Increasing time limit for availing CENVAT credit from 6 months to 1 year?
AS per the Proviso inserted to Rule 4(1) of the CENVAT Credit Rules, manufacturer or the provider of output service shall not take CENVAT credit after six months of the date of issue of any of the documents specified in sub- rule (1) of rule 9.
This time limit is considered to be too little by the Trade. This issue was discussed in the Conference of Chief Commissioners held on 11th and 12th of August 2014. It was decided that Chief Commissioners should discuss this issue with the trade representative bodies in their respective zones and recommend their suggestions to the Board for any further action.
Chief Commissioners are required to send their report to the Board by 31st October 2014. Maybe this will be a proposal for the next year's budget.
Important decisions of the Conference:
1. Refund vs Revenue Drive: Non-sanctioning of refund/drawback claim in the guise of revenue drive is not acceptable. All refund / drawback claim should be sanctioned within the time limit prescribed for such claims.
2. Show Cause Notice and Audit Commissionerates: SCN will be issued by the Audit Commissionerate and after issuance the SCN, the case file along with the supporting documents will be forwarded to the Executive Commissionerate.
3. Modus Operandi Circulars
a. On the matters where more than one view was possible, it was suggested that those cases should be referred to Board before issuance of any modus operandi circular
b. Chief Commissioners should strictly monitor that no M.O. circular be issued by the field formation as only DGCEI/DRI are authorized to issue the modus operandi circular.
4. Dispute Resolution
a. A committee would be constituted to collate and consider all major disputed issues so that departmental views can emerge on such issues. Member (L&J) will hold a conference to resolve disputed issues in this year subject to availability of data regarding the same.
b. Since proper appreciation and understanding of law is necessary to minimize disputes, hence, regular training workshop may be held in each zone and good case studies should be circulated among the field formations.
c. Addressing the concern about the threat of vigilance case on dropping of demand, Member (P&V) emphasised that vigilance action is not a threat for fair and judicious decision-making. Hence, the Chief Commissioners should not hesitate to decide the issues in fair and impartial manner. (Please see the pathetic case of an Income Tax Commissioner we report today; In any case Chief Commissioners don't adjudicate.)
5. Cadre Review: All promotion orders in the grade of Superintendents and Appraising officers should be issued in the forenoon of 30.9.2014, irrespective of the date of DPC. Cadre Controlling Chief Commissioners were directed to complete all DPCs by 15.09.2014.
Addressing the conference, MoS, Nirmala Sitharaman noted, "taxpayers are normally not aware about the steps taken by the department to introduce transparent and simplified procedures. It is important to educate the taxpayers and make them aware about these positive changes and dispel the preconceived notions that they may have towards the tax administration."
Madam, are you aware of 30 percent interest for delayed payment of Service Tax?
CBEC F.No. 296/93/2014-CX.9., Dated: September 17, 2014