Indirect Tax Laws - May 2015

M/s. Fresh Bakery manufactures biscuits named as “Choconuts”. Biscuits are notified under section 4A of the Central Excise Act, 1944 with an abatement of 30%. The following information has been furnished by M/s. Fresh Bakery with regard to clearances of packs of “Choconuts”: (i) 2,500 packs having MRP @ 70 per pack were sold in retail packages, but buyer is charged for 2,400 packs only at = 50 per pack (100 packs have been given free as quantity discount). (ii)…

2. “The CENVAT credit of duties, other than National Calamity Contingent Duty (NCCD) can be used to pay NCCD.” Examine the correctness of the statement with the help of a decided case law, if any. Export Procedures under Central Excise

Mills manufactures M.M. Yarn by using duty paid inputs and clears the same for export on payment of duty. It wants to claim rebate of duty paid by it on inputs as well as of duty paid on finished goods under rule 18 of the Central Excise Rules, 2002. Rule 18 of the Central Excise Rules, 2002 provides that “where any goods are exported, the Central Government may, by notification, grant rebate of duty paid on such excisable and the…

4. An order has been issued to M/s. Shankar & Sons in which the Joint Commissioner of Central Excise has confirmed a duty demand of & 12,50,000 and imposed a penalty of equal amount under section 11AC of the Central Excise Act, 1944 plus a penalty of 1,50,000 under rule 26 of Central Excise Rules, 2002. M/s Shankar & Sons intends to file an appeal with the Commissioner (Appeals) against the said adjudication order. Compute the quantum of pre-deposit required…

Saatvik Pvt. Ltd., which is engaged in the manufacture of excisable goods, started its business in July, 2014. The following details are provided by Saatvik Pvt. Ltd. for finished product manufactured by it: Particulars ) 9,000 kg of input ‘A’ purchased @ & 497.75 per kg (inclusive of central | 44,79,750 excise duty @ 12.36%) 13,500 kg of input ‘B’ purchased @ % 995.50 per kg (inclusive of | 1,34,39,250 central excise duty @ 12.36%) Capital goods purchased on 02.08.2014…

6. “Services provided by a person to another are taxable under service tax law.” Is there any exception(s) to this general rule whereby services provided by a person to oneself are taxable? Discuss by giving example. Basic Concepts of Service Tax 7. ‘Z' has entered into an agreement with XY Ltd. for running a canteen in XY Ltd.'s premises for its employees. XY Ltd. has provided the place on rent and reimburses certain expenses for maintenance and running the canteen.…

8. “Collection charges or service charges paid to any toll collecting agency are not liable to service tax.” Explain the validity of the statement with reference to the provisions of Finance Act, 1994. Place of Provision of Service

9. With reference to the position of service tax law as applicable on or after 01.10.2014, what would be the place of provision of service in the following independent cases? (i) PQ Trade Links of Hyderabad are appointed as commission agent by a foreign company for sale of its goods to Indian customers. In lieu of their services, PQ Trade Links receive a fixed percentage of commission from the concerned foreign company. (ii) ST Fabricators of Mysore has temporarily imported…