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But it appears that some people still have doubts and it is heard that many people plan to collect 14 per cent Service Tax from 1st April 2015. The Nagpur Commissioner recently clarified, It has come to the notice of this office that though the new Service Tax rate of 14% has not yet been given effect, some of the service tax providers have started billing & recovering the amount of Service Tax at the rate of 14% from their customers. This practice is not only completely illegal but amounts to collecting consideration from the general public which is not so required to be collected as Service Tax . The Commissioner has appealed to bring to the notice of the Department, any such instance. It must be noted that 14% Service Tax will be applicable from a date to be notified later - after enactment of the Finance Bill. If somebody charges 14% from 1 st April, don't pay. Nagpur Commissioner - an example for courteous communication : The communication from the Nagpur Customs, Central Excise and Service Tax Commissionerate is an example for courteous correspondence by Government officers. The Commissioner 'appeals' to bring instances of excess collection to his notice. His office looks forward to your co-operation in this regard . And finally he says 'Help us to help you'. This is how public servants should behave. Nagpur Commissionerate Communication. Registration - Netizens frustrated by ACES THIS is just one of the mails we get from frustrated service providers who made many attempts to register with the department but found that the ACES system and the Commissionerate were not inclined to get them registered.
IT seems that the problem is still not solved. We also received a mail from a retired departmental officer, who nowadays wears the robes of a Consultant. He too informed us on similar lines -
Yet another Netizen wrote to us:
Here is the heart-rending agony of another Netizen.
In this case, DDT contacted the ADG, Systems and the concerned Commissioner. The Commissioner was very kind to arrange the registration immediately. Another Commissioner whom we tried to contact was very busy in a meeting and his secretary promised that the Commissioner would call back. We are eagerly waiting for a week for that call! We contacted some Commissioners and some ACES officials, all of whom said that there were no pending registration applications and they asked for specific cases, which we were specifically told by many frustrated applicants not to reveal, for obvious reasons. In his D.O. letter F. No. 201/24/2013-CX.6, dated 03 03 2015 (DDT 2552 - 05 03 2015), the CBEC Advisor Mr. SB Singh told the Chief Commissioners that registration has to be given within two days of application and that pending registrations have to be cleared by 15th March 2015. CCs were required to send a report to the Board on the number of applications pending for more than two days, by 16 th March. They must have all sent their nil reports or not bothered about the advisor's letter. DDT hopes that the ACES/CBEC/Commissionerates get their act together and do the needful - after all 31st March is the last date for payment of taxes too! Central Excise - Digital Records - Board Proposes to issue Notification and Circular - Invites Feedback IN Para 120 of his Budget Speech 2015, the Finance Minister said, the assessees under central excise and service tax will be allowed to issue digitally signed invoices and maintain electronic records. These measures will cut down lot of paper work and red tape. Accordingly, Rules were amended to provide for issue of digitally signed invoices and preservation of records in electronic form. Now the CBEC proposes to issue a Notification and a Circular to specify the conditions, safeguards and procedures for issue of invoices and preserving records in electronic form and authentication of records and invoices by digital signatures. Board wants feedback from the Trade and Departmental Officers. The Finance Minister says - These measures will cut down lot of paper work and red tape. And exactly opposite of that is what the Board proposes. If you want to maintain electronic records:
The Board also proposes to prescribe the procedure for verification of electronic records. The Board draft notification starts with, In exercise of powers conferred by sub rule (5) of rule 10 and sub rule (9) of rule 11 of the Central Excise Rules, 2001, (hereinafter referred to as the said rules).....
CBEC F. No.224/44/2014-CX.6., Dated: March 27 2015 .(with the draft Notification and Circular) Income Tax - Public Grievances - Be careful, PM is watching - Chairperson alerts PCCs THE status of pending public grievances with the Income Tax Department was reviewed by the Prime Ministeron 25 th March through video-conferencing with Revenue Secretary and the Chairperson of CBDT. During the meeting, the PM expressed dissatisfaction about delays in responding to public grievances by IT Officers as well as about the harassment meted out to the taxpayers and officious behaviour of the Income Tax Officers. The Chairperson tells the Principal Chief Commissioners that the PM was assured that redressal of public grievances is one of the priority areas of the Income Tax Department. In view of the above assurance and the fact that the PM will be personally monitoring status of public grievances on a monthly basis, she exhorts the PCCs to ensure that redressal of public grievances must take utmost priority in their work plan. She hopes their efforts in this regard will help her to report a much better position of disposal of public grievances in the next meeting with the PM. Babus should realise that now there is a Prime Minister who is going to keenly watch them - better behave. CBDT Chairperson D.O.F.No.Dir.(Hqrs)/Ch.(DT)/39(2)/2015., Dated:March 26, 2015 Jurisprudentiol - Recent Supreme Court Judgements CENTRAL Excise - Modvat/Cenvat Credit - Clearance of inputs after partial process - Motor vehicle parts like bumpers, grills, etc., on which the process of Electro Deposition Coating, namely, EDC took place (which was in the nature of anti-rust so that the shelf life of the said bumpers, grills, etc., would be generally increased), cleared by reversing the credit taken. Revenue demands duty on the value addition (200 crores): Maruti Suzuki (then known as Maruti Udyog), had cleared inputs/ spares after processing, but duty was only paid equivalent to the MODVAT credit taken on these inputs before processing, and hence according to the intelligence gathered by the Central Excise Department, a substantial increase in the value of these inputs has escaped payment of duty on account of value addition in such inputs after processing. More specifically, what was alleged was that various spare parts relatable to motor vehicles procured by it in the form of bumpers, grills, etc., on which the process of Electro Deposition Coating, namely, EDC took place (which was in the nature of anti-rust so that the shelf life of the bumpers, grills, etc., would be generally increased) have escaped duty on account of the value addition of EDC. A Show Cause Notice was issued on 30.08.2001, demanding a duty of over Rs. 200 crores and was confirmed even by the Tribunal and Maruti is before the Supreme Court. The Supreme Court held: it would be clear that the "input" that is removed from the factory for home consumption is bumpers, grills, etc., being spare parts of motor vehicles procured by the appellant. ED coating which would increase the shelf life of the spare parts and provide anti-rust treatment to the same would not convert these bumpers, etc., into a new commodity known to the market as such merely on account of value addition . And the appeal was allowed and the demand set aside. The legal battle ran for 14 years. Please see Maruti Suzuki Vs Commissioner of Central Excise - 2015-TIOL-30-SC-CX Central Excise - Valuation- Section 4(old) - Value of goods captively consumed - Comparable goods - the proper officer shall make such adjustments as appear to him reasonable, taking into consideration all relevant factors, and in particular, the difference, if any, in the material characteristics of the goods to be assessed and of the comparable goods. Penalty set aside.: The appellant manufactures yarn which is mostly captively consumed in the manufacture of different varieties of fabrics and some yarn is sold in the market. They were paying duty on the captively consumed yarn on the basis of the cost of production of the yarn. For the yarn sold in the market, the duty was paid at the factory gate price. The period covered is 1994 to 1998. The Department felt that this method in calculating the excise duty in respect of the captive consumption was in-appropriate. As per the Department such a duty should have been paid on the same price at which the yarn was sold by the appellant in the market. The Commissioner confirmed a duty demand of nearly Rs. 40 lakhs with equal penalty. The Tribunal confirmed the duty but reduced the penalty to Rs. 5 lakhs. The Supreme Court observed, “ Since the appellant itself is selling same very yarn in the open market, as per the aforesaid provision the said market value would clearly become the value of the comparable goods produced by the assessee/appellant itself. To this extent there cannot be any quarrel.” The Supreme Court added that the assessee is entitled to adjustment of the costs which are incurred in the sale of the same product in the open market as that cannot be included in the cost in respect of yarn which to be captively consumed. So, the Supreme Court directed the adjudicating authority to rework the duty amount. The penalty was set aside. Please see Hindustan Spinning & Weaving Mills Ltd Vs Commissioner of Central Excise - 2015-TIOL-29-SC-CX Banks are open to Public on 31st ON Friday we reported an ASSOCHAM release that March 28 is holiday on account of Ram Navami followed by Sunday. Then the banks open on March 30 for a day for public and would be out of reach for the general public on March 31 and April 1 due to annual closing. A Banker informs us that March 31st is a working day for banks and services are available to the public. We are grateful to the concerned banker. ASSOCHAM may please note. Until Tomorrow with more DDT Have a nice day. Mail your comments to vijaywrite@tiol.in |