Representation on proposed EST Return

To

CBEC,
New Delhi

Subject: Suggestions for Excise and Service tax return issued vide draft Circular no. F No 201/05/2011-CX.6

Dear Sir,

With reference to above, we would like to give our suggestions to the proposed ESTN return as follows:-

1.           The instructions given at the end of the page doesn’t match with the proposed return. For eg.

At point no. 4

In column (7) of Table at serial number 3, the Total Taxable/ Dutiable value means

However there is no table at serial no. 3, moreover the total taxable/dutiable value is reflected in Column no. 6 of EST return.

2.           Whether the details of Captive consumption are to be shown simultaneously with total quantity cleared or are to be shown separately. Though it is always to be shown separately but the same needs to be clarified by way of instructions.

3.           Unit of measurement column has been done away with, but the same needs to be kept in view of better clarity.

4.           In the budget, reverse charge mechanism has been introduced, but in the column of CENVAT availment , therefore one column like “CENVAT availed on reverse charge mechanism” can be added and it will bring more clarity for assesses as well as department.

5.           The Input service distributor mechanism has been revamped in the current budget, but in the column of “CENVAT availment” no mention of the same is there. Thus one column for the same should be added.

6.           There is only one column of Education cess (for EC and SHEC) at serial no. 6, for the sake of convenience it is suggested that column of Secondary and Higher Education Cess should also be added.

7.             In the serial no. 6 “Details of Cenvat Credit taken and utilized”, there should be separate row showing the details of Cenvat balance of Special Additional Duty (SAD) transferred from one unit to another under the provisions of Notification No. 18/2012-Central Excise(Non-Tariff) dated 16.3.2012. This notification is effective w.e.f. 1.4.2012 and it extends the facility of transferring Cenvat Credit of SAD to the manufacturer who has more than one registered premises and have obtained the Common PAN. The proposed format should be modified so as to align with the same.

8.             Further, it is proposed to have one return for Excise and Service tax. There are different criteria for deposit of service tax and Central Excise duty with the department. Hence, return filing criteria linked with deposit of tax is also different. This example will clear the same. Every Excise manufacturer is registered under Service tax for payment of GTA under reverse charge method. Now, a partnership manufacturing firm registered with Central Excise department has a turnover more than Rs. 4 crore. Hence they are required to file return on monthly basis. But if he has to deposit the service tax on quarterly basis. If he is required to file ESTN on monthly basis then how he will give the details of service tax. So, for filing a common return, there has to common criteria for deposit of tax and returns.

The above are changes suggested, we hope the same will be taken care of and appropriate changes will be made.

Thanking you,

Regards,

Pradeep Jain, F.C.A.

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Representation on proposed EST Return

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