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Excise duty was imposed on article of jewellery in the Union Budget 2016-17. There were many apprehensions of the trade and industry regarding taxability, valuation, exemption, removal procedures, documentation and interventions by departmental officials. The government had constituted high level committee to make suggestions on critical aspects. The committee had made its suggestion last month and accepting the suggestions made by committee, government has come out with necessary...

Service tax levy on ocean freight charges even when the services are provided outside India  has attracted lot of criticism from trade within the country. This would also effect countries like Nepal as the levy would affect the transit treaty between the countries. Service tax levy from 22nd January 2017 has created few confusions with respect to aspects like liability, point of taxation and Cenvat credit etc. Importers who hitherto were not liable for service tax on ocean...

This material and the information contained herein prepared by Hiregange & Associates intended for clients and other chartered accountants to provide legal updates on indirect tax and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.    

Advance Ruling    

1. Subscription to share capital...

HIGH COURT

1. Amount paid as “tax” by assessee under mistaken belief of fact or law or both, being erroneous and without authority of law, cannot be retained by Government (G.B. Engineers Vs UOI 2016-43-S.T.R.-345-Jhar.)
   • Background: Assessee filed a refund claim for an amount erroneously deposited for the period during which service tax was not leviable on services provided. Department contended that refund claim is time bared as per section 11B of CEA, 1944 read with...

1. Input Tax credits can be claimed based on invoice value even though goods sold to consumer at discounted price by dealer (Jyoti electronics 2016(336) E.L.T. 517 (Raj)
   • Background: Assessee, dealer of electronic goods, received quantity discount from manufacturer. Goods so purchased were sold at discounted price to the consumer. Assessee took credit of tax charged by manufacturer on gross amount i.e. before discount. Department contended that credit cannot be taken on invoice amount...

1. Compulsorily availment of exemption not made applicable to service tax (CCE Vs. Federal Mogul TPR India Ltd., Bangalore 2016 (42) S.T.R. 427 (Kar.)
   • Background:Assessee engaged in activity of chrome plating on job work basis. Job work charges exempted from ST if excise duty paid on final products by principal manufacturer. The assessee did not claim ST exemption, availed credit and charged service tax on job work charges. Manufacturer claimed credit of service tax charged by job...

Introduction  

Cenvat scheme is a beneficent piece of legislation and unless it is shown that the items are specifically excluded from the definitions of the terms “inputs”, “input service” or “capital goods”, Cenvat Credit cannot be denied to a manufacturer of final products or provider of output service.   

The cenvat credit cannot be availed on inputs, input services, capital goods which are used to provide exempted services. Rule 2(e) of Cenvat Credit Rules...