The notification No. 50/2008-CE (NT) dated 31.12.2008 amended Rule 6(6)(i) of Cenvat Credit Rules, 2004 to include goods cleared to “SEZ developer for their authorised operations” also. What about goods cleared before that date? We have taken Credit but now the excise department is asking us to reverse that and also pay interest. Are we required to do that?
The CBEC Circular no. F. No. 267/52/2008-CX. 8, dated 7-1-2009, says that the amendment is prospective in nature and would apply to supplies cleared from the date of the notification only and it is applicable only for the “authorised operations” of the developer. So, the field formations will insist on Credit reversal and interest. However, in my opinion, clearances of goods under bond/UT1 to SEZ were always covered under Rule 6 (v) of the Rules as “cleared for export under bond in terms of the provisions of the Central Excise Rules, 2002”. The Tribunal might uphold this view but you will have to go through the process to get justice. In this connection, you may refer to CBEC Circular no. 29/2006-Cus. dated 27.12.2006.
We have information that some traders are importing goods from countries with whom we have trade agreements but the goods are not made in those countries. Goods from other countries are getting re-routed and the value addition norms and origin criterion are being manipulated. How to take up such matters?
The Ministry of Finance (Department of Revenue) Circular no. 37/2004-Cus., dated 26.5.2004 (F. No. 467/65/2003-Cus.V/ICD) says that such matters involving policy issues/dispute settlement is handled by the Ministry of Commerce through the Department of Revenue and may accordingly be referred to the Finance Ministry. However, instances of gross under-valuations, violation of terms and agreement, under-invoicing, un-declaration of country of origin etc., may be referred either to the Commissionerate special investigation branch or to the Director General of Revenue Intelligence for appropriate necessary actions.
We had obtained in February 2004 advance licence for deemed exports. We fulfilled part of the obligation by supplying goods to export-oriented units but as we did not get further orders, exported the goods to other countries and fulfilled the obligation. But when approached for redemption, the licensing authority says that there is no provision to regularise such matters as the advance licence for physical exports and advance licence for deemed exports are covered under different customs exemption notifications. Is there any way out?
You may request the licensing authorities to approach the Advance Licensing Committee (ALC) or approach the ALC yourself. If your matter is not regularised by the ALC, you may approach the Grievance Committee, as provided in the Foreign Trade Policy.
We are canvassing advertisements for publications. We earn commissions. Are we covered under ‘advertising agency’ under service tax laws?
Your service will be covered under ‘Business Auxiliary Services’. If you provide any other services like making, preparation, display or exhibition of advertisement, they will be covered under ‘advertising services’.
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