Wednesday 27 November 2013

Rule 6 of Service Tax Rule 1994, amended through Notification No. 16/2013

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)


Notification No 16 /2013-Service Tax

New Delhi, the  22nd November, 2013
   1 Agrahayana, 1935 Saka
           
G.S.R           (E).-In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 ( 32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994,  namely:-

1.        (1) These rules may be called the Service Tax  Third ( Amendment) Rules, 2013.
           (2)  They shall come into force on the 1st day of January, 2014.

2.      In the Service Tax Rules, 1994,  in rule 6,  in sub-rule (2),  in the proviso,  for the words “ rupees ten lakh” , the words   “ rupees one lakh”   shall be substituted.


F.No: 137/116/2012- Service Tax

(Rajeev Yadav)
Director


ANALYSIS:

The Threshold limit for mandatory e-payment of Service tax duty has been reduced to Rs. 1 lakh against Limit of Rs 10 Lacs previously. Hence where the assessee has paid service tax of Rs 1 Lac or more (via Cash / Cenvat / PLA), he is required to deposit in electronic mode only.

NOTE:
 Similar amendment has been carried out in Service Tax Also through Notification no. 15/2013

Rule 8 of Central Excise Rules 2002 amended

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE


Notification No. 15/2013 – Central Excise (N.T.)
New Delhi, the 22nd November, 2013
01, Agrahayan 1935 Saka


G.S.R. (E). - In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules to further amend the Central Excise Rules, 2002, namely:-

1. (1)   These rules may be called the Central Excise (Second Amendment) Rules, 2013.
    (2)   They shall come into force with effect from the 1st day of January, 2014.

2.In the Central Excise Rules, 2002, in rule 8, in sub-rule (1), in the third proviso, for the words  “rupees ten lakh”,  the words “rupees one lakh” shall be substituted.


F. No. 201/02/2013-CX.6

(Pankaj  Jain)
Under Secretary to
 the Government of India 

ANALYSIS:

The Threshold limit for mandatory e-payment of Central Excise duty has been reduced to Rs. 1 lakh against Limit of Rs 10 Lacs previously. Hence where the assessee has paid service tax / central Excise of Rs 1 Lac or more (via Cash / Cenvat / PLA), he is required to deposit in electronic mode only.

NOTE:
 Similar amendment has been carried out in service tax also through Notification No. 16/2013



Rule 8 9 & 10 of Central Excise Valuation Rules 2000 amended

Date:

25-11-2013

Notification No:

Central Excise Circular No. 975/09/2013-CX

Issuing Authority:Central Excise  
Type:Circular
File No:F. No. 6/12/2009-CX-1
Subject:

Regarding amendment of rule 8, 9 and 10 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000

Government of India
Department of Revenue
Central Board of Excise & Customs
New Delhi
******
Circular No. 975/09/2013-CX
New Delhi, the 25th November, 2013
To
All Chief Commissioners of Central Excise & Customs,
All Chief Commissioners of Central Excise,
All Directors General,
Sir/Madam,

Subject – Amendment of rule 8, 9 and 10 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 - reg .
I am directed to invite your attention to amendments in rule 8, 9 and 10 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Under transaction value regime each transaction or removal is required to be assessed independently, as would be clear from the language of section 4 of the Central Excise Act, 1944. Section 4(1) of the Central Excise Act, 1944 reads as –

Section 4 – Valuation of excisable goods for purposes of charging of duty of excise - (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall –
  1. Rules 8, 9 and 10 of the Central Excise Valuation Rules, 2000 dealing with determination of assessable value in case of captive consumption and sale to related person have been amended vide notification no. 14/2013 – Central Excise (N.T.) dated 22.11.2013 to clearly state that these rules apply irrespective of whether the whole or a part of the clearances of manufactured goods are covered by the circumstances given in these rules. Each clearance is required to be assessed according to section 4(1)(a) or the relevant rule dealing with the circumstances of clearance of the goods, as the case may be.
  2. For example, if an assessee clears his goods in such a way that first removal of goods is to an independent buyers, some goods are captively consumed, second removal is to such a related person who is covered under rule 9 and third removal is to a person who is covered under rule 10, then the first removal should assessed under section 4(1)(a), captively consumed goods should be assessed under rule 8, second removal should be assessed under rule 9 and third removal should be assessed under rule 10 of these rules. It may be noted that Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 are not required to be followed sequentially. Each of these rules provide for arriving at the assessable value of goods under different contingencies as noted by Hon’ble Supreme Court at paragraph 70 in case of Commissioner of Central Excise, Mumbai vs M/s FIAT India Pvt Ltd [2012 (283) ELT 161 or 2012-TIOL-58-SC-CX].
  3. Serial no. 5, 12 and 14 of the Circular no. 643/34/2002-CX dated 1-7-2002 are deleted in view of the amendments in the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, as these amendments address the issues on which these clarifications were issued. The amended rules and accordingly this circular shall apply with effect from 1st December, 2013.
Yours Faithfully,
(Pankaj Jain),
Under Secretary (CX-1)
F. No. 6/12/2009-CX-1