Computation of 'exempted value of services' for 'trading activity' - CBEC should intervene

These are personal views.

It has been observed for last 2 to 3 years that list of “credit not eligible” is going on increasing eg., credit on construction not allowed, credit on jobwork services taken at job workers premises and payment made by principle manufacture not allowed. If one goes to list litigation cases it can be seen that most of the cases are based on Cenvat / service tax credit. Till today after 65 years the Indian BABUS are not able to settle the basic FUNDA of any VALUE ADDED TAX i.e., CREDIT. No wonder if we are not able to settle such a simple issue, one can assume what will be state of other larger issue like corruption cases, criminal offences, land and revenue etc. etc.
One can understand the wish of new PM to have limited litigation as he is trying to set up the different courts to deal with cases of politicians, he need to set up the courts for taxation on similar lines. We on day to day basis see the cases which are uploaded on this site and reading the case of WESTERN COALFIELDS LTD it is surprising that some body is asking for service tax on the amount for which excise duty is paid, god save our country, where we are heading may be he also knows, and if God comes down on the earth to save, no wonder these BABUS may ask service tax from him on account that such services are not covered under negative list, exempted list etc. and receiver will also not be able to avail credit as this will not be in relation to…
After all this the question arises is that if this a real so call “Cen VALUE ADDED TAX”???? because exclusion is increasing than eligibility, as manufacturing in India is rapidly changing, BABUS need to cope up with it. It will take time may is another 65 years because for availement of credit another barrier is already in place i.e., SIX months from the date of invoice.
HEY RAM…

Purushottam Sandye 17/09/2014