ot number, there ought to be no difficulty in getting registration as dealer. We have earned some duty credits under Vishesh Krishi and Gram Udyog Yojana (VKGUY) scheme. We want to use the duty credits for payment of duty on import of capital goods. However, our Customs House Agent says that it is not possible. However, we do not find any restriction in the Policy. Please tell us the correct position. If the VKGUY scrip is issued against exports made in the year 2004-05 or 2005-06, you cannot use the same for duty payment on import of capital goods. However, for the scrip issued against exports during subsequent period, there is no such restriction. You may refer to the Policy provisions relevant to the year of exports and also refer to Policy Circular no. 5 dated April 28, 2008. We are entering into annual maintenance contracts, where we specifically say that materials supplied for maintenance will be charged at actual and we bill also separately for service and materials. Our jurisdictional authorities say that we need not pay service tax on the materials supplied but for computing the aggregate value for availing exemption within the threshold limit of Rs. 10 lacs, we must include the value of materials. Are they correct? According to notification no. 6/2005-S.T. dated 1st March 2005, "aggregate value not exceeding ten lakh rupees means the sum total of first consecutive payments received during a financial year towards the gross amount, as prescribed under section 67 of the said Finance Act, charged by the service provider towards taxable services till the aggregate amount of such payments is equal to Rs 10 lakh but does not include payments received towards such gross amount which are exempt from whole of service tax leviable thereon under section 66 of the said Finance Act or under any other notification." Therefore, you need not include the payments received towards value of goods that are exempted under notification no. 12/2003-S.T. dated June 20, 2003, provided that the other conditions specified in the notifications are complied with. We have a manufacturing unit, where we have enough land. We want to start a trading unit. We want to construct a godown for trading adjacent to the factory and take a excise dealer registration. Is this allowed? The premises for trading and manufacturing must be separate. That is the requirement under the Central Excise law. So long as the two premises are separate and covered by different survey/plot number, there ought to be no difficulty in getting registration as dealer. While filing shipping bill, our Customs House Agent has made a spelling mistake in the description of our export (chemical) product. Now, we are unable to claim DEPB. Is there any remedy? On the basis of description given in your ARE1 and other export documents and on the basis of test reports confirming the correct description of goods, you may seek amendment to the shipping bill under Section 149 of the Customs Act, 1962.
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