CA Yogesh Sharma

Central Excise:

1. Cenvat credit: Cenvat credit on inputs and input services should be availed within a period of six months from the date of issuance of invoice, bill, challan etc.

(Effective 1st September 2014)

2. Cenvat Credit in case of Reverse Charge : Credit will be allowed after the service Tax is paid. (For Full & Partial both)

(Effective 11th July 2014)

3. Amendment in Rule 12A(4) of CCR 2004. Now only Cenvat Taken on or before 10-07-2014 can be transferred to other premises (Transfer of Cenvat to other premises by LTU)

(Effective 11th July 2014)

4. Pre-deposit: Mandatory 7.5% pre- deposit of duty demanded/ penalty imposed or both for filing before the Commissioner (Appeals) or Tribunal (first stage) and 10% duty demanded/ penalty imposed or both for filing Tribunal (second stage). Pre-deposit subject to a ceiling of Rs. 10 crore

(effective from the date when the Finance Act 2014 becomes effective)

5. Appeal: Appeal against Tribunal orders on issues involving taxability, excisability to lie directly before the Supreme Court, in addition to the appeals on involving rate and value related disputes

(effective from the date when the Finance Act 2014 becomes effective)

6. Insertion of Rule 8 (1B) in CE Rules 2002 Every assessee shall electronically pay duty through internet banking :

(Effective Date 01st October 2014)

7. Substitution of Rule 8(3A) in CE Rules 2002: If the assessee fails to pay the duty declared as payable by him in the return within a period of one month from the due date, then the assessee is liable to pay the penalty at the rate of one per cent. on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues .

(Effective Date: Date of Publication in official Gazette

8. Excise Valuation: Supreme Court’s decision in the case of FIAT undone. Valuation Rules amended to provide that even where excisable goods are sold at a loss, Excise duty shall be payable on the transaction value, and not the notional market value (effective immediately)

Amendment in Rule 6: Proviso to Rule 6 befor explanation 1: Provided that where price is not the sole consideration for sale of such excisable goods and they are sold by the assessee at a price less than manufacturing cost and profit, and no additional consideration is flowing directly or indirectly from the buyer to such assessee, the value of such goods shall be deemed to be the transaction value.” .

Service Tax

9. Reverse charge: Point of taxation for service tax to be deposited on reverse charge mechanism to be payment date or the first day after a period of three months from the date of invoice, whichever is earlier

(effective 1 October 2014)

10. Valuation of works contract: Categories of works contracts (viz relating to maintenance, repair, recondition, restoration and others category clubbed

(effective 1 October 2014)

11. Interest rates: Interest rates on delayed payment of service tax increased (up to 30%)

(effective 1 October 2014):

– Delay up to 6 months: 18%

– Delay of 6 months to 1 year: 18% for first six months and 24% beyond 6 months

– Delay of more than 1 year: 18% for first six months, 24% for six months and 30% for the period of delay beyond 1 year

12. SEZ: Procedure for availing exemption for services provided to SEZ units/ developers (i.e . obtaining of forms A1 and A2) made time bound

(effective immediately)

13. Advertisement services: Service tax to be payable on sale of space or time for advertisements on internet websites, out-of-home media, bill boards, conveyances, buildings, cell phones, ATM machines, tickets, commercial publications, aerial advertising etc.

(effective from a date to be notified after the. Finance Act 2014 becomes effective)


14. Advance ruling: Resident private limited companies now eligible to seek Advance ruling

(effective immediately)

(Author may be reached at [email protected])

More Under Excise Duty


  1. CA. Yogesh Sharma says:

    Dear Ajay Rastogi Ji, CAS 4 is still applicable you need to prove to the revenue that you no additional consideration is flowing directly or indirectly from the buyer to such assessee.

  2. Krishnamohan says:

    Credit – Reverse Charge Mechanism (RCM) – If the man power provider is not under Service Tax Limits (10 Lac in Fin Yr) and not taken S.T.Registration. We refer the changes as above. Man power receiver has to pay 75% S.T. as per RCM and the service provider will not pay since he is not in the purview of S.T

    In this, whether the service recipient can avail the S.T paid by him or not?

    Pl clarify us.

  3. MUKESH says:

    we delay 62 days in payment of education cess on excise duty .(due on 05.09.2013 and we have paid on 05.11.2013). Duty credit amount available 35-40 lacs with dept. continuously but we have not cess amount available for takingi credit. excise dept. issued show cause notice in which they demanded to deposit duty against clearance materials for the period 06.09.2013 to 04.11.2013. as we know that cess can not be treated as a duty.

    you are requested to clarify the issue.

  4. S.KUMAR says:

    Sir, Pls. let me know the clarrification on return filing (central Excise)
    whether it is monthly (ER-1) or Quarterly (ER-3). Small industry having turnover of less than Rs.4/- crore p.a. last many years and filing ER-3 quarterly return, but they are utilising cenvat credit and paying full rate of duty. Now the Central Excise Dept. insisting us to file monthly return (ER-1) and they are saying (if u didn’t utilise cenvat credit and paying concessional rate of duty only – eligible to file ER-3 quarterly return).

    Kindly clarrify shall we continue to file ER-3 (qly return) upto Rs.4/- crore
    turn over p.a. or shall we change to monthly return (ER-1).

  5. ajay rastogi says:

    The amendment in provision of Rule-6 of Central Excise valuation rules, “we can transfer the goods as per transaction value fixed by the mfr without adding any profit margin or below std. cost,” is correct, it means there will no cas-4 formula applied on transfer price.

    Secondly please advise in case of service tax reverse mechanism , now we can avail all the amount of cenvat credit ,which is deposited partially or 100% by the recipient.

  6. Geetha says:

    Sir, Please send us budget 2014-2015 Cenvat credit on inputs and input services should be availed within a period of six months from the date of issuance of invoice, bill, challan etc.

    Question 1: Credit taken from invoice date
    Question 2: Credit utilised from invoice date which is correct

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January 2021