'Export of services will now be governed by new provisions'

The Customs want to reject our import invoice price on the basis of PLATT’s Price Report. Is that correct?
The Customs can question your transaction value only on the basis of parameters set out in Rule 3(3) or Rule 12 (2) (iii) of the Customs Valuation Rules, 2007. In the case of Adani Exports Ltd. vs. CC, Vishakapatnam [2000 (116) ELT 715 (Tribunal]), part of the judgment reads as follows: “We find that unlike the London Metal Exchange, where actual trading of metals takes place i.e., transactions are involved, and which are reflected in its LME Bulletin, the PLATT’s price report is not based on transactions but merely is a compilation of price ranges of various plastic materials. Furthermore, as these are region-wise (and not country-wise), therefore for all these reasons they do not represent alternate transaction values. We are hence unable to accept the proposition in the impugned orders that the assessable value can be enhanced on their basis in the absence of instances of contemporaneous imports and as no clear and convincing evidence to prove any fraud in the declared values is led with respect to HDPE (IG) and HDPE (FG). In the case of Hind Afghan [1987 (31) ELT 551 (T)] it was held that price ranges in Financial Journals are not relevant as acceptable transaction values. Since PLATT’s report is also merely a similar journal, the ratio of the said decision is applied.” The department’s appeal against the judgment was dismissed by the Supreme Court on merits [2002 (146) E.L.T. A213].

Under the new regime of taxing all services except those on a negative list, what does export of services mean?
According to the ‘Education Guide’ released by the Central Board of Excise and Customs (CBEC) on 20th June 2012, export of services shall now be governed by new provisions in the Service Tax Rules 1994, namely rule 6A. The essential requisites for a service to be designated as an export service are:

• It must be a service as defined under sub-section 44 of section 65B 
   
• It must be provided by a service provider located in the taxable territory 
   
• It must be provided to a service receiver located outside India 
   
• It must not be a service specified in the negative list 
   
• It must be provided at a place that is outside India 
   
• The payment for such service is received by the service provider in convertible foreign exchange 
   
• The service provider and service receiver are not merely establishments of a distinct person by virtue of item (b) of Explanation 2 of clause 44 of section 65B of the Act.

The answer to all questions above must be yes to avail the status of export of service, says the CBEC.

What is the latest procedure for claiming refund of unutilised Credit under Rule 5 of Cenvat Credit Rules, 2004?
The conditions, safeguards, limitations and procedures for claiming a refund under the said Rule 5 are laid down in the notification no. 27/2012-CE(NT) dated 18th June 2012.