Rule 6(3) of Cenvat Credit Rules, 2004 provides two options to the manufacturer. The first option is to pay an amount equal to ten per cent of the value of the exempted goods and the second option is to pay an amount equivalent to the CENVAT credit attributable to inputs and input services used in, or in relation to, the manufacture of exempted goods. Can we exercise the first option in case of certain exempted goods and the second option in case of certain other exempted goods?
According to the Explanation I to the said Rule 6(3), if the manufacturer of goods, avails any of the options under this sub-rule, he shall exercise such option for all exempted goods manufactured by him and such option shall not be withdrawn during the remaining part of the financial year.
Therefore, the same assessee cannot avail both the first option and second option simultaneously during a financial year. You may refer to CBEC Circular no. 868/6/2008-CX dated May, 9, 2008 on this point.
We have imported certain capital goods under the Export Promotion Capital Goods (EPCG) scheme. After installation within six months, we had sought a certificate from our Central Excise authorities but as the Superintendent was extending his leave due to illness, nobody issued the certificate. Now, a new Superintendent has come but he says that six months have passed since imports and so, he cannot issue a certificate. How can we get the certificate?
Generally speaking, if you have any difficulty in getting such certificates in time, you should approach the higher authorities and request them to sort out the problem. Coming to your specific case, if you have obtained a dated acknowledgement of your request to issue installation certificate, the excise department must issue the certificate within 30 days and if it is not issued within that time limit, it shall be deemed that the capital goods have been installed at the declared address. Please refer to CBEC Circular no. 14/2008-Cus., dated September 26, 2008 on this point.
On inward freight, the transporter issued only a consignment note indicating freight payable and did not mention any service tax. We have paid him in full. Now the department says that as dealers registered with Central Excise, we have to pay the service tax. We pleaded that the transporter did not bill for any service tax. But, the concerned officer says that he will initiate action for recovery of tax. Can you guide us, please?
As a dealer registered with Central Excise who has paid the freight, the liability to pay the service tax on transportation services is on you. Failure of the service provider to show the service tax payable does not negate this statutory liability. The amounts that you have paid for the service/s will have to be taken to constitute amounts inclusive of service tax. Accordingly, you have to determine the amount of service tax and pay the same to the government.