We submitted our application for rebate of excise duty paid on exports within the one-year time limit to our jurisdictional excise authorities. They returned our application as the correct authority is the Maritime Commissioner, but by the time we submitted the application to the correct authority, the one-year time limit had passed. They have rejected our claim on the grounds of limitation. Is there any way to get this refund?
You may appeal against the rejection order on the basis of CCE, Ahmedabad vs AIA Engineering Pvt. Ltd. [2009 (248) ELT 826 (Tri. Ahmd.)]. In that case, the Tribunal held that the original refund claim was filed within time before the wrong authority; as such, subsequent re-filing of the refund claim beyond the limitation period should not be held against the assessee. The department's appeal against the decision was dismissed by the Gujarat High Court [2011 (121) STR 367 (Guj.)], holding that since the original application for refund was filed within time, though before the wrong authority, it cannot be said that the said application was barred by limitation. These decisions were followed in Rathi Steel & Power Ltd. vs CCE, Ghaziabad [2014 (308) ELT 163 (Tri. Del.)].
I want to know the different methods (banking and non-banking) through which I can pay commission to my foreign agents. Also, will there be any service tax liability on the commission paid to foreign agents?
As per RBI Master Circular on export of goods and services, AD Category-I banks may allow payment of commission, either by a remittance or by deduction from the invoice value, on an application submitted by the exporter. The remittance on agency commission may be allowed subject to conditions that the amount of commission has been declared on EDF/SDF/SOFTEX form and accepted by the Customs authorities or ministry of information technology, Government of India/EPZ authorities, as the case may be.
In cases where the commission has not been declared on EDF/SDF/SOFTEX form, remittance may be allowed after satisfying the reasons adduced by the exporter for not declaring commission on Export Declaration Form, provided a valid agreement/written understanding between the exporters and/or beneficiary for payment of commission exists. So, you may approach your bankers through whom payment for exports was received. The service tax on export commission is exempted subject to certain limits and conditions through notification no. 42/2012-ST dated June 29, 2012.
Under the EPCG scheme, how long are we required to maintain annual average exports?
You have to maintain the annual average exports till the export obligation is fulfilled.
As a service receiver, we are liable to discharge the tax liability, in full or in part, under the reverse charge mechanism. Can we utilise the Cenvat Credit balances available against purchase of capital goods for discharging the said liability?
As per explanation to Rule 3(4) of Cenvat Credit Rules, 2004, 'Cenvat credit cannot be used for payment of service tax in respect of services where the person liable to pay tax is the service recipient.'
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