We are a joint venture company rendering construction services in India for infrastructure projects. Can we seek an advance ruling on a matter relating to service tax?
As per Section 96(a) of the Finance Act, 1994, “advance ruling” means the determination, by the Authority, of a question of law or fact specified in the application regarding the liability to pay service tax in relation to a service proposed to be provided by the applicant. In your case, you are already rendering construction services. In the case of McDonald’s India Pvt. Ltd. [2006 (3) STA 245 (AAR), it was held that an applicant who is yet to commence his business activity can, if he so desires, avail the benefit of seeking an advance ruling from the Authority on a question of law or fact regarding his liability to pay service tax in relation to a service proposed to be provided by him.
Obviously, the benefit of seeking an advance ruling from the Authority would not apply in the case of an ongoing business or undertaking which has already commenced business. For similar decisions on the point, you may also refer to the cases of Pfizer Ltd. [2006 (4) STR 84 (AAR)], IJM (India) Infrastructure Ltd. [2007 (5) STR 314 (AAR)] and Orissa Chrome Export and Mining Company Ltd. [2007 (6) STR 74 (AAR)].
We are using ink-jet printers to print the date of manufacture and price on the labels which are affixed to the packages in which we pack our manufactured goods. Can our Central Excise authorities deny Cenvat Credit of the duty paid on the printers on the ground that these are office equipment?
You can take the Credit on the basis of the judgment in the case of Surat Beverages Pvt. Ltd. [2004 (165) ELT 313 (Tri. Mumbai)], which has been followed in the case of Bhushan Steel Strips Ltd. [2005 (179) ELT 243 (Tri. Delhi)].
Can we import construction equipment under the EPCG scheme for construction of our factory?
The DGFT Policy Circular no. 61 dated 13.02.2009 states that this cannot be done, and further says that only service providers can import construction equipment subject to conditions that such equipment is used to provide services as mentioned in Appendix X of Handbook of Procedures Vol. 1, and payments for the services rendered through construction equipment are received in free foreign exchange or in Indian rupees, which are otherwise considered as having being paid for in free foreign exchange by RBI, as per Sub-Para (iv) of Para 9.53 of the Foreign Trade Policy.
In our duty drawback brand rate application, are we required to add the notional value of ‘free of cost’ goods supplied by a foreign buyer?
As per CBEC Circular no. 25/2006 dated 19.09.2006, the notional value of imported materials supplied ‘free of cost’ by the foreign supplier should be added both to the CIF value of inputs and the FOB value of export goods for calculating the value addition.
