Service Tax - Certificate Issued by Railways to be valid document for taking credit
SERVICE Tax on 'Service provided in relation to transport of goods by rail' came into effect from 01.10.2012. What is the document based on which credit can be taken by the recipient of this service? The Railways issue what they call RRs for the goods booked with them. Is this RR a valid document?
The Railway Board in a Circular issued on 28.09.2012 directed that:
On any written request from customers, CCM Office will issue a monthly consolidated certificate to be signed by an Officer authorized by CCM and duly countersigned by Dy CAO/T or officer nominated thereto, for each customer giving details of Service Tax collected from them during the previous month, date-wise and rake-wise with breakup of (a) Service Tax, (b) Education Cess, (c) Higher Education Cess, and (d) Total Service Tax. This can be used by the customers for getting credit of Service Tax.
So, the Railways had decided more than two years ago that the certificate issued by an officer in CCM office will be a valid document for taking CENVAT credit. The Railway Circular was precise and covered all the issues with abundant clarity. That's why they are able to run thousands of trains.
Now the CBEC has amended the CENVAT Credit Rules to include this certificate as one of the documents for taking credit.
A new clause "fa" has been inserted in Rule 9(1) as follows:
"(fa) a Service Tax Certificate for Transportation of goods by Rail (herein after referred to as STTG Certificate) issued by the Indian Railways, along with the photocopies of the railway receipts mentioned in the STTG certificate; or"
Is this amendment clarificatory and so retrospectively valid? Another bout of litigation?
Also please see 'CENVAT Roko' by Railways in DDT 2021
NOTIFICATION NO. , Dated: August 27, 2014