You are on page 1of 2

CA GAURAV GUPTA

507 B, D-Mall, Netaji Subhash Place,


Pitampura, Delhi - 110034
P: 011 -32962487, 9811013940

B.Com (Hons.), FCA, LLB, DISA

SERVICE TAX UPDATES FOR M AY 2015


NOTIFICATION / CIRCULAR

Exemptions to certain insurance schemes


Exemption from the levy of whole of Service Tax has been granted to the following insurance
schemes by amending Notification No. 25/2012-ST dated 20.06.2012:
a. Life insurance plans
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Pradhan Mantri Jan Dhan Yojana (PMJDY)
b. General Insurance plan
- Pradhan Mantri Suraksha Bima Yojana (PMSBY)
c.

Service tax on services by way of collection of contribution under Atal Pension Yoja (APY)
have been exempted

The above amendment has been effected vide Notification No. No.12/2015-Service Tax, dated
30.04.2015.

Change in Cenvat Credit Rules to effect changes in Excise


Rule 3(7)(b) of the CCR, 2004 has been amended so as to allow utilisation of credit of Education
Cess and Secondary & Higher Education Cess for payment of basic excise duty in the following
situations:
a.
b.
c.

Education Cess and Secondary & Higher Education Cess on inputs or capital goods
received in the factory of manufacture of final product on or after the 01.03.2015;
Balance 50% Education Cess and Secondary & Higher Education Cess on capital goods
received in the factory of manufacture of final product in the financial year 2014-15; and
Education Cess and Secondary & Higher Education Cess on input services received by
the manufacturer of final product on or after 01.03.2015.

The above amendment has been effected vide Notification No.12/2015-Central Excise (N.T.),
dated 30.04.2015.
However, no Credit of unutilized balance of Education Cess and Secondary & Higher
Education Cess lying as on 01.03.2015

Exemption from Service Tax against scrip under MEIS and SEIS
Exemption has been granted to taxable services provided or agreed to be provided against a
scrip by a person located in the taxable territory from the whole of the service tax leviable thereon

Page | 1

CA GAURAV GUPTA
B.Com (Hons.), FCA, LLB, DISA

507 B, D-Mall, Netaji Subhash Place,


Pitampura, Delhi - 110034
P: 011 -32962487, 9811013940

under section 66B of the said Act. Scrips as against exemption provided by the Notifications are
as under:
a.

b.

Service Exports from India Scheme duty credit scrip issued by the Regional Authority in
accordance with paragraph 3.10 read with paragraph 3.08 of the Foreign Trade Policy.
Notification No. 11/2015 dated 08.04.2015
Merchandise Exports from India Scheme duty credit scrip issued to an exporter by the
Regional Authority in accordance with paragraph 3.04 read with paragraph 3.05 of the
Foreign Trade Policy Notification No. 10/2015 dated 08.04.2015

The exemption has been granted in line with the two schemes announced by Government of
India in Foreign Trade Policy, 2015-2020.
IMPORTANT CASES OF SERVICE TAX

In the case of M/s Muthoot Finance Ltd. Vs. Union of India And Others, Honble Kerala High
Court has held that no predeposit is required filing of appeal in any case instituted and lis
commenced prior to August 6, 2014. The Court held that the institution of a suit carries with it an
implication that all rights of appeal then in force are preserved to the parties thereto till the rest of
the career of the suit and, further, that the right of appeal that is vested is to be governed by the
law prevailing at the date of institution of the suit or proceeding, and not by the law that prevails at
the date of its decision or at the date of filing of the appeal. Thus, in such cases, stay application
along with appeal can be filed.

In the case of Shravan Banarasilal Jejani Vs. Commissioner of Central Excise, Nagpur
[(2015) 55 taxmann.com 363 (Mumbai CESTAT)], Honble Mumbai Tribunal has held that
period of limitation under Section 11B of the Excise Act will not apply in case of refund of Service
tax paid inadvertently, where no such Service tax liability exist.

In the case of Indian Farmer Fertiliser Co-operative Ltd. v CCE, Merrut [[2014] 48
taxmann.com 143 (New Delhi - CESTAT)], it was held that the recipient of the taxable service
who has borne the burden of service tax is entitled to claim refund. The decision has been based
on the decision of the Constitution Bench in Mafatlal Industries wherein Honble Apex Court has
ruled that Section 11B does provide for a purchaser presenting a claim for refund, provided he is
able to establish that he has not passed on the burden to another person.

In the case of CCE, Chennai-IV v Hwashin Automotive India (P.) Ltd. [[2015] 56
taxmann.com 349 (Madras)], affirmed the decision of Tribunal holding that payment by the
appellants of an amount as required in terms of Rule 6 (3)(b) of CCR followed by several letters
of protest to the department do not represent duty and the refund of the same need not be
subjected to the procedure prescribe under Section 11 B of the Central Excise Act.

IMPORTANT DATES FOR M AY 2015


5th May 2015

Payment of Service Tax when utilizing Cenvat Credit by all assessees other than
individual and firms

6th May 2015

Deposit of Service Tax electronically by all assessees other than individual and
firms

Page | 2