1. CCE Vs M/s Australian Foods India (P) Ltd
Decision: Manufacture and sale of specified goods that do not physically bear a brand name, from branded sale outlets: Once it is established that a specified good is a branded good, whether it is sold without any trade name on it, or by another manufacturer, it does not cease to be a branded good of the first manufacturer. It is not necessary for goods to be stamped with a trade or brand name to be considered as branded goods under the SSI notification. Hence not eligible for SSI Exemption. (Central Excise)
2. Circular No.168 / 3 / 2013 dt. 15.04.2013
Issue: Whether the activity of erection of Pandal / Shamiana activity involves transfer of right to use such pandal / shamiana to the customer? Is it included in service?
- Normally, the activity of erection of Pandal / Shamiana is coupled with other services like supply of Furniture, Sound System, Lighting etc.
- Such activity prepares a place to hold a function or event. However, effective possession and control over such pandal or shamiana remains with the service provider, even if the specially made–up space for temporary use is handed over to the customer.
- Hence, the activity of providing pandal and shamiana along with erection and other incidental activities do not amount to transfer of right to use goods. So, Such activity is liable for service tax.
3. Notification No. 03/2013 dt.01.03.2013 – W.e.f. from 1st April, 2013, the following amendments are made relating to exemptions as specified in Notification No.25/2012 dt. 20.06.2012 (Service Tax)
1. Services provided by Educational Institutions in relation to renting of immovable property or auxiliary educational services are taxable. [Impact: Such services by the educational institution were exempt. Now, the exemption for the above services are available only when they are provided to the educational institution]
2. Services provided by way of temporary transfer or permitting the use or enjoyment of the following rights:
(a) Copyright relating to original literary, dramatic, musical or artistic works (covered u/s 13(1)(a) of Copyright Act, 1957).
(b) Copyright of Cinematograph Films for exhibition in a Cinema Hall or Cinema Theatre.
[Impact: Earlier, copyright of cinematograph films covered u/s 13(1)(a) are exempt. Now, copyright in relation to cinematograph films would be exempt irrespective of whether or not it is covered under the Copyright Act]
3.Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess. If such establishment has the facility of air–conditioning or central air–heating in any part of the establishment, at any time during the year, then it is liable for service tax. [Impact: Earlier, restaurants were taxable only when alcoholic beverages were served. Now, any restaurant with AC / heating system is taxable]
4. Transportation of the following products from one place in India to another place by rail or a vessel are taxable – (a) Petroleum or Petroleum Products (b) Postal mail or Mail Bags (c) Household Effects
[Impact: Earlier the transportation of above products were exempt from Service Tax]
5. Services by a Goods Transport Agency relating to the following products shall also be exempt –
(a) Foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil (excluding alcoholic beverages)
(b) Chemical fertilizers and Oil cakes
(c) Newspaper or Magazines registered with the Registrar of Newspaper
(d) Relief materials meant for victims of natural or man–made disasters, calamities, accidents, mishap or
(e) Defence or Military Equipments
(f) Agricultural Produce [Impact: Earlier, exemption was available only for fruits, vegetables, eggs, milk, food grains or pulses. It is extended to agricultural produce)
6. Services by way of Vehicle Parking to General Public are taxable. [Impact: Earlier, such service was exempt from service tax]
7. Services provided to Government or Local Authority or Governmental Authority by way of repair or maintenance of an aircraft is taxable. [Impact: Earlier such service was exempted].
Exemption is withdrawn for charitable activities relating to advancement of any other object of general public. [Impact: Earlier, exemption was given for services for advancement of objects of general public utility. This is now withdrawn.]
4. Notification Nos.06/2013, 07/2013 and 08/2013 dt. 18.04.2013 - Exemption for Services provided to Exporters under Foreign Trade Policy Schemes
Nature of Exemption:
Input Services shall be exempt if used by exporters, who hold the Focus Market Duty Credit Scrip / Focus Product Duty Credit Scrip / Vishesh Krishi and Gram Udyog Yojana Duty Credit Scrip issued by the Regional Authority under the Foreign Trade Policy.
Conditions for availing exempton:
(a) The Scrip should be issued against exports to the countries notified in the Appendix to the Handbook of Foreign Trade Procedures.
(b) The Scrip is registered with the Customs Authority at the port of registration
(c) The Scrip Holder shall be located in the taxable territory.
(d) The Scrip Holder may either be the Original Holder or Transferee Holder. He should present the scrip to the Customs Authority along with a letter and an invoice / challan or bill issued by the service provider.
(e) The Customs Authority shall debit the service tax leviable, in or on the reverse of the Scrip.
(f) The date of debit in the scrip, by the Customs Authority shall be treated as the date of payment of service tax.
(g) If the actual due date of payment of service tax is prior to the date of debit in the Scrip, or the actual tax rate is in greater than the rate of service tax mentioned in the invoice, the Scrip Holder shall pay additional service tax along with interest.
(h) The Scrip Holder presents the scrip debited by the said Customs Authority within 30 days to the Jurisdictional CEO, with an undertaking to pay any short paid service tax along with interest.
(i) Based on the written advice and undertaking, the CEO shall verify, the details of the service tax leviable, which were debited by the said Customs Authority, and keep a record of payment of such service tax and interest.
(j) The service provider retains a copy of the scrip, and verified by the said Officer and duly attested by the Scrip Holder in support of the exemption taxable services.
(k) The Scrip Holder shall be entitled to avail the drawback or CENVAT credit of the service tax, against the service tax debited in the scrip and validated by the said Officer.