Vision

To evolve as a catalyst of growth for the area of Dakshina Kannada guided by the business ethics and

traditions evolved in this region over the years and driven by the sustained enthusiasm of making the

best use of the rich material and intellectual resources of this region.

Mission Statement

We, who constitute the representative body of business, trade and industry of Dakshina Kannada, are

on a committed mission of making Dakshina Kannada a favourable destination for investment and

economic growth by
a. Promoting quality and best business practices amongst our members
b. Being proactive in partnering with the governmental agencies in formulating and
implementing favourable business policies
c. Empowering the business, trade and industrial community with the best of business
intelligence
d. Making the commercial establishments of this area globally competitive and giving
them a global recognition,
e. Promoting responsible corporate citizenship among our members and facilitating
social harmony and inclusive growth of all the sections of the society.

Enter your e-mail address here:

Top of Form

Bottom of Form
 About Us

With a modest beginning on 20th December 1940, today we are recognized as one

of the respected Chambers of Commerce and Industry in Karnataka. We are a

partner in growth of the region, serving the Trade and Industry in this coastal

region of Karnataka for the past 68 years. We are at the forefront of trade &

commerce activities in the region of Dakshina Kannada. We promote and protect the

interests of anyone engaged in trade, commerce, manufacturing and allied activities

specifically in the region of Dakshina Kannada & India in general. We perform a

proactive role to promote all legislative and trade measures introduced by the

Government and its agencies and also act as a vigilant watchdog to oppose adverse

measures so that the commercial activities in the region are not adversely affected.

We also promote free and fair trade practices by the commercial establishments in

our region.

We are today, the apex body in the region, and along with our members are
working towards making the region of Dakshina Kannada congenial for sustained
economic activities by entrepreneurs, business houses and corporate leading to
better employment, better utilization of resources and balanced inclusive growth of
this region. Join us in our Endeavour to make Dakshina Kannada one of the most
sought after business destination on the world

Total number of members as on date is 1255. Out of which 1130 are

from Mangalore and 125 are from Moffussil areas including 27

Affiliated Bodies. In the year 1996-97 Chamber introduced a new

 Category of Life membership. At present the strength of Life

Members is 452. In the year 2004-2005 Chamber introduced a new

Category of Honorary members. At present there are 3 Honorary

members. The Members include Merchants, Manufacturers,

Importers, Exporters, Industrialist's, Joint Stock Companies,

Scheduled Banks, Professionals and Trade Associations.

AFFILIATED BODIES

Sl. No. Address Representatives Conta

The Dakshina Kannada Automobile & Tyre

Sri Maroor Padmanabha Pai (O) 24
Dealers' Assoication, C/o. M. Padmanabha Pai
1 President (R) 24
& Co., N.H. 17, Kottara Chowki, Maroor's
mppaiandco@gmail.com (M) 98
Bldg., Mangalore - 575 006.

Sri Sumith S. Rao (O) 22

The District Small Industries Association
President (R) 22
2 Mangalore (R), Industrial Estate, Yeyyadi,
olympus_refg@yahoo.com (M) 98
Mangalore - 575 008.
dsiamlore@gmail.com Fax :

The Karnataka Cashew Manufacturers' Sri D. Gopalkrishna Kamath

(O) 22
3 Association, 205-208, Suprabhath, Kapikad, President
Fax :
Bejai, Mangalore - 575 004. kcma.mlr@gmail.com

The Mangalore Merchants' Association (R) No. Sri. C. A. Rahim ((O) 2

4 19, 1 Floor, Rahmath Complex, Azizuddin President (R) 24
Road, Bunder, Mangalore - 575 001. crahim43255@Yahoo.co.in (M) 98

(O) 08
The Puttur Chamber of Commerce & Industry Sri. K. Keshava Pai
5 (R) 08
G. L. Complex, Main Road, Puttur - 574 201. President
(M) 94

(O)24
D.K. Hotels & Restaurants Assn. II Floor, Ram
Sri Kudpi Jagadish Shenoy 42693
6 Bhavan Complex, Kodialbail, Mangalore - 575
President (R) 24
003.
(M) 98
 FORTHCOMING PROGRAMMES AT KCCI
Chamber at Work

APRIL 2010
• 05.04.2010 - An address & interactive meeting with Shri Shashi Tharoor, Hon'ble
Minister of State for External Affairs, Government of India, New Delhi is
addressing the gathering during an Interactive Meeting held at the Meeting Hall of
KCCI.
• 13.04.2010 - An address & interactive meeting with Mr. Kavim V Bhatnagar, MBA,
PhD, On Deputation from Government of Madhya Pradesh Invest India Economic
Foundation addressed Chamber Members on "New Pension System" at the
Conference Room of KCCI.
• 19.04.2010 - A meeting of the Regional Advisory Committee was held at
Conference Hall, Central Excise, Mangalore. Sri M. Ganesh Bhat, KCCI Nominee
attended.
A meeting of the Public Grievance Cell was held at Conference Hall, Central
Excise, Mangalore. Sri M. Ganesh Bhat, KCCI Nominee attended.
KCCI has been selected as the 3rd Examination Centre in India for holding ICS
Professional Qualifying Examination which commenced from 19th April, 2010 at
KCCI Conference Room.
• 23.04.2010 -A meeting of the Tourism Sub-committee of KCCI was held at KCCI
Conference Room.
A meeting of the APMC Sub-committee of KCCI was held at KCCI Conference
Room.

MARCH 2010
• 03.03.2010 - A meeting with Deeptha Thattai, Asst. Professor, Civil Engineering
Dept., SRM University, T.N. on Coastal Study on Sea Erosion. Capt. John P.
Menezes, Former President & Chairman, Shipping & Port Relations Sub
Committee of KCCI and Office- bearers attended.
• 04.03.2010 - The District Level Single Window Agency Meeting was held at D.C´s
Office Court Hall, Mangalore. Sri Srinivas S. Kamath, President attended.
• 06.03.2010 - The Gateway Hotel inaugurated 3G Mobile Voice Data Services of
BSNL, D.K. Sri Srinivas S. Kamath, President and Office-bearers attended. The
Board meeting of KCCI was held at the Board Room.

FEBRUARY 2010
• 01.02.2010 - Sri Srinivas S. Kamath, President addressed Rotary Club of
Mangalore Mid Town.
A Condolence Meet to Sri Subhir Raha, Honorary Member of KCCI was held at
KCCI.
• 02.02.2010 - A meeting of the Membership Services sub-committee of KCCI was
held at the Conference Hall of KCCI.
• 03.02.2010 - A meeting of the APMC sub-committee of KCCI was held at the
Conference Hall of KCCI.

JANUARY 2010
• 04.01.2010 - A meeting of the Office bearers and KCCI Members Day Celebration
Sub-Committee was held at the conference hall of KCCI.
• 08.01.2010 - A meeting of the KCCI Members Day Celebration Sub-Committee
was held at the conference hall of KCCI.
• 09.01.2010 - A farewell Dinner Meet with Sri R. S. Sidhu, IRS, Commissioner of
Customs.
• 11.01.2010 - The Board meeting of KCCI was held at the Board Room. An
address on Bridging the Gap Towards Equality in India by Ms. Mabel Rebello,
Hon'ble Member of Parliament [Rajya Sabha], Jharkhand was held at the Meeting
Hall of KCCI.
A meeting on preparation for celebration of District Level Republic Day
Celebration was held at D.C's Office Hall.

DECEMBER 2009
• A meeting of the KCCI Members Day Celebration Sub-Committee was held at
conference hall of KCCI was held on 01.12.2009.
• Sri G. G. Mohandas Prabhu, Vice-President met Deputy Commissioner and
discussed with him regarding NH - NHAI etc. on 02.12.2009.
• The 137th District Consultative Committee Meeting (Under Lead Bank Scheme)
was held at Dakshina Kannada District, Zilla Panchayat, Meeting Hall, Kottara,
Mangalore was held on 03.12.2009. Sri Srinivas S. Kamath, President attended.
• Sri G. G. Mohandas Prabhu, Vice-President met Sri Prashanth N. Gawasane,
Project Director, NHAI, Mangalore and discussed with him regarding National
Highways etc. on 03.12.2009.

NOVEMBER 2009
• A meeting of the Small Industries Sub-Committee of KCCI to draw points for
discussion with Mr. Dinesh Rai, Secretary to GoI, MSME Department was held at
conference hall of KCCI on 02.11.2009.
• An Inter-action meet with Sri Dinesh Rai, IAS, Secretary Ministry of MSME
Government of India was held at the Gateway Hotel, Mangalore on 03.11.2009.
Sri Srinivas S. Kamath, President, Sri G. G. Mohandas Prabhu, Vice-President, Sri
B. Chandrakanth Rao and Sri Mohammed Ameen, Hon. Secretaries and Sri Jeevan
Saldanha, Director and Chairman, Small Scale Industries Sub-Committee of KCCI
attended.

OCTOBER 2009
• The Committee meeting of KCCI was held at KCCI Hall on 01.10.2009.
• A meeting on Recent Natural Calamities was held at D. C. Office on 05.10.2009.
• A meeting of the scheme of integration of persons with disabilities in the main
stream of technical and vocational Education for 2009-10 was held at Principal's
Chamber WPT, Bondel, Mangalore on 06.10.2009. Sri Srinivas S. Kamath,
President attended.
• The Managing Committee Meeting of the Indian Red Cross Society, D. K. District
Branch was held at Court Hall of D.C.'s Office on 06.10.2009. Sri Srinivas S.
Kamath, President attended.
• The RAC meeting of the Central Excise and Service Tax was held at Conference
Hall of Central Excise, Mangalore on 09.10.2009. Sri M. Ganesh Bhat, KCCI
Nominee attended.

September 2009
• A meeting of NITK - STEP was held on 02.09.2009.
 • A meeting of the Energy & Power Sub-committee of KCCI was held at the
conference hall of KCCI on 04.09.2009.
• An address and interactive meeting on "Current Status of Indian Economy and
Swadeshi Point of View" by Sri S. Gurumurthy, FCA, Corporate Consultant and
Leading Columnist and National Convenor of Swadeshi Jagaran Manch was held at
the Meeting Hall of KCCI on 12.09.2009.

August 2009
• A meeting of Local Committee of ESIC was held on 03.08.2009. Sri R. D. Kini,
Former President, KCCI attended.
• A meeting of the Shipping members with reference to implementation of National
Tribunal Award disputs between NMPT & Port Unions was held at KCCI Conference
Hall on 05.08.2009.
• A meeting of the Shipping members with reference to implementation of National
Tribunal Award disputs between NMPT & Port Unions was held at KCCI Conference
Hall on 06.08.2009.
• Sri Srinivas S. Kamath, President called on Sri E. Ahammed, Hon'ble Minister of
State for Railways during his visit to Mangalore on 10.08.2009 and submitted a
memorandum on Extension of Train No.6517 from Bangalore / Yashwanthpur -
Mangalore now extended upto Kannur in Kerala and starting of already
sanctioned Bangalore / Yashwanthpur - Arasikere - Mangalore Day Trian No.6515.

Achievements
a. It maintains a close link with Government Departments and keeps itself fully
informed of any changes in the Laws and Regulations concerning Trade,
Commerce and Industry.
b. Members are given advice and guidance connected with their business and also of
their privileges, duties and responsibilities.
c. Statistical information relating to trade movements, are collected, compiled and
made available to the members at a nominal cost.
d. It functions as a Bureau for disseminating information among the trading
interests inside India as well as with those outside the country.
e. In order to protect the image of our country as well as safeguard the interests of
the foreign buyers of local commodities, Certificate of Origin, Certificate of
Weight, Certificate of Quality etc. are issued on demand after making necessary
inspection at a cost.
f. The Chamber is in regular touch with other District Chambers of Commerce and
Industry in Karnataka on various matters.
g. It is affiliated to:
1. Federation of Indian Chambers of Commerce & Industry, New Delhi.
2. Federation of Karnataka Chambers of Commerce & Industry, Bangalore.
3. Confederation of Indian Industry, (Southern Region), Chennai/Bangalore.
4. Bangalore Chamber of Industry & Commerce, Bangalore.
5. Indian Merchants' Chamber, Mumbai.
h. The Chamber assists in securing the correct interpretation and implementation of
new laws promulgated by the Government and protects its members from
improper implementations and misinterpretations.
i. The Chamber makes regular study of all economic activities in the district and
offers suggestions and recommendations to the Government for implementation
of development schemes. Some of the major schemes which were initiated by the
Chamber and followed up to their successful implementations are :
 FOCUS AREA / ACTION PLAN FOR 2008-2009

INFRASTRUCTURE

 CDP [Comprehensive Development Plan] for Mangalore should be finalised immediately.

 Broadening of certain Roads in Mangalore.

 Feasibility study for setting up monorail in Mangalore

 Water Problem.

 Better Market facilities for Vegetable, Fish & Meat – Mangalore City Corporation

 Better Toilet facilities in the Mangalore City Corporation limits.

 Bus stand at various places in the Mangalore City Corporation limits.

 Traffic Police:

Surveillance system for Mangalore at all major junctions.

ROADS

 Permanent solution to the Ghat Problems.

 Roads / Over bridges completion under Port connectivity project.

 Four Laning of Roads upto Udupi.

 Four Laning of Roads from Kavoor to Airport.

 Broadening of NH 48 from B.C.Road to Uppinangadi.

 Broadening of State Highway from B.C.Road to Belthangady.

 Broadening of NH 13 from Mangalore to Karkala.

AIRPORT

 Air Cargo Complex

 Completion of International Terminal at Bajpe.

 Four laning of Roads from Kavoor to Airport

RAILWAYS

 Additional train to Bangalore during day time/ additional coaches to existing train.

 Development of 100 year old Mangalore Central both Platforms with better facilities and also at Mangalore Ju

 Kankanady - Padil Bajal under pass

 Railway line upto Bajpe Airport from Kenjar for Cargo Movement & Passenger movement.

TAXES

 Direct - Pre-budget Memorandum

- Budget Analysis & Live

- Post Budget Memorandum:

- We want Commissioner as well as Commissioner of Income-tax

Appeals who are functional in Mangalore.

 Indirect: (Central)
 Excise Duty - do –

 Service Tax

 Indirect (State) :

K-VAT - Set-up help desk where letters written by members are

replied and solutions arrived at.

TOURISM

 Full fledged Tourism office for D.K.

 Better facilities for Tourists at important Tourist Sites.

 Conclave on Tourism

 Encourage Private Tour operators to train Tour Guides.

BANKING

 Conclave of Indian Bankers and International Bankers for promoting

International Banking in Mangalore and SEZ.

INDUSTRY

 Pending subsidy matter

 Request for more place to set up of a new Industrial area

 Programme on Export Management for one day with Vishweshwarayya

Industrial Trade Centre for Exports.

 Product display of Industrial products in Peru/ Chile, South America in

co-ordination with Government of Karnataka.
 Vendor development programme cum exhibition.

 A product display exhibition in Mangalore for Machinery office equipment manufacturers.

 Welcome other I.T. Giants like WIPRO, Satyam etc.

 Upgradation of Basic Infrastructure facilities at existing Industrial Area

at Baikampady.

SHIPPING INDUSTRY

 Welcome Supply Chain Management groups.

 Seminar on Shipping Practice :

Interface between Professional on Water Front, Industry and other

related Service Industry in Association with the Institute of Chartered
Ship Brokers, London - Chennai Chapter

 Port should provide facilities inside the Port for packing

ITI CENTRE OF EXCELLENCE

MEMBERS

Bring out a Booklet on various Tax Laws which will act as a handbook. The handbook will be a Compendium of G
various Tax Laws. Basically an interface between Professionals, Trade & Industry.

 Income Tax
 P.F. Act
 Gratuity Act
 Bonus Act
 Excise Duty
 K-VAT
 Shops & Establishment Act
 Profession Tax
 APMC MATTERS

 Status of Market Sub Yard at Bunder and all other connected matters.

PASSPORT OFFICE

 A full fledged Passport Office to be set up at Mangalore.

KCCI - PSI – CONNECT PROJECT

As a part of our Social Commitment for the benefit of workers of KCCI Members, KCCI has signed a Memorandum
(Population Services International) to implement PSI-CONNECT Project i.e. to create awareness on HIV/ AIDS &

Under this Project –

The number of factories covered - 52

No. of workers covered so far - 1635

PROGRAMMES / VALUE ADDITION TO MEMBERS

 Monthly 2 meetings.

 Seminar on Marine Products

 Seminar on Banking

 Seminar on Shipping Industry

 Help Desk on VAT

 Handbook on various Tax Laws Applicability do’s & don’ts /Information on Registration / Licensing Authorities

 Educative and interactive programmes/ workshops for better understanding of Tax Laws
  Members Day

• Presentation:The Chamber is honoured with representation to the following Public

Bodies. The periodical Meetings of these Public Bodies have been attended by the
President /Respective nominees of Chamber, where the subjects presented by
Chamber Nominees have been honourably considered for necessary implementation.

Sl.
Public Bodies Proposed KCCI Nominee
No.

Federation of Indian Chambers of Commerce & Industry, New 1. Entertainment Committee : Sri Srin
1
Delhi 2. Taxation Committee : Sri Srinivas S

1. Managing Committee : Sri Srinivas

2. State Taxes Sub-Committee : Sri S
3. Special Invitee to the Managing Com
Federation of Karnataka Chambers of Commerce & Industry,
2 President
Bangalore
4. District Development Co-ordination
Kamath, President
5. Trade & APMC Committee : Sri G. G

3 Confederation of Indian Industry, Chennai/Bangalore Sri Srinivas S. Kamath, President

4 Bangalore Chamber of Industry & Commerce, Bangalore Sri Srinivas S. Kamath, President

5 Indian Merchants' Chamber, Mumbai Sri Srinivas S. Kamath, President

New Mangalore Port Trust Board

6
i) Trusteeship Capt. John Prasad Menezes Former Pr

Monthly Journal
Our Publications

The Chamber publishes a monthly Journal of KCCI since 1971. The activities of the Chamber are

highlighted in this Journal along with the publications of various Laws, Notifications and Clarifications.

Statistical information is also provided for the benefit of the general trade. The Journal has grown to a

commanding position in circulation and readership. It has proved immensely popular with our

members and others alike even reaching foreign countries like Dubai & U.K.

EDITORIAL BOARD OF KCCI FOR THE YEAR 2009-10

Editor : Sri Arjun L. A. Pinto Prabhu

Members : Sri Srinivas S. Kamath, Sri G. G. Mohandas Prabhu, Smt. Latha R. Kini, Sri B.

Chandrakanth Rao, Sri Mohammed Ameen, Sri K. Surendra Prabhu, Sri M. Aziz Ahmed, Sri. Nigam B.

Vasani, Sri Nanda Gopal Shenoy, Sri Ramamohan Pai Maroor.

 K.C.C.I. JOURNAL APRIL, 2010

Contents

• Editorial
• President´s Message
• KCCI Library
• Photo Gallery
• Chamber At Work
• Important Letters Received/Representations made by KCCI
• Development of Mangalore Central Railway Station
• Assessee Awareness On ACES
• Notification
• Karnataka Budget 2010-2011 - Proposed Amendments in VAT provisions
• Air Timings & Railway Timings
• New Pension System of the Government of India
• Air Timings & Railway Timings
• Market Report
• Membership Renewal Notice
Kanara Chamber Of Commerce & Industry

Circular No. 06 /2010, F.NO. DGEP/SEZ/13/2009, dated 19th March, 2010

Rebate under Rule 18 on clearances made to SEZs. reg.
A few representations have been received from various field formations as well as from various units

on the issue of admissibility of rebate on supply of goods by DTA units to SEZ.

2. A view has been put forth that rebate under Rule 18 of the central Excise Rules, 2002 read with
Notification 19/2004- CE (NT) dated 06.09.2004 is admissible only when the goods are exported out

of India and not when supplies are made to SEZ.

3. The matter has been examined. The circular No. 29/2006-Cus dated 27.12.2006 was issued after

considering all the relevant points and it was clarified that rebate under Rule 18 is admissible when

the supplies are made from DTA to SEZ. The Circular also lays down the procedure and the

documentation for effecting supply of goods from DTA to SEZ, by modifying the procedure for normal

export. Clearance of duty free material for authorised operation in the SEZ is admissible under Section

26 of the SEZ Act, 2005 and procedure under Rule 18 or Rule 19 of the Central Excise Rules is

followed to give effect to this provision of the SEZ Act, as envisaged under Rule 30 of the SEZ Rules,

2006.

4. Therefore, it is viewed that the settled position that rebate under Rule 18 of the Central Excise

Rules, 2002 is admissible for supplies made from DTA to SEZ does not warrant any change even if
Rule 18 does not mention such supplies in clear terms. The field formations are required to follow the

circular no. 29/2006 accordingly.

Sd/- (Praveen
Mahajan)
Director Gene

Circular No. 919 / 09 / 2010 – CX, F.No. 201/20/2009-CX 6, dated 23rd March
2010.
Procedure for electronic filing of Central Excise and Service Tax returns and for
electronic payment of excise duty and service tax.
Attention is invited to Circular No. 791/24/2004 dated 01.06.2004 and No. 52/1/2003 dated

11.03.2004 (modified by Circular No. 71/1/2004-ST dated 02.01.2004) prescribing the procedure for

electronic filing of Central Excise and Service Tax returns. Attention is also invited to Notification No.

04/2010-Central Excise (NT) and No. 01/2010-ST both dated 19.02.2010 providing for mandatory

electronic filing of Excise and Service Tax returns and payment of excise duty and service tax by all

the assessees who have paid central excise duty or service tax of Rs. 10 Lakhs or more (including

payment by utilisation of Cenvat credit) in the previous financial year.

2. DG (Systems) has prepared comprehensive instructions outlining the procedure for electronic filing

of excise and service tax return and electronic payment of taxes under ACES. The same is enclosed.

The said instructions outline the registration process for new assessees, existing assessees, non–

assessees and for Large Taxpayers Unit assessees, steps for preparing and filing of return, using of

XML Schema for filing dealers’ return, procedure for obtaining acknowledgement of E-filed return,

procedure for E-payment etc. It is requested to sensitise concerned officers and trade and industry

regarding the instructions.

3. As a large number of taxpayers would be required to file Excise and Service Tax return and to pay

the taxes electronically, it is requested that trade and industry may be provided all assistance so as to

help them in adopting the new procedure.

4. Field formations and trade/industry/service provider may also please be informed suitably.
Sd/- (V.P.Sing
Under Secreta
(C.X.6)

Procedure for Electronic filing of Central Excise and Service Tax returns and
Electronic Payment of Taxes
In continuation of its efforts for trade facilitation, CBEC has rolled-out a new centralized, web-based

and workflow-based software application called Automation of Central Excise and Service Tax (ACES)
in all 104 Commissionerates of Central Excise, service Tax and large Tax Payer Units (LTUs) as on

23rd December, 2009. ACES is a Mission Mode project (MMP) of the Govt. of India under the national

e-governance plan and it aims at improving tax-payer services, transparency, accountability and

efficiency in the indirect tax administration in India. This application has replaced the current

applications of SERMON, SACER, and SAPS used in Central Excise and Service Tax for capturing

returns and registration details of the assessees and hence, in supercession of the CBEC Circular

No.791/24/2004-CX. dated 1.6.2004 and CBEC Circular No. ST 52/1/2003 dated 11.03.2003, this

revised circular is being issued.

II. Modules The ACES application has interface for:

• Central Excise Assessees

• Service Tax Assessees

• Central Excise Departmental Officers

• Service Tax Departmental Officers

It has automated the major processes of Central Excise and Service Tax - registration, returns,

accounting, refunds, dispute resolution, audit, provisional assessment, exports, claims, intimations

and permissions. It is divided into the following modules:

1. Access Control of Users (ACL)

2. Registration (REGN): Registration of assessees of Central Excise & Service Tax including on-line

amendment.

3. Returns (RET): Electronic filing of Central Excise & Service Tax Returns

4. CLI: Electronic filing of claims, intimations and permissions by assessees and their processing by

the departmental officers

5. Refund (REF): Electronic filing of Refund Claims and their processing

6. Provisional Assessment (PRA): Electronic filing of request for provisional assessment and its

processing by the departmental officers.

7. Assessee Running Account

8. Dispute Settlement Resolution (DSR): Show Cause Notices, Personal Hearing Memos, Adjudication

Orders, Appellate and related processes.

9. Audit Module

10. Export Module for processing export related documents

III. Benefits to the Assessees

1. Reduce Physical Interface with the Department

2. Save Time

3. Reduce Paper Work

4. Online Registration and Amendment of Registration Details

5. Electronic filing of all documents such as applications for registration, returns [On-line and off-line
downloadable versions of ER 1,2,3,4,5,6, Dealer Return, and ST3], claims, permissions and

intimations; provisional assessment request, export-related documents, refund request

6. System-generated E-Acknowledgement

7. Online tracking of the status of selected documents

8. Online view facility to see selected documents

9. Internal messaging system on business-related matters

IV. Registration Process:

To transact business on ACES a user has to first register himself/herself with ACES through a process

called ‘Registration with ACES’. This registration is not a statutory registration as envisaged in

Acts/Rules governing Central Excise and Service Tax but helps the application in recognizing the

bonafide users. Described below are steps for taking registration by a new assessee, existing

assessee, non-assessee and a Large Tax Payer Unit (LTU).

(a) New Assessee :

1. The user needs to log onto the system, through internet at http://www.aces.gov.in

2. He/she chooses the Central Excise/Service Tax button from the panel appearing on the left of the

webpage.

3. Clicks the button “New Users Click here to Register with ACES” in the Log-in screen that appears

after clicking Central Excise/Service Tax button.

4. Fills in and submits the form “Registration with ACES”, by furnishing a self-chosen user ID and e-

mail ID. User ID, once chosen is final and cannot be changed by the assessee in future.

5. The system will check for availability of the chosen User ID and then generate a password and send

it by e-mail, mentioned by him/her in the Form.

6. ACES provides assistance of ‘Know your location code’ for choosing correct jurisdictional office.

7. The user then re-logs-in and proceeds with the statutory registration with Central Excise/Service

Tax, by filling-in the appropriate Form namely A-1, A-2 or ST-1 etc. by clicking the “Reg” link in the

Menu bar that appears on the top of the screen. For security reasons, the password should be

changed immediately.

8. The system instantaneously generates an acknowledgement number after which the registration

request goes to the jurisdictional Assistant or Deputy Commissioner (AC/DC). Depending on the

instructions in force, assessees may be required to submit certain documents to the department for

verification. After due processing, the AC/DC, in case of Central Excise and Superintendent

/Commissioner (for centralized registration only), in case of Service Tax, generates Registration

Certificate (RC) and a message to this effect is sent to the assessees electronically. The assessee can

view this and take a print-out of this.

9. Depending on the option chosen by the assessee, the signed copy of the RC can be sent by post or

can be collected by assessee in person.

10. While submitting registration form, if the assessee makes a mistake in choosing a wrong

jurisdiction (Commissionerate/Division/ Range), ACES provides a facility to the AC/DC to forward the

application to the correct jurisdictional officer to issue registration and a message to this effect is sent

to the assessee for information.

11. The registration number will be same as the current 15-digit format with minor change such as

For-PAN based Assessees

1-10 digits – PAN of the Assessee

11-12 digits–EM (Excise Manufacturer), ED (Excise Dealer), SD (Service Tax)

13-15–Systems generated alphanumeric serial number For non-PAN based assessees

1-4 digits TEMP

5-10 Systems generated alpha numeric number

11-12 EM (Excise Manufacturer) or ED (Excise Dealer), SD (Service Tax)

13-15–Systems generated alphanumeric serial number

(b) Existing Assessee

1. The existing assessees will not have to take fresh registrations. They will have to only register with

the ACES application. This can be done in the following manner :

• ACES application will automatically send mails to the e-mail IDs of the assessee, as available

in the existing registration data base, indicating a TPIN number, and password. The mail will

contain a hyperlink to the website.

• Assessee clicks on the hyperlink and is taken to ACES application

• Assessee submits the form after filling the requisite information including the password

provided in the e-mail, a new User ID and new password. User ID, once chosen is final and

cannot be changed by the assessee in future.

• On successful registration with ACES, the assessee can transact business through ACES.

2. Existing assessees should note that they should register with ACES by following the procedure at

(1) above and they should not register with ACES through the direct method, meant for new

assessees, as discussed under (a) above. They should also not fill-in registration forms again as it will

lead to allotment of new registration numbers by the system.

3. Assessees should ensure that their contact details in the department’s registration data base are

updated to include their valid and current e-mail ids, otherwise they will not receive any such mail.

Those assessees who have not yet furnished their email IDs to the department or even after

furnishing the ID have not received the TPIN mail from ACES are advised to contact the jurisdictional

Range Officers or LTU Client Executives and furnish their email IDs in writing. The officer will

thereafter incorporate the email ID in the ACES registration database of the assessee and arrange to

send the TPIN mail to the assessee’s email ID.

(c) Non-Assessee

1. This category of registration is given in ACES to any individual, firm or company which requires to

transact with the Central Excise or Service Tax Department, though not an assessee such as (a)

merchant exporter, (b) co-noticee, (c) refund applicant, (d) persons who have failed to obtain CE/ST

registration as required under the law and against whom the Department has initiated proceedings

and (e) persons who are required to tender any payment under CE/ST Act /Rules. The Non-assessees

are not required to file any tax returns.

2. Where such persons desire to seek non-assessee registration they follow same steps as in case of

new assessee except that while choosing the registration form in step (vii) they have to choose and fill

in the Non-assessee form.

3. In case the assessee is taking such registration for claiming any refund or rebate it is mandatory to

furnish his/her valid PAN.

4. A Non-assessee registration can also be done by the designated officer of the Commissionerate, on

behalf of the non-assessee.

(d) Large Tax Payer Unit (LTU) Assessee/Client 1. The consent form will have to be submitted

manually by the New LTU assessees to the jurisdictional LTU office which will be processed off line

2. The approved consent form will be uploaded by the competent officer of the Group LTU (GLTU) into

ACES

3. Any new unit of an existing LTU, which applies for registration with ACES will be automatically

attached with the LTU Commissionerate based upon PAN details in the registration form

4. As soon as the new or existing unit is attached with the LTU Commissionerate, a suitable intimation

will be automatically sent by the ACES to the existing jurisdictional Commissionerate and the pending

items of work will be transferred to the LTU Commissionerate

5. For existing LTU assessees, the process of registration is same as explained in Sub Para (b) above.

IMPORTANT:

1.The user ID once selected will be permanent and cannot be changed. However, it is desirable to

frequently change passwords

2. The User ID should be of 6-12 alphanumeric characters, no special character such as !@#$%*&( )+

or spaces except underscore ‘-‘ shall be allowed.

3. New assessee seeking registrations in Central Excise and Service Tax will also submit to the

jurisdictional Range officer, a printout of the application form submitted online duly signed by the

authorized signatory along with required documents.

4. Assessees should note that the e-mail ID is furnished to the department in writing, and they will be

responsible for all communications to and from this email ID. Currently, ACES provides for

communication to one email ID only. After registration with the ACES, assessees, on their own, can

modify their registration details online, including their e-mail ID.

5. In the interest of security and data protection, assessees are advised to change their passwords

regularly and not to share it with unauthorized persons. In case of any dispute, the person whose user

ID and Password has been used to access the application will be held liable for the action and any

other consequences.

V. E-filing of Returns : The assesses can electronically file statutory returns of Central Excise and

Service Tax by choosing one of the two facilities being offered by the department at present: (a) they

can file it online, or (b) download the off-line return utilities which can be filled-in off-line and

uploaded to the system through the internet.

a. Steps for preparing and filing returns

(1) Returns can be prepared and filed on line by selecting the ‘File Return’ option under RET module

after logging into the ACES.

(2) All validations are thrown up during the preparation of the return in this mode and the status of

the return filed using the online mode is instantaneously shown by ACES.

(3) Returns can also be prepared and filed off-line. Assessee downloads the Offline return preparation

utility available at http://www.aces.gov.in (Under Download)

(4) Prepares the return offline using this utility. The return preparation utility contains preliminary

validations which are thrown up by the utility from time to time.

(5) Assessee logs in using the User ID and password.

(6) Selects RET from the main menu and uploads the return. Instructions for using the offline utilities

are given in detail in the Help section, under ‘Download’ link and assessees are advised to follow

them.

(7) Returns uploaded through this procedure are validated by the ACES before acceptance into the

system which may take up to one business day. Assessee can track the status of the return by

selecting the appropriate option in the RET sub menu. The status will appear as “uploaded” meaning

under process by ACES, “Filed” meaning successfully accepted by the system or “Rejected” meaning

the ACES has rejected the return due to validation error. The rejected returns can be resubmitted

after corrections.

(8) Once the Central Excise returns are filed online in ACES or uploaded to the system using the off-

line utility, the same can not be modified or cancelled by the assessee. The Service Tax returns,

however, can be modified once as per rules up to 90 days from the date of filing the initial return.

(9) Self-assessed CE returns, after scrutiny by the competent officer, may result into modification.

Both the ‘Original’ and the ‘Reviewed’ return can be viewed by the assessee online.

b. Using XML Schema for filing Dealers Return : Currently, the ACES Application allows on-line

filing of Quarterly Returns by the Registered Dealers accessing the site www.aces.gov.in by using the

excel utility. Some assesses who use their own software application in their offices find the process of

manual entry of data in the excel format of Returns as a time consuming and avoidable exercise. A
new feature of XML schema has now been introduced. Now using the schema, assessees, after making

necessary modifications in their own software application, can generate their return from their

application. Below mentioned steps elaborate the process to prepare, validate and upload the Dealer’s

Return.

Steps to prepare the XML

Step 1: ACES application accepts the return in XML format. Prepare the Dealer return XML and

validate it against the schema ACES_DLR.xsd provided.

Step 2: Login to the ACES application and upload the XML for processing. XML will be again validated

against same XSD again before processing.

XML File only will be considered valid if it satisfies the requirements of the schema (predefined XSD)

with which it has been associated. These requirements typically include such constraints as:

Elements and attributes that must/may be included, and their permitted structure The structure as

specified by regular expression syntax Instructions for using the schema are given in detail in the Help

section, under ‘Download’ link. Assessees are advised to follow them.

c. Filing of Returns and other documents through the ACES Certified Facilitation Centres

(CFCs)

Very soon, CBEC will be setting up ACES Certified Facilitation Centres (CFCs) with the help of

professional bodies like Institute of Chartered Accountants of India (ICAI), Institute of Cost and Works

Accountants of India (ICWAI) etc. These CFCc will provide a host of services to the assessees such as

digitization of paper documents like returns etc. and uploading the same to ACES. Assessees requiring

the services of the CFCs may be required to pay service fees to the CFCs. CBEC will approve the

maximum rates at which CFCs can charge their customers for the services rendered by them. For this

purpose, assessees are required to write to the department authorizing one of the CFCs, from the

approved list, to work in ACES on their behalf. They have to furnish the name and other details of the

CFCs, including the registration No issued by the ICAI/ICWAI etc. At any given time, one assessee can

authorize one CFC, while one CFC can provide services to more than one assessee throughout India.

In case the assessee wants to withdraw the authorization, it can do so by intimating the department.

However, an assessee will be held liable for all actions of omission or commission of the CFC, during

the period they are authorized by him/her to work in ACES.

d. Validation of the entries made while filling return

1. At the time of making entry in the electronic format of the relevant return, the software does some

preliminary validation for ensuring correctness of data, either concurrently or at the time of saving /

submitting the return. This validation process is automated. The user is prompted by the application

software to correct the particulars entered wherever required. In respect of certain entries, although

the application alerts the assessee about any entry found erroneous or inconsistent, as per the

automated validation process, the assessee is still allowed to proceed further to complete data entry
of the return and finally submit it electronically. But in some cases the assessees are not allowed to

proceed further unless the error indicated is corrected.

2. A return filed electronically is subject to automatic verification process by the application and

defective returns are marked to the departmental officer for review and correction. While reviewing

the return the officer may seek some clarification from the assessee, call for some information,

records or documents which should be furnished by the assessee. In case of review and correction of

returns by the departmental officers, assesses will receive a message from the application and they

can log in to the application to view the reviewed returns online.

3. Returns, captured off-line using the Downloadable utility and uploaded later on, are further

subjected to certain validation checks. Processing of uploaded returns, using the off-line versions, is

done at the end of one business day and the status can be viewed by the assessees under the ‘VIEW

STATUS’ link under ‘RET’ module. Status is described as ‘UPLOADED’, ‘FILED’ or ‘REJECTED’ and they

denote as follows:

* UPLOADED denotes that return is uploaded and under processing (assessees are advised to view the

status after the end of a business day).

* FILED denotes that uploaded return is accepted by system.

* REJECTED denotes that return is rejected due to errors. (The assessees are required to correct the

return and upload it again.)

4. There is no provision in ACES application to allow assessees to make corrections to the returns filed

by them. Once the return is accepted by the system as successfully ‘filed’, no modification can be

made by the assessee. However, if the return is rejected, the assessee can correct the errors and

upload it again. The assessees are, therefore, advised to take utmost care while fill-in in the returns.

They may, however, bring it to the notice of the departmental officers.

e. Acknowledgement of E-Filing of the return : In the case of a Central Excise or service Tax

return filed on-line, ACES application software acknowledges it by displaying an Acknowledgement

message. A unique document reference number is generated which consist of 15-digit registration

number of the assessee, name of the return filed, the period for which return is filed etc. This is also

automatically communicated to the email id of the assessee by the application. In the case of an

uploaded Central Excise return, using offline utility, similar acknowledgement is generated and sent

after the acceptance of the return by the system as a valid return i.e. when the status changes to

‘FILED’.

f. Class of Assessees for whom e-filing of returns and e-payment is mandatory with effect

from 1st April, 2010:

1. In terms of Notification No 04/2010-Central Excise (N.T.) dated the 19th February, 2010, an

assessee, who has paid total duty of rupees ten lakhs or more including the amount of duty paid by

utilization of CENVAT credit in the preceding financial year, is required to file the monthly or quarterly
return, as the case may be, electronically, under sub-rule (1) of Rule 12 of the Central Excise Rules,

2002 and deposit the duty electronically through internet banking under sub-rule (1) of Rule 8 of the

Central Excise Rules, 2002.

2. Similarly, in terms of Notification No. 01/2010 – Service Tax dated the 19th February, 2010, an

assessee who has paid a total Service Tax of rupees ten lakhs or more including the amount paid by

utilization of CENVAT credit, in the preceding financial year, is required to file the return electronically

under sub-rule (2) of Rule 7 of the Service Tax Rules, 1994 and deposit the service Tax liable to be

paid by him electronically, through internet banking under sub-rule (2) of Rule 6 of the Service Tax

Rules, 1994.

3. The earlier facility of e-filing on the website (http://exciseandservicetax.nic.in), as provided in the

CBEC Circular No.791/24/2004-CX. Dated 1.6.2004 is no more available and the assessees are

required to file their returns online or by uploading the downloadable off-line return utilities to the new

ACES website (http://www.aces.gov.in). Data structure for writing programmes to cull out the

required return data (currently available for Dealer return) from the assessees’s computers in XML

format has also been provided. Such schema for ER 2 and ER 1 returns will be published in due

course. For complete details and instructions, assessees can visit the aforesaid website. Assessees

who are required to or opted to file returns electronically but are unable to file electronically, for any

technical difficulty in filing the returns, on account of difficulties at the department’s end viz.

server/application is down or due to some defect in the software, should file their returns manually

within the due date.

g. e-payment

1. For e-payment, assessees should open a net banking account with one of the authorized banks

(currently there are 28 banks, list of which is available on the EASIEST (Electronic Accounting System

in Excise and service Tax) website of CBEC, maintained by NSDL (https://cbec.nsdl.com/EST/).

Payment through ICICI Bank, HDFC Bank and Axis Bank can be done by assesses for select

Commissionerates only, list of which is published in the aforesaid EASIEST website. Payment through

all other authorized banks can be made for all Commissionerates.

2. For effecting payment, assessees can access the ACES website (http://www.aces.gov.in/) and click

on the e-payment link that will take them to the EASIEST portal (https://cbec.nsdl.com/EST/) or they

can directly visit the EASIEST portal.

3. Procedure for e-Payment:

i. To pay Excise Duty and Service Tax online, the assessee has to enter the 15 digit Assessee Code

allotted by the department under erstwhile SACER/SAPS or the current application ACES.

ii. There will be an online check on the validity of the Assessee Code entered.

iii. If the Assessee code is valid, then corresponding assessee details like name, address,

Commissionerate Code etc. as present in the Assessee Code Master will be displayed.
iv. Based on the Assessee Code, the duty / tax i.e. Central Excise duty or Service Tax to be paid will

be automatically selected.

v. The assessee is required to select the type of duty / tax to be paid by clicking on Select Accounting

Codes for Excise or Select Accounting Codes for Service Tax, depending on the type of duty / tax to be

paid.

vi. At a time the assessee can select up to six Accounting Codes.

vii. The assessee should also select the bank through which payment is to be made.

viii. On submission of data entered, a confirmation screen will be displayed. If the taxpayer confirms

the data entered in the screen, it will be directed to the net-banking site of the bank selected.

ix. The taxpayer will login to the net-banking site with the user id/ password, provided by the bank for

net-banking purpose, and will enter payment details at the bank site.

x. On successful payment, a challan counterfoil will be displayed containing CIN, payment details and

bank name through which e-payment has been made. This counterfoil is proof of payment made.

h. Responsibility of the Assessee

1. It is the legal responsibility of the assessees, who are required to file returns, to file it within the

due date as prescribed under law. The electronic filing of returns is mandatory for select class of

Central Excise and Service Tax assessees, as mentioned in Notification No 04/2010-Central Excise

(N.T.) dated the 19th February, 2010, and Notification No. 01/2010 – Service Tax dated the 19th

February, 2010 respectively. Other assessees can also use ACES and file their returns electronically. It

may, however, be noted that merely uploading the returns will not be considered as returns having

been filed with the department. A return will be considered as filed, when the same is successfully

accepted by the application as ‘Filed’ and the relevant date for determining the date of filing of return

will be the date of uploading of such successfully ‘filed’ returns. In case a return is ‘rejected’ by the

application, the date of uploading of the rejected return will not be considered as the date of filing,

rather the date of uploading of the successfully ‘filed’, return (after the assessee carries out necessary

corrections and uploads it again) will be considered as the actual date of filing.

2. In case the assessee experiences any difficulty in transacting in ACES such as filing of return, the

assessees may lodge a complaint with the ACES Service Desk or the department by e-mail and/or by

telephone, details of which are given below and obtain a ticket no. as an acknowledgement from the

department. However, mere lodging of complaints with the ACES service desk will not be a valid

ground to justify late filing of returns. If the difficulty is not on account of problems at the assessee’s

end, and can be clearly attributed to the department’s IT infrastructure such as problems in accessing

CBEC’s ACES application due to server, network or application being down, proportionate time will be

deducted from the date of uploading of successfully ‘filed’ returns to ascertain the actual date and

time of filing of the return. Since the department maintains logs of such technical failures, in case of

any dispute, the decision of the department will be final.

VI. Digital Signatures

The ACES application is designed to accept digitally signed documents. However, in the beginning this

functionality is not going to be activated. Pending its activation the electronic returns will be filed into

ACES without digital signatures. Hence, wherever the returns are submitted through ACES there will

not be any requirement to submit signed hard copy separately.

VII. System Requirements for ACES

To use ACES following systems requirements are recommended:

* Processor: Intel Pentium III and higher

* RAM: 256 MB and higher

* HDD: 80 GB and more

* Web Browser: IE 6.0 and above, Netscape 6.2 and above

* MS Excel 2003 and above for using offline utilities

* Sound Card, Speakers/Headphones, Colour Monitor for using Learning Management Systems ( LMS)

VIII. Help for Assessees

CBEC has set up a Service Desk with National toll-free No. 1800 425 4251, which can be accessed by

between 9 AM to 7 PM on all working days (Monday to Friday). Besides, e-mails can be sent to

aces.servicedesk@icegate.gov.in. All the calls/e-mails will be issued a unique ticket number, which will

be attended to by the Service Desk agents for appropriate response.

A Learning Management Software (LMS) has been provided on the ACES website, which is a

multimedia-based self-learning online tutorial guiding the aseesees in a stepby-step processes to use

ACES. The downloadable version of Learning Management Software is also provided on the website.

Besides, User Manuals, Frequently Asked Questions (FAQs), Power Point Presentation, and a Brochure

have also been provided on the website to help the assessees use ACES.
No. FD 82 CSL 10- NOTIFICATION-I 31.3.2010
In exercise of the powers conferred by sub-section (1) of Section 8-A of the Karnataka Sales Tax Act,

1957 (Karnataka Act 25 of 1957), the Government of Karnataka hereby exempts with effect from the

First day of April 2010, the tax payable by a dealer under Section 5 of the said Act, on the sale of

diesel not exceeding eighty five thousand (85,000) kilo litres, for supply to fishermen for use in fishing

activities as per the indents issued on a monthly basis by the Director of Fisheries, Government of

Karnataka, during the financial year 2010-2011 as under:-

Sl.No. Period Quantity of Diesel to be released for the month

1 01.04.2010 to 30.04.2010 8400 kilo litres

 2 01.05.2010 to 31.05.2010 8400 kilo litres

3 01.06.2010 to 10.06.2010 2900 kilo litres

4 01.08.2010 to 31.08.2010 7900 kilo litres

5 01.09.2010 to 30.09.2010 8200 kilo litres

6 01.10.2010 to 31.10.2010 8200 kilo litres

7 01.11.2010 to 30.11.2010 8200 kilo litres

8 01.12.2010 to 31.12.2010 8200 kilo litres

9 01.01.2011 to 31.01.2011 8200 kilo litres

10 01.02.2011 to 28.02.2011 8200 kilo litres

11 01.03.2011 to 31.03.2011 8200 kilo litres

Provided that the unutilized quantity of diesel specified for any month may be released by the Director

of Fisheries, Government of Karnataka for the immediately succeeding month so as to however not

exceed eighty five thousand kilolitres for the year ending 31st March 2011.
No. FD 82 CSL 10 -NOTIFICATION-II 31.3.2010.
In exercise of the powers conferred by sub-section (1) of section 5 of the Karnataka Value Added Tax

Act, 2003 (Karnataka Act 32 of 2004), the Government of Karnataka hereby exempts with effect from

the first day of April, 2010 and during the financial year ending thirty first day of March, 2011, the tax

payable by a dealer under the said Act on the sale of the following goods, namely-

(1) Paddy and rice.

(2) Wheat.

(3) Pulses.

(4) Flour and soji of rice and wheat.

(5) Maida of wheat.

 No. FD 82 CSL 10 - NOTIFICATION - III -31.3.2010
In exercise of the powers conferred by sub-section (3) of section 4 of the Karnataka Value Added Tax

Act, 2003 (Karnataka Act 32 of 2004), read with Section 21 of the Karnataka General Clauses Act,

1899 (Karnataka Act III of 1899) and in supersession of the following Notifications, namely,-

(1) Notification No.FD 169 CSL 2005, dated 5th July, 2005;

(2) Notification No.FD 116 CSL 2006 (6), dated 31st March, 2006;

(3) Notification-I No.FD 121 CSL 2006, dated 10th May, 2006;

(4) Notification No.FD 221 CSL 06, dated 29th November, 2006;

(5) Notification No.FD 166 CSL 06, dated 11th December, 2006;

(6) Notification No.FD 140 CSL 06, dated 19th December, 2006;

(7) Notification No.FD 115 CSL 2007(3), dated 30th March, 2007;

(8) Notification No.FD 115 CSL 2007(4), dated 30th March, 2007;

(9) Notification No.FD 192 CSL 07, dated 23rd June, 2007;

(10) Notification-V No.FD 507 CSL 2007, dated 24th March, 2008;

(11) Notification-VII No.FD 507 CSL 2007, dated 25th March, 2008;

(12) Notification-IV No.FD 182 CSL 2008, dated 31st July, 2008;

(13) Notification-X No.FD 63 CSL 2009, dated 30th March, 2009,

The Government of Karnataka hereby reduces with effect from the first day of April, 2010, the tax

payable by a dealer under the said Act to five per cent on the sale of following goods, namely,-

(1) Agricultural Dusters, sprayers, sprinkler and drip irrigation equipments and their parts and

accessories.

(2) All kinds of masala powders whether mixtures of spices or mixtures of spices and other Materials.

(3) All kinds of scrap and waste materials.

(4) (i) Ball bearings;

(ii) Tapered roller bearings including cone and tapered roller assemblies;

(iii) Spherical roller bearings;

(iv) Needle roller bearings;

(v) Cylindrical roller bearings;

(vi) Combined ball or roller bearings; and

(vii) Plummer blocks, bearing housing, locate rings and covers, adopter withdrawal sleeves, locknut,

lock-washer clamps and rolling elements.

(5) Batteries sold to Indian Railways.

(6) Biological control agents, namely parasitoids, predators, pathogens and pheromones.

(7) Biomass smokeless stoves.

(8) Cashew Kernels.

(9) Coffee Powder including French Coffee.

(10) Crumb Rubber Modified Bitumen (CRMB).

(11) Denatured anhydrous alcohol.

(12) Denatured spirit.

(13) Electric Generating sets of below 15 KVA.

(14) Handmade soaps.

(15) Macaroni.

(16) Motor vehicles run on batteries.

(17) Organic Waste Converters.

(18) Plastic Tarpaulins.

(19) Railway concrete sleepers.

(20) Rubber tyres and tubes of tractors.

(21) Sanitary napkins.

(22) School bags costing upto two hundred rupees each.

(23) Sports trophies, shields and medals.

(24) Sweetmeats including savouries but excluding confectionery.

(25) Used motor vehicle subject to the conditions that.-

(i) no deduction of input tax is claimed by the dealer in respect of purchase of such motor vehicle sold

and any goods used in such motor vehicle sold; and

(ii) such motor vehicle has been registered in the State prior to its sale, under the provisions of the

Motor Vehicles Act, 1988 (Central Act 59 of 1988).

(26) Vermicelli.
No. FD 82 CSL 10 - NOTIFICATION - IV -31.3.2010.
In exercise of the powers conferred by clause (a) of sub-section (1) of Section 15 of the Karnataka

Value Added Tax Act, 2003 (Karnataka Act 32 of 2004), read with Section 21 of the Karnataka General

Clauses Act, 1899 (Karnataka Act III of 1899) and in supersession of the Notification-I No.FD 116 CSL

2006(11), dated 31st March, 2006, published in the Karnataka Gazette, Extraordinary, dated 31st

March, 2006, the Government of Karnataka hereby notifies that with effect from the First day of April,

2010, that the total turnover in a year for the purpose of the said clause shall be twenty five lakh

rupees.
No. FD 82 CSL 10 NOTIFICATION - V 31.3.2010
In exercise of the powers conferred by sub-section (3) of Section 4 of the Karnataka Value Added Tax

Act, 2003 (Karnataka Act 32 of 2004), read with Section 21 of the Karnataka General Clauses Act,

1899(Karnataka Act III of 1899), and in supersession of the Notification No.FD 116 CSL 2006 (14),

dated 31st March, 2006, published in Karnataka Gazette, Extraordinary, dated 31st March, 2006 and

Notification-VI No.FD 63 CSL 2009, dated 30th March, 2009, published in Karnataka Gazette,

Extraordinary, dated 30th March, 2009, the Government of Karnataka hereby reduces with effect from
the First day of April, 2010, the tax payable under the said Act to five percent on the sale by,-

(a) the Canteen Stores Department to the Regimental or unit run canteens;

(b) the Canteen Stores Department to the members of the Armed Forces;

(c) the Regimental or Unit run canteens to the members of the Armed Forces; and

(d) the Regimental or Unit run canteens to military pensioners and to the families of the deceased

military pensioners, of the following goods, namely.-

(1) Articles of plastic.

(2) Coffee powder including french coffee and instant coffee.

(3) Electrical fans, iron boxes and immersion water heaters.

(4) Instant mix, sambar and rasam powder.

(5) Locks.

(6) Mosquito repellants including coils and electrical devices.

(7) Plastic moulded furniture.

(8) Suitcases costing not more than Rs.2,000 per piece; suitcase covers, School bags.

(9) Television sets; and Audio and Video Cassette and Disc Players.

(10) Tiffin boxes, thermos flasks, thermo ware and casseroles.

(11) Toilet articles of all kinds including tooth brush, sanitary napkins, toilet brushes and toilet paper.

(12) Washing machines, refrigerators, microwave ovens and weighing scales.

(13) Washing soap, powder and flakes, detergents, laundry whiteners, stain busters and stain

removers.

(14) Wrist watches costing not more than Rs.1,000 per piece.
No. FD 82 CSL 10 -NOTIFICATION-VI - 31.3.2010.
In exercise of the powers conferred by sub-section (3) of Section 4 of the Karnataka Value Added Tax

Act, 2003 (Karnataka Act 32 of 2004) read with Section 21 of the Karnataka General Clauses Act,

1899(Karnataka Act III of 1899), and in supersession of Notification V No. FD 182 CSL 2008, dated:

31ST July,2008, published in Karnataka Gazette, Extraordinary, dated: 31ST July,2008, the

Government of Karnataka hereby reduces with effect from the First day of April, 2010, the tax payable

by a dealer engaged in the purchase and sale of used motor vehicles, on the sale of all kinds of used

motor vehicles including used motor cycles under sub-section (1) of Section 4 of the said Act to five

per cent of the difference between the taxable turnover in respect of such sale and the amount paid

towards purchase of such motor vehicles subject to the condition that.-

(1) no deduction of input tax is claimed by the dealer in respect of purchase of any goods used in the

motor vehicles sold; and

(2) such motor vehicles have been registered in the State prior to their sale under the provisions of

the Motor Vehicles Act, 1988 (Central Act 59 of 1988).

 No. FD 86 CSL 10 -NOTIFICATION -31.3.2010
In exercise of the powers conferred by sub-section (1) of Section 11-A of the Karnataka Tax on Entry

of Goods Act, 1979 (Karnataka Act 27 of 1979), the Government of Karnataka being of the opinion

that it is necessary in public interest so to do, hereby reduces, with effect from the First day of April

2010, the tax payable by a dealer under the said Act, on the entry of tobacco products of all

descriptions including ghutkha, cigarettes, cigars, churuts, zarda, quimam and others, but excluding

snuff to two per cent.

No. FD 94 CSL 10-NOTIFICATION -31.3.2010.
In exercise of the powers conferred by sub-section (3) of section 4 of the Karnataka Value Added Tax

Act, 2003 (Karnataka Act 32 of 2004), the Government of Karnataka hereby reduces with effect from

the First day of April, 2010 and upto thirtieth day of June, 2010, the tax payable under the said Act to

four per cent, on the sale of medicinal and pharmaceutical preparations by.-

(1) a dealer selling such goods out of his stock held as on thirty first day of March, 2010 and on which

tax has been paid at four per cent under the said Act on its sale to him by another dealer registered in

the State; and

(2) a dealer selling such goods out of his purchases made from a dealer falling under clause (1),

subject to the condition that the burden of proving that the sale of goods by him fall under clause (1)

or (2) shall be on the dealer claiming reduction of tax under this notification.
By
Ord
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and
in
the
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Gov
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of
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,
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Sec
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to
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nt,
Fin
anc
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De
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tme
nt
 (C.
T.-
1).
No. KSA/CR-178/09-10 - 03.04.2010
In exercise of powers conferred by sub-section (1) of section 18-A of the Karnataka Value Added Tax

Act, 2003, it is specified that with effect from the Fifteenth day of April, 2010 that a dealer registered

under the said Act, purchasing cotton for use by him in manufacture or any other process or resale or

transfer to a place outside the state other than as a result of sale, from another dealer registered

under the said Act, shall deduct tax at source as specified under the said section.
 Sd/
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Notification No. 26 / 2010 – Customs (N.T.) Dated the 29th March, 2010
S.O. (E). – 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 Government of India in the Ministry of Finance

(Department of Revenue) No.17/2010-CUSTOMS (N.T.), dated the 24th February, 2010 vide number

S.O.464(E), dated the 24th February, 2010,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 currency specified in column (2) of each of Schedule I

and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 1st April,
2010 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

S.No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent to India
(1) (2) (3)

(a) (b)
(For Imported Goods) (For Export Good

1 Australian Dollar 41.90 40.75

2 Canadian Dollar 45.15 43.90

3 Danish Kroner 8.30 8.00

4 EURO 61.40 59.75

5 Hong Kong Dolla 5.90 5.80

6 Norwegian Kroner 7.65 7.35

7 Pound Sterling 68.55 66.75

8 Swedish Kroner 6.35 6.15

9 Swiss Franc 43.00 41.90

10 Singapore Dollar 32.80 31.90

11 US Dollar 45.90 45.00

SCHEDULE-II

S.No. Foreign Currency Rate of exchange of 100 units of foreign currency equivalent to Indi
(1) (2) (3)

(a) (b)
(For Imported Goods) (For Export Good

1 Japanese Yen 49.90 48.45

 [F.
No.
468
/5/
201
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(M.
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Dir
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No.
230
9
338
0

MAJOR CHANGES AND MODIFICATIONS IN COMMERCIAL TAXES WITH EFFECT

FROM 1st APRIL, 2010
I. Value Added Tax (VAT ) :

The following commodities have been exempted from tax from 1.4.2010 to 31.3.2011:

(1) Paddy, Rice and Wheat.

(2) Pulses.

(3) Flour and Soji of Rice & Wheat and Maida of wheat.

2. The rate of tax on the following commodities has been reduced to 5%:

(1) All kinds of masala powders whether mixtures of spices or mixtures of spices and other materials.

(2) Macaroni. (3) Sports trophies, shields and medals.

(4) All kinds of scrap and waste materials.

(5) Electric Generating sets of below 15 KVA (including portable generator sets).

(6) Railway concrete sleepers.

(7) School bags costing upto two hundred rupees each.

3. Increase in tax rates:

1) VAT rate of 4% Increased to 5% In respect of all goods Including goods notified as capital goods,

industrial Inputs, packing materials and IT products Including telecommunication equipments but

excluding declared goods specified under Third Schedule to the Karnataka Value Added Tax Act, 2003

2) VAT rate of 4% as reduced by notifications in respect of the following goods also Increased to 5%.

(1) Agricultural Dusters, sprayers, sprinkler and drip irrigation equipments and their parts and

accessories.

(2) (i) Ball bearings;

(ii) Tapered roller bearings including cone and tapered roller assemblies;

(iii) Spherical roller bearings;

(iv) Needle roller bearings;

(v) Cylindrical roller bearings;

(vi) Combined ball or roller bearings; and

(vii) Plummer blocks, bearing housing, locate rings and covers, adopter withdrawal sleeves, locknut,

lock-washer clamps and rolling elements.

(3) Batteries sold to Indian Railways.

(4) Biological control agents, namely parasitoids, predators, pathogens and pheromones.

(5) Biomass smokeless stoves.

(6) Cashew Kernels.

(7) Coffee Powder including French Coffee.

(8) Crumb Rubber Modified Bitumen (CRMB).

(9) Denatured anhydrous alcohol.

(10) Denatured spirit.

(11) Handmade soaps.

(12) Motor vehicles run on batteries.

(13) Organic Waste Converters.

(14) Plastic Tarpaulins.

(15) Rubber tyres and tubes of tractors.

(16) Sanitary napkins.

(17) Sweetmeats including savouries but excluding confectionery.

(18) Used motor vehicles subject to certain conditions.

(19) Vermicelli.

(20) Specified goods sold through Canteen Stores Department.

3) VAT rate of 12.5% on tobacco products increased to 15%. 4) VAT rate of 12.5% on all other goods

Including those transferred in the execution of works contract increased to 13.5%.

4. Other reliefs:

(1) The minimum limit of annual taxable turnover for compulsory registration under the Karnataka

VAT Act increased from Rs.2 lakhs to Rs.5 lakhs.

(2) The maximum limit of annual total turnover for opting for composition tax payment scheme under

the Karnataka VAT Act increased from Rs.15 lakhs to Rs.25 lakhs.

(3) The minimum limit of annual total turnover for compulsory audit of account increased under the

Karnataka VAT Act from Rs.40 lakhs to Rs.60 lakhs.

(4) Optional facility for payment of VAT on MRP basis currently available for pharmaceutical and

medicinal preparations extended to other goods.

(5) The current rates of composition amounts payable continued without any change.

(6) Reduced tax rate of 1 % on liquefied petroleum gas for domestic use continued.

(7) Reduced tax rate of 2% on tamarind, seegekai (soapnut), coconut, copra, desiocated coconut

powder and arecanut continued.

(8) Exemption of tax granted earlier by notifications on certain goods continued.

(9) Rate of tax on sale of medicinal and pharmaceutical preparations by wholesalers and retailers out

of stock which has already suffered tax at 4%, continued at 4% for a period of 3 months from

1.4.2010 to 30.6.2010.

5. Other Important changes made In the Karnataka Value Added Tax Act, 2003:

(1) Provision made for payment of VAT on MRP basis on sale of tobacco products subject to certain

conditions.

(2) Provision made for constitution of Authority for Clarification and Advance Rulings to clarify the rate

of tax in respect of any goods or the exigibility to tax of any transaction or eligibility of deduction of

input tax or liability of deduction of tax at source.

(3) Provision made for furnishing of details of purchases and sales for preparation of return, filing of

returns and payment of tax and other amounts electronically through internet by class of dealers

notified by the Commissioner of Commercial Taxes.

(4) Provision made for furnishing of details of goods under transport electronically through internet by
the consignor or consignee in respect of such goods, transactions and dealers as notified by the

Commissioner of Commercial Taxes for speedy clearance of goods vehicles at the check-posts.

Sales Tax :

1. Sales Tax exemption on sale of diesel to fishermen (limited to 85,000 Kilo litres).

2. Provision made for filing of returns and payment of tax and other amounts electronically through

internet by class of dealers notified by the Commissioner of Commercial Taxes.

Entry Tax :

1. Entry Tax on tobacco products reduced from 4% to 2%.

2. Provision made for payment of entry tax on sugar by dealers to sugar factories at the time of

purchase.

3. Provision made for filing of returns and payment of tax and other amounts electronically through

internet by class of dealers notified by the Commissioner of Commercial Taxes.

Luxury Tax :

1. Luxury tax levied on hotels increased as follows:

(i) From 6% to 8% on room rents above Rs.1000 and upto Rs.2000.

(ii) From 10% to 12% on room rents above Rs. 2000.

2. Provision made for filing of returns and payment of tax and other amounts electronically through

internet by class of proprietors notified by the Commissioner of Commercial Taxes.

Entertainment Tax :

Provision made for filing of returns and payment of tax and other amounts electronically through

internet by class of proprietors of entertainments notified by the Commissioner of Commercial Taxes.

Professional Tax :

Provision made for filing of returns and payment of tax and other amounts electronically through

internet by class of proprietors of entertainments notified by the Commissioner of Commercial Taxes.

Please visit our website at http://ctax.kar.nic.in for more details of the amendments and notifications.
 (PR
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No. 04/2010-Service Tax

New Delhi, the 27th February, 2010

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act,

1994 (32 of 1994), the Central Government hereby makes the following amendment in the notification

of the Government of India in the Ministry of Finance (Department of Revenue) No.33/2004-Service

Tax, dated the 3rd December, 2004 published in the Gazette of India, Extraordinary, Part II, Section

3, Sub-section (i), vide number G.S.R. 788 (E), dated the 3rd December, 2004 , namely:-

In the said notification, in the opening paragraph, for the words “eggs or milk”, the words “eggs, milk,

food grains or pulses” shall be substituted.

2. This notification shall come into force on and from the date of its publication in the Gazette of India.
[F. No. 334/1/2010-TRU]
(Prashant Kumar)
Under Secretary to the Government of India
Note.- The principal notification No. 33/2004-Service Tax, dated the 3rd December, 2004, was

published vide number G.S.R. 788(E), dated the 3rd December, 2004 and last amended vide

notification No.23/2008-Service Tax, dated the 10th May, 2008, vide number G.S.R. 368 (E), dated

the 10th May, 2008.

GOVERNMENT OF KARNATAKA
Department of Commercial Taxes
No. KSA.CR.248/08-
09 Office of the
Commissioner of Commercial Taxes (K),

Gandhinagar,

Bangalore, Dated. 10.3.2010

In exercise of the powers under sub-rule (aaaaa) of Rule 6 of the Central Sales Tax (Karnataka) Rules,

1957, considering it necessary to extend the facility of obtaining of declaration in Form C electronically

to all the dealers registered under the Central Sales Tax Act, 1956 with an option to obtain a printout

of such declaration at their place of business, in super session of the notification No. KSA.CR.248/08-

09 dated 21st March, 2009 issued under the said sub-rule, it is hereby notified that with effect from

15th day of March 2010, every dealer registered under the Central Sales Tax Act, 1956 shall make

requisition for declaration in Form C and shall be issued the declaration sought in the following

manner:

1. Every such dealer shall log on to the website http://vat/kar.nic.in/

2. Using the user name and password communicated to him by this office or from the jurisdictional

Local VAT Officer (LVO) or VAT Sub Officer (VSO), every such dealer shall proceed to file his request

for issue of declaration in Form C in such website. He shall also indicate in the website his option
whether he would like to print the form himself or would like the LVO or VSO to print it.

3. The declarations in Form C sought by the dealer would be approved by the concerned LVO or VSO

within three working days from the date of his successful request.

4. After such approval, the dealer can print the declaration in Form C in triplicate on A4 size paper of

not less than 75 gsm. Each declaration Form so printed will have a unique number assigned on it.

After printing, the dealer can have the seal of the Department of Commercial Taxes affixed by

producing it before the LVO or VSO concerned.

5. In cases where the dealer has opted for printing of the form by the LVO or VSO, the C Form

declaration sought by the dealer would be printed by the LVO or VSO concerned. Subject to payment

of the prescribed fee, such forms would be dispatched to the dealer within three working days from

the day of his successful request. Any dealer wishing to collect the C Form declarations personally

should indicate his preference for such mode of delivery at the time of filing in his request for their
issue in the website. Such dealer can collect the declarations from his jurisdictional LVO or VSO on the

fourth working day.

Sd/-
(Pradeep Singh Kharola)
Commissioner of Commercial Taxes
in Karnataka, Bangalore

CHAMBER HOLIDAYS FOR THE YEAR 2010

Sl. No. Date Day Name of the Festival

1 14th January 2010 Thursday Makarasankramana

2 22nd January 2010 Friday Car Festival

3 26th January 2010 Tuesday Republic Day

4 12th February 2010 Friday Mahashivaratri

5 16th March 2010 Tuesday Chandramana Ugadhi

6 02nd April 2010 Friday Good Friday

7 1st May 2010 Saturday May Day

8 02nd September 2010 Thursday Astami-Mosarukudike

9 10th September 2010 Friday Pernal (Id-Ul-Fitr)

10 11st September 2010 Saturday Shri Ganesh Chathurthi

11 2nd October 2010 Saturday Mahatma Gandhiji�s Bi

12 16th October 2010 Saturday Mahanavami - Ayudha P

 13 01st November 2010 Monday Karnataka Rajyotsava

14 05th November 2010 Friday Naraka Chathurdashi

15 17th November 2010 Wednesday Bakrid

16 25th December 2010 Saturday Christmas

Membership Renewal Notice

This is to inform you that your Membership for the year 2010-2011 i.e from 1st April, 2010 to 31st

March, 2011 is due for renewal on 01.04.2010. The details of annual renewal fee are as under:

MEMBERSHIP RENEWAL FEE ANNUAL SUBSCRIPTION

CATEGORY Rs. FOR JOURNAL

(a) Individual / Proprietorship 500-00

(b) Partnership Firm 750-00

Rs. 180-00
(c) Co-operative Societies 800-00
Common to all

(d) Affiliated Bodies 1,000-00

(e) Limited Company 1,500-00

Please arrange to remit the renewal fee as applicable to you by Cash, DD/Cheque drawn in favour of

Kanara Chamber of Commerce & Industry payable at Mangalore, together with Bank Charges at your

earliest.

The one time payment fee structure for - Life Membership - for different categories are as under. We

would be much pleased to have your option for Life Membership. If you so opt, the fee as applicable to

you in the table given below may please be remitted as aforesaid.

LIFE MEMBERSHIP FEE LIFE SUBSCRIPTION

 CATEGORY Rs. FOR JOURNAL

(a) Individual / Proprietorship 10,000-00

(b) Partnership Firm 15,000-00

Rs. 2,000-00
(c) Co-operative Societies 15,000-00
Common to all

(d) Affiliated Bodies 15,000-00

(e) Limited Company 25,000-00

Kindly add Rs. 20/- as Bank Charges for outstation Cheque. Changes, if any, in nominee, address,

phone numbers, e-mail, website address etc. may also be informed for updating the

Register of Members. Early response in the matter is requested.

Thanking you,
Yours faithfully,
Sd /- Sd /-
B. CHANDRAKANTH RAO / MOHAMMED AMEEN
Hon. Secretaries

No. KSA.CR.142/09-
10
18.11.2009
In exercise of the powers conferred by clause (a) of sub-rule (1) of Rule 157 of the Karnataka Value

Added Tax Rules, 2005, it is hereby notified that, with effect from 25th day of November, 2009, the

following goods shall be carried, whether as a result of sale or not, on the strength of a delivery note

in Form VAT 505 issued by the registered dealer, who is the consignor or owner of such goods, namely

:-

(1) Pepper

(2) Slabs and tiles of granite

(3) Slabs and tiles of marble

Sd/-

(Pradeep Singh Kharola)

Commissioner of
 Commercial Taxes in

Karnataka, ,

angalore.

FOR THE KIND NOTICE OF THE MEMBER

Please note that those members who are registered dealers under the Karnataka Value Added Tax

2003 and having taxable sales more than Rs.40.00 lakh for the year ended 31-03-09 are obliged to
file report in Form VAT 240 duly certified by the specified persons on or before 31-12-09. Non

compliance will attract penalty for a sum of Rs.5,000/- and further penalty of Rs.50/- per day for so

long delay continues.

Please note this and do comply in order to avoid penalties.

No. FCS 18 RPR
2009
14.08.2009
NOTIFICATION

In continuation to earlier Notificatio No. FCS 13 RPR 2009, dated 26.05.2009, and in exercise of

powers conferred by section 3 of the Essential Commodities Act, 1955 (Central Act 10 ot 1955) read

with order S. O. 681 (E) dt. 30.11.1974 of the Ministry of Industries and Civil Supplies (Department of

Civil Supplies and Co-operation) and Order No. G. S. 531 (E) dt. 16th July 2009 vide letter No. 1

(17) / 98-SPY, D. II dt. 28th July, 2009 and No. 1 (17) / 98-SPY D. II (Vol.III) dt. 3rd August, 2009 of

Ministry of Consumer Affairs, Food and Public Distribution (Directorate of Sugar) Government of India,

the Government of Karnataka hereby makes the following order further to amend the Karnataka

Essential Commodities Licensing Order 1986 namely :-

ORDER

Amendment of Schedule I : In Schedule - I of the Karnataka Essnetial Commodities Licensing

Order, 1986 (hereinafter referred to as the said order), after serial number 2 and entries relating
thereto, the following shall be inserted namely :-

"2A SUGAR - For a further period upto 08.01.2010".

By order and in the name of

Governor of Karnataka

Sd/-

(M. M. Hiremath)

Under Secretary to

Government,

Food, Civil Supplies and

Consumer Affairs

Department.

GOVERNMENT OF KARNATAKA
(Department of Commercial
Taxes)

No.KSA.CR.248/08-09

Offic

e of

the

Com

miss

ione

r of

Com

mer

cial

Taxe

s in

Kam

atak

a,

Gan
 dhin

agar

Ban

galo

re-

560

009,

Date

28.8

.200

9.

ln exercise of the powers under sub-rule (aaaaa) of Rule 6 of the Central Sales Tax (Karnataka) Rules,

l957, considering it necessary to provide an option of self-printing of declarations in Form C to the

dealers covered by the notification No.KSA.CR.248/08-09, dated 2l“ March, 2009 issued under the

said sub-rule, in partial modification of the said notification, it is hereby notified that with effect from

IO”‘ day of September, 2009, every dealer specified under the said notification shall be issued the

declaration in Form C sought in the following manner:

(I) Every such dealer shall log on to the website http://vat.kar.nic.in/.

(ii) Using the user name and password communicated to him by this office, every such dealer shall

proceed to file his request for issue of declarations in Fomn C in such website. He shall also indicate in

the website his option whether he would like to print the form himself or would like the Local VAT

Officer (LVO) or VAT Sub Officer (VSO) to print it.

(iii) The declarations in Form C sought by the dealer would be approved electronically by the

concemed LVO or VSO within three working days from the date of his successful request.

(iv) After such approval, the dealer can print the declaration in Form C in triplicate on A4 size paper

of not less than 75 gsm. Each declaration form so printed will have a unique number assigned on it.

After printing, the dealer can have the seal of the Department of Commercial Taxes affixed by
producing it before the LVO or VSO concemed.

(v) ln cases where the dealer has opted for printing of the form by the LVO or VSO, the C Form

declarations sought by the dealer would be printed by the LVO or VSO concerned. Subject to payment

of the prescribed fee, such forms would be dispatched to the dealer within three working days from

the day of his successful request. Any dealer wishing to collect the C Form declarations personally

should indicate his preference for such mode of delivery at the time of filling in his request for their

issue in the website. Such dealer can collect the declarations from the jurisdictional LVO or VSO on the

fourth working day.

Sd/-

(Pradeep Singh Kharola)

Commissioner

of Commercial Taxes in Kamataka, Bangalore

Notification No. 30/2008-Central Excise (NT) New Delhi, the 1st July, 2008

G.S.R. (E).- In exercise of the powers conferred by sub-sections (2) and (3) of section 3A of the

Central Excise Act, 1944 (1 of 1944), the Central Govt hereby makes the following rules, namely:-

1. Short title and commencement. –

(1) These rules may be called the Pan Masala Packing Machines (Capacity Determination And

Collection of Duty) Rules, 2008.

(2) They shall come into force on the 1st day of July, 2008.

2. Definitions. – In these rules, unless the context otherwise requires,-

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

(b) “notified goods” means goods specified by the Central Government by notification under sub-

section (1) of section 3A of the Act;

(c) “packing machine” includes all types of Form, Fill and Seal (FFS) Machines and Profile Pouch

Making Machines, by whatever name called, whether vertical or horizontal, with or without collar,
single track or multi-track, and any other type of packing machine used for packing of pouches of

notified goods;

(d) “pan masala” means excisable goods falling under tariff item 21069020 of the First Schedule to

the Tariff Act;

(e) “pan masala containing tobacco” means excisable goods defined in Note 4 of Chapter 24 of the

First Schedule to the Tariff Act and falling under tariff item 2403 99 90 of the same Schedule;

(f) “retail sale price” means retail sale price as specified by the Central Government, in Explanation 3

to the opening paragraph in the notification of the Government of India in the Ministry of Finance

(Department of Revenue), No.42/2008-CE, dated the 1st July, 2008;

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

(h) the words and expressions used herein but not defined and defined in the Act shall have the

meanings respectively assigned to them in the Act.

3. Application. – These rules shall apply to pan masala & pan masala containing tobacco, commonly

known as gutkha, notified under sub-section (1) of section 3A of the Act by the notification of the GoI

in the Ministry of Finance (Dept of Revenue), No.29/2008-CE (N.T.), dated the 1st July, 2008.

4. Factor relevant to production. – The factor relevant to the production of notified goods shall be

the number of packing machines in the factory of the manufacturer.

5. Quantity deemed to be produced. – The quantity of notified goods, having retail sale price as

specified in column (2) of the Table below, deemed to be produced by use of one operating packing

machine per month shall be as is equal to the corresponding entry specified in column(3) of the said

Table :
 TABLE

Sl. No. Retail sale price (per pouch) Number of pouches per operating packing machine per month

01 Up to Rs. 1.00 37,44,000

02 From Rs. 1.01 to Rs. 1.50 37,44,000

03 From Rs. 1.51 to Rs. 2.00 35,56,800

04 From Rs. 2.01 to Rs. 3.00 35,56,800

05 From Rs. 3.01 to Rs. 4.00 34,44,480

06 From Rs. 4.01 to Rs. 5.00 34,44,480

07 From Rs. 5.01 to Rs. 6.00 34,44,480

08 Above Rs.6.00 33,69,600

Explanation . - For the purposes of this rule, if there are multiple track or multiple line packing

machine which besides packing the notified goods in pouches, perform additional processes involving

moulding and giving a definite shape to such pouches with a view to distinguish the brand or to

prevent the counterfeiting of the goods, etc., two such tracks or lines shall be deemed to be one

individual packing machine for the purposes of calculation of the number of pouches per operating

packing machine per month.

6. Declaration to be filed by the manufacturer. -

(1) A manufacturer of notified goods shall, immediately on coming into force of these rules, and, in

any case, not later than ten days, declare, in Form 1, -

(i) the number of single track packing machines available in his factory; >

(ii) the number of packing machines out of (i), which are installed in his factory;

(iii) the number of packing machines out of (ii), which he intends to operate in his factory for

production of notified goods;

(iv) the number of multiple track or multiple line packing machine, which besides packing the notified

goods in pouches, perform additional processes involving moulding and giving a definite shape to such

pouches with a view to distinguish the brand or to prevent the counterfeiting of the goods, etc;

(v) the number of multiple track or multiple line packing machines out of (iv), which are installed in

his factory;

(vi) the number of multiple track or multiple line packing machines out of (v), which he intends to

operate in his factory for production of notified goods;

(vii) the name of the manufacturer of each of the packing machine, its identification number, date of

its purchase and the maximum packing speed at which they can be operated for packing of notified

goods of various retail sale prices;

(viii) description of goods to be manufactured including whether pan masala or gutkha or both are to

be manufactured, their brand names, etc;

(ix) retail sale prices of the pouches to be manufactured during the financial year;

(x) the plan and details of the part or section of the factory premises intended to be used by him for

manufacture of notified goods of different retail sale prices and the number of machines intended to

be used by him in each of such part or section, to the Deputy Commissioner of Central Excise or the

Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of

Central Excise:

Provided that a new manufacturer shall file such declaration at least fifteen days prior to the

commencement of commercial production of notified goods in his factory.

(2) On receipt of the declaration referred to in sub-rule (1), the Deputy Commissioner of Central

Excise or the Assistant Commissioner of Central Excise, as the case may be, shall, after making such

inquiry as may be necessary including physical verification, approve the declaration and determine

and pass order concerning the annual capacity of production of the factory within five working days in

accordance with the provisions of these rules:

Provided that the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central

Excise, as the case may be, may direct for modifications in the plan or details of the part or section of

the factory premises intended to be used by the manufacturer for manufacture of notified goods of

different retail sale prices, as he thinks proper, for effective segregation of the parts or sections of the

premises and the machines to be used in such parts or sections before granting the approval:

Provided further that if the manufacturer does not receive the approval in respect of his declaration

within the said period of five working days, the approval shall be deemed to have been granted

subject to the modifications, if any, which the Deputy Commissioner of Central Excise or the Assistant

Commissioner of Central Excise, as the case may be, may communicate later on but not later than

thirty days of filing of the declaration.

(3) The annual capacity of production shall be calculated by application of the appropriate quantity

that is deemed to be produced by use of one operating packing machine as specified in rule 5 to the

number of operating packing machines in the factory during the month beginning which the capacity is

being determined.

(4) The number of operating packing machines during any month shall be equal to the number of

packing machines installed in the factory during that month.

(5) The machines which the manufacturer does not intend to operate shall be uninstalled and sealed

by the Superintendent of Central Excise and removed from the factory premises under his physical

supervision:

Provided that in case it is not feasible to remove such packing machine out of the factory premises, it

shall be uninstalled and sealed by the Superintendent of Central Excise in such a manner that it

cannot be operated.

(6) In case a manufacturer wishes to make any subsequent changes with respect to any of the

parameters which has been declared by him and approved by the Deputy Commissioner of Central

Excise or the Assistant Commissioner of Central Excise, as the case may be, in terms of sub-rule (2),

such as changes relating to addition or removal of packing machines in the factory or making
alterations in any part or section of the approved premises or in the number of machines to be used in

such part or section or commencing manufacture of goods of a new retail sale price or discontinuation

of manufacturing of goods of existing retail sale price, etc., he shall file a fresh declaration to this

effect at least fifteen days in advance to the Deputy Commissioner of Central Excise or the Assistant

Commissioner of Central Excise, as the case may be, who shall approve such fresh declaration and re-

determine the annual capacity of production following the procedure specified in sub-rule (2).

7. Duty payable to be calculated. - The duty payable for a particular month shall be calculated by

application of the appropriate rate of duty specified in the notification of the Government of India in

the Ministry of Finance (Department of Revenue), No.42/ 2008-CE, dated the 1st July, 2008 to the

number of operating packing machines in the factory during the month.

8. Alteration in number of operating packing machines. – In case of addition or installation or

removal or uninstallation of a packing machine in the factory during the month, the number of

operating packing machine for the month shall be taken as the maximum number of packing machines

installed on any day during the month:

Provided that in case a manufacturer commences manufacturing of goods of a new retail sale price

during the month on an existing machine, it shall be deemed to be an addition in the number of

operating packing machine for the month:

Provided further that in case of non-working of any installed packing machine during the month, for

any reason whatsoever, the same shall be deemed to be operating packing machine for the month.
9. Manner of payment of duty and interest.- The monthly duty payable on notified goods shall be

paid by the 5th day of same month and an intimation in Form - 2 shall be filed with the Jurisdictional

Superintendent of Central Excise before the 10th day of the same month:

Povided that monthly duty payable for the month of July, 2008 shall be paid on or before 15th day of

July, 2008:

Provided further that if the manufacturer fails to pay the amount of duty by due date, he shall be

liable to pay the outstanding amount along with the interest at the rate specified by the Central

Government vide notification under section 11AB 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:

Provided also that in case of increase in the number of operating packing machines in the factory

during the month on account of addition or installation of packing machines, the differential duty

amount, if any, shall be paid by the 5th day of the following month:

Provided also that in case a manufacturer permanently discontinues manufacturing of goods of

existing retail sale price or commences manufacturing of goods of a new retail sale price during the

month, the monthly duty payable shall be recalculated pro-rata on the basis of the total number of

days in that month and the number of days remaining in that month counting from the date of such

discontinuation or commencement and the duty liability for the month shall not be discharged unless

the differential duty is paid by the 5th day of the following month and in case the amount of duty so
recalculated is less than the duty paid for the month, the balance shall be refunded to the

manufacturer by the 20th day of the following month:

Provided also that if there is revision in the rate of duty, the monthly duty payable shall be

recalculated pro-rata on the basis of the total number of days in that month and the number of days

remaining in that month counting from the date of such revision and the duty liability for the month

shall not be discharged unless the differential duty is paid by the 5th day of the following month and in

case the amount of duty so recalculated is less than the duty paid for the month, the balance shall be

refunded to the manufacturer by the 20th day of the following month:

Provided also that in case it is found that a manufacturer has manufactured goods of those retail sale

prices, which have not been declared by him in accordance with provisions of these rules or has

manufactured goods in contravention of his declaration regarding the plan or details of the part or

section of the factory premises intended to be used by him for manufacture of notified goods of

different retail sale prices and the number of machines intended to be used by him in each of such

part or section, the rate of duty applicable to goods of highest retail sale price so manufactured by him

shall be payable in respect of all the packing machines operated by him for the period during which

such manufacturing took place:

Provided also that in case a manufacturer does not pay the duty payable, and continues to operate

any packing machine, he shall be liable to pay the duty for the remaining months of the financial year
based on the number of operating packing machines declared in the month for which duty was last

paid by him or the total number of packing machines found available in his premises at any time

thereafter, whichever is higher.

10. Abatement in case of non-production of goods.- In case a factory did not produce the

notified goods during any continuous period of fifteen days or more, the duty calculated on a

proportionate basis shall be abated in respect of such period provided the manufacturer of such goods

files an intimation to this effect with the Deputy Commissioner of Central Excise or the Assistant

Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central

Excise, at least seven days prior to the commencement of said period, who on receipt of such

intimation shall direct for sealing of all the packing machines available in the factory for the said

period under the physical supervision of Superintendent of Central Excise, in the manner that these

cannot be operated during the said period:

Provided that during such period, no manufacturing activity, whatsoever, in respect of notified goods

shall be undertaken and no removal of goods shall be effected by the manufacturer:

Provided further that when the manufacturer intends to restart his production of notified goods, he

shall inform to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central
Excise, as the case may be, of the date from which he would restart production, whereupon the seal

fixed on packing machines would be opened under the physical supervision of Superintendent of

Central Excise.

11. Retail sale price to be declared on the package.- Every manufacturer shall declare the retail

sale price of the notified goods on the package of such goods:

Provided that if the manufacturer fails to declare the retail sale price before removing the goods from

the place of manufacture or declares a retail sale price which is not the retail sale price as required to

be declared under the provisions of these rules or tampers with, obliterates or alters the retail sale

price declared on the package of such goods after their removal from the place of manufacture, then,

such goods shall be liable to confiscation and the retail sale price of such goods shall be ascertained in

the manner specified in these rules and such price shall be deemed to be the retail sale price for the

purposes of these rules.

12. Determination of retail sale price in case of non-declaration, obliteration, tampering,

etc.- Where a manufacturer removes the notified goods in the manner and circumstances specified in

proviso to rule 11, then, the retail sale price of such goods shall be ascertained by the Deputy

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

in the following manner, namely:-

(i) if the manufacturer has manufactured and removed identical goods, within a period of one month,

before or after removal of such goods, by declaring the retail sale price, then, the said declared retail

sale price shall be taken as the retail sale price of such goods.

(ii) if the retail sale price cannot be ascertained in terms of (i), the retail sale price of such goods shall

be ascertained by conducting the enquiries in the retail market where such goods have normally been

sold at or about the same time of the removal of such goods from the place of manufacture:
Provided that if more than one retail sale price is ascertained under (i) or (ii), then, the highest of the

retail sale price, so ascertained, shall be taken as the retail sale price of all such goods.

Explanation.- For the purposes of this rule, when retail sale price is required to be ascertained based

on market inquiries, the said inquiries shall be carried out on sample basis.

(iii) Where a manufacturer alters or tampers the retail sale price declared on the package of goods

after their removal from the place of manufacture, resulting into increase in the retail sale price, then

such increased retail sale price shall be taken as the retail sale price of all goods removed during a

period of one month before and after the date of removal of such goods:

Provided that where the manufacturer alters or tampers the declared retail sale price resulting into

more than one retail sale price available on such goods, then, the highest of such retail sale price shall

be taken as the retail sale price of all such goods.

(iv) If the retail sale price of goods cannot be ascertained under (i) to (iii), the retail sale price shall be

ascertained in accordance with the principles of this rule.

13. Addition or removal of packing machines and other restrictions. –

(1) In case a manufacturer does not intend to further operate a packing machine, he shall intimate the

same to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise,

as the case may be, at least seven days in advance, whereupon the same shall be uninstalled and

sealed by the Superintendent of Central Excise and removed from the factory premises under his

physical supervision:

Provided that in case it is not feasible to remove such packing machine out of the factory premises, it

shall be uninstalled and sealed by the Superintendent of Central Excise in such a manner that it

cannot be operated.
(2) In case a manufacturer wants to add or install a packing machine in his premises, he shall give a

notice to this effect at least seven days in advance to the Deputy Commissioner of Central Excise or

the Assistant Commissioner of Central Excise, as the case may be, who shall allow the addition or

installation, as the case may be, under the physical supervision of Superintendent of Central Excise.

(3) No manufacturer shall be allowed to keep in his factory any stock of packing material for goods of

those retail sale prices which have not been declared by him in accordance with provisions of these

rules.

(4) No manufacturer shall be allowed to trade in notified goods of retail sale prices not declared by

him in accordance with provisions of these rules, from his factory premises.

(5) In case a manufacturer permanently discontinues manufacture of goods of existing retail sale

prices, he shall declare the balance stock of notified goods of existing retail sale prices and their

packing material on the day he discontinues manufacturing of goods of existing retail sale prices.

14. Rebate of duty.- Except in accordance with such terms and conditions as the Central

Government may by notification specify in this behalf, no rebate of excise duty shall be granted under

rule 18 of the Central Excise Rules, 2002, in respect of notified goods on which duty has been paid

under notification of the Government of India in the Ministry of Finance (Department of Revenue),

No.42/ 2008-CE, dated the 1st July, 2008 and exported out of India.

15. Cenvat credit not admissible.- Notwithstanding anything contained in these rules, no CENVAT

credit of duty paid on any input, capital goods or input services used for manufacture of the notified
goods shall be taken under the CENVAT Credit Rules, 2004 and the full amount of duty payable would

be paid in cash only.

16. Factories ceasing to work. - Notwithstanding anything contained in these rules, where a

manufacturer ceases to work in respect of all the machines installed in the factory and who has filed

an intimation with the Deputy Commissioner of Central Excise or the Assistant Commissioner of

Central Excise, as the case may be, with a copy to the Superintendent of Central Excise, for this

purpose, the duty payable by him for the month shall be calculated pro rata on the basis of the total

number of days in the said month and total number of days before the date of receipt of said

intimation with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central

Excise, as the case may be, and the duty paid for the month in accordance with the notification shall

be adjusted towards the duty so calculated and on such adjustment, if there is any excess payment, it

shall be refunded to the manufacturer by the 20th day of the following month and deficiency, if any,

shall be payable by him by the 5th day of the following month.

Explanation. - For the purposes of this rule, a manufacturer, who ceases to operate his factory for one

or two shifts only, shall not be deemed to have ceased to work.

17. Penalty for contraventions, etc.-

(1) Subject to the provisions of section 11AC of the Act, if any manufacturer produces or removes

notified goods in contravention of any provision of these rules, then all such goods shall be liable to

confiscation, and the manufacturer shall be liable to a penalty not exceeding the duty leviable on the

notified goods in respect of which aforesaid contravention has been committed.

(2) If it is found that goods have been cleared from a unit which is not registered with the

jurisdictional Central Excise Office, then its duty liability for the period till it was not registered, shall

be determined as if the goods manufactured by the unit were not eligible for levy and assessment
under notification of the Government of India in the Ministry of Finance (Department of Revenue),

No.29/2008-CE (N.T.), dated the 1st July, 2008 and dealt with accordingly.

18. Provisions to apply mutatis mutandis. - Except as herein provided, all provisions of the Act

and the Central Excise Rules, 2002, including those relating to maintenance of daily stock account,

removal of goods on invoice, filing of returns and recovery of dues shall apply mutatis mutandis.

Explanation. - Unless otherwise specified in these rules, for the purposes of these rules, the goods

shall be deemed to have been manufactured or produced with the aid of a packing machine, if they

are cleared from a factory where a packing machine is installed, irrespective of whether it is in use or

not, or is in working condition or not.

[F.No. 341/49/2008-TRU]

[G. G. Pai], Under Secretary to the Government of India.

FORM - 1 [See rule 6]

1. Name of the manufacturer :

2. Address of the manufacturing premise :

3. ECC No :

4. Address of other premises manufacturing the same products :

5. Number of single track packing machines available in the factory:

6. Number of packing machines out of (5), which are installed in the factory:

7. Number of packing machines out of (6), which the manufacturer intends to operate in his factory

for production of notified goods:

8. Number of multiple track or multiple line packing machine, which besides packing the notified goods

in pouches, perform additional processes involving moulding and giving a definite shape to such

pouches with a view to distinguish the brand or to prevent the counterfeiting of the goods, etc.:

9. Number of multiple track or multiple line packing machines out of (8), which are installed in the

factory:

10. Number of multiple track or multiple line packing machines out of (9), which the manufacturer

intends to operate in his factory for production of notified goods:

11. Name of the manufacturer of each of the packing machine, its identification number, date of its

purchase and the maximum packing speed at which the machines can be operated for packing of

notified goods of various retail sale prices:

12. Description of goods to be manufactured including whether pan masala or gutkha or both are to

be manufactured, their brand names, etc :

13. Retail sale prices of the pouches to be manufactured during the financial year:

14. The ground plan and details of the part or section of the factory premises intended to be used by

him for manufacture of notified goods of different retail sale prices and the number of machines

intended to be used by him in each of such part or section:

15. Declaration :
(a) I/We further declare that the particulars furnished above are true and correct in all respects. In

case any particulars are found to be untrue/incorrect, I/We undertake to pay any additional amount of

excise duty on pan masala and pan masala containing tobacco manufactured by me/us as per

provisions of the Central Excise Act, 1944 (1 of 1944) or the rules or notifications issued thereunder.

(b) I/We further undertake that any addition or removal of the packing machine would be done under

the physical supervision of the Central Excise Officer as per the procedure provided in the Pan Masala

Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008.

(c) I/We hereby agree to abide by the provisions and conditions of the Pan Masala Packing Machines
(Capacity Determination and Collection of Duty) Rules, 2008.

Place :

Date :

Name, residential address and signature of manufacture/authorized agent

FORM – 2 [See rule 9]

1. Name of the manufacturer:

2. Address of the manufacturing premise:

3. ECC No. :

4. I/We hereby confirm that we have paid a sum of Rs..............., towards the duty liability for the

month of......................as per *particulars given below :

(* Particulars in the given format may be given separately for each MRP)
(i) Retail sale price of the pouches manufactured during the month

(ii) No. of packing machines installed and operated in the factory for each RSP

(iii) Duty payment particulars

Date of payment Name and address of the Bank and branch Amount of duty paid (Rs.)

(iv) Break-up of duty payment for apportionment between various duties is as per details below:-

Duty Duty ratio for Duty Duty ratio for pan masala Duty pan masala paid(Rs.) containing tobacco

paid(Rs.) The duty leviable under the Central Excise Act, 1944 0.3161 0.7355 The additional duty of

excise 0.1355 0.0883 leviable under section 85 of the Finance Act, 2005 National Calamity Contingent

0.5193 0.1471 Duty leviable under section 136 of the Finance Act, 2001 Education Cess leviable under

0.0194 0.0194 section 91 of the Finance Act, 2004 Secondary and Higher 0.0097 0.0097 Education

Cess leviable under section 136 of the Finance Act, 2007

5. Copies of Bank challans are enclosed as per following details:

Place :

Date :

Name, residential address and Signature of manufacturer /authorised agent

No.FD 67 CSL 2008 Dated: 20.05.2008

Whereas, the draft of the Karnataka Value Added Tax (Amendment) Rules, 2008 was published as

required by sub-section (1) of section 88 of the Karnataka Value Added Tax Act, 2003 (Karnataka Act

32 of 2004) in Notification No.FD 67 CSL 2008, dated: 25th March, 2008 published in part IV A of the

Karnataka Gazette (Extraordinary), No.299, dated: 25th March, 2008 inviting objections and
suggestions from all the persons likely to be affected thereby, and notice was given that the said draft

will be taken into consideration after fifteen days from the date of its publication in the Official

Gazette.

And whereas, the said Gazette was made available to the public on 25th March, 2008.

And whereas, no objections and suggestions have been received in respect of the said draft by the

Government ;

Now, therefore in exercise of the powers conferred by sub-section (1) of section 88 of the Karnataka

Value Added Tax Act, 2003 (Karnataka Act 32 of 2004), the Government of Karnataka hereby makes

the following rules, further to amend the Karnataka Value Added Tax Rules, 2005, namely:-

RULES
1. Title and Commencement: -

(1) These rules may be called the Karnataka Value Added Tax (Second Amendment) Rules, 2008.

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

2. Amendment of rule 56:- In the Karnataka Value Added Tax Rules, 2005, in rule 56, in sub-

rule(1), after clause(c), the following proviso shall be inserted, namely:-

“ Provided that the Commissioner may specify any officer of the Commercial Taxes Department to be

the Tax Recovery Officer in respect of any area or cases irrespective of the quantum of tax or other

amount due under the Act”.

By Order and in the name of the President of India

Sd/- (D.R.SHASHIDHAR)

Under Secretary to Government, Finance Department (C.T -I)

 No. FCS 21 RPR 08 24.5.2008
In exercise of powers conferred by section 3 of the Essential Commodities Act, 1955 (Central Act 10 of

1955) read with order No. S. O. 681 (E) dated 30.11.1974 of Ministry of Industries and Civil Supplies

(Department of Civil Supplies and Co-operation) and Order No. GSR 490 (E) dated 16.6.2003,

S.O.1373 (E), dated 29.8.2006, S. O. 297 (E) dated 27.2.2007 and S.O. 1488(E) dated 31.8.2007

issued by the Govt of India, Ministry of Consumer Affairs and Public Distribution (Department of

Consumer Affairs), New Delhi, the Govt of Karnataka hereby makes the following order further to

amend the Karnataka Essential Commodities Licensing Order 1986 namely :-

1. Short title and commencement :

(1) This Order may be called the Karnataka Essential Commodities Licensing (Amendment) Order

2008.

(2) It shall come into force from the date of its publication in the official Gazette.

2. Substitution of Schedules I and II : For Schedules I and II of the Karnataka Essential

Commodities Licesing Order, 1986 (hereinafter conferred to as the said Order) the following shall be

substituted, namely :-

SCHEDULE - 1 (See clause 2(d))

Sl. No. Name of the Essential Commodity

1. Wheat and Pulses - for a period of six months with effect from 28.2.2008 as prescribed in S. O. No.

400(E) dated 28.2.2008 or till the Ministry of Consumer Affairs, Food & Public Distribution,

Government of India extends it from time to time.

2. Edible Oils, Edible Oil seeds and Rice - For a period of one year with effect from 7.4.2008 as

prescribed S.O.823 (E) dated 7.4.2008 or till the Ministry of Consumer Affairs, Food & Public

Distribution Government of India extends from time to time.

3. Kerosene - Which shall have the same meaning assigned to it in the Central Excise and Salt Act,

1944 (1 of 1944) and shall not include aviation turbine fuel.

 Schedule - II (See first proviso to clause 3)

Sl. No. Name of the Essential Commodity Quantity Prescribed

01 Wheat 1000 quintals

02 Pulses 1000 quintals

03 Edible Oils 800 quintals

04 Edible oil seeds 2000 quintals

(a) Rice 1500 quintals

05
(b) Paddy 3000 quintals

06 Kerosene 20 liters

3. Substitution of Schedule - IV - In the said Order for Schedule IV, the following shall be

substituted namely :-

Schedule - IV (See third proviso to clause 3)

Sl. No. Name of the Essential Commodity Quantity Prescribed

01 Wheat 1000 quintals

01 Wheat 1000 quintals

02 Pulses 1000 quintals

03 Edible Oils 800 quintals

04 Edible oil seeds 2000 quintals

 (a) Rice 1500 quintals
05
(b) Paddy 3000 quintals

06 Kerosene 150 kilo liters

07 Roller Floor Mills 45 days grinding capacity

By Order and in the name of the President of India.

Sd/- (P. Shivarama Bhat)

Under Secretary to Govt, Food Civil Supplies and Consumer Affairs Department

No. 1/2008-CST Dated: May 30, 2008

Sub : Central Sales Tax Reduced to 2%

S.O. (E) In exercise of the powers conferred by the proviso to sub-section (1) of section (8) of the

Central Sales Tax Act, 1956 (74 of 1956), the Central Government hereby reduces the rate of tax as

specified in sub-section (1) of section 8 of the said Act from three percent to two percent with effect

from 1st June, 2008.

Sd/- (R. G. Chhabra)

Under Secretary,

Dept. of Revenue

Ministry of Finance,

Government of India.