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Introduction

Finance Minister announced for imposition of Clean Energy Cess as a duty of excise on coal, lignite and peat which come into force from 1^st July, 2010. Notification No.1/2010-CE (Clean Energy Cess) dated 22.06.2010 was issued for this purpose. Clean energy cess would be imposed on coal produced in India or when imported into India from other countries. This is in line with the principle of "polluter pays", which are the basic guiding criteria for pollution management.

Article 265 states that no tax shall be levied or collected without the authority of law. Further article 246 governs the subject matter of the laws made by the parliament and by the legislature of states. The matters are listed in the seventh schedule to the Constitution. The seventh schedule is classified into three lists:

1. List I: This list sets out the matters in which the parliament has an exclusive right to  make laws 
2. List II: This list enumerates the matters in respect of...

Job work is one of the important aspects that a manufacturer registered under Central Excise should be familiar with not just because it enables him to plan his processes in order to optimise the benefits available under the Central Excise Act, 1944 but would also enable him to cut costs on his manufacturing. This is so as the processes which pose problems or which are not cost-effective at his end [ due to economies of scale] can be sub-contracted or delegated to another manufacturer or...

Service providers / manufacturers avail various input services such as catering services, travelling services, insurance etc., which would be consumed by the employees. Such services would not be eligible for Cenvat credit when they are primarily consumed for personal purpose. However, consumption of these services purely for personal purpose would be rare and often these services are in relation to business of providing services or final dutiable products. In such cases, Cenvat credit...