Air Travel – If aircraft operator avails CENVAT Credit, no exemption:
In addition to the above, Board issued notifications to provide for concessional rate of service tax on domestic (any class) and international (economy class) air travel subject to non-availment of CENVAT Credit on inputs used for providing taxable service ( probably the Board forgot to include input services and it may come out with an amendment subsequently or was it deliberate – only time can tell ).
Mining – Credit on Dumpers:
Further, Board amended CENVAT Credit Rules, 2004 to allow credit on dumpers, tippers registered in the name of output service providers engaged in providing ‘site formation and clearance service' and ‘mining or mineral exploration service'. In June 2009, we had carried an article - CENVAT Credit Rules 2004 need a re-look! by a Superintendent suggesting this amendment. It took the BOARD just twelve months to do so. A Netizen called me up and said, “ Either they should work in field or Supdts should be posted in Board. ”
Didi Does it Again:
As usual, the taxability of transport of goods by rail and exemptions related thereto was pushed further to January 2011. Probably Didi's strong arm twisting is forcing the Finance Ministry to perennially dodge imposition of levy on this taxable service.
Notifications were also issued to clarify the scope and extent of levy, applicability of provisions of Excise Act, exemption from levy of ECess and SHE Cess etc. on ‘clean energy cess' and also notified Clean Energy Cess Rules, 2010.