Trade Notices or Facilitation
SOMETIME back, we carried an article titled "CENVAT Credit - Unreasonable burden cast by a Trade Notice" in our ST se GST tak column by one of our regular contributors. Also please see DDT-1952.
The highlight of the referred Trade Notice No. 10/2012 dated 13th July, 2012 issued by the Chandigarh-I Commissionerate is that it advises the trade to take reasonable steps to ensure that Service Tax has been paid by the input service provider before final manufacturer/service provider utilizes the CENVAT Credit.
On our message board, comments have been posted by the Joint Commissioner, C.Ex., Chandigarh-I Commissionerate justifying the issuance of the Trade notice.
We intend to steer clear of any controversy and not take sides with either the author of the article or the comments on the message board but refer to the Board Circular No. 49/Cus/04 dated 2nd September, 2004 on the subject "Guidelines relating to issue of Trade Notices / Public Notices" and which makes interesting reading.
Whether the Commissionerate is well within its right in issuing such an "advice" to the public is for the Board to decide.
Only time will tell.