More on service tax e-refund E-refund of service tax through customs EDI was made available to exporters as an option under notification 52/2011-ST dated 30 December 2011, as earlier reported in these columns. The clarifications given by the CBEC on this issue under circular 149/18/2011 dated 16 December 2011 are also to be noted. The circular informs us that option to avail of the electronic route for service tax refund (under which refund is given at the rates specified in the notification) may be exercised by mentioning in the shipping bill the chapter / subheading number at the two digit or four digit level, as mentioned in the schedule of rates. This must correspond with the RITC code entered against the goods in the electronic shipping bill. If the exporter does not wish to exercise the option of e-refund, he must enter 9801 instead of the code for the goods. The circular further clarifies that the same bank account must be used for both drawback and service tax refunds.

1. UDYOG TAX NEWS FLASH
13TH JANUARY 2012
Update 13 January 2012
Service tax return e-filing – last date extended again, to 20 Jan
The CBEC has further extended the last date for filing half-yearly service tax return for the period
April-September 2011, to 20 January 2012. In order no.
1/2012 issued for this purpose, it has referred to
difficulties that assessees continue to face with the e-
filing process. The order can be seen at
http://www.servicetax.gov.in/notifications/notfns-
2012/st-odr01-09jan12.htm.
.But these difficulties in e-filing are nothing new. So,
why was e-filing hurriedly made compulsory, without
first fixing the glitches?
More on service tax e-refund
E-refund of service tax through customs EDI was made
available to exporters as an option under notification iTAX is combo of
52/2011-ST dated 30 December 2011, as earlier
reported in these columns.
The clarifications given by the CBEC on this issue Indirect Taxation For
under circular 149/18/2011 dated 16 December 2011 are
also to be noted. The circular informs us that option to Gobal & Local ERP’s
avail of the electronic route for service tax refund (under
which refund is given at the rates specified in the vendors or customers
notification) may be exercised by mentioning in the
shipping bill the chapter / subheading number at the two who desire a local
digit or four digit level, as mentioned in the schedule of
rates. This must correspond with the RITC code entered
against the goods in the electronic shipping bill. If the taxation modules for
exporter does not wish to exercise the option of e-
refund, he must enter 9801 instead of the code for the their ERPs
goods. The circular further clarifies that the same bank
account must be used for both drawback and service tax
refunds.
It may be recalled that the rates specified for service tax refund by the electronic route are
substantially lower than the actuals. Refund of actual service tax paid on specified input services can
still be availed, by application to the jurisdictional Assistant or Deputy Commissioner with the
relevant documents.
The circular can be seen at http://www.servicetax.gov.in/circular/st-circular11/st-circ-149-2k11.htm.
Udyog Software (India) Ltd (www.udyogsoftware.com)
Phone: 022-67993535, Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual
or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the particular situation. Page 1

2. Customs payments for any station using ICEGATE, through authorized banks
The CBEC has issued a list of 17 authorised banks (different for different locations) through which
customs duty can be paid through the ICEGATE portal, for any customs station. Alongwith
electronic filings and self-assessment, this is a facilitation measure for importers. The list can be
downloaded from http://cbec.gov.in/cs-nom-banks.htm.
Customs: Tariff value of brass scrap & poppy seeds changed
Customs duty on certain products is assessed on the basis of a notified value rather than transaction
value. This „tariff value‟ is notified in terms of section 14(2) of the Customs Act 1962. The latest
notification in this regard, 2/2012-Customs (NT) dated 13
January 2012, notifies changes in the tariff value of brass
scrap (all grades now USD 4017 per MT) and poppy seeds
(now USD 1970 per MT). The notification can be seen at
http://cbec.gov.in/customs/cs-act/notifications/notfns-
2012/cs-nt2012/csnt02-2012.htm.
Anti-dumping duty notifications
The government has notified
› continuance of anti-dumping duty, now @ USD
2.69 per kilogram on saccharin imported from
China. [Notification 7/2012-Customs(ADD) dated
13 January 2012]
› continuance of anti-dumping duty, now @ USD
1.95 per kilogram on cellophane transparent film
produced in or exported from China [notification
5/2012-Customs (ADD) dated 13 January 2012]
› imposition of anti-dumping duty on phosphoric
acid (all grades except agricultural grade) at
different rates for different exporters from Israel
and Taiwan.[notification 4/2012-Customs (ADD)
dated 13 January 2012]
› continuance of anti-dumping duty, at the rates
notified, on nylon filament yarn (excluding high
tenacity yarn of nylon and fishnet yarn of nylon)
imported from or produced in China, Korea,
Malaysia, Thailand, Chinese Taipei, or Indonesia.
[notification 3/2012-Customs (ADD) dated 13
January 2012]
› continuance of anti-dumping duty, at the rates
notified, on silk fabrics 20-100 grams per metre,
imported from or produced in China. [notification
2/2012-Customs (ADD) dated 13 January 2012]
Udyog Software (India) Ltd (www.udyogsoftware.com)
Phone: 022-67993535, Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual
or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the particular situation. Page 2

3. Nepal exports: excise procedures
The changes in treatment of exports to Nepal had been earlier highlighted in these columns. The
changes are effective from 1 March 2012. Now the government has issued a circular 958/1/2012
dated 13 January 2012, on the subject, which can be viewed at http://cbec.gov.in/excise/cx-
circulars/cx-circ12/958-2012cx.htm. The circular elucidates, with reference to the new notifications,
that pursuant to the revised treaty of trade between India and Nepal, exports to Nepal have been put
on par with exports to other countries. (Now only Bhutan is treated differently.)
List of documents to be filed with refund claims
The CBEC has helpfully provided, on its website, a list of documents that must be filed with refund
claims in excise, customs and service tax. See http://cbec.gov.in/refund-rebate/refundrebate-docs.pdf.
Education cess on reversal amount under Rule 6 of Cenvat Credit Rules?
Where a manufacturer produces both exempted and dutiable goods and is unable to segregate the
inputs to limit the credit, the rules allow him to reverse the credit later, after the close of the month.
(Rule 6(3) of the Cenvat Credit Rules.)
Now some “smart” officers in the field are demanding education cesses on the amount of reversal.
They say that the amount debited to Cenvat credit is a duty, because such a debit is not mentioned in
the list in Rule 3 of the other uses to which Cenvat credit may be put.
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Update Written
By Radha Arun,
Consultant To
Udyog Software ( India) Ltd
Udyog Software (India) Ltd (www.udyogsoftware.com)
Phone: 022-67993535, Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual
or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the particular situation. Page 3