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PROFESSIONAL PROGRAMME

SUPPLEMENT

FOR

ADVANCE TAX LAWS AND PRACTICE

(INDIRECT TAX PART - B)

(Relevant for Students appearing in June, 2017 Examination)

MODULE 3- PAPER 7

Disclaimer- This document has been prepared purely for academic purposes only and it does not necessarily reflect the views of ICSI. Any person wishing to act on the basis of this document should do so only after cross checking with the original source.

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Students appearing in June, 2017 Examination shall note the following:

1. For Direct taxes, Finance Act, 2016 is applicable.

2. Applicable Assessment year is 2017-18 (Previous Year 2016-17).

3. Since, Wealth Tax Act, 1957 has been abolished w.e.f. 1st April, 2016. The questions from the same are not being asked in examination from December 2015 session onwards.

4. For Indirect Taxes, all changes made by the Finance Act, 2016 are also applicable for June, 2017 examination.

5. Students are also required to update themselves on all the relevant Notifications, Circulars, Clarifications, etc. issued by the CBDT, CBEC & Central Government, on or before six months prior to the date of the examination.

The supplement is to facilitate the students to acquaint themselves with the amendments in tax laws upto December, 2016, applicable for June, 2017 Examination. The supplements cover the major Notifications and Circulars issued by CBEC from 1st January, 2016 to 31st December, 2016. The students are advised to read their Study Material (2016 Edition) along with these supplement. The Study Material (2016 Edition) of Advance Tax Laws and Practice are available at the Institute website at the following weblink: https://www.icsi.edu/AcademicCorner/StudyMaterialJuly2017.aspx

In the event of any doubt, students may write to the Institute for clarifications at academics@icsi.edu

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TABLE OF CONTENT

SUPPLEMENT FOR ADVANCE TAX LAWS AND PRACTICE Page No.

PART B-INDIRECT TAXATION (MAJOR NOTIFICATIONS AND CIRCULARS JANUARY- DECEMBER 2016)

Service Tax

5-24

Goods and Service Tax ‘GST’ - REVISED MODEL GST LAW

25-28

Customs

29-43

Central Excise

44-57

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PART B– INDIRECT TAXATION

SERVICE TAX – NOTIFICATIONS

NOTIFICATION NO. 53/2016-SERVICE TAX DATED 19TH DECEMBER, 2016

Service Tax (Amendment) Rules, 2016

These rules may be called the Service Tax (Fifth Amendment) Rules, 2016.

Objective : To amend Service Tax Rules, 1994 so as to allow a person located in non taxable territory providing online information and database access or retrieval services to a non-assesse online recipient to issue online invoices not authenticated by means of a digital signature for a period upto 31st January, 2017.

In the Service Tax Rules, 1994, in rule 4C, in sub-rule (1), the following proviso shall be inserted, namely:-

‘Provided that a person located in non-taxable territory providing online information and

database access or retrieval services to a non-assesse online recipient located in taxable

territory may issue online invoices not authenticated by means of a digital signature for a

period upto 31st January, 2017’

NOTIFICATION NO. 52/2016-SERVICE TAX DATED 8TH DECEMBER, 2016

Amendment in Notification No.25/2012 (Mega Exemption Notification) -Service Tax, dated the 20thJune, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 467 (E), dated the 20thJune, 2012

Objective: To amend exemption notification No. 25/2012-ST dated 20.06.2012 so as to exempt services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service.

No.25/2012-Service Tax, dated the 20thJune, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20thJune, 2012, namely:-

In the said notification, in the opening paragraph, after entry 63, the following entry shall be inserted, namely,-

“64. Services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service.

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Explanation. — For the purposes of this entry, “acquiring bank” means any banking

company, financial institution including non-banking financial company or any other

person, who makes the payment to any person who accepts such card.”

NOTIFICATION NO. 51/2016-SERVICE TAX DATED 30TH NOVEMBER, 2016

Place of Provision of Services (Second Amendment) Rules, 2016.

Objective: To amend Place of Provision of Services Rules, 2012 so as to exclude 'online information and database access or retrieval services' from the definition of 'telecommunication services'.

In the Place of Provision of Services Rules, 2012, in rule 2, in clause (q), after the words

“include broadcasting”, the words “and online information and database access or

retrieval” shall be inserted.

The amendment was brought into force on the 1st day of December, 2016.

NOTIFICATION NO. 50/2016-SERVICE TAX DATED 22ND NOVEMBER, 2016

Objective: To amend notification No. 20/2014-ST dated 16th September, 2014 so as to

provide exclusive jurisdiction to LTU-Bangalore with respect to online information and

database access or retrieval services provided or agreed to be provided by a person located

in non-taxable territory and received by a ‘non-assesse online recipient’.

NOTIFICATION NO. 49/2016-SERVICE TAX DATED 9TH NOVEMBER, 2016

Objective: To put compliance liability of service tax payment and procedure on to the

service provider located in the non-taxable territory with respect to online information and

database access or retrieval services provided in the taxable territory to ‘non-assesse

online recipient’.

Amendment in Notification No. No. 30/2012 (Reverse Charge Notification) -Service Tax, dated the 20th June, 2012,

In the said notification,-

(a) in paragraph I, in clause (B), after the words “located in the taxable territory”, the words “other than non-assessee online recipient” shall be inserted;

(b) In paragraph (II), in the TABLE, against Sl. No. 10, in the entry under column (2), after the words “located in the taxable territory”, the words “other than non-assesse online recipient” shall be inserted;

(c) after Explanation II, following shall be inserted, namely:-

‘Explanation III. For the purposes of this notification, “non-assesse online recipient” has the same meaning as assigned to it in clause (ccba) of sub-rule 1 of rule 2 of Service Tax Rules, 1994.’.

2. This notification shall come into force on the 1st day of December, 2016.

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NOTIFICATION NO. 48/2016-SERVICE TAX, DATED 9TH NOVEMBER, 2016

Service Tax (Fourth Amendment) Rules, 2016 applicable w.e.f 1st December, 2016

Objective: To amend Service Tax Rules, 1994 so as to prescribe that the person located in non-taxable territory providing online information and database access or retrieval services to ‘non-assesse online recipient’, as defined therein, is liable to pay service tax and the procedure for payment of service tax.

In the Service Tax Rules, 1994,-

(i) in rule 2, in sub-rule (1),-

(a) after clause (ccb), the following clause shall be inserted, namely:-

‘(ccba) “non-assesse online recipient” means Government, a local authority, a governmental authority or an individual receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory;

Explanation.- For the purposes of this clause, “governmental authority” means an authority or a board or any other body :

(i) set up by an Act of Parliament or a State legislature; or

(ii) established by Government,

with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243Wof the Constituion;’;

(b) after clause (ccc), the following clause shall be inserted, namely:-

‘(ccd) “online information and database access or retrieval services” means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology and includes electronic services such as,-

(i) advertising on the internet;

(ii) providing cloud services;

(iii)provision of e-books, movie, music, software and other intangibles via telecommunication networks or internet;

(iv) providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;

(v) online supplies of digital content (movies, television shows, music, etc.);

(vi) digital data storage; and

(vii) online gaming;’;

(c) in clause (d),-

(i) in sub-clause (i),-

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(a) in item (G), after the words “taxable service”, the words “other than online information and database access or retrieval services,” shall be inserted;

(b) after item (G), following item shall be inserted, namely:-

“(H) in relation to services provided or agreed to be provided by way of online information and database access or retrieval services, by any person located in a non-taxable territory and received by any person in the taxable territory other than non-assesse online recipient, recipient of such service;”;

(ii) in sub-clause (ii), the following provisos shall be inserted, namely:-

“Provided that in case of online information and database access or retrieval services provided or agreed to be provided by any person located in a non-taxable territory and received by non-assesse online recipient, provider of service located in a non-taxable territory shall be the person liable for paying service tax:

Provided further that in case of online information and database access or retrieval services provided or agreed to be provided by any person located in a non-taxable territory and received by non-assesse online recipient, an intermediary located in the non-taxable territory including an electronic platform, a broker, an agent or any other person, by whatever name called, who arranges or facilitates provision of such service but does not provides the main service on his account shall be deemed to be receiving such services from the service provider in non-taxable territory and providing such services to the non-assesse online recipient except when such intermediary satisfies all the following conditions, namely :-

(a) the invoice or customer’s bill or receipt issued or made available by such intermediary taking part in the supply clearly identifies the service in question, its supplier in non-taxable territory and the service tax registration number of the supplier in taxable territory;

(b) the intermediary involved in the supply does not authorise the charge to the customer or take part in its charge i.e. intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-assesse online recipient and the supplier of such services;

(c) the intermediary involved in the supply does not authorise delivery;

(d) the general terms and conditions of the supply are not set by the intermediary involved in the supply but by the service provider:

Provided also that in case of online information and database access or retrieval services provided or agreed to be provided by any person located in a non-taxable territory and received by non-assesse online recipient, any person located in taxable territory representing such service provider for any purpose in the taxable territory shall be the person liable for paying service tax:

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Provided also that in case of online information and database access or retrieval services provided or agreed to be provided by any person located in a non-taxable territory and received by non-assesse online recipient, if the service provider does not have a physical presence or does not have a representative for any purpose in the taxable territory, the service provider may appoint a person in the taxable territory for the purpose of paying service tax and such person shall be liable for paying service tax:

Provided also that in case of online information and database access or retrieval services provided or agreed to be provided by any person located in a non-taxable territory and received by any person located in the taxable territory, person receiving such services shall be deemed to be located in the taxable territory if any two of the following non-contradictory conditions are satisfied, namely :-

(a) the location of address presented by the service recipient via internet is in taxable territory;

(b) the credit card or debit card or store value card or charge card or smart card or any other card by which the service recipient settles payment has been issued in the taxable territory;

(c) the service recipient’s billing address is in the taxable territory;

(d) the internet protocol address of the device used by the service recipient is in the taxable territory;

(e) the service recipient’s bank in which the account used for payment is maintained is in the taxable territory;

(f) the country code of the subscriber identity module (SIM) card used by the service recipient is of taxable territory;

(g) the location of the service recipient’s fixed land line through which the service is received by the person, is in taxable territory:

Provided also that in case of online information and database access or retrieval services provided or agreed to be provided by any person located in a non-taxable territory and received by non-assesse online recipient, a person receiving such services shall be deemed to be a non-assesse online recipient, if such person does not have service tax registration under these rules.”;

(ii) in rule 4, in sub rule (1), after third proviso, the following proviso shall be inserted, namely:-

“Provided also that a person located in non taxable territory liable for paying the service tax in the case of online information and database access or retrieval services may make an application for registration in form ST-1A for registration within a period of thirty days from the date on which the service tax under section 66B of the Act is levied or the person located in non taxable territory has commenced supply of taxable services in the taxable territory in India and notwithstanding anything contrary in these rules, the registration shall be deemed to be granted in form ST-2A from the date of receipt of the application.”;

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(iii) in rule 4A, in sub-rule 1, after the sixth proviso, the following proviso shall be inserted, namely:-

“Provided also that in case of online information and database access or retrieval services provided or agreed to be provided in taxable territory by a person located in the non-taxable territory, an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered, but containing name and address of the person receiving taxable service to the extent available and other information in such documents as required under this sub-rule.”;

(iv) in rule 7, in sub-rule (1) after the letters and figure “ST-3A”, the word, letters and figure

“or ST-3C” shall be inserted.

NOTIFICATION NO. 47/2016-SERVICE TAX DATED 9TH NOVEMBER, 2016 APPLICABLE FROM 1ST DECEMBER, 2016

Amendment in Notification No.25/2012 (Mega Exemption Notification) -Service Tax, dated the 20thJune, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 467 (E), dated the 20thJune, 2012

Objective : To amend notification No. 25/2012-ST dated 20th June , 2016 so as to withdraw exemption from service tax for services provided by a person in non-taxable territory to Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory.

In the said notification,-

(a) in the opening paragraph, in entry 34, after clause (c), the following proviso shall be inserted, namely,-

“Provided that the exemption shall not apply to online information and database access or retrieval services received by persons specified in clause (a) ;”;

(b) in paragraph 2, after clause (xaa), the following clause shall be inserted, namely: -

„(xab) “online information and database access or retrieval services” has the same meaning as assigned to it in clause (ccd) of sub-rule 1 of rule 2 of the Service Tax Rules, 1994;‟.

NOTIFICATION NO. 46/2016-SERVICE TAX DATED 9TH NOVEMBER, 2016 APPLICABLE FROM 1ST DECEMBER, 2016

Objective: To amend Place of Provision of Services Rules, 2012 so as to amend the place of provision of ‘online information and database access or retrieval services’ with effect from 01.12.1016.

Place of Provision of Services (Amendment) Rules, 2016.

(i) in rule 2, for clause (l), following clause shall be substituted, namely:-

„(l) “online information and database access or retrieval services” has the same meaning as assigned to it in clause (ccd) of sub-rule 1 of rule 2 of the Service Tax Rules, 1994;‟;

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(ii) in rule 3, in the proviso, after the words “in case”, the words “of services other than online information and database access or retrieval services, where” shall be inserted;

(iii) in rule 9, clause (b) shall be omitted.

NOTIFICATION NO. 44/2016 DATED 28TH SEPTEMBER, 2016

For the purposes of adjudging a penalty under Chapter V of the said Finance Act or the rules made thereunder, the powers of the officers have been substituted as under:

NOTIFICATION NO. 43 /2016-SERVICE TAX DATED 28 SEPTEMBER, 2016

Service Tax (Third Amendment) Rules, 2016.

In the Service Tax Rules, 1994, in Form ST- 3,-

(i) in Part-A, in the Table, in A8,-

(a) in serial number A 8.1, for the words “Individual/Proprietary”, the words “Individual/Proprietary/ One Person Company” shall be substituted;

(b) in serial number A 8.2, for the words “Limited Liability Partnership”, the words “Partnership/Limited Liability Partnership” shall be substituted;

(ii) in Part -B,-

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(a) in the Table “B1 FOR SERVICE PROVIDER”, after serial number B1.24 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:-

(b) in the Table “B2 FOR SERVICE RECEIVER”, after serial number B2.24 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:-

(iii) in Part-C, in the Table, after serial number C1.1 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

(iv) for the Part-D heading, the following heading shall be substituted, namely:-

“ Part-D SERVICE TAX PAID IN CASH AND THROUGH CENVAT CREDIT

Service Tax, Swachh Bharat Cess, Krishi Kalyan Cess, Education Cess, Secondary and Higher Education Cess and other amounts paid”;

(v) in Part DA,after serial number DA4 and the entries relating thereto,the following serial number and the entries shall be inserted namely :-

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(vi) after Part DA, the following part shall be inserted, namely:-

“PART DB- KRISHI KALYAN CESS PAID IN CASH AND THROUGH CENVAT CREDIT

(vii) in Part G, in the Table, after serial number G16 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely:-

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14

15

16

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NOTIFICATION NO. 41/2016-SERVICE TAX DATED 22ND SEPTEMBER, 2016

Objective: To exempt taxable service provided by State Government Industrial Development Corporations/ Undertakings by way of granting long term (thirty years, or more) lease of industrial plots to industrial units from so much of service tax which is leviable on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease.

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided by State Government Industrial Development Corporations/ Undertakings to industrial units by way of granting long term (thirty years, or more) lease of industrial plots from so much of service tax leviable thereon under section 66B of the said Act, as is leviable on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease.

NOTIFICATION NO. 40/2016-SERVICE TAX DATED 6TH SEPTEMBER, 2016

Amendment in Notification No.25/2012 (Mega Exemption Notification) -Service Tax, dated the 20thJune, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 467 (E), dated the 20thJune, 2012

Objective: To amend Notification No. 25/2012- Service Tax, dated 20.06.2012, so as to make necessary amendment by substituting the clause (a) of entry 5 in opening paragraph.

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In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

In the said notification, in the opening paragraph, in entry 5, for clause (a), the following clause shall

be substituted, namely:-

“(a) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961(hereinafter referred to as the Income-tax Act), or a trust or an institution registered under sub

clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered

under clause (23BBA) of section 10 of the Income-tax Act; or”

NOTIFICATION NO. 39/2016-SERVICE TAX DATED 2ND SEPTEMBER, 2016

Amendment in Notification No.25/2012 (Mega Exemption Notification) -Service Tax, dated the 20thJune, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 467 (E), dated the 20thJune, 2012

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

In the said notification, in the first paragraph, in entry 62, for the words and figures “during the financial year 2015-16”, the words, figures and letters “during the period prior to 1st April, 2016” shall be substituted.

NOTIFICATION NO. 38/2016-SERVICE TAX DATED 30TH AUGUST, 2016

Objective: Seeks to amend Notification No. 26/2012- Service Tax dated 20.06.2012, by inserting of entry “5A” for transportation of passengers embarking from or terminating in a Regional Connectivity Scheme (RCS) airports, with abatement of 90%,for a period of one year from the date of commencement of operations of the Regional Connectivity Scheme (RCS) airport, with condition of without taking any CENVAT credit.

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In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 26/2012- Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 468 (E), dated the 20th June, 2012, namely:-

1. In the said notification,-

(a) in the TABLE, after Sl. No. 5 and the entries relating thereto, the following serial number and entries shall be inserted, namely :- “5A

Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport.

10 CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004.”

(b) after paragraph 2, the following paragraph shall be inserted, namely :-

“2A. Nothing contained at Sl. No. 5A of the TABLE shall apply on or after the expiry of a period of one year from the date of commencement of operations of the Regional Connectivity Scheme Airport as notified by the Ministry of Civil Aviation.”.

NOTIFICATION NO.37 /2016-SERVICE TAX DATED 18 AUGUST, 2016

Amendment to Central Excise Rules

Objective: Giving the powers of Chief Commissioner to Principal Commissioner who have been given the additional charge vide office orders No. 79/2016 dated 14.07.2016 and 86/2016 dated 26.07.2016

In exercise of the powers conferred by clause (b) of section 2 of the Central excise Act, 1944 (1 of 1944) read with clause (55) of section 65B of the Finance Act, 1994 (32 of 1994), rule 3 of the Central Excise Rules, 2002, and rule 3 of the Service Tax Rules, 1994, the Central Board of Excise and Customs hereby invests the officers specified in column (1) of the Table below, with the powers of the Central Excise Officer of the rank specified in column (2) of the said Table, in the jurisdiction specified in Notification No. 20/2014-Service Tax, dated the 16th September, 2014 published in the Gazette of India, Extraordinary Part-II, Section 3, Sub-Section (i), vide G.S.R. 648 (E), dated the 16thSeptember, 2014, namely:-

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TABLE

Central Excise Officer Rank of the Central Excise Officer whose powers is to be exercised

(1) (2)

All Principal Commissioners who have been given additional charge of a Chief Commissioner vide Office Orders of the Central Board of Excise and Customs No. 79/2016 dated the 14th July, 2016 and 86/2016 dated the 26th July, 2016 respectively.

The Chief Commissioner.

NOTIFICATION NO. 36/2016-SERVICE TAX DATED 23RD JUNE, 2016

Objective: Seeks to exempt service tax on taxable services by way of transportation of goods by a vessel from outside India upto customs station in India with respect to which the invoice for the service has been issued on or before 31st May, 2016 subject to the condition of production of customs certified copy of the import manifest or import report required to be delivered under section 30 of the Customs Act, 1962.

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services by way of transportation of goods by a vessel from outside India upto the customs station in India with respect to which the invoice for the service has been issued on or before the 31st May, 2016, from the whole of service tax leviable thereon, subject to the condition that the import manifest or import report required to be delivered under section 30 of the the Customs Act, 1962 (52 of 1962) has been delivered on or before the 31st May, 2016 and the service provider or recipient produces Customs certified copy of such import manifest or import report.

NOTIFICATION NO. 35/2016-SERVICE TAX DATED 23RD JUNE, 2016

Objective: Seeks to exempt taxable services from the whole of Krishi Kalyan Cess leviable thereon with respect to which the invoice for the service has been issued on or before 31st May, 2016 subject to the condition that the provision of the service has been completed on or before 31st May, 2016

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), read with sub-section (5) of section 161 of the Finance Act, 2016 (28 of 2016), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services with respect to which the invoice for the service has been issued on or before the 31st May, 2016, from the whole of Krishi Kalyan Cess leviable thereon, subject to condition that the provision of service has been completed on or before the 31st May, 2016.

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NOTIFICATION NO. 34/2016-SERVICE TAX DATED 6TH JUNE, 2016

Amendment in Notification No. 30/2012 (Reverse Charge Notification) -Service Tax, dated the 20th June, 2012,

Objective: Seeks to amend notification No. 30/2012-Service Tax dated 20th June, 2012, so as to prescribe extent of payment of service tax by a business entity as a recipient of services provided by senior advocates.

In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 30/2012-Service Tax, dated the 20thJune, 2012, published in the

Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 472 (E),

dated the 20thJune, 2012, namely:-

1. In the said notification,-

(a) in paragraph I, in clause (A),-

(i) in sub-clause (iv), for item (B), the following item shall be substituted, namely:-

“(B) an individual advocate or a firm of advocates by way of legal services other than representational services by senior advocates, or”;

(ii) for sub-clause (iva), the following sub-clauses shall be substituted, namely:-

“(iva) provided or agreed to be provided by a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through

another advocate or a firm of advocates, and the senior advocate is providing such services, to such business entity who is litigant, applicant, or petitioner, as the case may be”;

(ivb) provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate;”

(b) in paragraph (II):-

(i) in the TABLE, against Sl. No. 5, for the entry under column (2), the following entry shall be substituted, namely:-

“in respect of services provided or agreed to be provided by an individual advocate or firm of advocates by way of legal services, directly or indirectly”;

(ii) after Explanation II., the following shall be inserted, namely:-

“Explanation III. – The business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification.”.

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NOTIFICATION NO. 33/2016-SERVICE TAX DATED THE 6TH JUNE, 2016

Objective: Seeks to amend Service Tax Rules, 1994 so as to specify the business entity as the person liable to service tax in respect of services provided by senior advocates.

In exercise of the powers conferred by sub-section (1) read with subsection (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:-

1. These rules may be called the Service Tax (Fourth Amendment) Rules, 2016.

2. In the Service Tax Rules, 1994, in rule 2, in sub-rule (1), in clause (d), in sub-clause(i),-

(a) in item (D), for sub-item (II), the following sub-item shall be substituted, namely:-

“(II) an individual advocate or a firm of advocates by way of legal services other than

representational services by senior advocates;”

(b) after item (D), the following item shall be inserted, namely:-

“(DD) in relation to service provided or agreed to be provided by a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, and the senior advocate is providing such services, the recipient of such services, which is the business entity who is litigant, applicant, or petitioner, as the case may be”.

NOTIFICATION NO. 32/2016-SERVICE TAX, DATED 6TH JUNE, 2016

Objective: Seeks to amend notification No. 25/2012 - Service Tax, dated the 20th June, 2012, so as to exempt the legal services provided by senior advocates to a business entity with a turnover up to rupees ten lakh in the preceding financial year.

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20thJune, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20thJune, 2012, namely:-

1. In the said notification, in the first paragraph, in entry 6, for clause (c), the following clause shall be substituted, namely:-

“(c) a senior advocate by way of legal services to-

(i) any person other than a business entity; or

(ii) a business entity with a turnover up to rupees ten lakh in the preceding

financial year;”.

23

NOTIFICATION NO. 31/2016-SERVICE TAX DATED 26TH MAY, 2016

Objective: Seeks to inter alia provide composition rate for Krishi Kalyan Cess as applicable to ST under sub-rules 7,7A,7B,7C of rule 6 of STR, 1994

In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:-

1. (1) These rules may be called the Service Tax (Third Amendment) Rules, 2016.

(2) These rules shall come into force from the 1st day of June, 2016.

2. In the Service Tax Rules, 1994, in rule 6,

(i) in sub-rule (7D), for the figures “0.5” the words “effective rate of Swachh Bharat Cess” and for the words, figures and brackets “14 (fourteen)”, the words and figures “rate of service tax specified in section 66B of the Finance Act, 1994” shall be substituted;”;

(ii) after sub-rule (7D), the following sub-rule shall be inserted, namely:-

”(7E) The person liable for paying the service tax under sub-rule (7), (7A), (7B) or (7C) of rule 6, shall have the option to pay such amount as determined by multiplying total service tax liability calculated under sub-rule (7), (7A), (7B) or (7C) of rule 6 by effective rate of Krishi Kalyan Cess and dividing the product by rate of service tax specified in section 66B of the Finance Act, 1994, during any calendar month or quarter, as the case may be, towards the discharge of his liability for Krishi Kalyan Cess instead of paying Krishi Kalyan Cess at the rate specified in sub-section (2) of section 161 of the Finance Act, 2016 (28 of 2016) and the option under this sub-rule once exercised, shall apply uniformly in respect of such services and shall not be changed during a financial year under any circumstances.”

NOTIFICATION NO. 30/2016-SERVICE TAX DATED 26TH MAY, 2016

Objective: Seeks to amend notification No. 12/2013- ST, dated the 1st July, 2013 so as to inter alia allow refund of Krishi Kalyan Cess paid on specified services used in an SEZ.

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), read with sub-section (5) of section 161 of the Finance Act, 2016 (28 of 2016), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2013-Service Tax, dated the 1st July, 2013, published in the Gazette of India, Extraordinary, vide number G.S.R. 448(E), dated the 1st July, 2013, namely:-

In the said notification, in paragraph 3, in sub-paragraph (III),-

(i) for clause (b), the following clause shall be substituted, namely:-

“(b) the SEZ Unit or the Developer shall be entitled to refund of-

(i) the service tax paid on the specified services on which ab-initio exemption is admissible but not claimed, and

(ii) the amount distributed to it in terms of clause (a).”;

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(ii) in clause (ba),

(a) in item (i), after the words “Swachh Bharat Cess”, the words “and Krishi Kalyan Cess” shall be inserted;

(b) in item (ii) for the words “by effective rate of Swachh Bharat Cess”, the words “by sum of effective rates of Swachh Bharat Cess and Krishi Kalyan Cess” shall be substituted.

This notification shall come into force from the 1st day of June, 2016.

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REVISED MODEL GST LAW

KEY HIGHLIGHTS OF THE REVISED MODEL GST LAW

The Draft Model GST Law was released in the public domain on 14.06.2016. After receiving recommendations / representations from various stakeholders,

the revised draft model GST law was made available on 26th November, 2016. Key highlights of the revised Draft Model GST Law are as under:

1. Threshold limit for Registration Increased: Aggregate turnover of Rs 10 Lakhs for Special Category States (Arunachal Pradesh, Assam,

Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) and Rs 20 Lakhs for other

than Special Category States. Aggregate turnover includes all Taxable Supplies , Exempt Supplies and Export supplies but does not include non-taxable turnover.

2. Rate: The GST rate has been capped at 14% each for CGST and SGST and 28% for IGST.

3. Definition of capital goods simplified - “capital goods” means goods, the value of which is capitalised in the books of accounts of the person

claiming the credit and which are used or intended to be used in the course or furtherance of business;

4. Definition of Goods: Goods, now specifically exclude ‘securities’. Therefore, no GST on securities.

5. Composition scheme: There would be option available to tax payers having turnover less than Rs. 50 lacs can opt for Composition scheme wherein they need to discharge tax at a floor rate of 1% or 2.50% (for

manufacturers) CGST and SGST each. Along with the condition denying composition to persons engaged in Interstate Outward supplies, the following are new additions have been added in the revised draft model

law : a) Engaged in supply of services

b) Engaged in supply of goods which are not leviable to tax under GST

c) Engaged in any supply of goods through an electronic commerce

operator

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d) Manufacturer of such goods as may be notified on the recommendation of the Council.

6. Supplies to SEZs: It has been clarified that supplies to SEZs would be zero-rated.

7. Scope of Supply: Various inconsistencies in meaning and scope of Supply, have been addressed. Now, import of service whether for business or personal use, only for a consideration will be considered as

supply. However, import of service from related party for business purposes only, even without consideration, is considered as supply as it has been included in Schedule I.

8. Schedule I: Schedule I which deals with matters to be treated as supply even if made without consideration, includes,

a) Permanent transfer/disposal of business assets where input tax credit has been availed on such assets.

b) Supply of goods or services between related persons, or between

distinct persons as specified in section 10, when made in the course or furtherance of business.

c) Supply of goods—

(i) By a principal to his agent where the agent undertakes to supply

such goods on behalf of the principal, or

(ii) By an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

d) Importation of services by a taxable person from a related person or

from any of his other establishments outside India, in the course or furtherance of business.

9. Schedule III, deals with activities which are outside the scope of supply. These include:

Contract of employment

Service by court or tribunal

Functions performed by Members of Parliament, and other state and local authorities

Services by foreign diplomatic mission in India

Services of funeral, burial, crematorium or mortuary including transportation of the deceased.

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10. Concept of distinct person :

registration, whether in one State or more than one State, shall, in

respect of each such registration, be treated as distinct persons for the purposes of this Act.

establishment of a person who has obtained or is required to obtain

registration in a State, and any of his other establishments in another State shall be treated as establishments of distinct persons for the purposes of this Act.

11. Time of supply:

For Goods - The earliest of :Date of issuance of invoice or the last date by which invoice is required to be issued or the date of receipt of advance

For Service – The earliest of: Date of issuance of invoice or the last date by which invoice is required to be issued or the date of receipt of advance.

services, Reverse Charge Mechanism etc

12. Value of supply: Transaction value GST would be payable on the ‘transaction value’. Transaction value is the price actually paid or payable for the said supply of goods and/or services between un-related

parties. The transaction value is also said to include all expenses in relation to sale such as packing, commission etc. Even subsidies linked

to supply, excluding Government subsidies will be includable. However, discounts/ incentives given before or at the time of supply will be permissible as deduction from transaction value. As regards discounts

given after supply is made, the same will be permissible as deduction subject to fulfilment of prescribed conditions.

13. Different provisions have been provided for Place of supply in case of exports and Imports, under the Model IGST Law.

14. The Revised Model GST Law has proposed an anti-profiteering mechanism to ensure benefit of lower taxes in GST is shared with consumers. It is stated that an Authority will be constituted to examine

whether input tax credits availed by any registered taxable person or the reduction in the price on account of any reduction in the tax rate have actually resulted in a commensurate reduction in the price of the said

goods and/or services supplied by him.

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Note: Student may refer the Revised Draft Model GST Law (Revised on 26th

November, 2016) available at http://www.cbec.gov.in/resources//htdocs-

cbec/gst/draft-model-gst-law-25-11-2016.pdf.

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CUSTOMS

CUSTOMS - NOTIFICATION Notification No. 150/2016-Customs (N.T.) dated the 31st December, 2016 Objective: Tariff Notification The first amendment to the First Schedule to the Customs Tariff Act, 1975 was made vide number GSR 783-805 (E) ,dated the 29th December 2006 and was last amended by notification no. 109/2008- Cus (N.T.) ,dated the 24th September,2008 vide number G.S.R. 678(i) ,dated the 24th September,2008. In exercise of the powers conferred by sub-section (1) of section 11A of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the First Schedule to the Customs Tariff Act, 1975 [as amended by the Fourth Schedule of the Finance Act, (28 of 2016)] namely:- 1. In the said First Schedule,- (1) In Chapter 29, in heading 2937,- (i) tariff items 2937 31 00 and the entries relating thereto shall be omitted, (ii) against tariff item 2937 90 11, for the entry in column (2) , the entry “Epinephrine” shall be substituted; (2) In Chapter 38, against tariff item 3824 91 00 ,- (i) In column (3), the entry “kg” shall be inserted; (ii) In column (4) , the entry “10%” shall be inserted;

(3) In Chapter 44 , in heading 4421, for tariff items 4422 91 12, 4423 91 13, and 4424 91 14 and the entries relating thereto the following shall be substituted, namely:- “ 4421 91 12

- - - - For jute machinery

kg. 10% -

4421 91 13 - - - - For silk regenerated and synthetic fibre machinery

kg. 10% -

4421 91 14 - - - - For other machinery

Kg. 10% -”;

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Notification No. 149/2016-CUSTOMS (N.T.)dated 30th December, 2016

Objective: Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001

Notification No. 148/2016-CUSTOMS (N.T.) dated 15th December, 2016

Objective: Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver

The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001–Customs (N.T.), dated the 3rd August, 2001, vide number S. O. 748 (E), dated the 3rd August, 2001 and was last amended vide Notification No. 144/2016-Customs (N.T.), dated the 30th November, 2016, e-published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 3593(E), dated 30th November, 2016.

In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001, namely:-

In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted namely:-

“TABLE-1

Sl. No.

Chapter/ heading/

sub-heading/tariff item Description of goods

Tariff value

(US $Per Metric Tonne)

(1) (2) (3) (4)

1 1511 10 00 Crude Palm Oil 780

2 1511 90 10 RBD Palm Oil 787

3 1511 90 90 Others – Palm Oil 784

31

4 1511 10 00 Crude Palmolein 798

5 1511 90 20 RBD Palmolein 801

6 1511 90 90 Others – Palmolein 800

7 1507 10 00 Crude Soya bean Oil 912

8 7404 00 22 Brass Scrap (all grades) 3217

9 1207 91 00 Poppy seeds 2533

TABLE-2

Sl. No.

Chapter/ heading/

sub-heading/tariff item Description of goods Tariff value

(1) (2) (3) (4)

1 71 or 98

Gold, in any form, in respect of which the benefit of entries

at serial number 321 and 323 of the Notification No. 12/2012-Customs dated

17.03.2012 is availed

378 per 10

grams

2 71 or 98

Silver, in any form, in respect of which the benefit of entries

at serial number 322 and 324 of the Notification No. 12/2012-Customs dated

17.03.2012 is availed 561 per kilogram

TABLE-3

Sl.

No.

Chapter/ heading/

sub-heading/tariff

item Description of goods

Tariff value

(US $ Per Metric

Tonne )

32

(1) (2) (3) (4)

1 080280 Areca nuts 2613”

Notification No. 147/2016 - Customs (N.T.) dated 15th December, 2016 Objective: Rate of exchange of conversion of the foreign currency with effect from 16th December, 2016 In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Excise and Customs No.145/2016-CUSTOMS (N.T.), dated 1st December, 2016, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 16th December, 2016, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

SCHEDULE-I

Sl.No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees

(1) (2) (3)

(a) (b)

(For Imported Goods) (For Export Goods)

1. Australian Dollar 51.35 49.40

2. Bahrain Dinar 186.25 173.85

3. Canadian Dollar 51.85 50.25

4. Danish Kroner 9.75 9.40

5. EURO 72.45 70.00

6. Hong Kong Dollar 8.85 8.60

7. Kuwait Dinar 229.70 215.00

Notification No.145/2016 - Customs (N.T.) dated 1st December, 2016 Objective: Rate of exchange of conversion of the foreign currency with effect from 2nd December, 2016 In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Excise and Customs No.138/2016-CUSTOMS (N.T.), dated 17th November, 2016, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of

33

conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 2nd December, 2016, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

SCHEDULE-I

Sl.No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees

(1) (2) (3)

(a) (b)

(For Imported Goods) (For Export Goods)

1. Australian Dollar 51.70 49.75

2. Bahrain Dinar 188.20 175.70

3. Canadian Dollar 51.90 50.35

4. Danish Kroner 9.95 9.60

5. EURO 73.90 71.40

6. Hong Kong Dollar 8.95 8.70

7. Kuwait Dinar 232.35 217.55

Notification No.143/2016 - Customs (N.T.) Dated the 29 November, 2016 Objective: Rate of exchange of conversion of the foreign currency with effect from 30th November, 2016 In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs hereby makes the following amendments in the Notification of the Central Board of Excise and Customs No.138/2016-CUSTOMS (N.T.), dated 17th November, 2016, with effect from 30th November, 2016, namely:- In the SCHEDULE-I of the said Notification for serial No.12 and the entries relating thereto, the following shall be substituted, namely

SCHEDULE-I

Sl.No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees

(1) (2) (3)

(a) (b)

(For Imported Goods) (For Export Goods)

12. South African

Rand

5.15 4.80

34

Notification No. 142 /2016-Customs (N.T.) dated 29th November, 2016

The Principal regulations were published vide notification number 87/98-Cus(N.T.), dated the 9th November, 1998 and last amended vide number 74/2013 and dated the 12.07.2013 Objective: Courier Imports and Exports (Clearance) Amendment Regulations, 2016 In exercise of the powers conferred by section 157 of the Customs Act,1962 (52 of 1962), the Central Board of Excise and Customs hereby makes the following regulations, further to amend the Courier Imports and Exports (Clearance) Regulations, 1998, namely:-

1. These regulations may be called the Courier Imports and Exports (Clearance) Amendment Regulations, 2016.

2. They shall come into force on the date of their publication in the Official

Gazette. 3. In the Courier Imports and Exports (Clearance) Regulations, 1998 (hereinafter

referred to as the said regulations), in the sub-regulation (1) of regulation 6, after the words, brackets and letters “Form Courier Shipping Bill-II (CSB-II)”, the words and letters “Courier Shipping Bill CSB-V,” shall be inserted.

4. In the said regulations, in the sub-regulation (3) of regulation 6, after the words, brackets and letters “Form Courier Shipping Bill-II (CSB-II), the words and letters “Courier Shipping Bill CSB-V” shall be inserted.

5. In the said regulations, after the sub-regulation (3) of regulation 6, for the proviso, the following proviso shall be substituted, namely:- “Provided that for the goods specified in Appendix 3C of the Foreign Trade Policy (2015-20), such entry shall be made in the Form Courier Shipping Bill CSB-V.”.

Notification No.141 / 2016-Customs (N.T.) dated 29th November, 2016 Objective: Regarding appointment of Common Adjudicating Authority In exercise of the powers conferred by sub-section (1) of section 4 and sub-section (1) of section 5 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby appoints officer mentioned in column 5 of the table below to act as a Common Adjudicating Authority to exercise powers and discharge duties conferred or imposed on officers mentioned in column (4) of the table in respect of Show Cause Notices mentioned in column (3) of the table, for purpose of adjudication of show cause notices mentioned herein, namely:-

Table

Sl. No

Name of the Party/Noticee(s)(M/s)

Show Cause Notice number and date

Adjudicating Authorities

Common Adjudicating Authority

(1) (2) (3) (4) (5)

1. M/s Collective Trade Links, 19, 2nd floor,

F.No.SD/INT/INV/11/99(S/14-4-

Commissioner of Customs

Commissioner of Customs,

35

133 Narayan Dhuru Street , Mumbai and others

31/99) dated 14.03.2001,

(Prev.), Mumbai Pune

2. M/s Sai Impex, Sadashiv Peth, Pune and others

F.No.VIII/CUS/CIU-3/99 dated 29.3.2000

Commissioner of Customs, 41-A,, Sasoon Road, Pune-1

Notification No. 140 /2016-Customs (N.T.) Objective: Rescinds Publication of Daily List of Imports & Exports Rules, 2004- Rescission of Notification No. 128/2004- Cus (N.T.) dated 19th November, 2004 In exercise of the powers conferred by section 156 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public

interest so to do, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue), Notification No. 128/2004- Customs (N.T.) dated 19th November 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.758 (E), dated the 19th of November, 2004, except as respects things done or omitted to be done before such rescission. Notification No. 139/2016-Customs (N.T.) dated 25th November, 2016 Objective: Amendment to Notification no. 12/97-Customs dated 2nd April 1997 In exercise of the powers conferred by clause (aa) of sub- section (1) of section 7 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs, hereby makes following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) number 12/97-CUSTOMS (N.T.), dated the 2nd April, 1997, published in the Gazette of India, Extraordinary, Part II, Section 3,Sub-section (i) vide number G.S.R. 193(E), dated the 2nd April, 1997, namely:-

In the said notification, in the Table, against serial number 6B relating to the State of Orissa, after item (ii) in column (3) and the entry relating thereto in column (4), the following item and the entry shall be inserted, namely:- (3)

(4)

“(iii) Jharsuguda Unloading of imported goods and loading of export goods.”.

Notification No. 135/2016-Customs (N.T.) dated 2nd November, 2016 Objective: Deferred Payment of Import Duty Rules, 2016

36

In exercise of the powers conferred by proviso to sub-section (1) of section 47 of the Customs Act, 1962 (52 of 1962), the Central Government permits the following class of importers to make deferred payment of import duty: (i) Importers certified under Authorized Economic Operator programme as AEO (Tier-Two) and AEO (Tier-Three) Explanation.- For the purpose of this notification, AEO means Authorized Economic Operator certified by the Directorate General of Performance Management under the Central Board of Excise and Customs. Notification No. 134/2016-Customs (N.T.) dated 2nd November, 2016 Objective: Deferred Payment of Import Duty Rules, 2016

In exercise of the powers conferred by the proviso to sub-section (1) of sections 47 and section 156 of the Customs Act, 1962 (52 of 1962), the Central Government hereby makes the following rules, namely:- 1. Short title and commencement. — (1) These rules may be called the Deferred Payment of Import Duty Rules, 2016. (2) They shall come into force on the 16th day of November, 2016. 2. Definitions. -(1) In these rules, unless the context otherwise requires,- (a) “Act” means the Customs Act, 1962 (52 of 1962); (b) “due date” means the date specified in rule 5 of these rules; (c) “eligible importer” means any class of importers notified under proviso to sub section (1) of section 47 of the Act. (2) Words and expressions used and not defined herein but defined in the Act, shall have the meanings respectively assigned to them in the Act. 3. Application— These rules shall apply to eligible importer who have been notified under the proviso to sub-section (1) of section 47 of the Act. 4. Information about intent to avail benefit of notification.- (1) An eligible importer who intends to avail the benefit under sub-section (1) of section 47 of the Act shall intimate to the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, having jurisdiction over the port of clearance, his intention to avail the said benefit. (2) The Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, shall, upon being satisfied with the eligibility of the importer to pay the duty under these rules, allow the eligible importer to pay the duty by due dates specified in rule 5. 5. Payment of duty— The eligible importer shall pay the duty by the dates specified hereunder inclusive of the period (excluding holidays) as mentioned in sub-section (2) of section 47 of the Act, namely:- (a) for goods corresponding to Bill of Entry returned for payment from 1st day to 15th day of any month, the duty shall be paid by the 17th day of that month;

37

(b) for goods corresponding to Bill of Entry returned for payment from 16th day till the last day of any month other than March the duty shall be paid by the 2nd day of the following month; (c) for goods corresponding to Bill of Entry returned for payment from 16th day till the 29th day of March, the duty shall be paid by the 31st March; (d) for goods corresponding to Bill of Entry returned for payment from 30th day of March to 31st day of March, the duty shall be paid by the 2nd April. 6. Manner of payment- The eligible importer shall pay the duty electronically: Provided that the Assistant Commissioner or the Deputy Commissioner of Customs, as the case may be, for reasons to be recorded in writing, may allow payment of duty by any mode other than electronic payment.

7. Deferred payment not to apply in certain cases.- An eligible importer who fails to pay duty in full by due date more than once in a period of three consecutive months shall not be permitted to make deferred payment. Provided that the facility of deferred payment shall not be restored unless the eligible importer has paid the duty in full along with the interest. 8. Exemption in respect of certain goods- Nothing contained in these rules shall apply to the goods which have not been assessed or not declared by the importer in the entry made under the Act. Notification No. 132/2016- Customs (N.T) dated 31st October, 2016 The principal rules were published vide notification number 39/1995-Customs (N.T.), dated the 26th May, 1995, in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), vide number G.S.R. 441 (E), dated the 26th May, 1995, and was last amended by notification number 109/2015-Custom (N.T.), dated the 16th November 2015 vide number G.S.R. 860 (E), dated the 16th November, 2015. Objective: Regarding amends Customs, Central Excise Duties and Service Tax Drawback Rules effective from 15.11.2016 In exercise of the powers conferred by section 75 of the Customs Act, 1962 (52 of 1962), section 37 of the Central Excise Act, 1944 (1 of 1944) and section 93A read with section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, namely:- (1) These rules may be called the Customs, Central Excise Duties and Service Tax Drawback (Amendment) Rules, 2016. (2) They shall come into force on 15th November, 2016 In the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, sub-rule (1) of rule 8 shall be omitted.

38

Notification No. 131/2016 - CUSTOMS (N.T.) dated 31st October, 2016 Objective: Regarding All Industry Rates (AIRs) Drawback effective from 15.11.2016 In exercise of the powers conferred by sub-section (2) of section 75 of the Customs Act, 1962 (52 of 1962), sub-section (2) of section 37 of the Central Excise Act, 1944 (1 of 1944), and section 93A and sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), read with rules 3 and 4 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 (hereinafter referred to as the said rules) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.110/2015-CUSTOMS (N.T.), dated the 16th November, 2015, published vide number G.S.R. 861 (E), dated the 16th November, 2015, except as respects things done or omitted to be done before such supersession, the Central Government hereby determines the rates of drawback as specified in the Schedule annexed hereto (hereinafter referred to as the said Schedule) subject to the following notes and conditions, namely:- Notes and conditions: (1) The tariff items and descriptions of goods in the said Schedule are aligned with the tariff items and descriptions of goods in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) at the four-digit level only. The descriptions of goods given at the six digit or eight digit or modified six or eight digits in the said Schedule are in several cases not aligned with the descriptions of goods given in the First Schedule to the Customs Tariff Act, 1975. (2) The general rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 shall, mutatis mutandis, apply for classifying the export goods listed in the said Schedule. (3) Notwithstanding anything contained in the said Schedule, - (i) all art-ware or handicraft items shall be classified under the heading of art-ware or handicraft (of constituent material) as mentioned in the relevant Chapters; (ii) any identifiable ready to use machined part or component predominantly made of iron, steel or aluminium, made through casting or forging process, and not specifically mentioned at six digit level or more in Chapter 84 or 85 or 87, may be classified under the relevant tariff item (depending upon material composition and making process) under heading 8487 or 8548 or 8708, as the case may be, irrespective of classification of such part or component at four digit level in Chapter 84 or 85 or 87 of the said Schedule; (iii) the sports gloves mentioned below heading 4203 or 6116 or 6216 shall be classified in that heading and all other sports gloves shall be classified under heading 9506. (ii) (4) The figures shown in columns (4) and (6) in the said Schedule refer to the rate of drawback expressed as a percentage of the free on board value or the rate per unit quantity of the export goods, as the case may be. (5) The figures shown in columns (5) and (7) in the said Schedule refer to the maximum amount of drawback that can be availed of per unit specified in column (3). (6) An export product accompanied with application for removal of excisable goods for export (ARE-1) and forming part of project export (including turnkey export or supplies) for which no figure is shown in column (5) and (7) in the said Schedule, shall be so declared by the exporter and the maximum amount of drawback that can be

39

availed under the said Schedule shall not exceed the amount calculated by applying ad-valorem rate of drawback shown in column (4) or (6) to one and half times the ARE- 1 value. (7) The figures shown in the said Schedule in columns (4) and (5) refer to the total drawback (Customs, Central Excise and Service Tax component put together) allowable and those appearing in columns (6) and (7) refer to the drawback allowable under the Customs component. The difference in rates between the columns (4) and (6) refers to the Central Excise and Service Tax component of drawback. If the rate indicated is the same in the columns (4) and (6), it shall mean that the same pertains to only Customs component and is available irrespective of whether the exporter has availed of Cenvat facility or not. (8) The rates of drawback specified against the various tariff items in the said Schedule in specific terms or on ad valorem basis, unless otherwise specifically provided, are inclusive of drawback for packing materials used, if any. (9) Drawback at the rates specified in the said Schedule shall be applicable only if the procedural requirements for claiming drawback as specified in rules 11, 12 and 13 of the said rules, unless otherwise relaxed by the competent authority, are satisfied. (10) The rates of drawback specified in the said Schedule shall not be applicable to export of a commodity or product if such commodity or product is - a) manufactured partly or wholly in a warehouse under section 65 of the Customs

Act, 1962 (52 of 1962); b) manufactured or exported in discharge of export obligation against an Advance

Authorisation or Duty Free Import Authorisation issued under the Duty Exemption Scheme of the relevant Foreign Trade Policy;

Provided that where exports are made against Special Advance Authorisation issued under paragraph 4.04A of the Foreign Trade Policy 2015-20 in discharge of export obligations in terms of Notification No. 45/2016-Customs dated 13th August, 2016, the rates of drawback specified in the said Schedule shall apply as if in the said Schedule- (i) the heading A and heading B are heading C and heading D, respectively; and (ii) the entries in columns (4), (5), (6) and (7) against the Tariff items in the said Schedule below all Chapters, except Chapter 61 and 62, are NIL, and those in Chapters 61 and 62 are as specified in the Table annexed hereto; (iii) (c) manufactured or exported by a unit licensed as hundred per cent. Export Oriented Unit in terms of the provisions of the relevant Foreign Trade Policy; (d) manufactured or exported by any of the units situated in Free Trade Zones or Export Processing Zones or Special Economic Zones; (e) manufactured or exported availing the benefit of the notification No. 32/1997–Customs, dated 01st April, 1997. (11) The rates and caps of drawback specified in columns (4) and (5) of the said

Schedule shall not be applicable to export of a commodity or product if such commodity or product is – (a) manufactured or exported by availing the rebate of duty paid on materials used in the manufacture or processing of such commodity or product in terms of rule 18 of the Central Excise Rules, 2002; (b) manufactured or exported in terms of sub-rule (2) of rule 19 of the said Central Excise Rules, 2002.

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(12) The expression “when Cenvat facility has not been availed”, used in the said Schedule, shall mean that the exporter shall satisfy the following conditions, namely:- (a) the exporter shall declare, and if necessary, establish to the satisfaction of the Assistant Commissioner of Customs or Assistant Commissioner of Central Excise or Deputy Commissioner of Customs or Deputy Commissioner of Central Excise, as the case may be, that no Cenvat facility has been availed for any of the inputs or input services used in the manufacture of the export product; (b) if the goods are exported under bond or claim for rebate of duty of Central Excise, a certificate from the Superintendent of Customs or Superintendent of Central Excise in-charge of the factory of production, to the effect that no Cenvat facility has been availed for any of the inputs or input services used in the manufacture of the export product, is produced: Provided that the certificate regarding non-availment of Cenvat facility shall not be required in the case of exports of handloom products or handicrafts (including

handicrafts of brass art-ware) or finished leather and other export products which are unconditionally exempt from the duty of Central Excise. (13) Whenever a composite article is exported for which any specific rate has not been provided in the said Schedule, the rates of drawback applicable to various constituent materials can be extended to the composite article according to net content of such materials on the basis of a self-declaration to be furnished by the exporter to this effect and in case of doubt or where there is any information contrary to the declarations, the proper officer of customs shall cause a verification of such declarations. (14) The term „article of leather‟ in Chapter 42 of the said Schedule shall mean any

article wherein (a) 60% or more of the outer visible surface area; or (b) 60% or more of the outer and inner surface area taken together, excluding shoulder straps or handles or fur skin trimming, if any, is of leather notwithstanding that such article is made of leather and any other material. (iv) (15) The term “dyed”, wherever used in the said Schedule in relation to textile materials, shall include yarn or piece dyed or predominantly printed or coloured in the body. (16) The term “dyed” in relation to fabrics and yarn of cotton, shall include “bleached or mercerised or printed or mélange‟‟. (17) The term “dyed” in relation to textile materials in Chapters 54 and 55 shall include “printed or bleached”. (18) In respect of the tariff items in Chapters 60, 61, 62 and 63 of the said Schedule, the blend containing cotton and man-made fibre shall mean that content of man-made fibre in it shall be more than 15% but less than 85% by weight and the blend containing wool and man-made fibre shall mean that content of man-made fibre in it shall be more than 15% but less than 85% by weight. The garment or made-up of cotton or wool or man-made fibre or silk shall mean that the content in it of the respective fibre is 85% or more by weight. (19) The term “shirts” in relation to Chapters 61 and 62 of the said Schedule shall include “shirts with hood”. (20) In respect of the tariff items appearing in Chapter 64 of the said Schedule, leather shoes, boots or half boots for adult shall comprise the following sizes, namely: - (a) French point or Paris point or Continental Size above 33; (b) English or UK adult size 1 and above; and (c) American or USA adult size 1 and above.

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(21) In respect of the tariff items appearing in Chapter 64 of the said Schedule, leather shoes, boots or half boots for children shall comprise the following sizes, namely: - (a) French point or Paris point or Continental Size upto 33; (b) English or UK children size upto 13; and (c) American or USA children size upto 13. (22) The drawback rates specified in the said Schedule against tariff items 711301, 711302 and 711401 shall apply only to goods exported by airfreight, post parcel or authorised courier through the Custom Houses as specified in para 4.72 of the Hand Book of Procedures, 2015-2020 published vide Public Notice No.1/ 2015-2020, dated the 1st April, 2015 of the Government of India in the Ministry of Commerce and Industry, after examination by the Customs Appraiser or Superintendent to ascertain the quality of gold or silver and the quantity of net content of gold or slver in the gold jewellery or silver jewellery or silver articles. The free on board value of any consignment through authorised courier shall not exceed rupees twenty lakhs. (23) The drawback rates specified in the said Schedule against tariff items 711301, 711302 and 711401 shall not be applicable to goods manufactured or exported in discharge of export obligation against any Scheme of the relevant Foreign Trade Policy of the Government of India which provides for duty free import or replenishment or procurement from local sources of gold or silver. (24) Notwithstanding anything contained in paragraph (7) above, the drawback rate specified in the said Schedule against tariff items 711301, 711302 and 711401 shall not be applicable to goods manufactured or exported availing CENVAT facility for any of the inputs or input services used in their manufacture or availing the rebate of duty paid on materials used in their (v) manufacture or processing in terms of rule 18 of the Central Excise Rules, 2002 or manufactured or exported in terms of sub-rule (2) of rule 19 of the Central Excise Rules, 2002 and the exporter claiming the drawback rate against said tariff items shall make appropriate declaration at the time of export. (25) “Vehicles” of Chapter 87 of the said Schedule shall comprise completely built unit or completely knocked down (CKD) unit or semi knocked down (SKD) unit. 2. All claims for duty drawback at the rates of drawback notified herein shall be filed with reference to the tariff items and descriptions of goods shown in columns (1) and (2) of the said Schedule respectively. Where, in respect of the export product, the rate of drawback specified in the said Schedule is Nil or is not applicable, the rate of drawback may be fixed, on an application by an individual manufacturer or exporter in accordance with the said rules. Where the claim for duty drawback is filed with reference to tariff item of the said Schedule and it is for the rate of drawback specified herein, an application, as referred under sub-rule (1) of rule 7 of the said rules shall not be admissible. 3. The amount referred in sub-rule (3) of rule 7 of the said rules, relating to provisional drawback amount as may be specified by the Central Government, shall be equivalent to the Customs component, as provided by the drawback rate and drawback cap shown in column (6) and (7) in the said Schedule for the tariff item corresponding to the export goods, if applicable, and determined as if it were a claim for duty drawback filed with reference to such rate and cap. 4. This notification shall come into force on the 15th day of November, 2016

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Notification No. 130/2016-Customs (N.T.) dated the 25th October, 2016 Objective: Rescinding the notification No. 66/1996 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 66/1996-Customs, dated the 2nd September, 1996 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide numbers G.S.R. 397 (E), dated the 2nd September, 1996, except as respects things done or omitted to be done before such rescission. Notification No. 113/2016 - Customs (N.T.) dated the 22nd August, 2016 Objective: Rescinds Customs (Provisional Duty Assessment) Regulations, 2011 – Recession of Notification No. 81/2011-Customs (N.T.) dated the 25th November, 2011 In exercise of the powers conferred by section 157 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby rescinds the notification of the Government of India in the Ministry of Finance, Department of Revenue (Central Board of Excise and Customs) number 81/2011-Customs (N.T.) dated the 25th November, 2011 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 840 (E), dated the 25th November, 2011, except as respects things done or omitted to be done before such rescission. Notification No. 103/2016 - Customs (N.T.) dated the 25th July, 2016 Objective: Notification of goods under Section 123 (2) of the Customs Act, 1962

Notification No.98/2016- Customs (N.T) dated the 8th July, 2016. Objective: Rescinding notification No.18/2003-Customs dated 1st March 2003.

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In exercise of the powers conferred by clause (ii) of sub-section (2) of section 61 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs, being satisfied that it is necessary in the public interest so to do, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue), number 18/2003-Customs (N.T) dated 1st March 2003, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section(i),vide number G.S.R.173(E), dated the 1st March 2003, except as respects things done or omitted to be done before such rescission.

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CENTRAL EXCISE

CENTRAL EXCISE - NOTIFICATION

Notification No. 50/2016- Central Excise (N.T.) dated 31st December, 2016

Amendment to Tariff Notification No. 49/2008:

The principal notification No.49/2008-Central Excise (N.T.), dated the 24th December, 2008

was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide

number G.S.R. 882 (E), dated the 24th December, 2008 and last amended by notification No.

25/2016-Central Excise (N.T.), dated the 5th May, 2016 published in the Gazette of India,

Extraordinary, vide number G.S.R. 491(E), dated the 5th May, 2016.

In exercise of the powers conferred by sub-sections (1) and (2) of section 4A of the Central

Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following further

amendments in the notification of the Government of India in the Ministry of Finance

(Department of Revenue) No. 49/2008-Central Excise (N.T.), dated the 24th December, 2008,

published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number

G.S.R. 882(E), dated the 24th December, 2008, namely :-

In the said notification, in the Table,-

(i.) against serial number 51, for the entries in column (2), the entries “3824 99 24 or 3824 99

90” shall be substituted;

(ii.) against serial number 58, for the entries in column (3), the entries "Unglazed Vitrified Tiles

(whether polished or not) or Glazed Tiles" shall be substituted;

(iii.) serial number 59 and the entries relating thereto shall be omitted;

(iv.) against serial number 76, for the entry in column (2), the entry “8472 90” shall be

substituted.

2. This notification shall come into force on the 1st day of January, 2017

Notification No. 49/2016-Central Excise (N.T.) dated 31st December, 2016

Amendment to the First Schedule to the Central Excise Tariff Act, 1985

The first amendment to the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986) was

amended by the Central Excise Tariff(Amendment) Act, 2004(5 of 2005) and last amended vide

Notification No. 27/2006-Central Excise(N.T.), dated 29th December, 2006 vide number G.S.R.

776(E), dated the 29th December, 2006

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In exercise of the powers conferred by sub-section (1) of section 5 of the Central Excise Tariff

Act, 1985 (5 of 1986), the Central Government, on being satisfied that it is necessary in the

public interest so to do, hereby makes the following further amendments in the First Schedule to

the Central Excise Tariff Act, 1985 [as amended by Eighth Schedule to the Finance Act, 2016,

(28 of 2016)] namely: -

1. In the said First Schedule, -

(1) in Chapter 29, in heading 2937,-

(i.) tariff item 2937 31 00 and the entries relating thereto shall be omitted;

(ii.) against tariff item 2937 9011 for the entry in column (2), the entry “Epinephrine” shall be

substituted;

(2) in chapter 38, against tariff item 3824 91 00;

(i.) in column (3), the entry “kg.” shall be inserted;

(ii.) in column (4), the entry “12.5%” shall be inserted;

(3) in Chapter 44, in heading 4421, for tariff items 4422 91 12, 4423 91 13, and 4424 91 14 and

the entries relating thereto, the following shall be substituted, namely: -

“ 4421 91 12 - - - - For jute machinery kg. 12.5% -

4421 91 13 - - - - For silk regenerated and

synthetic fibre machinery

kg. 12.5% -

4421 91 14 - - - - For other machinery kg. 12.5% -”;

Notification No. 48/2016 - Central Excise (N.T.) dated, 7th

October, 20 16

Objective : To amend Notification No. 27/2014-Central Excise(NT), dated 16.09.2014

The principal Notification No. 27/2014 Central Excise(N.T.), dated the l6th Septenber,2014 was

published in the Gazette of India, Extra ordinary, Part II, Section 3, Sub-section (i) vide

G.S.R.551(E), dated the l6s september,2014

In exercise of the powers conferred by Rule 3 of the Central Excise Rules, 2002, the central

Board of Excise and customs hereby makes amendments in the notification of the Government of

India in the Ministry of Finance (Department of Revenue) number 27/2014-Central Excise

(N.T.), dated the l6s September, 2014, published in the Gazette of India, Extraordinary, Part II,

Section 3, Sub-Section (i) vide notification number G.S.R. 651(E), dated the 16th

September,

2014.

Notification No.43 /2016-Central Excise (N.T.) dated 18 August, 2016

Objective: To amend Form ARE-2-reg

In exercise of the powers conferred by clause (b) of section 2 of the Central Excise Act, 1944 (1

of 1944), read with rule 3 of the Central Excise Rules, 2002, the Central Board of Excise and

Customs hereby invests the officers specified in column (1) of the Table below, with the powers

of the Central Excise Officer of the rank specified in column (2) of the said Table, in the

46

jurisdiction specified in Notification No. 27/2014-Central Excise, dated the 16th September,

2014 published in the Gazette of India, Extraodinary Part-II, Section 3, Sub-Section(i), vide

G.S.R. 651 (E), dated the 16th September, 2014, namely:-

TABLE

Central Excise Officer Rank of the Central Excise

Officer whose powers is to

be exercised

All Principal Commissioners who have been given additional

chargeof a Chief Commissioner vide Office Orders of the

Central Board of Excise and Customs No. 79/2016 dated the

14th July, 2016 and 86/2016 dated the 26th July, 2016

respectively.

The Chief Commissioner

Notification No. 41/2016- Central Excise (N.T.) Dated 10th August, 2016

Objective: To amend CENVAT Credit Rules, 2004 so as to withdraw the facility to avail of

CENVAT credit of duty paid on molasses generated in the sugar season 2015-16 (i.e. 1st

October, 2015 to 30th September 2016) which is used for producing ethanol for supply to public

sector OMCs for blending with petrol by omitting rule 6 (6) (ix) of the CENVAT Credit Rules,

2004.

The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-

section (i), vide, notification No. 23/2004 - Central Excise (N.T.), dated the 10th September,

2004 vide, number G.S.R. 600(E), dated the 10th September, 2004 and last amended, vide,

notification No. 36/2016- Central Excise (N.T.), dated the 26th July, 2016published in the

Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 735(E) ,

dated the 26th July, 2016.

In exercise of the powers conferred by section 37 of the Central Excise Act,1944 (1 of 1944) and

section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the

following rules further to amend the CENVAT Credit Rules, 2004, namely:-

(1) These rules may be called the CENVAT Credit (Ninth Amendment) Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

(3) In the CENVAT Credit Rules, 2004, in rule 6, in sub-rule (6), clause (ix) shall be omitted

Notification No. 40/2016 Central Excise (N.T.) Dated 26th July, 2016

Objective: To amend notification No. 36/2001-Central Excise (N.T.) dated 26th June, 2001, so

as to exempt a manufacturer or principal manufacturer of articles of jewellery or parts of articles

of jewellery or both, falling under heading 7113 of the Central Excise Tariff Act, 1985 (5 of

1986) from taking central excise registration upto the full exemption limit.

The principal notification No. 36/2001 - Central Excise (N.T.), dated the 26th June, 2001 was

published in the Gazette of India, vide number G.S.R. 465 (E), dated the 26th June, 2001 and

47

was last amended, vide notification No. 19/2016-Central Excise (N.T.), dated the 1st March,

2016 published in the Gazette of India, vide number G.S.R. 250(E), dated the 1st March, 2016.

In exercise of the powers conferred by sub-rule (2) of rule 9 of the Central Excise Rules, 2002,

the Central Board of Excise and Customs, being satisfied that it is necessary in the public interest

so to do, hereby makes the following further amendments in the notification number 36/2001-

Central Excise (N.T.), dated the 26th June, 2001, in the Ministry of Finance, Department of

Revenue, 2001, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section

(i), vide number GSR 465 (E), dated the 26th June, 2001, namely,-

In the said notification, in the paragraph (3), for Explanation, the following shall be substituted,

namely:-

“Explanation. - For the purpose of this notification, the expression “specified limit” shall mean,-

(a) in respect of goods falling under heading 7113 of the First Schedule to the Central Excise

Tariff Act, 1985 (5 of 1986), full exemption limit;

(b) for goods, other than (a) above, full exemption limit minus sixty lakh rupees.”.

Notification No. 39/2016 - Central Excise (N.T.) dated the 26th July, 2016

Objective: To amend notification No. 17/2006-Central Excise (N.T) dated the 1st August, 2006

so as to exempt a manufacturer or principal manufacturer of articles of jewellery or parts of

articles of jewellery or both, falling under heading 7113 of the Central Excise Tariff Act, 1985 (5

of 1986) from filing of annual return.

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944)

read with clause (b) of sub-rule (2) of rule 12 of the Central Excise Rules, 2002, the Central

Government hereby makes the following amendment in the notification of the Government of

India, Ministry of Finance (Department of Revenue) No. 17/2006-Central Excise dated (N.T.) 1st

August, 2006, published in the Gazette of India vide number G.S.R. 455(E) dated the 1st August,

2006, namely:-

In the said notification, after clause (ii), the following clause shall be inserted, namely:-

“(iii) manufacturer or principal manufacturer, as the case may be, of articles of jewellery or parts

of articles of jewellery or both, falling under heading 7113 of the First Schedule to the Central

Excise Tariff Act, 1985 (5 of 1986).”.

Notification No. 38/2016 – Central Excise (N.T.) dated 26th July, 2016

Objective: To amend notification No. 35/2001-Central Excise (N.T.) so as to:

(i) provide that a person engaged in the manufacture of articles of jewellery or parts of

articles of jewellery or both, falling under chapter heading 7113 of the First Schedule to

the Central Excise Tariff Act, 1985 (5 of 1986) may get himself registered by 31st day of

July, 2016;

(ii) exempt a person engaged in the manufacture of articles of jewellery or parts of articles

of jewellery or both, falling under chapter heading 7113 of the First Schedule to the

48

Central Excise Tariff Act, 1985 (5 of 1986) from the requirement to submit plan of the

factory premises under simplified registration procedure

The principal notification No. 35/2001-Central Excise (N.T.), dated the 26th June, 2001,

published in the Gazette of India, Extraordinary, vide G.S.R. 464 (E), dated the 16th September,

1993 and last amended by notification No. 32/2016 – C.E. (N.T.), dated the 11th July, 2016,

published vide G.S.R. 679(E), dated the 11th July, 2016.

In exercise of the powers conferred by rule 9 of the Central Excise Rules, 2002, the Central

Board of Excise and Customs hereby makes the following further amendments in the notification

of the Government of India in the Ministry of Finance (Department of Revenue) No. 35/2001-

Central Excise (N.T.), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-

section (i) vide G.S.R. 464 (E), dated the 26th June, 2001, namely :-

In the said notification,-

(i) after clause (1), the following proviso shall be inserted, namely,-

“Provided that a person engaged in manufacture of articles of jewellery or parts of articles of

jewellery or both, falling under chapter heading 7113 of the First Schedule to the Central Excise

Tariff Act, 1985 (5 of 1986), either through a job-worker or otherwise, may get himself

registered by 31st day of July, 2016.”.

(ii) after clause (7), the following proviso shall be inserted, namely,-

“Provided that in case of a manufacturer or principal manufacturer, as the case may be, of

articles of jewellery or parts of articles of jewellery or both, falling under chapter heading 7113

of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), there shall be no

requirement to submit plan of the factory premises, as provided under sub-clause (i).”.

Notification No. 37/2016 - Central Excise (N.T.) dated 26th July, 2016

Objective : To provide a modified format for quarterly return, ER-8, for return of excisable

goods cleared at the Central Excise duty rate of 1% [including articles of jewellery or parts of

articles of jewellery or both, falling under heading 7113] or 2%.

In exercise of the powers conferred by fourth proviso to sub-rule (1) of rule 12 of the Central

Excise Rules, 2002, and in supersession of the notification of the Government of India in the

Ministry of Finance (Department of Revenue), No.15/2011-Central Excise (N.T.), dated the 30th

June, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)

vide G.S.R. 496(E), dated the 30th June, 2011, except as respects things done or omitted to be

done before such supersession the Central Board of Excise and Customs hereby specifies the

form for quarterly return, namely:-

Form E.R.-8

Notification No. 36/2016 - Central Excise (N.T.) Dated 26th July, 2016

49

Objective : To amend the CENVAT Credit Rules, 2004 in relation to articles of jewellery or

parts of articles of jewellery or both, falling under heading 7113 of the First Schedule to the

Central Excise Tariff Act, 1985 (5 of 1986).

The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-

section (i), vide, notification No. 23/2004 - Central Excise (N.T.), dated the 10th September,

2004 vide, number G.S.R. 600(E), dated the 10th September, 2004 and last amended, vide,

notification No. 28/2016- Central Excise (N.T.), dated the 26th May, 2016 published in the

Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 555(E) ,

dated the 26th May, 2016.

In exercise of the powers conferred by section 37 of the Central Excise Act,1944 (1 of 1944) and

section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the

following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1) These rules may be called the CENVAT Credit (Eighth Amendment) Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), -

(A) in rule 2, in clause (naa), for sub-clause (i), the following shall be substituted, namely:-

“(i) in relation to articles of jewellery or parts of articles of jewellery or both, falling under

heading 7113 of the First Schedule to the Excise Tariff Act, includes a person who is liable to

pay duty of excise leviable on such goods under sub-rule (1) of rule 9 of the Articles of Jewellery

(Collection of Duty) Rules, 2016;"

(ia) in relation to articles of precious metals falling under heading 7114 of the First Schedule to

the Excise Tariff Act, includes a person who is liable to pay duty of excise leviable on such

goods under sub-rule (1) of rule 12AA of the Central Excise Rules, 2002;"

(B) in rule 4, in sub-rule (2), in clause (a), in the Explanation, for item (i), the following item

shall be substituted, namely:-

“(i) an assessee engaged in the manufacture of articles of jewellery or parts of articles of

jewellery or both, falling under heading 7113 of the First Schedule of the Excise Tariff Act, shall

be eligible, if his aggregate value of clearances of all

excisable goods for home consumption in the preceding financial year, computed in the manner

specified in the said notification, did not exceed rupees fifteen crore;”.

Notification No. 35/2016 - Central Excise (N.T.) Dated 26th July, 2016

Objective: To amend the Central Excise Rules, 2002 in relation to articles of jewellery or parts

of articles of jewellery or both, falling under heading 7113 of the First Schedule to the Central

Excise Tariff Act, 1985 (5 of 1986

The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-

section (i), dated 1st March, 2002, vide notification No.04/2002-Central Excise (N.T), dated the

1st March, 2002, vide number GSR 143(E), dated the 1st March, 2002 and were last amended by

notification No.8/2016-Central Excise (N.T), dated the 1st March, 2016, published in the Gazette

50

of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number GSR 239(E), dated the1st

March, 2016.

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944),

the Central Government hereby makes the following rules further to amend the Central Excise

Rules, 2002, namely :-

1. (1) These rules may be called the Central Excise (Second Amendment) Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Central Excise Rules, 2002 (hereinafter referred to as the said rules), -

(A) in rule 8, in Explanation-1,-

(i) item (a) and the entries relating thereto shall be omitted;

(ii) in item (b), the expression “, other than (a) above” shall be omitted.

(B) in rule 12, in sub-rule (1),

(i) in the fourth proviso, in clause (ii), after the figures, brackets and letters “199(I)”, the figures,

brackets and letters “,199(II)” shall be inserted;

(ii) in the fourth proviso, for the words beginning with “and does not manufacture any other”,

and ending with “close of the quarter to which the return relates.”, the following shall be

substituted, namely:-

“and does not manufacture any other excisable goods other than those specified in the said

notifications, he shall file a quarterly return in the form specified by notification by the Board, of

production and removal of goods and other relevant particulars, within ten days after the close of

the quarter to which the return relates.

Explanation. – In the case of the assessee availing exemption under Sl. No. 199(I) and 199(II),

of Notification No. 12/2012-Central excise, dated the 17th march, 2012, the date of submission

of quarterly return for quarter ending on 31st March, 2016, and quarter ending on 30th June,

2016, shall be the 10th August, 2016.”

(C) in rule 12AA,-

(i) in the marginal heading, for the words “article of jewellery or other articles of precious

metals”, the words “articles of precious metals falling under heading 7114 of the First Schedule

to the Tariff Act.” shall be substituted;

(ii) for sub-rule (1), the following sub-rule shall be substituted, namely:-

“(1) Notwithstanding anything contained in these rules, every person (not being an export-

oriented unit or a unit located in special economic zone) who gets articles of precious metals

falling under heading 7114 of the First Schedule to the Tariff Act, produced or manufactured on

his behalf, on job work basis, (hereinafter referred to as “the said person”) shall obtain

registration, maintain accounts, pay duty leviable on such goods and comply with all the relevant

provisions of these rules, as if he is an assessee.”

(iii) in sub-rule (9),-

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A. in Explanation 1, for the words and figures beginning with “articles of jewellery”, and ending

with “to the Central Excise Tariff Act, 1985”, the words and figures “articles of precious metals

falling under heading 7114 of the First Schedule to the Tariff Act” shall be substituted;

B. in Explanation 4, for the words and figures beginning with “articles of jewellery”, and ending

with “First Schedule to the Tariff Act”, the words and figures “articles of precious metals falling

under heading 7114 of the First Schedule to the Tariff Act” shall be substituted”.

Notification No. 34/2016- Central Excise (N.T.) dated the 26th July, 2016

Objective: To notify the Articles of Jewellery (Collection of Duty) Rules, 2016, applicable to

articles of jewellery or parts of articles of jewellery or both falling under heading 7113 of the

Central Excise Tariff Act, 1985 (5 of 1986).

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944),

the Central Government hereby makes the following rules, namely:–

1. Short title, extent and commencement. — (1) These rules may be called the Articles of

Jewellery (Collection of Duty) Rules, 2016.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Application. — These rules shall apply to the articles of jewellery or parts of articles of

jewellery or both, falling under Heading 7113 of the Central Excise Tariff Act, 1985 (5 of 1986).

3. Definitions. — In these rules, unless the context otherwise requires, –

(a) “Act” means the Central Excise Act, 1944 (1 of 1944);

(b) “assessment” includes self-assessment of duty made by the assessee;

(c) “assessee” means a manufacturer or principal manufacturer, as the case may be, of excisable

goods;

(d) “Board” means the Central Board of Excise and Customs constituted under the Central Board

of Revenue Act, 1963 (54 of 1963);

(e) “duty” means the duty payable under section 3 of the Act;

(f) “articles” means articles of jewellery or parts of articles of jewellery or both falling under

Heading 7113 of the Tariff Act, wherein the expression “articles of jewellery” shall have the

meaning assigned to it as under chapter note 9 of chapter 71 of the Tariff Act;

(g) “job work” means processing or working upon of raw materials or semi-finished goods

supplied to the job worker, so as to complete a part or whole of the process resulting in the

manufacture or finishing of articles of jewellery or parts of articles of jewellery or both falling

under heading 7113 of the First Schedule to the Central Excise Tariff Act;

(h) “job worker” means a person engaged in manufacture or processing on behalf of a principal

manufacturer, from any inputs or goods supplied by the principal manufacturer, so as to

complete a part or whole of the process resulting ultimately in manufacture of articles.

(i) “principal manufacturer” means every person (not being an export-oriented unit or a unit

located in a Special Economic Zone or any person who gives his pre-owned gold or any precious

metal, ornaments or jewellery for the purpose of being re-made or re-conditioned or gives

precious stones for the purpose of being mounted) who gets articles, produced or manufactured

on his behalf, on job-work basis and causes the sale of the articles for the first time.

52

(j) “silver studded articles” means articles of jewellery of silver studded with diamond, ruby,

emerald or sapphire falling under Heading 7113 of the Tariff Act, wherein the expression

“articles of jewellery” shall have the meaning assigned to it as under chapter note 9 of chapter 71

of the Tariff Act;

(k) “Tariff Act” means the Central Excise Tariff Act, 1985 (5 of 1986);

(l) “traded articles” means articles, on which appropriate duty (including nil duty) has already

been paid at the time of their sale for the first time.

(m) words and expressions used herein but not defined in these rules and defined in the Act shall

have the meaning respectively assigned to them in the Act.

4. Date for determination of duty. — (1) The rate of duty applicable to the articles, shall be the

rate in force on the date when such articles are sold for the first time by the manufacturer or

principal manufacturer, as the case may be, from his registered premises or centrally registered

premises or branches of such centrally registered premises.

5. Assessment of duty. — The assessee shall himself assess the duty payable on any excisable

articles.

6. Manner of payment. — (1) The duty on the articles sold for the first time by the

manufacturer or principal manufacturer, as the case may be, from his registered premises or

centrally registered premises or branches of such centrally registered premises, during a month,

shall be paid by the 6th day of the following month, if the duty is paid electronically through

internet banking or by the 5th day of the following month, in any other case :

Provided that in case of articles sold for the first time by the manufacturer or principal

manufacturer, as the case may be, during the month of March, the duty shall be paid by the 31st

day of March:

Provided further that where an assessee is eligible to avail of the exemption under a notification

based on the value of goods sold for the first time in a financial year, the duty on articles sold for

the first time during a quarter of the financial year shall be paid by the 6th day of the month

following that quarter, if the duty is paid electronically through internet banking and in any other

case, by the 5th day of the month following that quarter, except in case of articles sold for the

first time during the last quarter, starting from the 1st day of January and ending on the 31st day

of March, for which the duty shall be paid by the 31st day of March.

Explanation-1- For the removal of doubts, it is hereby clarified that, an assessee, engaged in the

manufacture or production of the articles shall be eligible, if his aggregate value of clearances of

all excisable goods for home consumption in the preceding financial year, computed in the

manner specified in the said notification, did not exceed rupees fifteen crore.

Explanation-2. - The manner of payment as specified in this proviso shall be available to the

assessee for the whole of the financial year.

Explanation-3. - For the purposes of this rule,-

(a) the duty liability shall be deemed to have been discharged only if the amount payable is

credited to the account of the Central Government by the specified date;

(b) if the assessee deposits the duty by cheque, the date of presentation of the cheque in the bank

designated by the Central Board of Excise and Customs for this purpose shall be deemed to be

the date on which the duty has been paid subject to realization of that cheque.

(2) Notwithstanding anything contained in sub-rule (1), the duty on the articles sold for the first

time from his registered premises or centrally registered premises or branches of such centrally

registered premises in the months of March, April, May and June of 2016, by an assessee shall

be paid by the 31st of July, 2016.

53

Explanation. - For removal of doubts, it is hereby clarified that the duty liability shall be deemed

to have been discharged only if the amount payable is credited to the account of the Central

Government by the specified date.

(3) Every assessee shall electronically pay duty through internet banking :

Provided that for reasons to be conveyed in writing to the Assistant Commissioner or the

Deputy Commissioner of Central Excise having jurisdiction, an assessee may make payment of

duty by any mode other than internet banking.

(4) If the assessee fails to pay the amount of duty by due date, he shall be liable to pay the

outstanding amount along with interest at the rate specified by the Central Government vide

notification under section 11AA of the Act on the outstanding amount, for the period starting

with the first day after due date till the date of actual payment of the outstanding amount.

(5) If the assessee fails to pay the duty declared as payable by him in the return within a period of

one month from the due date, then the assessee is liable to pay the penalty at the rate of one per

cent. on such amount of the duty not paid, for each month or part thereof calculated from the due

date, for the period during which such failure continues.

Explanation. - For the purposes of this sub-rule, ‘month’ means the period between two

consecutive due dates for payment of duty specified under sub-rule (1) or the first proviso to sub-

rule (1), as the case may be.

(6) The provisions of section 11 of the Act shall be applicable for recovery of the duty as

assessed under rule 5 and mentioned in the return filed under the Central Excise Rules, 2002, the

interest under sub-rule (4) and penalty under sub-rule (5) in the same manner as they are

applicable for recovery of any duty or other sums payable to the Central Government.

Explanation. - For the purposes of this rule, the expressions ‘duty’ or ‘duty of excise’ shall also

include the amount payable in terms of the CENVAT Credit Rules, 2004.

7. Daily stock account. - (1) Every assessee shall maintain separate records for receipt and sale

of manufactured and traded articles, indicating the particulars regarding description of the

manufactured articles, on a daily basis.

(2) All records and documents maintained by the assessee for manufactured articles, including

records showing receipts of articles manufactured or received back from job worker’s premises,

quantity of manufactured articles sold for the first time from the registered premises or centrally

registered premises or branches of such centrally registered premises for home consumption,

quantity of manufactured articles sold for the first time from the registered premises or centrally

registered premises or branches of such centrally registered premises for exports or any other

records and documents, shall be preserved for a period of five years immediately after the

financial year to which such records pertain.

(3) All records and documents maintained by the assessee for traded articles, including records

showing value of their traded stocks at the time of purchase or any other records and documents,

shall be preserved for a period of five years immediately after the financial year to which such

records pertain.

(4) All records of manufactured and traded articles maintained by the assessee under this rule

shall be maintained on weight and caratage basis.

(5) The assessee at his own option may preserve records under this rule in electronic form with

every page of the record so preserved authenticated by means of a digital signature.

8. Articles to be removed on invoice. - (1) No excisable articles shall be sold for the first time

by the assessee from his registered premises or the centrally registered premises or branches of

54

such centrally registered premises, except under an invoice (hereinafter referred to as the “first

sale invoice”).

(2) First sale invoice shall be duly signed by the assessee or his authorised agent and shall be

serially numbered. Such an invoice shall also contain the registration number, name of the

consignee, description of articles, classification and date of removal by sale.

(3) First sale invoice shall show value of manufactured and traded articles separately so as to

arrive at the excise duty payable on the manufactured articles.

(4) The invoice shall be prepared in duplicate and in the following manner, namely:-

(i) the original copy being marked as ORIGINAL FOR BUYER;

(ii) the duplicate copy being marked as DUPLICATE FOR ASSESSEE;

(5) The rules relating to digitally signed invoice under the Central Excise Rules, 2002 shall

mutatis mutandis apply in relation to the digitally signed invoice under these rules.

9. Job work in articles of jewellery or parts of articles of jewellery. - (1) A principal

manufacturer who gets articles manufactured on his behalf, on job work basis shall obtain

registration, maintain accounts, pay duty leviable on such articles and comply with all the

relevant provisions of these rules, as if he is an assessee.

(2) The principal manufacturer may supply or cause to supply to a job worker any inputs or

articles, so as to complete a part or whole of the process resulting in manufacture of articles

under a challan, issue voucher or any other document which shall contain the following details,

duly signed by the principal manufacturer or his authorised agent:

(a) name and registration number of the principal manufacturer;

(b) description and quantity of inputs or articles;

(c) name of the person carrying the input or articles along with his signature and proof of

identity; and

(d) date of supply of inputs or articles.

(3) The principal manufacturer shall maintain records for the inputs or articles received back

from the job worker against the inputs or articles supplied to them.

(4) The job worker shall not be required to get himself registered or shall not be required to

maintain any record evidencing the processes undertaken for the sole purposes of undertaking

job work under these rules.

Explanation. - For the removal of doubts, it is hereby clarified that if any articles are lost,

destroyed, found short at any time before the sale for the first time of the articles, the principal

manufacturer shall be liable to pay duty thereon as if such articles were sold for home

consumption for the first time from the registered premises or centrally registered premises or

branches of such centrally registered premises, at a value equal to cost of raw material plus job

charges paid by the principal manufacturer in case he had got such articles manufactured on job

work basis. In other cases, the value of such articles shall be the value of raw materials plus the

making charges charged by the manufacturer for similar articles.

10. Removal of inputs or semi-finished articles or finished articles for certain purposes.-(1)

A manufacturer or principal manufacturer, as the case may, may remove any inputs or semi-

finished articles or finished articles for further processing, testing, repair, re-conditioning,

hallmarking, display in exhibitions or for any other purpose including as samples, to some other

premises, without payment of duty, if such removal does not involve sale, under a challan, issue

voucher or any other document prepared by him for this purpose, duly signed by the

55

manufacturer or principal manufacturer, as the case may be, or his authorised agent. Such challan

or issue voucher or any other document shall contain the following details:-

(a) name and registration number of the manufacturer or principal manufacturer, as the case may

be;

(b) description and quantity of articles;

(c) name of the person carrying the articles along with his signature and proof of identity; and

(d) date of removal.

(2) The manufacturer or the principal manufacturer shall account for the articles removed and

returned in pursuance of sub-rule (1).

11. Receipt of duty paid articles for certain processes. - (1) Where any articles on which duty

had been paid at the time of their sale for the first time by the assessee from his registered

premises or the centrally registered premises or branches of such centrally registered premises,

are brought back as such, the assessee shall state the particulars of such receipt in his records as

if they are traded articles and account for them in the trading stock account, provided no refund

of excise duty is claimed.

12. Optional scheme. - (1) Notwithstanding anything contained in sub-rule (1) of rule (7) or

sub-rule (3) of rule (8), the manufacturer or principal manufacturer, as the case may be, dealing

in both manufactured and traded articles, may also pay excise duty on his first sale value, by

treating his first sales during a month solely as sale of manufactured articles, if the quantity of

such sales during the month is less than or equal to the opening stock of manufactured articles at

the start of such month, at his own option, by giving a written declaration to the excise

authorities having jurisdiction by the 28th day of February of the previous financial year:

Provided that for the financial year 2016-17, such written declaration may be given to the

Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, having

jurisdiction, by the 31st day of July, 2016:

Provided further that for the period beginning from 1st March, 2016 to 31st March, 2016 such

declaration may be given by the 31st day of July, 2016:

(2) An option given under sub-rule (1) shall be valid for whole of the financial year for which it

is given by the manufacturer or the principal manufacturer, as case may be.

(3) For availing the optional scheme under sub-rule (1) a manufacturer or principal manufacturer,

as the case may be, shall maintain,-

a) a record containing the stock details of manufactured articles and traded articles separately for

silver studded articles; gold or platinum articles studded with diamonds; and other gold or

platinum articles, on weight or caratage basis; and

b) a record of the value of such traded articles separately at their purchase prices.

(4) The opening stock, sales and closing stock of three types of articles, referred to in sub-rule

(3), shall be calculated separately for assessing the excise duty payable during a month.

(5) The sales in excess of opening stock of manufactured articles, during a month shall be

deemed to be sale out of the opening stock of traded articles on which no excise duty shall be

payable.

(6) If the sales during a month are in excess of the sum total of the opening stock of the

manufactured articles and opening stock of traded articles, then such excess sales shall first be

deemed to be that of manufactured articles received during that month and the balance, if any,

shall be deemed to be that of traded articles received during the month

56

(7) If the sales during a month are less than the opening stock of manufactured articles, then the

balance stock of manufactured articles shall be carried forward and the opening stock of

manufactured articles for the succeeding month shall be the sum total of such carried forward

stock of manufactured articles and quantity of manufactured articles received from the job

worker’s premises or manufactured, during the month.

The following illustrates the above rules (all figures in kg):

Illustration 1. - A manufacturer or a principal

manufacturer: has an opening stock as on 1st April

Manufactured

stock

Traded stock

Silver studded articles 60 20

Gold or platinum articles studded with diamonds 30 20

Other gold or platinum articles 20 20

Notification No. 33/2016 – Central Excise (N.T.) dated 26th July, 2016

Objective: To notify the tariff values for articles of jewellery or parts of articles of jewellery or

both, falling under heading 7113 of the First Schedule to the Central Excise Tariff Act, 1985 (5

of 1986).

In exercise of the powers conferred by sub-section (2) of section 3 of the Central Excise Act,

1944 (1 of 1944), the Central Government hereby fixes the tariff value in respect of the excisable

goods falling under heading 7113 of the First Schedule to the Central Excise Tariff Act, 1985 (5

of 1986) mentioned in column (2) of the Table below, to be the value as specified in the

corresponding entry in column (3), of the said Table, namely:-

Table

S. No.

Description of excisable goods Tariff value

(1) (2) (3)

1. Articles of jewellery or parts of articles

of jewellery or both, (other than those

which are manufactured from the

precious metal provided by the retail

customer).

Value at which such excisable goods are sold

for the first time from the registered premises

or from the centrally registered premises, or

branches of such centrally registered

premises (hereinafter referred to as the “first

sale value”) by the manufacturer or principal

manufacturer, as the case may be.

2. Articles of jewellery or parts of articles

of jewellery or both which are

manufactured from the precious metal

provided by the retail customer.

Value which is sum of the,-

(a) cost of additional materials used by the

manufacturer or principal manufacturer, as

the case may be, for making such articles of

jewellery;

Notification No. 32/2016 – Central Excise (N.T.) dated 11th July, 2016

57

Objective: to further amend notification No. 35/2001-Central Excise (NT) dated 26.06.2001 so

as to exempt mandatory physical verification of manufacturing premises in respect of

manufacturers of readymade garments and made up articles of textiles.

The principal notification No. 35/2001-Central Excise (N.T.), dated the 26th June, 2001,

published in the Gazette of India, Extraordinary, vide G.S.R. 464 (E), dated the 16th September,

1993 and last amended by notification No.6/2016–Central Excise (N.T.), dated the 1st March,

2016, published vide G.S.R. 237 (E), dated the 1st March, 2016

In exercise of the powers conferred by rule 9 of the Central Excise Rules, 2002, the Central

Board of Excise and Customs hereby makes the following further amendment in the notification

of the Government of India, in the Ministry of Finance (Department of Revenue), No. 35/2001-

Central Excise (N.T.) dated the 26th June, 2001, published in the Gazette of India, Extraordinary,

Part II, Section 3, Sub-section (i), vide G.S.R. 464 (E), dated the 26th

June, 2001, namely :-

In the said notification, in clause (8), after sub-clause (iii), the following sub-clause shall

be inserted, namely,-

“(iv) Every manufacturing factory or premises engaged in the manufacture or production of

goods falling under Chapters 61, 62 or 63 (except laminated jute bags falling under headings or

tariff item 6305, 6309 00 00 or 6310) of the First Schedule to the Central Excise Tariff Act, 1985

(5 of 1986) bearing a brand name or sold under a brand name and having a retail sale price (RSP)

of one thousand rupees and above, shall be exempted from sub-clauses (i) and (ii) above.”