Export of Excisable goods : Services availed beyond factory eligible for rebate under Not. No. 41-2012

NOTIFICATION No. 01/2016-Service Tax, dated 3rd February, 2016

In exercise of the powers conferred by section 93A of the Finance Act, 1994 (32 of 1994), the Central Government, hereby makes following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 41/2012 Service Tax, dated the 29th June, 2012, published in the Gazette of India, Extraordinary, vide number G.S.R. 519(E), dated the 29th June, 2012, namely:-

In the said notification,-

(a) in the Explanation,-

(I) In clause (A), for sub-clause (i), the following sub-clause shall be substituted, namely:-

(i) in the case of excisable goods, taxable services that have been used beyond factory or any other place or premises of production or manufacture of the said goods, for their export;”;

(II) clause (B) shall be omitted;

(b) in the Schedule of rates, in column (4),-

(i)   for the  figures “0.04”, wherever they occur, the figures “0.05”shall be substituted;

(ii)             for the  figures “0.06”, wherever they occur, the figures “0.07”shall be substituted;

(iii)           for the  figures “0.08”, wherever they occur, the figures “0.09”shall be substituted;

(iv)            for the  figures “0.12”, wherever they occur, the figures “0.14”shall be substituted;

(v)              for the figures “0.18”, wherever they occur, the figures “0.21”shall be substituted; and

(vi)            for the  figures “0.20”, wherever they occur, the figures “0.23”shall be substituted.

Editor’s Note

1. Earlier, clause (A)(i) to Explanation under clause (a) of Proviso to Notification, read as follows :

Provided that –

(a) the rebate shall be granted by way of refund of service tax paid on the specified services.

Explanation. – For the purposes of this notification,-

(A) “specified services” means –

(i) in the case of excisable goods, taxable services that have been used beyond the place of removal, for the export of said goods;

2. In case of export of excisable goods, department was denying refund/rebate of services availed upto port of export, contending that ‘port of export’ was place of removal. Now, sub-clause (i) has been substituted to allow refund/rebate of services availed beyond factory i.e., services used beyond factory would be eligible for rebate/refund. Owing to substitution of sub-clause (i), Explanation (B) defining ‘place of removal’ was rendered redundant and has been omitted accordingly.

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