Service Tax On Fumigation - Board Issues Corrigendum
IN Circular No. 132/1//2011-ST., Dated: January 12, 2011, (Please See DDT 1528 – 13.01.2011) the CBEC explained that, “As a matter of abundant precaution, Government had also issued Notification No. 41/2007-ST dated 6.10.2007, as amended by Notification No. 42/ 2007-ST dated 29.11.2007 to exempt specialised cleaning services of containers used for export goods. This was in line with the international practice of making the export consignments free from taxation in the country of its origin.
And cautioned that, “the wordings of this circular cannot be used to interpret the scope of service defined under Section 65 (105) (zzzd) of the Finance Act, 1994”
Now Board clarifies that what they meant was, “the wordings of this Notification” and not “the wordings of this circular”
This seems to be an unwanted and hasty corrigendum. What was there in the original Circular was good enough. The notification did not clarify anything – it simply exempted a service for export. In any case this notification had been superseded as pointed out by DDT. Avoidable Confusion?
CBEC Corrigendum in F.No. 354/69/2010-TRU., Dated: January 20, 2011