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 General

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.Singh)
Under Secretary (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:

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 :

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
101.04.2010 to 30.04.2010 8400 kilo litres
201.05.2010 to 31.05.2010 8400 kilo litres
301.06.2010 to 10.06.2010 2900 kilo litres
401.08.2010 to 31.08.2010 7900 kilo litres
501.09.2010 to 30.09.2010 8200 kilo litres
601.10.2010 to 31.10.2010 8200 kilo litres
701.11.2010 to 30.11.2010 8200 kilo litres
801.12.2010 to 31.12.2010 8200 kilo litres
901.01.2011 to 31.01.20118200 kilo litres
1001.02.2011 to 28.02.2011 8200 kilo litres
1101.03.2011 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 Order and in the name of the Governor of Karnataka,
(D.R. SHASHIDHAR)
Under Secretary to Government, Finance Department (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/-
(PRADEEP SINGH KHAROLA)
Commissioner of Commercial Taxes in Karnataka, Bangalore.
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.
(1)		Foreign Currency
(2)		Rate of exchange of one unit of foreign currency equivalent to Indian rupees
(3)
(a)
(For Imported Goods)		(b)
(For Export Goods)
1Australian Dollar 41.90 40.75
2Canadian Dollar 45.15 43.90
3Danish Kroner 8.30 8.00
4EURO 61.40 59.75
5Hong Kong Dolla5.90 5.80
6Norwegian Kroner 7.65 7.35
7Pound Sterling 68.55 66.75
8Swedish Kroner 6.35 6.15
9Swiss Franc 43.0041.90
10Singapore Dollar 32.80 31.90
11US Dollar 45.90 45.00
SCHEDULE-II
S.No.
(1)		Foreign Currency
(2)		Rate of exchange of 100 units of foreign currency equivalent to Indian rupees
(3)
(a)
(For Imported Goods)		(b)
(For Export Goods)
1Japanese Yen 49.90 48.45
[F.No.468/5/2010-Cus.V]
(M. Satish Kumar Reddy)
Director to the Govt. of India
Phone No. 2309 3380

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.

(PRADEEP SINGH KHAROLA)
Commissioner of Commercial Taxes in (Karnataka).

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 Birthday
12 16th October 2010 Saturday Mahanavami - Ayudha Puja
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
CATEGORY		 RENEWAL FEE
Rs.		 ANNUAL SUBSCRIPTION
FOR JOURNAL		 TOTAL
Rs
(a) Individual / Proprietorship 500-00 680-00
(b) Partnership Firm 750-00 930-00
(c) Co-operative Societies 800-00 Rs. 180-00
Common to all		 980-00
(d) Affiliated Bodies 1,000-00 1,180-00
(e) Limited Company 1,500-00 1,680-00

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
CATEGORY		 FEE
Rs.		 LIFE SUBSCRIPTION
FOR JOURNAL		 TOTAL
Rs
(a) Individual / Proprietorship 10,000-00 12,000-00
(b) Partnership Firm 15,000-00 17,000-00
(c) Co-operative Societies 15,000-00 Rs. 2,000-00
Common to all		 17,000-00
(d) Affiliated Bodies 15,000-00 17,000-00
(e) Limited Company 25,000-00 27,000-00

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, ,
                                      Bangalore.




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

Office of the Commissioner of
Commercial Taxes in Kamataka,
Gandhinagar, Bangalore-560009,
Date: 28.8.2009.


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. –



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



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. -









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:-







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







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.-




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: -



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 :



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
05 (a) Rice
(b) Paddy 		1500 quintals
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
05 (a) Rice
(b) Paddy 		1500 quintals
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.