The document provides updates on recent changes in indirect taxation in India. It summarizes that the Finance Act 2012 has been enacted and service tax rules for settlement and compounding of cases have been notified. It also summarizes that the CBEC has issued a transfer order for Commissioners and excise notifications have been rescinded. Additionally, it summarizes that the CESTAT has upheld service tax demands on EPC projects for irrigation canals.

1. UDYOG TAX NEWS FLASH
4th JUNE 2012
Finance Act 2012 signed by President on 28 May 2012
The President has given her assent to the Finance Bill 2012 on 28 May 2012, and it is now the Finance Act
2012. All the changes that were to come into effect with this event are now in place. This does not include
the negative list of services and connected changes in service tax, which will come into effect only upon
being specifically notified.
Service tax rules for settlement of cases and compounding of cases
Pursuant to the amendment to section 94 w.e.f. 28 May 2012 to
enable this, the central government has notified rules for
compounding of offences and for settlement of cases. The Service
Tax (Settlement of Cases) Rules 2012 have been issued under
notification 16/2012-ST dated 29 May 2012; and the Service Tax
(Compounding of Offences) Rules 2012 have been issued under
notification 17/2012-ST dated 29 May 2012. The notifications can be
seen at http://www.servicetax.gov.in/notifications/notfns-2012/st16-
17-2012.pdf. Combo of Indirect
Tax Integratable
CBEC issues transfer order of Commissioners: we bring it to you free
with Any ERP
On most taxation websites you have to take paid membership to
access government notifications, circulars and orders! We bring them
Modules of iTAX
to you free. Here is that important document - the annual transfer
order of Commissioners . It is important to assessees who have show
cause notices pending before these Commissioners – and of course,  Excise
to the Commissioners themselves…
http://cbec.gov.in/transfer_ord/trans-odr-2012/trsn-odr-91-2012.pdf.  Service Tax
Excise notifications rescinded  VAT and CST
Consequent to the enactment of the Finance Act 2012 and the  TDS & e-TDS
incorporation of certain changes in the tariff, the central government
has rescinded notifications 9, 10, 11, and 18/2012-Central Excise, all  EOU
dated 17 March 2012, and notification 23/2012-Central Excise dated
8 May 2012, vide notification 27/2012-Central Excise dated 30 May
 SEZ
2012. This notification can be seen at http://cbec.gov.in/excise/cx-
act/notfns-2012/cx-tarr2012/cx-notfns-tarr12.htm.
Udyog Software (India) Ltd (www.udyogsoftware.com)
Phone: 022-67993535, Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual
or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the particular situation. Page 1

2. Relevant date for rate of service tax refund upon export
The ceiling on service tax refund upon export, under notification 41/2007-ST was revised upward; would this
be applicable for exports already made? The department said it would apply only to exports made after the
revision. However the CESTAT (Chennai, single member Mr C. Satapathy) held that it would apply to all
refunds filed after the revision. This interesting order is issued as Final Order no. 239/12 dated 12 March
2012 in the case of Shyamali Export v Commissioner of Service Tax, Chennai. The order does seem unfair on
those who filed their claims early and consequently got refunds at the lower rate.
Customs: changes in tariff value
The central government has notified changes in tariff values of brass scrap, poppy seeds, and articles of gold
and silver, under section 14(2) of the Customs Act 1962, as follows:
Brass scrap: USD 4270 per MT;
Poppy seeds: USD 3896 per MT;
Gold in respect of which exemption under s. no. 321 and 323 of notification 12/2012-Customs is availed:
USD 501 per 10 grams;
Silver in respect of which exemption under s. no. 322 and 324 of notification 12/2012-Customs is availed:
USD 899 per kilogram.
The notification 47/2012-Customs (NT) dated 31 May 2012 can be seen at http://cbec.gov.in/customs/cs-
act/notifications/notfns-2012/cs-nt2012/csnt47-2012.htm.
Exemption for refrigerator-freezer from Thailand
The following goods have been added to the list of items
that are exempted from basic duty of customs if
imported from Thailand:
“Compression-type combined refrigerator-freezers,
fitted with separate external doors, household type”.
The exemption has been extended to this item by
notification 38/2012-Customs dated 29 May 2012, which
inserts a new serial number 49A into notification
85/2004-Customs dated 31 August 2004. The amending
notification can be seen at
http://cbec.gov.in/customs/cs-act/notifications/notfns-
2012/cs-tarr2012/cs38-2012.htm.
Government withdraws anti dumping duty on acetone
from Chinese Taipei
Upon review and recommendation by the designated
authority, the central government has withdrawn the
anti dumping duty on acetone exported from or
originating in Chinese Taipei, which had been levied
under notification 33/2008-Customs dated 11 March
2008. The notification no. 29/2012-Customs (ADD) dated
Udyog Software (India) Ltd (www.udyogsoftware.com)
Phone: 022-67993535, Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual
or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the particular situation. Page 2

3. 29 May 2012 to this effect can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-
add2012/csadd-29-30-2012.pdf.
Anti dumping duty imposed on aniline from the European Union
The central government has imposed an anti dumping duty of USD 110.72 per MT on aniline imported from
or originating in the European Union. The notification 30/2012-Customs (ADD) dated 29 May 2012 to this
effect can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-add2012/csadd-29-30-
2012.pdf.
Safeguard duties
The central government has, vide notification 2/2012-Customs (SG), dated 29 May 2012, withdrawn the
provisional safeguard duty of 10% on pthalic anhydride that had been imposed under notification 1/2012-
Customs (SG) dated 17 January 2012, and has under notification 3/2012-Customs (SG) of the same date,
imposed definitive safeguard duty of 10% which will be valid till 16 January 2013. The notifications can be
seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-sg2012/cssg-02-03-2012.pdf.
EPC projects for irrigation canals are taxable: CESTAT
The Tribunal has, in CESTAT Bangalore Final Order 299 to Visit
301/2012 dated 14 May 2012, in a case involving Ramky www.udyogsoftware.com
Infrastructure, Maytas, and Nagarjuna Construction, upheld
the demand for service tax on infrastructure companies that
Call us on
undertook civil works including canals for government 9320124365
projects. The reasoning was that the projects were or
undertaken on EPC basis, which were taxable under the 022-67993535
heading ‘works contracts’. The Tribunal found that these
were not covered under the excluded categories among
works contracts. A report on the case can be seen at Update Written
http://www.taxindiaonline.com/RC2/inside2.php3?filename By Radha Arun,
=bnews_detail.php3&newsid=15109. Consultant To
Udyog Software ( India) Ltd
Udyog Software (India) Ltd (www.udyogsoftware.com)
Phone: 022-67993535, Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual
or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is
accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the particular situation. Page 3