TIOL-DDT 216 · Wednesday, 5 October 2005 · story 1 of 5

Service Tax on Goods Transport – Board issues fresh clarifications

The confusion with Service Tax on goods transport continues and the Board is understood to have issued fresh clarifications yesterday on eligibility of cenvat credit on service tax paid by a receiver of the service when he is neither a manufacturer nor service provider. In another week the Right to Information is to come into force but the CBEC apparently wants to enjoy its freedom to conceal vital information from its stake holders till the last moment. Some very important clarifications have been given but the CBEC in its wisdom has chosen not to make the clarifications public. The clarifications are contained in a letter addressed to a Chief Commissioner and copies endorsed to all Chief Commissioners and Commissioners and DGs but not to the public who are the victims of the Government’s clarifications. It is tragic that the Board is so shy of making public clarifications especially a week before the Right to Information becomes effective. It is not as if the clarification is such a secret and classified document of the government that it has to be sent only to the Chief Commissioners. It has to ultimately reach the tax payer and then why so much of hiding? TIOL will get you full details of the clarification tomorrow.