise, Large
Tax payer Unit, shall be deemed to have been issued by Central Excise officers
of the said Unit.
(7) Provisions of these rules, insofar as they are not inconsistent with the
provisions of this rule shall mutatis mutandis apply in case of a large tax payer.
12AAA. Power to impose restrictions in certain types of cases
311Notwithstanding anything contained in these rules, where the Central Government,
having regard to the extent of misuse of CENVAT credit, nature and type of such misuse
and such other factors as may be relevant, is of the opinion that in order to prevent the
misuse of the provisions of CENVAT credit as specified in these rules, it is necessary in
the public interest to provide for certain measures including restrictions on a
manufacturer, an importer or, first stage and second stage dealer or an exporter, may
by notification in the Official Gazette, specify the nature of restrictions including
restrictions on utilization of CENVAT credit and suspension of registration in case of a
dealer and type of facilities to be withdrawn and procedure for issue of such order by the
Chief Commissioner of Central Excise.
Explanation.- For the purposes of this rule, it is hereby clarified that every proposal
initiated in terms of the procedure specified under notification no.05/2012-CE (N.T.)
dated the 12th March, 2012 published in the Gazette of India, Part II, Section 3, Sub-
311 Inserted vide Not. No. 15/2014-CE (NT) dated 21.03.2014
234
section (i) vide number G.S.R. 140(E), dated the 12th March, 2012, which is pending,
shall be treated as initiated in terms of the procedure specified under this rule and shall
be decided accordingly
13. Power of Central Government to notify goods for deemed CENVAT
credit
Notwithstanding anything contained in rule 3, the Central Government may, by
notification, declare the input or input service on which the duties of excise, or
additional duty of customs or service tax paid, shall be deemed to have been
paid at such rate or equivalent to such amount as may be specified in that
notification and allow CENVAT credit of such duty or tax deemed to have been
paid in such manner and subject to such conditions as may be specified in that
notification even if, in the case of input, the declared input, or in the case of
input service, the declared input service, as the case may be, is not used directly
by the manufacturer of final products, or as the case may be, by the provider of
output service, declared in that notification, but contained in the said final
products, or as the case may be, used in providing the output service.
14. Recovery of CENVAT credit wrongly taken or erroneously refunded
(1) (i) Where the CENVAT credit has been taken wrongly but not utilised, the
same shall be recovered from the manufacturer or the provider of output
service, as the case may be, and the provisions of section 11A of the Excise Act
or section 73 of the Finance Act, 1994 (32 of 1994), as the case may be, shall
apply mutatis mutandis for effecting such recoveries;
(ii) Where the CENVAT credit has been taken and utilised wrongly or has been
erroneously refunded, the same shall be recovered along with interest from the
manufacturer or the provider of output service, as the case may be, and the
provisions of sections 11A and 11AA of the Excise Act or sections 73 and 75 of
the Finance Act, 1994, as the case may be, shall apply mutatis mutandis for
effecting such recoveries 312
(2) For the purposes of sub-rule (1), all credits taken during a month shall be
deemed to have been taken on the last day of the month and the utilisation
thereof shall be deemed to have occurred in the following manner, namely: -
(i) the opening balance of the month has been utilised first;
312 Substituted by Not. No. 6/2015-CE (NT) w.e.f. 01.03.2015
235
(ii) credit admissible in terms of these rules taken during the month has been
utilised next;
(iii) credit inadmissible in terms of these rules taken during the
month has been utilised thereafter313
15. Confiscation and penalty
(1) If any person, takes or utilises CENVAT credit in respect of input or capital
goods or input services, wrongly or in contravention of any of the provisions of
these rules, then, all such goods shall be liable to confiscation and such person,
shall be liable to a penalty in terms of clause (a) or clause (b) of sub-section (1)
of section 11AC of the Excise Act or sub-section (1) of section 76 of the Finance
Act (32 of 1994), as the case may be314
(2) In a case, where the CENVAT credit in respect of input or capital
goods or input services has been taken or utilised wrongly by reason of fraud,
collusion or any wilful mis-statement or suppression of facts, or contravention of
any of the provisions of the Excise Act, or of the rules made thereunder with
intent to evade payment of duty, then, the manufacturer shall also be liable to
pay penalty in terms of the provisions of clause (c), clause (d) or clause (e) of
sub-section (1) of section 11AC of the Excise Act315 of the Excise Act.
(3) In a case, where the CENVAT credit in respect of input or capital
goods or input services has been taken or utilised wrongly by reason of fraud,
collusion or any wilful mis-statement or suppression of facts, or contravention of
any of the provisions of these rules or of the Finance Act or of the rules made
thereunder with intent to evade payment of service tax, then, the provider of
output service shall also be liable to pay penalty in terms of the provisions of
section 78 of the Finance Act.
(4) Any order under sub-rule (1), sub-rule (2) or sub-rule (3) shall be
issued by the Central Excise Officer following the principles of natural justice.
15A. General penalty
Whoever contravenes the provisions of these rules for which no penalty has
been provided in the rules, he shall be liable to a penalty which may extend to
five thousand rupees.
313 Deleted vide Notification No. 13/2016 – CE(NT) w.e.f. 01.04.2016
314 Substituted by Not. No. 6/2015-CE (NT) w.e.f. 01.03.2015
315 Substituted by Not. No. 6/2015-CE (NT) w.e.f. 01.03.2015
236
16. Supplementary provision
(1) Any notification, circular, instruction, standing order, trade notice or other
order issued under the CENVAT Credit Rules, 2002 or the Service Tax Credit
Rules, 2002, by the Central Government, the Central Board of Excise and
Customs, the Chief Commissioner of Central Excise or the Commissioner of
Central Excise, and in force at the commencement of these rules, shall, to the
extent it is relevant and consistent with these rules, be deemed to be valid and
issued under the corresponding provisions of these rules.
[(2) References in any rule, notification, circular, instruction, standing
order, trade notice or other order to the CENVAT Credit Rules, 2002 and any
provision thereof or, as the case may be, the Service Tax Credit Rules, 2002 and
any provision thereof shall, on the commencement of these rules, be construed
as references to the CENVAT Credit Rules, 2004 and any corresponding provision
thereof.]
237
11. SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT
SCHEME, 2013
316CHAPTER VI
SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013
Short Title
104. This Scheme may be called the Service Tax Voluntary Compliance
Encouragement Scheme, 2013.
Definitions
105. (1) In this Scheme, unless the context otherwise requires,—
(a) “Chapter” means Chapter V of the Finance Act, 1994;
(b) “declarant” means any person who makes a declaration under sub-section
(1) of section 107;
(c) “designated authority” means an officer not below the rank of Assistant
Commissioner of Central Excise as notified by the Commissioner of Central
Excise for the purposes of this Scheme;
(d) “prescribed” means prescribed by rules made under this Scheme;
(e) “tax dues” means the service tax due or payable under the Chapter or any
other amount due or payable under section 73A thereof, for the period
beginning from the 1st day of October, 2007 and ending on the 31st day of
December, 2012 including a cess leviable thereon under any other Act for
the time being in force, but not paid as on the 1st day of March, 2013.
(2) Words and expressions used herein and not defined but defined in the
Chapter or the rules made thereunder shall have the meanings respectively
assigned to them in the Chapter or the rules made thereunder.
Person who may make declaration of tax dues
106. (1) Any person may declare his tax dues in respect of which no
notice or an order of determination under section 72 or section 73 or section
73A of the Chapter has been issued or made before the 1st day of March,
2013:
Provided that any person who has furnished return under section 70 of the
Chapter and disclosed his true liability, but has not paid the disclosed amount of
service tax or any part thereof, shall not be eligible to make declaration for
the period covered by the said return:
Provided further that where a notice or an order of determination has been
issued to a person in respect of any period on any issue, no declaration shall be
made of his tax dues on the same issue for any subsequent period.
316 Effective from 10 May 2013
238
(2) Where a declaration has been made by a person against whom,—
(a) an inquiry or investigation in respect of a service tax not levied or not
paid or short-levied or short-paid has been initiated by way of —
(i) search of premises under section 82 of the Chapter; or
(ii) issuance of summons under section 14 of the Central Excise Act, 1944,
as made applicable to the Chapter under section 83 thereof; or
(iii) requiring production of accounts, documents or other evidence under the
Chapter or the rules made thereunder; or
(b) an audit has been initiated, and such inquiry, investigation or audit is
pending as on the 1st day of March, 2013, then, the designated authority
shall, by an order, and for reasons to be recorded in writing, reject such
declaration317.
Procedure for making declaration and payment of tax dues
107. (1) Subject to the provisions of this Scheme, a person may make a
declaration to the designated authority on or before the 31st day of
December, 2013 in such form and in such manner as may be prescribed.
(2) The designated authority shall acknowledge the declaration in such form and
in such manner as may be prescribed.
(3) The declarant shall, on or before the 31st day of December, 2013, pay not
less than fifty per cent. Of the tax dues so declared under sub-section (1)
and submit proof of such payment to the designated authority.
(4) The tax dues or part thereof remaining to be paid after the payment made
under sub-section (3) shall be paid by the declarant on or before the 30th
day of June, 2014:
Provided that where the declarant fails to pay said tax dues or part thereof on or
before the said date, he shall pay the same on or before the 31st day of
December, 2014 along with interest thereon, at such rate as is fixed under
section 75 or, as the case may be, section 73B of the Chapter for the period of
delay starting from the 1st day of July, 2014.
(5) Notwithstanding anything contained in sub-section (3) and sub-section (4),
any service tax which becomes due or payable by the declarant for the
month of January, 2013 and subsequent months shall be paid by him in
accordance with the provisions of the Chapter and accordingly, interest for
delay in payment thereof, shall also be payable under the Chapter.
(6) The declarant shall furnish to the designated authority details of payment
made from time to time under this Scheme along with a copy of
acknowledgement issued to him under sub-section (2).
317 ST, VCES, 2013 is part and parcel of the Finance Act, 1994, by virtue of the Finance
Act, 2013, thus order of rejection by the designated authority viz. Deputy
Commissioner of CE & ST is appealable under section 86 of the FA, 1994 – Barnala
Builders & Property Consultants 2013-VCESI-003-HC-P&H
239
(7) On furnishing the details of full payment of declared tax dues and the
interest, if any, payable under the proviso to sub-section (4) the designated
authority shall issue an acknowledgement of discharge of such dues to the
declarant in such form and in such manner as may be prescribed.
Immunity from penalty, interest and other proceeding
108. (1) Notwithstanding anything contained in any provision of the Chapter,
the declarant, upon payment of the tax dues declared by him under sub-section
(1) of section 107 and the interest payable under the proviso to sub-section (4)
thereof, shall get immunity from penalty, interest or any other proceeding under
the Chapter.
(2) Subject to the provisions of section 111, a declaration made under sub-
section (1) of section 107 shall become conclusive upon issuance of
acknowledgement of discharge under sub-section (7) of section 107 and no
matter shall be reopened thereafter in any proceedings under the Chapter
before any authority or court relating to the period covered by such
declaration.
No refund of amount paid under scheme
109. Any amount paid in pursuance of a declaration made under sub-section (1)
of section 107 shall not be refundable under any circumstances.
Tax dues declared but not paid
110. Where the declarant fails to pay the tax dues, either fully or in part, as
declared by him, such dues alongwith interest thereon shall be recovered under
the provisions of section 87 of the Chapter.
Failure to make true declaration
111. (1) Where the Commissioner of Central Excise has reasons to believe that
the declaration made by a declarant under this Scheme was substantially false,
he may, for reasons to be recorded in writing, serve notice on the declarant in
respect of such declaration requiring him to show cause why he should not pay
the tax dues not paid or short-paid.
(2) No action shall be taken under sub-section (1) after the expiry of one year
from the date of declaration.
(3) The show cause notice issued under sub-section (1) shall be deemed to have
been issued under section 73, or as the case may be, under section 73A of
the Chapter and the provisions of the Chapter shall accordingly apply.
Removal of doubts
112. For the removal of doubts, it is hereby declared that nothing contained in
this Scheme shall be construed as conferring any benefit, concession or
immunity on the declarant other than the benefit, concession or immunity
granted under section 108.
Power to remove difficulties
113. (1) If any difficulty arises in giving effect to the provisions of this Scheme,
the Central Government may, by order, not inconsistent with the provisions
of this Scheme, remove the difficulty:
240
Provided that no such order shall be made after the expiry of a period of two
years from the date on which the provisions of this Scheme come into force.
(2) Every order made under this section shall, as soon as may be after it is
made, be laid before each House of Parliament.
Power to make rules
114. (1) The Central Government may, by notification in the Official Gazette,
make rules for carrying out the provisions of this Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
(a) the form and the manner in which a declaration may be made under sub-
section (1) of section 107
(b) the form and the manner of acknowledging the declaration under sub-
section (2) of section 107;
(c) the form and the manner of issuing the acknowledgement of discharge of
tax dues under sub-section (7) of section 107;
(d) any other matter which is to be, or may be, prescribed, or in respect of
which provision is to be made, by rules.
(3) The Central Government shall cause every rule made under this Scheme to
be laid, as soon as may be after it is made, before each House of Parliament,
while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification
in the rule or both Houses agree that the rule should not be made, the rule
shall thereafter have effect only in such modified form or be of no effect, as
the case may be; so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously done under that
rule.
241
12. Service Tax Voluntary Compliance Encouragement Rules, 2013
NOTIFICATION NO
10/2013-ST, Dated: May 13, 2013
In exercise of the powers conferred by sub-sections (1) and (2) of section 114 of the
Finance Act, 2013 (17 of 2013), the Central Government hereby makes the following
rules regarding the form and manner of declaration, form and manner of
acknowledgement of declaration, manner of payment of tax dues and form and manner
of issuing acknowledgement of discharge of tax dues under the Service Tax Voluntary
Compliance Encouragement Scheme,2013,namely:-
1. Short title and commencement
(1) These rules may be called the Service Tax Voluntary Compliance Encouragement
Rules, 2013
(2) They shall come into force on the date of its publication in the Gazette of India.
2. Definitions
(1) In these rules, unless the context otherwise requires,-
(a) “Act” means the Finance Act, 2013;
(b) “Form” means the Forms annexed to these rules.
(c) “Scheme” means the Service Tax Voluntary Compliance Encouragement Scheme,
2013 as specified in the Act;
(2) Words and expressions used but not defined in these rules but defined in the Scheme
shall have the meanings respectively assigned to them in the Scheme.
3. Registration
Any person, who wishes to make a declaration under the Scheme, shall, if not already
registered, take registration under rule 4 of the Service Tax Rules, 1994.
4. Form of declaration
The declaration under sub-section (1) of section 107 of the Act, in respect of tax dues
under the Scheme shall be made in Form VCES -1.
5. Form of acknowledgment of declaration
The designated authority on receipt of declaration shall issue an acknowledgement
thereof, in Form VCES -2, within a period of seven working days from the date of receipt
of the declaration.
6. Payment of tax dues
(1) The tax dues payable under the Scheme along with interest, if any, under section
107 of the Act shall be paid to the credit of the Central Government in the manner
prescribed for the payment of service tax under the Service Tax Rules, 1994.
242
(2) The CENVAT credit shall not be utilised for payment of tax dues under the
Scheme318.
7. Form of acknowledgement of discharge
(1) The designated authority shall issue an acknowledgement of discharge under sub-
section (7) of section 107 of the Act, in Form VCES - 3.
(2) The acknowledgement of discharge shall be issued within a period of seven working
days from the date of furnishing of details of payment of tax dues in full along with
interest, if any, by the declarant.
FORM VCES-1
[In duplicate]
Declaration under sub section (1) of section 107 of the Act.
[See rule 4]
(Please read the instructions carefully before filling the form)
1. Name of the declarant
2 Address of the declarant
3 Telephone No.
4 E-mail id
5 Service Tax Code (STC No.)
6 Details of tax dues*
A Service tax `
318 VCES does not permit utilisation of CENVAT for payment of Service Tax under VCES
scheme. However, as regards availability of Service Tax paid in cash say under Reverse
Charge Mechanism, the same would be available. In this regard, the assessee can take
recourse to the judgment of the Larger Bench in the case of Bosch Chasis System India
Ltd (2008-TIOL-1764-CESTAT-DEL-LB) wherein it was held that in case the
assessee pays differential duty on receipt of show cause notice and taking recourse to
Settlement Scheme then it does not mean admission of fraud by assessee. The
Larger Bench observed that whether fraud was committed by assessee or not is a
question of fact to be decided basis appreciation of facts of each case. Thus, Rule
9(1)(bb) of CCR will not be applicable by de-fault. Further, it is pertinent to note that
as regards, Rule 9 (1) (e) of CCR there are no restrictions similar to 9 (1) (bb). Thus, in
scenario where assessee pays Service Tax under Reverse Charge Mechanism by
availing VCES, per-se denial will not be applicable
243
B Education cess `
C Secondary & Higher Education Cess `
D Amount under section 73A of the
Finance Act,1994
`
E Total Tax dues* [A+B+C+D] `
*Furnish a calculation sheet separately [for the purposes of calculation of tax dues, the
manner of calculation as prescribed in S. No. 3F (I), or as the case may be, the Part ‘B’ of
Form ST-3, as existed during relevant period may be used and calculation of tax dues may
be furnished tax return period wise, and service wise if the tax dues relates to more than one
service.]
VERIFICATION
I........................(name in block letters) son/daughter of Shri........................ solemnly declare
that I have read and understood the Service Tax Voluntary Compliance Encouragement
Scheme as contained in Chapter VI of the Finance Act 2013, and to the best of my
knowledge and belief -
(a) the information given in this declaration and the enclosures accompanying it are
correct and complete and the amount of tax dues and other particulars shown therein
are truly stated;
(b) the tax dues declared above do not attract the provisions of sub-section (1),
including the provisos thereto, of section 106 of the Act;
(c) no inquiry, investigation or audit is pending against the declarant as on the 1st day
of March 2013 as envisaged in sub-section (2) of section 106 of the Act;
I further declare that I am authorised to make this declaration and verify it on behalf of the
declarant in the capacity as ..............................
Enclosures:
S.
No.
Details of enclosure/statement annexed
1 Calculation sheet in respect of tax dues (refer S. No. 6 above and the instructions)
2 Any other documents (please specify)
Signature of the declarant/authorised person with stamp
Place: Date:
Declaration No. Date
(To be assigned by the department)
Instructions:
1. The Scheme has been prescribed in the Chapter VI of the Act. The provisions
contained therein may please be read carefully (refer www.cbec.gov.in).
2. This Form shall be submitted to the Central Excise Officer notified as designated
authority under section 105(c) of the Act.
244
3. The tax dues may be computed separately for each service if the tax dues relates to
more than one service during the period of declaration.
4. For calculation of tax dues, the manner as prescribed at S. No. 3F (I), or as the case
may be the Part ‘B’ of the Form ST-3, as existed during the relevant period, may be used and
calculation of tax dues may be furnished tax return period wise
5. Calculation sheet showing the tax dues calculation may please be enclosed with this
declaration.
6. Obtain an acknowledgment from the designated authority in form VCES -2.
7. The declarant may approach the designated authority for any clarification.
FORM VCES-2
[Acknowledgment of declaration issued under sub-section (2) of section 107 of the
Act]. [See rule 5]
No.
Receipt of a declaration filed under sub-section (1) of section 107 of the Act, as per
the details below, is acknowledged.
1 Declaration No. Date
2. Name of the declarant
3 Address of the declarant
4 STC No.
5 Tax dues declared `
6 Schedule for payment of tax dues
A Minimum amount to be paid on
or before the 31st Dec, 2013 (50% of
the tax dues)
`
B Remaining tax dues to be paid on
or before the 30th June, 2014
[Amount at S. No. 5(-)Amount at S. No. 6A]
`
C Any tax dues remaining unpaid as on 1st day of July,2014 shall be paid before
the 31st December,2014 along with interest, as prescribed under section 75 or as
the case may b, section 73B of the Finance Act, 1994 for the period of delay
245
starting from the 1st day of July,2014.
Signature, name and seal of designated authority
Place: Date:
__________________________________________________________________________
Instructions:
1. This acknowledgment has been issued on the basis of declaration furnished by the declarant
and it does not certify the correctness of the declaration made. This declaration does not certify
payment of any tax dues.
2. Certificate of discharge in form VCES -3 shall be issued only upon full payment of tax dues
along with interest if any, as per the details at S. No. 6 above.
3. If any amount declared as tax dues under the Scheme remain unpaid as on 1.1.2015, the same
shall be recoverable under section 87 of the Finance Act, 1994.
4. For any clarification, the declarant may get in touch with the designated authority
246
ACKNOWLEDGEMENT OF DISCHARGE
[Issued under sub-section (7) of section 107 of the Act]
[See rule 7]
No.
This acknowledgment of discharge has been issued under sub-section (7) of section 107 of the Act,
to ACKNOWLEDGE that the tax dues declared under sub-section (1) of section 107 of the Act have
been paid, in respect of declaration so made as per the following details.
1 Declaration No. Date
2. Name of the declarant
3 Address of the declarant
4 STC No.
5 Tax dues declared under the Scheme `
6 Payment of tax dues
A Tax dues paid on or before 31.12.2013 `
B Tax dues paid after 31.12.2013 but on
or before 30.6.2014
`
C Tax dues paid after 30.6.2014 but on or
before 31.12.2014
`
D Interest paid under section 107 (4) on
amount mentioned at ‘6C’
`
E Total amount paid (A+B+C+D) `
7 Details of challan(s)
Challan No(s)(CIN) Amount
Signature, name and seal of designated authority
Place: Date:
FORM VCES-3
247
13. Notifications
14/2012 - RESEARCH & DEVELOPMENT CESS
Notification No. 14/2012-S.T.
Dated 17-3-2012
Import of technology — Exemption from Service tax equal to Cess
payable
In exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is
necessary in the public interest so to do, hereby exempts the taxable service
involving import of technology, from so much of the service tax leviable thereon
under section 66B of the said Act, as is equivalent to the amount of cess payable on
the said import of technology under the provisions of section 3 of the Research and
Development Cess Act, 1986 (32 of 1986), subject to the following conditions,
namely :-
(a) that the said amount of Research and Development Cess is paid within six
months from the date of invoice or in case of associated enterprises, the
date of credit in the books of account :
Provided that the exemption shall be available only if the Research and
Development Cess is paid at the time or before the payment for the
service;
(b) that the records of Research and Development Cess are maintained for
establishing the linkage between the invoice or the credit entry, as the
case may be, and the Research and Development Cess payment challan.
2. This notification shall come into force from the date on which section 66B
of the Finance Act, 1994 comes into effect.
248
25/2012 MEGA EXEMPTION NOTIFICATION
Notification No. 25/2012-Service Tax
New Delhi, the 20th June, 2012
G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said
Act) and in supersession of notification number 12/2012- Service Tax, dated the
17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section
3, Sub-section (i) vide number G.S.R. 210 (E), dated the 17th March, 2012, the
Central Government, being satisfied that it is necessary in the public interest so to
do, hereby exempts the following taxable services from the whole of the service tax
leviable thereon under section 66B of the said Act, namely:-
1. Services provided to the United Nations or a specified international
organization;
2. (i) Health care services by a clinical establishment, an authorised medical
practitioner or para-medics;
(ii) Services provided by way of transportation of a patient in an ambulance,
other than those specified in (i) above319
2B. Services provided by operators of the Common Bio-medical Waste Treatment
Facility to a clinical establishment by way of treatment or disposal of bio-
medical waste or the processes incidental thereto320
3. Services by a veterinary clinic in relation to health care of animals or birds;
4. Services by an entity registered under section 12AA of the Income tax Act,
1961 (43 of 1961) by way of charitable activities;
5. Services by a person by way of-
(a) renting of precincts of a religious place meant for general public; or
319 Inserted by Not. No. 6/2015-ST w.e.f 01.04.2015
320 Vide Not. No. 6/2014-ST WEF 11 July 2014
249
(b) conduct of any religious ceremony;
6, Services provided by-
(a) an arbitral tribunal to -
(i) any person other than a business entity; or
(ii) a business entity with a turnover up to rupees ten lakh in the preceding
financial year;
321(b) a partnership firm of advocates or an individual as an advocate other
than a senior advocate, by way of legal services to-
(i) an advocate or partnership firm of advocates providing legal services;
(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees ten lakh in the
preceding financial year; oran individual as an advocate or a partnership
firm of advocates by way of legal services to,-
(i) an advocate or partnership firm of advocates providing legal services;
(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees ten lakh in the preceding
financial year; or
(c) a senior advocate by way of legal services to a person other than a
person ordinarily carrying out any activity relating to industry, commerce
or any other business or professiona person represented on an arbitral
tribunal to an arbitral tribunal322;
323
8. Services by way of training or coaching in recreational activities relating to arts,
culture or sports;
3249. Services provided,-
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Government;
(iii) security or cleaning or house-keeping services performed in such educational
institution;
321 Substituted vide Notification No. 9/2016-ST w.ef. 01.04.2016
322 Substituted vide Notification No. 9/2016-ST w.ef. 01.04.2016
323 Vide Not. No. 6/2014-ST WEF 11 July 2014
324 Vide Not. No. 6/2014-ST WEF 11 July 2014
250
(iv) services relating to admission to, or conduct of examination by, such institution
325
(a) 326;
(b) ;
3279A. Any services provided by, _
(i) the National Skill Development Corporation set up by the Government of India;
(ii) a Sector Skill Council approved by the National Skill Development Corporation;
(iii) an assessment agency approved by the Sector Skill Council or the National Skill
Development Corporation;
(iv) a training partner approved by the National Skill Development Corporation or the
Sector Skill Council
in relation to
(a) the National Skill Development Programme implemented by the National Skill Development
Corporation; or
(b) a vocational skill development course under the National Skill Certification and Monetary Reward
Scheme; or
(c) any other Scheme implemented by the National Skill Development Corporation
9B. Services provided by the Indian Institutes of Management, as per the guidelines
of the Central Government, to their students, by way of the following educational
programmes, except Executive Development Programme, -
(a) two year full time residential Post Graduate Programmes in Management for the
Post Graduate Diploma in Management, to which admissions are made on the basis
of Common Admission Test (CAT), conducted by Indian Institute of Management;
(b) fellow programme in Management;
(c) five year integrated programme in Management
325 Applicable wef 1 April 2013 vide Not. No. 3/2013-ST dated 1 March 2013
326 Refer Circular No. 172/7/2013 – ST dated 19 September 2013 for clarification on
services availed by an education institute
327 Inserted vide Not. No. 13/2013-ST dated 10 September 2013
251
328
9C Services of assessing bodies empanelled centrally by Directorate General of
Training, Ministry of Skill Development and Entrepreneurship by way of
assessments under Skill Development Initiative (SDI) Scheme329
9D Services provided by training providers (Project implementation agencies) under
Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of Rural
Development by way of offering skill or vocational training courses certified by
National Council For Vocational Training330
10. Services provided to a recognised sports body by-
(a) an individual as a player, referee, umpire, coach or team manager for
participation in a sporting event organized by a recognized sports body;
(b) another recognised sports body;
11.Services by way of sponsorship of sporting events organised,-
(a) by a national sports federation, or its affiliated federations, where
the participating teams or individuals represent any district, State,
zone or Country331;
(b) by Association of Indian Universities, Inter-University Sports
Board, School Games Federation of India, All India Sports Council
for the Deaf, Paralympic Committee of India or Special Olympics
Bharat;
(c) by Central Civil Services Cultural and Sports Board;
(d) as part of national games, by Indian Olympic Association; or
(e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA)
Scheme;
328 Inserted vide Notification No. 9/2016-ST w.e.f. 01.03.2016
329 Inserted vide Notification No. 9/2016-ST w.e.f. 01.04.2016
330 Inserted vide Notification No. 9/2016-ST w.e.f. 01.04.2016
331 Amended vide Not. No. 1/2014-ST dated 10.1.2014
252
12. Services provided to the Government, a local authority or a governmental
authority by way of construction, erection, commissioning, installation,
completion, fitting out, repair, maintenance, renovation, or alteration of -
(a) a historical monument, archaeological site or remains of national
importance, archaeological excavation, or antiquity specified under the
Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of
1958);
(b) canal, dam or other irrigation works;
(c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii)
sewerage treatment or disposal; or
12A. Services provided to the Government, a local authority or a governmental
authority by way of construction, erection, commissioning, installation, completion,
fitting out, repair, maintenance, renovation, or alteration of -
(a) a civil structure or any other original works meant predominantly for use other
than for commerce, industry, or any other business or profession;
(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical,
or(iii) an art or cultural establishment; or
(c) a residential complex predominantly meant for self-use or the use of their
employees or other persons specified in the Explanation 1 to clause (44) of section
65 B of the said Act;
under a contract which had been entered into prior to the 1st March, 2015 and on
which appropriate stamp duty, where applicable, had been paid prior to such date
Provided that nothing contained in this entry shall apply on or after the 1st
253
April, 2020332
13. Services provided by way of construction, erection, commissioning,
installation, completion, fitting out, repair, maintenance, renovation, or
alteration of,-
(a) a road, bridge, tunnel, or terminal for road transportation for use by
general public;
(b) a civil structure or any other original works pertaining to a scheme under
Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;
(ba) a civil structure or any other original works pertaining to the ‘In-situ
rehabilitation of existing slum dwellers using land as a resource through private
participation‟under the Housing for All (Urban) Mission/Pradhan Mantri Awas
Yojana, only for existing slum dwellers333
(bb) a civil structure or any other original works pertaining to the ‘Beneficiary
led individual house construction / enhancement under the Housing for All
(Urban) Mission/ Pradhan Mantri Awas Yojana’334
(c) a building owned by an entity registered under section 12 AA of the Income
tax Act, 1961(43 of 1961) and meant predominantly for religious use by
general public;
(d) a pollution control or effluent treatment plant, except located as a part of a
factory; or
(e) a structure meant for funeral, burial or cremation of deceased;
14. Services by way of construction, erection, commissioning, or installation of
original works pertaining to,-
(a) railways, excluding monorail and metro335an railways, including monorail or
metro;
332 Restored vide Notification No. 9/2016-ST w.e.f. 01.03.2016
333 Inserted vide Notification No. 9/2016-ST w.e.f. 01.03.2016
334 Inserted vide Notification No. 9/2016-ST w.e.f. 01.03.2016
335 Substituted by Not. No. 9/2016-ST w.e.f. 01.03.2016
254
Explanation.-The services by way of construction, erection, commissioning
or installation of original works pertaining to monorail or metro, where
contracts were entered into before 1st March, 2016, on which appropriate
stamp duty, was paid, shall remain exempt336
(b) a single residential unit otherwise than as a part of a residential complex;
(c) low- cost houses up to a carpet area of 60 square metres per house in a
housing project approved by competent authority empowered under the
‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of
Housing and Urban Poverty Alleviation, Government of India;
337(ca) low cost houses up to a carpet area of 60 square metres per house in a
housing project approved by the competent authority under:
(i) the “Affordable Housing in Partnership” component of the Housing for All
(Urban) Mission/Pradhan Mantri Awas Yojana;
(ii) any housing scheme of a State Government.
(d) post- harvest storage infrastructure for agricultural produce including a cold
storages for such purposes; or
(e) mechanised food grain handling system, machinery or equipment for units
processing agricultural produce as food stuff excluding alcoholic beverages;
33814A. Services by way of construction, erection, commissioning, or installation of
original works pertaining to an airport or port provided under a contract which had
been entered into prior to 1st March, 2015 and on which appropriate stamp duty,
where applicable, had been paid prior to such date:
Provided that Ministry of Civil Aviation or the Ministry of Shipping in the
Government of India, as the case may be, certifies that the contract had been
entered into before the 1st March, 2015:
336 Inserted by Not. No. 9/2016-ST w.e.f. 01.03.2016
337 Inserted by Not. No. 9/2016-ST w.e.f. 01.03.2016
338 Inserted by Not. No. 9/2016-ST w.e.f. 01.03.2016
255
Provided further that nothing contained in this entry shall apply on or after the 1st
April, 2020
15 Temporary transfer or permitting the use or enjoyment of a copyright covered
under clauses (a) or (b) of sub-section (1) of section 13 of the Indian Copyright
Act, 1957 (14 of 1957), relating to original literary, dramatic, musical, artistic
works or cinematograph films
Services provided by way of temporary transfer or permitting the use or
enjoyment of a copyright,-
(a) covered under clause (a) of sub-section (1) of section 13 of the Copyright
Act, 1957 (14 of 1957), relating to original literary, dramatic, musical or artistic
works; or
(b) of cinematograph films for exhibition in a cinema hall or cinema theatre339
16. Services by a performing artist in folk or classical art forms of (i) music, or (ii)
dance, or (iii) theatre, if the consideration charged for such performance is not
more than one lakhone lakh fifty thousand340 rupees
Provided that the exemption shall not apply to service provided by such artist
as a brand ambassador341
17. Services by way of collecting or providing news by an independent journalist,
Press Trust of India or United News of India;
18. Services by a hotel, inn, guest house, club or campsite, by whatever name
called, for residential or lodging purposes, having declared tariff of a unit of
accommodation below one thousand rupees per day or equivalent342
339 Applicable wef 1 April 2013 vide Not. No. 3/2013-ST dated 1 March 2013
340 Substituted vide Notification No. 9/2016-ST w.e.f. 01.04.2016
341 Amended by Not. No.6/2015-ST w.e.f. 01.04.2015
342 Vide Not. No. 6/2014-ST WEF 11 July 2014
256
19. Services provided in relation to serving of food or beverages by a restaurant,
eating joint or a mess, other than those having the facility of air-conditioning or
central air-heating in any part of the establishment, at any time during the year
and (ii) a licence to serve alcoholic beverages;343
34419A. Services provided in relation to serving of food or beverages by a canteen
maintained in a factory covered under the Factories Act, 1948 (63 of 1948),
having the facility of air-conditioning or central air-heating at any time during
the year
20. 345Services by way of transportation by rail or a vessel from one place in India
to another of the following goods -
(a) petroleum and petroleum products falling under Chapter heading 2710 and
2711 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);
(b) relief materials meant for victims of natural or man-made disasters,
calamities, accidents or mishap;
(c) defence or military equipments;
(d) postal mail or mail bags;
(e) household effects;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) railway equipments or materials;
(h) agricultural produce;
(i) milk, salt and food grain including flours, pulses and rice346
(j) chemical fertilizer, organic manure347 and oilcakes;
(k) cotton, ginned or baled348
21. 349Services provided by a goods transport agency, by way of transport in a
goods carriage of,-
343 Applicable wef 1 April 2013 vide Not. No. 3/2013-ST dated 1 March 2013
344 Not. No. 14/2013-ST dated 22.10.2013
345 Applicable wef 1 April 2013 vide Not. No. 3/2013-ST dated 1 March 2013
346 Substituted by Not. No. 6/2015-ST w.e.f. 01.04.2015
347 Vide Not. No. 6/2014-ST WEF 11 July 2014
348 Vide Not. No. 6/2014-ST WEF 11 July 2014
257
(a) agricultural produce;
(b) goods, where gross amount charged for the transportation of goods on a
consignment transported in a single carriage does not exceed one thousand five
hundred rupees;
(c) goods, where gross amount charged for transportation of all such goods for a
single consignee does not exceed rupees seven hundred fifty;
(d) milk, salt and food grain including flours, pulses and rice350
(e) chemical fertilizer, organic manure351 and oilcakes;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities,
accidents or mishap; or
(h) defence or military equipments
(i) cotton, ginned or baled352
22. Services by way of giving on hire -
(a) to a state transport undertaking, a motor vehicle meant to carry more than
twelve passengers; or
(b) to a goods transport agency, a means of transportation of goods;
23. Transport of passengers, with or without accompanied belongings, by -
349 Applicable wef 1 April 2013 vide Not. No. 3/2013-ST dated 1 March 2013
350 Substituted by Not. No. 6/2015-ST
351 Vide Not. No. 6/2014-ST WEF 11 July 2014
352 Vide Not. No. 6/2014-ST WEF 11 July 2014
258
(a) air, embarking from or terminating in an airport located in the state of
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,
or Tripura or at Bagdogra located in West Bengal;
(b) 353non-air-conditioned contract carriage other than radio taxi, for transportation of
passengers, excluding tourism, conducted tour, charter or hire; or
(bb) stage carriage other than air-conditioned stage carriage354
(b)(c) 355 ropeway, cable car or aerial tramway;
35624. Services by way of vehicle parking to general public excluding leasing of
space to an entity for providing such parking facility;
25. Services provided to Government, a local authority or a governmental authority
by way of -
(a) water supply, public health, sanitation conservancy, solid waste management or slum
improvement and up-gradation; or357 or
(b) repair or maintenance of a vessel or an aircraft358;
26. Services of general insurance business provided under following schemes -
(a) Hut Insurance Scheme;
(b) Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known
as Integrated Rural Development Programme);
(c) Scheme for Insurance of Tribals;
(d) Janata Personal Accident Policy and Gramin Accident Policy;
(e) Group Personal Accident Policy for Self-Employed Women;
(f) Agricultural Pumpset and Failed Well Insurance;
(g) premia collected on export credit insurance;
353 Vide Not. No. 6/2014-ST WEF 11 July 2014
354 Vide Not. No. 9/2016-ST w.ef. 01.06.2016
355 Deleted vide Nt. No. 9/2016-ST w.e.f. 01.04.2016
356 Omitted wef 1 April 2013 vide Not. No. 3/2013-ST dated 1 March 2013
357 Inserted vide Not. No. 6/2014-ST WEF 11 July 2014
358 Omitted wef 1 April 2013 vide Not. No. 3/2013-ST dated 1 March 2013
259
(h) Weather Based Crop Insurance Scheme or the Modified National Agricultural
Insurance Scheme, approved by the Government of India and implemented
by the Ministry of Agriculture;
(i) Jan Arogya Bima Policy;
(j) National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);
(k) Pilot Scheme on Seed Crop Insurance;
(l) Central Sector Scheme on Cattle Insurance;
(m) Universal Health Insurance Scheme;
(n) Rashtriya Swasthya Bima Yojana; or
(o) Coconut Palm Insurance Scheme;
(p) Pradhan Mantri Suraksha Bima Yojna359
(p)(q) Niramaya‟ Health Insurance Scheme implemented by Trust constituted under
the provisions of the National Trust for the Welfare of Persons with Autism,
Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of
1999)360
36126A. Services of life insurance business provided under following schemes -
(a) Janashree Bima Yojana (JBY); or
(b) Aam Aadmi Bima Yojana (AABY);
(c) life micro-insurance product as approved by the Insurance Regulatory and Development
Authority, having maximum amount of cover of fifty thousand rupees362
(d) Varishtha Pension Bima Yojana363
(e) Pradhan Mantri Jeevan Jyoti Bima Yojana;
(f) (f) Pradhan Mantri Jan Dhan Yogana364
26B. Services by way of collection of contribution under Atal Pension Yojana365
359 Inserted by Not. No. 12/2015-ST
360 Vide Not. No. 9/2016-ST w.ef. 01.04.2016
361 Inserted vide Not. No. 49/2012-ST dated 24.12.2012
362 Vide Not. No. 6/2014-ST WEF 11 July 2014
363 Inserted by Not. No. 6/2015-ST
364 Inserted by Not. No. 12/2015-ST
365 Inserted by Not. No. 12/2015-ST
260
26C Services of life insurance business provided by way of annuity under the
National Pension System regulated by Pension Fund Regulatory and Development
Authority of India (PFRDA) under the Pension Fund Regulatory And Development
Authority Act, 2013 (23 of 2013)366
27. Services provided by an incubatee up to a total turnover of fifty lakh rupees in a
financial year subject to the following conditions, namely:-
(a) the total turnover had not exceeded fifty lakh rupees during the preceding
financial year; and
(b) a period of three years has not been elapsed from the date of entering into
an agreement as an incubatee;
28. Service by an unincorporated body or a non- profit entity registered under any
law for the time being in force, to its own members by way of reimbursement of
charges or share of contribution -
(a) as a trade union;
(b) for the provision of carrying out any activity which is exempt from the levy of
service tax; or
(c) up to an amount of five thousand rupees per month per member for sourcing
of goods or services from a third person for the common use of its members
in a housing society or a residential complex;
29. Services by the following persons in respective capacities -
(b) sub-broker or an authorised person to a stock broker;
(c) authorised person to a member of a commodity exchange;
(d) 367
(e) selling agent or a distributer of SIM cards or recharge coupon vouchers;
(f) business facilitator or a business correspondent to a banking company or an
insurance company, in a rural area; or
366 Inserted vide Notification No. 9/2016-ST w.ef. 01.04.2016
367 Omitted by Not. No. 6/2015-ST w.e.f.01.04.2015
261
(g) sub-contractor providing services by way of works contract to another
contractor providing works contract services which are exempt;
30. Carrying out an intermediate production process as job work in relation to -
(a) agriculture, printing or textile processing;
(b) cut and polished diamonds and gemstones; or plain and studded jewellery of
gold and other precious metals, falling under Chapter 71 of the Central
Excise Tariff Act ,1985 (5 of 1986);
(c) any goods excluding alcoholic liquors for human consumption368on which
appropriate duty is payable by the principal manufacturer; or
(d) processes of electroplating, zinc plating, anodizing, heat treatment, powder
coating, painting including spray painting or auto black, during the course of
manufacture of parts of cycles or sewing machines upto an aggregate value
of taxable service of the specified processes of one hundred and fifty lakh
rupees in a financial year subject to the condition that such aggregate value
had not exceeded one hundred and fifty lakh rupees during the preceding
financial year;
31. Services by an organiser to any person in respect of a business exhibition held
outside India;
32.
33. Services by way of slaughtering of bovine animals;
34. Services received from a provider of service located in a non- taxable territory
by -
(a) Government, a local authority, a governmental authority or an individual in
relation to any purpose other than commerce, industry or any other business
or profession;
(b) an entity registered under section 12AA of the Income tax Act, 1961 (43 of
1961) for the purposes of providing charitable activities; or
(c) a person located in a non-taxable territory;
368 Amended by Not. No.6/2015-ST
262
35. Services of public libraries by way of lending of books, publications or any other
knowledge- enhancing content or material;
36. Services by Employees’ State Insurance Corporation to persons governed
under the Employees’ Insurance Act, 1948 (34 of 1948);
37. Services by way of transfer of a going concern, as a whole or an independent
part thereof;
38. Services by way of public conveniences such as provision of facilities of
bathroom, washrooms, lavatories, urinal or toilets;
39. Services by a governmental authority by way of any activity in relation to any
function entrusted to a municipality under article 243 W of the Constitution.
[40. Services by way of loading, unloading, packing, storage or warehousing of rice, cotton, ginned
or baled
41. Services received by the Reserve Bank of India, from outside India in relation to
management of foreign exchange reserves;
42. Services provided by a tour operator to a foreign tourist in relation to a tour
conducted wholly outside India]369
43. Services by operator of Common Effluent Treatment Plant by way of treatment
of effluent
44. Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail
packing, labelling of fruits and vegetables which do not change or alter the
essential characteristics of the said fruits or vegetables370
45. Services by way of admission to a museum, national park, wildlife sanctuary,
tiger reserve or zoo
46. 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 members371
47. 372Services by way of right to admission to,-
(i) exhibition of cinematographic film, circus, dance, or theatrical performance
including drama or ballet;
369 Vide Not. No. 6/2014-ST WEF 11 July 2014
370 Inserted by Not. No. 6/2015-ST w.e.f. 01.06.2015
371 Inserted by Not. No. 6/2015-ST w.e.f. 01.06.2015
372 Inserted by Not. No. 6/2015-ST w.e.f. 01.06.2015
263
(ii) recognised sporting event
(iii) award function, concert, pageant, musical performance or any sporting event other than a
recognised sporting event, where the consideration for admission is not more than Rs 500 per
person
48. Services provided by Government or a local authority to a business entity with
a turnover up to rupees ten lakh in the preceding financial year373
49. Services provided by Employees Provident Fund Organisation (EPFO) to persons
governed under the Employees‟ Provident Funds and Miscellaneous Provisions Act,
1952374
50. Services provided by Insurance Regulatory and Development Authority of India
(IRDA) to insurers under the Insurance Regulatory and Development Authority of
India Act, 1999 (41 of 1999)375
51. Services provided by Securities and Exchange Board of India (SEBI) set up
under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of
protecting the interests of investors in securities and to promote the development
of, and to regulate, the securities market376
52. Services provided by National Centre for Cold Chain Development under
Ministry of Agriculture, Cooperation and Farmer‟s Welfare by way of cold chain
knowledge dissemination377
53. Services by way of transportation of goods by an aircraft from a place outside
India upto the customs station of clearance in India378
2. Definitions. - For the purpose of this notification, unless the context otherwise
requires, –
(a) “Advocate” has the meaning assigned to it in clause (a) of sub-section (1) of
section 2 of the Advocates Act, 1961 ( 25 of 1961);
(b) “appropriate duty” means duty payable on manufacture or production under a
Central Act or a State Act, but shall not include ‘Nil’ rate of duty or duty wholly
exempt;
373 Inserted vide Notification No. 07/2016-ST w.e.f. 01.04.2016
374 Inserted vide Notificatioin No. 9/2016-ST w.e.f. 01.04.2016
375 Inserted vide Notificatioin No. 9/2016-ST w.e.f. 01.04.2016
376 Inserted vide Notificatioin No. 9/2016-ST w.e.f. 01.04.2016
377 Inserted vide Notificatioin No. 9/2016-ST w.e.f. 01.04.2016
378 Inserted vide Notificatioin No. 9/2016-ST w.e.f. 01.06.2016
264
379(ba) "approved vocational education course" means,-
(i) a course run by an industrial training institute or an industrial training centre
affiliated to the National Council for Vocational Training or State Council for
Vocational Training offering courses in designated trades notified under the
Apprentices Act, 1961 (52 of 1961.); or
(ii) a Modular Employable Skill Course, approved by the National Council of
Vocational Training, run by a person registered with the Directorate General of
Employment and Training, Union Ministry of Labour and Employment
(c) “arbitral tribunal” has the meaning assigned to it in clause (d) of section 2 of
the Arbitration and Conciliation Act, 1996 (26 of 1996);
(d) “authorised medical practitioner” means a medical practitioner registered with
any of the councils of the recognised system of medicines established or
recognized by law in India and includes a medical professional having the
requisite qualification to practice in any recognised system of medicines in India
as per any law for the time being in force;
(e) "authorised person” means any person who is appointed as such either by a
stock broker (including trading member) or by a member of a commodity
exchange and who provides access to trading platform of a stock exchange or a
commodity exchange as an agent of such stock broker or member of a
commodity exchange;
380
(g) “banking company” has the meaning assigned to it in clause (a) of section 45A
of the Reserve Bank of India Act,1934(2 of 1934);
(h) “brand ambassador” means a person engaged for promotion or marketing of a
brand of goods, service, property or actionable claim, event or endorsement of
name, including a trade name, logo or house mark of any person;
(i) “business facilitator or business correspondent” means an intermediary
appointed under the business facilitator model or the business correspondent
model by a banking company or an insurance company under the guidelines
issued by Reserve Bank of India;
379 Inserted vide Notification No. 9/2016-ST w.e.f. enactment of Finance Bill, 2016
380 Omitted vide Not. No. 6/2014-ST WEF 11 July 2014
265
(j) "clinical establishment" means a hospital, nursing home, clinic, sanatorium or
any other institution by, whatever name called, that offers services or facilities
requiring diagnosis or treatment or care for illness, injury, deformity,
abnormality or pregnancy in any recognised system of medicines in India, or a
place established as an independent entity or a part of an establishment to
carry out diagnostic or investigative services of diseases;
(k) “charitable activities” means activities relating to -
(i) public health by way of -
(a) care or counseling of (i) terminally ill persons or persons with severe
physical or mental disability, (ii) persons afflicted with HIV or AIDS, or
(iii) persons addicted to a dependence-forming substance such as
narcotics drugs or alcohol; or
(b) public awareness of preventive health, family planning or prevention of
HIV infection;
(ii) advancement of religion or spirituality;
(iii) advancement of educational programmes or skill development relating to,-
(a) abandoned, orphaned or homeless children;
(b) physically or mentally abused and traumatized persons or prisoners;
(c) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests and wildlife;
381(v) advancement of any other object of general public utility up to a value of,-
eighteen lakh and seventy five thousand rupees for the year 2012-13 subject to the
condition that total value of such activities had not exceeded twenty five lakhs
rupees during 2011-12;
twenty five lakh rupees in any other financial year subject to the condition
that total value of such activities had not exceeded twenty five lakhs rupees
during the preceding financial year;
(l) “commodity exchange” means an association as defined in section 2 (j) and
recognized under section 6 of the Forward Contracts (Regulation) Act,1952 (74
of 1952);
381 Omitted wef 1 April 2013 vide Not. No. 3/2013-ST dated 1 March 2013
266
(m) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of
the Motor Vehicles Act, 1988 (59 of 1988);
(n)“declared tariff” includes charges for all amenities provided in the unit of
accommodation (given on rent for stay) like furniture, air-conditioner,
refrigerators or any other amenities, but without excluding any discount offered
on the published charges for such unit;
(o) “distributor or selling agent” has the meaning assigned to them in clause (c) of
the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of
India in the Ministry of Home Affairs, published in the Gazette of India,
Extraordinary, Part-II, Section 3, Sub-section (i), vide number G.S.R. 278(E),
dated the 1st April, 2010 and shall include distributor or selling agent
authorised by the lottery- organising State;
382(oa) “educational institution” means an institution providing services by way of:
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the
time being in force;
(iii) education as a part of an approved vocational education course“educational institution” means
an institution providing services specified in clause (l) of section 66D of the Finance Act,1994
(32 of 1994)383
(p) "general insurance business" has the meaning assigned to it in clause (g) of
section 3 of General Insurance Business (Nationalisation) Act, 1972 (57 of
1972);
(q)“general public” means the body of people at large sufficiently defined by some
common quality of public or impersonal nature;
(r)“goods carriage” has the meaning assigned to it in clause (14) of section 2 of the
Motor Vehicles Act, 1988 (59 of 1988);
(s) “governmental authority” means an authority or a board or any other body;
(i) set up by an Act of Parliament or a State Legislature; or
382 Substituted vide Notification No. 9/2016-ST w.e.f. enactment of Finance Bill, 2016
383 Vide Not. No. 6/2014-ST WEF 11 July 2014
267
(ii) established by Government, with 90% or more participation by way of equity or
control, to carry out any function entrusted to a municipality under article 243W
of the Constitution384
“governmental authority’’ means a board, or an authority or any other body
established with 90% or more participation by way of equity or control by
Government and set up by an Act of the Parliament or a State Legislature to
carry out any function entrusted to a municipality under article 243W of the
Constitution;
(t) “health care services” means any service by way of diagnosis or treatment or
care for illness, injury, deformity, abnormality or pregnancy in any recognised
system of medicines in India and includes services by way of transportation of
the patient to and from a clinical establishment, but does not include hair
transplant or cosmetic or plastic surgery, except when undertaken to restore or
to reconstruct anatomy or functions of body affected due to congenital defects,
developmental abnormalities, injury or trauma;
(u) “incubatee” means an entrepreneur located within the premises of a Technology
Business Incubator (TBI) or Science and Technology Entrepreneurship Park
(STEP) recognised by the National Science and Technology Entrepreneurship
Development Board (NSTEDB) of the Department of Science and Technology,
Government of India and who has entered into an agreement with the TBI or
the STEP to enable himself to develop and produce hi-tech and innovative
products;
(v)“insurance company” means a company carrying on life insurance business or
general insurance business;
(w)“legal service” means any service provided in relation to advice, consultancy or
assistance in any branch of law, in any manner and includes representational
services before any court, tribunal or authority;
(x)“life insurance business” has the meaning assigned to it in clause (11) of section
2 of the Insurance Act, 1938 (4 of 1938);
(xa) “life micro-insurance product” shall have the meaning assigned to it in clause (e) of regulation 2
of the Insurance Regulatory and Development Authority (Micro-insurance) Regulations, 2005385
384 Substituted vide Not. No. 2/2014-ST dated 30.01.2014
268
(xaa) “national park’ has the meaning assigned to it in the clause (21) of the section 2 of The Wild
Life (Protection) Act, 1972 (53 of 1972)
(y) “original works” means has the meaning assigned to it in Rule 2A of the
Service Tax (Determination of Value) Rules, 2006;
(z) “principal manufacturer” means any person who gets goods manufactured or
processed on his account from another person;
[(za) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way
radio communication with a central control office and is enabled for tracking using Global
Positioning System (GPS) or General Packet Radio Service (GPRS);
(zaa) “recognised sports body” means – (i) the Indian Olympic Association, (ii) Sports Authority of
India, (iii) a national sports federation recognised by the Ministry of Sports and Youth Affairs of
the Central Government, and its affiliated federations, (iv) national sports promotion
organisations recognised by the Ministry of Sports and Youth Affairs of the Central
Government, (v) the International Olympic Association or a federation recognised by the
International Olympic Association or (vi) a federation or a body which regulates a sport at
international level and its affiliated federations or bodies regulating a sport in India]386
(zab) “recognised sporting event” means any sporting event,-
(i) organised by a recognised sports body where the participating team or
individual represent any district, state, zone or country;
(ii) covered under entry 11387
(zb) “religious place” means a place which is primarily meant for conduct of prayers
or worship pertaining to a religion, meditation, or spirituality;
(zc) “residential complex” means any complex comprising of a building or buildings,
having more than one single residential unit;
(zd)“rural area” means the area comprised in a village as defined in land revenue
records, excluding-
the area under any municipal committee, municipal corporation, town area
committee, cantonment board or notified area committee; or
385 Vide Not. No. 6/2014-ST WEF 11 July 2014
386 Vide Not. No. 6/2014-ST WEF 11 July 2014
387 Inserted by Not. No. 6/2015-ST
269
any area that may be notified as an urban area by the Central Government
or a State Government;
(zdd) “senior advocate‟ has the meaning assigned to it in section 16 of the
Advocates Act, 1961 (25 of 1961)388
(ze)“single residential unit” means a self-contained residential unit which is
designed for use, wholly or principally, for residential purposes for one family;
(zf) "specified international organization" means an international organization
declared by the Central Government in pursuance of section 3 of the United
Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the
provisions of the Schedule to the said Act apply;
(zg)"state transport undertaking" has the meaning assigned to it in clause (42) of
section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(zh)"sub-broker" has the meaning assigned to it in sub-clause (gc) of clause 2 of
the Securities and Exchange Board of India (Stock Brokers and Sub-brokers)
Regulations, 1992;
(zi) “tiger reserve” has the meaning assigned to it in clause (e) of section 38K of
the Wild Life (Protection) Act, 1972 (53 of 1972) 389
(zj) “trade union” has the meaning assigned to it in clause (h) of section 2 of the
Trade Unions Act,1926(16 of 1926).
(zk) “wildlife sanctuary” means sanctuary as defined in the clause (26) of the
section 2 of The Wild Life (Protection) Act, 1972 (53 of 1972);
(zl) “zoo” has the meaning assigned to it in the clause (39) of the section 2 of the
Wild Life (Protection) Act, 1972 (53 of 1972)390
3. This notification shall come into force on the 1st day of July, 2012.
[F. No.334/1/2012 -TRU]
388 Inserted vide Notification No. 9/2016-ST w.e.f.01.04.2016
389 Inserted by Not. No. 6/2015-ST
390 Inserted by Not. No. 6/2015-ST
270
26/2012 - ABATEMENT NOTIFICATION
Notification No. 26/2012- Service Tax
New Delhi, the 20th June, 2012
G.S.R….. (E). - In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said
Act), and in supersession of notification number 13/2012- Service Tax, dated the
17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section
3, Sub-section (i) vide number G.S.R. 211 (E), dated the 17th March, 2012, the
Central Government, being satisfied that it is necessary in the public interest so to
do, hereby exempts the taxable service of the description specified in column (2) of
the Table below, from so much of the service tax leviable thereon under section
66B of the said Act, as is in excess of the service tax calculated on a value which
is equivalent to a percentage specified in the corresponding entry in column (3) of
the said Table, of the amount charged by such service provider for providing the
said taxable service, unless specified otherwise, subject to the relevant conditions
specified in the corresponding entry in column (4) of the said Table, namely;-
Table
Sl.
No.
Description of taxable
service
Percent-
Age
Conditions
(1) (2) (3) (4)
1 Services in relation to
financial leasing including
hire purchase
10 Nil.
2 Transport of goods by rail
(other than service
specified at Sl. No. 2A
below)Transport of goods
by rail391
30 CENVAT credit on inputs and
capital goods, used for providing
the taxable service, has not been
taken under the provisions of the
CENVAT Credit Rules, 2004.Nil.
391 Substituted vide notification No. 8/2016-ST w.e.f. 01.04.2016
271
2A Transport of goods in
containers by rail by any
person other than Indian
Railways392
40 CENVAT credit on inputs and
capital goods, used for providing
the taxable service, has not been
taken under the provisions of the
CENVAT Credit Rules, 2004.
3 Transport of passengers,
with or without
accompanied belongings
by rail
30 CENVAT credit on inputs and
capital goods, used for providing
the taxable service, has not been
taken under the provisions of the
CENVAT Credit Rules, 2004.Nil.
4 Bundled service by way of
supply of food or any other
article of human
consumption or any drink,
in a premises ( including
hotel, convention center,
club, pandal, shamiana or
any other place, specially
arranged for organizing a
function) together with
renting of such premises
70 (i) CENVAT credit on any goods
classifiable under Chapters 1 to 22
of the Central Excise Tariff Act,
1985 (5 of 1986) used for
providing the taxable service, has
not been taken under the
provisions of the CENVAT Credit
Rules, 2004.
5 Transport of passengers by
air, with or without
accompanied belongings
40 CENVAT credit on inputs and
capital goods, used for providing
the taxable service, has not been
taken under the provisions of the
CENVAT Credit Rules, 2004.
6 Renting of hotels, inns,
guest houses, clubs,
campsites or other
commercial places meant
60 Same as above.
392 Inserted vide Notification No. 8/2016-ST w.e.f. 01.04.2016
272
for residential or lodging
purposes.
7 Services of goods
transport agency in
relation to transportation
of goods other than used
household goodsServices
of goods transport agency
in relation to
transportation of goods.393
30394 CENVAT credit on inputs, capital
goods and input services, used for
providing the taxable service, has
not been taken
by the service provider395 under
the provisions of the CENVAT
Credit Rules, 2004.
7A Services of goods
transport agency in
relation to transportation
of used household goods.
40 CENVAT credit on inputs, capital
goods and input services, used for
providing the taxable service, has
not been taken by the service
provider under the provisions of
the CENVAT Credit Rules, 2004.
8 Services provided in
relation to chit396
70 CENVAT credit on inputs, capital
goods and input services, used for
providing the taxable service has
not been taken under the
provisions of the CENVAT Credit
Rules, 2004
9 Renting of
motorcab397
40
(i) CENVAT credit on inputs and capital
goods, used for providing the taxable
service, has not been taken under the
393 Substituted vide Notification No. 8/2016-ST w.e.f. 01.04.2016
394 Applicable w.e.f. 01.04.2015
395 WEF 11 July 2014 Vide Not. No. 8/2014-ST dated 11 July 2014
396 Inserted vide Notification No. 8/2016-ST w.e.f.01.04.2016
397 W.e.f. 1 October 2014 vide Not. No. 8/2014-ST dated 11 July 2014
273
provisions of the CENVAT Credit Rules,
2004
(ii) CENVAT credit on input service of
renting of motorcab has been taken
under the provisions of the CENVAT
Credit Rules, 2004, in the following
manner:
(a) Full CENVAT credit of such input
service received from a person who
is paying service tax on forty
percent of the value; or
(b) Up to forty percent CENVAT
credit of such input service received
from a person who is paying service
tax on full value;
(iii) CENVAT credit on input services
other than those specified in (ii) above,
has not been taken under the provisions
of the CENVAT Credit Rules, 2004398
9A Transport of passengers, with
or without accompanied
belongings, by
a. a contract carriage other
than motorcab399
b. a radio taxi
a.c. a stage carriage
40 CENVAT credit on inputs, capital
goods and input services, used for
providing the taxable service, has not
been taken under the provisions of the
CENVAT Credit Rules, 2004.”;
10 Transport of goods in a
vessel
40400 CENVAT credit on inputs and
capital goods, used for providing
the taxable service, has not been
398 WEF 11 October 2014 Vide Not. No. 8/2014-ST dated 11 July 2014
399 Not. No. 8/2014-ST dated 11 July 2014 - In the serial number 9A, so inserted, for the
entry in the column (2), the following entry shall be substituted with effect from such date
as the Central Government may notify for omission of the words “radio taxis” in the
section 66D(o)(vi) of the Finance Act 1994, namely:-
“Transport of passengers, with or without accompanied belongings, by-
a. a contract carriage other than motorcab.
b. a radio taxi. 400 WEF 11 October 2014 Vide Not. No. 8/2014-ST dated 11 July 2014
274
taken under the provisions of the
CENVAT Credit Rules, 2004401Same
as above.
11
402Services by a tour
operator in relation to,-
(i) a tour, only for the
purpose of arranging or
booking accommodation
for any personServices by
a tour operator in relation
to,-
(i) a package tour
2510 (i) CENVAT credit on inputs, capital
goods and input services other
than input services of a tour
operator, used for providing the
taxable service, has not been
taken under the provisions of the
CENVAT Credit Rules, 2004.
(ii) The invoice, bill or challan
issued indicates that it is towards
the charges for such
accommodation.
(iii) This exemption shall not apply
in such cases where the invoice,
bill or challan issued by the tour
operator, in relation to a tour,
includes only the service charges
for arranging or booking
accommodation for any person but
does not include the cost of such
accommodation.
(i) CENVAT credit on inputs, capital
goods and input services other than the
input service of a tour operator403 , used
for providing the taxable service,
has not been taken under the
provisions of the CENVAT Credit
Rules, 2004.
(ii) The bill issued for this purpose
indicates that it is inclusive of
charges for such a tour.
(ii) tours other than (i)
above(ii) a tour, if the
tour operator is providing
services solely of arranging
or booking accommodation
1030 (i) CENVAT credit on inputs, capital
goods and input services other
than input services of a tour
operator, used for providing the
taxable service, has not been
401 Substituted vide Notification No. 8/2016-ST w.e.f. 01.04.2016
402 Substituted vide Notification No. 8/2016-ST w.e.f. 01.04.2016
403 WEF 11 October 2014 Vide Not. No. 8/2014-ST dated 11 July 2014
275
for any person in relation
to a tour
taken under the provisions of the
CENVAT Credit Rules, 2004
(ii) The bill issued for this purpose
indicates that it is inclusive of
charges for such a tour and the
amount charged in the bill is the
gross amount charged for such a
tour.
(i) CENVAT credit on inputs, capital
goods and input services other than the
input service of a tour operator404 , used
for providing the taxable service,
has not been taken under the
provisions of the CENVAT Credit
Rules, 2004.
(ii) The invoice, bill or challan
issued indicates that it is towards
the charges for such
accommodation.
(iii) This exemption shall not apply
in such cases where the invoice,
bill or challan issued by the tour
operator, in relation to a tour, only
includes the service charges for
arranging or booking
accommodation for any person and
does not include the cost of such
accommodation.
404 WEF 11 October 2014 Vide Not. No. 8/2014-ST dated 11 July 2014
276
12 Construction of a complex,
building, civil structure or
a part thereof, intended for
a sale to a buyer, wholly or
partly except where entire
consideration is received
after issuance of
completion certificate by
the competent
authority405406Construction
of a complex, building, civil
structure or a part thereof,
intended for a sale to a
buyer, wholly or partly,
except where entire
consideration is received after
issuance of completion
certificate by the competent
authority,-
(a) for a residential unit
satisfying both the following
conditions, namely:–
(i) the carpet area of the unit
is less than 2000 square feet;
and
(ii) the amount charged for
the unit is less than rupees
one crore;
(b) for other than the (a)
above
Construction of a complex,
building, civil structure or
a part thereof, intended for
a sale to a buyer, wholly or
partly except where entire
consideration is received
after issuance of
completion certificate by
30
25
30
25
(i) CENVAT credit on inputs used
for providing the taxable service
has not been taken under the
provisions of the CENVAT Credit
Rules, 2004.
(ii)The value of land is included in
the amount charged from the
service receiver.
405 Substituted by Notification No. 8/2016-ST w.e.f. 01.04.2016
406 Not. No. 9/2013-ST dated 8 May 2013
277
the competent authority :
407(i) for residential unit
having carpet area
upto 2000 square feet
or where the amount
charged is less than
rupees one crore;
(ii) for other than the (i)
above
30
Explanation. –
A. For the purposes of exemption at Serial number 1 -
(i) The amount charged shall be an amount, forming or representing as
interest, i.e. the difference between the installments paid towards
repayment of the lease amount and the principal amount contained in
such installments;
(ii) the exemption shall not apply to an amount, other than an amount
forming or representing as interest, charged by the service provider such
as lease management fee, processing fee, documentation charges and
administrative fee, which shall be added to the amount calculated in
terms of (i) above.
B. For the purposes of exemption at Serial number 4 -
The amount charged shall be the sum total of the gross amount charged
and the fair market value of all goods and services supplied in or in
relation to the supply of food or any other article of human consumption
or any drink (whether or not intoxicating) and whether or not supplied
under the same contract or any other contract, after deducting-
278
(i) the amount charged for such goods or services supplied to the service
provider, if any; and
(ii) the value added tax or sales tax, if any, levied thereon:
Provided that the fair market value of goods and services so supplied
may be determined in accordance with the generally accepted accounting
principles.
BA. For the purposes of exemption at Serial number 9, the amount charged
shall be the sum total of the amount charged for the service including the
fair market value of all goods (including fuel) and services supplied by the
recipient(s) in or in relation to the service, whether or not supplied under
the same contract or any other contracts
Provided that the fair market value of goods and services so supplied may
be determined in accordance with the generally accepted accounting
principles408
C. For the purposes of exemption at Serial number 12 –
The amount charged shall be the sum total of the amount charged for
the service including the fair market value of all goods and services
supplied by the recipient(s) in or in relation to the service, whether or not
supplied under the same contract or any other contract, after deducting-
(i) the amount charged for such goods or services supplied to the service
provider, if any; and
(ii) the value added tax or sales tax, if any, levied thereon:
Provided that the fair market value of goods and services so supplied
may be determined in accordance with the generally accepted accounting
principles.
2. For the purposes of this notification, unless the context otherwise requires,-
408 Inserted vide Notification No. 8/2016-ST w.e.f. 01.04.2016
279
a. 409"package tour" means a tour wherein transportation, accommodation for
stay, food, tourist guide, entry to monuments and other similar services in
relation to tour are provided by the tour operator as part of the package tour
to the person undertaking the tour,
b. “tour operator” means any person engaged in the business of planning,
scheduling, organizing, arranging tours (which may include arrangements for
accommodation, sightseeing or other similar services) by any mode of
transport, and includes any person engaged in the business of operating
tours,
3. This notification shall come into force on the 1st day of July, 2012.
409 Deleted by Not. No. 13/2015-ST
280
27/2012 - EXEMPTION FOR FOREIGN DIPLOMATIC MISSION
Notification No. 27/2012 - Service Tax
New Delhi, the 20th June, 2012
G.S.R. (E).- In exercise of the powers conferred by section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is
necessary in the public interest so to do, hereby exempts taxable services
provided by any person, for the official use of a foreign diplomatic mission or
consular post in India, or for personal use or for the use of the family members of
diplomatic agents or career consular officers posted therein from whole of the
service tax leviable under section 66B of the said Act, subject to the following
conditions, namely:-
(i) that the foreign diplomatic mission or consular post in India, or diplomatic
agents or career consular officers posted therein, are entitled to exemption from
service tax, as stipulated in the certificate issued by the Protocol Division of the
Ministry of External Affairs, based on the principle of reciprocity;
(ii) that in case of diplomatic agents or career consular officers posted in the foreign
diplomatic mission or consular post in India, the Protocol Division of the Ministry
of External Affairs or the Protocol Department of the State concerned issues to
each of such diplomatic agent or career consular officer an identification card
bearing unique identification number and containing a photograph and name of
such diplomatic agent or career consular officer and the name of the foreign
diplomatic mission or consular post in India, where he is posted;
(iii) that the head of the foreign diplomatic mission or consular post, or any person
of such mission or post authorised by him, shall furnish to the provider of
taxable service, a copy of such certificate duly authenticated by him or the
authorised person, alongwith an undertaking in original, signed by him or the
authorised person, bearing running serial number commencing from a financial
year and stating that the services received are for official purpose of the said
foreign diplomatic mission or consular post; or for personal use of the said
281
diplomatic agent or career consular officer or members of his/her family
mentioning the unique identification number as appearing in the identification
card issued to them and stating that the services received are for personal use
of the said diplomatic agent or career consular officer or members of his/her
family;
(iv) that the head of the foreign diplomatic mission or consular post or the
authorized person shall maintain an account of the undertakings issued during a
financial year and the account shall contain;-
(a) the serial number and date of issue of the undertakings;
(b) in case of personal use of diplomatic agents or career consular officers
posted in the foreign diplomatic mission or consular post in India, the
name, designation and unique identification number of the diplomatic agent
or career consular officer in favour of whom the undertaking has been
issued;
(c) the name and the registration number of the provider of taxable service;
and
(d) the description of taxable service and invoice number.
(v) The invoice or bill, or as the case may be, the challan issued under the
provisions contained in rule 4A of the Service Tax Rules, 1994, shall, in addition
to the information required to be furnished under the said rule, contain the serial
number and the date of the undertaking furnished by the said head of foreign
diplomatic mission or consular post or in case of diplomatic agents or career
consular officers posted in such foreign diplomatic mission or consular post in
India, the unique identification number of the diplomatic agent or career
consular officer, as the case may be; and
(vi) that the provider of taxable service shall retain the documents referred to in
the conditions (i), (ii) and (iii) alongwith a duplicate copy of the invoice issued,
for the purposes of verification.
282
2. In case the Protocol Division of the Ministry of External Affairs, after having
issued a certificate to any foreign diplomatic mission or consular post in India or
as the case may be, the identification card issued to a diplomatic agent or
career consular officer, decides to withdraw any one or both of them
subsequently, it shall communicate the withdrawal of such certificate or
identification card, as the case may be, to the foreign diplomatic mission or
consular post.
3. The exemption from the whole of the service tax granted to the foreign
diplomatic mission or consular post in India for official purpose or for the
personal use or use of their family members shall not be available from the date
of withdrawal of such certificate or identification card, as the case may be.
4. This notification shall come into force on the 1st day of July, 2012.
[F.No. 334 /1/ 2012-TRU]
(Rajkumar Digvijay)
Under Secretary to the Government of India
283
29/2012 - EXEMPTION ON PROPERTY TAX PAID
Notification No. 29/2012- Service Tax
New Delhi, the 20th June, 2012
G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 93
of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act),
and in supersession of the Government of India in the Ministry of Finance
(Department of Revenue) notification No. 24/2007-Service Tax, dated the 22nd May,
2007, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i) vide number G.S.R. 370 (E), dated the 22nd May, 2007, except as
respects things done or omitted to be done before such supersession, the Central
Government, on being satisfied that it is necessary in the public interest so to do,
hereby exempts the taxable service of renting of an immovable property, from so
much of the service tax leviable thereon under section 66B of the said Finance Act,
as is in excess of the service tax calculated on a value which is equivalent to the
gross amount charged for renting of such immovable property less taxes on such
property, namely property tax levied and collected by local bodies:
Provided that any amount such as interest, penalty paid to the local authority by
the service provider on account of delayed payment of property tax or any other
reasons shall not be treated as property tax for the purposes of deduction from the
gross amount charged:
Provided further that wherever the period for which property tax paid is different
from the period for which service tax is paid or payable, property tax proportionate
to the period for which service tax is paid or payable shall be calculated and the
amount so calculated shall be excluded from the gross amount charged for renting
of the immovable property for the said period, for the purposes of levy of service
tax.
284
Example:
Property tax paid for April to September = Rs. 12,000/-
Rent received for April = Rs. 1, 00,000/-
Service tax payable for April = Rs. 98,000/- (1, 00,000 -12,000/6) * applicable
rate of service tax
2. This notification shall come into force on the 1st day of July, 2012.
[F.No. 334 /01/2012- TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
285
30/2012 - REVERSE CHARGE MECHANISM
Notification No. 30/2012-Service Tax
New Delhi, the 20th June, 2012
GSR.…..(E).—In exercise of the powers conferred by sub-section (2) of
section 68 of the Finance Act, 1994 (32 of 1994), and in supersession of (i)
notification of the Government of India in the Ministry of Finance (Department of
Revenue), No. 15/2012-Service Tax, dated the 17th March, 2012, published in
the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i),vide number G.S.R 213(E), dated the 17th March, 2012, and (ii) notification of
the Government of India in the Ministry of Finance (Department of Revenue),
No. 36/2004-Service Tax, dated the 31st December, 2004, published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number
G.S.R 849 (E), dated the 31st December, 2004, except as respects things done or
omitted to be done before such supersession, the Central Government hereby
notifies the following taxable services and the extent of service tax payable
thereon by the person liable to pay service tax for the purposes of the said sub-
section, namely:—
I. The taxable services,—
(A) (i) provided or agreed to be provided by an insurance agent to any person
carrying on the insurance business;
(ia) provided or agreed to be provided by a recovery agent to a banking company or a financial
institution or a non-banking financial company410
(ib) provided or agreed to be provided by a mutual fund agent or distributor, to a
mutual fund or asset management company411412
410 From 11 July 2014 vide Not. No. 10/2014-ST
411 Inserted vide Not. No. 07/2015 - Dated 1-3-2015 w.e.f. 1st day of April, 2015
286
(ic) provided or agreed to be provided by a selling or marketing agent of lottery
tickets in relation to a lottery in any manner to a lottery distributor or selling agent
of the State Government under the provisions of the Lottery (Regulations) Act,
1998 (17 of 1998)413provided or agreed to be provided by a selling or marketing
agent of lottery tickets to a lottery distributor or selling agent
(ii) provided or agreed to be provided by a goods transport agency in respect
of transportation of goods by road, where the person liable to pay
freight is,—
(a) any factory registered under or governed by the Factories Act, 1948 (63 of
1948);
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860)
or under any other law for the time being in force in any part of India;
(c) any co-operative society established by or under any law;
(d) any dealer of excisable goods, who is registered under the Central Excise Act,
1944 (1 of 1944) or the rules made thereunder;
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including
association of persons;
(iii) provided or agreed to be provided by way of sponsorship to anybody corporate
or partnership firm located in the taxable territory;
(iv) provided or agreed to be provided by,-
(A) an arbitral tribunal, or
(B) a firm of advocates or an individual advocate other than senior
advocate, by way of legal services, oran individual advocate or a firm of
advocates by way of support services, or414
412 Deleted vide Notification No. 18/2016-ST w.e.f. 01.04.2016
413 Substituted vide Notification No. 18/2016-ST w.e.f. 01.04.2016
414 Substituted vide Notification No. 18/2016-ST w.e.f. 01.04.2016
287
(C) Government or local authority by way of support services excluding,-
(1) renting of immovable property, and
(2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section
66D of the Finance Act,1994,
to any business entity located in the taxable territory;
(iva) provided or agreed to be provided by a director of a company or a body corporate to the said
company or the body corporate415
(v) provided or agreed to be provided by way of renting of a motor vehicle
designed to carry passengers to any person who is not in the similar line of
business or supply of manpower for any purpose or security services416
or service portion in execution of works contract by any individual, Hindu
Undivided Family or partnership firm, whether registered or not, including
association of persons, located in the taxable territory to a business entity
registered as body corporate, located in the taxable territory;
(B) provided or agreed to be provided by any person which is located in a non-
taxable territory and received by any person located in the taxable territory;
(II) The extent of service tax payable thereon by the person who provides the
service and the person who receives the service for the taxable services specified
in (I) shall be as specified in the following Table, namely:-
Table
Sl.No. Description of a service Percentage
of service
tax payable
by the
person
Percentage
of service
tax payable
by the
person
415 From 11 July 2014 vide Not. No. 10/2014-ST
416 Ibid
288
providing
service
receiving the
service
(1) (2) (3) (4)
1 in respect of services provided or agreed
to be provided by an insurance agent to
any person carrying on insurance
business
Nil 100%
1A in respect of services provided or agreed to be
provided by a recovery agent to a banking
company or a financial institution or a non-
banking financial company417
Nil 100%
1B In respect of services provided or agreed
to be provided by a mutual fund agent or
distributor, to a mutual fund or asset
management company418
Nil 100%
1C In respect of services provided or agreed
to be provided by a selling or marketing
agent of lottery tickets in relation to a
lottery in any manner to a lottery
distributor or selling agent of the State
Government under the provisions of the
Lottery (Regulations) Act, 1998 (17 of
1998)419In respect of service provided or
agreed to be provided by a selling or
marketing agent of lottery tickets to a
lottery distributor or selling agent
Nil 100%
2 in respect of services provided or agreed
to be provided by a goods transport
agency in respect of transportation of
goods by road
Nil 100%
417 From 11 July 2014 vide Not. No. 10/2014-ST
418 Deleted vide Notification No. 18/2016-ST w.e.f. 01.04.2016
419 Substituted vide Notification No. 18/2016-ST w.e.f. 01.04.2016
289
3 in respect of services provided or agreed
to be provided by way of sponsorship
Nil 100%
4 in respect of services provided or agreed
to be provided by an arbitral tribunal
Nil 100%
5 In respect of services provided or agreed
to be provided by a firm of advocates or
an individual advocate other than a senior
advocate by way of legal servicesin
respect of services provided or agreed
to be provided by individual advocate or
a firm of advocates by way of legal
services 420
Nil 100%
5A in respect of services provided or agreed to be
provided by a director of a company or a body
corporate to the said company or the body
corporate421
Nil 100%
6 in respect of services provided or agreed
to be provided by Government or local
authority by way of support services422
excluding,- (1) renting of immovable
property, and (2) services specified in
sub-clauses (i), (ii) and (iii) of clause (a)
of section 66D of the Finance Act,1994
Nil 100%
7 (a) in respect of services provided or
agreed to be provided by way of renting of
a motor vehicle designed to carry
passengers on abated value to any person
Nil
100 %
420 Substituted vide Notification No. 18/2016-ST w.e.f. 01.04.2016
421 From 11 July 2014 vide Not. No. 10/2014-ST
422 Deleted vide Notification No. 18/2016-ST w.e.f 01.04.2016
290
who is not engaged in the similar line of
business
(b) in respect of services provided or
agreed to be provided by way of renting of
a motor vehicle designed to carry
passengers on non abated value to any
person who is not engaged in the similar
line of business
50%
50423%
8. in respect of services provided or agreed
to be provided by way of supply of
manpower for any purpose or security
services424
0% 100 %
9. in respect of services provided or agreed
to be provided in service portion in
execution of works contract
50% 50%
10 in respect of any taxable
services provided or agreed to be
provided by any person who is located in
a non-taxable territory and received by
any person located in the taxable
territory
Nil 100%
Explanation-I. - The person who pays or is liable to pay freight for the
transportation of goods by road in goods carriage, located in the taxable
territory shall be treated as the person who receives the service for the purpose of
this notification.
Explanation-II. - In works contract services, where both service provider and
service recipient is the persons liable to pay tax, the service recipient has the option
423 From 1 October 2014 vide Not. No. 10/2014-ST
424 Not. No. 45/2012-ST dated 7 August 2012
291
of choosing the valuation method as per choice, independent of valuation method
adopted by the provider of service.
2. This notification shall come into force on the 1st day of July, 2012.
[F.No. 334/1/2012- TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
292
31/2012 - EXEMPTION TO GTA SERVICES FOR EXPORTER
Notification No. 31/2012 - Service Tax
New Delhi, the 20th June, 2012
G.S.R…. (E). -In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said
Act) and in supersession of the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No. 18/2009-Service Tax, dated the
7th July, 2009, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), vide number G.S.R.490 (E), dated the 7th July, 2009, except as
respects things done or omitted to be done before such supersession, the Central
Government, being satisfied that it is necessary in the public interest so to do,
hereby exempts the taxable service received by an exporter of goods (hereinafter
referred to as the exporter) and used for export of goods (hereinafter referred to as
the said goods), of the description specified in column (2) of the Table below
(hereinafter referred to as the specified service), from the whole of the service tax
leviable thereon under section 66B of the said Act, subject to the conditions
specified in column (3) of the said Table, namely:-
Table
Sr.
No.
Description of the taxable service Conditions
(1) (2) (3)
1.
Service provided to an exporter for transport of
the said goods by goods transport agency in a
goods carriage from any container freight station
The exporter shall
have to produce the
consignment note, by
whatever name
293
or inland container depot to the port or airport or
land customs station425, as the case may be, from
where the goods are exported; or
Service provided to an exporter in relation to
transport of the said goods by goods transport
agency in a goods carriage directly from their
place of removal, to an inland container depot, a
container freight station, a port or airport, as the
case may be, from where the goods are exported.
called, issued in his
name.
Provided that-
(a) the exemption shall be available to an exporter who,-
(i) informs the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, having jurisdiction over
the factory or the regional office or the head office, as the case may be, in
Form EXP1 appended to this notification, before availing the said exemption;
(ii) is registered with an export promotion council sponsored by the Ministry of
Commerce or the Ministry of Textiles, as the case may be;
(iii) is a holder of Import-Export Code Number;
(iv) is registered under section 69 of the said Act;
(v) is liable to pay service tax under sub-section (2) of section 68 of said Act,
read with item (B) of sub-clause (i) of clause (d) of sub-rule (1) of rule 2 of
the Service Tax Rules,1994, for the specified service;
(b) the invoice, bill or challan, or any other document by whatever name called
issued by the service provider to the exporter, on which the exporter intends to
425 Inserted by Not. No.4/2015-ST
294
avail exemption, shall be issued in the name of the exporter, showing that the
exporter is liable to pay the service tax in terms of item (v) of clause (a);
(c) the exporter availing the exemption shall file the return in Form EXP2, every six
months of the financial year, within fifteen days of the completion of the said six
months;
(d) the exporter shall submit with the half yearly return, after certification, the
documents in original specified in clause (b) and the certified copies of the
documents specified in column (4) of the said Table;
(e) the documents enclosed with the return shall contain a certification from the
exporter or the authorised person, to the effect that taxable service to which the
document pertains, has been received and used for export of goods by mentioning
the specific shipping bill number on the said document.
(f) where the exporter is a proprietorship concern or partnership firm, the
documents enclosed with the return shall be certified by the exporter himself and
where the exporter is a limited company, the documents enclosed with the return
shall be certified by the person authorised by the Board of Directors;
2. This notification shall come into force on the 1st day of July, 2012.
Form EXP1
[See item (i) of clause (a) of proviso ]
S.No----------------------
(to be filled in by the office of jurisdictional Assistant / Deputy Commissioner)
To,
The Deputy Commissioner /Assistant Commissioner of Central Excise
295
Sir,
I/We intend to avail of the exemption from service tax under Notification No.
31/2012-ST, dated 20th June, 2012 in respect of service for transport of the said
goods by road, which has been used for export of goods and the relevant
particulars are as follows.
1. Name of the exporter………
2. Service Tax Registration No……….
3. Division ……… Commissionerate ……………
4 Membership No. the Export Council………….
5 Name of the Export Council…………
6. Address of the registered / head office of exporter:……..
7. Tel. No. and e-mail ID of the exporter……..:
8. Import -Export Code No…………..
9. Details of Bank Account (Name of Bank, branch address and account
number)……..
I/we undertake that I/we shall comply with the conditions laid down in the said
notification and in case of any change in aforementioned particulars; I/We shall
intimate the same.
Date:…..
Place:……..
Signature and full address of Exporter
(Affix stamp)
296
Receipt (to be given by office of Assistant Commissioner/ Deputy Commissioner
having jurisdiction) Received Form EXP1 dated --/--/-- submitted by __________(
name of the exporter). The said intimation is accepted and given acknowledgment
No. _____( S. No. Above)
For Assistant, / Deputy Commissioner
(Stamp)
Form EXP2
[See clause (c) of proviso]
To,
The Deputy Commissioner /Assistant Commissioner of Central Excise
Sir,
I/We have availed of exemption of service tax under Notification No. 31/2012-ST,
dated 20th June, 2012 in respect of services, namely, the services provided for
transport of said goods in a goods carriage by goods transport agency, and has
used the same for export of goods during the period from …… to….. .. and the
relevant particulars are as follows:-
1. Name of the exporter………..
2. Address of the registered / head office of exporter…………
3. Tel. No. and e-mail ID of the exporter……..:
4. Service Tax Registration No…….
5. Division ……… Commissionerate ……………
6. Membership No. Of the Export Council………
7. Import Export Code No…………..
8. Name of the Export Council………..
9. Details of Bank Account (Name of Bank, branch address and account
number)……..
Table-A
297
Sr.
No.
Details of goods exported (on which exemption of service tax
availed) during the six months ending on…………………………..
Details of Shipping Bill/ Bill of export (Please enclose self attested
copy of Shipping Bill or Bill of Export) and Details of goods
exported (in case of exports of more than one commodity, please fill
in the proforma, commodity-wise)
No. Date
Date of
Let
export
order
Export
invoice
no
Date Description
of goods
exported
Quantity
(please
mention
the
unit)
FOB
value
(in
rupees
in lakh)
Table- B
Details of specified service used for export of
goods, covered under the Shipping Bill or Bill
of Export mentioned in Table A in respect of
which the exemption has been availed during
the six months ending on…………………………..
Details of
documents
attached
showing the
use of such
service for
export, the
details of
which are
mentioned in
Table A (self
attested)
Total
amount of
service
tax
claimed
as
exemption
(rupees in
lakhs)
Name of
service
provider
Address
of service
provider
Invoice
No.
Date
298
9. Declaration:-
I / We hereby declare that-
(i) I have complied with all the conditions mentioned in Notification No. 31/2012-
ST, dated 20th June, 2012;
(ii) the information given in this application form is true, correct and complete in
every respect and that I am authorised to sign on behalf of the exporter;
(iii) no CENVAT credit of service tax paid on the specified service used for export of
said goods taken under the CENVAT Credit Rules, 2004;
(iv) I / we, am/ are enclosing all the required documents. Further, I understand
that failure to file the return within stipulated time or non-enclosure of the required
document, duly certified, would debar me/us for the refund claimed aforesaid.
Date:……..
Place:………
Signature and full address of Exporter
(Affix stamp)
Enclosures: as above
[F.No. 334 /1/ 2012-TRU]
(Rajkumar Digvijay)
Under Secretary to the Government of India
299
32/2012 - EXEMPTION OF SERVICES PROVIDED BY TBI AND
STEP Notification No. 32/2012- Service Tax
New Delhi, the 20th June, 2012
G.S.R….. (E).- In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994) and in supersession of the
Government of India in the Ministry of Finance (Department of Revenue)
notification number 9/2007-ST, dated the 1st March,2007, published in the Gazette
of India, Extraordinary, vide number G.S.R. 163 (E), dated the 1st March,2007,
except as respects things done or omitted to be done before such supersession, the
Central Government, on being satisfied that it is necessary in the public interest so
to do, hereby exempts taxable services, provided or to be provided, by a
Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship
Park (STEP) recognized by the National Science and Technology Entrepreneurship
Development Board (NSTEDB) of the Department of Science and Technology,
Government of India or bio-incubators recognized by the Biotechnology Industry
Research Assistance
Council, under Department of Biotechnology, Government of India, from the whole
of the service tax leviable thereon under section 66B of the said Finance Act,
subject to following conditions, namely:-
1. that the STEP or the TBI or the bioincubator426, who intends to avail the
exemption, shall furnish the requisite information in Format I below
containing the details of the incubator along with the information in Format II
below received from each incubatee to the concerned Assistant
Commissioner or the Deputy Commissioner of Central Excise, as the case
may be, before availing the exemption; and
426 Inserted vide Notification No. 12/2016-ST w.e.f. 01.04.2016
300
2. that the STEP or the TBI or the bioincubator427 shall furnish the information
in the said Format I and Format II in the same manner before the 30th day
of June of each financial year.
Format - I - Information to be furnished by TBI or the STEP or the Bio-
Incubator428
Filed in the financial year ______
(a) Name of the Technology Business Incubator / Science and Technology
Entrepreneurship Park /bio-incubator429 ____________
(b) Address ____________
(c) Whether availing benefit of exemption for first time _____________
(d) If the answer to 3 is not in affirmative, the date from which benefit is being
availed _____
(e) Details of taxable services provided during the previous financial year :-
Sl. No. Description of Taxable
Service
Value of taxable Service Provided
To incubatee To others
(f) Details of Taxable services provided by incubatees as per enclosure
______________
Place _______
Date _______
Signature of the authorised person
Acknowledgement
I hereby acknowledge the receipt of Format I for the period________
427 Inserted vide Notification No. 12/2016-ST w.e.f. 01.04.2016
428 Inserted vide Notification No. 12/2016-ST w.e.f. 01.04.2016
429 Inserted vide Notification No. 12/2016-ST w.e.f. 01.04.2016
301
Place ______
Date ______
Signature of the Officer of
Central Excise and Service Tax
(with Name and Official seal)
Format II – Information to be obtained by TBI / STEP /the Bio-
Incubator430 from each incubatee and to be filed along with Format I
1. Name of the Incubatee ________
2. Address ________
3. Details of the project _________
4. Date of signing agreement with the TBI / STEP (incubator) /the Bio-Incubator431
_______
5. Total business turnover during the previous financial year ________
6. Details of taxable services provided during the previous financial year ________
Sl.
No.
Description of Taxable Service Value of Service Provided
Place ____
Date ____
Signature of the authorized person
2. This notification shall come into force on the 1st day of July, 2012.
[F.No. 334 /1/ 2012-TRU]
(Rajkumar Digvijay)
Under Secretary to the Government of India
430 Inserted vide Notification No. 12/2016-ST w.e.f. 01.04.2016
431 Inserted vide Notification No. 12/2016-ST w.e.f. 01.04.2016
302
303
33/2012 - EXEMPTION TO SMALL SERVICE PROVIDERS
Notification No. 33/2012 - Service Tax
New Delhi, the 20th June, 2012
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93
of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance
Act), and in supersession of the Government of India in the Ministry of Finance
(Department of Revenue) notification No. 6/2005-Service Tax, dated the 1st March,
2005, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i), vide G.S.R. number 140(E), dated the 1st March, 2005, except as
respects things done or omitted to be done before such supersession, the Central
Government, being satisfied that it is necessary in the public interest so to do,
hereby exempts taxable services of aggregate value not exceeding ten lakh rupees
in any financial year from the whole of the service tax leviable thereon under
section 66B of the said Finance Act:
Provided that nothing contained in this notification shall apply to,-
(i) taxable services provided by a person under a brand name or trade name,
whether registered or not, of another person; or
(ii) such value of taxable services in respect of which service tax shall be paid by
such person and in such manner as specified under sub-section (2) of section 68
of the said Finance Act read with Service Tax Rules,1994.
2. The exemption contained in this notification shall apply subject to the following
304
conditions, namely:-
(i) the provider of taxable service has the option not to avail the exemption
contained in this notification and pay service tax on the taxable services provided
by him and such option, once exercised in a financial year, shall not be
withdrawn during the remaining part of such financial year;
(ii) the provider of taxable service shall not avail the CENVAT credit of service tax
paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules,
2004 (herein after referred to as the said rules), used for providing the said
taxable service, for which exemption from payment of service tax under this
notification is availed of;
(iii)the provider of taxable service shall not avail the CENVAT credit under rule 3 of
the said rules, on capital goods received, during the period in which the service
provider avails exemption from payment of service tax under this notification;
(iv) the provider of taxable service shall avail the CENVAT credit only on such
inputs or input services received, on or after the date on which the service
provider starts paying service tax, and used for the provision of taxable services
for which service tax is payable;
(v) the provider of taxable service who starts availing exemption under this
notification shall be required to pay an amount equivalent to the CENVAT credit
taken by him, if any, in respect of such inputs lying in stock or in process on the
date on which the provider of taxable service starts availing exemption under
this notification;
(vi) the balance of CENVAT credit lying unutilised in the account of the taxable
service provider after deducting the amount referred to in sub-paragraph (v), if
any, shall not be utilised in terms of provision under sub-rule (4) of rule 3 of the
said rules and shall lapse on the day such service provider starts availing the
exemption under this notification;
(vii) where a taxable service provider provides one or more taxable services from
one or more premises, the exemption under this notification shall apply to the
305
aggregate value of all such taxable services and from all such premises and not
separately for each premises or each services; and
(viii) the aggregate value of taxable services rendered by a provider of taxable
service from one or more premises, does not exceed ten lakh rupees in the
preceding financial year.
3. For the purposes of determining aggregate value not exceeding ten lakh rupees,
to avail exemption under this notification, in relation to taxable service provided
by a goods transport agency, the payment received towards the gross amount
charged by such goods transport agency under section 67 of the said Finance Act
for which the person liable for paying service tax is as specified under sub-
section (2) of section 68 of the said Finance Act read with Service Tax Rules,
1994, shall not be taken into account.
Explanation.- For the purposes of this notification,-
(A) “brand name” or “trade name” means a brand name or a trade name, whether
registered or not, that is to say, a name or a mark, such as symbol, monogram,
logo, label, signature, or invented word or writing which is used in relation to
such specified services for the purpose of indicating, or so as to indicate a
connection in the course of trade between such specified services and some
person using such name or mark with or without any indication of the identity of
that person;
(B) “aggregate value” means the sum total of value of taxable services charged in
the first consecutive invoices issued during a financial year but does not include
value charged in invoices issued towards such services which are exempt from
whole of service tax leviable thereon under section 66B of the said Finance Act
under any other notification.”
4. This notification shall come into force on the 1st day of July, 2012.
[F.No. 334 /01/2012- TRU] (Raj Kumar Digvijay)
Under Secretary to the Government of India
306
34/2012 - RESCINDING OF EARLIER 81 NOTIFICATIONS
Notification No. 34/2012- Service Tax
New Delhi, the 20th June, 2012
G.S.R…..(E).- In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby rescinds the
following notifications of the Government of India in the Ministry of Finance
(Department of Revenue), as specified in column (2) of the Table below, except as
respects things done or omitted to be done before such recession namely:-Table
SL.
NO.
(1)
NOTIFICATION NO. AND DATE
(2)
1. 06/2012- Service Tax, dated 17-03-2012.[G.S.R. 204(E), dated 17-03-2012]
2. 45/2011 - Service Tax, dated 12-09-2011.[G.S.R. 672(E), dated 12-09-
2011]
3. 42/2011 - Service Tax, dated 25-07-2011.[G.S.R. 566(E), dated 25-07-
2011]
4. 33/2011 - Service Tax, dated 25-04-2011.[G.S.R 341(E) dated 25-04-2011]
5. 31/2011 - Service Tax, dated 25-04-2011.[G.S.R 339(E) dated 25-04-2011]
6. 30/2011 - Service Tax, dated 25-04-2011.[G.S.R 338(E) dated 25-04-2011]
7. 11/2011 - Service Tax, dated 01-03-2011 .[G.S.R 168(E) dated 01-03-2011]
8. 10/2011 - Service Tax, dated 01-03-2011 .[G.S.R.167(E) dated 01-03-2011]
9. 09/2011 - Service Tax, dated 01-03-2011. [G.S.R.166(E) dated 01-03-2011]
10. 08/2011 - Service Tax, dated 01-03-2011. [G.S.R.165(E) dated 01-03-2011]
11. 07/2011 - Service Tax, dated 01-03-2011. [G.S.R.164(E) dated 01-03-2011]
12. 06/2011 - Service Tax, dated 01-03-2011. [G.S.R. 163(E) dated 01-03-
2011]
13. 05/2011 - Service Tax, dated 01-03-2011. [G.S.R. 162(E) dated 01-03-
307
2011]
14. 58/2010 - Service Tax, dated 21-12-2010. [G.S.R.996(E) dated 21-12-2010]
15. 53/2010 - Service Tax, dated 21-12-2010. [G.S.R.991(E) dated 21-12-2010]
16. 50/2010 - Service Tax, dated 08-10-2010. [G.S.R.823(E) dated 08-10-2010]
17. 47/2010 - Service Tax, dated 03-09-2010. [G.S.R 727(E) dated 03-09-2010]
18. 42/2010 - Service Tax, dated 28-06-2010. [G.S.R.563(E) dated 28-06-2010]
19. 41/2010 - Service Tax, dated 28-06-2010. [G.S.R.562(E) dated 28-06-2010]
20. 38/2010 - Service Tax, dated 28-06-2010. [G.S.R.559(E) dated 28-06-2010]
21. 32/2010 - Service Tax, dated 22-06-2010. [G.S.R.538(E) dated 22-06-2010]
22. 31/2010 - Service Tax, dated 22-06-2010. [G.S.R.537(E) dated 22-06-2010]
23. 30/2010 - Service Tax, dated 22-06-2010. [G.S.R.536(E) dated 22-06-2010]
24. 28/2010 - Service Tax, dated 22-06-2010. [G.S.R.534(E) dated 22-06-2010]
25. 27/2010 - Service Tax, dated 22-06-2010. [G.S.R.533(E) dated 22-06-2010]
26. 25/2010 - Service Tax, dated 22-06-2010. [G.S.R. 531(E)dated 22-06-2010]
27. 23/2010 - Service Tax, dated 29-04-2010. [G.S.R.345(E) dated 29-04-2010]
28. 13/2010 - Service Tax, dated 27-02-2010. [G.S.R.157(E) dated 27-02-2010]
29. 12/2010 - Service Tax, dated 27-02-2010. [G.S.R.156(E) dated 27-02-2010]
30. 11/2010 - Service Tax, dated 27-02-2010. [G.S.R.155(E) dated 27-02-2010]
31. 10/2010 - Service Tax, dated 27-02-2010. [G.S.R.154(E) dated 27-02-2010]
32. 08/2010 - Service Tax, dated 27-02-2010. [G.S.R.152(E) dated 27-02-2010]
33. 42/2009 - Service Tax, dated 12-11-2009. [G.S.R.821(E) dated 12-11-2009]
34. 41/2009 - Service Tax, dated 23-10-2009. [G.S.R.776(E) dated 23-10-2009]
35. 39/2009 - Service Tax, dated 23-09-2009. [G.S.R.696(E) dated 23-09-2009]
36. 33/2009- Service Tax, dated 1-9-2009. [G.S.R.627(E) dated 1-9-2009]
37. 32/2009 - Service Tax, dated 1-09-2009. [G.S.R.626(E) dated 1-9-2009]
38. 31/2009 - Service Tax, dated 1-09-2009. [G.S.R.625(E) dated 1-9-2009]
39. 30/2009 - Service Tax, dated 31-08-2009. [G.S.R.619(E) dated 31-08-2009]
40. 24/2009- Service Tax, dated 27-7-2009. [G.S.R.551(E) dated 27-7-2009]
41. 20/2009 - Service Tax, dated 07-07-2009. [G.S.R.492(E) dated 07-07-2009]
42. 19/2009 - Service Tax, dated 07-07-2009. [G.S.R.491(E) dated 07-07-2009]
43. 01/2009 - Service Tax, dated 05-01-2009. [G.S.R.10(E) dated 05-01-2009]
308
44. 14/2008 - Service Tax, dated 01-03-2008. [G.S.R.158(E) dated 01-03-2008]
45. 13/2008- Service Tax, dated 01-03-2008. [G.S.R.157(E) dated 01-03-2008]
46. 34/2007 - Service Tax, dated 23-05-2007. [G.S.R.387(E) dated 23-05-2007]
47. 33/2007 - Service Tax, dated 23-05-2007. [G.S.R.386(E) dated 23-05-2007]
48. 25/2007- Service Tax, dated 22-05-2007. [G.S.R.371(E) dated 22-05-2007]
49. 12/2007- Service Tax dated 01-03-2007. [G.S.R.166(E) dated 01-03-2007]
50. 11/2007- Service Tax dated 01-03-2007. [G.S.R.165(E) dated 01-03-2007]
51. 10/2007- Service Tax dated 01-03-2007. [G.S.R.164(E) dated 01-03-2007]
52. 08/2007- Service Tax dated 01-03-2007. [G.S.R.162(E) dated 01-03-2007]
53. 22/2006- Service Tax, dated 31-05-2006. [G.S.R.328(E) dated 31-05-2006]
54. 06/2006- Service Tax, dated 01-03-2006. [G.S.R.120(E) dated 01-03-2006]
55. 04/2006- Service Tax, dated 01-03-2006. [G.S.R.118(E) dated 01-03-2006]
56. 01/2006- Service Tax, dated 01-03-2006. [G.S.R.115(E) dated 01-03-2006]
57. 29/2005- Service Tax, dated 15-07-2005. [G.S.R.477(E) dated 15-07-2005]
58. 21/2005- Service Tax, dated 07-06-2005. [G.S.R.363(E) dated 07-06-2005]
59. 17/2005- Service Tax, dated 07-06-2005. [G.S.R.359(E) dated 07-06-2005]
60. 08/2005- Service Tax, dated 01-03-2005. [G.S.R.142(E) dated 01-03-2005]
61. 34/2004- Service Tax, dated 03-12-2004. [G.S.R.789(E) dated 03-12-2004]
62. 33/2004- Service Tax, dated 3-12-2004. [G.S.R.788(E) dated 3-12-2004]
63. 29/2004- Service Tax, dated 22-09-2004. [G.S.R.632(E) dated 22-09-2004]
64. 24/2004- Service Tax, dated 10-09-2004. [G.S.R.598(E) dated 10-09-2004]
65. 17/2004- Service Tax, dated 10-09-2004. [G.S.R.591(E) dated 10-09-2004]
66. 14/2004- Service Tax, dated 10-09-2004. [G.S.R.588(E) dated 10-09-2004]
67. 13/2004- Service Tax, dated 10-09-2004. [G.S.R.587(E) dated 10-09-2004]
68. 16/2003- Service Tax, dated 11-07-2003. [G.S.R.542(E) dated 11-07-2003]
69. 14/2003- Service Tax, dated 20-06-2003. [G.S.R.505(E) dated 20-06-2003]
70. 13/2003- Service Tax, dated 20-06-2003. [G.S.R.504(E) dated 20-06-2003]
71. 12/2003- Service Tax, dated 20-06-2003. [G.S.R.503(E) dated 20-06-2003]
72. 10/2003- Service Tax, dated 20-06-2003. [G.S.R.502(E) dated 20-06-2003]
73. 18/2002- Service Tax, dated 16-12-2002. [G.S.R.823(E) dated 16-12-2002]
74. 16/2002- Service Tax, dated 02-08-2002. [G.S.R.546(E) dated 02-08-2002]
309
75. 10/2002- Service Tax, dated 01-08-2002. [G.S.R.538(E)dated 01-08-2002]
76. 4/2000- Service Tax, dated 31-07-2000. [G.S.R.643(E) dated 31-07-2000]
77. 3/2000- Service Tax, dated 06-07-2000. [G.S.R.588(E) dated 06-07-2000]
78. 2/2000- Service Tax, dated 01-03-2000. [G.S.R.210(E) dated 01-03-2000]
79. 22/1997- Service Tax, dated 26-06-1997. [G.S.R. 348(E) dated 26-06-1997]
80. 12/1997- Service Tax, dated 14-02-1997. [G.S.R.74(E) dated 14-02-1997]
81. 03/1994- Service Tax, dated 30-06-1994. [G.S.R.555(E) dated 30-06-1994]
2. This notification shall come into force on the 1st day of July, 2012.
[F.No. 334 /1/ 2012-TRU]
(Rajkumar Digvijay)
Under Secretary to the Government of India
310
35/2012 - Earlier Works Contract Composition Scheme rescinded
Notification No. 35/2012 - Service Tax
New Delhi, the 20th June, 2012
G.S.R. (E).- In exercise of the powers conferred by sections 93 and 94 of the
Finance Act, 1994 (32 of 1994), the Central Government hereby rescinds the
notification of the Government of India, in the Ministry of Finance (Department of
Revenue) No. 32/ 2007 – Service Tax, dated the 22nd May, 2007, published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section(i), vide number
G.S.R. 378(E), dated the 22nd May 2007, except as respects things done or omitted
to be done before such rescission.
2. This notification shall come into force on the 1st day of July, 2012.
[F. No.334/1/2012 -TRU]
(Rajkumar Digvijay)
Under Secretary to the Government of India
311
28/2011 - NOTIFIED CONTINUOUS SUPPLY OF SERVICES
Notification No.28/2011 – Service Tax432
G.S.R. (E).- In exercise of the powers conferred under clause (a) and clause (hhh)
of sub-section (2) of section 94 the Finance Act, 1994 (32 of 1994) (hereinafter
referred to as the Finance Act), read with clause (c) of rule (2) of the Point of
Taxation Rules, 2011(hereinafter referred to as the said rules), the Central
Government hereby notifies that the provision of taxable services referred of
telecommunication service and service portion in execution of a works contract,
shall be treated as continuous supply of service, for the purpose of the said rules.
(SAMAR NANDA)
Under Secretary to the Government of India
[F. No. 334/3/ 2011 – TRU]
432 As amended vide Not. No. 38/2012-ST dated 20 June 2012
312
39/2012 - REBATE ON INPUTS AND INPUT SERVICES
Notification No.39/2012 - Service Tax
New Delhi, the 20th June, 2012
GSR …. (E). In exercise of the powers conferred by rule 6A of the Service Tax
Rules, 1994 (hereinafter referred to as the said rules), the Central Government
hereby directs that there shall be granted rebate of the whole of the duty paid on
excisable inputs or the whole of the service tax and cess paid on all input services
(herein after referred to as ‘input services’), used in providing service exported in
terms of rule 6A of the said rules, to any country other than Nepal and Bhutan,
subject to the conditions, limitations and procedures specified hereinafter,-
2. Conditions and limitations:-
(a) that the service has been exported in terms of rule 6A of the said rules;
(b) that the duty on the inputs, rebate of which has been claimed, has been
paid to the supplier;
(c) that the service tax and cess, rebate of which has been claimed, have
been paid on the input services to the provider of service;
Provided if the person is himself is liable to pay for any input services; he
should have paid the service tax and cess to the Central Government.
(d) the total amount of rebate of duty, service tax and cess admissible is not
less than one thousand rupees;
(e) no CENVAT credit has been availed of on inputs and input services on which
rebate has been claimed; and
(f) that in case,-
(i) the duty or, as the case may be, service tax and cess, rebate of which
has been claimed, has not been paid; or
313
(ii) the service, rebate for which has been claimed, has not been
exported; or
(iii) CENVAT credit has been availed on inputs and input services on which
rebate has been claimed,
the rebate paid, if any, shall be recoverable with interest in accordance with
the provisions of section 73 and section 75 of the Finance Act, 1994 (32 of
1994)
3. Procedure.
3.1 Filing of Declaration.- The provider of service to be exported shall, prior to
date of export of service, file a declaration with the jurisdictional Assistant
Commissioner of Central Excise or Deputy Commissioner of Central Excise,
as the case may be, specifying the service intended to be exported with,-
(a) description, quantity, value, rate of duty and the amount of duty
payable on inputs actually required to be used in providing service to
be exported;
(b) description, value and the amount of service tax and cess payable on
input services actually required to be used in providing service to be
exported.
3.2 Verification of declaration.- The Assistant Commissioner of Central Excise
or the Deputy Commissioner of Central Excise, as the case may be, shall
verify the correctness of the declaration filed prior to such export of
service, if necessary, by calling for any relevant information or samples of
inputs and if after such verification, the Assistant Commissioner of Central
Excise or the Deputy Commissioner of Central Excise is satisfied that there
is no likelihood of evasion of duty, or as the case may be, service tax and
cess, he may accept the declaration.
3.3 Procurement of input materials and receipt of input services.- The provider
314
of service to be exported shall,-
(i) obtain the inputs required for use in providing service to be exported,
directly from a registered factory or from a dealer registered for the
purposes of the CENVAT Credit Rules, 2004 accompanied by invoices
issued under the Central Excise Rules, 2002;
(ii) receive the input services required for use in providing service to be
exported and an invoice, a bill or, as the case may be, a challan issued
under the provisions of Service Tax Rules, 1994.
3.4 Presentation of claim for rebate.-
(a) (i) claim of rebate of the duty paid on the inputs or the service tax and
cess paid on input services shall be filed with the jurisdictional
Assistant Commissioner of Central Excise or Deputy Commissioner of
Central Excise, as the case may be, after the service has been
exported;
(ii) such application shall be accompanied by, –
(a) invoices for inputs issued under the Central Excise Rules, 2002 and
invoice, a bill, or as the case may be, a challan for input services
issued under the Service Tax Rules, 1994, in respect of which
rebate is claimed;
(b) documentary evidence of receipt of payment against service
exported, payment of duty on inputs and service tax and cess on
input services used for providing service exported, rebate of which
is claimed;
(c) a declaration that such service, has been exported in terms of rule
6A of the said rules, along with documents evidencing such export.
(b) The jurisdictional Assistant Commissioner of Central Excise or Deputy
Commissioner of Central Excise, as the case may be, having regard to the
declaration, if satisfied that the claim is in order, shall sanction the rebate
either in whole or in part.
315
Explanation 1.- For the purposes of this notification “service tax and cess” means,-
(a) service tax leviable under section 66 or section 66B of the Finance Act, 1994
(32 of 1994);
(b) education cess on taxable service levied under section 91 read with section 95
of the Finance (No.2) Act, 2004 (23 of 2004); and
(c) Secondary and Higher Education Cess on taxable services levied under section
136 read with section 140 of the Finance Act, 2007 (22 of 2007).
Explanation 2.- For the purposes of this notification “duty” means, duties of excise
leviable under the following enactments, namely:-
(a) the Central Excise Act, 1944 (1 of 1944);
(b) the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58
of 1957);
(c) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40
of 1978);
(d) National Calamity Contingent duty leviable under section 136 of the
Finance Act, 2001 (14 of 2001), as amended by section 169 of the Finance
Act, 2003 (32 of 2003), section 3 of the Finance Act, 2004 (13 of 2004)
and further amended by section 123 of the Finance Act, 2005 (18 of 2005);
(e) special duty of excise collected under a Finance Act;
(f) additional duty of excise as levied under section 157 of the Finance Act,
2003 (32 of 2003);
(g) Education Cess on excisable goods as levied under section 91 read with
section 93 of the Finance (No.2) Act, 2004 (23 of 2004); and
(h) the additional duty of excise leviable under section 85 of the Finance Act,
316
2005 (18 of 2005).
(i)
the Secondary and Higher Education Cess on excisable goods leviable
under section 136 read with section 138 of the Finance Act, 2007 (22 of
2007).
Annexure
FORM ASTR-2
(Application for filing a claim of rebate of duty paid on inputs, service tax
and cess paid on input services)
(PART A: To be filled by the applicant)
Date………….
Place…………
To,
Assistant Commissioner of Central Excise/Deputy Commissioner of Central Excise
………………………….. (full postal address).
Madam/Sir,
I/We…………………………………..,(name of the person claiming rebate) holding service
tax registration No. …………………………………………, located in………………………. (address
of the registered premises) hereby declare that I/We have exported
………………………………………service (name of the service) under rule 6A of the Service
Tax Rules, 1994 to ……………………(name of the country to which service has been
exported), and service tax amounting to ……………………. (amount in rupees of service
tax) and education cess amounting to ……………………. (amount in rupees of cess) has
been paid on input services and duty amounting to ………… (amount in rupees of
duty) has been paid on inputs.
317
2. I/We also declare that the payment against such service exported has
already been received in India in full…………………………………………………. (details of
receipt of payment).
3. I/We request that the rebate of the duty, service tax and cess on inputs
and input services used in providing service exported by me/us in terms of rule 6A
of the Service Tax Rules, 1994 may be granted at the earliest. The following
documents are enclosed in support of this claim for rebate.
1.
2.
3.
Declaration:
(a) We hereby certify that we have not availed CENVAT credit on inputs and
input services on which rebate has been claimed.
(b) We have been granted permission by Assistant Commissioner of Central
Excise or Deputy Commissioner of Central Excise, vide C. No. ______, dated
______ for working under notification No. _____ , dated _____ .
(Signature and name of the service provider or his authorised agent with date)
(PART B: To be filled by the sanctioning authority)
Date of receipt of the rebate claim: ______________
Date of sanction of the rebate claim: ______________
Amount of rebate claimed: Rs. ______________
Amount of rebate sanctioned: Rs. ______________
If the claim is not processed within 15 days of the receipt of the claim, indicated
briefly reasons for delay.
Place:
Date:
318
Signature of the Assistant Commissioner/
Deputy Commissioner of Central Excise.
4. This notification shall come into force on the 1st day of July, 2012.
F. No. 334/1/2012-TRU
(Raj Kumar Digvijay)
Under Secretary to the Government of India
319
40/2012 - EXEMPTION ON SERVICES PROVIDED TO SEZ AUTHORISED OPERATIONS
Notification No. 40 / 2012-Service Tax433
New Delhi, the 20th June, 2012
G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 93 of
the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act) read
with sub-section 3 of section 95 of Finance (No.2), Act, 2004 (23 of 2004) and sub-
section 3 of section 140 of the Finance Act, 2007(22 of 2007) and in supersession
of the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 17/2011-Service Tax, dated the 1st March, 2011,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
vide number G.S.R.174(E), dated the 1st March, 2011, except as respects things
done or omitted to be done before such supersession, the Central Government, on
being satisfied that it is necessary in the public interest so to do, hereby exempts
the services on which service tax is leviable under section 66B of the said Act,
received by a unit located in a Special Economic Zone (hereinafter referred to as
SEZ) or Developer of SEZ and used for the authorised operations, from the whole of
the service tax, education cess and secondary and higher education cess leviable
thereon.
2. The exemption contained in this notification shall be subject to the following
conditions, namely:-
(a) the exemption shall be provided by way of refund of service tax paid on the
specified services received by a unit located in a SEZ or the developer of SEZ and
used for the authorised operations:
Provided that where the specified services received in SEZ and used for the
authorised operations are wholly consumed within the SEZ, the person liable to pay
433 Superseded by Not. No. 12/2013-ST dated 1 July 2013
320
service tax has the option not to pay the service tax ab initio instead of the SEZ
unit or the developer claiming exemption by way of refund in terms of this
notification.
Explanation.- For the purposes of this notification, the expression “wholly
consumed” refers to such specified services received by the unit of a SEZ or the
developer and used for the authorised operations, where the place of provision
determinable in accordance with the Place of Provision of Services Rules,
2012(hereinafter referred as the POP Rules) is as under:-
1. in respect of services specified in rule 4 of the POP Rules, the place where
the services are actually performed is within the SEZ ; or
2. in respect of services specified in rule 5 of the POP Rules, the place where
the property is located or intended to be located is within the SEZ; or
3. in respect of services other than those falling under clauses (i) and (ii), the
recipient does not own or carry on any business other than the operations in
SEZ;
(b) where the specified services received by the unit of a SEZ or developer are not
wholly consumed within SEZ, maximum refund shall be restricted to the extent of
the ratio of export turnover of goods and services multiplied by the service tax paid
on services other than wholly consumed services to the total turnover for the given
period to which the claim relates, i.e.,
Refund amount = (Export turnover of goods Services of SEZ Unit/Developer) + X
Service tax paid on services other than wholly consumed Services (both for SEZ
and DTA) / Total turnover for the period
Explanation.- For the purposes of condition (b),-
1. “refund amount” means the maximum refund that is admissible for the
period;
2. “export turnover of goods” means the value of final products and
intermediate products cleared during the relevant period and exported;
321
3. “export turnover of services” means the value of the export service
calculated in the following manner, namely:-
Export turnover of services = payments received during the relevant period for
export services + export services whose provision has been completed for which
payment had been received in advance in any period prior to the relevant period –
advances received for export services for which the provision of service has not
been completed during the relevant period;
4. “total turnover” means sum total of the value of-
1. (a) all excisable goods cleared during the relevant period including exempted
goods, dutiable goods and excisable goods exported;
2. export turnover of services determined in terms of clause (C) and the value
of all other services, during the relevant period; and
3. for the purpose of claiming exemption, the Unit of a SEZ or developer shall
obtain a list of services that are liable to service tax as are required for the
authorised operations approved by the Approval Committee (hereinafter
referred to as the specified services) of the concerned SEZ;
4. for the purpose of claiming ab initio exemption, the unit of a SEZ or
developer shall furnish a declaration in Form A-1, verified by the Specified
Officer of the SEZ, in addition to the list specified under condition (c); the
unit of a SEZ or developer who does not own or carry on any business other
than the operations in SEZ, shall declare to that effect in Form A-1;
5. the unit of a SEZ or developer claiming the exemption shall declare that the
specified services on which exemption and/ or refund is claimed, have been
used for the authorised operations;
6. the unit of a SEZ or developer claiming the exemption by way of refund,
should have paid the amount indicated in the invoice, bill or as the case may
be, challan, including the service tax payable, to the person liable to pay the
said tax or the amount of service tax payable under reverse charge, as the
case may be, under the provisions of the said Act;
322
7. no CENVAT credit of service tax paid on the specified services used for the
authorised operations in a SEZ has been taken under the CENVAT Credit
Rules, 2004;
8. no refund shall be available on services wholly consumed for operations in
the Domestic Tariff Area (DTA) worked out in the same manner as clauses (i)
and (ii) of the explanation to condition (a);
9. exemption or refund of service tax paid on the specified services other than
wholly consumed services used for the authorised operations in a SEZ shall
not be claimed except under this notification;
10.the unit of a SEZ or developer, who intends to avail exemption and or refund
under this notification, shall maintain proper account of receipt and use of
the specified services on which exemption is claimed, for authorised
operations in the SEZ.
3. The following procedure should be adopted for claiming the benefit of the
exemption contained in this notification, namely:-
1. the unit of a SEZ or developer, who has paid the service tax leviable under
section 66B of the said Act shall avail the exemption by filling a claim for
refund of service tax paid on specified services used for the authorised
operations;
2. the unit of a SEZ or developer who is registered as an assessee under the
Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the
said Act or the rules made thereunder, shall file the claim for refund to the
Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, having jurisdiction over the SEZ or
registered office or the head office of the SEZ unit or developer, as the case
may be, in Form A-2;
3. the unit of a SEZ or developer who is not so registered under the provisions
referred to in clause (b), shall, before filing a claim for refund under this
notification, file a declaration with the Assistant Commissioner of Central
Excise or the Deputy Commissioner of Central Excise, as the case may be,
323
having jurisdiction over the SEZ or registered office or the head office of the
SEZ unit or developer, as the case may be, in Form A-3;
4. the Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, shall, after due verification, allot a
service tax code number to the unit of a SEZ or developer, referred to in
clause (c), within seven days from the date of receipt of the said declaration,
in Form A-3;
5. claim for refund shall be filed, within one year from the end of the month in
which actual payment of service tax was made by such developer or unit, to
the registered service provider or such extended period as the Assistant
Commissioner of Central Excise or the Deputy Commissioner of Central
Excise, as the case may be, shall permit;
6. the refund claim shall be accompanied by the following documents, namely:-
1. a copy of the list of specified services as are required for the authorized
operations in the SEZ, as approved by the Approval Committee; wherever
applicable, a copy of the declaration made in Form A-1;
2. invoice or a bill or as the case may be, a challan, issued in accordance with
the provisions of the said Act or rules made thereunder, in the name of the
unit of a SEZ or developer, by the registered service provider, along with
proof of payment for such specified services used for the authorised
operations and service tax paid, in original;
3. a declaration by the unit of a SEZ or developer, claiming such exemption, to
the effect that—
1. the specified services on which refund of service tax claimed, has been used
for the authorized operations in the SEZ ;
2. proper account of the specified services received and used for the authorised
operations are maintained by the developer or unit of the SEZ and the same
shall be produced to the officer sanctioning refund, on demand;
3. accounts or documents furnished by the unit of a SEZ or developer as proof
of payment of service tax claimed as refund, based on the invoice, or bill , or
as the case may be challan issued by the registered service provider
324
indicating the service tax paid on such specified services, are true and
correct in all respects;
7. the Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, after verifying that,-
1. the refund claim is complete in all respects;
2. the information furnished in Form A-2 and in supporting documents correctly
indicate the service tax involved in the specified services used for the
authorised operations in the SEZ, which is claimed as refund, and has been
actually paid to the service provider, shall refund the service tax paid on the
specified services;
8. a service provider shall provide the specified services falling under wholly
consumed category, under ab initio exemption granted by this notification, to
a unit of a SEZ or developer, for authorised operations, subject to the
submission of list specified in condition (c) under paragraph 2 and a
declaration in Form A-1;
9. where any refund of service tax paid on specified services is erroneously
refunded for any reasons whatsoever, such service tax refunded shall be
recoverable under the provisions of the said Act and the rules made there
under, as if it is recovery of service tax erroneously refunded;
4. Words and expressions used in this notification and defined in the Special
Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, shall apply,
so far as may be, in relation to refund of service tax under this notification as they
apply in relation to a SEZ.
Explanation.- For the purposes of this notification, “statutory auditor” refers to a
Chartered Accountant who audits the annual accounts of the unit of a SEZ or
developer for the purposes of the Companies Act, 1956 (1 of 1956) or the Income
tax Act, 1961(43 of 1961).
5. This notification shall come into force on the 1st day of July, 2012.
325
(Rajkumar Digvijay)
Under Secretary to the Government of India
[F. No. 334/1/2012-TRU]
FORM A-1
DECLARATION BY THE UNIT OF A SEZ OR DEVELOPER FOR AVAILING AB
INITIO EXEMPTION UNDER NOTIFICATION No._____ DATED ____
[Refer condition (d) under paragraph 2]
1. Name of the SEZ Unit/Developer:
2. Address of the SEZ Unit/Developer with Telephone and Email:
3. Permanent Account Number(PAN) of the SEZ Unit/Developer:
4. Import and Export Code Number:
5. Jurisdictional Central Excise/Service Tax Division:
6. Service Tax Registration Number/Service Tax Code:
7. Declaration: I/We hereby declare that-
1. The information given in this application form is true, correct and complete in
every respect and I am authorised to sign on behalf of the SEZ
Unit/Developer;
2. I/We maintain proper account of specified services, as approved by the
Approval Committee of SEZ, received and used for authorised operations in
SEZ; I/we shall make available such accounts and related records, at all
reasonable times, to the jurisdictional Central Excise Officers for inspection or
scrutiny.
3. I/We shall use/have used specified services for authorised operations in the
SEZ.
4. I/We declare that we do not own or carry on any business other than the
operations in SEZ [where this item is not applicable, declaration may be
submitted after striking out the inapplicable portion];
5. I/We are aware that the Declaration is valid only for the purpose specified in
Notification _______ dated ______ and is subject to fulfillment of conditions.
326
6. I/We intend to claim ab initio exemption from the following service
provider(s) in the Domestic Tariff Area(DTA):
Sl.No. specified service(s) to be
received from the DTA
service provider(s)
DTA Service provider(s) who provide(s)
the specified service(s), for SEZ
authorised operations
Name and
address
Service Tax
Registration No.
(1) (2) (3) (4)
Signature and Name of Authorised Person with stamp
Date:
Place:
I have verified the above Declaration; it is correct
Signature, date and stamp of the Specified Officer of the SEZ (Specified Officer
shall retain a copy of the verified Declaration, for the purpose of record)
FORM A-2
APPLICATION FOR CLAIMING REFUND OF SERVICE TAX PAID ON
SPECIFIED SERVICES USED FOR AUTHORISED OPERATIONS IN SEZ
To
The Assistant/Deputy Commissioner of Central Excise/Service Tax
___________ Division, _______ Commissionerate
Sir,
I /We claim refund of Rs.................. (Rupees in words)
327
(a) in respect of service tax paid on ‘wholly consumed’ specified services used for
the authorized operations in SEZ, as approved by the Approval Committee of the
_________ SEZ [ Rupees ____________]
(b) in respect of service tax paid on specified services, other than those that are
wholly consumed, used for the authorized operations of SEZ Unit/Developer, as
approved by the Approval Committee of the _________ SEZ [ Rupees
____________].
1. Name of the SEZ Unit/Developer:
2. Address of the SEZ Unit/Developer with Telephone and Email:
3. Address of the Registered/Head Office with Telephone and Email:
4. Permanent Account Number(PAN) of the SEZ Unit/Developer:
5. Import and Export Code Number:
6. Jurisdictional Central Excise/Service Tax Division:
7. Service Tax Registration Number/Service Tax Code:
8. Information regarding Bank Account ( Bank, Address of Branch, Account
Number) in which refund amount should be credited/to be deposited:
9. Details regarding Service Tax refund claimed:
9.1 Refund arising out of ‘wholly consumed’ specified services:
Table-A
Sl.
No
.
Details regarding specified services used in the authorized
operations of SEZ, as approved by the Approval Committee
Amou
nt of
servic
e tax
claime
d as
Refun
d(
includi
ng
educat
Documen
t
enclosed
as proof
of
payment
of service
tax by
the SEZ
Unit/Dev
eloper, (
Descri
ption
of
taxabl
e
service
(as per
the
Nam
e
and
addr
ess
of
Servi
ce
Service
Tax
Registr
ation
Number
of
Service
Provide
Invoice/ Bill/ Challan
(original enclosed)
Amou
nt of
Servic
e tax
paid
(inclu
ding
educa
Numb
er
Dat
e
Value of
taxable
service
(Rupees)
328
invoice
) used
in the
authori
zed
operati
ons of
SEZ
Provi
der
r tion
cess)
(Rupe
es)
ion
cess)
(Rupe
es)
sl.no and
date of
invoice/
bill /
challan)
(1)
(2) (3) (4) (5) (6)
(7) (8) (9) (10)
1.
2.
TOTAL --
9.2. Refunds arising out of specified services, other than those are ‘wholly
consumed’:
I/We request refund of service tax paid on specified services, other than those that
are ‘wholly consumed’,-
1. used in the manufacture of final products exported from SEZ
2. used in providing output services exported from SEZ
I/We furnish following true and correct particulars, in Tables ‘B’ and ‘C’, for the
purpose of above refund:
Table – B
No.
Specified services other than those that are
‘wholly====consumed’,====used for authorised operations====by SEZ=
Docume
nt=
329
Unit/Developer, during the period for which refund is claimed enclosed
as proof
of
payment
of
service
tax (
sl.no and
date of
invoice/
bill /
challan)
Descriptio
n of
taxable
service(as
per the
invoice)
used in
the
authorize
d
operation
s of
SEZ
Name
and
address
of
Service
Provider
Service
Tax
Registra
tion
Number
of
Service
Provider
Invoice/ Bill/ Challa
n (original enclosed)
Amount
of
Service
tax paid
(includin
g
educatio
n
cess)(Ru
pees)
Nu
mbe
r
Date
Valu
e of
taxa
ble
servi
ce
(Rup
ees)
(1)
(2) (3) (4) (5) (6) (7) (8) (9)
1.
2.
TOTAL --
Table - C
Details Details for the period to which the invoices pertain and
refund is claimed
Export turnover of SEZ
Unit(s)/Developer
Service tax paid on
input services other
than wholly
consumed services
Total
turnover
(1) (2) (3)
-Goods (a) ---
Output services (b) ----
Others(Bought (c ---- ----
330
out goods sold) )
Total (a)+(b)+(c)=(d)
Instructions for compilation of the above statistical table:
1. To calculate the export turnover of SEZ, in the case of export of goods, FOB
value provided in Shipping Bills or Bills of Export, should be taken into
account, which have been duly certified by the officer of customs to the
effect that the goods have been exported;
2. To calculate the export turnover of SEZ, in the case of export of services,
value of output services exported shall be on the basis of certificates issued
by the bank certifying the realization of export proceeds.
3. Amount of service tax claimed as refund, under Table B read with Table C:
Rupees__________________
4. Particulars filled in the Table C should be verified and certified as true by the
statutory auditor of the SEZ Unit/Developer
----------------------------------------------------------------------------------------
---------I/We Declare that-
1. information given in this application for refund is true, correct and complete
in every respect and that I am authorised to sign this application for refund
of service tax;
2. the specified services, as approved by the Approval Committee of SEZ, on
which exemption/refund is claimed are actually used for the authorised
operations in a SEZ;
3. refund is being claimed only on the service tax actually paid on the specified
services used for the authorised operations in a SEZ; refund of service tax
has not been claimed or received earlier, on the basis of above
documents/information;
4. We have not taken any CENVAT credit of service tax paid on the specified
services under the CENVAT Credit Rules, 2004;
331
5. accounts or documents furnished as proof of payment of service tax being
claimed as refund, as per the invoice, bill or challan of the service provider
indicating the service tax paid on such specified services, are true and
correct in all respects;
6. proper account of receipt and use of the specified services on which
exemption/refund is claimed, for the authorised operations in the SEZ, is
maintained and the same shall be produced to the Officer sanctioning refund,
on demand.
Signature and name
(of proprietor/managing partner/
person authorised by managing director of SEZ Unit/Developer)
with complete address, telephone and e-mail
Date:
Place:
FORM A-3
DECLARATION FOR OBTAINING SERVICE TAX CODE
[Refer clause (c) under paragraph 3]
1. Name of the SEZ Unit/Developer:
2. Address of the SEZ Unit/Developer with Telephone and Email:
3. Address of the Registered/Head Office:
4. Permanent Account Number(PAN) of the SEZ Unit/Developer:
5. Import and Export Code Number:
6. Jurisdictional Central Excise/Service Tax Division:
7. Service Tax Registration Number/Service tax Code:
8. Details of Bank Account ( Bank, Address of Branch, Account Number)
9. (a) Constitution of SEZ Unit/Developer [
proprietorship/partnership/Registered Private Limited Company/Registered
Public Limited Company/Others(specify)]
(b) Name, Address, Telephone number of Proprietor/partner/director(s)
332
10.Name, designation and address of the authorised signatory/signatories
11.I/We hereby declare that-
1. The information given in this application form is true, correct and complete in
every respect and that I am authorised to sign on behalf of the SEZ
Unit/Developer;
2. I/We shall maintain proper account of specified services as approved by the
Approval Committee of SEZ, received and used for authorised operations in
SEZ; and shall make available such accounts and related records, at all
reasonable times, to the Department for inspection or scrutiny.
3. I/We shall use/have used specified services for authorised operations in the
SEZ.
Signature and Name of Authorised Person with stamp
Date:
Place:
333
41/2012 - REBATE FOR SERVICE TAX PAID — NEW SCHEME
Not. No. 41/2012-ST dated 29 June 2012
In exercise of the powers conferred by section 93A of the Finance Act, 1994 (32 of
1994) (hereinafter referred to as the said Act) and in supersession of the
notification of the Government of India in the Ministry of Finance (Department of
Revenue) number 52/2011-Service Tax, dated the 30th December, 2011, published
in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide
number G.S.R. 945(E), dated the 30th December, 2011, except as respects things
done or omitted to be done before such supersession, the Central Government, on
being satisfied that it is necessary in the public interest so to do, hereby grants
rebate of service tax paid (hereinafter referred to as rebate) on the taxable services
which are received by an exporter of goods (hereinafter referred to as the exporter)
and used for export of goods, subject to the extent and manner specified herein
below, namely :-
Provided that –
(a) the rebate shall be granted by way of refund of service tax paid on the
specified services.
Explanation. - For the purposes of this notification,-
(A) “specified services” means -
(i) in the case of excisable goods, taxable services that have been used beyond
the place of removal, for the export of said goods;
(ii) in the case of goods other than (i) above, taxable services used for the
export of said goods;
but shall not include any service mentioned in sub-clauses (A), (B), (BA) and
(C) of clause (l) of rule (2) of the CENVAT Credit Rules, 2004;
334
(B) “place of removal” shall have the meaning assigned to it in section 4 of the
Central Excise Act, 1944 (1 of 1944);
(b) the rebate shall be claimed either on the basis of rates specified in the
Schedule of rates annexed to this notification (hereinafter referred to as the
Schedule), as per the procedure specified in paragraph 2 or on the basis of
documents, as per the procedure specified in paragraph 3;
(c) the rebate under the procedure specified in paragraph 3 shall not be claimed
wherever the difference between the amount of rebate under the procedure
specified in paragraph 2 and paragraph 3 is less than twenty per cent of the
rebate available under the procedure specified in paragraph 2;
(d) no CENVAT credit of service tax paid on the specified services used for export
of goods has been taken under the CENVAT Credit Rules, 2004;
(e) the rebate shall not be claimed by a unit or developer of a Special Economic
Zone;
(2) the rebate shall be claimed in the following manner, namely :-
(a) manufacturer-exporter, who is registered as an assessee under the Central
Excise Act, 1944 (1 of 1944) or the rules made thereunder shall register his
central excise registration number and bank account number with the
customs;
(b) exporter who is not so registered under the provisions referred to in clause
(a), shall register his service tax code number and bank account number with
the customs;
(c) service tax code number referred to in clause (b), shall be obtained by filing
a declaration in Form A-2 to the Assistant Commissioner of Central Excise or
the Deputy Commissioner of Central Excise, as the case may be, having
jurisdiction over the registered office or the head office, as the case may be,
of such exporter;
335
(d) the exporter shall make a declaration in the electronic shipping bill or bill of
export, as the case may be, while presenting the same to the proper officer
of customs, to the effect that --
(i) the rebate of service tax paid on the specified services is claimed as a
percentage of the declared Free On Board (FOB) value of the said goods, on
the basis of rate specified in the Schedule;
(ii) no further rebate shall be claimed in respect of the specified services, under
procedure specified in paragraph 3 or in any other manner, including on the
ground that the rebate obtained is less than the service tax paid on the
specified services;
(iii) conditions of the notification have been fulfilled;
(e) service tax paid on the specified services eligible for rebate under this
notification, shall be calculated by applying the rate prescribed for goods of a
class or description, in the Schedule, as a percentage of the FOB value of the
said goods;
(f) amount so calculated as rebate shall be deposited in the bank account of the
exporter;
(g) shipping bill or bill of export on which rebate has been claimed on the basis
of rate specified in the Schedule, by way of procedure specified in this
paragraph, shall not be used for rebate claim on the basis of documents,
specified in paragraph 3;
(h) where the rebate involved in a shipping bill or bill of export is less than
rupees fifty, the same shall not be allowed;
(3) the rebate shall be claimed in the following manner, namely :-
(a) rebate may be claimed on the service tax actually paid on any specified
service on the basis of duly certified documents;
336
(b) the person liable to pay service tax under section 68 of the said Act on the
taxable service provided to the exporter for export of goods shall not be
eligible to claim rebate under this notification;
(c) the manufacturer-exporter, who is registered as an assessee under the
Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, shall file
a claim for rebate of service tax paid on the taxable service used for export
of goods to the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, having jurisdiction over
the factory of manufacture in Form A-1;
(d) the exporter who is not so registered under the provisions referred to in
clause (c), shall before filing a claim for rebate of service tax, file a
declaration in Form A-2, seeking allotment of service tax code, to the
Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, having jurisdiction over the registered
office or the head office, as the case may be, of such exporter;
(e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, shall, after due verification, allot a
service tax code number to the exporter referred to in clause (d), within
seven days from the date of receipt of the said Form A-2;
(f) on obtaining the service tax code, exporter referred to in clause (d), shall file
the claim for rebate of service tax to the Assistant Commissioner of Central
Excise or the Deputy Commissioner of Central Excise, as the case may be,
having jurisdiction over the registered office or the head office, as the case
may be, in Form A-1;
(g) the claim for rebate of service tax paid on the specified services used for
export of goods shall be filed within one year from the date of export of the
said goods.
Explanation. - For the purposes of this clause the date of export shall be the
date on which the proper officer of Customs makes an order permitting clearance
337
and loading of the said goods for exportation under section 51 of the Customs Act,
1962 (52 of 1962);
(h) where the total amount of rebate sought under a claim is upto 0.50% of the
total FOB value of export goods and the exporter is registered with the
Export Promotion Council sponsored by Ministry of Commerce or Ministry of
Textiles, Form A-1 shall be submitted along with relevant invoice, bill or
challan, or any other document for each specified service, in original, issued
in the name of the exporter, evidencing payment for the specified service
used for export of the said goods and the service tax paid thereon, certified
in the manner specified in sub-clauses (A) and (B) :
(A) if the exporter is a proprietorship concern or partnership firm, the documents
enclosed with the claim shall be self-certified by the exporter and if the exporter
is a limited company, the documents enclosed with the claim shall be certified
by the person authorised by the Board of Directors;
(B) the documents enclosed with the claim shall also contain a certificate from the
exporter or the person authorised by the Board of Directors, to the effect that
specified service to which the document pertains has been received, the service
tax payable thereon has been paid and the specified service has been used for
export of the said goods under the shipping bill number;
(i) where the total amount of rebate sought under a claim is more than 0.50%
of the total FOB value of the goods exported, the procedure specified in
clause (h) above shall stand modified to the extent that the certification
prescribed thereon, in sub-clauses (A) and (B) shall be made by the
Chartered Accountant who audits the annual accounts of the exporter for the
purposes of the Companies Act, 1956 (1 of 1956) or the Income Tax Act,
1961 (43 of 1961), as the case may be;
(j) where the rebate involved in a claim is less than rupees five hundred, the
same shall not be allowed;
338
(k) the Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, shall, after satisfying himself,-
(i) that the service tax rebate claim filed in Form A-1 is complete in every
respect;
(ii) that duly certified documents have been submitted evidencing the payment
of service tax on the specified services ;
(iii) that rebate has not been already received on the shipping bills or bills of
export on the basis of procedure prescribed in paragraph 2; and
(iv) that the rebate claimed is arithmetically accurate,
refund the service tax paid on the specified service within a period of one month
from the receipt of said claim :
Provided that where the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, has reason to believe that the
claim, or the enclosed documents are not in order or that there is a reason to deny
such rebate, he may, after recording the reasons in writing, take action, in
accordance with the provisions of the said Act and the rules made thereunder;
(4) Where any rebate of service tax paid on the specified services has been
allowed to an exporter on export of goods but the sale proceeds in respect of
said goods are not received by or on behalf of the exporter, in India, within
the period allowed by the Reserve Bank of India under section 8 of the
Foreign Exchange Management Act, 1999 (42 of 1999), including any
extension of such period, such rebate shall be deemed never to have been
allowed and may be recovered under the provisions of the said Act and the
rules made thereunder;
(5) This notification shall come into effect on the 1st day of July, 2012.
Form A-1
Application for claiming rebate of service tax paid on specified services
339
used for export of goods, under Notification No.___ / 20__-ST
To,
The Deputy/Assistant Commissioner of Central Excise
Sir,
I/We claim rebate of Rs........... (Rupees in words), under Notification No.____
dated______ , in respect of service tax paid on the specified services used for
export of goods.
1. Name of the exporter:
2. Membership number of the Export Council:
3. Name of the Export Council:
4. Address of the registered / head office of exporter:
5. Telephone Number and e-mail ID of the exporter:
6. Division ……… Commissionerate ……………
7. Central Excise Registration Number (for manufacturer exporter) / Service Tax
Code Number (for exporters other than manufacturer exporter)
8. Import Export Code Number…………..
9. Details of Bank Account (Name of Bank, branch address and account
number)
10. Details of the rebate claim (separately for each Shipping Bill) :
(Rupees in thousands)
S.
No.
Details of specified services used for export of goods on which rebate of
service tax is claimed
340
Details of shipping bill/ bill
of export, etc.
(2)
Details of goods exported
(3)
No. Date Date of Let
Export Order
Bill of
Lading
or
Airway
Bill
Number
Date. Descriptio
n of goods
exported
Quantity Unit FOB
valu
e
(1)
Details of specified services used for export of goods
mentioned in Columns 2 and 3.
(4)
Document
s
attached
to
evidence
the
amount of
service tax
paid and
establish
the use of
specified
service in
the export
of goods.
(5)
Total
amount of
service tax
paid which
is claimed
as rebate.
(6)
Name of
service
Service
Tax
Invo- ice
No
Da
t
Descrip-
tion of
Value of
specifie
Total
amount of
In
Figur
As a
341
provider
.
Registra
-tion
No./
Service
Tax
Code
(pl.attac
-h
origin-
nal invoi
ce)
e. specifie
d
service
as per
the
invoice
d
service
used for
export
of
goods
as per
the
invoice
service tax
paid.
-es. perc-
ent-
age
of
f.o.b
.
valu
e
in
ship
p
ing
bill
9. Declaration :-
I/We hereby declare that -
(i) the information given in this application form is true, correct and complete in
every respect, in accordance with the notification and that I am authorised to sign
on behalf of the exporter; electronic rebate of service tax has not been received
from customs on the shipping bills on which rebate is claimed;
(ii) no CENVAT credit of service tax paid on the specified services used for export
of goods has been taken/shall be taken under the CENVAT Credit Rules, 2004;
(iii) rebate has been claimed for service tax which has been actually paid on the
specified services used for export of goods;
(iv) I/we shall maintain records pertaining to the specified services used for
export of goods and shall make available, at the declared premises, at all
342
reasonable time, such records for inspection and examination by the Central Excise
Officer authorised in writing by the jurisdictional Assistant Commissioner of Central
Excise or the Deputy Commissioner of Central Excise, as the case may be.
Date:
Place:
Signature and full address of Exporter
(Affix stamp)
Form A-2
Declaration by an exporter, for obtaining Service Tax Code
(referred under paragraph 2 (c) and 3(d) of Notification No. ___ /20__- ST
dated __________)
1. Name of the exporter:
2. Address of the registered office or head office of the Exporter :
3. Permanent Account Number (PAN) of the Exporter :
4. Import Export Code (IEC) of the Exporter :
5. Details of Bank Account of the Exporter :
(a) Name of the Bank :
(b) Name of the Branch :
(c) Account Number :
6. (a) Constitution of Exporter [Proprietorship /Partnership/ Registered Private
Limited Company /Registered Public Limited Company /Others (specify)]
(b) Name, address and telephone number of proprietor/partner/ director
343
7. Name, designation and address of the authorised signatory/ signatories:
8. I / We hereby declare that-
(i) the information given in this application form is true, correct and complete in
every respect and that I am authorised to sign on behalf of the exporter;
(ii) I / we shall maintain records pertaining to specified services used for export of
goods and shall make available, at the declared premises, at all reasonable time,
such records for inspection and examination by the Central Excise Officer
authorised in writing by the jurisdictional Assistant Commissioner of Central Excise
or the Deputy Commissioner of Central Excise, as the case may be.
(Signature of the applicant/authorised person with stamp)
Date:
Place:
Schedule of rates
The Chapter or sub-Heading and descriptions of goods in the following Schedule are
aligned with the tariff items and descriptions of goods in the First Schedule to the
Customs Tariff Act, 1975 (51 of 1975). The General Rules for the Interpretation of
the First Schedule to the said Customs Tariff Act, 1975 shall mutatis mutandis apply
for classifying the export goods listed in the Schedule.
Sl.
No.
Chapter
or sub-
Heading
No.
Description of goods Rate
(1) (2) (3) (4)
1 01 Live animal Nil
2 02 Meat and edible meat offal 0.12
3 03 Fish and crustaceans, molluscs and other aquatic invertebrates 0.12
4 04 Dairy produce; birds’ eggs; natural honey; edible products of
animal origin, not elsewhere specified or included
0.12
5 05 Product of animal origin not elsewhere specified or included. 0.12
344
6 06 Live trees and other plants; bulbs, roots and the like; cut flowers
and ornamental foliage
0.12
7 07 Edible vegetables and certain roots and tubers 0.12
8 08 Edible fruits and nuts, peel of citrus fruit or melons 0.12
9 09 Coffee, tea, mate and spices 0.12
10 10 Cereals 0.12
11 11 Products of the milling industry; malt; starches; inulin; wheat
gluten.
0.12
12 12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and
fruit; industrial and medicinal plants; straw and fodder
0.12
13 13 Lac; gums, resins and other vegetable saps and extracts 0.12
14 14 Vegetable plaiting materials; vegetable products, not elsewhere
specified or included.
0.12
15 15 Animal or vegetable fats and oils and their cleavage products
prepared edible fats; animal or vegetable waxes
0.12
16 16 Preparations of meat, or fish or of crustaceans, molluscs or other
aquatic invertebrates
0.12
17 17 Sugars and sugar confectionery 0.12
18 18 Cocoa and cocoa preparations 0.12
19 19 Preparations of cereals, flour, starch or milk; pastry cooks’
products
0.12
20 20 Preparation of vegetables, fruits, nuts or other parts of plants 0.20
21 21 Miscellaneous edible preparations 0.12
22 2201 Waters, including natural or artificial mineral waters and aerated
waters, not containing added sugar or other sweetening matter
not flavoured; ice and snow
0.12
23 2202 Waters, including mineral waters and aerated waters containing
added sugar or other sweetening matter or flavoured, and other
non-alcoholic beverages, not including fruit or vegetable juices of
heading 2009
0.12
24 2203 Beer made from malt 0.12
25 2204 Wine of fresh grapes, including fortified wines; grape must other
than that of heading 2009
0.12
26 2205 Vermouth and other wine of fresh grapes flavoured with plants or
aromatic substances
0.12
27 2206 Other fermented beverages (for example cider, perry, mead);
mixtures of fermented beverages and non-alcoholic beverages,
not elsewhere specified or included
0.12
345
28 2207 Undenatured ethyl alcohol of an alcoholic strength by volume of
80% vol. or higher; ethyl alcohol and other spirits, denatured, of
any strength
0.12
29 2208 Undenatured ethyl alcohol of an alcoholic strength by volume of
less than 80% vol.; spirit, liquors and other spirituous beverages
0.12
30 2209 Vinegar and substitutes for vinegar obtained from acetic acid 0.12
31 23 Residues and waste from the food industries; prepared animal
fodder
0.06
32 24 Tobacco and manufactured tobacco substitutes 0.04
33 25 Salt; sulphur; earths and stone; plastering materials, lime and
cement
0.12
34 26 Ores, slag and ash 0.20
35 27 Mineral fuels, mineral oils and products of their distillation;
bituminous substances; mineral waxes
Nil
36 28 Inorganic chemicals; organic or inorganic compounds of precious
metals, of rare-earth metals, of radioactive elements or of
isotopes
0.12
37 29 Organic chemicals 0.12
38 30 Pharmaceutical products 0.20
39 31 Fertilizers Nil
40 32 Tanning or dyeing extracts; tannins and their derivatives; dyes,
pigments and other colouring matter; paints and varnishes; putty
and other mastics; inks
0.04
41 33 Essential oils and resinoids; perfumery, cosmetic or toilet
preparations
0.12
42 34 Soap, organic surface-active agents, washing preparations,
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar articles,
modeling pastes, “dental waxes” and dental preparations with a
basis of plaster
0.12
43 35 Albuminoidal substances; modified starches; glues; enzymes 0.12
44 36 Explosives 0.12
45 37 Photographic or cinematographic goods 0.12
46 38 Miscellaneous chemical products 0.12
47 39 Plastics and articles thereof 0.12
48 40 Rubber and articles thereof 0.06
49 41 Raw hides and skins (other than fur skins) and leather 0.04
346
50 4201 Saddlery and harness for any animal (including traces, leads, knee
pads, muzzles, saddle cloths, saddle bags, dog coats and the like),
of any material
0.12
51 4202 Trunks, suit-cases, vanity-cases, executive-cases, brief-cases,
school satchels, spectacle cases, binocular cases, camera cases,
musical instrument cases, gun cases, holsters and similar
containers; travelling-bags, insulated food or beverages bags,
toilet bags, rucksacks, handbags, shopping-bags, wallets, purses,
map-cases, cigarette-cases, tobacco-pouches, tool bags, sports
bags, bottle-cases, jewellery boxes, powder-boxes, cutlery cases
and similar containers, of leather or of composition leather, of
sheeting of plastics, of textile materials, of vulcanized fiber or of
paper-board, or wholly or mainly covered with such materials or
with paper
0.12
52 4203 Articles of apparel and clothing accessories, of leather or of
composition leather
0.12
53 4204 Omitted -
54 4205 Other articles of leather or of composition leather 0.12
55 4206 Articles of gut (other than silk-worm gut), of goldbeater’s skin, of
bladders or of tendons
0.12
56 4301 Raw fur skins (including heads, tails, paws and other pieces or
cuttings, suitable for furriers’ use), other than raw hides and skins
of headings 4101, 4102 or 4103
Nil
57 4302 Tanned or dressed fur skins (including heads, tails, paws and
other pieces or cuttings), unassembled, or assembled (without the
addition of other materials) other than those of heading 4303
0.12
58 4303 Articles of apparel, clothing accessories and other articles of fur
skin
0.12
59 4304 Artificial fur and articles thereof 0.12
60 4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar
forms; wood in chips or particles; sawdust and wood waste and
scrap, whether or not agglomerated in logs, briquettes, pellets or
similar forms
Nil
61 4402 Wood charcoal (including shell or nut charcoal), whether or not
agglomerated
Nil
62 4403 Wood in the rough, whether or not stripped of bark or sapwood,
or roughly squared
Nil
63 4404 Hoop wood; split poles; piles, pickets and stakes of wood, pointed
but not sawn lengthwise; wooden sticks, roughly trimmed but not
turned, bent or otherwise worked, suitable for the manufacture of
walking sticks, umbrellas, tool handles or the like; chip wood and
the like
Nil
64 4405 Wood wool; wood flour Nil
347
65 4406 Railway or tramway sleepers (crossties) of wood Nil
66 4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or
not planed, sanded or end jointed, of a thickness exceeding 6 mm
Nil
67 4408 Sheets for veneering (including those obtained by slicing
laminated wood), for plywood or for similar laminated wood and
other wood, sawn lengthwise, sliced or peeled, whether or not
planed, sanded, spliced or end-jointed, of a thickness not
exceeding 6 mm
0.12
68 4409 Wood (including strips and friezes for parquet flooring, not
assembled) continuously shaped (tongued, grooved, rebated,
chamfered, v-jointed, beaded, moulded, rounded or the like)
along any of its edges or faces, whether or not planed, sanded or
end-jointed
0.12
69 4410 Particle board, oriented strand board (OSB) and similar board (for
example wafer board) of wood or other ligneous materials,
whether or not agglomerated with resins or other organic binding
substances
0.12
70 4411 Fiberboard of wood or other ligneous materials, whether or not
bonded with resins or other organic substances
0.12
71 4412 Plywood, veneered panels and similar laminated wood 0.12
72 4413 Densified wood, in blocks, plates, strips or profile shapes 0.12
73 4414 Wooden frames for paintings, photographs, mirrors or similar
objects
0.12
74 4415 Packing cases, boxes, crates, drums and similar packings, of
wood; cable-drums of wood; pallets, Box pallets and other load
boards, of wood; pallet collars of wood
0.12
75 4416 Casks, barrels, vats, tubs and other coopers’ products and parts
thereof, of wood, including staves
0.12
76 4417 Tools, tool bodies, tool handles, broom or brush bodies and
handles, of wood; boot or shoe lasts and trees, of wood
0.12
77 4418 Builders’ joinery and carpentry of wood, including cellular wood
panels, assembled flooring panels, Shingles and shakes
0.12
78 4419 Tableware and kitchenware, of wood 0.12
79 4420 Wood marquetry and inlaid wood; caskets and cases for jewellery
or cutlery, and similar articles, of wood; statuettes and other
ornaments, of wood; wooden articles of furniture not falling in
chapter 94
0.12
80 4421 Other articles of wood 0.12
81 45 Cork and articles of cork Nil
82 46 Manufactures of straw, of esparto or of other plaiting materials;
basket-ware and wickerwork.
0.12
348
83 47 Pulp of wood or of other fibrous cellulosic material; recovered
(waste and scrap) paper or paperboard
Nil
84 4801 Newsprint, in rolls or sheets 0.12
85 4802 Uncoated paper and paperboard, of a kind used for writing,
printing or other graphic purposes, and non perforated punch card
and punch tape paper, in rolls or rectangular (including
square)sheets of any size, other than paper of heading 4801 or
4803; hand-made paper and paperboard
0.12
86 4803 Toilet or facial tissue stock, towel or napkin stock and similar
paper of a kind used for household or sanitary purposes, cellulose
wadding and webs of cellulose fibres, whether or not creped,
crinkled, embossed, perforated, surface-coloured, surface-
decorated or printed, in rolls or sheets
0.12
87 4804 Uncoated craft paper and paperboard, in rolls or sheets, other
than that of heading 4802 or 4803
0.12
88 4805 Other uncoated paper and paperboard, in rolls or sheets, not
further worked or processed than as specified in Note 3 to this
Chapter
0.12
89 4806 Vegetable parchment, greaseproof papers, tracing papers and
glassine and other glazed transparent or translucent papers, in
rolls or sheets
0.12
90 4807 Composite paper and paperboard (made by sticking flat layers of
paper or paperboard together with an adhesive), not surface-
coated or impregnated, whether or not internally reinforced, in
rolls or sheets
0.12
91 4808 Paper and paperboard, corrugated (with or without glued flat
surface sheets), creped, crinkled, embossed or perforated, in rolls
or sheets, other than paper of the kind described in heading 4803
0.12
92 4809 Carbon paper, self-copy paper and other copying or transfer
papers (including coated or impregnated paper for duplicator
stencils or offset plates), whether or not printed, in rolls or sheets
0.12
93 4810 Paper and paperboard, coated on one or both sides with kaolin
(China clay) or other inorganic substances, with or without a
binder, and with no other coating, whether or not surface-
coloured, surface-decorated or printed, in rolls or rectangular
(including square) sheets, of any size
0.12
94 4811 Paper, paperboard, cellulose wadding and webs of cellulose fibres,
coated, impregnated, covered, surface coloured, surface-
decorated or printed, in rolls or rectangular (including square)
sheets, of any size, other than goods of the kind described in
heading 4803, 4809 or 4810
0.12
95 4812 Filter blocks, slabs and plates, of paper pulp 0.12
96 4813 Cigarette paper, whether or not cut to size or in the form of
booklets or tubes
0.12
349
97 4814 Wallpaper and similar wall coverings; window transparencies of
paper
0.12
98 4815 Omitted -
99 4816 Carbon-paper, self-copy paper and other copying or transfer
papers (other than those of heading 4809), duplicator stencils and
offset plates, of paper, whether or not put up in boxes
0.12
100 4817 Envelopes, letter cards, plain postcards and correspondence cards,
of paper or paperboard; boxes, pouches, wallets and writing
compendiums, of paper or paperboard, containing an assortment
of paper stationery
0.18
101 4818 Toilet paper and similar paper, cellulose wadding or webs of
cellulose fibres, of a kind used for household or sanitary purposes,
in rolls of a width not exceeding 36 cm, or cut to size or shape;
handkerchiefs, cleansing tissues, towels, table cloths, serviettes,
napkins for babies, tampons, bed sheets and similar household,
sanitary or hospital articles, articles of apparel and clothing
accessories, of paper pulp, paper, cellulose wadding or webs of
cellulose fibres
0.18
102 4819 Cartons, boxes, cases, bags and other packing containers, of
paper, paperboard, cellulose wadding or webs of cellulose fibres;
box files, letter trays, and similar articles, of paper or paperboard
of a kind used in offices, shops or the like
0.18
103 4820 Registers, account books, note books, order books, receipt books,
letter pads, memorandum pads, diaries and similar articles, excise
books, blotting-pads, binders (loose-leaf or other), folders, file
covers, manifold business forms, interleaved carbon sets and
other articles of stationery, of paper or paperboard; albums for
samples or for collections and book covers, of paper or
paperboard
0.18
104 4821 Paper or paperboard labels of all kinds, whether or not printed 0.18
105 4822 Bobbins, spools, cops and similar supports of paper pulp, paper or
paperboard (whether or not perforated or hardened)
0.18
106 4823 Other paper, paperboard, cellulose wadding and webs of cellulose
fibres, cut to size or shape; other articles of paper pulp, paper,
paperboard, cellulose wadding or webs of cellulose fibres
0.18
107 49 Printed books, newspapers, pictures and other products of the
printing industry; manuscripts, typescripts and plans
0.12
108 50 Silk 0.12
109 51 Wool, fine or coarse animal hair, horsehair yarn and woven fabrics 0.12
110 5201 Cotton, not carded or combed 0.04
111 5202 Cotton waste (including yarn waste and garnetted stock) 0.04
350
112 5203 Cotton, carded or combed 0.04
113 5204 Cotton sewing thread, whether or not put up for retail sale 0.04
114 5205 Cotton yarn (other than sewing thread), containing 85% or more
by weight of cotton, not put up for retail sale
0.06
115 5206 Cotton yarn (other than sewing thread), containing less than 85%
by weight of cotton, not put up for retail sale
0.06
116 5207 Cotton yarn (other than sewing thread) put up for retail sale 0.06
117 5208 Woven fabrics of cotton, containing 85% or more by weight of
cotton, weighing not more than 200 g/m2
0.12
118 5209 Woven fabrics of cotton, containing 85% or more by weight of
cotton, weighing more than 200 g/m2
0.12
119 5210 Woven fabrics of cotton, containing less than 85% by weight of
cotton, mixed mainly or solely with man-made fibres, weighing
not more than 200 g/m2
0.12
120 5211 Woven fabrics of cotton, containing less than 85% by weight of
cotton, mixed mainly or solely with man-made fibres, weighing
more than 200 g/m2
0.12
121 5212 Other woven fabrics of cotton 0.12
122 53 Other vegetable textile fibres; paper yarn and woven fabrics of
paper yarn
0.12
123 5401 Sewing thread of man-made filaments, whether or not put up for
retail sale
0.06
124 5402 Synthetic filament yarn (other than sewing thread), not put up for
retail sale, including synthetic monofilament of less than 67
decitex
0.06
125 5403 Artificial filament yarn (other than sewing thread), not put for
retail sale, including artificial mono filament of less than 67
decitex
0.06
126 5404 Synthetic monofilament of 67 decitex or more and of which no
cross-sectional dimension exceeds 1 mm; strip and the like (for
example, artificial straw) of synthetic textile materials of an
apparent width not exceeding 5 mm
0.06
127 5405 Artificial monofilament of 67 decitex or more and of which no
cross-sectional dimension exceeds 1 mm; strip and the like (for
example, artificial straw) of artificial textile materials of an
apparent width not exceeding 5 mm
0.06
128 5406 Man-made filament yarn (other than sewing thread), put up for
retail sale
0.06
129 5407 Woven fabrics of synthetic filament yarn, including woven fabrics
obtained from materials of heading 5404
0.12
130 5408 Woven fabrics of artificial filament yarn, including woven fabrics 0.12
351
obtained from materials of heading 5405
131 5501 Synthetic filament tow 0.06
132 5502 Artificial filament tow 0.06
133 5503 Synthetic staple fibres, not carded, combed or otherwise
processed for spinning
0.06
134 5504 Artificial staple fibres, not carded, combed or otherwise processed
for spinning
0.06
135 5505 Waste (including noils, yarn waste and garneted stock) of man-
made fibres
0.06
136 5506 Synthetic staple fibres, carded, combed or otherwise processed for
spinning
0.06
137 5507 Artificial staple fibres, carded, combed or otherwise processed for
spinning
0.06
138 5508 Sewing thread of man-made staple fibres, whether or not put up
for retail sale
0.06
139 5509 Yarn (other than sewing thread) of synthetic staple fibres, not put
up for retail sale
0.06
140 5510 Yarn (other than sewing thread) of artificial staple fibres, not put
up for retail sale
0.06
141 5511 Yarn (other than sewing thread) of man-made staple fibres, put
up for retail sale
0.06
142 5512 Woven fabrics of synthetic staple fibres, containing 85% or more
by weight of synthetic staple fibres
0.12
143 5513 Woven fabrics of synthetic staple fibres, containing less than 85%
by weight of such fibres, mixed mainly or solely with cotton, of a
weight not exceeding 170g/m2
0.12
144 5514 Woven fabrics of synthetic staple fibres, containing less than 85%
by weight of such fibres, mixed mainly or solely with cotton, of a
weight exceeding 170 g/m2
0.12
145 5515 Other woven fabrics of synthetic staple fibres 0.12
146 5516 Woven fabrics of artificial staple fibres 0.12
147 56 Wadding, felt and non-woven; special yarns; twine, cordage,
ropes and cables and articles thereof
0.12
148 57 Carpets and other textile floor coverings 0.12
149 58 Special woven fabrics; tufted textile fabrics; lace; tapestries;
trimmings; embroidery
0.12
150 59 Impregnated, coated, covered or laminated textile fabrics; textile
articles of a kind suitable for industrial use
0.12
352
151 60 Knitted or crocheted fabrics 0.12
152 61 Articles of apparel and clothing accessories, knitted or crocheted 0.18
153 62 Articles of apparel and clothing accessories, not knitted or
crocheted
0.18
154 63 Other made up textiles articles; sets; worn clothing and worn
textile articles; rags
0.18
155 64 Footwear, gaiters and the like; parts of such articles 0.12
156 65 Headgear and parts thereof 0.06
157 66 Umbrellas, sun umbrellas, walking-sticks, whips, riding-crops and
parts thereof
0.04
158 67 Prepared feathers and down and articles made of feathers or of
down; artificial flowers; articles of human hair
0.12
159 68 Articles of stone, plaster, cement, asbestos, mica or similar
materials
0.18
160 69 Ceramic products 0.18
161 70 Glass and glassware 0.18
162 71 Natural or cultured pearls, precious or semi-precious stones,
precious metals, metals clad with precious metals, and articles
thereof; imitation jewellery; coin
0.06
163 7201 Pig iron and spiegeleisen in pigs, blocks or other primary forms 0.08
164 7202 Ferro alloys 0.08
165 7203 Ferrous products obtained by direct reduction of iron ore and
other spongy ferrous products, in lumps, pellets or similar forms;
iron having minimum purity by weight of 99.94%, in lumps,
pellets or similar forms
0.08
166 7204 Ferrous waste and scrap; remelting scrap ingots of iron or steel 0.08
167 7205 Granules and powders, of pig iron, spiegeleisen, iron or steel 0.08
168 7206 Iron and non-alloy steel in ingots or other primary forms
(excluding iron of heading 7203)
0.08
169 7207 Semi-finished products of iron or non-alloy steel 0.08
170 7208 Flat-rolled products of iron or non-alloy steel, of a width of 600
mm or more, hot-rolled, not clad, plated or coated
0.08
171 7209 Flat-rolled products of iron or non-alloy steel, of a width of 600
mm or more, cold-rolled (cold-reduced), not clad, plated or coated
0.08
172 7210 Flat-rolled products of iron or non-alloy steel, of a width of 600
mm or more, clad, plated or coated
0.08
173 7211 Flat-rolled products of iron or non-alloy steel, of a width of less 0.08
353
than 600 mm, not clad, plated or coated
174 7212 Flat-rolled products of iron or non-alloy steel, of a width of less
than 600 mm, clad, plated or coated
0.08
175 7213 Bars and rods, hot-rolled, in irregularly wound coils, of iron or
non-alloy steel
0.08
176 7214 Other bars and rods of iron or non-alloy steel, not further worked
than forged, hot-rolled, hot-drawn or hot-extruded, but including
those twisted after rolling
0.08
177 7215 Other bars and rods of iron or non-alloy steel 0.08
178 7216 Angles, shapes and sections of iron or non-alloy steel 0.08
179 7217 Wire of iron or non-alloy steel 0.08
180 7218 Stainless steel in ingots or other primary forms; semi-finished
products of stainless steel
0.08
181 7219 Flat-rolled products of stainless steel, of a width of 600 mm or
more
0.08
182 7220 Flat-rolled products of stainless steel, of a width of less than 600
mm
0.08
183 7221 Bars and rods, hot-rolled, in irregularly wound coils, of stainless
steel
0.08
184 7222 Other bars and rods of stainless steel; angles, shapes and sections
of stainless steel
0.08
185 7223 Wire of stainless steel 0.08
186 7224 Other alloy steel in ingots or other primary forms; semi-finished
products of other alloy steel
0.08
187 7225 Flat-rolled products of other alloy steel, of a width of 600 mm or
more
0.08
188 7226 Flat-rolled products of other alloy steel, of a width of less than 600
mm
0.08
189 7227 Bars and rods, hot-rolled, in irregularly wound coils, of other alloy
steel
0.08
190 7228 Other bars and rods of other alloy steel; angles, shapes and
sections, of other alloy steel; hollow drill bars and rods, of alloy or
non-alloy steel
0.08
191 7229 Wire of other alloy steel 0.08
192 7301 Sheet piling of iron or steel, whether or not drilled, punched or
made from assembled elements; welded angles, shapes and
sections, of iron or steel
0.08
193 7302 Railway or tramway track construction material of iron or steel,
the following: rails, check-rails and rack rails, switch blades,
crossing frogs, point rods and other crossing pieces, sleepers
0.08
354
(cross-ties), fish-plates, chairs, chair wedges, sole plates (base
plates), rail clips, bedplates, ties and other material specialized for
jointing or fixing rails
194 7303 Tubes, pipes and hollow profiles, of cast iron 0.08
195 7304 Tubes, pipes and hollow profiles, seamless, of iron (other than
cast iron) or steel
0.08
196 7305 Other tubes and pipes (for example, welded, riveted or similarly
closed), having circular cross-sections, the external diameter of
which exceeds 406.4 mm, of iron or steel
0.08
197 7306 Other tubes, pipes and hollow profiles (for example, open seam or
welded, riveted or similarly closed), of iron or steel
0.08
198 7307 Tube or pipe fittings (for example, couplings, elbows, sleeves), of
iron or steel
0.08
199 7308 Structures (excluding prefabricated buildings of heading 9406)
and parts of structures (for example, bridges and bridge-sections,
lock-gates, towers, lattice masts, roofs, roofing frameworks, doors
and windows and their frames and thresholds for doors, shutters,
balustrades, pillars and columns), of iron or steel; plates, rods,
angles, shapes, sections, tubes and the like, prepared for use in
structures, of iron or steel
0.08
200 7309 Reservoirs, tanks, vats and similar containers for any material
(other than compressed or liquefied gas), of iron or steel, of a
capacity exceeding 300 l, whether or not lined or heat-insulated,
but not fitted with mechanical or thermal equipment
0.08
201 7310 Tanks, casks, drums, cans, boxes and similar containers, for any
material (other than compressed or liquefied gas), of iron or steel,
of a capacity not exceeding 300l, whether or not lined or heat-
insulated, but not fitted with mechanical or thermal equipment
0.08
202 7311 Containers for compressed or liquefied gas, of iron or steel 0.08
203 7312 Stranded wire, ropes, cables, plaited bands, slings and the like, of
iron or steel, not electrically insulated
0.08
204 7313 Barbed wire of iron or steel; twisted hoop or single flat wire,
barbed or not, and loosely twisted double wire, of a kind used for
fencing of iron or steel
0.08
205 7314 Cloth (including endless bands), Grill, netting and fencing, of iron
or steel wire; expanded metal of iron or steel
0.08
206 7315 Chain and parts thereof, of iron or steel 0.08
207 7316 Anchors, grapnels and parts thereof, of iron or steel 0.08
208 7317 Nails, tacks, drawing pins, corrugated nails, staples (other than
those of heading 8305) and similar articles, of iron or steel,
whether or not with heads of other material, but excluding such
articles with heads of copper
0.08
355
209 7318 Screws, bolts, nuts, coach-screws, screw hooks, rivets, cotters,
cotter-pins, washers (including spring washers) and similar
articles, of iron or steel
0.08
210 7319 Sewing needles, knitting needles, bodkins, crochet hooks,
embroidery stilettos and similar articles, for use in the hand, of
iron or steel; safety pins and other pins, of iron or steel, not
elsewhere specified or included
0.08
211 7320 Springs and leaves for springs, of iron or steel 0.08
212 7321 Stoves, ranges, grates, cookers (including those with subsidiary
boilers for central heating), barbecues, braziers, gas-rings, plate
warmers and similar non-electric domestic appliances, and parts
thereof, of iron or steel
0.08
213 7322 Radiators for central heating, not electrically heated, and parts
thereof, of iron or steel; air heaters and hot air distributors
(including distributors which can also distribute fresh or
conditioned air), not electrically heated, incorporating a motor-
driven fan or blower, and parts thereof, of iron or steel
0.08
214 7323 Table, kitchen or other household articles and parts thereof, of
iron or steel; iron or steel wool; pot scourers and scouring or
polishing pads, gloves and the like, of iron or steel
0.08
215 7324 Sanitary ware and parts thereof, of iron or steel 0.08
216 7325 Other cast articles of iron or steel 0.08
217 7326 Other articles of iron and steel 0.08
218 7401 Copper mattes; cement copper (precipitated copper) 0.08
219 7402 Unrefined copper; copper anodes for electrolytic refining 0.08
220 7403 Refined copper and copper alloys, unwrought 0.08
221 7404 Copper waste and scrap 0.08
222 7405 Master alloys of copper 0.08
223 7406 Copper powders and flakes 0.08
224 7407 Copper bars, rods and profiles 0.08
225 7408 Copper wire 0.08
226 7409 Copper plates, sheets and strip, of a thickness exceeding 0.15 mm 0.08
227 7410 Copper foil (whether or not printed or backed with paper, per
board , plastics or similar backing materials) of a thickness
(excluding any backing) not exceeding 0.15 mm
0.08
228 7411 Copper tubes and pipes 0.08
229 7412 Copper tube or pipe fittings (for example, couplings, elbows,
sleeves)
0.08
356
230 7413 Stranded wire, cables, plated bands and the like, of copper, not
electrically insulated
0.08
231 7414 Omitted -
232 7415 Nails, tacks, drawing pins, staples (other than those of heading
8305) and similar articles, of copper or of iron or steel with heads
of copper; screws, bolts, nuts, screw hooks, rivets, cotters, cotter-
pins, washers (including spring washers) and similar articles, of
copper
0.08
233 7416 Omitted -
234 7417 Omitted -
235 7418 Table, kitchen or other household articles and parts thereof, of
copper; pot scourers and scouring or polishing pads, gloves and
the like, of copper; sanitary ware and parts thereof, of copper
0.08
236 7419 Other articles of copper 0.08
237 75 Nickel and articles thereof 0.08
238 7601 Unwrought aluminium 0.08
239 7602 Aluminium waste and scrap 0.08
240 7603 Aluminium powders and flakes 0.08
241 7604 Aluminium bars, rods and profiles 0.08
242 7605 Aluminium wire 0.08
243 7606 Aluminium plates, sheets and strip, of a thickness exceeding 0.2
mm
0.08
244 7607 Aluminium foil (whether or not printed or backed with paper,
paperboard, plastics or similar backing materials) of a thickness
(excluding any backing) not exceeding 0.2mm
0.08
245 7608 Aluminium tubes and pipes 0.08
246 7609 Aluminium tube or pipe fittings (for example, couplings, elbows,
sleeves)
0.08
247 7610 Aluminium structures (excluding prefabricated buildings of
heading 9406) and parts of structures (for example, bridges and
bridge-sections, towers, lattice masts, roofs, roofing frameworks,
doors and windows and their frames and thresholds for doors,
balustrades, pillars and columns); aluminium plates, rods,
profiles, tubes and the like, prepared for use in structures
0.08
248 7611 Aluminium reservoirs, tanks, vats and similar containers, for any
material (other than compressed or liquefied gas), of a capacity
exceeding 300 l, whether or not lined or heat-insulated, but not
fitted with mechanical or thermal equipment
0.08
249 7612 Aluminium casks, drums, cans, boxes and similar containers
(including rigid or collapsible tubular containers), for any material
(other than compressed or liquefied gas), of a capacity not
0.08
357
exceeding 300 l, whether or not lined or heat-insulated, but not
fitted with mechanical or thermal equipment
250 7613 Aluminium containers for compressed or liquefied gas 0.08
251 7614 Stranded wire, cables, plaited bands and the like, of aluminium,
not electrically insulated
0.08
252 7615 Table, kitchen or other household articles and parts thereof, of
aluminium; pot scourers and scouring or polishing pads, gloves
and the like, of aluminium; sanitary ware and parts thereof, of
aluminium
0.08
253 7616 Other articles of aluminium 0.08
254 78 Lead and articles thereof 0.06
255 79 Zinc and articles thereof 0.06
256 80 Tin and articles thereof 0.06
257 81 Other base metals; cermets, articles thereof 0.06
258 82 Tools, implements, cutlery, spoons and forks, of base metal; parts
thereof of base metal
0.12
259 83 Miscellaneous articles of base metal 0.12
260 84 Nuclear reactors, boilers, machinery and mechanical appliances;
parts thereof
0.08
261 85 Electrical machinery and equipment and parts thereof; sound
recorders and reproducers, television image and sound recorders
and reproducers, and parts and accessories of such articles
0.08
262 86 Railway or tramway locomotives, rolling-stock and parts thereof;
railway or tramway track fixtures and fittings and parts thereof;
mechanical (including electro-mechanical) traffic signaling
equipment of all kinds
0.06
263 8701 Tractors (other than tractors of heading 8709) 0.06
264 8702 Motor vehicles for the transport of ten or more persons, including
the driver
0.06
265 8703 Motor cars and other motor vehicles principally designed for the
transport of persons (other than those of heading 8702), including
station wagons and racing cars
0.06
266 8704 Motor vehicles for the transport of goods 0.06
267 8705 Special purpose motor vehicles, other than those principally
designed for the transport of persons or goods (for example,
breakdown lorries, crane lorries, fire fighting vehicles, concrete-
mixers lorries, spraying lorries, mobile workshops, mobile
radiological units)
0.06
268 8706 Chassis fitted with engines, for the motor vehicles of headings
8701 to 8705
0.06
358
269 8707 Bodies (including cabs), for the motor vehicles of headings 8701
to 8705
0.06
270 8708 Parts and accessories of the motor vehicles of headings 8701 to
8705
0.06
271 8709 Works trucks, self-propelled, not fitted with lifting or handling
equipment, of the type used in factories, warehouses, dock areas
or airports for short distance transport of goods; tractors of the
type used on railway station platforms; parts of the foregoing
vehicles
0.06
272 8710 Tanks and other armoured fighting vehicles, motorized, whether
or not fitted with weapons, and parts of such vehicles
0.06
273 8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary
motor, with or without side-cars;
0.06
274 8712 Bicycles and other cycles (including delivery tricycles), not
motorised
0.12
275 8713 Carriages for disabled persons, whether or not motorised or
otherwise mechanically propelled
0.06
276 8714 Parts and accessories of vehicles of headings 8711 to 8713 0.12
277 8715 Baby carriages and parts thereof 0.06
278 8716 Trailers and semi-trailers; other vehicles, not mechanically
propelled; parts thereof
0.06
279 88 Aircraft, spacecraft, and parts thereof 0.06
280 89 Ships, boats and floating structures 0.06
281 90 Optical, photographic, cinematographic, measuring, checking,
precision, medical or surgical instruments and apparatus; parts
and accessories thereof
0.12
282 91 Clocks and watches and parts thereof 0.06
283 92 Musical instruments; parts and accessories of such articles 0.20
284 93 Arms and ammunition; parts and accessories thereof Nil
285 94 Furniture; bedding, mattresses, mattress supports, cushions and
similar stuffed furnishings; lamps and lighting fittings, not
elsewhere specified or included; illuminated signs, illuminated
name-plates and the like; prefabricated buildings
0.06
286 95 Toys, games and sports requisites; parts and accessories thereof 0.20
287 96 Miscellaneous manufactured articles 0.06
288 97 Works of art, collector’s pieces and antiques Nil
359
434
Form EXP3
[See item (i) of clause (a) of proviso ]
S.No----------------------
(to be filled in by the office of jurisdictional Assistant / Deputy
Commissioner)
To,
The Deputy Commissioner /Assistant Commissioner of Central
Excise
Sir,
I/We intend to avail of the exemption from service tax under
Notification No. …/2012-ST, dated ….June, 2012 in respect of
services provided by a commission agent located outside India,
which have been used for export of goods and the relevant
particulars are as follows :
.
1. Name of the exporter………
2. Service Tax Registration No……….
3. Division ……… Commissionerate ……………
4 Membership No. the Export Council………….
5 Name of the Export Council…………
6. Address of the registered / head office of exporter:……..
7. Tel. No. and e-mail ID of the exporter……..:
8. Import -Export Code No…………..
9. Details of Bank Account (Name of Bank, branch address and
account number)……..
I/we undertake that I/we shall comply with the conditions laid
down in the said notification and in case of any change in
aforementioned particulars; I/We shall intimate the same.
434 Rescinded
360
Date:…..
Place:……..
Signature and full address of Exporter
(Affix stamp)
Receipt (to be given by office of Assistant Commissioner/ Deputy
Commissioner having jurisdiction) Received Form EXP1 dated --/--
/-- submitted by __________( name of the exporter). The said
intimation is accepted and given acknowledgment No. _____( S.
No. Above)
For Assistant, / Deputy Commissioner
(Stamp)
Form EXP4
[See clause (c) of proviso]
To,
The Deputy Commissioner /Assistant Commissioner of Central
Excise
Sir,
I/We have availed of exemption of service tax under Notification
No. …/2012-ST, dated ……, 2012 in respect of services provided by
a commission agent, located outside India and have used the same
for export of goods and the relevant particulars are as follows:
1. Name of the exporter………..
2. Address of the registered / head office of exporter…………
3. Tel. No. and e-mail ID of the exporter……..:
4. Service Tax Registration No…….
5. Division ……… Commissionerate ……………
6. Membership No. Of the Export Council………
7. Import Export Code No…………..
8. Name of the Export Council………..
361
9. Details of Bank Account (Name of Bank, branch address and
account number)……..
Table-A
Sr.
No.
Details of goods exported (on which exemption of service tax
availed) during the six months ending on…………………………..=
==
Details of= Shipping= Bill/ Bill= of= export (Please enclose self attested
copy of Shipping Bill or Bill of Export) and Details of goods
exported (in case of exports of more than one commodity, please fill
in the proforma, commodity-wise)
No. Date
Date of
Let
export
order
Export
invoice
no
Date
Description
of goods
exported
Quantity
(please
mention
the unit)
FOB
value (in
rupees in
lakh)
Table- B
Details of specified service used for export of
goods, covered under the Shipping Bill or Bill
of Export mentioned in Table A in respect of
which the exemption has been availed during
the six months ending on…………………………..
Details of
documents
attached
showing the use
of such service
for export, the
details of which
are mentioned
in Table A (self
attested)
Total
amount of
service tax
claimed as
exemption
(rupees in
lakhs)
Name of Address of Invoice Date
362
service
provider
service
provider
No.
9. Declaration:-
I / We hereby declare that-
(i) I have complied with all the conditions mentioned in Notification
No. …/2012-ST, dated …. June, 2012;
(ii) the information given in this application form is true, correct
and complete in every respect and that I am authorised to sign on
behalf of the exporter;
(iii) no CENVAT credit of service tax paid on the specified service
used for export of said goods taken under the CENVAT Credit
Rules, 2004;
(iv) I / we, am/ are enclosing all the required documents. Further,
I understand that failure to file the return within stipulated time or
non-enclosure of the required document, duly certified, would
debar me/us for the refund claimed aforesaid.
Date:……..
Place:………
Signature and full address of Exporter
(Affix stamp)
363
27/2012(CE) – CENVAT Credit refund (Rule 5)
Notification No. 27/2012-C.E. (N.T.), dated 18-6-2012
Cenvat credit — Procedure for Refund — Notification No. 5/2006-C.E. (N.T.)
superseded
In exercise of the powers conferred by rule 5 of the CENVAT Credit Rules, 2004
(hereinafter referred to as the “said rules”), and in supersession of the notification of the
Government of India in the Ministry of Finance (Department of Revenue), No. 5/2006-Central
Excise (N.T.), dated the 14th March, 2006, published in Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i) vide number G.S.R 156(E), dated the 14th March, 2006, the Central
Board of Excise and Customs hereby directs that refund of CENVAT credit shall be allowed
subject to the procedure, safeguards, conditions and limitations as specified below, namely :-.
2. Safeguards, conditions and limitations. - Refund of CENVAT Credit under rule 5 of
the said rules, shall be subjected to the following safeguards, conditions and limitations, namely
:-
(a) the manufacturer or provider of output service shall submit not more than one claim
of refund under this rule for every quarter :
Provided that a person exporting goods and service simultaneously, may submit two
refund claims one in respect of goods exported and other in respect of the export of
services every quarter.
(b) in this notification quarter means a period of three consecutive months with the first
quarter beginning from 1st April of every year, second quarter from 1st July, third
quarter from 1st October and fourth quarter from 1st January of every year.
(c) the value of goods cleared for export during the quarter shall be the sum total of all
the goods cleared by the exporter for exports during the quarter as per the monthly
or quarterly return filed by the claimant.
(d) the total value of goods cleared during the quarter shall be the sum total of value of
all goods cleared by the claimant during the quarter as per the monthly or quarterly
return filed by the claimant.
(e) in respect of the services, for the purpose of computation of total turnover, the value
of export services shall be determined in accordance with clause (D) of sub-rule (1)
of rule 5 of the said rules.
(f) for the value of all services other than export during the quarter, the time of provision
of services shall be determined as per the provisions of the Point of Taxation Rules,
2011.
(g) the amount of refund claimed shall not be more than the amount lying in balance at
the end of quarter for which refund claim is being made or at the time of filing of the
refund claim, whichever is less.
(h) the amount that is claimed as refund under rule 5 of the said rules shall be debited
by the claimant from his CENVAT credit account at the time of making the claim.
(i) In case the amount of refund sanctioned is less than the amount of refund claimed,
then the claimant may take back the credit of the difference between the amount
claimed and amount sanctioned.
3. Procedure for filing the refund claim. - (a) The manufacturer or provider of output
service, as the case may be, shall submit an application in Form A annexed to the notification,
364
to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as
the case may be, in whose jurisdiction,-
(i) the factory from which the final products are exported is situated.
(ii) the registered premises of the provider of service from which output services are
exported is situated.
(b) The application in the Form A along with the documents specified therein and
enclosures relating to the quarter for which refund is being claimed shall be filed by the
claimant, before the expiry of the period specified in section 11B of the Central Excise Act, 1944
(1 of 1944).
(c) The application for the refund should be signed by-
(i) the individual or the proprietor in the case of proprietary firm or karta in case of Hindu
Undivided Family as the case may be;
(ii) any partner in case of a partnership firm;
(iii) a person authorized by the Board of Directors in case of a limited company;
(iv) in other cases, a person authorized to sign the refund application by the entity.
(d) The applicant shall file the refund claim along with the copies of bank realization
certificate in respect of the services exported.
(e) The refund claim shall be accompanied by a certificate in Annexure A-I, duly signed
by the auditor (statutory or any other) certifying the correctness of refund claimed in respect of
export of services.
(f) The Assistant Commissioner or Deputy Commissioner to whom the application for
refund is made may call for any document in case he has reason to believe that information
provided in the refund claim is incorrect or insufficient and further enquiry needs to be caused
before the sanction of refund claim.
(g) At the time of sanctioning the refund claim the Assistant Commissioner or Deputy
Commissioner shall satisfy himself or herself in respect of the correctness of the claim and the
fact that goods cleared for export or services provided have actually been exported and allow
the claim of exporter of goods or services in full or part as the case may be.
Annexure
FORM A
Application for refund of CENVAT Credit under rule 5 of the CENVAT Credit Rules, 2004 for the Quarter
ending
d d m m y y y y
To,
The Assistant Commissioner or Deputy Commissioner of Central Excise,
…………………………..………………………………………………………...
Sir,
I/We have exported, the final products or output services during the Quarter and am/are claiming the refund of
CENVAT Credit in terms of Rule 5 of the CENVAT Credit Rules, 2004 as per the details below :
S. No. Description Amount in Rs.
1. Total value of the goods cleared for export and exported during the quarter.
2. Export turnover of the services determined in terms of Clause D of sub-rule
(1) of rule 5.
3. Total CENVAT Credit taken on inputs and input services during the
quarter.
4. Amount reversed in terms of sub-rule (5C) of rule 3
365
5. Net CENVAT Credit = (3) - (4)
6. Total value of all goods cleared during the quarter including exempted
goods, dutiable goods and goods for export.
7. Export turnover of services and value of all other services, provided during
the said quarter.
8. All inputs removed as such under sub-rule (5) of rule 3, against an invoice
during the quarter.
9. Total Turnover = (6) + (7) + (8)
10. Refund amount as per the formula = (1) * (5)/(9), in respect of goods
exported.
11. Refund amount as per the formula = (2) * (5)/(9), in respect of services
exported.
12. Balance of CENVAT Credit available on the last day of quarter.
13. Balance of CENVAT Credit available on the day of filing the refund claim.
14. Amount claimed as refund, [Amount shall be less than the minimum of
(10), (12) and (13) in case of goods or the minimum of (11), (12) and (13)
in case of services]
15. Amount debited from the CENVAT account [shall be equal to the Amount
claimed as refund (14)]
2.0 Details of the Bank Account to which the refund amount to be credited : Refund sanctioned in my favour
should be credited in my/ our bank account.
Details furnished below;
(i) Account Number :
(ii) Name of the Bank :
(iii) Branch (with address) :
3.0 Declaration
(i) I/We certify that the aforesaid particulars are correct.
(ii) I/We certify that we satisfy all the conditions that are contained in rule 5 of the CENVAT Credit Rules,
2004 and in Notification No. ……./2012-C.E. (N.T.), dated ___ June, 2012.
(iii) I/We am/are the rightful claimant(s) of the refund of CENVAT Credit in terms of rule 5, the same
may be allowed in our favour.
(iv) I/We declare that no separate claim for drawback or refund has been or will be made under the
Customs and Central Excise Duties Service Tax Drawback Rules, 1995 or for claim of rebate under Central Excise
Rules, 2002 or the Export of Services Rules, 2005 or under Section 93 or 93A of Finance Act, 1994( 32 of 1994).
(v) I/We declare that we have not filed or will not file any other claim for refund under rule 5 of
CENVAT Credit Rules, 2004, for the same quarter to which this claim relates.
Date d d m m y y y y Signature of the Claimant ……..………...…….
Name of the Claimant ……….…………….
Registration Number ………….………….
Address of the Claimant ……………….…….
4.0 Enclosures :
(i) Copies of Customs Certified ARE-1 form along with the copies of shipping bill and bill of lading in case
of the export of goods.
(ii) Copies of the Bank Realization Certificates for the export of services. [refer 3(d)]
(iii) Certificate in Annexure A-I from the Auditor (statutory or any other) certifying the correctness of refund
claimed in respect of export of services. [refer 3(e)]
5.0 Refund Order No.
Date d d m m y y y y
The refund claim filed by Shri/Messrs _______________________has been scrutinized with the relevant
Central Excise/ Service Tax records. The said refund claim has been examined with respect to relevant enclosures
366
and has/has not been found in order. A refund of Rs. ____________________________ (Rupees
____________________) is sanctioned/The refund claim filed is rejected.
Assistant Commissioner or Deputy Commissioner of Central Excise Forwarded to-
(i) The Chief Accounts officer, Central Excise, for information and necessary action.
(ii) The Commissioner of Central Excise.
Assistant Commissioner or Deputy Commissioner of Central Excise ________________________________________________________________________
(i) Passed for payment of Rs. ______________ (Rupees ____________) The amount is adjustable under
head “0038 - Union Excise Duties - Deduct Refunds/0044 - Service tax - Deduct Refunds”.
(ii) Amount credited to the account of the claimant as per the details below :
Amount refunded
Account Number
Reference No. of transfer
Name of the Bank
Address of the Branch
Date d d m m y y y y Chief Accounts officer
Annexure A-I
It is certified that :
(a) I am qualified auditor to audit the books of account of M/s. ____________________
(b) I have audited the books of account of M/s. _____________________ for the quarter ending
__________________
(c) The value of the export turnover of services and total turnover of services mentioned at S. No. 2 and 7
in the table in Form A
(i) Is correct as per the books of account and relevant records of M/s ______________
(ii) Is in accordance with the provisions of rule 5 of the CENVAT Credit Rules, 2004.
Date d d m m y y y y Auditor
367
43/2012 - EXEMPTION TO RAILWAYS
Notification No. 43/2012-Service Tax
G.S.R. (E).- In exercise of the powers conferred by sub-
section (1) of section 93 of the Finance Act, 1994 (32 of 1994)
(hereinafter referred to as the said Act), the Central Government,
on being satisfied that it is necessary in the public interest so to
do, hereby exempts the taxable services of the description
mentioned in the Table below, provided by the Indian Railways
from the whole of service tax leviable thereon under section 66B of
the said Act, with effect from the date of publication of this
notification in the Official Gazette, upto and including the 30th day
of September, 2012.
TABLE
Sl. No. Description of taxable services
1. Service of transportation of passengers, with or without
accompanied belongings, by railways in --
(A) first class; or
(B) an air conditioned coach
2. Services by way of transportation of goods by railways
[F. No. 334/1/2012-TRU]
(Vikas)
Under Secretary to the Government of
India
368
45/2012 - REVERSE CHARGE MECHANISM FOR DIRECTORS AND SECURITY
SERVICES
Notification No. 45/2012 - Service Tax
New Delhi, the 7th August, 2012
G.S.R. (E).- In exercise of the powers conferred by sub-section (2) of section 68 of
the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it
is necessary in the public interest so to do, hereby makes the following amendment
in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No.30/2012-Service Tax, dated the 20th June,2012,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
vide number G.S.R. 472 (E), dated the 20th June, 2012, namely:-
In the said notification,-
(a) in para I, in clause (A),-
(i) after the sub-clause (iv), the following sub-clause shall be inserted, namely :-
“(iva) provided or agreed to be provided by a director of a company to the said
company;”;
(ii) in sub-clause (v), after the words “manpower for any purpose”, the words “ or
security services” shall be inserted.
(b) in para II, in the Table,-
(i) after Sl.No. 5, the following S.No. and entries shall be inserted, namely:-
“5A=in respect of services provided or agreed to be
provided by a director of a company to the said company Nil 100%”=
=
(ii) in Sl.No. 8, in the entries under the heading ‘Description of a service’,
after the words “manpower for any purpose”, the words “or security
services” shall be inserted.
[F.No. 334 /1/ 2012-TRU]
(Rajkumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary, vide
notification No. 30/2012 - Service Tax, dated 20th June, 2012, vide number G.S.R. 472 (E),
dated the 20th June, 2012 and the same has not been amended so far.
369
46/2012 - STR AMENDED FOR REVERSE CHARGE MECHANISM FOR DIRECTORS
AND SECURITY SERVICES
Notification No. 46/2012 - Service Tax
New Delhi, the 7th August, 2012
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) read
with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994),
the Central Government hereby makes the following rules further to
amend the Service Tax Rules, 1994, namely:—
1. (1) These rules may be called the Service Tax (Third Amendment)
Rules, 2012.
(2) They shall come into force on the date of their publication in
the Official Gazette.
2. In the Service Tax Rules, 1994, in rule 2, in sub-rule (1),-
(A) in clause (d), in sub-clause (i),-
(i) after the item (E), the following item shall be inserted, namely;-
“(EE) in relation to service provided or agreed to be provided by
a director of a company to the said company, the recipient of
such service;”;
(ii) in the item (F), in the sub-item (b), after the words “manpower
for any purpose”, the words “ or security services” shall be inserted.
(B) after clause (f), the following clause shall be inserted, namely:—
“(fa) “security services” means services relating to the security of any
property, whether movable or immovable, or of any person, in any
manner and includes the services of investigation, detection or
verification, of any fact or activity;”
[F.No. 334 /01/2012- TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i) vide notification No. 2/94-ST, dated the 28th June, 1994 vide
number G.S.R. 546(E), dated the 28th June, 1994 and was last amended by notification No.
36/2012-Service Tax, dated the 20th June, 2012 vide number G.S.R. 478 (E), dated the 20th
June, 2012.
370
47/2012 – Return due date
NOTIFICATION No 47/2012-SERVICE TAX
New Delhi, the 28th September, 2012
6 Asvina, 1934 Saka
G.S.R (E).-In exercise of the powers conferred by sub-section(1) read with
sub-section (2) of section 94 of the Finance Act 1994 (32 of 1994), the Central
Government hereby makes the following rules further to amend the Service Tax
Rules, 1994, namely:-
1. (1) These rules may be called the Service Tax(Fourth Amendment) Rules,
2012.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. In the Service Tax Rules,1994, in rule 7, in sub-rule(2), the following proviso
shall be inserted, namely:-
“Provided that the Form ‘ST-3’ required to be submitted by the 25th day of
October, 2012 shall cover the period between 1st April to 30th June, 2012
only.”
F.No 341/21/2012-TRU
(Rajkumar Digvijay)
Under Secretary to the Government of India
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section(i) vide notification No. 2/94-ST, dated 28th June, 1994 vide number G.S.R 546(E), dated
the 28th June, 1994 and were last amended by notification No 46/2012- Service Tax, dated the 7th
August 2012 , vide GSR 622 (E) dated the 7th August 2012.
371
48/2012 - Amends ST-1 and Accounting codes re-notified
Not. No. 48/2012-ST
Service Tax Rules, 1994 — Fifth Amendment of 2012 — Description of Taxable
Services and Accounting Codes re-notified
In exercise of the powers conferred by sub-section (1) read with sub-section (2) of
Section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes
the following rules further to amend the Service Tax Rules, 1994, namely :-
1. (1) These rules may be called the Service Tax (Fifth
Amendment) Rules, 2012.
(2) They shall come into force on the date of their
publication in the Official Gazette.
2. In the Service Tax Rules, 1994, in Form ST-1,-
(a) in serial no. 7, for the table, the following table shall be substituted, namely :-
S. No. Description of taxable service (Choose from ANNEXURE)
(1) (2)
(b) after the ACKNOWLEDGEMENT, the following Annexure shall be inserted, namely
:-
“ANNEXURE
Descriptions of Taxable Services and Accounting Codes for payment of Service Tax
Sl.
No.
Finance
Act,
1994
erstwhile
Section
65(105)
Descriptions of
Taxable Services
Accounting Codes
Tax
Collection
Other
Receipts
(interest)
Penalties Deduct
Refunds
(for use by
the field
formations)
(1) (2) (3) (4) (5) (6) (7)
1 (a) Stockbroker
service
00440008 00440009 00441298 00440121
* (b) Telegraph
authority -
telephone
connection [(b)
was omitted w.e.f.
1-6-2007 and
clubbed under
(zzzx)]
00440003 00440119 00441296 00440122
* (c) Telegraph
authority - pager
[(c) was omitted
w.e.f. 1-6-2007
and clubbed under
00440015 00440020 00441301 00440021
372
(zzzx)]
2 (d) General insurance
service
00440005 00440006 00441297 00440120
3 (e) Advertising agency
services
00440013 00440016 00441299 00440017
4 (f) Courier agency
service
00440014 00440018 00441300 00440019
5 (g) Consulting
engineer services
00440057 00440058 00441310 00440059
6 (h) Custom House
Agent service
00440026 00440027 00441302 00440028
7 (i) Steamer agent
services
00440029 00440030 00441303 00440031
8 (j) Clearing and
forwarding agent
services
00440045 00440046 00441306 00440047
9 (k) Manpower
recruitment/supply
agency service
00440060 00440061 00441311 00440062
* (ka) Goods Transport
Operator
[This description is
not to be used
since omitted and
clubbed under
(zzp) Transport of
goods by road -
goods transport
agency service -
(zzp)]
00440067 00440068 00441313 00440069
10 (l) Air travel agent
services
00440032 00440033 00441304 00440034
11 (m) Mandap keeper
service
00440035 00440036 00441305 00440037
12 (n) Tour operator
services
00440063 00440064 00441312 00440065
13 (o) Rent-a-cab
scheme operator
services
00440048 00440049 00441307 00440050
14 (p) Architect services 00440072 00440073 00441314 00440074
15 (q) Interior
decoration/
Designer services
00440076 00440077 00441315 00440078
16 ( r) Management or
business
consultant service
00440116 00440117 00441325 00440118
373
17 (s) Chartered
accountant
services
00440092 00440093 00441319 00440094
18 (t) Cost accountant
service
00440096 00440097 00441320 00440098
19 (u) Company
secretary service
00440100 00440101 00441321 00440102
20 (v) Real estate agent
service
00440104 00440105 00441322 00440106
21 (w) Security/detective
agency service
00440108 00440109 00441323 00440110
22 (x) Credit rating
agency service
00440088 00440089 00441318 00440090
23 (y) Market research
agency service
00440112 00440113 00441324 00440114
24 (z) Underwriter
service
00440084 00440085 00441317 00440086
* (za) Mechanised
slaughterhouse
service
[omitted vide
Finance Act, 2001]
00440080 00440081 00441316 00440082
25 (za) Scientific &
technical
consultancy
services
00440125 00440126 00441326 00440127
26 (zb) Photography
service
00440129 00440130 00441327 00440131
27 (zc) Convention service 00440133 00440134 00441328 00440135
* (zd) Telegraph
authority - leased
circuit [omitted
w.e.f. 1-6-2007
and clubbed under
(zzzx)]
00440137 00440138 00441329 00440139
* (ze) Telegraph
authority -
telegraph service
[omitted w.e.f. 1-
6-2007 and
clubbed under
(zzzx)]
00440141 00440142 00441330 00440143
* (zf) Telegraph
authority - telex
service [omitted
w.e.f. 1-6-2007
and clubbed under
00440145 00440146 00441331 00440147
374
(zzzx)]
* (zg) Telegraph
authority -
facsimile service
[omitted w.e.f. 1-
6-2007 and
clubbed under
(zzzx)]
00440149 00440150 00441332 00440151
28 (zh) Online information
and database
access service
and/or retrieval
service through
computer network
00440153 00440154 00441333 00440155
29 (zi) Video production
agency/video tape
production service
00440157 00440158 00441334 00440159
30 (zj) Sound recording
studio or agency
services
00440161 00440162 00441335 00440163
31 (zk) Broadcasting
service
00440165 00440166 00441336 00440167
32 (zl) Insurance
auxiliary service in
relation to general
insurance
00440169 00440170 00441338 00440171
33 (zm) Banking and other
Financial services
00440173 00440174 00441339 00440175
34 (zn) Port service
(major ports)
00440177 00440178 00441341 00440179
35 (zo) Service for repair,
reconditioning,
restoration, or
decoration or any
other similar
services, of any
motor vehicle
[(zzj) omitted
w.e.f 16-6-05]
00440181 00440182 00441343 00440183
* (zp) Body corporate
other than banks
in relation to
banking and other
financial services
[omitted w.e.f.
10-9-04 and
clubbed under
(zm)]
----------- ----------- ----------- -------------
375
36 (zq) Beauty parlours
/beauty treatment
00440209 00440210 00441361 00440211
37 (zr) Cargo handling
service
00440189 00440190 00441348 00440191
38 (zs) Cable operators 00440217 00440218 00441366 00440219
39 (zt) Dry cleaning
service
00440221 00440222 00441369 00440223
40 (zu) Event
management
00440197 00440198 00441353 00440199
41 (zv) Fashion design 00440213 00440214 00441363 00440215
42 (zw) Health club and
fitness centre
service
00440205 00440206 00441358 00440207
43 (zx) Life insurance
service
00440185 00440186 00441346 00440187
44 (zy) Insurance
auxiliary service
concerning life
insurance business
00440185 00440186 00441346 00440187
45 (zz) Rail travel agent’s
service
00440201 00440202 00441356 00440203
46 (zza) Storage and
warehousing
services
00440193 00440194 00441350 00440195
47 (zzb) Business auxiliary
service
00440225 00440226 00441371 00440227
48 (zzc) Commercial
training or
coaching
00440229 00440230 00441374 00440231
49 (zzd) Erection,
commissioning
and installation
00440233 00440234 00441376 00440235
50 (zze) Franchise
service435
00440237 00440238 00441384 00440239
51 (zzf) Internet café 00440241 00440242 00441386 00440243
52 (zzg) Maintenance or
repair service
00440245 00440246 00441388 00440247
53 (zzh) Technical testing
and analysis
service
00440249 00440250 00441389 00440251
54 (zzi) Technical 00440249 00440250 00441389 00440251
435 Franchise services are liable to service tax and demand of VAT on the same transaction
by state government as ‘right to use Trade Mark’ rejected – Malabar Gold Pvt Ltd 2013-
TIOL-512-HC-Kerala-ST
376
inspection and
certification
agency service
* (zzj) Authorised service
station [omitted
w.e.f 16-6-05 and
clubbed under
(zo)]
--------- ----------- ------------ ----------
55 (zzk) Foreign exchange
broker service
00440173 00440174 00441339 00440175
56 (zzl) Other port (minor
port) service
00440177 00440178 00441341 00440179
57 (zzm) Airport services by
airport authority
00440258 00440259 00441391 00440260
58 (zzn) Transport of goods
by air
00440266 00440267 00441393 00440268
59 (zzo) Business
exhibition service
00440254 00440255 00441390 00440256
60 (zzp) Transport of goods
by road/goods
transport agency
service
00440262 00440263 00441392 00440264
61 (zzq) Construction
services other
than residential
complex, including
commercial/
industrial buildings
or civil structures
00440290 00440291 00441399 00440292
62 (zzr) Services by holder
of intellectual
property right
providing
intellectual
property services
other than
copyright
00440278 00440279 00441396 00440280
63 (zzs) Opinion poll
agency service
00440274 00440275 00441395 00440276
64 (zzt) Outdoor catering 00440051 00440052 00441308 00440053
65 (zzu) Services by a
programme
producer
00440286 00440287 00441398 00440288
66 (zzv) Survey and
exploration of
mineral
00440270 00440271 00441394 00440272
67 (zzw) Pandal or 00440054 00440055 00441309 00440056
377
shamiana service
68 (zzx) Travel agent for
booking of
passage (other
than air/rail travel
agents)
00440294 00440295 00441400 00440296
69 (zzy) Services provided
by
recognised/regi-
stered associations
in relation to
forward contracts
00440282 00440283 00441397 00440284
70 (zzz) Transport of goods
through pipeline or
other conduit
00440302 00440303 00441430 00440304
71 (zzza) Site formation and
clearance,
excavation, earth
moving and
demolition
services
00440306 00440307 00441431 00440308
72 (zzzb) Dredging of rivers,
ports harbours,
backwaters,
estuaries, etc.
00440310 00440311 00441432 00440312
73 (zzzc) Survey and map
making service
00440314 00440315 00441433 00440316
74 (zzzd) Cleaning services 00440318 00440319 00441434 00440320
75 (zzze) Club or association
service
00440322 00440323 00441435 00440324
76 (zzzf) Packaging service 00440326 00440327 00441436 00440328
77 (zzzg) Mailing list
compilation and
mailing service
00440330 00440331 00441437 00440332
78 (zzzh) Construction of
residential
complex service
00440334 00440335 00441438 00440336
79 (zzzi) Service provided
by a registrar to
an issue
00440338 00440339 00441439 00440340
80 (zzzj) Service provided
by a share
transfer agent
00440342 00440343 00441440 00440344
81 (zzzk) Automated Teller
Machine
operations,
maintenance or
00440346 00440347 00441441 00440348
378
management
service
82 (zzzl) Service provided
by a recovery
agent
00440350 00440351 00441442 00440352
83 (zzzm) Selling of space or
time slots for
advertisements
00440354 00440355 00441443 00440356
84 (zzzn) Sponsorship
service provided
to body-corporate
or firm including
sports
sponsorships
00440358 00440359 00441444 00440360
85 (zzzo) Transport of
passengers
embarking on
domestic/inter-
national journey
by air
00440362 00440363 00441445 00440364
86 (zzzp) Transport of goods
by rail including
transport of goods
in containers by
rail (for the
present, transport
of passengers by
rail in air-
conditioned
class/first class
also may be paid
under this
description/
accounting code)
00440390 00440391 00441446 00440392
87 (zzzq) Business support
service
00440366 00440367 00441447 00440368
88 (zzzr) Auction service 00440370 00440371 00441448 00440372
89 (zzzs) Public relation
management
service
00440374 00440375 00441449 00440376
90 (zzzt) Ship management
service
00440378 00440379 00441450 00440380
91 (zzzu) Internet
telecommunication
services (includes
internet telephony
Service which
became taxable
from 1-5-2006)
00440382 00440383 00441451 00440384
379
92 (zzzv) Transport of
persons by cruise
ship
00440386 00440387 00441452 00440388
93 (zzzw) Credit card, debit
card, charge card
or other payment
card related
services
00440394 00440395 00441453 00440396
94 (zzzx) Services of
telegraph
authority in
relation to
telecommunication
service
00440398 00440399 00441454 00440400
95 (zzzy) Mining of mineral,
oil or gas service
00440402 00440403 00441455 00440404
96 (zzzz) Renting of
immovable
property
services
00440406 00440407 00441456 00440408
97 (zzzza) Works contract
service
00440410 00440411 00441457 00440412
98 (zzzzb) Development and
supply of content
for use in telecom
services,
advertising
agency, etc.
00440414 00440415 00441458 00440416
99 (zzzzc) Asset
management
including portfolio
management and
fund management
00440418 00440419 00441459 00440420
100 (zzzzd) Design service
other than interior
decoration and
fashion designing
00440422 00440423 00441460 00440424
101 (zzzze) Information
technology
software service
00440452 00440450 00441461 00440451
102 (zzzzf) Services provided
by an insurer of
life insurance
under Unit Linked
Insurance Plan
(ULIP)
00440430 00440431 00441462 00440432
103 (zzzzg) Services provided
by a recognized
00440434 00440435 00441463 00440436
380
stock exchange in
relation to
transaction in
securities
104 (zzzzh) Services provided
by recognised/
registered
associations in
relation to
clearance or
settlement of
transactions in
goods or forward
contracts
00440438 00440439 00441464 00440440
105 (zzzzi) Services provided
by a processing
and clearinghouse
in relation to
securities, goods
and forward
contracts
00440442 00440443 00441465 00440446
106 (zzzzj) Services provided
by any person in
relation to supply
of tangible goods
00440445 00440447 00441466 00440448
107 (zzzzk) Cosmetic and
plastic surgery
service
00440460 00440463 00441467 00440466
108 (zzzzl) Transport of goods
by coastal
shipping (services
by way of
transportation of
goods by inland
waterways is
placed in the
negative list)
00440470 00440473 00441468 00440476
109 (zzzzm) Legal consultancy
service
00440480 00440483 00441469 00440486
110 (zzzzn) Promotion,
marketing,
organizing or
assisting in
organizing games
of chance
including lottery,
etc.
00440595 00440596 00441470 00440597
111 (zzzzo) Health services by
a clinical
00440598 00440599 00441471 00440600
381
establishment,
health check-
up/diagno-sis, etc.
112 (zzzzp) Maintenance of
medical records
00440601 00440602 00441472 00440603
113 (zzzzq) Service of
promotion or
marketing of
brand of goods/
services/events
00440604 00440605 00441473 00440606
114 (zzzzr) Service of
permitting
commercial use or
exploitation of
events
00440607 00440608 00441474 00440609
115 (zzzzs) Electricity
exchange service
00440610 00440611 00441475 00440612
116 (zzzzt) Copyright service -
transfer
temporarily/permit
use or enjoyment
00440613 00440614 00441476 00440615
117 (zzzzu) Special services
provided by
builders
00440616 00440617 00441477 00440618
118 (zzzzv) Restaurant service 00441067 00441068 00441478 00441069
119 (zzzzw) Service of
providing
accommodation in
hotels, inn, guest
house, club or
campsite whatever
name called.
00441070 00441071 00441479 00441072
120 Other taxable
services [services
other than the 119
listed above]
00441480 00441481 00441485 00441482
Education Cess
Sl.
No.
Description Tax
collection
Other
receipts
(interest)
Penalties Deduct
refunds
1 Primary Education Cess 00440298 00440299 00441486 00440300
2 Secondary and Higher
Education Cess
00440426 00440427 00441487 00440428
382
49/2012 - Exemption to Janashri and Aam Aadmi Bima Yojana
Notification No.49 /2012 - Service Tax
New Delhi, the 24th December, 2012
G.S.R....(E)- In exercise of the powers conferred by sub-section (1) of section 93 of
the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendment in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No.25/2012-Service Tax, dated the 20th June, 2012,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
number G.S.R. 467 (E), dated the 20th June, 2012, namely:-
In the said notification, after entry 26, the following shall be inserted namely:-
“26A. Services of life insurance business provided under following schemes -
(a) Janashree Bima Yojana (JBY); or
(b) Aam Aadmi Bima Yojana (AABY);”.
[F.No. 354 /190/ 2012-TRU]
(Rajkumar Digvijay)
Under Secretary to the Government of India
383
1/2013 - Amendment in Service Tax Rules, 1994
Notification No.01/2013-Service Tax
New Delhi, the22nd February, 2013
3 Phalguna, 1934 Saka
G.S.R (E).-In exercise of the powers conferred by sub-section (1) read
with sub-section (2) of section 94 of the Finance Act, 1994 ( 32 of 1994), the
Central Government hereby makes the following rules further to amend the
Service Tax Rules, 1994,namely:-
1.(1) These rules may be called the Service Tax ( Amendment) Rules, 2013.
(2)They shall come into force on the date of their publication in the Official
Gazette.
2.In the Service Tax Rules, 1994, -
(a) in rule 7, in sub-rule (2), after the proviso, the following proviso shall be
inserted, namely:-
“ Provided further that the Form ST- 3 for the period between the 1st day ofJuly
2012to the 30th day of September 2012, shall be submitted by the 25th day of
March, 2013”;
(b)for Form ST-3, the following Form shall be substituted, namely:-
“FORM ST-3”
(Return under section 70 of the Finance Act, 1994 read with rule 7 of Service Tax
Rules, 1994)
(Please see the instructions carefully before filling the Form)
PART-A GENERAL INFORMATION
A1
ORIGINAL REVISED
(Please tick whichever is applicable)
A2 STC Number:
A3Name of the assessee:
A4
Financial Year -
A5Return for the period (Please tick the appropriate period)
A6
A6.1 Has the assessee opted to operate as “Large Taxpayer” Unit [‘Y’/’N’](As defined
under Rule 2(ea) of the Central Excise Rules, 2002 read with Rule 2 (1) (cc) of
the Service Tax Rules, 1994)
Yes/No
A6.2 If reply to column A6.1 is Yes, name of Large Taxpayer Unit opted for(choose
from List)
Dropdown
List of
LTUs
A7Premises Code Number:
A8Constitution of the assessee (Please tick the appropriate category)
A8.1 Individual/Proprietary A8.2 Limited liability Partnership
A8.3 Registered Public Ltd.Company A8.4 Registered Private Ltd. Company
A.8.5 Registered Trust A8.6 Society/Co-operative Society
April – September October - March
384
A 8.7 A firm A8.8 Hindu Undivided Family
A 8.9 Government A8.10 An association of persons or body
of individuals, whether incorporated or not
A.8.11 A local authority A8.12 Every artificial juridical person, not
falling within any of the preceding
categories
A9Taxable Service(s) for which tax is being paid
A10Assessee is liable to pay service tax on this taxable service as –
(Please tick the appropriate category)
A10.1 A Service Provider under Section
68(1) A10.2 A Service Receiver under Section
68(2)
A 10.3 A Service Providerunder partial
reverse charge under proviso to Section
68(2)
A10.4 A Service Receiver under partial
reverse charge under proviso to Section
68(2)
A 10.5 If covered by A10.3 above, then
the percentage of service tax Payable as
provider of service
A10.6 If covered by A10.4 above, then
the percentage of service tax Payableas
recipient of service
A11 EXEMPTIONS
A11.1Has the assessee availed benefit of any exemption notification (‘Y’/‘N’)
A11.2If reply to A11.1 is ‘Y’, please furnish Notification Nos. and Sl. No. in the
notification under which such exemption is availed
.
A12 ABATEMENTS
A12.1Has any abatement from the value of services been claimed (‘Y’/‘N’)
A12.2If reply to A12.1 is ‘Y’, please furnish Notification Nos. and Sl. No. in the
notification under which such abatement is availed:
.
A13 PROVISIONAL ASSESSMENT
A13.1W hether provisionally assessed (‘Y’/‘N’)
A13.2 If reply to A13.1 is ‘Y’, please furnish Provisional Assessment Order No. &
Date
PART-B VALUE OF TAXABLE SERVICE AND SERVICE TAX PAYABLE
(TO BE DISPLAYED SERVICE-WISE)
B1FOR SERVICE PROVIDER
Month / Quarter Apr/Oc
t
May/No
v
Jun/De
c
July/Ja
n
Aug/Fe
b
Sep/Ma
r
B1.1 Gross amount (excluding
amounts received in advance,
amounts taxable on receipt
basis, for which
bills/invoices/challans or any
other document may not have
been issued) for which
bills/invoices/challans or any
other documents are issued
relating to service provided or to
be provided (including export of
service and exempted service)
B1.2 Amount received in advance for
services for which
bills/invoices/challans or any
other documents have not been
issued
385
B1.3 Amount taxable on receipt basis
under third proviso to rule 6(1) of
Service Tax Rules, 1994 for
which bills/invoices/challans or
any other documents have not
been issued
B1.4 Amount taxable for services
provided for which
bills/invoices/challans or any
other documents have not been
issued
B1.5 Money equivalent of other
considerations charged, if any, in
a form other than money
B1.6 Amount on which service tax is
payable under partial reverse
charge
B1.7 Gross Taxable Amount
B1.7 = B1.1+B1.2+B1.3+B1.4+
B1.5+B1.6
B1.8 Amount charged against export
of service provided or to be
provided
B1.9 Amount charged for exempted
service provided or to be
provided (other than export of
service given at B1.8 above)
B1.1
0
Amount charged as pure agent
B1.1
1
Amount claimed as abatement
B1.1
2
Any other amount claimed as
deduction, please specify.
B1.1
3
Total Amount claimed as
Deduction
B1.13=B1.8+B1.9+B1.10+B1.11
+
B1.12
B1.1
4
NET TAXABLE VALUE
B1.14=B1.7 - B1.13
B1.1
5
Service tax rate wise break up of
NET TAXABLE VALUE (B1.14):
Ad-valorem rate
B1.1
6
Specific rate
(applicable as per rule 6 of STR)
B1.1
7
Service tax payable
B1.1
8
Less R&D cess payable
B1.1
9
Net Service Tax payable
(B1.19=B1.17-B1.18)
B1.2
0
Education Cess payable
B1.2Secondary & Higher Education
386
1 Cess payable
B2 – FOR SERVICE RECEIVER
Month / Quarter Apr/Oct May/Nov Jun/Dec July/Jan Aug/Feb Sep/Mar
B2.1 Gross amount (excluding
amounts paid in advance,
amounts taxable on payment
basis, for which
bills/invoices/challans or any
other document may not have
been issued) for which
bills/invoices/challans or any
other documents are issued
relating to service received or
to be received
B2.2 Amount paid in advance for
services for which
bills/invoices/challans or any
other documents have not
been issued
B2.3 Amount taxable on receipt
basis under third proviso to
rule 6(1) of Service Tax
Rules, 1994 for which
bills/invoices/challans or any
other documents have not
been issued
B2.4 Money equivalent of other
considerations paid, if any, in
a form other than money
B2.5 Amount paid for services
received from Non-Taxable
territory - Imports
B2.6 Amount paid for services
received from Non-Taxable
territory – Other than Imports
B2.7 Amount on which service tax
is payable under partial
reverse charge
B2.8 Gross Taxable Amount
B2.8=
B2.1+B2.2+B2.3+B2.4+
B2.5+B2.6+B2.7
B2.9 Amount paid for exempted
services received or to be
received
B2.10 Amount paid as pure agent
B2.11 Amount claimed as
abatement
B2.12 Any other amount claimed as
deduction,please specify
B2.13 Total Amount claimed as
Deduction
B2.13 =
B2.9+B2.10+B2.11+B2.12
387
B2.14 NET TAXABLE VALUE
B2.14 = B2.8-B2.13
B2.15 Service tax rate wise break
up of NET TAXABLE VALUE
(B2.14):
Ad-valorem rate
B2.16 Specific rate
(applicable as per rule 6 of
STR)
B2.17 Service tax payable
B2.18 Less R&D cess payable
B2.19 Net Service Tax payable
(B2.19=B2.17-B2.18)
B2.20 Education Cess payable
B2.21 Secondary & Higher
Education Cess payable
PART-C SERVICE TAX PAID IN ADVANCE
Amount of Service Tax paid in advance under sub-rule (1A) of Rule 6 of ST Rules:
Month / Quarter Apr/Oct May/Nov Jun/Dec July/Jan Aug/Feb Sep/Mar
C1 Amount of service tax
deposited in advance
C2 Amount of Education Cess
deposited in advance
C3 AAmount of Secondary &
Higher EducationCess
deposited in advance
C4 Challan Nos.,
date & amount
(i) No.
Date
Amount
PART-D SERVICE TAX PAID IN CASH AND THROUGH CENVAT CREDIT
Service Tax, Education Cess, Secondary & Higher Education Cess and other amounts paid
(To be filled by a person liable to pay service tax and not to be filled by an Input Service Distributor):
Month / Quarter Apr/Oct May/Nov Jun/Dec July/Jan Aug/Feb Sep/Mar
D1 In cash
D2 By CENVAT credit
(not applicable where the service tax is liable
to be paid by the Recipient of Service)
D3 By adjustment of amount paid as service tax
in advance under Rule 6(1A) of the ST Rules
D4 By adjustment of excess amount paid earlier
as service tax and adjusted, by taking credit of
such excess service tax paid, in this period
under Rule 6(3) of the ST Rules
D5 By adjustment of excess amount paid earlier
as service tax and adjusted in this period
under Rule 6(4A) of the ST Rules
D6 By adjustment of excess amount paid earlier
as service tax in respect of service of Renting
of Immovable Property, on account of non-
availment of deduction of property tax paid
and adjusted in this period under Rule 6(4C)
of the ST Rules
D7 By book adjustment in the case of specified
388
Government departments
D8 Total Tax paid
D8 = D1+D2+D3+D4+D5+D6+D7
PART-EEDUCATION CESS PAID IN CASH AND THROUGH CENVAT CREDIT
E1 In cash
E2 By CENVAT credit (not applicable where the
service tax is liable to be paid by the recipient
of service)
E3 By adjustment of amount paid as service tax
in advance under Rule 6(1A) of the ST Rules
E4 By adjustment of excess amount paid earlier
as service tax and adjusted, by taking credit of
such excess service tax paid, in this period
under Rule 6(3) of the ST Rules
E5 By adjustment of excess amount paid earlier
as service tax and adjusted in this period
under Rule 6(4A) of the ST Rules
E6 By adjustment of excess amount paid earlier
as service tax in respect of service of Renting
of Immovable Property, on account of non-
availment of deduction of property tax paid
and adjusted in this period under Rule 6(4C)
of the ST Rules
E7 By book adjustment in the case of specified
Government departments
E8 Total Education Cess paid
E8=E1+E2+E3+E4+E5+E6+E7
PART-FSECONDARY& HIGHER EDUCATION CESS PAID IN CASH AND THROUGH CENVAT
CREDIT
F1 In cash
F2 By CENVAT credit (not applicable where the
service tax is liable to be paid by the recipient
of service)
F3 By adjustment of amount paid as service tax
in advance under Rule 6(1A) of the ST Rules
F4 By adjustment of excess amount paid earlier
as service tax and adjusted, by taking credit of
such excess service tax paid, in this period
under Rule 6(3) of the ST Rules
F5 By adjustment of excess amount paid earlier
as service tax and adjusted in this period
under Rule 6(4A) of the ST Rules
F6 By adjustment of excess amount paid earlier
as service tax in respect of service of Renting
of Immovable Property, on account of non-
availment of deduction of property tax paid
and adjusted in this period under Rule 6(4C)
of the ST Rules
F7 By book adjustment in the case of specified
Government departments
F8 Total Tax paid
F8=F1+F2+F3+F4+F5+F6+F7
PART G - ARREARS, INTEREST, PENALTY, ANY OTHER AMOUNT ETC. PAID
389
G1 Arrears of revenue (Tax amount) paid in cash
G2 Arrears of revenue (Tax amount) paid by utilising
CENVAT credit
G3 Arrears of Education Cess paid in cash
G4 Arrears of Education Cess paid by utilising CENVAT
credit
G5 Arrears of Secondary & Higher Education Cess paid in
cash
G6 Arrears of Secondary & Higher Education Cess paid by
utilising CENVAT credit
G7 Amount paid in terms of section 73A of Finance Act,
1994
G8 Interest paid (in cash only)
G9 Penalty paid (in cash only)
G10 Amount of Late fee paid, if any.
G11 Any other amount paid (please specify)
G12 Total payment of arrears, interest, penalty and any
other amount, etc. made
G12=(G1+G2+G3+G4+G5+G6+G7+G8+G9+G10+G11)
PART-H
H1DETAILS OF CHALLAN (vide which service tax education cess, secondary and higher education cess
and other amounts have been paid in cash)
Challan Nos. with date and
amount
(i) No.
Date
Amt.
(ii) No.
Date
Amt.
H2Source documents details for payments made in advance / adjustment, for entries made at columns
D3, D4, D5, D6, D7; E3, E4, E5, E6, E7; F3, F4, F5, F6, F7; & G1 to G11
S. No. and
description of
payment
entry in this
return
Month/
Quarter
Challan / Document / Credit
Entry Reference Number etc.
Challan /
Document
Date
Amount
** (Assessee liable to pay service tax on quarterly basis may furnish details quarter wise i.e. Apr-Jun, Jul-
Sep, Oct-Dec, Jan-Mar)
PART-I
DETAILS OF INPUT STAGE CENVAT CREDIT
(To be filled by a taxable service provider only and not to be filled by Service
Receiver liable to pay service tax or Input Service Distributor):
I1 DETAILS ABOUT THE ASSESSEE PROVIDING EXEMPTED AND NON-TAXABLE SERVICE OR
MANUFACTURINGEXEMPTED EXCISABLE GOODS:
I1.1 Whether providing any exempted service or non-taxable
service (‘Y’/‘N’)
I1.2 Whether manufacturing any exempted excisable goods
(‘Y’/‘N’)
I1.3 If reply to any one of the above is ‘Y’, whether
maintaining separate account for receipt or consumption
of input service and input goods [refer to Rule 6 (2) of
CENVAT Credit Rules, 2004](‘Y’/‘N’)
I1.4 If reply to any one of the columns I1.1&I1.2 above is ‘Y’
390
and I1.3 is ‘N’, which option, from the below mentioned
options, is being availed under Rule 6(3) of the CENVAT
Credit Rules, 2004
I1.4.1 Whether paying an amount equal to 6% of the value of
the exempted goods and exempted services [refer to
Rule 6(3)(i) of CENVAT Credit Rules, 2004](‘Y’/‘N’); or
I1.4.2 Whether paying an amount equivalent to CENVAT
Credit attributable to inputs and input services used in or
in relation to manufacture of exempted goods or
provision of exempted services [refer to Rule 6(3)(ii) of
CENVAT Credit Rules, 2004](‘Y’/‘N’);or
I1.4.3 Whether maintaining separate account for receipt or
consumption of input goods, taking CENVAT credit only
on inputs (used in or in relation to the manufacture of
dutiable final products excluding exempted goods and
for the provision of output services excluding exempted
services) andpaying an amount equivalent to CENVAT
Credit attributable to input services used in or in relation
to manufacture of exempted goods or provision of
exempted services [refer to Rule 6(3)(iii) of CENVAT
Credit Rules, 2004](‘Y’/‘N’)
I2. AMOUNT PAYABLE UNDER RULE 6(3) OF THE CENVAT CREDIT RULES,2004:
Sl.
No.
Month/Quarter Apr/
Oct
May/
Nov
Jun/
Dec
July/
Jan
Aug/
Feb
Sep/
Mar
I2.1 Value of exempted goods cleared
I2.2 Value of exempted services
provided
I2.3 Amount paid under Rule 6(3) of
CENVAT Credit Rules, 2004, by
debiting CENVAT Credit account
I2.4 Amount paid under Rule 6(3) of
CENVAT Credit Rules, 2004, by
cash
I2.5 Total amount paid under Rule 6(3)
of CENVAT Credit Rules, 2004
I2.5 = I2.3 + I2.4
I3 CENVAT CREDIT TAKEN AND UTILISED:
Sl.
No.
Month/Quarter Apr/
Oct
May/
Nov
Jun/
Dec
July/
Jan
Aug/
Feb
Sep/
Mar
I3.1DETAILS OF CENVAT CREDIT OF SERVICE TAX AND CENTRAL EXCISE DUTY
TAKEN AND UTILISATION THEREOF –
I3.1.1 Opening Balance
I3.1.2 Credit taken
I3.1.2.1 on inputs
I3.1.2.2 on capital goods
I3.1.2.3 on input services received directly
I3.1.2.4 as received from Input Service Distributor
I3.1.2.5 from inter-unit transfer by a LTU
I3.1.2.6 Any other credit taken (please specify)
I3.1.2.7 TOTAL CREDIT TAKEN =
391
I3.1.2.7=
(I3.1.2.1+I3.1.2.2+I3.1.2.3+I3.1.2.4+
I3.1.2.5+I3.1.2.6)
I3.1.3 Credit Utilised
I3.1.3.1 for payment of service tax
I3.1.3.2 for payment of Education Cess on taxable
services
I3.1.3.3 for payment of Secondary and Higher
Education Cess on taxable services
I3.1.3.4 for payment of excise duty or any other duty
I3.1.3.5 towards clearance of input goods and capital
goods removed as such or after use
I3.1.3.6 towards inter unit transfer to LTU
I3.1.3.7 for payment of an amount under rule 6(3) of
CENVAT Credit Rules, 2004
I3.1.3.8 for any otherpayments/adjustments/reversal
(Please specify)
I3.1.3.9 TOTAL CREDIT UTILISED
I3.1.3.9=(I3.1.3.1+I3.1.3.2+I3.1.3.3+I3.1.3.4+
I3.1.3.5+I3.1.3.6+I3.1.3.7+I3.1.3.8)
I3.1.4 Closing Balance of CENVAT credit
I3.1.4 = {(I3.1.1 + I3.1.2.7) – I3.1.3.9}
I3.2 DETAILS OF CENVAT CREDIT OF EDUCATION CESS TAKEN & UTILISATION THEREOF –
I3.2.1 Opening Balance of Education Cess
I3.2.2 Credit of Education Cess taken
I3.2.2.1 on inputs
I3.2.2.2 on capital goods
I3.2.2.3 on input services received directly
I3.2.2.4 as received from Input Service
Distributor
I3.2.2.5 from inter unit transfer by a LTU
I3.2.2.6 Any other credit taken (please specify)
I3.2.2.7 Total credit of Education Cess taken
I3.2.2.7=
(I3.2.2.1+I3.2.2.2+I3.2.2.3+I3.2.2.4+
I3.2.2.5+I3.2.2.6)
I3.2.3 Credit of Education Cess utilised
I3.2.3.1 for payment of Education Cess on
goods & services
I3.2.3.2 towards payment of Education Cess
on clearance of input goods and
capital goods removed as such or after
use
I3.2.3.3 towards inter unit transfer to LTU
I3.2.3.4 for any other payments/adjustments/
reversal (please specify)
I3.2.3.5 Total credit of Education Cessutilised
I3.2.3.5=
(I3.2.3.1+I3.2.3.2+I3.2.3.3+I3.2.3.4)
I3.2.4 Closing Balance of Education
CessI3.2.4={(I3.2.1+I3.2.2.7)-I3.2.3.5}
392
I3.3 DETAILS OF CENVAT CREDIT OF SECONDARY AND HIGHER EDUCATION CESS
TAKEN & UTILISATION THEREOF –
I3.3.1 Opening Balance of SHEC
I3.3.2 Credit of SHEC taken
I3.3.2.1 on inputs
I3.3.2.2 on capital goods
I3.3.2.3 on input services received directly
I3.3.2.4 as received from Input Service Distributor
I3.3.2.5 from inter unit transfer by a LTU
I3.3.2.6 Any other credit taken (please specify)
I3.3.2.7 Total credit of SHEC taken I3.3.2.7=
(I3.3.2.1+I3.3.2.2+I3.3.2.3+I3.3.2.4+I3.3.2.5+I3.3.2.6)
I3.3.3 Credit of SHECutilised
I3.3.3.1 for payment of SHEC on goods & services
I3.3.3.2 towards payment of SHECon clearance of input
goods and capital goods removed as such or after
use
I3.3.3.3 towards inter unit transferto LTU
I3.3.3.4 for any other payments/adjustments/reversal (please
specify)
I3.3.3.5 Total credit of SHEC utilised I3.3.3.5=
(I3.3.3.1+I3.3.3.2+I3.3.3.3+I3.3.3.4)
I3.3.4 Closing Balance of SHEC I3.3.4 = {(I3.3.1+I3.3.2.7)-
I3.3.3.5}
PART J
CREDIT DETAILS FOR INPUT SERVICE DISTRIBUTOR
(TO BE FILLED ONLY BY AN INPUT SERVICE DISTRIBUTOR):
Sl.
No.
Month/Quarter Apr/
Oct
May/
Nov
June/
Dec
July/
Jan
Aug/
Feb
Sep/
Mar J1DETAILS OF CENVAT CREDIT OF SERVICE TAX & CENTRAL EXCISE DUTY TAKEN AND
DISTRIBUTION THEREOF –
J1.1 Opening Balance of CENVAT credit
J1.2 Credit taken (for distribution) on input
services
J1.3 Credit distributed
J1.4 Credit not eligible for distribution in terms
of rule 7(b) of CENVAT Credit Rules,
2004
J1.5 Closing Balance of CENVAT credit J1.5
= {(J1.1+J1.2) – (J1.3+J1.4)}
J2 DETAILS OF CENVAT CREDIT OF EDUCATION CESS TAKEN AND DISTRIBUTION THEREOF –
J2.1 Opening balance of CENVAT credit of
Education Cess
J2.2 Credit of Education Cess taken (for
distribution) on input services
J2.3 Credit of Education Cess distributed
J2.4 Credit of Education Cess not eligible for
distribution in terms of rule 7(b) of
CENVAT Credit Rules, 2004
393
J2.5 Closing Balance of CENVAT credit of
EC= J2.5={(J2.1+J2.2) – (J2.3+J2.4)}
J3DETAILS OF CENVAT CREDIT OF SECONDARY AND HIGHER EDUCATION CESS TAKEN AND
DISTRIBUTION THEREOF –
J3.1 Opening balance of CENVAT credit of
SHEC
J3.2 Credit of SHEC taken (for distribution) on
input services
J3.3 Credit of SHEC distributed
J3.4 Credit of SHEC not eligible for
distribution in terms of rule 7(b) of
CENVAT Credit Rules, 2004
J3.5 Closing Balance of CENVAT credit of
SHEC = J3.5 ={(J3.1+J3.2) –
(J3.3+J3.4)}
PART K
SELF ASSESSMENT MEMORANDUM:
(a)I/We declare that the above particulars are in accordance with the
records and books maintained by me/us and are correctly stated.
(b)I/We have assessed and paid the service tax and/or availed and
distributed CENVAT credit correctly as per the provisions of the Finance
Act, 1994 and the rules made thereunder.
(c)I/We have paid duty within the specified time limit and in case of delay,
I/We have deposited the interest leviable thereon.
(d)I have been authorised as the person to file the return on behalf of the
person providing the taxable service/recipient of service, as the case may
be.
Place:
Date:
(Name and Signature of Assessee or Authorised Signatory)
PART L
If the return has been prepared by a Service Tax Return Preparer or Certified Facilitation
Centre (hereinafter referred to as ‘STRP’/’CFC’), furnish further details as below:
(a) Identification
No. of
STRP/CFC
(b) Name of
STRP/CFC
(Signature of STRP/CFC)
*****
INSTRUCTIONS TO FILL UP FORM ST-3:
A. General Instructions
(i)If there is a change in the address or any other information as provided by the
assessee in Form ST-1 or as contained in Form ST-2 (Certificate of Registration
issued by the Department), the assessee should file amendment to ST1 application
online in ACES for getting the Amended ST2 issued by the departmental officer. If the
assessee has provided / received any additional service for which he is not registered,
he has to first file the amendment to ST1 application and after the approval of the
same by the departmental officer, he should file the return.
(ii)Please indicate ‘NA’ against entries which are not applicable.
(iii)Please indicate ‘Nil’ where the information to be furnished is nil.
(iv)Please fill ‘Y’ for Yes, or ‘N’ for No wherever it is written as (‘Y’/’N’) in the FORM.
B. Instructions to fill up FORM ST-3
394
Column
No. in
Form
ST-3
Instructions
A2 STC No. is 15 digit PAN based service tax code number issued to assessee in the FORM
ST-2 (Certificate of Registration issued by the Department).
A3 Name of the assessee should be filled as mentioned in FORM ST-2 (Certificate of
Registration issued by the Department).
A5 The relevant period for which return is being filed is to be selected.
A9 &
A10
Though with effect from 1st July 2012, classification of services has been dispensed with, the
assessee is required to mention the names of taxable service(s) as per ANNEXURE
enclosed with this return.
A11.1 &
A11.2
If assessee has availed benefit of any exemption notification, the notification number and
Serial number (in the notification), if any, against which such exemption has been availed,
has to be entered
A12.1 &
A12.2
If assessee has availed abatement from the value of services, he has to furnish the
notification number and Serial number (in the notification), if any, against which such
abatement has been availed.
B (i)An assessee liable to pay service tax on quarterly basis may furnish details quarter-wise
i.e. Apr-Jun, Jul-Sep, Oct-Dec & Jan-Mar;
(ii)The recipient of service liable to pay service tax should indicate the amount paid by him to
service provider.
B1.1 Grossamountfor which bills/invoices/challans are issued againsttaxable service provided or
agreed to be provided or received/agreed to be received (incaseofservicereceiver),which are
taxable on accrual basis, as per the Point of Taxation Rules is to be mentioned in this column
(A)
it includes,-
(a)amount charged towards exported service,
(b)amount charged towards exempted service (other than export of service),
(c)amount charged as a pure agent, and
(d) amount includible in terms of Rules 5(1) & 6(1) of the Service Tax (Determination of Value)
Rules, 2006
(B)
it excludes
(a)amount received in advance i.e. before provision of services for which bills or
invoices or challans or any other documents may not have been issued, because it
has to be shown in column B1.2;
(b)amount taxable on receipt basis, which is applicable to individuals and
partnership firms whose aggregate value of taxable services during previous
financial year was less than or equal to rupees fifty lakh and he opts to pay tax at
the time when payment is received by him in respect of taxable value of rupees fifty
lakh in the financial year to which return relates as per third proviso to Rule 6(1) of
Service Tax Rules, 1994, for which bills or invoices or challans or any other
documents may not have been issued, because it has to be shown in column B1.3;
(c)Amount taxable for the services provided for which bills or invoices or challans or
any other documents may not have been issued, (this amount has to be entered in
column B1.4.)
(d)Service tax;
395
(e)Education cess; and
(f)Secondary and higher education cess
B1.2 Grossamountreceived(orpaidincaseofservicereceiver) inadvance isthe total amount received
(or paid in case of service receiver) for the particular taxable service before provision of
service (including any amount received for continuous service), and
(A)
it includes,-
(a)amount received towards exported service,
(b) amount received towards exempted service (other than export of service),
(c)amount received as pure agent, and
(d) amount received which is liable to be included in the value in terms of Rules 5(1) & 6(1) of
the Service Tax (Determination of Value) Rules, 2006
(e) Amount paid for services received from Non-Taxable territory – Imports or other than
Imports under column Nos. B2.5 and B2.6.
(B)
it excludes
(a)Service tax,
(b)Education cess, and
(c)Secondary and higher education cess
B1.3 This is applicable to individuals and partnership firms whose aggregate value of taxable
services during previous financial year is less than or equal to rupees fifty lakh and he opts to
pay tax at the time when payment is received by him in respect of taxable value of rupees
fifty lakh in the financial year to which return relates.
B1.5 &
B2.4
(i) The value of consideration charged (or paid in case of service receiver), other than money,
is to be estimated in equivalent money value of such consideration in terms of the Service Tax
(Determination of Value) Rules, 2006
(ii) ‘Consideration’ includes any amount that is payable for the taxable services provided or to
be provided, as defined in Explanation to Section 67 of the Act.
B1.6,
B2.5,
B2.6 &
B2.7
In case of some services, as notified under Notification No. 30/2012-ST, dated 20th June, 2012
(as amended), the liability to pay service tax has been placed on the recipient of service in
terms of sub-section (2) of section 68 of the Finance Act, 1994 read with rule 2(1)(d)(i) of the
Service Tax Rules, 1994. In respect of such services, the amount on which service tax is
payable has to be shown as calculated in terms of Rule 7 of Point of Taxation Rules, 2011.
B1.8 With effect from 01.07.2012, exports of services are not to be taxed under service tax, as per
Place of Provision of Services Rules, 2012. If the assessee has included the amount of export
of service in column B1.1, he has to fill up said amount in column B1.7 also for claiming
deduction of said amount from the gross amount. However, there may be cases where ST-3
return for the period prior to 01.07.2012 is to be filed by service providers or recipient of
service, as the case may be. They are also required to fill up this column for furnishing the
amount charged against the export of services made before 01.07.2012.
B1.9 ‘Exempted Service’ refers to the taxable service which is exempt, for the time being, from
payment of service tax under a notification, other than by way of abatement.
B1.10 ‘Pure Agent’ has been defined in Explanation 1 to Rule 5 of the Service Tax (Determination of
Value) Rules, 2006
B1.11 ‘Abatement’ refers to the part of value of taxable service which is not includible in the taxable
value for payment of service tax through notification, such as Notification No. 26/2012-ST,
dated 20.06.2012 issued under Section 66B of the Finance Act, 1994.
B1.12 Any deductions, which is not mentioned in any other clause, from gross value of taxable
service has to be provided (For example, deduction of property tax paid in respect of the
taxable service of renting of an immovable property in terms of Rule 6(4C) of Service Tax
Rules, 1994 read with Notification No. 29/2012-ST, dated 20th June, 2012).
B1.15 &
B2.15
If an assessee is paying tax at the rate of 12% or other than 12%, then he has to mention the
details of taxable value in this column by entering the tax rate applicable to him. This is also
applicable to the assessees who want to file their return pertaining to the period prior to
396
01.04.2012 when tax rate was 10%, 8% or 5%, as the case may be. This can be done by
inserting additional rows for such entries.
B1.16 &
B2.16
As per Rule 6 of the Service Tax Rules, 1994, the service Providers/Recipients in respect of
services of ‘Booking of tickets for Air Travel provided by Air Travel Agents’; ‘Insurer carrying
on life insurance business’; ‘Purchase or sale of foreign currency including money changing’;
and ‘Distributors and selling agents or persons assisting in organizing lottery’ have been
given option to pay service tax at either specific rate or a combination of specific and ad
valorem rate. Such assessees have to mention the details of such taxable value in these
columns by selecting the appropriate tax rate(s) as applicable to them.
B1.18 &
B2.18
Deduction of R& D cess paid, if applicable, from tax payable can be shown here separately
for the relevant services, such as the service of import of technology, applicable.
B2.5 &
B2.6
Amount paid for services received from non taxable territory is be entered in this column.This
includes value of import of services. Two separate rows have been provided to enter the
B2.5 - Amount charged for services received from Non-Taxable territory – Imports and;
B2.6 - Amount charged for services received from Non-Taxable territory – Other than Imports
D3, E3 &
F3
If any amount has been paid in advance as service tax in terms of rule 6(1A) of Service Tax
Rules, 1994 and the assessee has adjusted that amount against his service tax liability, such
adjustment has to be shown here.
D4, E4 &
F4
Rule 6 (3) of Service Tax Rules, 1994 allows adjustment of service tax amount which was
paid earlier in respect of taxable service not provided wholly or partially by the service
provider or where the amount of invoice is re-negotiated. Such adjustment is to be shown
here.
Example: A service provider receives an advance of Rs 1000/- on which he pays a service
tax of Rs 120/-.However, later on he does not provide this service and refunds the amount to
the person from whom the advance was received. He can, in this case, adjust the amount of
Rs 120/- for any of his future liability of service tax.
D5, E5 &
F5
Rule 6 (4A) of Service Tax Rules, 1994 allows adjustment ofservice tax amount paid in
preceding months or quarter, which is in excess of the service tax liabilityfor such month or
quarter. Such adjustment is to be shown here.
Example: A service provider having centralized registration pays an amount of Rs 1000/- as
service tax for services provided by him from his five branches. However, on receipt of
information from these branches, the service tax liability is computed as Rs 900/-. In this
case he has paid an excess amount of Rs 100/- as service tax. He can adjust this excess
amount of Rs 100/- against service tax liability for succeeding month/quarter.
D6, E6 &
F6
Rule 6 (4C) of Service Tax Rules, 1994 allows adjustment of service tax amount paid in
preceding months or quarter, which is in excess of the amount required to be paid towards
service tax liability for such month or quarter on account of non-availment of deduction of
property tax paid in terms of Notification No. 29/2012-ST, dated 20th June, 2012 from the
gross amount of rent charged for the immovable property. Such adjustment is to be shown
here.
D7, E7 &
F7
Some department of Central Government collect service tax for the services
provided/received by them and the payment of said tax to the Union of India is made through
book adjustment or book transfer. Such book adjustment or transfer in the case of specified
Government departments is to be shown here.
G1 to G6 Arrears of revenue includes,-
(a)amount that was payable earlier but not paid;
(b)amountpendingrecoveryonfinalizationofadjudicationor appellant stage, as the case may be;
(c)amount pending in appeals without having any stay for recovery; or
(d)amount arising on finalization of provisional assessment etc.
G7 Any amount collected in excess of the service tax assessed or determined and paid on any
taxable service from the recipient of taxable service in any manner,has to be paid to the credit
of the Central Government as per the provisions of section 73A of the Finance Act, 1994.
Assessee may furnish such amount here.
G10 Amount of late fee paid for any delayed filing of return has to be entered here as prescribed
under Rule 7C of Service Tax Rules, 1994
397
G11 Any other amount paid may be specified. (It may include amount paid in terms of any
adjudication order, any appellate order, etc.)
H2 Against source documents, following details may be furnished,-
(i)For adjustment under rule 6(3) of Service Tax Rules, 1994, furnish details of earlier return,
from where excess amount is derived
(ii) For adjustment under rule 6(4A), furnish details of acknowledgement No. of intimation to
Superintendent as required to be furnished in the rules;
(iii) For arrears, interest and penalty, the source document/period is as follows,-
(a) in case these are paid suomoto by the assessee, the period for which such amount is paid
may be furnished
(b) if paid consequent to a show cause notice (SCN) or order, the source document is relevant
SCN No./Demand Notice No., Order-in-Original No. or Order-in-Appeal No., or any other order
, etc.;
(iv)For adjustment of excess amount of service tax paid on the service of ‘Renting of
Immovable Property’ in case the taxpayer has not availed the deduction of property tax paid in
terms of Rule 6(4C) of the Service Tax Rules, 1994 read with Notification No. 29/2012-ST,
dated 20th June, 2012 and he opts to avail such deduction against his service tax liability
within 1 year from the date of payment of such property tax, the source document is original
receipt issued by the concerned department of State Government showing the payment of
such property tax.
I3.1.2 (i) The terms “ input”, “capital goods”, “input services” and “ input service distributor” may be
understood as defined in the CENVAT Credit Rules, 2004;
(ii) Against S. No. I3.1.2.1, I3.1.2.2 &I3.1.2.3, the details of CENVAT credit availed on input/
input services/ capital goods, received directly by the assessee, are to be shown. In other
words, these figures would not include the service tax credit received from input service
distributor (i.e., office of the manufacturer or output service provider, which receives invoices
towards purchases of input services and issues invoices//bills /challans for distribution of
such credit, in terms of Rule 7 of CENVAT Credit Rules, 2004).
(iii) Against S. No. I3.1.2.4, furnish the details of service tax credit as received from ‘input
service distributor’.
(iv) Against S. No. I3.1.2.5, details have to be filled only by Large Taxpayer Unit who has
opted to operate as LTU..
I3.1.3.4 This has to be filled only by the assessees who are engaged in both, providing taxable service
as well as manufacturing and clearance of excisable goods. This entry would also include
excise duty paid on capital goods and inputs removed as waste and scrap, in terms of rule
3(5A) of CCR, 2004
I3.1.3.7 If the assessee has utilised CENVAT credit for making any payment, adjustment or reversal
such as in the case of write off of value of inputs or capital goods as per rule 3(5B) of CCR,
2004; reversal of CENVAT credit on the inputs used in the manufacture of goods which have
been ordered to be remitted as per rule 3(5C) of CCR, 2004; the payment of arrears of
revenue etc., such details may be mentioned here.
I3.3 & J3 Details of credit taken and utilised in respect of Secondary and Higher Education cess has to
be shown separately in these columns
J This information has to be furnished by an input service distributor only.
J1.4,
J2.4 &
J3.4
This information has to be furnished by an input service distributor who has availed CENVAT
credit of the service tax paid on the services used in a unit which is exclusively engaged in
manufacturing of exempted excisable goods or providing exempted services, as such credit is
not liable to be distributed in terms of Rule 7(b) of the CENVAT Credit Rules, 2004
ANNEXURE TO INSTRUCTIONS OF ST-3 RETURN
DESCRIPTION OF TAXABLE SERVICES FOR FILLING UP SERVICE TAX
RETURN (ST-3)
Sl.
No. Description of Taxable Services
(1) (2)
398
Sl.
No. Description of Taxable Services
(1) (2) 1 Stockbroker service 2 General insurance service 3 Advertising agency services 4 Courier agency service 5 Consulting engineer services 6 Custom House Agent service 7 Steamer agent services 8 Clearing and forwarding agent services 9 Manpower recruitment / supply agencyservice 10 Air travel agent services 11 Mandap keeper service 12 Tour operator services 13 Rent-a-cab scheme operator services 14 Architect services 15 Interior decoration / Designer services 16 Management or business consultant service 17 Chartered accountant services 18 Cost accountant service 19 Company secretary service 20 Real estate agent service 21 Security / detective agency service 22 Credit rating agency service 23 Market research agency service 24 Underwriter service 25 Scientific & technical consultancy services 26 Photography service 27 Convention service 28 Online information and database access service and / or retrieval service through computer
network
29 Video production agency / video tape production service 30 Sound recording studio or agency services 31 Broadcasting service 32 Insurance auxiliary service in relation to general insurance 33 Banking and other Financial services 34 Port service (major ports) 35 Service for repair, reconditioning, restoration, or decoration or any other similar services, of
any motor vehicle
36 Beautyparlours / beauty treatment
399
Sl.
No. Description of Taxable Services
(1) (2) 37 Cargo handling service 38 Cable operators 39 Dry cleaning service 40 Event management 41 Fashion design 42 Health club and fitness centre service 43 Life insurance service 44 Insurance auxiliary service concerning life insurance business 45 Rail travel agent’s service 46 Storage and warehousing services 47 Business auxiliary service 48 Commercial training or coaching 49 Erection, commissioning and installation 50 Franchise service 51 Internet café 52 Maintenance or repair service 53 Technical testing and analysis service 54 Technical inspection and certification agency service 55 Foreign exchange broker service 56 Other port (minor port) service 57 Airport services by airport authority 58 Transport of goods by air 59 Business exhibition service 60 Transport of goods by road / goods transport agency service 61 Construction services other than residential complex, includingcommercial / industrial
buildings or civil structures
62 Services by holder of intellectual property right providing intellectual property services other
than copyright
63 Opinion poll agency service 64 Outdoor catering 65 Services by a programme producer 66 Survey and exploration of mineral 67 Pandal or shamiana service 68 Travel agent for booking of passage (other than air / rail travel agents) 69 Services provided by recognised / registered associations in relation to forward contracts 70 Transport of goods through pipeline or other conduit 71 Site formationand clearance, excavation, earth moving and demolition services 72 Dredging of rivers, ports harbours, backwaters, estuaries, etc.
400
Sl.
No. Description of Taxable Services
(1) (2) 73 Survey and map making service 74 Cleaning services 75 Club or association service 76 Packaging service 77 Mailing list compilation and mailing service 78 Construction of residential complex service 79 Service provided by a registrar to an issue 80 Service provided by a share transfer agent 81 Automated Teller Machine operations, maintenance or management service 82 Service provided by a recovery agent 83 Selling of space or time slots for advertisements 84 Sponsorship service provided tobody-corporate or firm including sports sponsorships 85 Transport of passengers embarking on domestic / international journey by air 86 Transport of goods by rail including transport of goods in containers by rail (for the present,
transport of passengers by rail in air-conditioned class/first class also may be paid under this
description/accounting code)
87 Business support service 88 Auction service 89 Public relation management service 90 Ship management service 91 Internet telecommunication services (includes internet telephony Service which became
taxable from 01.05.2006)
92 Transport of persons by cruise ship 93 Credit card, debit card, charge card or other payment card related services 94 Services of telegraph authority in relation to telecommunication service 95 Mining of mineral, oil or gas service 96 Renting of immovable property services 97 Works contract service
98 Development and supply of content for use in telecom services, advertising agency, etc. 99 Asset management including portfolio management and fund management 100 Design service other than interior decoration and fashion designing 101 Information technology software service
102 Services provided by an insurer of life insurance under Unit Linked Insurance Plan (ULIP) 103 Services provided by a recognized stock exchange in relation to transaction in securities 104 Services provided by recognised / registered associations in relation to clearance or
settlement of transactions in goods or forward contracts
105 Services provided by a processing and clearing house in relation to securities, goods and
forward contracts
106 Services provided by any person in relation to supply of tangible goods
401
Sl.
No. Description of Taxable Services
(1) (2) 107 Cosmetic and plastic surgery service 108 Transport of goods by coastal shipping (services by way of transportation of goods by inland
waterways is placed in the negative list)
109 Legal consultancy service 110 Promotion, marketing, organizing or assisting in organizing games of chance including
lottery, etc.
111 Health services by a clinical establishment, health check-up / diagnosis , etc. 112 Maintenance of medical records 113 Service of promotion or marketing of brand of goods / services / events 114 Service of permitting commercial use or exploitation of events 115 Electricity exchange service 116 Copyright service – transfer temporarily / permit use or enjoyment 117 Special services provided by builders 118 Restaurant service 119 Service of providing accommodation in hotels, inn, guest house, club or campsite whatever
name called.
120 Other taxable services (servicesother than the 119 listed above) F.No: 137/98/2006-CX4 ( Part I)
(Rajkumar Digvijay)
Under Secretary to the Government of India
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i) vide notification No. 2/94-ST, dated 28th June, 1994 vide number
G.S.R 546(E), dated the 28th June, 1994 and was last amended by notification No 48/2012-
Service Tax, dated the 30th November, 2012, vide GSR858(E) dated the 30th November
2012.
402
2/2013 - Construction of Complex – Taxable value 25% or 30%
436No.2 /2013 - Service Tax1st March, 2013
G.S.R....(E)- In exercise of the powers conferred by sub-section (1) of section 93 of
the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied
that it is necessary in the public interest so to do, hereby makes the following
amendment in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No.26/2012-Service Tax, dated the 20th June, 2012,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
vide number G.S.R. 468 (E), dated the 20th June, 2012, namely:-
In the said notification, in the TABLE, for serial number 12 and the entries relating
thereto, the following serial number and the entries shall be substituted, namely:-
“12.==Construction of a complex,=
building, civil structure or a part
thereof, intended for a sale to a
buyer, wholly or partly except=
where entire consideration is
received after issuance of=
completion certificate by the
competent authority,J==
=
(i) for residential unit having=
carpet area upto 2000 square=
feet or where the amount=
charged is less than rupees
one crore;==
(ii) for other than the (i) above.==
=
=
=
=
=
=
=
25==
=
=
=
30==
(i) CENVAT credit on=
inputs used for
providing the
taxable service has
not been taken=
under the provisions
of the CENVAT
Credit Rules, 2004; =
=
(ii) The value of land=
is included in the=
amount charged=
from the service=
receiver.”. =
=
3. The notification shall come in to force on the 1st day of March, 2013.
[F.No. 334 /3/ 2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary, vide notification
No. 26/2012 - Service Tax, dated 20th June, 2012, vide number G.S.R. 468 (E), dated the 20th June,
2012 and this notification has not been amended so far.
436 This Notification stands amended vide Not. No. 9/2013 w.e.f. 8 May 2013
403
3/2013 - Mega Exemption Amended
Notification No. 3 /2013 - Service Tax
New Delhi, the 1st March, 2013
G.S.R....(E)- In exercise of the powers conferred by sub-section (1) of section 93 of
the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it
is necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of
Finance (Department of Revenue), No.25/2012-Service Tax, dated the 20th June,
2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i), vide G.S.R. 467 (E), dated the 20th June, 2012, namely:-
In the said notification,-
1. in the opening paragraph,-
(i) in entry 9, for the words “ provided to or by”, the words “provided to ” shall be
substituted;
(ii) for entry 15, the following entry shall be substituted, namely:-
“15. Services provided by way of temporary transfer or permitting the use or
enjoyment of a copyright,-
(a) covered under clause (a) of sub-section (1) of section 13 of the Copyright Act,
1957 (14 of 1957), relating to original literary, dramatic, musical or artistic works;
or
(b) of cinematograph films for exhibition in a cinema hall or cinema theatre;”;
(iii) for entry 19, the following entry shall be substituted, namely:-
“19. Services provided in relation to serving of food or beverages by a restaurant,
eating joint or a mess, other than those having the facility of air-conditioning or
central air-heating in any part of the establishment, at any time during the year;”;
(iv) in entry 2o, items (a),(d) and (e) shall be omitted;
(v) for entry 21, the following entry shall be substituted, namely:- “21. Services
provided by a goods transport agency, by way of transport in a goods carriage of,-
(a) agricultural produce;
(b) goods, where gross amount charged for the transportation of goods on a
consignment transported in a single carriage does not exceed one thousand five
hundred rupees;
(c) goods, where gross amount charged for transportation of all such goods for a
single consignee does not exceed rupees seven hundred fifty;
404
(d) foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and
edible oil, excluding alcoholic beverages;
(e) chemical fertilizer and oilcakes;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities,
accidents or mishap; or
(h) defence or military equipments;”;
(vi) entry 24, shall be omitted;
(vii) in entry 25, in item (b), for the words, “a vessel or an aircraft”, the words “a
vessel” shall be substituted;
2. In paragraph 2 relating to Definitions, in clause (k),-
(a) in sub-clause (iv), the word “or” shall be omitted;
(b) sub-clause (v), shall be omitted; .
3. This notification shall come in to force on the 1st day of April, 2013.
[F.No. 334 /3/ 2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary, vide notification
No. 25/2012 - Service Tax, dated 20th June, 2012, vide G.S.R. 467 (E), dated the 20th June, 2012
and was last amended by notification No. 49/2012-Service Tax, dated the 24th December, 2012 vide
G.S.R. 923 (E), dated the 24th December, 2012.
405
4/2013 - Advance Ruling (Applicable for Public Company)
Notification No. 4/2013 - Service Tax 1st March, 2013
G.S.R....(E)- In exercise of the powers conferred under sub-clause (iii) of clause (b)
of section 96A of the Finance Act, 1994 (32 of 1994), the Central Government
hereby specifies “the resident public limited company” as class of persons for
the purposes of the said clause.
Explanation.- For the purposes of this notification,-
(a) “public limited company” shall have the same meaning as is assigned to “public
company” in clause (iv) of sub-section (1) of section 3 of the Companies Act, 1956
(1 of 1956) and shall include a private company that becomes a public company by
virtue of section 43A of the said Act;
(b) “resident” shall have the same meaning as is assigned to it in clause (42) of
section 2 of the Income-tax Act, 1961 (43 of 1961) in so far as it applies to a
company.
[F.No. 334 /3/ 2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
406
5/2013 - New ST-5, ST-6 and ST-7 notified
NOTIFICATION NO 5/2013-ST.,
Dated: April 10, 2013
In exercise of the powers conferred by sub-section(1) read with sub-section (2) of section
94 of the Finance Act 1994 (32 of 1994), the Central Government hereby makes the
following rules further to amend the Service Tax Rules, 1994, namely:-
1. (1) These rules may be called the Service Tax (Second Amendment) Rules, 2013.
(2) They shall come into force on and from the 1st day of June, 2013.
2. For Form No. S.T.-5, S.T.-6 and S.T.-7 appended to the said rules, the following Forms
shall respectively be substituted, namely:-
“FORM ST – 5
[See rule 9 (1)]
Form of Appeal to Appellate Tribunal under sub-section (1) of section 86 of the
Finance Act, 1994
In the Customs, Central Excise and Service Tax Appellate Tribunal
Appeal No._ of 20…
………………………………………………………………………….......... Appellant
Versus
…………… ………………………………………………………………… Respondent
1.
2. The designation and address of the authority passing the order appealed against.
3. Number and date of the order appealed against
Dated
- -
Assessee Code* Premises Code** PAN or UID***
E-Mail Address Phone No Fax No.
- - - - - -
407
4. Date of Communication of a copy of the order appealed against.
5. State or Union territory and the Commissionerate in which the order or decision of
assessment, penalty was made.
6. If the order appealed against relates to more than one Commissionerate, mention the
names of all the Commissionerates, so far as it relates to the appellant.
7. Designation and address of the adjudicating authority in case where the order appealed
against is an order of the Commissioner (Appeals).
8. Address to which notices may be sent to the appellant.
9. Address to which notices may be sent to the respondent.
10. Whether the decision or order appealed against involves any question having a relation
to the rate of service tax or to the value of taxable service for the purpose of assessment.
11. Description of service and whether in ‘negative list’.
12. Period of dispute.
13. (i) Amount of service tax, if any, demanded for the period of dispute .
(ii) Amount of interest involved upto the date of the order appealed against.
(iii) Amount of refund, if any, rejected or disallowed for the period of dispute.
(iv) Amount of penalty imposed.
14. (i) Amount of service tax or penalty or interest deposited. If so, mention the amount
deposited under each head in the box below. (A copy of the challan under which the deposit
is made should be furnished)
(ii) If not, whether any application for dispensing with such deposit has been made?
15. Does the order appealed against also involve any central excise duty demand, and
related fine or penalty, so far as the appellant is concerned?
16. Does the order appealed against also involve any customs duty demand, and related
penalty, so far as the appellant is concerned?
17. Subject matter of dispute in order of priority. (please choose two items from the list
below)
Service Tax Penalty Interest
408
[i) Taxability - Sl. No. of Negative List, ii) Classification of Services, iii)
Applicability of Exemption Notification-Notification No., iv) Export of services., v)
Import of services., vi) Point of Taxation., vii) CENVAT., viii) Refund., ix)
Valuation., x) Others.]
18. Central Excise Assessee Code, if registered with Central Excise.
19. Give details of Importer Exporter Code (IEC), if registered with Director General of
Foreign Trade.
20. If the appeal is against an Order-in-Appeal of Commissioner (Appeals), the number of
Orders-in-Original covered by the said Order-in-Appeal.
21. Whether the respondent has also filed appeal against the order against which this
appeal is made?
22. If answer to serial number 21 above is ‘yes’, furnish the details of appeal.
23. Whether the appellant wishes to be heard in person?
24. Reliefs claimed in appeal.
Statement of facts
Grounds of appeal
Signature of the authorised
representative, if any.
Signature of the
appellant
Verification
I…………………………………………. the appellant, do hereby declare that what is stated above is
true to the best of my information and belief.
Verified today , the ………day of …………………….20……………..
Signature of the authorised representative, if any.
Signature of the appellant
Priority 1 Priority 2
409
Notes.-
(1) The grounds of appeal and the form of verification shall be signed by the appellant in
accordance with rule 3 of the Central Excise (Appeals) Rules, 2001.
(2) The appeal including the statement of facts and the grounds of appeal shall be filed in
quadruplicate accompanied by an equal number of copies of the order (one of which at least
shall be a certified copy) appealed against.
(3) The appeal shall be in English (or Hindi) and should set forth, concisely and under
distinct heads, the grounds of appeal without any argument or narrative and such grounds
should be numbered consecutively.
(4) The appeal shall be accompanied by such fee as prescribed under sub-section (6) of
section 86 of the Act and shall be paid through a crossed bank draft drawn in favour of the
Assistant Registrar of the Bench of the Tribunal on a branch of any nationalized bank
located at the place where the Bench is situated.
-----------
*15 digit Permanent Account Number (PAN) - based registration number to be mandatorily
furnished by registered persons.
**10 digit Commissionerate/ Division/ Range code (Premises Code) to be mandatorily
furnished by registered persons. This ‘premises code’ is available in the ST-2 Registration
Certificate itself. In case of Centralized registrations the ‘premises code’ of the Main Office
for which Centralized registration has been taken, should be indicated.
*** To be furnished by non-registered persons. Unique Identification (UID) number to be
furnished where PAN is not available.
FORM ST – 6
[See rule 9 (3)]
Form of Memorandum of Cross-Objections to the Appellate Tribunal under sub-
section (4) of section 86 of Finance Act, 1994
In the Customs, Central Excise and Service Tax Appellate Tribunal
Cross objection No______________ of 20….
Appeal No________________________ of 20….
……………………………………………………………………………….Appellant
Versus
…………………………………………………………………………… Respondent
1.
410
2. State or Union territory and the Commissionerate in which the order or decision of
assessment, penalty was made.
3. Date of receipt of notice of appeal or application filed with the Appellate Tribunal by the
appellant or, as the case may be, the Commissioner of Central Excise/ Service Tax/ Large
Taxpayer Unit.
4. Number and date of the order appealed against.
Dated
5. Address to which notices may be sent to the respondent.
6. Address to which notices may be sent to the appellant or applicant.
7. Whether the decision or order appealed against involves any question having a relation to
the rate of service tax or to the value of service for the purpose of assessment.
8. Description of service and whether under ‘negative list’.
9. Period of dispute.
10. (A) In case of cross-objections filed by a person other than the Commissioner of Central
Excise/ Service Tax/ Large Taxpayer Unit;
i) Amount of service tax, if any, demanded for the period of dispute
ii) Amount of interest involved upto the date of the order appealed against.
iii) Amount of refund, if any, rejected or disallowed for the period of dispute
iv) Amount of penalty imposed.
(B) (i) Amount of tax or penalty or interest deposited. If so, mention the amount deposited
under each head in the box below. (A copy of the challan under which the deposit is made
should be furnished)
Assessee Code* Premises Code** PAN or UID***
E-Mail Address Phone No Fax No.
- - - - - -
- -
Service Tax Penalty Interest
411
(ii) If not, whether any application for dispensing with such deposit has been made?
11. (A) In case of cross-objections filed by the Commissioner of Central Excise/ Service Tax/
Large Taxpayer Unit
(i) Amount of service tax demand dropped or reduced for the period of dispute
(ii) Amount of interest demand dropped or reduced for the period of dispute
(iii) Amount of refund sanctioned or allowed for the period of dispute
(iv) Whether no or less penalty imposed?
(B) Whether an application for staying the operation of the order appealed against has been
made?
12. Subject matter of dispute in order of priority. (please choose two items from the list
below)
[i) Taxability - Sl. No. of Negative List, ii) Classification of Services, iii)
Applicability of Exemption Notification-Notification No., iv) Export of services., v)
Import of services., vi) Point of Taxation., vii) CENVAT., viii) Refund., ix)
Valuation., x) Others.]
13. Central Excise Assessee Code, if registered with Central Excise.
14. Give details of Importer Exporter Code, if registered with Director General of Foreign
Trade.
15. Reliefs claimed in memorandum of cross -objections.
Grounds of cross objections
(1)
(2)
(3)
(4)
Priority 1 Priority 2
412
Signature of the
authorised representative,
if any
Signature of the respondent
or his authorised
representative
Verification
I, the respondent, do hereby declare that what is stated above is true to the best of my
information and belief.
Verified today, the ____________ day of ______ 20…_____
Place:
Date:
Signature of the
authorised representative,
if any
Signature of the respondent
or his authorised
representative
Notes.-
(1) If the memorandum is filed by any person, other than the Commissioner of Central
Excise, the grounds of cross-objection and the form of verification shall, be signed by the
respondent in accordance with rule 3 of the Central Excise (Appeals) Rules, 2011.
(2) The memorandum of cross-objections shall be filed in quadruplicate accompanied by an
equal number of copies of the order (one of which at least shall be a certified copy)
appealed against.
(3) The memorandum of cross-objections shall be in English (or Hindi) and should set forth,
concisely and under distinct heads, the grounds of the cross-objection without any
argument or narrative and such grounds should be numbered consecutively.
(4) The number and year of appeal or application, as the case may be, as allotted by the
office of the Appellate Tribunal and appearing in the notice of appeal or application, as the
case may be, received by the respondent is to be filled in by the respondent.
-------------------------
*15 digit Permanent Account Number (PAN) - based registration number to be mandatorily
furnished by registered persons
**10 digit Commissionerate/ Division/ Range code (Premises Code) to be mandatorily
furnished by registered persons. This ‘premises code’ is available in the ST-2 Registration
Certificate itself. In case of Centralized registrations the ‘premises code’ of the Main Office
for which Centralized registration has been taken, should be indicated.
*** To be furnished by non-registered persons. Unique Identification (UID) number to be
furnished where PAN is not available.
413
Where the memorandum of cross-objections is filed by the Commissioner of Central Excise/
Service Tax, the above details to be furnished by the Commissioner of Central Excise/
Service Tax in respect of the appellant.
FORM ST-7
[See rules 9 (2) and 9 (2A)]
Form of Appeal to Appellate Tribunal under sub-section (2) of section 86 or sub-
section (2A) of section 86 of the Finance Act, 1994
In the Customs, Central Excise and Service Tax Appellate Tribunal
APPEAL No……………………… of 20…
…………………………………………………………………………………Appellant
Vs
…………………………………………………………………………………Respondent
1.
Assessee Code* Premises Code** PAN or UID***
E-Mail Address Phone No Fax No.
2. The designation and address of the appellant Commissionerate (if the appeal is filed on
the basis of the authorisation given by the Committee of Commissioners under sub- section
(2A) of section 86 of the Act. A copy of the authorisation shall be enclosed)
3. The designation and address of the appellant (if the appeal is filed on the basis of an
order of the Committee of Chief Commissioners under sub-section (2) of section 86 of the
Act. A copy of the order shall be enclosed).
4. Name and address of the respondent.
5. Number and date of the order against which the appeal is filed.
Dated
6. Designation and address of the officer passing the decision or order in respect of which
this appeal is being made.
7. State or Union territory and the Commissionerate in which the decision or order was
made.
- - - - - -
- -
414
8. Date of receipt of the order referred to in (5) above by the Committee of Commissioners
of Central Excise or by the Committee of Chief Commissioners of Central Excise, as the case
may be.
9. Whether the decision or order appealed against involves any question having a relation to
the rate of service tax or to the value of service for the purpose of assessment.
10. Description of service and whether under ‘negative list’.
11. Period of dispute
12 (i) Amount of service tax demand dropped or reduced for the period of dispute
(ii) Amount of interest demand dropped or reduced for the period of dispute
(ii) Amount of refund sanctioned or allowed for the period of dispute
(iv) Whether no or less penalty imposed?
13. Whether any application for stay of the operation of the order appealed against has
been made?
14. Subject matter of dispute in order of priority (please choose two items from the list
below)
[i) Taxability - Sl. No. of Negative List, ii) Classification of Services, iii)
Applicability of Exemption Notification-Notification No., v) Export of services., v)
Import of services., vi) Point of Taxation., vii) CENVAT., viii) Refund., ix)
Valuation., x) Others.]
15. If the application is against an Order-in- Appeal of Commissioner (Appeals), the number
of Orders-in-Original covered by the said Order-in-Appeal.
16. Whether the respondent has also filed an appeal against the order against which this
appeal is made?
17. If answer to serial number 16 above is ‘yes’, furnish the details of the appeal.
18. Whether the applicant wishes to be heard in person?
19. Reliefs claimed in application.
Statement of facts
Grounds of application
Priority 1 Priority 2
415
Signature of the authorised officer,
if any.
Signature of the
appellant
Note.-The Appeal including the statement of facts and the grounds of appeal shall be filed
in quadruplicate accompanied by an equal number of copies of the decision or order (one of
which at least shall be a certified copy) passed by the Commissioner of Central Excise/
Service Tax/ Large Taxpayer Unit and a copy of the order passed by the Committee of
Commissioners under sub-section (2A) of section 86 of the Act or an order passed by the
Committee of Chief Commissioners under sub-section (2) of section 86 of the Act.
-------------------------
*15 digit Permanent Account Number (PAN) - based registration number to be furnished if
respondent is a registered person.
**10 digit Commissionerate/ Division/ Range code (Premises Code) to be mandatorily
furnished for the registered person. This ‘premises code’ is available in the ST-2 Registration
Certificate itself. In case of Centralized registrations the ‘premises code’ of the Main Office
for which Centralized registration has been taken, should be indicated.
*** To be furnished for respondents who are non –registered persons. Unique Identification
(UID) number to be furnished where PAN is not available.”
F. No 390/Misc/46/2011-JC
(Sunil Kumar Sinha)
Director to the Government of India
Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i) vide notification No. 2/94-ST, dated 28th June, 1994 vide number
G.S.R 546(E), dated the 28th June, 1994 and were last amended by notification No 1/2013-
Service Tax, dated the 22nd February, 2013 vide G.S.R. 121(E) dated the 22nd February,
2013.
416
6/2013 - Focus Market Scheme
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No.06 / 2013 - Service Tax
New Delhi, dated the 18th April, 2013
G.S.R..... (E). In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994)(hereinafter referred to as the said
Act), the Central Government, on being satisfied that it is necessary in the public
interest so to do, hereby exempts the taxable services provided or agreed to be
provided against a scrip by a person located in the taxable territory from the whole of
the service tax leviable thereon under section 66B of the said Act.
2. Application. – This notification shall be applicable to the Focus Market Scheme
duty credit scrip issued to an exporter by the Regional Authority in accordance with
paragraph 3.14 of the Foreign Trade Policy.
3. The exemption shall be subject to the following conditions, namely:-
(a) that the scrip is issued against exports to the countries notified by the
Government of India in Appendix 37C of the Handbook of Procedures, Volume I
in terms of entitlement under paragraph 3.14.2 or against exports to
the countries or regions specified in paragraph 3.14.4(e) or paragraph
3.14.5(e) of the Foreign Trade Policy, as the case may be437:
Provided that the following categories of exports (specified in paragraph 3.17.2 and
3.14.3 of the Foreign Trade Policy) shall not be counted for calculation of export
performance or for computation of entitlement under paragraph 3.14.2 of the
Foreign Trade Policy438, namely:-
(i) the Export Oriented Units or Electronic Hardware Technology Parks or
Biotechnology Parks which are availing direct tax benefits or exemption;
(ii) the export of imported goods covered under Para 2.35 of the Foreign Trade
Policy;
(iii) the exports through transhipment, meaning thereby that exports originating in
third country but transhipped through India;
(iv) the deemed exports;
(v) the exports made by Special Economic Zone units or Special Economic Zone
products exported through Domestic Tariff Area units;
437 Not. No. 11/2013-ST dated 13 June 2013
438 Ibid
417
(vi) the items, which are restricted or prohibited for export under Schedule-2 of
Export Policy in ITC (HS);
(vii) supplies made to Special Economic Zone units;
(viii) the service exports;
(ix) diamonds and other precious, semi precious stones;
(x) Gold, silver, platinum and other precious metals in any form, including plain and
studded jewellery;
(xi) Ores and Concentrates, of all types and in all forms;
(xii) Cereals, of all types;
(xiii) the Sugar, of all types and in all forms;
(xiv) Crude or Petroleum oil and Crude or Petroleum based products covered under
ITC HS codes 2709 to 2715, of all types and in all forms; and
(xv) the export of milk and milk products covered under ITC HS Codes 0401 to 0406,
19011001, 19011010, 2105 and 3501;
439(xvi) Export of Meat and Meat Products;
(xvii) Export of Cotton;
(xviii) Export of Cotton Yarn;
(xix) Export which are subject to Minimum Export Price or Export
Duty
(b) that the scrip is registered with the Customs Authority at the port of registration
(hereinafter referred to as the said Customs Authority);
(c) that the holder of the scrip, to whom taxable services are provided or agreed to
be provided shall be located in the taxable territory;
(d) that the holder of the scrip who may either be the person to whom the scrip was
originally issued or a transferee-holder, presents the scrip to the said Customs
Authority along with a letter and an invoice or challan or bill, as the case may be,
issued under rule 4A of the Service Tax Rules, 1994 by the service provider
indicating details of his jurisdictional Central Excise Officer (hereinafter referred to
as the said Officer) and the description, value of the taxable service provided or
agreed to be provided and service tax leviable thereon;
(e) that the said Customs Authority, taking into account the debits already made
under notification number 93/2009-Customs, dated the 11th September, 2009,
notification No.30/2012-Central Excise, dated the 9th July, 2012 and this
exemption, shall debit the service tax leviable, but for this exemption in or on the
reverse of the scrip and also mention the necessary details thereon, updates its
own records and sends written advice of these actions to the said Officer;
(f) that the date of debit of service tax leviable, in the scrip, by the said Customs
Authority shall be taken as the date of payment of service tax;
439 Inserted vide Not. No. 17/2013-ST dated 26.12.2013
418
(g) that in case the service tax leviable as per the point of taxation determined in
terms of the Point of Taxation Rules, 2011 is prior to date of debit or that the rate
of tax determined in terms of rule 4 of the Point of Taxation of Rules, 2011, is in
excess of the rate of service tax mentioned in the invoice, bill or challan, as the
case may be, the holder of the scrip shall pay such interest or short-paid service
tax along with interest, as the case may be;
(h) that the holder of the scrip presents the scrip debited by the said Customs
Authority within thirty days to the said Officer, along with an undertaking
addressed to the said Officer, that in case of any service tax short debited in the
scrip, shall pay such service tax along with applicable interest;
(i) that based on the said written advice and undertaking, the said Officer shall verify
and validate, on the reverse of the scrip, the details of the service tax leviable,
which were debited by the said Customs Authority, and keep a record of payment
of such service tax and interest, if any;
(j) that the service provider retains a copy of the scrip, debited by the said Customs
Authority and verified by the said Officer and duly attested by the holder of the
scrip, in support of the provision of taxable services under this notification; and
(k) that the said holder of the scrip, to whom the taxable services were provided or
agreed to be provided shall be entitled to avail the drawback or CENVAT credit of
the service tax leviable under section 66B of the said Act, against the service tax
debited in the scrip and validated by the said Officer.
440Provided further that for the purpose of calculation of export performance or for
computation of entitlement under paragraph 3.14.4 or paragraph 3.14.5 of the
Foreign Trade Policy, the incremental growth shall be in respect of each exporter
[Importer Exporter Code (IEC) holder] without any scope of combining the export for
group company or for transferring export performance from any other IEC holder
and the incremental growth shall be in terms of freely convertible currency to the
designated markets. The following categories of exports shall not be counted for
calculation of export performance or for computation of entitlement:
(i) Export of imported goods or exports made through trans-shipment;
(ii) Export from SEZ or EOU or EHTP or STPI or BTP or FTWZ;
(iii) Deemed Exports;
(iv) Service Exports;
(v) Third Party exports;
(vi) Diamond, Gold, Silver, Platinum, other precious metal in any form including plain
and studded jewellery and other precious and semi-precious stones;
(vii) Ores and concentrates of all types and in all formations;
440 Inserted vide Not. No. 11/2013-ST dated 13 June 2013
419
(viii) Cereals of all types;
(ix) Sugar of all types and all forms;
(x) Crude or petroleum oil and crude or primary and base products of all types and
all formulations;
(xi) Export of milk and milk products;
(xii) Export performance made by one exporter on behalf of other exporter;
(xiii) Supplies made to SEZ units;
(xiv) Items, export of which requires an export authorisation (except SCOMET);
(xv) Export of Meat and Meat Products;
(xvi) Exports to Singapore, UAE and Hong Kong,
(xvii) SEZ or EOU or EHTP or BTP or FTWZ products exported through
DTA units
(xviii) Cotton (for the paragraph 3.14.5 of the Foreign Trade Policy);
441
(xx) Export which are subject to Minimum Export Price or Export Duty (for
the paragraph 3.14.5 of the Foreign Trade Policy)
4. Any amount due to the Central Government under this notification shall be
recoverable under the provisions of the said Act and the rules made there under.
Explanation - For the purposes of this notification,-
(A) “Foreign Trade Policy” means the Foreign Trade Policy, 2009-14, published by
the Government of India in the Ministry of Commerce and Industry, vide notification
No.01 (RE 2012)/2009-2014, dated the 5th June, 2012, as amended from time to
time.
(B) “Handbook of Procedures Volume 1” means the Handbook of Procedures
Volume 1, 2009-14, published by the Government of India in the Ministry of
Commerce and Industry, vide Public Notice No.01 (RE 2012)/2009-2014, dated the
5th June, 2012, as amended from time to time.
(C) “Point of taxation” shall have the same meaning assigned to it in clause (e) of
rule 2 of the Point of Taxation Rules, 2011.
(D) “Regional Authority” means the authority competent to grant a duty credit scrip
under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992).
441 Omitted vide Not. No. 5/2014-ST dated 24.02.2014
420
(E) “Scrip” means Focus Market Scheme duty credit scrip issued to an exporter by
the Regional Authority in accordance with paragraph 3.14 of the Foreign Trade
Policy;
[F.No.354/55/2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
421
7/2013 - Focus Product Scheme
[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION
3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 07/ 2013 - Service Tax
New Delhi, dated the 18th April, 2013
G.S.R..... (E). In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994)(hereinafter referred to as the said
Act), the Central Government, on being satisfied that it is necessary in the public
interest so to do, hereby exempts the taxable services provided or agreed to be
provided against a scrip by a person located in the taxable territory from the whole of
the service tax leviable thereon under section 66B of the said Act.
2. Application. – This notification shall be applicable to the Focus Product
Scheme duty credit scrip issued to an exporter by the Regional Authority in
accordance with paragraph 3.15 of the Foreign Trade Policy.
3. The exemption shall be subject to the following conditions, namely:-
(a) that the scrip is issued against exports of the products listed by the Government
of India in Appendix 37D of the Handbook of Procedures, Volume I:
Provided that the following categories of exports (specified in paragraph 3.17.2 of
the Foreign Trade Policy) shall not be counted for calculation of export performance
or for computation of entitlement under the Focus Product Scheme, namely:-
(i) the Export Oriented Units or Electronic Hardware Technology Parks or
Biotechnology Parks which are availing direct tax benefits or exemption;
(ii) the export of imported goods covered under Para 2.35 of the Foreign Trade
Policy;
(iii) the exports through transhipment, meaning thereby that exports originating in
third country but transhipped through India;
(iv) the deemed exports;
(v) the exports made by Special Economic Zone units or Special Economic Zone
products exported through Domestic Tariff Area units;
(vi) the items, which are restricted or prohibited for export under Schedule-2 of
Export Policy in ITC (HS);
(b) that the scrip is registered with the Customs Authority at the port of registration
(hereinafter referred to as the said Customs Authority);
(c) that the holder of the scrip, to whom taxable services are provided or agreed to
be provided shall be located in the taxable territory;
(d) that the holder of the scrip who may either be the person to whom the scrip was
originally issued or a transferee-holder, presents the scrip to the said Customs
Authority along with a letter and an invoice or challan or bill, as the case may be,
422
issued under rule 4A of the Service Tax Rules, 1994 by the service provider
indicating details of his jurisdictional Central Excise Officer (hereinafter referred to as
the said Officer) and the description, value of the taxable service provided or agreed
to be provided and service tax leviable thereon;
(e) that the said Customs Authority, taking into account the debits already made
under notification number 92/2009-Customs, dated the 11th September, 2009,
notification No.29/2012-Central Excise, dated the 9th July, 2012 and this exemption,
shall debit the service tax leviable, but for this exemption in or on the reverse of the
scrip and also mention the necessary details thereon, updates its own records and
sends written advice of these actions to the said Officer;
(f) that the date of debit of service tax leviable, in the scrip, by the said Customs
Authority shall be taken as the date of payment of service tax;
(g) that in case the service tax leviable as per the point of taxation determined in
terms of the Point of Taxation Rules, 2011 is prior to date of debit or that the rate of
tax determined in terms of rule 4 of the Point of Taxation of Rules, 2011, is in excess
of the rate of service tax mentioned in the invoice, bill or challan, as the case may
be, the holder of the scrip shall pay such interest or short-paid service tax along with
interest, as the case may be;
(h) that the holder of the scrip presents the scrip debited by the said Customs
Authority within thirty days to the said Officer, along with an undertaking addressed
to the said Officer, that in case of any service tax short debited in the scrip, shall pay
such service tax along with applicable interest;
(i) that based on the said written advice and undertaking, the said Officer shall verify
and validate, on the reverse of the scrip, the details of the service tax leviable, which
were debited by the said Customs Authority, and keep a record of payment of such
service tax and interest, if any;
(j) that the service provider retains a copy of the scrip, debited by the said Customs
Authority and verified by the said Officer and duly attested by the holder of the scrip,
in support of the provision of taxable services under this notification; and
(k) that the said holder of the scrip, to whom the taxable services were provided or
agreed to be provided shall be entitled to avail the drawback or CENVAT credit of
the service tax leviable under section 66B of the said Act, against the service tax
debited in the scrip and validated by the said Officer.
4. Any amount due to the Central Government under this notification shall be
recoverable under the provisions of the said Act and the rules made there under.
Explanation - For the purposes of this notification,-
(A) “Foreign Trade Policy” means the Foreign Trade Policy, 2009-14, published by
the Government of India in the Ministry of Commerce and Industry, vide notification
No.01 (RE 2012)/2009-2014, dated the 5th June, 2012, as amended from time to
time.
(B) “Handbook of Procedures Volume 1” means the Handbook of Procedures
Volume 1, 2009-14, published by the Government of India in the Ministry of
Commerce and Industry, vide Public Notice No.01 (RE 2012)/2009-2014, dated the
5th June, 2012, as amended from time to time.
(C) “Point of taxation” shall have the same meaning assigned to it in clause (e) of
rule 2 of the Point of Taxation Rules, 2011.
423
(D) “Regional Authority” means the authority competent to grant a duty credit scrip
under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992).
(E) “Scrip” means Focus Product Scheme duty credit scrip issued to an exporter by
the Regional Authority in accordance with paragraph 3.15 of the Foreign Trade
Policy.
[F.No.354/55/2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
424
8/2013 - Vishes Krishi and Gram Udyog Yojana
Notification No. 08/ 2013 - Service Tax
New Delhi, dated the 18th April, 2013
G.S.R..... (E). – In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act,1994 (32 of 1994)(hereinafter referred to as the said
Act), the Central Government, on being satisfied that it is necessary in the public
interest so to do, hereby exempts the taxable services provided or agreed to be
provided against a scrip by a person located in the taxable territory, from the whole
of the service tax leviable thereon under section 66B of the said Act.
2. Application. – This notification shall be applicable to the Vishesh Krishi and
Gram Udyog Yojana (Special Agriculture and Village Industry Scheme) duty credit
scrip issued to an exporter by the Regional Authority in accordance with paragraph
3.13.2 of the Foreign Trade Policy.
3. The exemption shall be subject to the following conditions, namely:-
(a) that the scrip is issued against exports of the products listed in Appendix 37A of
the Handbook of Procedures, Volume I:
Provided that the following categories of exports (specified in paragraph
3.17.2 of the Foreign Trade Policy) shall not be counted for calculation of export
performance or for computation of entitlement under the Vishesh Krishi and Gram
Udyog Yojana, namely:-
(i) the Export Oriented Units or Electronic Hardware Technology Parks or
Biotechnology Parks which are availing direct tax benefits or exemption;
(ii) the export of imported goods covered under Para 2.35 of the Foreign Trade
Policy;
(iii) the exports through transhipment, meaning thereby that exports originating in
third country but transhipped through India;
(iv) deemed exports;
(v) the exports made by Special Economic Zone units or Special Economic Zone
products exported through Domestic Tariff Area units;
(vi) the items, which are restricted or prohibited for export under Schedule-2 of
Export Policy in ITC (HS);
(b) that the scrip is registered with the Customs Authority at the port of registration
(hereinafter referred to as the said Customs Authority);
(c) that the holder of the scrip, to whom taxable services are provided or agreed to
be provided shall be located in the taxable territory;
(d) that the holder of the scrip who may either be the person to whom the scrip was
originally issued or a transferee-holder, presents the scrip to the said Customs
Authority along with a letter and an invoice or challan or bill, as the case may be,
issued under rule 4A of the Service Tax Rules, 1994 by the service provider
indicating details of his jurisdictional Central Excise Officer (hereinafter referred to as
the said Officer) and the description, value of the taxable service provided or agreed
to be provided and service tax leviable thereon;
(e) that the said Customs Authority, taking into account the debits already made
under notification number 95/2009-Customs, dated the 11th September, 2009,
notification No.32/2012-Central Excise, dated the 9th July, 2012 and this exemption,
shall debit the service tax leviable, but for this exemption in or on the reverse of the
425
scrip and also mention the necessary details thereon, updates its own records and
sends written advice of these actions to the said Officer;
(f) that the date of debit of service tax leviable, in the scrip, by the said Customs
Authority shall be taken as the date of payment of service tax;
(g) that in case the service tax leviable as per the point of taxation determined in
terms of the Point of Taxation Rules, 2011 is prior to date of debit or that the rate of
tax determined in terms of rule 4 of the Point of Taxation of Rules, 2011, is in excess
of the rate of service tax mentioned in the invoice, bill or challan, as the case may
be, the holder of the scrip shall pay such interest or short-paid service tax along with
interest, as the case may be;
(h) that the holder of the scrip presents the scrip debited by the said Customs
Authority within thirty days to the said Officer, along with an undertaking addressed
to the said Officer, that in case of any service tax short debited in the scrip, shall pay
such service tax along with applicable interest;
(i) that based on the said written advice and undertaking, the said Officer shall verify
and validate, on the reverse of the scrip, the details of the service tax leviable, which
were debited by the said Customs Authority, and keep a record of payment of such
service tax and interest, if any;
(j) that the service provider retains a copy of the scrip, debited by the said Customs
Authority and verified by the said Officer and duly attested by the holder of the scrip,
in support of the provision of taxable services under this notification; and
(k) that the said holder of the scrip, to whom the taxable services were provided or
agreed to be provided shall be entitled to avail the drawback or CENVAT credit of
the service tax leviable under section 66B of the said Act, against the service tax
debited in the scrip and validated by the said Officer.
4. Any amount due to the Central Government under this notification shall be
recoverable under the provisions of the said Act and the rules made there under.
Explanation - For the purposes of this notification,-
(A) “Foreign Trade Policy” means the Foreign Trade Policy, 2009-14, published by
the Government of India in the Ministry of Commerce and Industry, vide notification
No.01 (RE 2012)/2009-2014, dated the 5th June, 2012, as amended from time to
time.
(B) “Handbook of Procedures Volume 1” means the Handbook of Procedures
Volume 1, 2009-14, published by the Government of India in the Ministry of
Commerce and Industry, vide Public Notice No.01 (RE 2012)/2009-2014, dated the
5th June, 2012, as amended from time to time.
(C) “Point of taxation” shall have the same meaning assigned to it in clause (e) of
rule 2 of the Point of Taxation Rules, 2011.
(D) “Regional Authority” means the authority competent to grant a duty credit scrip
under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992).
(E) “Scrip” means Vishesh Krishi and Gram Udyog Yojana (Special Agriculture and
Village Industry Scheme) duty credit scrip issued to an exporter by the Regional
Authority in accordance with paragraph 3.13.2 of the Foreign Trade Policy.
[F.No.354 /55/2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
426
9/2013 - Construction service – Change in abatement
NOTIFICATION NO 9/2013 – ST
Dated: May 8, 2013
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act,
1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public
interest so to do, hereby makes the following further amendment in the notification of the
Government of India in the Ministry of Finance (Department of Revenue), No.26/2012-
Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012,
namely:-
In the said notification, in the TABLE, for serial number 12 and the entries relating thereto,
the following serial number and the entries shall be substituted, namely:-
“12.=Construction of a complex, building, civil
structure or a part thereof, intended for a sale
to a buyer, wholly or partly, except where
entire consideration is received after issuance
of completion certificate by the competent
authority,-
(i) CENVAT credit on inputs
used for providing the
taxable service has not
been taken under the
provisions of the CENVAT
Credit Rules, 2004;
(a) for a residential unit satisfying both the
following conditions, namely:–
25 (ii) The value of land is
included in the amount
charged from the service
receiver.”. =
=(i) the carpet area of the unit is less than
2000 square feet; and
(ii) the amount charged for the unit is less
than rupees one crore;
(b) for other than the (a) above.
30
[F. No. 334 /3/ 2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary, vide
notification No. 26/2012 - Service Tax , dated the 20 th June, 2012, vid e number G.S.R.
468 (E), dated the 20th June, 2012 and was last amended vide notification No.2/2013 –
Service Tax, dated the 1st March, 2013, vide number G.S.R.152(E), dated the 1st March,
2013.
427
10/2013 - Service Tax Voluntary Compliance Encouragement Rules notified
Not. No. 10/2013-ST
(Please refer Service Tax Voluntary Compliance Encouragement Rules,
2013 at appropriate section of this book)
428
11/2013 - Amends Not. No. 6/2013-ST
NOTIFICATION NO. 11/2013-ST
Dated: June 13, 2013
G.S.R. 373(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following amendments in the
notification of the Government of India in the Ministry of Finance (Department of Revenue)
No.6/2013-Service Tax, dated the 18th April, 2013, published in the Gazette of India,
Extraordinary, Part II, section 3, subsection(i), vide number G.S.R. 254(E), dated the 18th
April, 2013, namely:-
In the said notification, in para 3, in condition (a),-
(i) for the word and figure “Volume I”, the words and figures “Volume I in terms of
entitlement under paragraph 3.14.2 or against exports to the countries or regions
specified in paragraph 3.14.4(e) or paragraph 3.14.5(e) of the Foreign Trade Policy, as
the case may be” shall be substituted;
(ii) in the first proviso, for the words “the Focus Market Scheme”, the words and figures
“paragraph 3.14.2 of the Foreign Trade Policy” shall be substituted;
(iii) after the first proviso, the following proviso shall be inserted, namely:-
“Provided further that for the purpose of calculation of export performance or for
computation of entitlement under paragraph 3.14.4 or paragraph 3.14.5 of the Foreign
Trade Policy, the incremental growth shall be in respect of each exporter [Importer
Exporter Code (IEC) holder] without any scope of combining the export for group
company or for transferring export performance from any other IEC holder and the
incremental growth shall be in terms of freely convertible currency to the designated
markets. The following categories of exports shall not be counted for calculation of
export performance or for computation of entitlement:
(i) Export of imported goods or exports made through trans-shipment;
(ii) Export from SEZ or EOU or EHTP or STPI or BTP or FTWZ;
(iii) Deemed Exports;
(iv) Service Exports;
(v) Third Party exports;
(vi) Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and
studded jewellery and other precious and semi-precious stones;
(vii) Ores and concentrates of all types and in all formations;
429
(viii) Cereals of all types;
(ix) Sugar of all types and all forms;
(x) Crude or petroleum oil and crude or primary and base products of all types and all
formulations;
(xi) Export of milk and milk products;
(xii) Export performance made by one exporter on behalf of other exporter;
(xiii) Supplies made to SEZ units;
(xiv) Items, export of which requires an export authorisation (except SCOMET);
(xv) Export of Meat and Meat Products;
(xvi) Exports to Singapore, UAE and Hong Kong,
(xvii) SEZ or EOU or EHTP or BTP or FTWZ products exported through DTA units;’’.
[F. No.605/10/2013-DBK]
(Sanjay Kumar)
Under Secretary to the Government of India
Note- The principal notification No. 6/2013-Service Tax, dated18th April, 2013, was
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide
number G.S.R. 254(E), dated 18th April, 2013.
430
12/2013 - Special Economic Zone (SEZ) Developer / Unit
NOTIFICATION NO. 12/2013-ST.
Dated: July 1, 2013
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act,
1994 (32 of 1994) (hereinafter referred to as the said Act) read with sub-section 3 of
section 95 of Finance (No.2), Act, 2004 (23 of 2004) and sub-section 3 of section 140 of the
Finance Act, 2007 (22 of 2007) and in supersession of the notification of the Government of
India in the Ministry of Finance (Department of Revenue), No. 40/2012-Service Tax, dated
the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), vide number G.S.R. 482 (E), dated the 20th June, 2012, except as respects
things done or omitted to be done before such supersession, the Central Government, on
being satisfied that it is necessary in the public interest so to do, hereby exempts the
services on which service tax is leviable under section 66B of the said Act, received by a
unit located in a Special Economic Zone (hereinafter referred to as SEZ Unit) or Developer
of SEZ ( hereinafter referred to as the Developer) and used for the authorised operation
from the whole of the service tax, education cess, and secondary and higher education cess
leviable thereon.
2. The exemption shall be provided by way of refund of service tax paid on the specified
services received by the SEZ Unit or the Developer and used for the authorised
operations:
Provided that where the specified services received by the SEZ Unit or the Developer are
used exclusively for the authorised operations, the person liable to pay service tax has the
option not to pay the service tax ab initio, subject to the conditions and procedure as stated
below .
3. This exemption shall be given effect to in the following manner:
(I) The SEZ Unit or the Developer shall get an approval by the Approval Committee of the
list of the services as are required for the authorised operations (referred to as the
‘specified services' elsewhere in the notification) on which the SEZ Unit or Developer wish
to claim exemption from service tax.
(II) The ab-initio exemption on the specified services received by the SEZ Unit or the
Developer and used exclusively for the authorised operation shall be allowed subject to
the following procedure and conditions, namely:-
(a) the SEZ Unit or the Developer shall furnish a declaration in Form A-1, verified by the
Specified Officer of the SEZ, along with the list of specified services in terms of
condition (I);
(b) on the basis of declaration made in Form A-1, an authorisation shall be issued by the
jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of
431
Central Excise, as the case may be to the SEZ Unit or the Developer, in Form A-2
within fifteen working days from the date of submission of Form A-1442;
(c) the SEZ Unit or the Developer shall provide a copy of said authorisation to the
provider of specified services. On the basis of the said authorisation, the service
provider shall provide the specified services to the SEZ Unit or the Developer without
payment of service tax;
443(d) the SEZ Unit or the Developer shall furnish to the jurisdictional
Superintendent of Central Excise a quarterly statement, in Form A-
3, furnishing the details of specified services received by it without
payment of service tax, by 30th of the month following the
particular quarter:
Provided that for the quarter of July, 2013 to September, 2013, the said
statement shall be furnished by the 15th of December, 2013.
(e) the SEZ Unit or the Developer shall furnish an undertaking, in Form A-1, that in case
the specified services on which exemption has been claimed are not exclusively used
for authorised operation or were found not to have been used exclusively for
authorised operation, it shall pay to the government an amount that is claimed by way
of exemption from service tax and cesses along with interest as applicable on delayed
payment of service tax under the provisions of the said Act read with the rules made
thereunder.
(III) The refund of service tax on (i) the specified services that are not exclusively used for
authorised operation, or (ii) the specified services on which ab-initio exemption is
admissible but not claimed, shall be allowed subject to the following procedure and
conditions, namely:-
(a) the service tax paid on the specified services that are common to the authorised
operation in an SEZ and the operation in domestic tariff area [DTA unit(s)] shall be
distributed amongst the SEZ Unit or the Developer and the DTA unit (s) in the manner
as prescribed in rule 7 of the Cenvat Credit Rules. For the purpose of distribution, the
turnover of the SEZ Unit or the Developer shall be taken as the turnover of authorised
operation during the relevant period.
(b) the SEZ Unit or the Developer shall be entitled to refund of the service tax paid on (i)
the specified services on which ab-initio exemption is admissible but not claimed, and
(ii) the amount distributed to it in terms of clause (a).
(ba) the authorisation referred to in clause (b) shall be valid from the date of verification of Form A-
1 by the Specified Officer of the SEZ:
Provided that if the Form A-1 is not submitted by the SEZ Unit or the Developer to the Assistant
Commissioner of Central Excise or Deputy Commissioner of Central Excise having jurisdiction,
442 Vide Not. No. 7/2014-ST dated 11 July 2014
443 Amendment vide Not. No. 15/2013-ST dated 21.11.2013
432
as the case may be, within fifteen days of its verification by the Specified Officer of the SEZ, the
authorisation shall be valid from the date on which it is submitted
(c) the SEZ Unit or the Developer shall provide a copy of the said authorisation to the provider of
specified services, where such provider is the person liable to pay service tax and on the basis
of the said authorisation, the service provider may provide specified services to the SEZ Unit
or the Developer without payment of service tax:
Provided that pending issuance of said authorisation, the provider of specified services may, on
the basis of Form A-1, provide such specified services, without payment of service tax, and the
SEZ Unit or the Developer shall provide a copy of authorisation to the service provider
immediately on receipt of such authorisation:
Provided further that if the SEZ Unit or the Developer does not provide a copy of the said
authorisation to the provider of specified services within a period of three months from the date
when such specified services were deemed to have been provided in terms of the Point of
Taxation Rules, 2011, the service provider shall pay service tax on specified services so
provided in terms of the first proviso444
=
(d) the amount indicated in the invoice, bill or, as the case may be, challan, on the basis
of which this refund is being claimed, including the service tax payable thereon shall
have been paid to the person liable to pay the service tax thereon, or as the case may
be, the amount of service tax payable under reverse charge shall have been paid
under the provisions of the said Act;
(e) the claim for refund shall be filed within one year from the end of the month in which
actual payment of service tax was made by such Developer or SEZ Unit to the
registered service provider or such extended period as the Assistant Commissioner of
Central Excise or the Deputy Commissioner of Central Excise, as the case may be,
shall permit;
Explanation.– For the purposes of this notification, a service shall be treated as used exclusively
for the authorised operations if the service is received by the SEZ Unit or the Developer under
an invoice in the name of such Unit or the Developer and the service is used only for
furtherance of authorised operations in the SEZ
(f) the SEZ Unit or the Developer shall submit only one claim of refund under this
notification for every quarter:
Explanation.- For the purposes of this notification “quarter” means a period of three
consecutive months with the first quarter beginning from 1st April of every year, second
quarter from 1st July, third quarter from 1st October and fourth quarter from 1st January of
every year.
444 Vide Not. No. 7/2014-ST dated 11 July 2014
433
(g) the SEZ Unit or the Developer who is not so registered under the provisions referred
to in clause (c), shall, before filing a claim for refund under this notification, make an
application for registration under rule 4 of the Service Tax Rules, 1994.
(h) if there are more than one SEZ Unit registered under a common service tax
registration, a common refund may be filed at the option of the assessee.
(IV) The SEZ Unit or Developer, who intends to avail exemption or refund under this
notification, shall maintain proper account of receipt and use of the specified services, on
which exemption or refund is claimed, for authorised operations in the SEZ.
4. Where any sum of service tax paid on specified services is erroneously refunded for any
reason whatsoever, such service tax refunded shall be recoverable under the provisions
of the said Act and the rules made there under, as if it is recovery of service tax
erroneously refunded;
5. Notwithstanding anything contained in this notification, SEZ Unit or the Developer shall
have the option not to avail of this exemption and instead take CENVAT credit on the
specified services in accordance with the CENVAT Credit Rules, 2004.
6. Words and expressions used in this notification and defined in the Special Economic
Zones Act, 2005 (28 of 2005) or the rules made thereunder, or the said Act, or the rules
made there under shall apply, so far as may be, in relation to refund of service tax under
this notification as they apply in relation to a SEZ.
7. This notification shall come into force on the date of its publication in the Gazette of India
FORM A-1
[Refer condition at S. No. 3 (II)(a)]
Declaration by the SEZ Unit or Developer for availing ab initio exemption under
notification No.12/2013- Service Tax dated 1 st July, 2013
1. Name of the SEZ Unit/Developer:
2. Addresses with telephone and Email:
3. Permanent Account Number (PAN) of the SEZ Unit/Developer:
4. Import and Export Code Number:
5. Jurisdictional Central Excise/Service Tax Division:
6. Service Tax registration number/Service Tax code/ Central Excise registration number:
7. Declaration: I/We hereby declare that-
(i) The information given in this application form is true, correct and complete in every
respect and I am authorised to sign on behalf of the SEZ Unit/Developer;
434
(ii) I/We maintain proper account of specified services, as approved by the Approval
Committee of SEZ, received and used for authorised operations in SEZ; I/we shall make
available such accounts and related records, at all reasonable times, to the jurisdictional
Central Excise officers for inspection or scrutiny.
(iii) I/We shall use/have used specified services for authorised operations in the SEZ.
(iv)I/We declare that we do not own or carry on any business other than the operations in
SEZ [where this item is not applicable, declaration may be submitted after striking out the
inapplicable portion];
OR
I/We declare that we also own/ carry on any business in domestic tariff area as per the
details furnished below:
Table I
S.
No.
Name of the unit
owned in DTA
Output services provided by
DTA Unit
Goods manufactured by
the DTA unit
(v)I/We are aware that the declaration is valid only for the purpose specified in notification
12/2013-Service Tax dated 1st July, 2013 and is subject to fulfillment of conditions.
(vi) I/We intend to claim ab initio exemption on the specified services mentioned in the
following Table:
Table II
Sl.No. Specified service(s) to be
received for the
authorised operation
Details of service provider(s) who provide(s) the
specified service(s), for SEZ authorised
operations
Name and
address
Service Tax Registration No. (Not
applicable if specified service is
covered under full reverse charge)445
(1) (2) (3) (4)
(vii) I/We undertake that in case the services on which exemption has been claimed were
not exclusively used for authorised operation or were found not to have been used
exclusively for authorised operation, we shall pay to the government an amount that is
claimed by way of exemption from service tax along with interest as applicable on delayed
payment of service tax under the provisions of the said Act read with the rules made
thereunder.
445 Vide Not. No. 7/2014-ST dated 11 July 2014
435
Signature and name of authorised person with stamp
Date:
Place:
I have verified the above declaration; it is correct
Signature, date and stamp of the Specified Officer of the SEZ Unit /Developer (Specified
Officer shall retain a copy of the verified declaration, for the purpose of record)
FORM A-2
[Refer condition at S. No. 3 (II)(b)]
Authorisation for procurement of services by a SEZ Unit/Developer for authorised
operations under notification No.12/2013- Service Tax dated 1 st July, 2013
A: Details of SEZ Unit/Developer:
1. Name of the SEZ Unit/Developer:
2. Address of the SEZ Unit/Developer with telephone and email:
3. Permanent Account Number (PAN) of the SEZ Unit/Developer:
4. Import and Export Code Number:
5. Jurisdictional Central Excise/Service Tax Division:
6. Service Tax registration number / Service Tax Code/Central Excise registration number:
B: The details of specified services that the SEZ Unit/Developer is authorised to
procure in terms of declaration furnished by the SEZ Unit/Developer
Sl.No. Specified service(s) to
be received for the
authorised operation
Details of service provider(s) who
provide(s) the specified service(s), for
SEZ authorised operations
Name and
address
Service Tax Registration No. (Not
applicable if specified service is
covered under full reverse
charge)446
(1) (2) (3) (4)
446 Vide Not. No. 7/2014-ST dated 11 July 2014
436
C: The authorisation is valid with effect from ……………. [refer condition at S.No.3(==)(ba)]447
(Signature and the stamp of the jurisdictional Deputy Commissioner of Central Excise
/Assistant Commissioner of Central Excise)
Phone No:
Fax No.:
FORM A-3
[Refer condition at S. No. 3 (II)(d)]
Quarterly return to be furnished by the SEZ Unit/Developer furnishing the details
of services procured without payment of service tax in terms of the notification
No. 12/2013-Service Tax dated 1st July, 2013
For the Quarter: April-June/Jul-Sep/Oct-Dec/Jan-March Year:
[Tick the appropriate quarter]
1. Name of the SEZ Unit/Developer:
2. Address of the SEZ Unit/Developer with telephone and email:
3. Permanent Account Number (PAN) of the SEZ Unit/Developer:
4. Import and Export Code Number:
5. Jurisdictional Central Excise/Service Tax Division:
6. Service Tax Registration Number / Service Tax Code / Central Excise registration
number:
7. We have procured the services as per the details below without payment of service tax in
terms of notification No. 12/2013-Service Tax dated 1 st July, 2013
TABLE
S.
No.
Description
of taxable
service
Name
and
address
of
service
provider
Service Tax
Registration
No. (Not
applicable if
specified
service is
covered
under full
Invoice
No.
Date Value
of
service
Service
tax + cess
amount
claimed
as
exemption
447 Vide Not. No. 7/2014-ST dated 11 July 2014
437
reverse
charge)448
(1) (2) (3) (4) (5) (6) (7) (8)
Signature and name of authorised person with stamp
Date:
Place:
FORM A-4
[Refer condition at S. No. 3 (III)(c)]
Application for claiming refund of service tax paid on specified services used for
authorised operations in SEZ under notification No.12/2013- Service Tax dated 1
st July, 2013
To
The Assistant/Deputy Commissioner of Central Excise/Service Tax _________
Division, _______ Commissionerate
Sir ,
I /We having details as below,-
(i) Name of the SEZ Unit/Developer:
(ii) Address of the SEZ Unit/Developer with telephone and email:
(iii) Address of the registered/Head Office with telephone and email:
(iv) Permanent Account Number (PAN) of the SEZ Unit/Developer:
(v) Import and Export Code Number:
(vi) Jurisdictional Central Excise/Service Tax Division:
(vii) Service Tax Registration Number/Service Tax Code / Central Excise registration number
:
(viii) Information regarding Bank Account (Bank, address of branch, account number) in
which refund amount should be credited/to be deposited:
(ix) Details regarding service tax refund claimed:
448 Vide Not. No. 7/2014-ST dated 11 July 2014
438
claim refund of Rs.................. (Rupees in words) as per the details furnished in the Table I
and Table II below for the period from____________ to______________.
(A) Refund of service tax in respect of service tax paid on specified services exclusively
used for the authorised operations in SEZ, as approved by the Approval Committee of the
_________ SEZ [ Rupees____________] as per the details below
Table-I
S.
No.
Description
of taxable
service
Name
and
address
of
service
provider
STC No. of
service
provider
(Indicate “
self” if
reverse
charge
applies to
the
specified
service)
Invoice*
No.
Date Value
of
service
Service
tax
+cesses
paid
(1) (2) (3) (4) (5) (6) (7) (8)
Total amount claimed as refund
*Certified copies of documents are enclosed.
(B) Refund on respect of service tax paid on specified services other than the services used
exclusively for authorised operation (used partially for the authorised operations of SEZ
Unit/Developer), as approved by the Approval Committee of the _________ SEZ [Rupees
____________].
Table-II
S.
No
.
Descripti
on of
taxable
service
Name
and
addres
s of
servic
e
provid
er
STC
No. of
servic
e
provid
er
Invoic
e* No.
Dat
e
Value
of
servi
ce
Servi
ce
tax +
cess
Amt
Amount
distributed
to the SEZ
Unit/Develo
per out of
the amount
mentioned
at column
No. (8)
Document*
under which
amount
mentioned
at column
(9) was
distributed
to the SEZ
Unit/Develo
per
(Claimed as
refund)
No. Date
(1
)
(2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Total Amount
439
*Certified copies of documents are enclosed
2. (i) The turnover of the authorised operation of the SEZ Unit/Developer in the previous
financial year:____________________;
(ii) Turnover of the DTA operations in the previous financial year:____________
3. I/We Declare that-
(i) information given in this application for refund is true, correct and complete in every
respect and that I am authorised to sign this application for refund of service tax;
(ii) the specified services, as approved by the Approval Committee of SEZ, on which
exemption/refund is claimed are actually used for the authorised operations in SEZ;
(iii) we have paid the service tax amount along with the cesses, being claimed as refund
vide this application, to the service provider;
(iv) refund of service tax has not been claimed or received earlier, on the basis of above
documents/information;
(v) we have not taken any CENVAT credit under the CENVAT Credit Rules, 2004 of the
amount being claimed as refund;
(vi) proper account of receipt and use of the specified services on which exemption/refund
is claimed, for the authorised operations in the SEZ, is maintained and the same shall be
produced to the officer sanctioning refund, on demand.
Signature and name (of proprietor/managing partner/person authorised by
managing director of the SEZ Unit/Developer) with complete address, telephone
and e-mail.
Date: Place:
[F.No. B1/6/ 2013-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
440
13/2013 – Amendment to Not. 25/2012
Notification No.13/2013 - Service Tax
New Delhi, 10th September, 2013
G.S.R....(E)._ In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby makes the
following further amendments in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No.25/2012-Service Tax, dated the
20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), vide G.S.R. 467 (E), dated the 20th June, 2012, namely:-
In the said notification, in the opening paragraph, after entry 9, the following entry
shall be inserted namely:-
“9A. Any services provided by, _
(i) the National Skill Development Corporation set up by the Government of
India;
(ii) a Sector Skill Council approved by the National Skill Development
Corporation;
(iii) an assessment agency approved by the Sector Skill Council or the
National Skill Development Corporation;
(iv) a training partner approved by the National Skill Development Corporation
or the Sector Skill Council
in relation to (a) the National Skill Development Programme implemented by the
National Skill Development Corporation; or (b) a vocational skill development course
under the National Skill Certification and Monetary Reward Scheme; or (c) any other
Scheme implemented by the National Skill Development Corporation.”
[F.No. 356 /17/ 2012-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary, vide notification No.
25/2012 - Service Tax, dated 20th June, 2012, vide G.S.R. 467 (E), dated the 20th June, 2012 and was
last amended by notification No.3/2013- Service Tax, dated the 1st March, 2013 vide G.S.R. 153(E),
dated the 1st March, 2013.
441
1/1/2013 - AD-HOC EXEMPTION
AD-HOC EXEMPTION ORDER NO.1/1/2013
New Delhi, 17th September, 2013
Whereas the recent floods and landslides has caused extensive damage in
the State of Uttarakhand and has adversely affected the life of the common man in
the state. There is a need to provide support to ensure sustenance for the local
population by revival of the hospitality industry;
And whereas taxable services provided in the State of Uttarakhand are
chargeable to service tax;
Now therefore, in exercise of the powers conferred by sub-section (2) of
section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being
satisfied that it is necessary in the public interest so to do and that there are
circumstances of exceptional nature as mentioned above, hereby exempts the
following taxable service provided to any person in the State of Uttarakhand, from
the whole of service tax leviable thereon under section 66B of the Finance Act, 1994
(32 of 1994), namely:-
i. Services by way of renting of a room in a hotel, inn, guest house, club, campsite
or other commercial place meant for residential or lodging purposes;
ii. Services provided in relation to serving of food or beverages by a restaurant,
eating joint or mess
This exemption order is applicable for the above mentioned taxable services
provided during the period 17th September, 2013 to 31st March, 2014.
(Raj Kumar Digvijay)
Under Secretary to the Government of India
442
12/2013 (CE) – Amendment in 3 (5A) of CCR
Notification No. 12 /2013-CE (NT)
New Delhi, the 27th September, 2013
G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise
Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the
Central Government hereby makes the following rules further to amend the CENVAT
Credit Rules, 2004, namely:-
1. (1) These rules may be called the CENVAT Credit (Second Amendment)
Rules, 2013.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. In rule 3 of the CENVAT Credit Rules, 2004, for sub-rule (5A), the following
sub-rule shall be substituted-
“ (5A) (a) If the capital goods, on which CENVAT credit has been taken, are
removed after being used, the manufacturer or provider of output services shall
pay an amount equal to the CENVAT Credit taken on the said capital goods
reduced by the percentage points calculated by straight line method as specified
below for each quarter of a year or part thereof from the date of taking the
CENVAT Credit, namely:-
(i) for computers and computer peripherals:
for each quarter in the first year @ 10%
for each quarter in the second year @ 8%
for each quarter in the third year @ 5%
for each quarter in the fourth and fifth year @ 1%
(ii) for capital goods, other than computers and computer peripherals @ 2.5%
for each quarter:
Provided that if the amount so calculated is less than the amount equal to the
duty leviable on transaction value, the amount to be paid shall be equal to the
duty leviable on transaction value.
(b) If the capital goods are cleared as waste and scrap, the manufacturer shall
pay an amount equal to the duty leviable on transaction value.”
F. No. 267/42/2012-CX.8
(Vikas Kumar)
Director to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub
section (i), dated the 10th September, 2004, vide Notification No. 23/2004 – Central Excise (N.T.) dated the
10th September, 2004, vide number G.S.R. 600(E), dated the 10th September, 2004 and last amended vide
Notification No. 3/2013-Central Excise (N.T.) dated the 1st March, 2013 published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 150(E), dated the1st March, 2013.
443
14/2013 – Catering in canteen
New Delhi, 22nd October, 2013
G.S.R.____ (E).- In exercise of the powers conferred by sub-
section (1) of section 93 of the Finance Act, 1994, (32 of 1994),
the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No.25/2012-Service
Tax, dated the 20th June, 2012, namely:-
In the said notification, in the opening paragraph, after entry
19, the following entry shall be inserted, namely:-
“19A. Services provided in relation to serving of food or
beverages by a canteen maintained in a factory covered under
the Factories Act, 1948 (63 of 1948), having the facility of air-
conditioning or central air-heating at any time during the
year.”.
[F. No. B1/13/2013-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of
India, vide notification No.25/2012-Service Tax, dated the 20th
June, 2012, vide G.S.R.467(E), dated the 20th June, 2012 and was
last amended by notification No.13/2013-Service Tax, dated the
10th September, 2013 vide G.S.R.616(E), dated the 10th
September, 2013.
444
15/ 2013- Amendment in SEZ Not.
New Delhi, the 21st November, 2013
G.S.R…….(E).–In exercise of the powers conferred by sub-
section (1) of section 93 of the Finance Act, 1994 (32 of 1994)
(hereinafter referred to as the said Act) read with sub-section 3 of
section 95 of Finance (No.2), Act, 2004 (23 of 2004) and sub-
section 3 of section 140 of the Finance Act, 2007 (22 of 2007), the
Central Government, on being satisfied that it is necessary in the
public interest so to do, hereby makes the following amendment in
the notification of the Government of India in the Ministry of
Finance (Department of Revenue), No.12/2013-Service Tax, dated
the 1st July,2013, published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), vide number G.S.R. 448 (E),
dated the 1st July, 2013, namely:-
In the said notification, in para 3, in sub para (II), for clause (d),
the following clause shall be substituted, namely:-
“(d) the SEZ Unit or the Developer shall furnish to the jurisdictional
Superintendent of Central Excise a quarterly statement, in Form A-
3, furnishing the details of specified services received by it without
payment of service tax, by 30th of the month following the
particular quarter:
Provided that for the quarter of July, 2013 to September, 2013,
the said statement shall be furnished by the 15th of December,
2013.”.
[F.No. B1/6/ 2013-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of
India, Extraordinary, vide notification No. 12/2013 - Service Tax,
dated the 1st July, 2013, vide number G.S.R. 448 (E), dated the 1st
July, 2013.
445
16 /2013- E-payment (1 lac)
New Delhi, the 22nd November, 2013
1 Agrahayana, 1935 Saka
G.S.R (E).-In exercise of the powers conferred by sub-
section (1) read with sub-section (2) of section 94 of the Finance
Act, 1994 ( 32 of 1994), the Central Government hereby makes
the following rules further to amend the Service Tax Rules, 1994,
namely:-
1. (1) These rules may be called the Service Tax Third (
Amendment) Rules, 2013.
(2) They shall come into force on the 1st day of January, 2014.
2. In the Service Tax Rules, 1994, in rule 6, in sub-rule (2), in the
proviso, for the words “ rupees ten lakh” , the words “ rupees one
lakh” shall be substituted.
F.No: 137/116/2012- Service Tax
(Rajeev Yadav)
Director
Note: The principal notification was published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i) vide
notification No. 2/94-Service Tax, dated the 28th June, 1994 vide
number G.S.R 546(E), dated the 28th June, 1994 and was last
amended by notification No 5/2013- Service Tax, dated the 10th
April, 2013, vide GSR 236 (E) dated the 22nd February, 2013.
446
17/2013-Amendment to FMS Not.
New Delhi, dated the 26th December, 2013.
G.S.R. 792 (E).– In exercise of the powers conferred by sub-
section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the
Central Government, on being satisfied that it is necessary in the public
interest so to do, hereby makes the following further amendments in the
notification of the Government of India in the Ministry of Finance
(Department of Revenue) No. 6/2013-Service Tax, dated the 18th April,
2013 published in the Gazette of India, Extraordinary Part-II, Section 3,
subsection(i), vide number G.S.R. 254 (E), dated 18th April, 2013,
namely:-
In the said notification, in paragraph 3, in condition (a),-
(a) in the first proviso, after serial number (xv) and the entry relating
thereto, the following serial numbers and entries shall be inserted,
namely,-
“(xvi) Export of Meat and Meat Products;
(xvii) Export of Cotton;
(xviii) Export of Cotton Yarn;
(xix) Export which are subject to Minimum Export Price or Export Duty:”;
(b) in the second proviso, after serial number (xvii) and the entry
relating thereto, the following serial numbers and entries shall be
inserted, namely,-
“(xviii) Cotton (for the paragraph 3.14.5 of the Foreign Trade Policy);
(xix) Cotton Yarn (for the paragraph 3.14.5 of the Foreign Trade Policy);
(xx) Export which are subject to Minimum Export Price or Export Duty (for
the paragraph 3.14.5 of the Foreign Trade Policy);”.
[F.No. 605/10/2013-DBK]
(Sanjay Kumar)
Under Secretary to the Government of India
Note: The Principal notification number 6/2013-Service Tax, dated 18th
April, 2013 was published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number G.S.R. 254(E), dated the 18th
April, 2013 and was last amended by notification no. 11/2013 –Service
Tax dated the 13th June, 2013 vide number G.S.R. 373 (E), dated the 13th
June, 2013.
447
01/2014 – Amendment in Mega Not.
New Delhi, 10th January, 2014
G.S.R....(E).- In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby makes the
following further amendments in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No.25/2012-Service Tax, dated the
20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), videG.S.R. 467 (E), dated the 20th June, 2012, namely:-
In the said notification, in the opening paragraph, in entry 11, in item (a), for the
words “district, State or zone”, the words“district, State, zone or Country” shall be
substituted.
[F.No. 354 /21/ 2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India,
Extraordinary,vide notification No. 25/2012 - Service Tax, dated 20th June, 2012,
videG.S.R. 467 (E), dated the 20th June, 2012 and was last amended by notification
No.14/2013- Service Tax, dated the 22nd October, 2013vide G.S.R. 699(E), dated
the 22nd October, 2013.
448
02/2014 – ST – Governmental Authority definition
New Delhi, 30th January, 2014
G.S.R....(E).- In exercise of the powers conferred by sub-section (1) of section 93 of
the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No.25/2012-Service Tax, dated the 20th June, 2012,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
vide G.S.R. 467 (E), dated the 20th June, 2012, namely:-
In the said notification, in the paragraph 2, for clause (s), the following shall be
substituted, namely:–
‘(s) “governmental authority” means an authority or a board or any other body;
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by Government,
with 90% or more participation by way of equity or control, to carry out any function
entrusted to a municipality under article 243W of the Constitution;’.
[F.No. 354 /236/ 2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary,
vide notification No. 25/2012 - Service Tax, dated 20th June, 2012, number G.S.R.
467 (E), dated the 20th June, 2012 and was last amended by notification
No.01/2014- Service Tax, dated the 10th January, 2014 G.S.R. 15(E), dated the 10th
January,2014.
449
03/2014-ST – Forward contract sub-broker exemption
New Delhi, 3rd February, 2014
G.S.R….(E).- Whereas, the Central Government is satisfied that a practice was
generally prevalent regarding levy of service tax (including non-levy thereof), under
section 66 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as ‘the
Finance Act’), on services provided by an authorised person or sub-broker to the
member of a recognised association or a registered association, in relation to a
forward contract, and that such services were liable to service tax under the
Finance Act, which was not being levied according to the said practice during the
period commencing from the 10th day of September 2004 and ending with the 30th
day of June 2012;
Now, therefore, in exercise of the powers conferred by section 11C of the Central
Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, the Central
Government hereby directs that the service tax payable on the services provided by
an authorised person or sub-broker to the member of a recognised association or a
registered association, in relation to a forward contract, shall not be required to be
paid in respect of such taxable service on which the service tax was not being levied
during the aforesaid period in accordance with the said practice.
[F. No. 354/131/2013 – TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
450
04/2014 – ST – Rice and cord blood bank exemption
New Delhi, the 17th February, 2014
G.S.R....(E).- In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby makes the
following further amendments in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No.25/2012-Service Tax, dated the
20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i), vide G.S.R. 467 (E), dated the 20th June, 2012, namely:-
In the said notification, in the opening paragraph,-
(i) after entry 2, the following entry shall be inserted, namely:–
“2A. Services provided by cord blood banks by way of preservation of stem
cells or any other service in relation to such preservation;”;
(ii) after entry 39, the following entry shall be inserted, namely:-
“40. Services by way of loading, unloading, packing, storage or warehousing
of rice.”.
[F.No. 334 /3/ 2014-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary,
vide notification No. 25/2012 - Service Tax, dated the 20th June, 2012, number
G.S.R. 467 (E), dated the 20th June, 2012 and was last amended by notification
No.02/2014 - Service Tax, dated the 30th January, 2014 vide number G.S.R. 71(E),
dated the 30th January,2014.
451
05/2014-ST – FMS Amendment
New Delhi, the 24th February, 2014.
G.S.R. 107 (E).– In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being
satisfied that it is necessary in the public interest so to do, hereby makes the
following further amendments in the notification of the Government of India in the
Ministry of Finance (Department of Revenue) No. 6/2013-Service Tax, dated the 18th
April, 2013 published in the Gazette of India, Extraordinary Part-II, Section 3, sub-
section(i), vide number G.S.R. 254 (E), dated 18th April, 2013, namely:-
In the said notification, in paragraph 3, in condition (a), in the second
proviso, serial number (xix) and the entries relating thereto shall be deleted.
[F.No. 605/10/2013-DBK]
(Sanjay Kumar)
Under Secretary to the Government of India
Note: The principal notification number 6/2013-Service Tax, dated the 18th April,
2013 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i), vide number G.S.R. 254(E), dated the 18th April, 2013 and was last
amended by notification no. 17/2013 –Service Tax, dated the 26th December, 2013
vide number G.S.R. 792 (E), dated the 26th December, 2013.
452
18/2013-C.E. (N.T.)449 –Rescinded later
Dated 31-12-2013
In exercise of the powers conferred by section 37 of the Central Excise Act,
1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central
Government hereby makes the following rules further to amend the Cenvat Credit
Rules, 2004, namely :-
1. (1) These rules may be called the CENVAT Credit (Third Amendment)
Rules, 2013.
(2) They shall come into force with effect from the 1st day of March, 2014.
2. In the Cenvat Credit Rules, 2004,-
(a) in rule 2, in clause (ij),-
(i) the words “a dealer, who purchases the goods directly from” shall be
omitted;
(ii) in sub-clause (i), for the words, “the manufacturer under the cover of
an invoice” the words “a dealer, who purchases the goods directly
from the manufacturer under the cover of an invoice” shall be
substituted;
(iii) for sub-clause (ii), the following sub-clause shall be substituted,
namely :-
“(ii) an importer who sells goods imported by him under the cover of
an invoice on which CENVAT credit may be taken and such invoice
shall include an invoice issued from his depot or the premises of his
consignment agent”;
(b) in rule 9, in sub-rule (1), in clause (a), sub-clauses (ii) and (iii) shall be
omitted.
449 Rescinded vide Not. 7/2014-CE (NT)
453
01/2014-CE (NT) – CENVAT Credit amendment
New Delhi, the 8th January, 2014
18, Pausha, 1935 Saka
G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944
(1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government
hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-
1. (1) These rules may be called the CENVAT Credit (First Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In rule 3 of the CENVAT Credit Rules, 2004, -
(i) the Explanation occurring after the proviso to sub-rule (5B) shall be omitted;
(ii) in sub-rule (5C), after the words “production of said goods”, the words “and the CENVAT
credit taken on input services used in or in relation to the manufacture or production of said
goods” shall be inserted;
(iii) after sub-rule (5C), the following explanations shall be inserted, namely: -
“Explanation 1.- The amount payable under sub-rules (5), (5A), (5B) and (5C), unless
specified otherwise, shall be paid by the manufacturer of goods or the provider of output
service by debiting the CENVAT credit or otherwise on or before the 5th day of the following
month except for the month of March, where such payment shall be made on or before the
31st day of the month of March.
Explanation 2.- If the manufacturer of goods or the provider of output service fails to pay the
amount payable under sub-rules (5), (5A), (5B) and (5C), it shall be recovered, in the manner
as provided in rule 14, for recovery of CENVAT credit wrongly taken and utilised.”
F. No. 267/126/2011-CX.8
(Pankaj Jain)
Under Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section
3, Sub-section (i), dated the 10th September, 2004, vide Notification No. 23/2004 – Central
Excise (N.T.) dated the 10th September, 2004, vide number G.S.R. 600(E), dated the
10thSeptember, 2004 and last amended vide Notification No. 18/2013-Central Excise (N.T.)
dated the 31st December, 2013 published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number G.S.R. 808 (E), dated the 31st December, 2013.
454
02/2014-CE(N.T.) – Amends Rule 12
Dated: January 20, 2014
G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise
Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the
Central Government hereby makes the following rules further to amend the
CENVAT Credit Rules, 2004, namely:-
1. (1) These rules may be called the CENVAT Credit (Second Amendment) Rules,
2014.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. In rule 12 of the CENVAT Credit Rules, 2004, after the brackets, letters, figures
and words, "[GSR 307(E), dated the 25thApril, 2007]" the words, figures, letters
and brackets, "or No.1/2010-Central Excise, dated the 6th February, 2010 [G.S.R.
62(E), dated the 6th February, 2010]" shall be inserted.
[F.No.332/09/2013-TRU]
(Raj Kumar Digvijay)
Under Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), dated the 10th September, 2004, vide
notification No. 23/2004-Central Excise (N.T.) dated the 10th September, 2004,
vide number G.S.R. 600(E), dated the 10thSeptember, 2004 and last amended vide
notification No.1/2014-Central Excise (N.T.) dated the 8th January, 2014
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
vide number G.S.R. 6 (E), dated the 8th January, 2014.
455
05/2014 – CE (NT) – Rule 7 (ISD Amendment)
New Delhi, the 24th February, 2014
G.S.R....(E).- In exercise of the powers conferred by section 37 of the Central
Excise Act,1944 (1 of 1944) and section 94 of the Finance Act,1994 (32 of
1994), the Central Government hereby makes the following rules further to
amend the CENVAT Credit Rules,2004, namely:-
1. (1) These rules may be called the CENVAT Credit (Third Amendment)
Rules, 2014.
(2) They shall come into force on the 1st day of April, 2014.
2. In rule 7 of the CENVAT Credit Rules, 2004, -
(i) in clause (b) for the words, “used in a unit”, the words “used by one or
more units” shall be substituted;
(ii) in clause (c) for the words, “used wholly in a unit”, the words “used
wholly by a unit” shall be substituted;
(iii) for clause (d), the following clause shall be substituted, namely:-
“(d) credit of service tax attributable to service used by more than one
unit shall be distributed pro rata on the basis of the turnover of such
units during the relevant period to the total turnover of all its units,
which are operational in the current year, during the said relevant
period.”;
(iv) for Explanation 3, the following shall be substituted, namely:-
“Explanation 3.- For the purposes of this rule, the ‘relevant period’
shall be,-
(a) If the assessee has turnover in the ‘financial year’ preceding to the
year during which credit is to be distributed for month or quarter, as
the case may be, the said financial year; or
(b) If the assessee does not have turnover for some or all the units in
the preceding financial year, the last quarter for which details of
turnover of all the units are available, previous to the month or quarter
for which credit is to be distributed.”.
[F.No. 354 /246/ 2013-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
456
07/2014 – CE (NT) – Rescinds 18/2013
New Delhi, the 26th February, 2014
7, Phalguna, Saka, 1935
G.S.R. (E). - In exercise of the powers conferred by section 37 of
the Central Excise Act, 1944 (1 of 1944) and section 94 of the
Finance Act, 1994 (32 of 1994), the Central Government hereby
rescinds the notification of the Government of India, Ministry of
Finance (Department of Revenue), No. 18/2013-Central Excise
(NT) dated the 31st December, 2013, published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i) vide
number G.S.R. 808 (E), dated the 31st December, 2013.
F. No. 267/07/2014-CX.8
(Pankaj Jain)
Under Secretary to the Government of India
457
09/2014-CE(N.T.) – CCR Amendment
Dated : February 28, 2014
In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1
of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central
Government hereby makes the following rules further to amend the CENVAT Credit
Rules, 2004, namely : -
1. (1) These rules may be called the CENVAT Credit (Fourth Amendment) Rules,
2014.
(2) They shall come into force from the 1st day of April, 2014.
2. In the CENVAT Credit Rules, 2004, in rule 9, in sub-rule (8), -
(a) after the words "second stage dealer", the words "or a registered importer"
shall be inserted;
(b) in the proviso, after the words "second stage dealer", the words "or registered
importer" shall be inserted.
F. No. 267/07/2014-CX.8
(Pankaj Jain)
Under Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), dated the 10th September, 2004, vide
Notification No. 23/2004 - Central Excise (N.T.) dated the 10th September, 2004,
vide number G.S.R. 600(E), dated the 10th September, 2004 and last amended
vide Notification No. 05/2014 - Central Excise (N.T.) dated the 24th February,
2014 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i), vide number G.S.R. 108 (E), dated the 24th February, 2014
458
11/2014–CE (N.T.) – Quarterly Return
Dated : February 28, 2014
In exercise of the powers conferred by sub-rule (8) of rule 9 of the CENVAT Credit Rules,
2004, and in supersession of the notification of the Government of India, Ministry of Finance
(Department of Revenue), No. 73/2003-Central Excise (NT), dated the 15th September,
2003, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i)
vide number G.S.R. 746(E), dated the 15th September, 2003 except as respects things
done or omitted to be done before such supersession, the Central Board of Excise and
Customs hereby specifies the following return Form for the purposes of the said rule,
namely: –
Quarterly return Form
(for first stage/ second stage dealer or the registered importer)
[See sub-rule (8) of rule 9]
Return for the quarter ending ………………….
1. Name of the first stage dealer/ second stage dealer/ registered importer:
2. Excise registration number :
3. Address :
4. Particulars of invoices issued by the first stage dealer/ second stage dealer/ registered
importer:
S.
No.
Invoice No.
with date For the main item in the document*
Description of
the goods
Central Excise
Tariff Heading Quantity
Quantity
Amount of duty
involved (Rs.)
5. Particulars of the documents based on which the credit is passed on :
S.
No.
Invoice/Bill
of entry No.
with date
Name and address of
the manufacturer/
importer or first stage
dealer (as the case
may be) #
For the main item in the
document*
Description Central
Excise
Amount of
duty
459
of the goods Tariff
Heading
involved
(Rs.)
*Give details with respect to the item with maximum duty covered by the document.
# A registered importer may indicate 'Self' in this column.
Place:
Date :
Signature of the registered person
or the authorized signatory
Name in capital letters
Designation
Seal of the registered dealer/importer.
2. This Notification shall come into force with effect from the 1st day of April, 2014.
F. No. 267/07/2014-CX.8
(Pankaj Jain)
Under Secretary to the Government of India
460
12/2014–CE (NT)- Refund for Partial RCM service providers
Dated : March 03, 2014
In exercise of the powers conferred by rule 5B of the CENVAT Credit Rules, 2004
(hereinafter referred to as the said rules), the Central Board of Excise and Customs hereby
directs that the refund of CENVAT credit shall be allowed to a provider of services notified
under sub-section (2) of section 68 of the Finance Act,1994, subject to the procedures,
safeguards, conditions and limitations, as specified below, namely:-
1. Safeguards, conditions and limitations. –
(a) the refund shall be claimed of unutilised CENVAT credit taken on inputs and input
services during the half year for which refund is claimed, for providing following output
services namely:-
(i) renting of a motor vehicle designed to carry passengers on non abated value, to any
person who is not engaged in a similar business;
(ii) supply of manpower for any purpose or security services; or
(iii) service portion in the execution of a works contract;
(hereinafter the above mentioned services will be termed as partial reverse charge
services).
Explanation:- For the purpose of this notification,-
Unutilised CENVAT credit taken on inputs and input services during the half year for
providing partial reverse charge services = (A) - (B)
Where,
A =
CENVAT credit taken on
inputs and input services
during the half year
(*)
turnover of output service
under partial reverse
charge during the half year
total turnover of goods and
services during the half
year
B = Service tax paid by the service provider for such partial
reverse charge services during the half year;
(b) the refund of unutilised CENVAT credit shall not exceed an amount of service tax liability
paid or payable by the recipient of service with respect to the partial reverse charge
services provided during the period of half year for which refund is claimed;
(c) the amount claimed as refund shall be debited by the claimant from his CENVAT credit
account at the time of making the claim;
461
(d) in case the amount of refund sanctioned is less than the amount of refund claimed, then
the claimant may take back the credit of the difference between the amount claimed and
the amount sanctioned;
(e) the claimant shall submit not more than one claim of refund under this notification for
every half year;
(f) the refund claim shall be filed after filing of service tax return as prescribed under rule 7
of the Service Tax Rules for the period for which refund is claimed;
(g) no refund shall be admissible for the CENVAT credit taken on input or input services
received prior to the 1st day of July,2012;
Explanation. – For the purposes of this notification, half year means a period of six
consecutive months with the first half year beginning from the 1st day of April every year
and second half year from the 1st day of October of every year.
2. Procedure for filing the refund claim. – (a) the provider of output service, shall
submit an application in Form A annexed hereto, along with the documents and enclosures
specified therein, to the jurisdictional Assistant Commissioner of Central Excise or Deputy
Commissioner of Central Excise, as the case may be, before the expiry of one year from the
due date of filing of return for the half year:
Provided that the last date of filing of application in Form A, for the period starting from the
1st day of July,2012 to the 30th day of September,2012, shall be the 30th day of
June,2014;
(b) if more than one return is required to be filed for the half year, then the time limit of
one year shall be calculated from the due date of filing of the return for the later period;
(c) the applicant shall file the refund claim along with copies of the return (s) filed for the
half year for which the refund is claimed;
(d) the Assistant Commissioner or Deputy Commissioner to whom the application for refund
is made may call for any document in case he has reason to believe that information
provided in the refund claim is incorrect or insufficient and further enquiry needs to be
caused before the sanction of refund claim;
(e) at the time of sanctioning the refund claim, the Assistant Commissioner or Deputy
Commissioner shall satisfy himself or herself in respect of the correctness of the refund
claim and that the refund claim is complete in every respect;
Annexure
FORM A
Application for refund of CENVAT Credit under rule 5B of the CENVAT Credit Rules, 2004 for
the half year beginning from 1st of April/1st of October
To,
462
The Assistant Commissioner or Deputy Commissioner of Central Excise,
…………………………..………………………………………………………...
Sir,
I/We have provided taxable services where service recipient is also liable to pay service tax
in terms of sub-section (2) of section 68 of the Finance Act, 1994. Accordingly the refund of
CENVAT Credit in terms of Rule 5B of the CENVAT Credit Rules, 2004 (as per the details
below) may be sanctioned.
(a) Particulars of output services provided and service tax liability of the service provider
and the service recipient during the period of half year for which refund is claimed:-
Sl.No Description of
service
Value of
output
services
provided
during the
half year
Total
Service
tax
liability
during
the half
year
Service tax
liability
discharged by
the provider
of output
service during
the half year
Service tax
liability of
the receiver
of such
output
service
during the
half-year
[Column 3 –
Column 4]
1 2 3 4 5
1
renting of a motor
vehicle designed
to carry
passengers on
non abated value,
to any person who
is not engaged in
a similar business
2
supply of
manpower for any
purpose or
security services
3
service portion in
the execution of a
works contract
Total
(b) Particulars of the amount eligible for refund at the end of the half year:-
Period
beginning
from 1st
April/1st
October
Service tax liability
of the receiver of
such output
service during the
half-year (total of
Amount of unutilised CENVAT
Credit taken on inputs or input
services during the half year for
providing services taxable
under partial reverse charge [as
The eligible
refund amount
(minimum of
column 2 and
3)
463
column 5 of above
table)
calculated in para 1(a) of the
notification].
1 2 3 4
(c), I/we have debited the CENVAT credit account by Rs. ………. for seeking refund.
2. Details of the Bank Account to which the refund amount to be credited: Refund
sanctioned in my favour should be credited in my/ our bank account.
Details furnished below;
(i) Account Number :
(ii) Name of the Bank :
(iii) Branch (with address):
(iv) IFSC Code:
3. Declaration
(i) I/We certify that the aforesaid particulars are correct.
(ii) I/We certify that we satisfy all the conditions that are contained in rule 5B of the
CENVAT Credit Rules, 2004 and in Notification No. 12/2014-CE (NT), dated 3rd March,2014.
(iii) I/We am/are the rightful claimant(s) of the refund of CENVAT Credit in terms of rule 5B,
the same may be allowed in our favour.
(iv) I/we have been authorised as the person to file the refund claim on behalf of the
assessee.
(v) I/We declare that we have not filed or will not file any other claim for refund under rule
5B of CENVAT Credit Rules, 2004, for the same half year to which this claim relates.
Date dd mm yyyy
Signature of the Claimant
(proprietor/karta/partner/any
other authorised person)
……..………...…….=
==
Name of the Claimant
Registration Number
Address of the Claimant
……….…………….
……….…………….
………….………….=
4. Enclosures:
(i) Copy of the ST-3 returns for the half year.
5. Refund Order No.
464
Date d d m m y y y y
The refund claim filed by Shri/Messrs _______________________has been scrutinized with
the relevant Central Excise/ Service Tax records. The said refund claim has been examined
with respect to relevant enclosures and has/has not been found in order. A refund of Rs.
____________________________ (Rupees ____________________) is sanctioned/The
refund claim filed is rejected.
Assistant Commissioner or Deputy Commissioner of Central Excise
Forwarded to-
(i) The Chief Accounts officer, Central Excise, for information and necessary action.
(ii) The Commissioner of Central Excise.
Assistant Commissioner or Deputy Commissioner of Central Excise
________________________________________________________________________
(i) Passed for payment of Rs. ______________ (Rupees ____________) The amount is
adjustable under head “0044 - Service tax - Deduct Refunds”.
(ii) Amount credited to the account of the claimant as per the details below :
Amount refunded
Account Number
Reference No. of transfer
Name of the Bank
Address of the Branch
IFSC code
Date d d m m y y y y
Chief Accounts officer
[F.No. 354 /247/ 2012-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
465
13/2014–CE (N.T.) – Rescinds Not. No. 6/2012CE (NT)
Dated : March 21, 2014
In pursuance of rule 12CCC of the Central Excise Rules, 2002, and rule 12AAA of the
CENVAT Credit Rules, 2004, the Central Board of Excise and Customs hereby rescinds the
notification No. 6/2012- Central Excise (N.T.) dated the 13 th March, 2012 published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 142
(E) dated the 13 th March, 2012, except as respects things done or omitted to be done
before such rescission.
F. No. 267/13/2013-CX.8
466
15/2014 - CE(N.T.) – 12AAA introduced
Dated: March 21, 2014
In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of
1944), the Central Government hereby makes the following rules further to amend the
CENVAT Credit Rules, 2004, namely:-
1. (1) These rules may be called the CENVAT Credit (Fifth Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. (1) For rule 12AAA of the CENVAT Credit Rules, 2004, the following shall be substituted,
namely:-
“12AAA. Power to impose restrictions in certain types of cases.- Notwithstanding anything
contained in these rules, where the Central Government, having regard to the extent of
misuse of CENVAT credit, nature and type of such misuse and such other factors as may be
relevant, is of the opinion that in order to prevent the misuse of the provisions of CENVAT
credit as specified in these rules, it is necessary in the public interest to provide for certain
measures including restrictions on a manufacturer, first stage and second stage dealer or an
exporter, may by notification in the Official Gazette, specify the nature of restrictions
including restrictions on utilization of CENVAT credit and suspension of registration in case
of a dealer and type of facilities to be withdrawn and procedure for issue of such order by
the Chief Commissioner of Central Excise.
Explanation.- For the purposes of this rule, it is hereby clarified that every proposal initiated
in terms of the procedure specified under notification no.05/2012-CE (N.T.) dated the 12th
March, 2012 published in the Gazette of India, Part II, Section 3, Sub-section (i) vide
number G.S.R. 140(E), dated the 12th March, 2012, which is pending, shall be treated as
initiated in terms of the procedure specified under this rule and shall be decided
accordingly.”
F. No. 267/13/2013-CX.8
(Pankaj Jain)
Under Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), dated the 10th September, 2004, vide Notification No.23/2004 –
Central Excise (N.T.) dated the 10th September, 2004, vide number G.S.R. 600(E), dated
the 10th September, 2004 and last amended vide Notification No. 09/2014-Central Excise
(N.T.) dated the 28th February, 2014 published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i), vide number G.S.R. 135 (E), dated the 1st March, 2014.
467
06/2014-ST – Mega Not. amended
Dated : July 11, 2014
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act,
1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public
interest so to do, hereby makes the following further amendments in the notification of the
Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-
Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012,
namely:-
(1) In the said notification, in the opening paragraph,-
(i) after entry 2A, the following entry shall be inserted, namely:-
" 2B. S e rvi ce s p rov i ded b y op er at or s of th e Co mmo n B io-m ed ic al W a ste
T re atm en t Fa ci l ity t o a cl in ic a l e st ab li s hme nt b y w ay o f t r eat me nt o r
di spo s a l o f b io-m ed ic al w ast e or t he p r oce ss es inc id e nt al t he ret o;" ;
(ii) entry 7 shall be omitted;
(iii) for entry 9, the following entry shall be substituted, namely:-
" 9. Se rv ic es p rov id ed,-
(a ) by an e du ca ti on al in st itu tio n to i ts stu de nt s, f acu lt y a n d st aff ;
(b) to an ed uc ati on al in st itu tio n, b y w a y o f,-
(i ) t r an sp ort at io n o f stu de nt s, f acu lt y a nd st a ff ;
(i i) c at er in g, i nc lu di ng a ny m i d-d ay m e al s s ch eme spo n so r ed by t he
Gov er nm ent ;
(i ii ) s ecu r ity o r cl e a ni ng o r ho us e-k ee pi ng s er vic e s pe rfo rm ed i n s uch
edu c ati on a l in st it ut ion ;
468
(iv ) s erv ic es re l ati n g t o ad mi s si on to , o r c on duc t of ex am in at ion by, suc h
in st itut io n ;" ;
(iv) for entry 18, the following entry shall be substituted, namely:-
" 18. S er vic e s by a h ote l, i nn , gu est hou se, c lu b or c am p sit e , b y w h atev e r
na me c a ll ed, f or re s id ent i al o r l odg i ng pu rpo se s, ha vi ng d ecl a re d ta r iff o f a
un it of acco mmo d at ion be lo w on e tho u sa nd ru pe es p er da y o r e qu iv al e nt;" ;
(v) in entry 20, for item (j), the following items shall be substituted, namely:-
" (j ) ch em ic al f er ti l i z er, o rg a nic m a nu r e a nd o i l cak e s;
(k ) cott on , gi nn ed o r b al ed. " ;
(vi) in entry 21,-
(a) for item (e), the following item shall be substituted namely:-
" (e ) c he mi ca l f ert i li z er, o rg a nic m a nu r e a nd o i l cak e s;" ;
(b) after item (h), the following item shall be inserted, namely:-
" (i ) cotto n, g i nn ed or b al ed ." ;
(vii) in entry 23, for item (b), the following item shall be substituted, namely:-
" (b) no n-ai rco nd it i one d con tr act c a rr i ag e oth e r t h an r a di o t ax i , fo r
tr an spo rt at io n of p as s en ge rs , ex cl ud i n g t ou ri sm , c on duc te d t ou r, ch a rte r o r
hi re ; o r" ;
(viii) in entry 25,for item (a) , the following item shall be substituted, namely:-
" (a ) w at er su pp ly, pub l ic h ea lt h, s a nit at ion c on se rv an cy, so li d w a ste
ma n ag eme nt o r sl u m imp ro vem en t a nd u p-g r ad at io n; o r" ;
(ix) in entry 26A, after item (b), the following item shall be inserted, namely:-
469
" (c) li fe m ic ro-in su r an ce p ro duct as ap p rov ed b y t he In su r a nce R eg ul at or y
an d De ve lop me nt A uth or ity , h av ing m a x imu m a mou nt of c ove r of f ift y
tho us an d r up ee s." ;
(x) for the entry 40, the following entries shall be substituted, namely:-
" 40. S er vic e s by wa y o f lo a di ng , un lo ad in g, p ack in g, st or a ge o r
w ar eh ou si ng o f r ice , co tto n, g in ne d or ba le d ;
41. S erv ic es rec e ive d by th e Re se rv e B a nk of I nd i a, f rom o u tsi de In di a i n
re l ati on to m a n age men t o f fo re ig n ex c ha ng e r es er ve s;
42. S erv ic es pro vi d ed by a to ur o pe ra t or to a f or e ig n t ou ri st i n re l at ion t o a
tou r c on duc te d w ho ll y out s id e In di a ." .
(2) In the said notification, in paragraph 2 relating to definitions,-
(a) clause (f) shall be omitted;
(b) after clause (o), the following clause shall be inserted, namely:-
' (oa ) " e duc at io n al i nst it uti on" m e an s a n in st itu ti on p rov id i ng s er vic e s
sp eci fi ed in c l au se ( 1) of s ect io n 66 D of th e F in an ce Act, 19 94 (3 2 of
199 4) ;' ;
(c) after clause (x), the following clause shall be inserted, namely:-
' (x a ) " l ife m ic ro-i ns ur a nce p ro duc t" sh al l h av e th e me a ni n g a ss ig ne d to it in
cl au se ( e) o f r egu l a tio n 2 of th e I ns ur a nce R eg ul at or y a nd Dev el opm en t
Au tho r ity (M ic ro-i n su r anc e) R eg ul at io ns, 2 00 5;' ;
(d) for clause (za), the following clauses shall be substituted, namely:-
' (z a) " r ad io t ax i" m ea ns a t ax i i nc lu di n g a r ad io c a b, by wha tev er na me
ca ll ed , w hic h i s i n t wo-w ay ra di o com m un ic at ion wi th a ce ntr a l con tro l
off ice an d i s en a bl e d f or t r ack ing us in g G lo b al Po s it ion i ng Sys tem (G PS) o r
Ge ne r al P ack et R ad i o S er vi ce ( GP RS) ;
470
(z a a) " re cog ni s ed s port s bo dy" m e an s - ( i) t he In di a n O ly mpi c A ss oc ia tio n,
(i i) S po rts Au tho r it y o f I nd i a, ( ii i) a n a tio na l s po rts f ed e ra tio n re cog n is ed
by th e M i ni st ry of S port s an d Yo uth Af f ai r s of th e Ce nt r al Gov er nm ent , a nd
its af fi l ia ted fed e ra t ion s, ( iv ) n at io na l s port s p rom oti on o rg an i sa ti on s
rec og ni se d by t he M in is tr y of Sp ort s an d Yo uth Aff a i rs of t he C ent r al
Gov er nm ent , (v ) t h e Int e rn at io na l O l y mpi c A ss oc ia tio n o r a fed e ra tio n
rec og ni se d by t he I nte rn at io n al O lym pi c As soc i at io n or (v i ) a fe de r at ion o r
a bo dy wh ich re gu l ate s a sp ort at i nte r na tio n al le ve l a nd i t s af fi l i ate d
fed er at io ns o r bo d i es r eg u lat i ng a sp or t i n I nd i a;' .
[F. No.334/15/2014 -TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note:-The principal notification was published in the Gazette of India, Extraordinary, by
notification No. 25/2012 - Service Tax, dated the 20th June, 2012, v id e number G.S.R. 467
(E), dated the 20th June, 2012 and last amended by notification No.04/2014 - Service Tax,
dated the 17th February, 2014 vide number G.S.R. 91(E), dated the 17th February, 2014.
471
07/2014-ST – SEZ refund simplified
Dated : July 11, 2014
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act,
1994 (32 of 1994), read with sub-section (3) of section 95 of Finance (No.2), Act, 2004 (23
of 2004) and sub-section (3) of section 140 of the Finance Act, 2007 (22 of 2007), the
Central Government, being satisfied that it is necessary in the public interest so to do,
hereby makes the following further amendments in the notification of the Government of
India in the Ministry of Finance (Department of Revenue) No.12/2013-Service Tax, dated
the 1st July,2013, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i) vide number G.S.R. 448 (E), dated the 1st July, 2013, namely:-
In the said notification,-
(i) in paragraph 3, in sub-paragraph (II),-
(A) in clause (b), after the words, letter and figure "in Form A-2", the words, letter and
figure "within fifteen working days from the date of submission of Form A-1" shall be
inserted;
(B) after clause (b), the following clause shall be inserted, namely:-
" (b a) t he aut ho ri s a tio n re fe rr ed to in c la u se ( b) s h al l b e v al i d fro m th e d ate
of ve ri fi ca tio n of F o rm A-1 b y t he S pe ci fi ed O ff ic er o f t he S E Z :
Prov id ed t h at if t he For m A-1 i s not sub mitt ed by th e SE Z U nit o r th e
Dev el op er to t he As si st an t Com mi s sio n er of Ce ntr a l E x ci se o r Dep ut y
Comm i ss io ne r of C e ntr a l E x ci se ha vi ng ju r is dic ti on, as t he ca se m ay b e,
wi th in f ift e en d ay s of it s ve ri fi ca ti on b y t he S pec if i ed O ff i cer o f t he S E Z , t h e
au tho r is at io n sh a l l be v al id f ro m t h e d ate o n w h ich it i s s ubm itt ed ;" ;
(C) for clause (c), the following clause shall be substituted, namely:-
" (c) t he SE Z Un it or th e De ve lop e r sh a l l p rov id e a co py o f t he s a id
au tho r is at io n t o th e p rov id er o f sp ec if ie d se rv ice s, wh er e s uch p ro vi de r i s
the p er so n l i ab le to p ay se rv ice t ax a nd on t he b a s is of t he sa i d
472
au tho r is at io n, th e s erv ic e pr ov id er m ay p rov id e s pec if ie d s erv ic es to t he
SE Z Un it o r t he D ev elo pe r w it ho ut p ay men t o f s erv ic e tax :
Prov id ed t h at pe nd i ng i s su an ce of s ai d au tho r is at io n, th e p rov id er o f
sp eci fi ed se rv ice s ma y, on t he b a si s o f F or m A-1, p rov id e suc h s pec if ie d
se rv ice s, wit ho ut p ay me nt of s er vi ce t ax , and t he SE Z Un i t o r t h e Dev el op er
sh a ll p ro vi de a c op y of aut ho r is at io n t o the s e rvi ce p rov id e r i mm ed ia te ly o n
rec ei pt of suc h a ut h or is at io n:
Prov id ed f u rth er t h at i f t he SE Z Un it o r th e De ve lop e r doe s no t pr ov ide a
copy o f t h e s ai d a ut hor i s ati on to t he p r ovi de r of s pec if i ed se rv ice s w it hi n a
pe rio d of t hr ee mo n ths f ro m t he d at e w he n su ch s pe ci fi ed se rv ice s w er e
dee me d to h av e be e n pr ovi de d i n t e rm s of t he Po i nt of T ax at ion R u le s,
201 1, th e s erv ic e pr ovi de r s ha l l p ay s er vic e t ax o n sp ec if ie d se rv ice s s o
pro vi de d in t er ms o f t he f ir st p rov i so." ;
(D) in clause (e), the following Explanation shall be inserted, namely:-
" E x pl a na ti on.- For t he p ur po se s of th i s not if ic ati on , a s er vi ce s ha l l be
tre at ed as u s ed ex c lu si ve ly f or t he aut hor i se d op er at io ns i f t he s e rvi ce i s
rec ei ve d by th e SE Z U n it or t he D eve lo p er u nd er an inv oi ce in t he n am e of
suc h U n it or t he D e vel op er an d th e se r vic e i s us ed o nl y fo r f urt he r an ce of
au tho r is ed o pe ra ti o ns i n th e SE Z." ;
(ii) in Form A-1, in Table II, for sub-heading of column(4), the following shall be
substituted, namely:-
" Se rvi ce T ax Re gi st ra ti on N o. ( Not ap pl ic ab le if s pec if i ed s erv ic e i s c ov er ed
un de r fu ll rev e rs e c ha rg e)" ;
(iii) in Form A-2,-
(a) in item B, in the Table, for sub-heading of column(4), the following sub-heading shall be
substituted, namely:-
" Se rvi ce T ax Re gi st ra ti on N o. ( Not ap pl ic ab le if s pec if i ed s erv ic e i s c ov er ed
un de r fu ll rev e rs e c ha rg e)" ;
473
(b) after item B, the following item shall be inserted, namely:-
" C: T h e a ut ho ri s ati o n is v a li d w it h ef fec t f rom …… …… ….
[r efe r co nd it ion at S.N o.3 ( II )( ba )]" ;
(iv) in Form A-3, in the TABLE, for column heading of column (4), the following column
heading shall be substituted namely:-
" Se rvi ce T ax Re gi st ra ti on N o. ( Not ap pl ic ab le if s pec if i ed s erv ic e i s c ov er ed
un de r fu ll rev e rs e c ha rg e)" .
[F.No. 334/15/ 2014-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note:-The principal notification was published in the Gazette of India, Extraordinary, by
notification No. 12/2013 - Service Tax, dated the 1st July, 2013, vide number G.S.R. 448
(E), dated the 1st July, 2013 and last amended by notification No. 15/2013-Service Tax,
dated the 21st November, 2013 vide number G.S.R. No.744 (E), dated the 21st November,
2013.
474
08/2014-ST – Abatement amended
Dated : July 11, 2014
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act,
1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public
interest so to do, hereby makes the following further amendments in the notification of the
Government of India in the Ministry of Finance (Department of Revenue), No.26/2012-
Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012,
namely:-
1. In the said notification, in the TABLE,-
(i) against serial number 7, in column (4), after the words "has not been taken", the words
"by the service provider" shall be inserted;
(ii) in serial number 8, for the entry in column (4), the following entry shall be substituted,
namely:-
"CENVAT credit on inputs, capital goods and input services, used for
5