Clean Energy Cess on Imported Coke?
WE have been getting queries in the last few days about the Service Tax notifications and the new Cess in the Finance Act, 2010. One such query reads as:
Service tax and clean energy cess notifications have been issued. There is a state of confusion regarding the effective date of new services e.g Health Checkup etc for which no notifications have been issued till date. Further, there is a confusion regarding the levy of clean energy cess on imported coke, in this case also no notifications have been issued. Request you to kindly let us know the exact position.
Another Assessee wanted to know:-
Service Tax on Health Services: No separate notification notifying the effective date has come in this regard. Request you to clarify whether a separate notification is going to be issued or not. Whether this is applicable from 01.07.2010 or not.
All the new taxable services and the amendments proposed to the scope of existing taxable services are brought into effect from July 1, 2010, by virtue of Notification No. dated June 22, 2010. Separate notifications are not issued to bring into effect each and every taxable service or an amendment to the scope of existing taxable services separately. Notifications are issued only to provide for any specific exemption or abatement for the newly introduced taxable service or an existing taxable service.
As regards levy of 'clean energy cess' on imported coke, it may be noted that in terms of Section 83(3) of the Finance Act, 2010, a cess called 'clean energy cess' is levied as a duty of excise @ effective rate of Rs. 50 per tonne, on certain specified goods viz., raw coal, raw lignite and raw peat, which are being produced in India. There is no proposal as such to levy 'clean energy cess' separately on import of said specified goods or import of coke as per the provisions of Finance Act, 2010.
However, by virtue of Section 3 of the Customs Tariff Act, 1975, additional duty of customs in lieu of a duty of excise (CVD in common parlance) shall be levied on import of a like article manufactured or produced in India. Further, this aspect of levy of CVD on imports of the said specified goods was also clarified vide paragraph 6 of TRU letter D.O.F. No. 334/1/2010-TRU dated February 27, 2010. CVD on import of the said specified goods would be equivalent to the effective rate of 'clean energy cess' i.e. Rs. 50 per tonne.