UNION BUDGET – 2014
AMENDMENT IN INDIRECT
TAXES
GAURAV ARYA
CHARTERED ACCOUNTANT
+91-9560607530
UNION BUDGET 2014
FOCUS
 Stability and Continuity
 Revenue Generation
 Simplicity
OBJECTIVITY
 Widen the Tax Base
 Compliance Enhancement
 Facilitation Measures
Highlights of Finance Bill, 2014
 India has the second fastest growing service sector in the world with a compound
annual growth rate at 9 percent.
 Contribution of Services in GDP composition over 60 percent.
 GDP growth in 2013-14 @ 4.7 percent; expected to be 5.4 percent in 2014-15.
 Tax- GDP ratio expected to be 10.5 percent in FY 2014-15.
 Hints at time line for GST and legislative changes in December 2014 and GST expected
in 2015-16.
 Ambitious Revenue Collection Targets in Interim Budget. Proposed tax changes factored
in the Budget Estimates 2014-15
 Measures to revive the economy, promote investment in manufacturing, rationalize tax
provisions to reduce litigation, address the problem of inverted duty structure in certain
areas. Tax reliefs to individual tax payers
 24X7 customs clearance facility extended to 13 more airports in respect of all export
goods and to 14 more sea ports in respect of specified import and export goods to
facilitate cargo clearance.
 ‘Indian Customs Single Window Project’ to facilitate trade, to be implemented.
 Customs and Central Excise Acts to be amended to expedite the process of disposal of
appeals.
 The scheme of Advance Ruling in indirect taxes to be expanded to cover resident
private limited companies. The scope of Settlement Commission to be enlarged to
facilitate quick dispute resolution.
 Tax proposals on the indirect taxes side are estimated to yield additional 7,525 crore.
WIDENING THE TAX BASE
Service
Old Provision
New Provision
Advertising
Service
Selling of space or time slots for Now Service Tax on all type of
advertisements
other
than advertisements except service tax on
advertisement on print media.
advertisements broadcast by Coverage
• Online and mobile advertising,
radio or television.
• Internet websites,
• Out-of-home media,
• On film screen in theatres,
• Bill boards,
• Conveyances,
• Buildings,
• Cell phones,
• Automated Teller Machines,
• Tickets,
• Commercial publications,
• Aerial advertising, etc.
Print media is being defined in service
tax law for the purpose.
WIDENING THE TAX BASE
Service
Old Provision
New Provision
Radio Taxis
Service of transportation of
passengers, with or without
accompanied belongings, by –
(i) a stage carriage;
(ii) railways in a class other
than –
(A) first class; or
(B) an air conditioned
coach;
(iii) metro, monorail or
tramway;
(iv) inland waterways;
(v) public transport, other
than predominantly for
tourism purpose, in a vessel
between places located in
India; and
 Service tax on services provided by radio
taxis or radio cabs, whether or not airconditioned
 The abatement presently available to
rent-a-cab service would also be made
available to radio taxi service.
 Definition of radio taxi is being included
in the exemption notification
No.25/2012-ST.
 Radio Taxis –
 Which is in two-way radio
communication with a central
control office
 Enabled for tracking using Global
Positioning system (GPRS) / General
packet Radio service
 Metered cab definition u/s section 65
(32) of the Finance Act has also
amended to excluded ‘ Radio Taxis’
(vi) metered cabs,
Radio
Taxis or auto rickshaws
WIDENING THE TAX BASE
Service
Contract Carriage
Old Provision
Service
of
passenger
transportation by a contract
Entry No. 23b of carriage other than for the
Mega
Exemption purposes
of
tourism,
Notification
conducted tour, charter or
25/2012 - ST
hire, is exempt from service
tax.
New Provision
Exemption in respect of airconditioned contract carriages has
been withdrawal.
Service provided for transport of
passenger by air-conditioned contract
carriage including which are used for
point to point travel, will attract
Contract carriage means any service tax.
motor vehicle contracted or
adapted for use solely for the Abatement of 60% is available to
carriage of Passengers, or that service. Service tax will be
any motor vehicle not so charged at an abated value of 40% of
constructed or adapted when the amount charged from service
used for the carriage of receiver.
Passengers.
 Services by non-air conditioned
contract carriages for purposes other
than tourism, conducted tour, charter
or hire continue to be exempted.
WIDENING THE TAX BASE – WITHDRAWAL OF EXEMPTIONS
Service
Old Provision
Testing and Analysis
of Drugs
Services by way of
Sl.No.7 of Mega
Exemption
Notification 25/2012
- ST
New Provision
Now it is being withdrawn.
This would be taxable with
Technical testing or analysis immediate effect.
of newly developed drugs,
including vaccines and herbal
remedies
on
human
participants
by a clinical research
organization approved to
conduct clinical trials by the
Drug Controller General of
India.
WIDENING THE TAX BASE – WITHDRAWAL OF EXEMPTIONS
Service
Old Provision
Sl.No.9
of
Mega Services provided to an educational
Exemption Notification institution in respect of education
25/2012 – ST
exempted from service tax, by way of,Auxiliary educational services
Renting of immovable property
Auxiliary educational services” means
any services relating to
 imparting any skill, knowledge,
education or development of course
content or any other knowledge –
enhancement activity
 Any services which educational
institutions ordinarily carry out
themselves but may obtain as
outsourced services from any other
person,
 including
services
relating
to
admission to such institution, conduct
of examination, catering for the
students under any mid-day meals
scheme sponsored by Government, or
transportation of students, faculty or
staff of such institution;
New Provision
Auxiliary educational services” is
deleted and the following services
received by eligible educational
institutions are exempted from
service tax:
I. Transportation of students,
faculty and staff
II. Catering service , government
sponsored mid-day meals
scheme
III. Security or cleaning or
house-keeping services
IV. Admission related services
V. Exam Related Services
Exemption hitherto available to
services provided by way of
renting of immovable property to
educational institutions stands
withdrawn, with immediate effect
WIDENING THE TAX BASE – WITHDRAWAL OF EXEMPTIONS
Service
Old Provision
New Provision
Municipality Service
Exemption to Services by
way of water supply, public
Sl.No.25 of Mega health,
sanitation
Exemption Notification conservancy, solid waste
management
or
slum
improvement and upgradation
Earlier exemption will continue but it
will not extendable to other services
such as consultancy, designing, etc.,
not directly connected with these
specified services.
Services by a Hotel, Service by way of renting
Inn or Guest House
of a hotel, inn, guest
house, club or campsite or
Sl. No. 18 of Mega other commercial places
Exemption Notification meant
for
residential
lodging purposes, having a
declared tariff of a unit of
accommodation
below
rupees one thousand per
day or equivalent.
Service by way of renting of a hotel,
inn, guest house, club or campsite or
other C o m m e r c i a l places meant
for residential lodging purposes,
having a declared tariff of a unit of
accommodation below rupees one
thousand per day or equivalent.
Widening The Tax Base
Service
Service tax on
service portion in
Works Contracts
Old Provision
New Provision
Rule 2A of the Service Tax
(Determination of Value)
Rules, 2006,
Rule 2A of the Service Tax
(Determination of Value) Rules,
2006,
Taxability Table
A. Original Work – 40%
B. Repair & Maintenance
Movable Property – 70%
C. Repair & Maintenance
Immovable property,
Finishing work, Glazing
Work etc. – 60%
Taxability Table
A. Original Work – 40%
B. Repair & Maintenance
Movable Property,
Immovable property,
Finishing work, Glazing
Work etc. – 70%
C. Repair & Maintenance
Immovable property, Finishing
work, Glazing Work etc. – 60%
Compliance Enhancement
Increase in Interest Rates
Notification No. 12/2014 – ST
Simple interest rates per annum payable on delayed payments under section 75, are
prescribed as follows
Extent of delay
(In Months)
Simple interest
rate per annum
Effective Date
Example
0 to 6
18%
6 -12
0-6 – 18%
6-12 -24%
Effective Date - 1st October
2014. Upto 1st October,
2014, present rate of 18%
remain in effect. New rates
will apply from 1st October,
2014.
> 12
0-6 – 18%
6-12 -24%
> 12 months –
30%
For eg. service tax became due, say,
on the 6th of July, 2012 and the
assessee pays the dues on 6th of
December, 2014.
Interest to be charged would be as
below:
(i) Upto September, 30th, 2014 - 18%
simple interest
(ii) From 1st October, 2014 to 6th
December, 2014, the rate of interest
will be 30% since the period of delay
is beyond one year.
As specified in the proviso to section 75, three per cent concession on the applicable rate
of interest will continue to be available to the small service providers.
E - Payment
Mandatory E- Payment for everyone
E-payment of service tax is being made
mandatory with effect from the 1st Oct 2014
Relaxation from e-payment may be allowed by
the Deputy Commissioner/Asst. Commissioner
on case to case basis [Notification 09/2014-ST].
Facilitation Measures
Exchange Rates
Provision / Rules/ Section
Amendment
Section 67A in the Finance Earlier the government
Act, 1994 (Exchange Rates) used to issue weekly
notification for exchange
rates for import and
export of services. Now
new set of rules are
prescribed
for
determination of rate of
exchange for calculation of
taxable value in respect of
certain
services.
This
amendment has been
proposed in view of
requests from the trade
and
industry to delink the
conversion
from
the
notified Customs rates of
exchange as at present.
Remarks
ICAI
suggested
the
government to prescribe the
exchange
rates
in
accordance
with
the
Accounting Standard -11 to
for ease the industry and
trade.
Provision
Section
/
Rules/ Amendment
Service Tax Rules
Rule 2(1)(d) – Reverse
Charge
Remarks
Service provided by a Director to a Coverage – IIT, IIM, RBI etc.
body corporate is being brought
under
the
reverse
charge
mechanism; service receiver, who
is a body corporate will be the
person liable to pay service tax.
[Notification 9/2014 –ST]
Services provided by Recovery
Agents
to
Banks,
Financial
Institutions and NBFC is being
brought under the reverse charge
mechanism; service receiver will be
the person liable to pay service tax.
[Notification 10/2014-ST]
Change take place from immediate effect
Place of Provision Rules, 2012
Rule
Amendment
Remarks
Rule 4(a)
Rule 4 will not apply – Rule 3 will apply
Scope Restricted
Goods Exported – Than Imported – Reexported
 Number of Activities
 Additional Condition
Additional Condition – Goods must not
be put to use in taxable territory except
for such use as may be required for
carrying out such repair
Exclusion does not apply to
goods that arrive in the
taxable territory in the
Earlier
Present
Repair
Repair
Reengineering
Reengineering
Reconditioning
Reconditioning
usual course of business
and are subject to repair
while such goods remain in
the taxable territory, e.g.,
any repair provided in the
taxable
territory
to
containers arriving in India
in
the
course
of
international
trade
in
goods will be governed by
rule 4.
Place of Provision Rules, 2012
Rule
Amendment
Remarks
Rule 9 (c )
Now Intermediary of Goods Effective Date – 01.01.2014
falls under definition of
intermediary.
Now the commission agent or consignment agent
shall be covered under rule 9(c) of the Place of
Supply of Services Rules.
Rule 9(d)
Service consisting of hiring Hiring of yatchs would however continue to be
of Vessels, Yatchs and
covered by rule 9 (d)
Aircraft .
Now hiring of vessels, or
Effective Date – 01.10.2014
aircraft, irrespective of
Mode
0 to 1 month > 1 month
whether short term or long
Vessel (Other
Rule 3
Rule 3
term, will be covered by
than Yatch)
the general rule (Rule 3) i.e.
Yatchs
Rule 9
Rule 3
the location of the service
receiver. [Notification
Aircraft
Rule 3
Rule 3
14/2014-ST]
All other means Rule 9
Rule 3
of Transport
Point of Taxation Rules, Cenvat Credit Rules
Rules
Amendment
Remarks
Point of Notification No.13/2014-ST
Applicability Date - 1st October, 2014.
Taxation
Amendment to first Proviso to Rule 7 of
Rules
the Point of Taxation Rules (POTR)
New transition rule is being prescribed –
(POTR)
Rule 10 of POTR
POT in respect of reverse charge will be
earlier of following
 Payment date
 The first day that occurs immediately
after a period of three months from
the date of invoice
CENVAT
Credit
Rules
Notification No.21/2014-CE (N.T.)
 Credit Taken Availment
Limit –six
months
 Cenvat credit on Full Reverse Charge

Payment of Service Tax

Payment to Vendor
 Cenvat Credit on Export Proceeds delay
received.
Allowed if remittance received within one
year from the period so specified or
extended period.
This can be done on the basis of documents
evidencing receipt of export proceeds
Amendments in Abatement Notification
Entry No.
Amendment
Remarks
7
(GTA For availing abatement the Good Move. Illogical condition has been
Service)
condition for non- availment of taken away. Service Recipient feel relieved .
credit is required to be satisfied by
the service providers only. Service
recipient will not be required to
establish satisfaction of this
condition by the service provider
9A
(AC New entry to line the AC contract
Contract
carriage services with rent – a-cab
Carriage) or radio taxis. Taxable portion of
AC Contract carriage service is
40%.
Cenvat Credit on Inputs, Input
Services, Capital Goods are not
allowed.
9 (Rent-a- Benefit of Cenvat Credit is allowed Big Relief to the industry.
cab)
to the person in the same line of
business.
Amendments in Abatement
Notification
Entry No.
Amendment
Remarks
11 (Tour Operator Services) Cenvat Credit on input
services is allowed for
Service recipient in the
same line of business
Effective Date – 1st
October, 2014
Transport of goods by
vessel
Effective Date – 1st
October, 2014
Taxable portion reduced
from 50% to 40%.
Effective service tax will
decrease from the present
6.18% to 4.944%.
Other Provisions
Particulars
Amendment
Remarks
Partial
Reverse
Charge
mechanism
Notification No.10/2014-ST
Effective Date - 1st of October 2014
Renting of motor vehicle.
Value
SP
SR
Abated
-
Non 60%
Abated 50%
Advance
Ruling
40%
40%
50%
Notification No.15/2014-ST
This change will come into effect
in class of persons eligible to immediately.
make an application for
Advance Ruling in service
tax
Resident Private Limited
Company is the new entry
Special Economic Zone
SIMPLIFICATION OF PROCEDURES
Notification No. 07/2014 amending the Notification 12/2013 –ST dated 1st July, 2013
Form A-2 -Time Limit defined – 15 Days
CEO would issue authorization in Form A-2 within 15 working days from the date of
receipt of Form A-1
Form A-1- Authorization by SEZ Officer
 Authorization validity - Date on which Form A-1 is verified by the Specified Officer of SEZ.
 Delay beyond 15 days - Form A-1 is furnished after a period of 15 days from the date of
its verification by the Specified Officer, the authorization shall have validity from the date
of furnishing of Form A-1 to the Central Excise Officer.
Upfront exemption without authorisation but subject to time limit to furnish authorisation
SEZ Units or the Developer will, pending issuance of Form A-2, be entitled to avail upfront
exemption on the basis of Form A-1. However, in such a case, the SEZ Unit/Developer would
be required to furnish a copy of authorization issued by the Central Excise Officer within 3
months from the date of receipt of specified services. If a copy of authorization is not
provided within the said period of three months, the service provider shall pay service tax on
the service so provided availing the exemption.
Resolve the conflict of jurisdiction
 Jurisdictional DC/ AC of Central Excise for all purposes under the said notification
would be the authority with whom SEZ Units or the Developers are registered for
taking upfront exemption or for the purposes of Chapter V of the Finance Act,
1994.
 In case of centralized registration under the Service Tax Rules, the authority
having jurisdiction over centralized registration is the jurisdictional authority.
Reverse Charge Mechanism
As regards services covered under full reverse charge, it is being mentioned
specifically in Form that there would be no requirement of furnishing service tax
registration number of service provider.
Exclusivey Used Services
It is being provided that a service shall be treated as exclusively used for SEZ
operations if the recipient of service is SEZ unit or developer,
 Invoice is in the name of such unit/developer
 Service is used exclusively for furtherance of authorized operations in SEZ
INPUT SERVICE DISTRIBUTOR
Notification No. 05/2014-CE (N.T.)
Rule 7 of the CENVAT Credit Rules, 2004, provides for
the manner of distribution of common input service
credit by the Input Service Distributor
Notification clarifies that the amended rule 7 allows
distribution of input service credit to all units (which
are operational in the current year) in the ratio of their
turnover of the previous year/previous quarter as the
case may be.
Remarks – Now non operational units are not
considered while distributing credit.
Exemptions to Social Sectors
Mega
Exemption
Notification
Particulars
Sl. No.26A of All life micro-insurance schemes approved by the Insurance Regulatory
Notification
Development Authority (IRDA), where sum assured does not exceed
25/2012
50,000 are being exempted from service tax -ST amended by [Notification
No.06/2014-ST].
Sl.No. 20 and Transport of organic manure by vessel, rail or road (by GTA) is being
21.
exempted
Sl. No. 20 & 21 Services by way of loading, unloading, packing, storage or warehousing,
and 40
transport by vessel, rail or road (GTA), of Cotton, Ginned or Baled, is
being exempted
Sl. No.2B
New Entry
Sl. No. 36
– Services provided by Common Bio-medical Waste Treatment Facility
operators by way of treatment, disposal of bio medical waste or processes
incidental to such treatment or disposal are being exempted
Service provided by Employees State Insurance Corporation (ESIC) during
the period prior to 1.7.2012 is proposed to be exempted from service tax.
Presently any service provided by ESIC to persons governed under the
Employees State Insurance Act, 1948 is already exempt from 1.7.2012
Mega Exemption Particulars
Notification
New entry at Sl. No. Specialized financial services received by RBI from outside India, in the
41 of 25/2012-ST
course of management of foreign exchange reserves, e.g. external
asset management, custodial services, securities lending services, are
being exempted
New entry at Sl. Services provided by the Indian tour operators to foreign tourists in
No.42
relation to tours wholly conducted outside India are being exempted.
This exemption is available to Indian tour operators in cases where they
organize tours for a foreign tourist wholly outside India
Central Excise provisions made applicable to Service
Tax:
Section 83 is being amended to prescribe that the provisions of following sections of the
Central Excise Act shall apply, mutatis mutandis, to service tax.
 Section 5A(2) Any explanation inserted in a notification or special order at any time
within One Year of issue of notification or order, for clarifying the scope
or applicability thereof, shall have effect from the date of issue of such notification or
order.
 Section 15 A This new section is being inserted in the Central Excise Act to stipulate that
Third Party Sources shall furnish periodic information, as specified, in the manner
as may be prescribed.
 Section 15B This new section is being inserted in the Central Excise Act to prescribe that
failure to provide information under section 15A of the Act would attract
penalty as specified.
Central Excise provisions made applicable to Service Tax: Section 35F
Mandatory Fixed Pre-Deposit
1st Stage Appeal - 7.5% of the duty demanded or penalty imposed or both for
filing of appeal before the Commissioner(Appeal) or the Tribunal.
2nd Stage Appeal - 10% of the duty demanded or penalty imposed or both for
filing appeal before the Tribunal.
 Amount of pre-deposit payable would be subject to a ceiling of Rs 10
Crore.
 All pending appeals/stay application would be governed by the statutory
provisions prevailing at the time of filing such stay applications/appeals.
 This new provisions would, mutatis mutandis, apply to Service Tax.
Central Excise provisions made applicable to
Service Tax: Section
Amendment
Section 73
Sub-Section 4B to Section 73 has been inserted
(a) within six months from the date of notice where it is possible to
do so, in respect of cases whose limitation is specified as 18 months
in sub-Section (1);
(b) within one year from the date of notice, where it is possible to do
so, in respect of cases falling under the proviso to sub-Section (1) or
the proviso to sub-Section (4A).;
Section 80
Exclude the reference of the first proviso to Section 78.
This amendment removes the power to waive the 50% penalty
imposable in cases where service tax has not been levied, not paid or
short levied or short paid on account of suppression of facts or willful
misstatement but details of transactions are available in the specified
record .
It curtails the wings of CEO.
Section 82(1)
Powers to Joint Commissioner or Additional Commissioner or any
other officer notified by the Board can authorize any Central Excise
Officer to search and seize
Central Excise provisions made applicable to
Service Tax: Section
Amendment
Section 87
Power to recover dues of a predecessor from the assets of a
successor purchased from the predecessor as it is presently
provided for in section 11 of the Central Excise Act, 1944
Section 94
Rule making powers
(a) to impose upon assessees, inter alia, the duty of furnishing
information, keeping records and making returns and specify
the manner in which they shall be verified;
(b) for withdrawal of facilities or imposition of restrictions
(including restrictions on utilization of CENVAT credit) on
service provider or exporter, to check evasion of duty or misuse
of CENVAT credit; and
(c) to issue instructions in supplemental or incidental matters.
SERVICE TAX NOTIFICATIONS
NOTIFICATION
NO.
PARTICULARS
6/2014-ST dated Seeks to amend notification No. 25/2012- Service Tax, dated the 20th June,
11th July, 2014 2012, so as to amend certain existing entries granting exemption on
specified services and inserting new entries for granting exemption from
service tax on specified services
7/2014-ST dated Seeks to amend notification No.12/2013-ST dated 1st July, 2013, relating to
11th July, 2014 exemption from service tax to SEZ Units or the Developer.
8/2014-ST dated Seeks to amend notification No. 26/2012- Service Tax, dated 20th June,
11th July, 2014 2012, so as to make necessary amendments in the specified entries
prescribing taxable portion and the conditions for availing the exemption
therein
9/2014-ST dated
11th July, 2014
Seeks to amend the Service Tax Rules,1994 so as to prescribe,(i) the person liable to pay service tax for certain specified services and
(ii) mandatory e-payment of service tax for all the assessees, with effect
from 1st October,2014.
NOTIFICATION
NO.
PARTICULARS
Service Tax Notifications
10/2014-ST
Seeks to amend the notification No.30/2012-ST dated 20th June,2012, so as to
dated 11th July, prescribe, the extent of service tax payable by the service provider and the recipient
2014
of service, for certain specified services.
11/2014-ST
Seeks to amend the Service Tax (Determination of Value) Rules, 2006 so as to
dated 11th July, prescribe the percentage of service portion in respect of works contracts, other than
2014
original works contract.
12/2014-ST
Seeks to notify the interest rate applicable in cases of delayed payment of service tax
dated 11th July, for the purposes of section 75 of the Finance Act, 1994.
2014
13/2014-ST
Seeks to amend the Point of Taxation Rules, 2011, to prescribe the point of taxation
dated 11th July, for the services on which person liable to pay service tax is the recipient.
2014
14/2014-ST
dated 11th July,
2014
Seeks to amend the Place of Provision of Services Rule, 2012, to prescribe or modify
the place of provision of services for certain specified services
15/2014-ST
dated 11th July,
2014
Seeks to specify the class of persons for the purposes of section 96A of the Finance
Act,1994
?????GOODS AND SERVICE
TAX?????
Extract of Budget Speech of Finance Minister
 The debate whether to introduce a Goods and Services Tax (GST) must
now come to an end. We have discussed the issue for the past many
years.
 Some States have been apprehensive about surrendering their
taxation jurisdiction; others want to be adequately compensated.
 I have discussed the matter with the States both individually and
collectively. I do hope we are able to find a solution in the course of
this year and approve the legislative scheme which enables the
introduction of GST.
 This will streamline the tax administration, avoid harassment of the
business and result in higher revenue collection both for the Centre
and the States. I assure all States that government will be more than
fair in dealing with them.
CUSTOMS AND CENTRAL
EXCISE
Customs Act, 1962
Legislative Changes
 Section 3
Class of officers of Customs
Principal Chief Commissioner of Customs and Principal Commissioner of
Customs.
 Reference in that Act
Reference in the Act to a Chief Commissioner of Customs or a Commissioner of
Customs may also include a reference to the Principal Chief Commissioner of
Customs or the Principal Commissioner of Customs
 Section 15(1)
Determination of rate of duty and tariff valuation for imports through a vehicle
in cases where the Bill of Entry is filed prior to the filing of Import Report (as
the Manifest is called in case of imports by land).
 Section 46(3)
Allow the filing of a Bill of Entry prior to the filing of Import Report (as the
Manifest is called in case of imports by land) for imports through land route.
 Section 25
No Customs duties on mineral oils including petroleum & natural gas extracted or produced in the
continental shelf of India or the exclusive economic zone of India shall not be recovered for the
period prior to 7th February, 2002.
 Section 127A
“Customs and Central Excise Settlement Commission” is now known as “Customs, Central Excise
and Service Tax Settlement Commission”.
 Section 127L
An Explanation has been inserted that the concealment of particulars of duty liability relates to
any such concealment made from the officer of customs and not from the Settlement
Commission.

Section 129A(1)
Increase the discretionary powers of the Tribunal to refuse admission of appeal
from the existing Rs.50,000 to Rs.2 lakh.
 Section 129A(1B)
Power to the Board to constitute a Review Committee by way of an order instead of by way of a
notification.
Section 129D
New proviso in sub-section (3) - Powers to board to condone delay for a
period of upto 30 days, for review by the Committee of Chief
Commissioners of the orders in original passed by the Commissioner of
Customs.
Section 129E
Mandatory fixed pre-deposit
 7.5% of the duty demanded or penalty imposed or both for filing appeal
with the Commissioner (Appeals) or the Tribunal at the first stage
 10% of the duty demanded or penalty imposed or both for filing second
stage appeal before the Tribunal.
 The amount of pre-deposit payable would be subject to a ceiling of Rs.
10 crore.
Section 131BA
Commissioner (Appeal) to take into consideration the fact that a particular
order being cited as a precedent decision on the issue has not been
appealed against for reasons of low amount.
CUSTOMS TARIFF ACT, 1975
Section 8B
Levy of safeguard duty on inputs/raw materials imported by an
EOU and cleared into DTA as such or are used in the
manufacture of final products & cleared into DTA.
AMENDMENT IN THE FIRST SCHEDULE TO THE CUSTOMS
TARIFF ACT, 1975
 Tariff item 2402 20 60 is being omitted as a consequential
change to amendment in the First Schedule to the Central
Excise Tariff Act.
 The tariff rate of basic customs duty on goods falling under
tariff items 8517 62 90 and 8517 69 90 is being increased
from Nil to 10%.
 The unit quantity code against certain entries is being
changed.
CENTRAL EXCISE
• CENTRAL EXCISE ACT, 1944
 Reference in that Act
Reference in the Act to a Chief Commissioner of Customs or a Commissioner of
Customs may also include a reference to the Principal Chief Commissioner of
Customs or the Principal Commissioner of Customs
 Central Excise Officer
 Principal Chief Commissioner of Central Excise
 Principal Commissioner of Central Excise
 Section 32E(1)
In cases where the applicant has not filed the returns after recording reasons for the
same, application can be filed before the settlement commission.
 Section 35L
Determination of disputes relating to taxability or excisability of goods is covered
under the term “determination of any question having a relation to rate of duty”
and hence, appeal against Tribunal orders in such matters would lie before the
Supreme Court.
Amendments in the Central Excise Valuation Rules, 2004:
The Central Excise Valuation (Determination of Price of
Excisable Goods) Rules, 2000 is being amended so as to provide
that in cases
Price -Excisable goods are sold at a price below the
manufacturing cost and profit.
Consideration - There is no additional consideration flowing
from the buyer to the assessee directly or from a third person
on behalf of the buyer,
Valuation -Value for the assessment of duty shall be deemed to
be the transaction value.
Notification No.45/2000-Central Excise (NT) dated 30th June,
2000 as amended vide notification No.20/2014-Central Excise
dated 11th July, 2014 refers.