We have an order for export to Iran. We are informed that we might have a problem in getting the payment because of political reasons. Can we bill the customers in US$ or Euro?
Iran is a part of the Asian Clearing Union (ACU). From 1st January, 2009, the payments can be settled through ACU $ (equivalent to one US$) accounts or through ACU Euro (equivalent to one Euro) accounts maintained by our banks with banks in Iran. Thus, Indian importers and exporters can legally and effectively get around the US-imposed ban on making payments to Iranian exporters and receiving payments from Iranian importers. You may refer to Reserve Bank’s AP (DIR) Circular no. 35 dated 17th February, 2010, in this regard.
We want to bring in duty-paid materials into an export warehouse set up under Rule 20 of the Central Excise Rules, 2002. Can we do that, as the CBEC Circular No. 581/18/2001-CX dated 29-6-01 prescribes the procedure to be followed for movement of goods to and from an export warehouse, without duty payment only?
CBEC has issued Circular no. 900/20/2009-CX dated 6th October, 2009, amending Para 7.2 of the above Circular dated 29.6.2001. An exporter desirous of bringing duty-paid packing material, required for packaging of other material in the warehouse, may submit a written request to the jurisdictional AC/DC of the Division, who may grant the permission for a period of one year at a time and that the exporter will maintain proper account of such goods and shall not claim any export benefit like rebate of duty paid on the said material.
In a matter that we contested at the CESTAT, we made a pre-deposit of duty and later we have won the case. The department is delaying refund of the pre-deposit. Can we claim interest on the same?
CBEC Circular no. 802/35/2004-CX dated 8th December, 2004, says that in terms of the Hon’ble Supreme Court’s order, such pre-deposit must be returned within three months from the date of the order passed by the Appellate Tribunal/Court or other Final Authority, unless there is a stay on the order of the Final Authority/CESTAT/Court, by a superior Court. It also says that a delay beyond the period of three months will entail an interest liability.
Some Commissionerates are not granting refund of education cess and secondary higher education cess paid on services used for export of goods, on the grounds that the notification no. 102/2007-ST dated 6.10.2007 (now superceded by 17/2009-ST dated 7.7.2009) mentions only service tax. What is the correct position?
Under the said notification service tax is exempted. Therefore, no cess also becomes payable. However, the exemption is given effect through a refund mechanism, which requires the exporters to pay service tax and claim a refund. When the cess is also paid along with service tax, refund of the same should not be denied. Refund is only a mode of granting exemption in that notification.