WHAT IS GST?
GST i.e.Goods and Service Tax is a unified tax that replaces several indirect taxesleviedby the Central Government and the State Government(s)....
Read more
Circular No. 899/19/2009-CX
F.No.267/90/2009-CX-8 (Pt.1)
Government of India Ministry of Finance Department of Revenue (Central Board of Excise & Customs) New Delhi, dated the 25th September, 2009
Subject: Clarification on some important issues related to the ceramic tile industry -reg.
Attention is invited to Notification No. 05/2006-CE dated 01.03.06 which stipulates that Central Excise duty at 8% will be charged on Ceramic tiles manufactured in a factory not using electricity for firing the kiln on the condition that “if no credit of the duty paid on the inputs used in or in relation to the manufacture of such ceramic tiles has been taken under rule 3 or rule 13 of the CENVAT Credit Rules, 2004”. Representations have been received from trade & industry stating that objections are being raised by the field formations holding that taking of Cenvat credit on input services would violate the condition of the notification.
1.1 The matter has been examined. It is hereby clarified that the notification debars taking of credit on inputs and not on input services. Further input and input services are separately defined in the CENVAT Credit Rules, 2004, and the term ‘input’ does not include ‘input services’. Therefore, taking of credit on input service would not violate the condition of notification.
2. Attention is also invited to the classification of Abrasive stones for the purpose of availing Cenvat Credit. It may be recalled that till the operation of 6 digit CET, Abrasive stones were classifiable under 680110 and was covered under the definition of capital goods as per Rule 2(a)(A)(i) of CENVAT Credit Rules, 2004. However, after the introduction of 8 digits CET, with effect from 28.02.2005, abrasive stones were classified under 6805. Therefore, a view was taken that the abrasive stones came out of purview of capital goods after 28.02.2005. Vide Notfn. No. 07/2007-CE (NT) dated 21.02.2007, the heading 6805 was included in the definition of capital goods. Representations have been received from the trade & industry that because of non-coverage of abrasive stones under the definition of ‘capital goods’ during the period 28.02.2005 to 20.02.2007, the field formations are taking a view that these goods are in the nature of ‘input’, therefore, the credit taken on such abrasive stones during this period, disentitles the units from availing benefit of notification no. 05/2006-CE.
2.1. The matter has been examined. The notification No. 07/2005-CE (NT) dated 24.02.2005 was issued to take care of such issues arising due to transition from 6 digit to 8 digit CET. Under the said notification, Central Excise (Removal of Difficulties) Rules, 2005 have been notified. The said Rules provides that the reference to erstwhile chapter, headings, sub-heading or tariff item under 6 digit CET shall be deemed to have been substituted by the corresponding new chapter, headings, sub-heading or tariff item under the 8 digit CET in any of the rules made under Section 37 of the Central Excise Act. The Cenvat Credit Rules have also been framed under Section 37, therefore, it is clarified that abrasive stones which were classified under heading 680110 under 6 digit tariff, would be treated as capital goods even though the same were classified under heading 6805 in the eight digit tariff for the period 28.02.2005 to 21.02.2007. Therefore, benefit of notification cannot be denied on this ground.
3. Trade & Industry as well as field formations may be suitably informed.
4. Receipt of this circular may kindly be acknowledged.
5. Hindi version will follow.
|
GST i.e.Goods and Service Tax is a unified tax that replaces several indirect taxesleviedby the Central Government and the State Government(s)....
Read moreIn pre-GST regime, goodswere liable to: (i) Excise Duty- on manufacture of goods; (ii) VAT/CST- on sale of goods; (iii) Entry tax- on ...
Read moreGST is levied on every taxable person. Taxable person means a person who carries on any business at any place in India. Such . ..
Read moreGST is a unified tax which is levied on: (i) goods; (ii) services and (iii) a mix of goods and/or services. Any supply of goods or services . .. ...
Read moreGST India Solution is an effort of firm of professionals who welcome implementation of GST. This is an interactiveplatformthat aspires to disseminate right knowledge to professionals, practitioners and public at large. This platform has beenfloatedbya firm of Chartered Accountants relentlessly working in field of direct and indirect taxes since early 1985.
READ MORE
Our core competence is statutory compliance, advisory, corporate tax planning and appellate matters of direct and indirect taxesandcorporate training sessions on GST.
The senior partner of the firm has to his credit several professional publications viz., Delhi Sales Tax Right to Use Goods Act, Delhi VAT, Maharashtra VAT, West Bengal VAT, Haryana VAT published by Taxmann. Madhya Pradesh VAT and Chhattisgarh VAT were published by Suvidha Law House, Bhopal. He has also addressed seminars on indirect taxes organized by professional bodies like ICAI, IMA, NIFM etc. and has also contributed articles on subjects of pro. . . . .