CA Final Course Paper 8: Indirect Tax Laws

Bimal J ain
FCA, FCS, LLB, B.Com (Hons)

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120
When I took over in August, 2012, I made a statement that clarity in tax
laws, a stable tax regime, a non-adversarial tax administration, a fair
mechanism for dispute resolution, and an independent judiciary will provide
great assurance. That statement is the underlying theme of my tax
proposals, both on the direct taxes side and on the indirect taxes side.
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An emerging economy must have a tax system that reflects best global
practices. I propose to set up a Tax Administration Reform Commission to
review the application of tax policies and tax laws and submit periodic
reports that can be implemented to strengthen the capacity of our tax
system.
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agricultural operations directly related to production of any
agricultural produce including cultivation, harvesting, threshing, plant
protection or seed testing;
S. 66D(d)(i) modified by deleting the word Seed All
testing w.r.t to agriculture or agricultural produce under
Negative List
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 market
S. 65B(5): Agricultural produce"
Comment: What happen for past period/ Whether Wheat, Rice, etc. covered
under Agricultural Produce
6
Process amounting to manufacture or production of goods" means a
process on which duties of excise are leviable under section 3 of the
Central Excise Act, 1944 or the Medicinal and Toilet Preparations
(Excise Duties) Act, 1955 or any process amounting to manufacture
of alcoholic liquors for human consumption, opium, 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
Definition of Process amounting to manufacture or
production of goods in S. 65B(40) expanded
Comment: Amendment is not made retrospective
7
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; or
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; or
a course run by an institute affiliated to the National Skill
Development Corporation set up by the Government of India;
S. 66D(l) - Pre-School & Higher Secondary/ Certified courses
recognized by Law/ Approved Vocational course - S. 65B (11)
Comment: Courses run by State Council for vocational training not taxable/ No
benefits for past period i.e. prior to 10-5-2013
8
S. 66BA introduced to refer to S. 66 as S. 66B
with effect from 01.07.2012
S. 66B There shall be levied a tax at the
rate of 12% 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
9

Where SCN issued invoking extended period of limitation

By alleging i.e. Fraud/ Collusion/ Willful misstatement/ Suppression
of Facts/ Contravention of any of the provisions of Chapter V of the
Finance Act or rules made thereunder.

Vacated by the Appellate Authorities/ Tribunal/ Court

S. 73(2A) Central Excise Officers allowed to determine the
demand for the Shorter period of 18 months 1/4/2013
Comments:
Reduce litigation to certain extent/ SCN holds good for 18 months.
Similar provisions already exist in Excise Law under Section 11A(9) of the
Central Excise Act, 1944.
10
Earlier provisions: Higher of Rs. 200/- Per day or Rs. 10,000/-
Comment:
Welcome Relief to Assessee having long period of defaults but what
about for past period??
Section 77(1)(a) Penalty 1/4/2013

Any person 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 pay a penalty which may extend to ten thousand rupees or
Rs. 200/- for every day during which such failure continues,
whichever is higher, starting with the first day after the due date, till
the date of actual compliance;
11
Introduced to impose penalty which may extend to Rs. 1 lakh on :
Directors, Manager, Secretary and other officials of the
Company, who 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, for
specified offences:-

Evasion of Service Tax
Issuance of Invoice/ Bill/ Challan without provision of Service/
Violation of Rules
Availment and utilisation of Credit of taxes and duty without
actual receipt of Taxable services or excisable goods/
Violation of Rules
Failure to pay beyond 6 months of Service Tax already
collected
New S. 78A Penalty for Offences by director, etc., of Company -1
st

April, 2013
Comments: Bailable or Non-Bailable Offence
12
(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 (3) sub section (1)
or sub section (3) or sub-section (4) if it is satisfied that there
was sufficient cause for not presenting it within that period.

(1) Any assessee 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
(Appeals) under section 85, may appeal to the Appellate Tribunal
against such order within three months of the date of receipt of
the order.
S. 86 - Appeals to Appellate Tribunal: Condonation of Delay -1/4/2013
Comments: Welcome Change to condone the delay wherever
sufficient cause exists
13
S. 89(1) Offences and Penalties - Whoever commits any of the following offences:-
(a) Evasion of
Service Tax
(b) Availment and
utilisation of Credit
without actual
receipt of Taxable
services or
excisable goods/
Violation of Rules
(c) Maintains false
books of Accounts or
fails to supply
information/ supply
false information
(d) Fails to pay
beyond 6 months,
ST already
collected
(i) Where amount exceeds Rs. 50 Lakhs Imprisonment
up to 3 Years Reasonable cause: 6 Months
(ii) Where amount
exceeds Rs. 50
Lakhs
Imprisonment
up to 7 Years
Reasonable
cause: 6 Months
(iii) For any other offences (<Rs. 50 Lakhs) Imprisonment up to 1 Year
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S. 89 (2): Subsequent Offences and Penalties If any person
convicted of offence punishable 1/4/2013

Under (i) 3 Yrs/ 6 Months or (iii) 1 Yr then he shall be punished for every
subsequent offence with imprisonment for a term up to 3 Yrs.

Under (ii) 7 Yrs/ 6 Months then he shall be punished for every subsequent
offence with imprisonment for a term up to 7 Yrs.
Comments:
More Stringent provisions when Fails to pay beyond 6 Months, Service
Tax already collected
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S. 90(1)
(inserted)
Offence of Failure to pay beyond 6 months - Service Tax
already collected Cognizable/ Non Bailable
S. 90(2)
Notwithstanding anything contained in the Code of Criminal
Procedure, 1973, all other offences, shall be non-cognizable
and Bailable.
Comments: Override Om Prakash vs. UOI [2011 (272) ELT 321 (SC)] wherein it
was held that all offences in central excise or customs are Bailable offences.
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Under S. 89(1)(i) - Evasion of Service Tax/ Availment and
utilisation of Credit without actual receipt of Taxable services
or excisable goods/ Maintains false books of Accounts or fails
to supply information or

Under S.89(1)(ii) - Fails to pay beyond 6 months, ST already
collected
S. 91(1): If Commissioner (CE) has reason to believe that any
person has committed specified offence: (1/4/2013)
Then he may by general or special order, authorise any officer of
CE, not below the rank of Superintendent of Central Excise, to arrest
such person.
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To inform such person of the grounds of arrest and produce
him before a magistrate within 24 hours
S. 91(2) In case of Arrest for any Cognizable or Non-Bailable offence
AC or DC, 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,
1973.
S. 91(3) In case of a Non-Cognizable or Bailable offence
All arrests under this section shall be carried out in
accordance with the provisions of the Code of Criminal
Procedure, 1973 relating to arrests
S. 91(4)
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No service tax shall be levied or collected/ No
refund shall be made of service tax paid, in
respect of taxable services provided by the Indian
Railways during the period prior to October 2012
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Non Filers/ Stop Filers
Any person 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 1
st
day of
March, 2013
Eligible Person who may availed VCES
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Filed Truthful Return but not deposited ST
an inquiry or investigation has been in respect of a service tax
not levied or not paid or short-levied or short-paid initiated by way
of
Search of premises under section 82 of the Chapter; or
Issuance of summons under section 14 of the Central Excise Act,
1944, as made applicable to the Chapter under section 83
thereof; or
Requiring production of accounts, documents or other evidence
under the Chapter or the 40 rules made thereunder;
an audit has been initiated,
Ineligible Person
and such inquiry, investigation or audit is pending as on the 1st day
of March, 2013
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Period for
Declaration
Defaulter require
to make a truthful
declaration of all
his pending tax
dues from
October 1, 2007
to December 31,
2012 on or before
31-12-2013
Pay at least half
of that dues
before December
31, 2013 and
remaining half to
be paid by:

J une 30, 2014 without
interest; or
By December 31,
2014 with interest
from J uly 1, 2014
onwards;
No Refund of
payment made
under VCES
Fails to pay
declared Amount:

To be recovered as
an arrear of land
revenue u/s 87
Can be recovered by
attaching the movable
and immovable
properties of the
declarant
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Immunity from Interest/
Penalty/ other
Proceedings

On compliance with all the
requirements the person will
have complete immunity
Pay Normal liability from
January, 2013 as normally
being paid under the
present law
Failure to make true
declaration
Where CCE has reasons to
believe that declaration
made by a declarant was
substantially false, he may,
for reasons to be recorded
in writing, serve notice within
one yr from the date of
declaration on declarant
requiring him to show
cause why he should not
pay the tax dues not paid
or short-paid.
23

Notification No.

Description

2/2013 Service Tax

Amend Abatement Notification No. 26/2012- Service
Tax, dated 20th J une, 2012

Effective from: 1-3-2013

3/2013 Service Tax

Amend Mega Exemption Notification No. 25/2012-
Service Tax, dated 20th J une, 2012

Effective from 1-4-2013

4/2013 Service Tax

Has Notified the resident public limited company as a
class of persons under sub-clause (iii) of clause (b) of
section 96A of the Finance Act, 1994.

Effective from 1-3-2013
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CONSTRUCTION SERVICE
COMMERCIAL UNITS
70% OF GROSS
AMOUNT CHARGED
RESIDENTIAL UNITS
Abatement available to developers/ builders of complex, building or
civil structure is reduced from existing 75% to 70% in following cases:-
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Comments: Further the same is amended vide Notification No.9/2013-ST
dated 8-05-2013
Abatement in case of Residential Unit
Is the carpet area
<2000 sq. ft. and
the amount
charged <1 Crore
Abatement is 70%
of the gross amount
charged
No
Yes
Abatement is 75% of the gross amount charged
27
Abatement available to developers/ builders of complex,
building or civil structure is reduced from existing 75% to
70% in following cases:-
Residential properties having a carpet area > 2000 sq ft and where
amount charged is > Rs. 1 crore,
Commercial properties.
No Credit of Inputs + Value of Land included
Rule 2A Original Works/ Other than Original Works/ R&M Services
40%/ 60%/ 70%
Comments: Further the same is amended vide Notification
No.9/2013-ST dated 8-05-2013
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Under S. no. 9 - Exemption by way of auxiliary educational services and
renting of immovable property provided by specified educational institutes will
not be available
Services provided to or by an educational institution in respect of education
exempted from service tax, by way of,-
(a) auxiliary educational services; or
(b) renting of immovable property;
auxiliary educational services means any services relating to imparting any skill,
knowledge, education or development of course content or any other knowledge
enhancement activity, whether for the students or the faculty, or any other services which
educational institutions ordinarily carry out themselves but may obtain as outsourced
services from any other person, including services relating to admission to such
institution, conduct of examination, catering for the students under any mid-day meals
scheme sponsored by Government, or transportation of students, faculty or staff of such
institution;
Comment: Specified education still exempted from Service Tax
[Section 66D(l)]
30
Under S. No. 15 - Benefit of exemption in relation to
copyrights for cinematograph films will now be available
only to films exhibited in a cinema hall or theatre
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
of cinematograph films for exhibition in a cinema hall or cinema theatre;
Comment:
Cinematographic films exhibited on TV, Internet, etc. not exempt
31
Under S. No 19 - Exemption will now be available only to non-air-
conditioned or non-centrally air-heated restaurants; the dual requirement
earlier that it should have air-conditioner and license to serve alcohol is
being done away with; - Rule 2C - 40% (No Cenvat on Input)
CERTAIN CLARIFICATIONS -CIRCULAR NO. 173/8/2013-ST DT.07-
10-2013:
Ques In a complex where air conditioned as well as non-air
conditioned restaurants are operational but food is sourced from
the common kitchen, will service tax arise in the non-air
conditioned restaurant?

Reply If restaurants clearly demarcated and separately named.
No ST -- on Service provided in a non air-conditioned or non
centrally air- heated restaurant. Treat it as exempted service.
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CERTAIN CLARIFICATIONS -CIRCULAR NO. 173/8/2013-ST Dated
07-10-2013 (continued):

Ques In a hotel, if services are provided by a specified restaurant in other
areas e.g. swimming pool or an open area attached to the restaurant,
will service tax arise?

Reply Service Tax Applicable.

Ques Is Service Tax leviable on goods sold on MRP basis across the
counter as part of the Bill/ invoice

Reply No Service Tax Applicable, if goods sold on MRP basis (fixed under
the Legal Metrology Act).
,.
33
Under S. No. 20 Earlier exemptions withdrawn of Services 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) foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt
and edible oil, excluding alcoholic beverages; or
(j) chemical fertilizer and oilcakes
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Under S. No. 21 - Services provided by GTA - Enlarged

(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)
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;

Earlier: (a) fruits, vegetables, eggs, milk, food grains or pulses in a goods
carriage; Clause (b) and (c) above

35
Under S. No. 24 - Exemptions for vehicle parking to general public are being
withdrawn
Under S. No 25 - Exemption for repair or maintenance service provided to
Government, Local authority or Governmental authority of aircrafts are being
withdrawn but for vessel, exemption will continue
The definition of charitable activities is being changed by deleting the portion
listed in sub-clause (v) of clause (k). Thus the benefit to charities providing
services for advancement of any other object of general public utility up to Rs.
25 Lakh will not be available. However the threshold exemption will continue to
be available up to Rs 10 lakh.
W.e.f. 1.03.2013 - Benefit of Advance Ruling Authority is being
extended to Resident public limited companies under Section 96A
(b)(iii) of the Finance Act
Public company as defined in section 3(1)(iv) of the Companies Act
1956 and Resident as defined in section 2(42) of the Income Tax
Act,1961
36
37

Notification No.

Description

5/2013-ST dt.
10-04-2013


W.e.f. 1.06.2013, Form of appeal or Memorandum of Cross-
Objections to the Appellate Tribunal has been revised under
Service Tax.
Similarly, vide Notification No. 6/2013-C.E. (N.T.), and Notification
No. 37/2013-Cus. (N.T.) both dt.10-4-2013 Forms have been
revised under Central Excise and Customs respectively, which are
also effective from 1.06.2013.


6/2013-ST / 7/2013- ST
dt. 18-04-2013

Regarding exemption under Focus Market Scheme. 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/ 3.15 of the Foreign Trade Policy.


8/2013 ST
dt.18-04-2013

Regarding Exemption under Vishesh Krishi and Gram Udyog
Yojana (VKGUY)

38

Notification No.

Description

9/2013-ST dt.
8-05-2013

Amends Notification No.26/2012-Service Tax, dated the 20
th
J une,
2012.

10/2013-ST dt.
13-05-2013

Service Tax Voluntary Compliance Encouragement Rules, 2013 were
provided to facilitate successful implementation of VCES

11/2013-ST dt.
13-06-2013

Amendments in the Notification No.6/2013-ST dt. 18-4-2013

12/2013-ST dt.
1-07-2013

Specified Services provided to a unit located in a SEZ or Developer of
SEZ and used for the authorised operation exempt either ab-initio or
by way of refund
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Sr. No. 9A. Any services provided by-
(i) the NSDC set up by the GOI;
(ii) a Sector Skill Council approved by the NSDC;
(iii) an assessment agency approved by the Sector Skill Council or the
NSDC;
(iv) a training partner approved by the NSDC or the Sector Skill Council

in relation to (a) the National Skill Development Programme implemented
by the NSDC; or (b) a vocational skill development course under the
National Skill Certification and Monetary Reward Scheme; or (c) any other
Scheme implemented by the NSDC

Where NSDC stands for National Skill Development Corporation
41
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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.
43

Circular No

Description
168/3/2013-ST dt. 15-04-2013

Tax on service provided by way of erection of pandal or
shamiana

169/4/2013-ST dt. 13-05-2013 and
170/5/2013-ST dt. 8-08-2013

Clarification Regarding VCES
171/6/2013-ST dt. 7-09-2013

Guidelines for arrest and bail in relation to offences
punishable under the Finance Act, 1994
172/7/2013-ST dt.19-09-2013
Clarification Regarding Education services (Auxiliary
Educational Services is explicitly defined )
173/8/2013-ST dt. 07/10/2013 Clarification Regarding Restaurant Service
44
Service includes a declared service [S-65B (44) of the Finance
Act, 1994]

Activity by way of erection of pandal or shamiana is a declared
service, u/s 66E.

For a transaction to be regarded as transfer of right to use
goods, the transfer has to be coupled with possession

Does not fulfill the attributes to qualify as transfer of right to
use goods, as held in BSNL Vs. UOI [2006] 3 STT 245 Honble
Supreme Court.
Whether erection of pandal or shamiana amounts to
transaction involving transfer of right to use goods and hence
deemed sale NO
45
46
Threshold limit for punishment up to 7 years in an offence relating
to evasion of duty
Has been increased from Rs. 30 Lakh to Rs. 50 lakh
Comment: This limit was raised from 1 Lakh to 30 Lakh w.e.f. 01.04.12
47
All offences in Section 9 non-cognizable i.e. Bailable
Only following offences are cognizable/ Non-Bailable:

if duty liability exceeds Rs. 50 Lakhs, and
Offence of the person is that he:
Evades the payment of any duty payable under this Act
Contravenes any of the provision of this Act or the Rules made
there under in relation to credit of any duty allowed to be utilized
towards payment of excise duty on final products.
Comments: This amendment partially overcomes the Supreme Court
judgment in Om Prakash v UOI 2011 (272) ELT 321 (SC) which held
that all offences in Central Excise are non cognizable
48
Comments:
- These powers existed in income tax and in service tax [S. 87(b)].
- Similar provision have been introduced in Customs under S -142(1) (d)
S. 11 is amended to provide:
for recovery of money due to the Central Government from any other
person who owes money to such person other than the defaulter after
giving such other person a notice in writing,
the person to whom such notice has been issued shall be bound to
comply, and
if the person to whom the notice is issued fails to comply, he shall be
deemed to be a defaulter in respect of the amount specified in the
notice.
49
Comments :
This provision is already there in service tax
In case of continuing issues, CE Dept. not required to issue a
SCN each time
A statement containing the details of duty not paid, short levied or
erroneously refunded shall deemed to be service of SCN if any notice
or notices are already being issued under S. 11A (1) or (3) or (4) or (5).
50
Comments:
in case of collusion/ wilful statement/suppression of facts
SCN issued under section 11A(4)
Section 11A amended w.e.f. 8.4.2011 and extended period put
into sub section (4). Earlier it was under sub section (1)
Section 11DDA(1) was not amended to take care of this change
Now, property can be provisionally attached of the persons to whom
notice has been served u/s 11A(4) i.e. fraud, collusion, Suppression,
Wilful etc.
51
Comments:
This seems to be clarificatory
This is so because Advance ruling as presently defined 23A(b)
advance ruling" means the determination, by the Authority, of a
question of law or fact specified in the application regarding the
liability to pay duty in relation to an activity which is proposed to
be undertaken, by the applicant;
Definition of Activity means production or manufacture
of goods and includes any new business of production
or manufacture proposed to be undertaken by the
existing producer or manufacturer, as the case may be.
Comment: Earlier only cenvat credit of excise duty paid or deemed to
have paid on the goods used in or in relation to the manufacture of the
excisable goods was admissible.
52
S.23C(2)(e) admissibility of credit of service tax paid or deemed to have
been paid on input service or excise duty paid or deemed to have paid on
the goods used in or in relation to the manufacture of the excisable goods.
53
Comments: The same change has been brought in Service
tax S 86(7) and Customs Third Proviso to Section 129B(2A)
New proviso is inserted after 2nd proviso of section 35C (2A).
Provided also that where such appeal is not disposed of within the period
specified in the first proviso, the Appellate Tribunal may, on an application made
in this behalf by a party and on being satisfied that the delay in disposing of the
appeal is not attributable to such party, extend the period of stay to such further
period, as it thinks fit, not exceeding 185 days, and in case the appeal is not so
disposed of within the total period of 365 days from the date of order referred to
in the first proviso, the stay order shall, on the expiry of the said period, stand
vacated.
54
Comments:
Similar amendment also made in Customs u/s 129C(4)(c)
Service tax appeal section borrow the powers / procedure from
central excise.
Hence this change also applicable for service tax
S. 35D(3)(b) is being amended to enhance the monetary
limit of the Single Bench of the Tribunal to hear and
dispose of appeals from Rs.10 lakh to Rs.50 lakh.
55
Speed
Post with Proof
of delivery or
courier
approved by
CBEC
Registered post
with
acknowledgment
due
Tendering
(Physical
delivery)
Added by the Finance Act, 2013
Modes of service of decisions/ orders/summons/notices u/s 37(1)(a)
56

Notification No

Description

1/2013 CE (N.T)
dt.1.03.2013
Seeks to amend notification No. 49/2008- CE (N.T.), dt. 24-12-2008, so
as to prescribe MRP based assessment with 35% abatement thereon,
for branded medicaments used in Ayurvedic, Unani, Sidha,
Homeopathic or Bio- Chemic systems and to align the tariff lines relating
to Pressure Cooker with HS 2012 .

2/2013 CE (N.T)
dt.1.03.2013
Seeks to further amend Notification No. 4/2002-CE (N.T.), dt. 1.03.2002
so as to make provision for interest on refund, subject to sub-rule (6),
arising out of an order of final assessment under sub-rule (3) of rule 7 of
the Central Excise Rules, 2002. (Supra)

3/2013 CE (N.T.)
dt.1.03.2013
Seeks to amend Notification No. 23/2004-CE (N.T.), dt.10.9.2004, so as
to provide a mode of recovery of CENVAT credit wrongly taken, under
the CENVAT Credit Rules, 2004.
4/2013 CE (N.T.)
dt.1.03.2013

Seeks to notify the resident public limited company as a class of
persons under the sub-clause (iii) of clause (c) of section 23A of Central
Excise Act, 1944.

57
Rule 7(5) of Central Excise Rules, 2002 has been
amended to provide be interest on refund arising out
of finalization of provisional assessment will be
computed in terms of S 11BB of the Excise Act,1944
i.e., from the date immediately after the expiry of 3
months from the date of receipt of refund application
till the date of refund of such duty.
58

Proviso inserted to sub-rule 5B of Rule 3 of Cenvat Credit Rules, if
the manufacturer of goods or the provider of output service fails to pay
the amount payable
Under sub-rules (5) i.e. inputs or capital goods removed as such,
under sub-rules (5A) i.e. the capital goods are removed after
being used, whether as capital goods or as scrap or waste, and
under sub rules (5B) i.e. input, or capital goods before being put
to use is written off fully or partially,
Then, it shall be recovered, in the manner as provided in Rule 14, for
recovery of CENVAT credit wrongly taken.

59

Notification No

Description

5/2013 CE (N.T)
dt.6.03.2013
Seeks to further amendment in the notification of the Government of
India in the Ministry of Finance (Department of Revenue) number
14/2002-Central Excise (N.T.), dated the 8th March, 2002 .

6/2013 CE (N.T)
dt.10.04.2013
Amends forms for filing appeal in the CESTAT (E.A.-3, E.A.-4, E.A.-5).

7/2013, 8/2013 and
9/2013 CE (N.T.)
dt.23.05.2013

Seeks to allow duty free sale of goods manufactured in India to the
International passengers or members of crew at the DFSs located at
the arrival / departure hall of International Airports and specify the
procedures relating thereto.

10/2013 CE (N.T.)
dt. 2.08.2013

Regarding exemption of Excise duty leviable on the specified goods
affixed with brand name or trade name of another person
60

Notification No .

Description
11/2013 CE (N.T)
dt.2.08.2013
Provides for exemption from registration of premises for affixing lower
ceiling prices on pharmaceutical products to comply with the
notifications issued by the National Pharmaceutical Pricing Authority
under Drugs (Prices Control) Order, 2013

Central Excise - CE
(NT) - F. No.
209/08/2011-CX.6 -
13-08-2013
Corrigendum - Notification No. 08/2013-Central Excise (N.T.), dt.
23.05.2013.
Central Excise - CE
(NT) -
F.No.209/08/2011-
CX.6 - 13-08-2013
Corrigendum - Notification No. 09/2013- Central Excise (N.T.), dt.
23.05.2013.
12/2013 CE (N.T)
dt.27.09.2013
Amendment in Cenvat Credit Rules, 2004
13/2013 CE (N.T)
dt.25.10.2013

Amendment in the Notification No. 20/2006-Central Excise (N.T.)
61

Notification No .

Description
13/2013 CE-dt.
25-03-2013

Seeks to amend the notification No. 64/95 - CE dated 16th March, 1995
to provide exemption to project ASTRAs

14/2013 CE-dt.
18-04-2013
Regarding Exemption under Post Export EPCG Duty Credit Scrip.
15/2013 CE-dt.
8-05-2013
Amends Notifications No. 34/2006-Cx,31/2012-Cx and 33/2012-Cx.
16/2013 CE-dt.
8-05-2013
Seeks to amend notification Nos. 1/2011-Central Excise and 2/2011-
Central Excise both dated the 1st March, 2011 and 12/2012-Central
Excise, dated 17th March, 2012
17/2013 CE-dt.
16-05-2013
Seeks to amends Notifications No. 34/2006-CE, 29/2012-CE, 30/2012-
CE,32/2012-CE and 33/2012-CE.
62

Notification No

Description
18/2013 and
19/2013 CE
dt.23.05.2013
Seeks to allow duty free sale of goods manufactured in India to the
International passengers or members of crew at the DFSs located at the
arrival / departure hall of International Airports and specify the
procedures relating thereto.
20/2013 CE
dt.05.06.2013
Amends Notification No. 12/2012-Central Excise, dated the 17th March,
2012
21/2013 CE-dt.
13-06-2013
Amends Notification No. 30/2012-Central Excise dated the 9th J uly,
2012
22/2013 CE-dt.
29-07-2013
Seeks to exempt central excise duty on the scheduled formulations as
defined under the Drugs Price Control Order (DPCO), 2013 and which
are subjected to re-printing, re-labeling, re-packing or stickering, in
pursuance of the provisions contained in the said Order, in a premises
which is not registered under the Central Excise Act, 1944 or the rules
made thereunder
23/2013 CE-dt.
31-07-2013
Amendment in Notification Nos. 1/2011-Central Excise, dated the 1st
March, 2011 and 12/2012-Central Excise, dated the 17th March, 2012
63

Notification No

Description
24/2013 CE
dt.2.08.2013
Seeks to amends Notifications No.12/2012-Central Excise, dated the
17th March, 2012
25/2013 CE
dt.13.08.2013
Seeks to amends Notifications No.12/2012-Central Excise, dated the
17th March, 2012
26/2013 CE-dt.
30-08-2013
Amends Notification No. 64/95-CE
27/2013 CE-dt.
30-08-2013
Amends in the notification of the Government of India, in the Ministry of
Finance (Department of Revenue), No. 12/2012-Central Excise, dated
the 17th March, 2012
28/2013 CE-dt.
30-08-2013
Seeks to amend Notification No 10/1997 - CE, dated 01.03.1997
64

Circular No

Description
968/02/2013-CX - 01-04-2013

Clarification regarding admissibility of exemption under
area-based Notifications No. 49/2003-Central Excise and
50/2003-Central Excise, both dated 10.06.2003 reg.
969/03/2013-CX - 11-04-2013 Amendment to CESTAT Appeal Forms
970/04/2013-CX - 23-05-2013

Procedure governing the movement of excisable
indigenous goods to the Warehouses or retail outlets of
Duty Free Shops appointed or licensed under the
Customs Act, 1962 Regarding
971/05/2013-CX - 29-05-2013

Regarding writing off of arrears of Central Excise duty,
Customs duty and Service Tax - Constitution of
Committees to advise the authority for writing off of
arrears
65

Circular No

Description
F.No.390/Misc./163/2010-J C
- 03-06-2013

Reduction of Government litigation - providing monetary
limits for filing appeals by the Department before
CESTAT/High Courts and Supreme court Regarding

972/06/2013.CX - 24-07-2013

Applicable excise duty on Sedan cars like Maruti SX4,
Honda Civic, Toyota Corolla Altis under notification No.
12/2013-CE dated 1st March, 2013 - regarding
973/07/2013-CX - 04-09-2013

Regarding reversal of amount under Rule 6(3) the CCR,
2004 on domestic clearances under Notification
Nos.29/2012-CE, 30/2012-CE, 31/2012-CE, 32/2012-CE
and 33/2012-CE all dated 9th J uly, 2012
974/08/2013-CX - 17-09-2013 Regarding Arrest and Bail under Central Excise Act, 1944
66
67
Therefore, Central Government is empowered to prohibit importation or
exportation of goods for protection designs and geographical indications
S-11(1) empowers Central Government to prohibit either absolutely or
conditionally, import or export of specified goods for any purpose
enumerated in S-11(2)
Clause (n) of S-11(2) has been amended to include designs and
geographical indications also.

S. 11(2)(n) the protection of patents, trade marks copyrights, designs and
geographical indications;
No Refund And Recovery If the Amount of Customs
Duty, is < Rs. 100/-
68
Prior to 10.05.2013
No minimum limit for refund
of customs duty exist
On or After 10.05.2013
Third Proviso to S-27(1)
inserted
REFUND

Prior to 10.05.2013
No minimum limit for
recovery of customs duty
exist

On or After 10.05.2013
Third Proviso to S-28(1)
inserted
RECOVERY
Provisional attachment of property may be ordered in case of non
payment of duty on account of fraud, suppression of facts etc. as
well.

Section 28 BA(1) Where, during the pendency of any
proceeding under section 28 or section 28AAA or section 28B,
the proper 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
Customs, by order in writing, attach provisionally any property
belonging to the person on whom notice is served under sub-
section (1) or sub-section (4) of section 28 or sub-section (3) of
section 28AAA or sub-section (2) of section 28B, as the case
may be, in accordance with the rules made in this behalf under
section 142.
69
Scope of Advance Ruling widened

Section 28E(1)(a) activity means import or export and includes any new
business of import or export proposed to be undertaken by the existing
importer or exporter, as the case may be

CBEC to be empowered to permit the landing of vessels and aircrafts at any
place other than customs port or customs airport.
Section 29(1)The person-in-charge of a vessel or an aircraft entering India
from any place outside India shall not cause or permit the vessel or aircraft
to call or land -
a) for the first time after arrival in India; or
b) at any time while it is carrying passengers or cargo brought in that
vessel or aircraft;
at any place other than a customs port or a customs airport, as the case may
be unless permitted by the Board


70
Duty free allowance in respect of jewellery for an Indian passenger who has been
residing abroad for over one year or a person who is transferring his residence to
India raised from Rs.10,000 to Rs.50,000 in case of a gentleman passenger and from
Rs.20,000 to Rs.1,00,000 in case of a lady passenger.
Import/export general manifest to be filed electronically. However, Commissioner of
Customs may, in cases where it is not feasible to electronically present the same,
allow the same to be delivered in any other manner. [S-30(1) and 41(1)]
Interest free period for payment of import duty is reduced from five days to two
days.[S- 47(2)]
Thirty days time period for storage of imported goods, pending clearance, in a public
or private warehouse has been introduced. However, Commissioner of Customs may
extend the period of storage for further period not exceeding thirty days at a time. [S-
49]

71
72
Offences under the Customs Act, 1962
Non- Bailable Offences
Prohibited Goods
Evasion/ attempted evasion of duty > 50
Lakhs
Import/ Export of any goods improperly declared and the market price
> Rs. 1 Crore
Fraudulently availing of drawback or any exemption from duty, if amount
of drawback/ exemption fom duty exceed ` 50 Lakhs
Bailable Offences
All other offences under the
Customs Act
Any warehoused goods may be
exported to a place outside India
without payment of import duty if a
shipping bill or a bill of export in
prescribed form or label or declaration
accompanying the goods as referred to
in section 82 (postal export documents)
has been presented in respect of such
goods. [S 69(1)(a)]
The threshold limit for punishment in an
offence relating to evasion of duty or
fraudulent availment of drawback or
exemption from duty in connection with
export of goods is increased from Rs.30
lakhs to Rs.50 lakhs. [S 135(1)(i)]
Provision of S-143A providing option for
duty deferment for adjustment of duty
payable against the drawback has been
omitted.
Proper officer may, on the entry or
clearance of any goods or at any time
while such goods are being passed
through the customs area, take samples
of such goods for examination or
testing, or for ascertaining the value. No
duty shall be chargeable such sample.
[4-144]
73
Customs house agents to be
known as customs brokers.
Person who has committed
offence under Finance Act is
also disqualified to act as
authorized representative [S-
146A (4)(b)]
S-146A of the Customs Act has
been amended to include
competent authority under
Finance Act to determine
eligibility of a person to be
authorised representative on the
basis of his solvency status.
S-147(3) of the Customs Act has
been amended to enhance the
liability of agents of the owner,
importer or exporter of any
goods.

74
75
Consensus emerging between Central & State Govts
Place Constitutional Amendment Bill before Parliament during
Budget session
Allocated Rs. 9,000 Cr towards CST compensation to States
Work upon GST Rules & Legislation
No clarity on date of GST implementation
76
Follow your passion,
be prepared to work hard, sacrifice
and above all,
don't let anyone limit your dreams
Donovan Bailey