EOUs move from Customs to Central Excise - What about Service Tax?
AS per instructions contained in the Board Circular No.31/2003 dated 07.04.2003, in the port cities, the administrative control over all the EOUs including the EHTP and STP units falling within the territorial jurisdiction of Commissioner of Customs, is with the Commissioner of Customs and at other places, the administrative control over EOU/EHTP/STP units is with the jurisdictional Commissioner of Central Excise. The only exception has been in respect of Bangalore Customs where the Commissioner of Customs, Bangalore is having Administrative Control over all such units within his territorial jurisdiction.
In order to facilitate an uniform and better administration and control of such EOUs and also to facilitate the shift to Goods and Services Taxes (GST) regime in future, the Board has decided that the EOU units functioning in the jurisdiction of Customs including port cities, will henceforth be under the Administrative Control of the respective jurisdictional Central Excise Commissionerate with effect from 31-07-2010.
Bangalore Central Excise I Commissionerate has issued a Trade Notice No.27/2010, stipulating that all the 100% EOUs and EHTPs shall stand transferred to the jurisdiction of the respective Range/Division of Bangalore-I/II/III Central Excise Commissionerates and that all STPs shall stand transferred to Service Tax Commissionerate, Bangalore with effect from 31.07.2010.
It seems that after the issue of this Trade Notice, Director General, Export Promotion has clarified that all EOUS/EHTP and STPI Units presently under the administrative control of Bangalore Customs Commissionerate shall be transferred to respective jurisdictional Central Excise Commissionerate only. So the Bangalore Commissioner has issued a corrigendum to his Trade Notice.
A Departmental officer asks, “While Service Tax matters pertaining to the LTU fall under Bangalore LTU Commte there is no reason why Service Tax Matters pertaining to EOU / EHTP / STPI also should not go to concerned CE Division. This will reduce the huge backlog in Service TAX REFUNDS and Demands of ST Commte of BANGALORE. All Software companies will also benefit if jurisdiction goes to Central Excise.” Seems to be a really concerned officer.