Greetings from Team SA!

 Hon'ble FM Mr. Arun Jaitley presented his maiden Budget on 10.07.2014. 

Authority for Advance Rulings

 The Scheme of Advance Ruling is being extended to Resident Private Limited Companies.

Unit Quantity Codes

 The Schedules to the Customs and Central Excise Tariffs are being amended in respect of selected goods to match the Unit Quantity Codes prescribed therein with the ones that are actually used in trade and commerce.

Third Schedule of CEA

 Third Schedule of Central Excise Act being aligned to be in line with MRP based Notification.

Baggage Rules

 Baggage allowance increased from Rs.35000/- to Rs. 45000/-in respect of adult passengers who return to India after a stay of more than 3 days and from Rs.15000/- to Rs.17500/- within 3 days.

 Duty free allowance of cigarettes, cigars and tobacco reduced.

Safeguard duty

 Safeguard duty has been amended in line with Anti-dumping duty - if any material which attracts safeguard duty is imported by an EOU/SEZ and either cleared as such in domestic tariff area (DTA) or used in the manufacture of another article, which is cleared in DTA, then safeguard duty shall be levied on that portion of the material that is cleared as such or so used in another article which is cleared in DTA - Section 8B (2A) amended.

 Education Cess and SHE Cess are not leviable on clean energy cess, but shall be leviable on excise duty on coal.

 Exemption from excise duty is also available to sub-contractors for manufacture and supply of goods for or on behalf of the main contractor (who has won the bid for the project through ICB) for execution of the said project, subject to compliance of conditions specified, if any.

 Aircraft engines and parts thereof are eligible for customs duty exemption under S.No.454 of Notification No.12/2012-Customs, dated 17th March, 2012 when imported for servicing, repair or maintenance of aircrafts used for scheduled operations.

 Road construction machinery imported duty free under notification No.12/2012-Customs, dated 17.03.2012 [Sl.No.368] can be sold within 5 years of importation subject to payment of customs duty on depreciated value.

 Manner of distribution of common input service credit under Rule 7(d) of the Cenvat Credit Rules, 2004. (Also read "ISD - So Complex" in "sa corner")

Service Tax

 E - payment of service tax made mandatory for all, subject to certain exceptions.

 Bio medical waste disposal – exempted.

 Exemption to Technical testing and clinical trials of new drugs withdrawn.

 Education related exemption rationalised - back to square one. (Also read "Education and Service Tax" in "sa corner")

 Transportation of cotton, by rail / vessel / GTA exempted.

 Loading, unloading, packing and storage of cotton also exempted. 

 Air conditioned contract carriages liable to Service Tax.

 Amendments in SEZ exemption.

 Reverse charge for recovery agents.

 Reverse charge for directors of “body corporate” also.

 Substantial changes in rent - a -cab service. (Also read "Never rent-a-cab"  in "sa corner").

 Service Tax (Determination of Value) Rules, 2006 amended to merge Categories B & C under Rule 2 A of Works Contract Service to 70 %.

 Interest rates increased for delayed payment of Service Tax. (Also read "Draconian Interest in "sa corner")

 Point of Taxation Rules, 2011 amended to calculate the POT for reverse charge and the period reduced from six months to three months.

 Place of Provision of Services Rules, 2012 amended to include commission agents of goods also under the definition of “intermediary”. (Also read "Commission Agents - Beware" in "sa corner") 

Central Excise

 Full exemption from excise duty to goods supplied to National Technical Research Organisation - Notification No. 64/95 - CE dated 16th March, 1995 amended.

 Transfer / sale of goods procured prior to 1.3.2008 for use in projects financed by the UN or an international organization allowed - Notification No. 108/95 - CE dated 28th August, 1995 amended.

 Amendment to Notification No. 12/2012-CE dated the 17th March, 2012.

 Excise duty on goods required for the National AIDS Control Programme funded by Global Fund to fight AIDS, TB and Malaria exempted.

 Full exemption from excise duty on machinery required for setting up of compressed biogas plant (Bio-CNG) - Notification No. 33/2005 - CE  dated 8th September, 2005 amended.

 Excise duty on machineries required for initial setting up of solar energy production projects exempted - Notification No. 15/2010 - CE dated 27th February, 2010 amended.

 Double levy of cess on DTA clearances to 100% EOUs removed - Notification No. 23/2003 - CE dated 31st March, 2003 amended. 

 Intermediate goods manufactured and consumed captively for further manufacture of matches exempted - Notification No. 67/ 95 - CE dated 16th March, 1995 amended.

 Clean Energy Cess increased - Notification No. 03/2010 - CE dated the 22nd June, 2010 rescinded.

Central Excise Act, 1944

 Third parties to provide required information or face the music – Section 15A & 15 B introduced **

 Non - filers of monthly returns can also file applications before the Settlement Commission – Section 32E of CEA amended ***

 Limit to refuse allowing appeal by Tribunal raised from Rs.50000/- to Rs. 2 lakhs – Section 35B(1) amended ***

 No more draconian provisions relating to expiry of stay orders in 180 / 365 days – Section 35C(2A) of CEA amended ***

 Mandatory pre-deposit of 7.5 % and 10% of duty & penalty prescribed with a ceiling of Rs.10 Crores – Section 35F of CEA substituted *** (Also read "Stay @ Bay" in "before parting")

Finance Act, 1994

 “Radio taxi” out of negative list and Space selling for advertisement in Print media alone would be in negative list - Section 65B amended.

 Rules to be made for determination of rate of exchange – Section 67 A amended.

 Time limits prescribed for adjudication - Section 73 amended.

 In case of serious offences, though the details are available on records waiver of penalty would not be available henceforth - Section 80 amended.

 Power to introduce explanation in a notification retrospectively but within one year - Section 83 amended to include Sections 5A (2A).

 Power to recover dues of a predecessor from the assets of a successor purchased from the predecessor – Section 87 amended.

 Deterrent measures such as freezing of cenvat credit etc, to apply for service tax cases also - Section 94 amended.

** Mutatis Mutandis amendments are being made in Finance Act, 1994.

*** Mutatis Mutandis amendments are being made in the Customs Act, 1962 & the Finance Act, 1994.

 CENVAT Credit Rules, 2004

 Transfer of credit by a large taxpayer (LTU) from one unit to another disallowed – Rule 12 A amended. (Also read "Bid Adieu to LTU" in "sa corner")

 “Place of removal” defined – New Sub- rule 2 (qa) inserted.

 Cenvat Credit of inputs and input services to be taken within 6 months from the date of the document - Not applicable to Capital Goods – Sub-rule 4(1) (for input credit) and Sub-rule 4(7) (for input service credit) amended.

 When service tax on input service is paid on reverse charge fully by the recipient, cenvat credit of such input service can be taken immediately after such payment – No need to remit the value – Proviso to Sub-rule 4 (7) substituted.

Central Excise Rules, 2002

 E - payment is being made mandatory for all assessees, subject to certain exceptions – Sub-rule 8(1B) inserted.

 In case of default in payment of duty, the assessee shall pay a penalty of 1% per month on the amount of duty not paid for each month or part thereof – Sub- rule 8(3A) substituted.

C. Ex. Valuation Rules, 2000

 Sale price below manufacturing cost to be accepted as transaction value if there is no additional consideration – FIAT ratio undone – Rule 6 amended.