Budget amendments – We told you so….
IN Budget 2011, certain amendments are made to the provisions of Central Excise and Service Tax , rectifying anomalies which were pointed out by DDT earlier.
In DDT 1187 - 01.09.2009, it was pointed out: -
THE CBEC has finally come out with the notifications regarding the new service coming into effect from today. While there is 75% abatement for transport of goods by Road and a 70% abatement for transport by Rail, strangely there is no abatement for transport by waterways.
Now notification No 16/2011 ST dated 1st March 2011 has been issued to provide 75% abatement.
In DDT 1451 - 23.09.2010, it was pointed out that:
Construction service has been notified earlier under category 1 service and the export / import of this service depends on the place where the immovable property is located. Now the incidental new service, i.e., Special services provided by a builder etc. to the prospective buyers such as providing preferential location or external or internal development of complexes on extra charges [Section 65 (105) (zzzzu)] will fall under the residual category, which is a clear anomaly.
Now, notification Nos 12 and 13/2011 have been issued to specify (zzzzu) as category 1 service as pointed out by us.
In DDT 1510 - 20.10.2010, it was pointed out that:
The date of filing of quarterly returns by SSI units is being aligned with the date for non-SSI units so that all returns are required to be filed by the 10 th of the month following the said quarter.
However, the ER 1/ER 3 returns are prescribed under Rule 12 of the Central Excise Rules and Rule 9(7) of the CENVAT Credit Rules 2004. Rule 9(7) of the CENVAT Credit Rules still reads:
Provided that where a manufacturer is availing exemption under a notification based on the value or quantity of clearances in a financial year, he shall file a quarterly return in the form specified, by notification, by the Board within twenty days after the close of the quarter to which the return relates.
Therefore this rule also requires an amendment in harmony with Rule 12 of the Central Excise Rules, 2002.
Now the relevant rule has been amended vide Notification No 3/2011 CE(NT) dated 1.3.2011 as under:
In rule 9 of the said rules, in sub-rule (7), in the proviso, for the words “twenty days”, the words “ten days” shall be substituted with effect from the 1st day of March, 2011.
This is just a representative sample of the instances where the government listens to the people. We are not proud; we are grateful to the Board!