Annual Return Form of Central Excise and Service Tax - Circular

Circular No. 1050/38/2016-CX

F.No. 207/0512014-CX.6

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

North Block, New Delhi

Dated the 8th of November, 2016

To,
The Principal Chief Commissioners/ Chief Commissioners of Central Excise (All)
The Principal Chief Commissioners/ Chief Commissioners of Central Excise and Service Tax (All)
The Principal Chief Commissioners/ Chief Commissioners of Service Tax (All)
The Principal Chief Commissioners/ Chief Commissioners of Customs (MI)
The Directors General (All)

Sub: Combined Annual Return Form for Central Excise and Service Tax–reg.

Madam/ Sir,

Kind attention is invited to Notification No. 8/2016-CE(N.T.) (SI.NO.5) dated 01.03.2016 and Notification No.13/2016-CE(N.T.) (Sl.NO.9) dated 01.03.2016 vide which Rule 12 of Central Excise Rules, 2002 and Rule 9A of  CENVAT Credit Rules, 2004, respectively, were amended to replace the existing Central Excise Forms ER-4 to ER-7 with an Annual Return form. On the service tax side, vide Notification No. 19/2016-ST dated 01/03/2016, Rule 7 of the Service Tax Rules, 1994 was amended to prescribe an annual return. In terms of Rule 12 of Central Excise Rules, 2002 and Rule 7 of the Service Tax Rules, 1994, the format of the Annual Return, which was required to be filed by 30th day of November, was to be specified by the Board by notification.

2. In view of impending implementation of Goods & Services Tax (GST) it has been decided that, the aforesaid Annual Return shall not be required to be filed for the year 2015-16, which is due to be filed by 30.11.2016. After implementation of GST, Annual Return for non-GST goods only may be required. A final view on the same would be taken after due consultation with the trade.

3.  Trade may be suitably informed that the aforesaid Combined Annual Return for 2015-16 is not required to be filed. Difficulties, if any, in the implementation of above Circular may be brought to the notice of the Board. Hindi version will follow.

(Shankar Prasad Sarma)

Under Secretary to the Govt. of India

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Clarification on PAN Mandatory for Service Tax Registration.

Before a days ago, Central Board of Excise and Customs, Department of Revenue had issued a circular regarding simplification of Registration Procedures in Central Excise and Service Tax.  This circular is as under:

Circular No. 997/4/2015-CX

dated the 28th Feb., 2015

F. No. 201/24/2013-CX.6

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

To

 Principal Chief Commissioners / Chief Commissioners of Central Excise (All),

 Principal Chief Commissioners/Chief Commissioners of Central Excise & Service Tax (All).

Sub: Simplification of Registration Procedures in Central Excise and Service Tax –reg.

Madam/Sir,

Registration process in Central Excise has been prescribed vide Notification no 35/2001 - C.E(N.T) dt 26-6-2001 as amended from time to time. The prescribed procedure has been amended by notification no. 07/2015-CE (N.T.) dated 01.03.2015 to simplify the procedure and improve the ease in doing business in manufacturing. The salient features of the revised registration procedure are as follows -

2) Registration in Central Excise presently envisages filing of application online on ACES, submission of documents, examination of documents, verification of premises by the departmental officer, submission of verification report, generation of Registration Certificate by the Deputy / Assistant Commissioner, dispatch of signed copy of Registration Certificate to the assessee and enabling the assessee to electronically pay the duty.

3) Under the new simplified procedure, once duly completed application form is received online on ACES, registration would be granted within two working days and issued online 

without any examination of the documents and verification of documents or premises before the grant of registration, thus initiating trust based registration. Simultaneously, assessee would be enabled to electronically pay duty. Further, the assessee would not need a signed copy of Registration Certificate as proof of registration. Registration Certificate downloaded online from ACES system would be accepted as proof of registration. Verification of the documents and premises shall be carried out post facto.

4) Verification of the premises shall be carried out after the registration has been granted. The applicant shall tender self-attested copy of the prescribed documents at the time of the verification of the premises.

5) Henceforth, registration shall mandatorily require that the PAN number of the proprietor or the legal entity being registered be quoted with the exception of the Government Departments for whom this requirement shall be non-mandatory. Applicants, who are not Government Department, shall not be granted registration in the absence of PAN number.

6) Communication with assessee is proposed to be made electronic to reduce transaction time and to achieve this e-mail address and mobile number of the applicant is being made mandatory. Existing registrants, who have not submitted this information, are requested to file this information within three months of the new registration process coming into effect.

7) Document to establish possession of the premises can be any document which establishes that the applicant is in possession of the premises required to be registered such as proof of ownership, lease or rent agreement, allotment letter from the Government, no objection certificate (NOC) from the landlord. Any of the following documents shall be 

submitted to establish identity, viz. PAN card, Ration Card, Passport, Voter I-card, Aadhar Card, Driving licence, or any other Photo-identity card issued by the Central Government, State Government or PSU.

8) The process of De-registration and cancellation of the registration has also been streamlined by prescribing clear procedure for the same so that winding up of business and starting new business of manufacture is made easy .

9) Similarly in service tax, the registration process for single registration has been simplified by providing for grant of registration online within two working days of filing the complete Form ST-1 in ACES, thus initiating trust-based registration. The specified documents should reach the office of the jurisdictional Deputy/Assistant Commissioner within 15 days of the date of filing the registration application. Where the need for the verification of premises arises, the same will have to be authorized by an officer not below the rank of Additional /Joint Commissioner. The conditions relating to the grant of registration in two working days have been specified in the Order No. 1/2015-Service Tax dated 28th Feb., 2015.

10) For further details, notification no. 07/2015-CE (N.T.) dated 01.03.2015 may be referred. The new procedure for registration shall come into effect from 01.03.2015. Difficulty, if any, in implementation of the procedure may please be brought to the notice of the Board. Hindi version would follow.

(ROHAN)

Under Secretary to the Government of India 

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Mandatory pre-deposit of duty or penalty for filing appeal

Recently, Central Board of Excise & Customs has issued circular regarding Mandatory pre-deposit of duty or penalty for filing appeal on 05th Jan., 2015.  Previously on 16th Sep., 2014 CBEC had look in to this regards.  The amended provisions regarding filing of appeal along with stipulated percentage of pre-deposit shall apply to all appeals filed on or after 6th August, 2014.  CBEC has amended as Section 129E stipulates that appellant filing appeal before the Commissioner (Appeals) shall pay 7.5% of the duty demanded where duty and penalty are in dispute.  Therefore, while mandatory pre-deposit would be required to be paid in cases of drawback, rebate and baggage at the first stage appeal before Commissioner(Appeals), no pre-deposit would be payable in such cases while filing appeal before the JS(RA).

The information regarding subject matter is as under :

F. No. 390/Budget/1/2012-JC

Government of India

Ministry of Finance

Department of Revenue

(Central Board of Excise & Customs)

Circular No. 993/17/2014-CX

New Delhi, dated the 5th January, 2015

To,
1. All Principal Chief Commissioners, Central Excise & Service Tax/Customs
2. All Chief Commissioners, Central Excise and Service Tax/ Customs.
3. Chief Commissioner (AR), CESTAT, New Delhi.
4. All Principal Commissioners of Central Excise & Service Tax/Customs.
5. All Commissioners of Central Excise, Service Tax and Customs
6. All Commissioners (AR), New Delhi, Mumbai, Chennai, Kolkata, Bangalore & Ahmadabad
7. Webmaster

Sub: Mandatory pre-deposit of duty or penalty for filing appeal– reg.

Attention is invited to Circular No 984/08/2014-CX dated 16th September, 2014 on the captioned subject. While para 6 of this Circular laid down the procedure and manner of refund, para 7.2 clearly directed that the Commissionerates should maintain a database of the record of deposits made so as to facilitate seamless verification of the deposits at the time of processing the refund claims made in case of favourable order from the Appellate Authority.

2. In order to maintain uniformity in the database being maintained, the following columns are suggested to be maintained in a separate register (e-register preferably) in the Review Cell of each Commissionerate. The following columns need to be filled in on receipt of each appeal memo as directed in Para 6.2 of the Circular mentioned above.
The data should be maintained separately in respect of appeals before CESTAT and Commissioner (Appeals)-
(i) Sl. No.
(ii) Name of the Appellant/ Party
(iii) Details of duty paying document viz Challan etc
(iv) Amount of pre-deposit paid
(v) Order No and date of the order of Commissioner(A)/Tribunal

3. Rule 17 of the CESTAT (procedure) Rules, 1982 stipulates that a copy of the appeal memo is to be sent to the Departmental Representative as well as to the Executive Commissionerate. This is required to be done by the Tribunal registry where the appeal memo is received. It has been brought to the notice of the Board that appeals filed before the Tribunal on or after 6th August are not being sent to the Commissionerate. Therefore, it is emphasized that Rule 17 ibid has to be followed and the Tribunal Registry must send a copy of the appeal memo to the Commissionerate immediately after receipt. Similarly, a copy of the appeal memorandum filed before the Commissioner (Appeal) must be sent to the Commissionerate concerned by the office of the Commissioner (Appeals). This would help in processing the refund claims quickly.

4. Para 1.2 of the Circular ibid stated that amended provisions would apply to appeals filed after 6th of August, 2014. An Act of Parliament comes in to effect on the date it received the assent of the President of India. Hence, the amended provisions regarding filing of appeal along with stipulated percentage of pre-deposit shall apply to all appeals filed on or after 6th August, 2014. Para 1.2 of the earlier Circular stands suitably modified.

5. Several representations have been received by the Board stating that some Commissioners (Appeals) have been insisting on pre-deposit in cases of demand of erroneous drawback granted. It has been represented that drawback is not a duty and hence the amended provisions would not apply to such cases.

6. The issue has been examined. Drawback, like rebate in Central Excise, is refund of duty suffered on the export goods. Section 129E stipulates that appellant filing appeal before the Commissioner (Appeals) shall pay 7.5% of the duty demanded where duty and penalty are in dispute. Accordingly, it is clarified that mandatory pre-deposit would be payable in cases of demand of drawback as the new section 129E would apply to such cases.

7. The ambit of the Section 129E of the Customs Act, 1962 in the legislation does not extend to appeals under section 129DD before Joint Secretary (Revision Application). Therefore, while mandatory pre-deposit would be required to be paid in cases of drawback, rebate and baggage at the first stage appeal before Commissioner(Appeals), no pre-deposit would be payable in such cases while filing appeal before the JS(RA).

(Archana P Tiwari)

Joint Secretary (Judicial/Review)

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Impact of Budget-2014 on Income Tax, Excise Duty, Service Tax, Custom Duty and others for Asstt. Year 2015-16

The Finance Minister announced the Union Budget for Fin. Year 2014-15 i.e. Asstt. Year 2015-16 on 10th July, 2014.  In this Budget the Finance Minister is trying to give better results of revenue for Government as well as get benefit to all Indians.  The analytical clarification of Budget-2014 which Impact's on  Income Tax, Excise Duty, Service Tax, Custom Duty and others for Asstt. Year 2015-16 are as under:

Income Tax Proposals

• Income Tax exemption limit increases from Rs. 2 lacs to Rs. 2.5 lacs in the case of individual taxpayers who are below the age of 60 years.
• Income Tax exemption limit increases from Rs. 2.5 lacs to Rs. 3 lacs in the case of senior citizens. 
• Deduction of investments made under section 80C increases from Rs. 1 lacs to Rs. 1.50 Lacs.
• Investment allowance of 15% to a manufacturing company will be given who invests more than Rs. 25 Crore in any year in new plant & machinery. This benefit will be available for three years i.e. for investments made upto 31.03.2017.
• Extention of Investment linked deductions to new sectors namely, slurry pipelines for the transportation of iron ore, and semi- conductor water facbrication manufacturing units.
• Deduction of Interest on housing loan increases to Rs. 2 Lacs from Rs. 1.50 Lacs in the last year.
• Extention of 10 years tax holiday to power companies which begins generation, distribution and transmission of power by 31st March’2017.
  
• Increase in ceiling limit of PPF investment to Rs. 1.50 Lacs from Rs. 1.00 Lacs.
• Government will review Direct Tax Code Bill, 2011 and take view in the related matter of introduction.
• Tax deducted at source (TDS), not deducted on specified payments to residents will now be disallowed to the extent of only 30 percent while computing taxable income.
• Mutual funds other than equity oriented funds will attract rate of tax of 20 percent on long term capital gains as compared to 10 percent prevailing. Budget also proposes to increase period of holding of such units to 36 months from 12 months.
• Corporates and Mutual funds are now required to pay income distribution tax on gross income distributed.
• Budget speech clears that Government will not ordinarily bring about any changes in tax regime retrospectively which creates a fresh liability. all fresh cases arising out of the retrospective amendments of 2012 in respect of indirect transfers and coming to the notice of the Assessing Officers will be scrutinized by a High Level Committee to be constituted by the CBDT before any action is initiated in such cases.

Excise Duty Proposals

• Excise Duty on cigarettes, cigars and cigarillos increased in the range of 11 percent to 72 percent.
• Excise Duty on pan masala increased from 12 percent to 16 percent.
• Excise Duty on Guthka and chewing tobacco increased from 60 percent to 70 percent.
• Excise Duty on specified food processing and packaging machinery reduced to 6 percent from 10 percent.
• Footwears having retail selling price ranging between Rs. 501 to Rs. 1000 will be levied duty @ 6 percent as compared to 12 percent presently charged. Footwears having retail selling price upto Rs. 500 will remain exempt from duty.
• Excise Duty on unmanufactured tobacco increased from 50 percent to 55 percent.
• Exemption provided from Excise Duty to the below mentioned products:
• EVA sheets and solar back sheets and specified inputs used in their manufacture.
• Solar tempered glass used in the manufacture of solar photovoltaic cells and modules.
• Flat copper wire for the manufacture of PV ribbons for use in solar cells and modules.
• Machinery & Equipments required for setting up of a solar energy production project.
• Forged steel rings used in the manufacture of bearings of wind operated generators.
• Machinery & Equipments required for setting up of compressed biogas plants(Bio-CNG)

• Government exempts duty on PSF and PFY manufactured from plastic bottles, for the period 29th June, 2010 to 7th May, 2012. Now PSF and PFY will attract duty @ 2 percent without and @6 percent with Cenvat benefits on such products.
• Sports gloves will now attract duty of 2 percent without Cenvat benefit and 6 percent with Cenvat benefits on such products.

Service Tax Proposals

• Now, online and mobile advertisements of sale of space or time for advertisements will also be covered under purview of Service Tax.
• Service provided by radio-taxis will also attract service tax with rent a cab service. (Applicable w.e.f. date of passing of Bill by president)
• Services by Air Conditioned Contract Carriages & technical testing of newly developed drugs on human participants to be taxable.
• Micro Insurance Scheme will also include all life insurance schemes where the sum assured does not exceed Rs. 50000 per life insured. Micro Insurance Scheme is covered under exemption list therefore it does not attract Service Tax.„Ï Services provided by Indian tour operators to foreign tourists in relation to a tour wholly conducted outside India is not taxable.
• Cenvat Credit will be allowed to service providers of rent-a-cab, tour operators and same line of business.
• Services of loading, unloading, storage, warehousing & transportation of cotton, whether grinned or baled is being exempted
• Services provided by common biomedical waste treatment facilities are being exempted.
• Following changes will be noted in respect of reverse charge mechanism (RCM) of Service Tax:

• Following changes are made in valuation rules of Service Tax w.r.t. works contract service:

• Changed mechanism of interest payable for delayed payment of Service Tax are as under:

• Service Tax payment will be made through internet banking by every assessee w.e.f. 01st Oct, 2014. (Exceptional permission from AC/DC will be required for otherwise payment mode)

Custom Duty Proposals 

Basic Custom Duty (BCD) reduced on below mentioned products:

• Fatty acids, crude palm stearin, RBD and other palm stearin, specified industrial grade crude oils from 7.5 percent to Nil for manufacture of soaps and oleo-chemicals.
• Crude glycerin from 12.5 percent to 7.5 percent and crude glycerine used in the manufacture of soaps from 12.5 percent to Nil.
• Steel grade limestone and steel grade dolomite from 5 percent to 2.5 percent. Battery waste and battery scrap from 10 percent to 5 percent. Coal tar pitch from 10 percent to 5 percent.
• Specified inputs for manufacture of spandex yarn from 5 percent to Nil.

Imposition of Basic Customs Duty at 10 percent on specified telecommunication products that are outside the purview of the Information Technology Agreement and education cess on imported electronic products.

• Exemption of 4 percent special additional duty (SAD) for all inputs/components used in the manufacture of personal computers and on PVC sheet and ribbon used for the manufacture of smart cards.
• BCD reduced from 10 percent to Nil on LCD and LED TV panels of below 19 inches.
• BCD increased on imported flat-rolled products of stainless steel from 5 percent to 7.5 percent.
• Increase in duty free entitlement for import of trimmings, embellishments and other specified items from 3 percent to 5 percent of the value of their exports.
• Free baggage allowance increased to Rs. 45000 from Rs. 35000. Other Important Announcements.
• Government will set up a High Level Committee to interact with industry on a regular basis and ascertain areas where clarity in tax laws is required. Based on the recommendations of the Committee, the Central Board of Direct Taxes and the Central Board of Excise and Customs shall issue appropriate clarifications, wherever considered necessary, on the tax issues within a period of two months.

Indian Accounting Standards (Ind AS) will be adopted by the Indian companies from the financial year 2015-16 voluntarily and from the financial year 2016-17 on a mandatory basis.

• Budget reintroduces Kissan Vikas Patra (KVP) instrument to encourage people, who may have banked and unbanked savings to invest in this instrument.
• Budget also proposes extend a liberalized facility of 5% withholding tax to all bonds issued by Indian corporate abroad for all sectors and extend the validity of the scheme to 30.06.2017.
• Budget recommends to follows single “Know Your Customer” norms for all financial services in the country.
• Budget recommends to use single “Demat Account” for all financial transaction.
• Budget proposes 49 percent FDI in insurance sector through FIPB.
• Clean energy cess increased from Rs. 50 per tonne to Rs. 100 per tonne on coal, peat and lignite.
• Government will look after for a solution which enables introduction of Goods & Service Tax (GST) by this year.

Source: www.caclubindia.com

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In the matter of refunds CBEC wants special attention to judicial discipline.

The CBEC i.e. Central Board of Excise & Customs has issued a Instruction F. No. 201/01/2014-CX.6 dated 26.06.2014 regarding need to follow Judicial discipline in adjudication proceedings to all The Commissioners of Central Excise, Central Secise and Service Tax and Customs.  For more information regarding this Refunds of CBEC read the following instruction-

F. No. 201/01/2014-CX.6

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

New Delhi, the 26th June, 2014

To

All Chief Commissioners of Central Excise,
All Chief Commissioners of Central Excise and Service Tax,
All Chief Commissioners of Customs.

Sirs,

Subject – Instructions regarding need to follow Judicial discipline in adjudication proceedings.

Kind attention is invited to the order of Hon’ble High Court of Gujarat at Ahmedabad in case of M/s E. I. Dupont India Pvt Ltd (hereinafter referred to as M/s Dupont) in Special Civil Application no 14917 to 14921 of 2013 dated 25-10-2013 [2013-TIOL-1172-HC-AHM-CX]. M/s Dupont had filed appeal before the Hon’ble High Court against rejection of a refund claim on an issue which had earlier been decided by the Hon’ble High Court against the revenue, though in a matter relating to a different assessee. Thus for deciding the refund, a binding precedent judgment existed.

2) However the binding precedent was not followed which led to litigation before the Hon’ble High Court to which Hon’ble High Court took a serious view. It may be noted that on the subject of consequential refund, where the department has gone in appeal, there already exists a circular no 695/11/2003 –CX dated 24-02-2003. This circular of the Board is binding on all field officers. Had this circular been followed in the case, unnecessary litigation as well as adverse observation of the Hon’ble High Court could have been avoided. This circular is once again brought to the notice of field officers with direction that it is followed scrupulously.

3) The judgment of Hon’ble High Court in M/s Dupont case (supra) under reference may be perused by the field officers for complete understanding of the issues involved and directions of the Hon’ble High Court on need to follow judicial discipline. Judgment of the Hon’ble Supreme Court in case of Union of India vs. Kamlakshi Finance Corporation Ltd. [1991 (55) E.L.T. 433 (S.C.) = 2002-TIOL-484-SC-CX-LB] may also be perused as this is an authoritative pronouncement on the issue and has also been cited by the Hon’ble High Court.

4) The contents of this instruction may be brought to the notice of all adjudicating authorities under your jurisdiction with direction to follow the same scrupulously.

Yours faithfully,

(Pankaj Jain)

Under Secretary (CX)

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Service Tax & Excise Custom Offices also continued on 29th, 30th and 31st March-13

The Central Board of Excise and Custom (CBEC) offices shall be open on 29th, 30th & 31st March, 2013 as usual office hours and withdrawn strike called by the Associations of Superintendent & Inspectors of Central Excise on the same dates.

As well as due to heavy rush to collect Tax as Income Tax, Sales Tax, Service Tax and Excise Custom etc. fir Transfer or Collection RBI has issued a notification and decided to open all Nationalize Banks for clearing on March 29,30 and 31, 2013.

Agency banks doing Government business alone will be permitted to present instruments in the Special Clearing on other participating banks. Other member banks of the Clearing House (including the presenting banks) are required to keep their inward clearing processing infrastructure open during the Special Clearing hours and maintain sufficient balance in their clearing settlement account to meet settlement obligations arising out of the Special Clearing.

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How to pay Excise Duty/Service Tax by e-Payment Procedure?

Excise Duty and Service Tax payment must pay by e-Payment process and e-Payment is very easy to Pay. It can handle everyone.  The bottom link is for paying Excise Duty and Service Tax by e-Payment by just enter Assessee code  and Image verification code. Assessee Name with complete detail (Full Name, Name of  premises/Building/village, Flat/Door/Block No, Road/Street/Lane, Locality, City, District,Pin Code, State, Commissionerate Name, Commissionerate code, Division Name, Division Code, Range Name, Range Code)  will be appeared automatically. Now select type of duty/Tax through selecting Accounting codes for Excise Duty/Service Tax.   In last select name of Bank and deposit duty through using internet user id, Login Password and Transaction Password.

e-Payment facilitates online payment of Excise Duty and Service Tax by an Assessee. To avail this facility the Assessee is required to have a net-banking account with any of the banks listed below.

• Allahabad Bank
• AXIS Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank
• Oriental Bank of Commerce
• Punjab National Bank
• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• State Bank of India
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Travancore
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank

Pay online e-Payment Excise Duty and Service Tax (Click Here)

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Circular regarding Classification of Micro Mini SD Cards by Customs

As per Circular of Custom Department No. 12/2012 regarding Classification of Micro/Mini SD Cards. We uses Cameras and Mobile which are two different products thus the Custom Department in-forced the Custom Duty on both product separately. The Custom Department classify is as under.

Circular No.12 / 2012 - Customs
F. No. 528/27/2010-CUS (TU)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Tariff Unit
***
New Delhi, the 1st May, 2012.

To

All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE,
All Directors General of CBEC,
All Commissioners of Customs / Customs (Prev.) / C&CE
All Commissioners of Customs & Central Excise (Appeals).

Subject: Classification of Micro / Mini SD Cards - regarding.

Doubts have been raised as regards the classification of Micro / Mini SD Cards in the Sub-heading 852351, which covers Semiconductor media, Solid – state non-volatile storage devices or the Sub-heading 852352, which applies to Semiconductor media, Smart cards. The matter was also deliberated upon in the Bangalore 2011 Conference of Chief Commissioners of Customs.

2. The correct classification of Micro / Mini SD Cards was examined in the Board and also deliberated in the 49th meeting of WCO’s Harmonized Systems Committee (HSC). The technical inputs received revealed that the product structure of Micro /Mini SD Cards can be divided into two broad categories: Category 1: where there is PCB in the same housing, and Category 2: where there is no PCB instead there is substrates like alumina substrate with IC mounted in the substrate and interconnects printed on substrate.

3. Reportedly, at the time when Note 4(a) to Chapter 85 was adopted the solid-state non-volatile storage cards included a traditional printed circuit board. SD card technology has since evolved and now uses “Chip on Board” substrate packaging (also known as System-in-Package or SIP) instead of traditional printed circuit board assembly packaging to provide the exact same SD functionality. The Current SD cards contain a substrate or support on which the components (flash memory, controller, passive elements) are mounted. Moreover, Note 5 to Chapter 85 defines printed circuits for the purposes of heading 8534 and the Explanatory Note thereto provides further insight that confirms that circuits are made by forming on an insulating base, by any printing process (conventional printing or embossing, plating-up,etching, etc.), conductor elements (wiring), contacts or other printed components such as inductances, resistors and capacitors (“passive” Elements), other than elements which can produce, rectify, detect, modulate or amplify electric signals, such as diodes, triodes or other “active” elements. In this regard the WCO’s HSC is of the opinion that a very broad definition of printed circuits was intended.

4. Micro / Mini SD Cards are manufactured using an etching process. The etching process is one of the processes specifically identified in the definition of “printed circuit” in Note 5 to Chapter 85. Thus, the substrates used fully comply with the definitions of printed circuits found in the Harmonized System and therefore, the substrate of Micro / Mini SD Cards qualifies as a printed circuit board for purposes of Note 4(a) to Chapter 85.

5. The issue of classification of Micro / Mini SD cards was also referred to the Department of Information Technology (DIT), Ministry of Communications & Information Technology. Technical inputs from this Ministry revealed that connecting pins can be treated as connecting sockets and the product covered in the aforesaid two broad categories remain solid-state non-volatile storage devices even when substrate is of alumina. This Ministry has also suggested classification of Micro / Mini SD Cards in Sub-heading 8523.51

6. In view of the aforesaid, Board is of the considered view that in case of Micro / Mini SD Cards wherein the PCB is substituted by substrates, then such substrates fully comply with the definitions of printed circuits found in the Harmonized System and the qualifies as a printed circuit board and connecting pins qualifies as connecting sockets for purposes of Note 4(a) to Chapter 85. As such, Micro / Mini SD Cards are correctly classified in Sub-heading 8523.51 as Semiconductor media, solid-state, non-volatile data storage devices by application of General Rules for Interpretation of Import Tariff (GRIs) 1 (Note 4(a) to Chapter 85) and 6.

7. The Board desires that the pending provisional assessment cases of Micro/ Mini SD Card imports may be finalised on the basis of above instructions. Difficulties, if any, in implementation, may be brought to the notice of the Board.
Yours faithfully,

(Subodh Singh),
OSD (Customs), Tariff Unit,
Fax-011-23092173

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Excise and Service Tax Revised Tax Return Format.

Service Tax and Central Excise Department has revised format of Tax return as ER-1, ER-2 and ST-3.  Return ER-1 needs to be filled monthly whereas ER-2 quarterly and ST-3 in every six month. The department has issued draft no. 201 dated 13-04-2012 about the revised process. The full draft is as follows.

F No 201/05/2011-CX.6
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)
*****
New Delhi, the 13th April, 2012

Subject: Revised format for Excise and Service Tax Return- regarding

The attached document is a draft circular containing details of proposed amendments to harmonize the ER-1, ER-3 and ST-3 returns so that a single common return can be prescribed instead of these three returns as measure of simplification of the Business Processes in respect of filing the Return by assesses. The draft is being placed in public domain for widest possible circulation and an extensive debate from all stakeholders in trade and industry as also from all the field formations of the department. All suggestions and feedback from Trade as well as Field formations, may please be emailed at dircx1@nic.in or at vp60singh@gmail.com latest by 15th May 2012. The feedback and suggestions received would be considered for revising the proposed amendments.

Download Revised Form Click Here

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Excel (Software) Utility to File Central Excise and Service Tax Return ER-1 to ER-6 & ER-8.

Excel (Software) Utility to File Central Excise and Service Tax Return ER-1 to ER-6 & ER-8.

Excel Utilities	Last Updated
Download ER1 Return Excel Utility	06/04/2012
Download ER2 Return Excel Utility	06/04/2012
Download ER3 Return Excel Utility	06/04/2012
(For Filing ER-3 returns for the Quarter Oct-Dec.2011 Onwards)
Download ER4 Return Excel Utility	06/04/2012
Download ER5 Return Excel Utility	06/04/2012
Download ER6 Return Excel Utility	06/04/2012
Download ER7 Return Excel Utility	06/04/2012
Download ER8 Return Excel Utility	06/04/2012
Download Dealer Return Excel Utility	06/04/2012
Download ER3 Return Excel Utility	06/04/2012
(For Filing ER-3 returns for the Quarter upto July-Sep.2011)

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Service Tax and Central Excise Tax common Codes

As announced by the Union Finance Minister, Shri Pranab Mukherjee in his Budget speech, a Study Team has been set-up by the Government, under the leadership of Shri. M. K. Gupta to examine the possibility of a common tax code for service tax and central excise, which could be adopted to harmonize the two legislation. Shri M K Gupta, a retired IRS officer, is a former vice-Chairman of the Customs and Central Excise Settlement Commission.The Study Team will examine the feasibility and also suggest a draft Common Tax Code for service tax and central excise that can be implemented under the present Constitutional scheme, keeping in view the challenges in the context of impending Goods and Service Tax (GST). The Study Team has also been directed to address issues relating to input tax credits with a view to simplify the existing scheme and to mitigate cascading to the extent possible, and to harmonize existing procedures and processes to make them more trade friendly. The Study Team may also suggest any other measure that will help in reducing the cost of compliance for business or transition towards a comprehensive GST.

Shri M K Gupta, IRS (retd.) is widely recognized for his in-depth knowledge and sound understanding of service tax and central excise law and procedure. He possesses vast experience of working in the Finance Ministry and also in the field formations of service tax and central excise. As part of its efforts, the Study Team will interact with various chambers of commerce and industry and recognized business and industry associations representing various segments of the services and manufacturing sector, as may be required. Government has directed the Study Team to submit its report by the 30th of September, 2012.

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Duty Rate of Central Excise increased by 2% from the Financial Year 2012-13

Before Budget the Central Excise Duty rate is 10% for Financial year 2011-12 and in budget the Finance Minister increased by 2% it means that for financial year 2012-13 takes 12%.  On the contrary there is little confusion about the central excise duty regarding Produce Products because due to non-clarify by the Government. The excise duty is vary from product to product and in manufacturing line, it is necessary to know the excise duty rate well before the start of production.  In this annual budget, the rates of excise duty have been increased to 12% from the existing 10%. This rate will be applicable from 01-04-2012. But it is not that all the products have similar excise duty. The excise duty can be different in these points which are as under.

• Totally exempt excise duty such as tea and condensed milk.
• 1% excise duty on the products which have the facility of less excise duty like articles of jewellery.
• 3% excise like gold
• 6% excise on paper, cotton and biscuits etc.
• 12% excise on motor vehicles
• Production base excise duty on aluminum circles and trimmed and untrimmed circles of copper.
• High excise duty on large cars, cigarettes and tobacco products.

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