EXPORT OF SERVICE RULES, 2005
SERVICE TAX RULES, 1994
(as amended)
Notification No.2/94, dated
In
exercise of the powers conferred by sub-section (1) read with sub-section (2)
of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government
hereby makes the following rules for the purpose of the assessment and
collection of service tax namely: -
1. Short title and commencement –
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(1) |
These
rules may be called the Service Tax Rules, 1994. |
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(2) |
They
shall come into force on the 1st day of July, 1994. |
2. Definitions –
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(1) |
In these
rules, unless the context otherwise requires,- |
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(a) |
"Act"
means the Finance Act, 1994 (32 of 1994); |
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[(b) |
"assessment"
includes self assessment of service tax by the assessee, reassessment,
provisional assessment, best judgment assessment and any order of assessment
in which the tax assessed is nil; determination of the interest on the tax
assessed or reassessed;] |
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(c) |
"Form"
means a Form appended to these rules; |
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(cc) |
"Half
year" means the period between 1st April to 30th
September or 1st October to 31st March of a financial
year; |
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(ccc) |
“input
service distributor” has the meaning assigned to it in clause (m) of rule (2)
of CENVAT Credit Rules, 2004 |
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[(d) |
"Person
liable for paying service tax" means,- |
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(i) |
in
relation to a telephone connection or pager [or a communication through
telegraph or telex or a facsimile communication or a leased circuit]- |
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(a) |
the
Director General of Posts and Telegraphs, referred to in clause (6) of
Section 3 of the Indian Telegraph Act, 1885(13 of 1885); or |
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(b) |
the
Chairman-cum-Managing Director, Mahanagar Telephone Nigam Ltd, Delhi, a
company registered under the Companies Act, 1956 (1 of 1956); or |
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(c) |
any other
person who has been granted a licence by the Central Government under the
first proviso to sub-section (1) of Section 4 of the Indian Telegraph Act,
1885(13 of 1885); |
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(ii) |
in
relation to general insurance business- |
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(a) |
the
Chairman of the General Insurance Corporation of |
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(b) |
the
Chairman-cum-Managing Director of the National Insurance company Ltd., |
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(c) |
the
Chairman-cum-Managing Director of the New India Assurance Company Ltd;
Mumbai; or |
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(d) |
the
Chairman-cum-Managing Director of the Oriental Insurance Company Ltd., |
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(e) |
the
Chairman-cum-Managing Director of the United India Insurance Company Ltd.,
Chennai; or |
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(f) |
any other
person carrying on general insurance business and who has obtained a
certificate of registration under section 3 of the Insurance Act, 1938 (4 of
1938); and |
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(iii) |
in
relation to insurance auxiliary service by an insurance agent, any person
carrying on the general insurance business or the life insurance business, as
the case may be, in India; |
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(iv) |
in
relation to any taxable service provided by a person who is a non-resident or
is from outside India, dose not have any office in India, the person
receiving taxable service in India; |
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(v) |
In
relation to any taxable service provided by a goods transport agency,
where the consignor or the consignee of goods is,- |
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(a) |
any
factory registered under or governed by the factories Act, 1948 ( 63 of
1948); |
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(b) |
any
company established by or under the Companies Act, 1956 (1 of 1956); |
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(c) |
any
corporation established by and under any law; |
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(d) |
any
society registered under the Society Registration Act, 1860 (21 of 1860) or
any other law corresponding to that Act in force in any part of India; |
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(e) |
any
co-operative society established by or under any other law; |
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(f) |
any
dealer of excisable goods, who is registered under the Central Excise Act,
1944 ( 1 of 1944) or rules made thereunder; or |
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(g) |
any body
corporate established, or a partnership firm registered, by or under any law; |
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any person who pays or is
liable to pay freight himself or through his agent for transportation of such
goods by road or road carriage; |
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(vi) |
in relation to business
auxiliary service of distribution of mutual fund by a mutual fund distributor
or an agent, as the case be, the mutual fund or asset management company, as
the case may be, receiving such service; |
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[(e) |
"quarter" means
the period between 1st January to 31st March or 1st
April to 30th June or 1st July to 30th
September or 1st October to 31st December of a
financial year;] |
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(2) |
All words and expressions
used but not defined in these rules but defined in the Central Excise Act,
1944 (1 of 1944) [and the rules made thereunder shall have the meanings
assigned to them in that Act and rules.] |
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3. Appointment of officers – The Central Board of Excise and Customs may appoint such
Central Excise Officers as it thinks fit for exercising the powers under
Chapter V of the Act within such local limits as it may assign to them as also
specify the taxable service in relation to which any such Central Excise
Officers shall exercise his powers.
4. Registration –
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(1) |
Every
person liable for paying the service tax shall make an application to the
concerned Superintendent of Central Excise in form ST-1 for registration
within a period of thirty days from the date on which the service tax under
section 66 of the Finance Act, 1994(32 of 1994) is levied: |
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Provided
that where a
person commences the business of providing a taxable service after such
service has been levied, he shall make an application for registration within
a period of thirty days from the date of such commencement: |
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Provided
further that a
person liable for paying the service tax in the case of taxable services
referred to in sub-section (4) or sub-section (5) of section 66 of the
Finance Act, 1994 (32 of 1994) may make an application for registration on or
before the 31st day of December, 1998: |
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Provided
also that a
person liable for paying the service tax in the case of taxable services
referred to in sub-section (zzp) of clause (105) of section 65 of the Act may
make an application for registration on or before the 31st day of
March, 2005. |
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(2) |
Where an
assessee is providing a taxable service from more than one premises or
offices and has a centralized billing systems or centralized accounting
systems in respect of such service, and such centralized billing
systems or centralized accounting systems are located in one or more premises
or offices he may, at his option, register such premises or office where such
centralized billing systems or centralized accounting systems are located. |
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(3) |
The
registration under sub-rule (2) shall be granted,- |
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(a) |
by the
Commissioner of Central Excise or the Chief Commissioner of Central Excise,
as the case may be, in whose jurisdiction all the premises or offices
providing the taxable service and the premises or office where centralized
billing systems or centralized accounting systems is done, are located; and |
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(b) |
in cases
other than (a) above, by such authority, as may be specified by the Board. |
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Provided
that nothing contained in this sub-rule shall have any effect on the
registrations granted to the premises or offices having such centralized billing
systems or centralized accounting systems, prior to the 1st day of
April, 2005. |
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(3A) |
Where an
assessee is providing taxable service from more than one premises or offices,
and does not have any centralized billing systems or centralized accounting
systems, as the case may be, he shall make separate applications for
registration in respect of each such premises or offices to the
jurisdictional Superintendent of Central Excise. |
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(4) |
Where an
assessee is providing more than one taxable service, he may make a single
application, mentioning therein all the taxable services provided by him, to
the concerned Superintendent of Central Excise. |
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(5) |
The
Superintendent of Central Excise shall after due verification of the
application form, grant a certificate of registration in Form ST-2 within
seven days from the date of receipt of the application. If the registration
certificate is not granted within the said period, the registration applied
for shall be deemed to have been granted. |
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(6) |
Where a
registered assessee transfers his business to another person, the transferee
shall obtain a fresh certificate of registration. |
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(7) |
Every
registered assessee, who ceases to provide the taxable service for which he
is registered, shall surrender his registration certificate immediately. |
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4A. Taxable Service to be provided or credit to be distributed on
invoice, bill or challan. -
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(1) |
Every
person providing taxable service shall, not later than 14 days from the date
of completion of such taxable service or receipt of any payment towards the
value of such taxable service, whichever is earlier, issue an invloice, a
bill or, as the case may be, a challan signed by such person, or a person
authorized by him in respect of such taxable service provided and such
invoice, bill or, as the case may be, challan shall be serially numbered and
shall contain the following, namely:- |
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(i) |
the name
, address and the registration number of such person; |
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(ii) |
the name
and address of the person receiving such taxable service; |
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(iii) |
description,
classification and value of taxable service provided or to be provided; and |
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(iv) |
the
service tax payable thereon. |
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Provided
that in case the provider of taxable service is a banking company or a
financial institution including a non-banking financial company, or any other
body corporate or commercial concern, providing service to a customer, in
relation to banking and other financial services, an invoice, a bill or, as
the case may be, challan shall include any document, by whatever name called,
whether or not serially numbered, and whether or not containing address of
the person receiving the taxable service, but containing other information as
required under this sub-rule. |
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Provided
further that in case the provider of taxable services is a goods transport
agency, providing service to a customer, in relation to transport of goods by
road in a goods carriage, an invoice, bill or, as the case may be, a challan
shall include any document, by whatever name called, which shall contain
details of the consignment note number and date, gross weight of consignment
and also contain other information as required under this sub-rule. |
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(2) |
Every
input service distributor distributing credit of taxable services shall, in
respect of credit distributed, issue an invoice, a bill or, as the case may
be, a challan signed by such person, or a person authorized by him, for each
of the receipient of the credit distributed, and such invoice, bill or, as
the case may be, challan shall be serially numbered and shall conatin the
following, namely:- |
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(i) |
the name,
address and registration number of the person providing input services and
serial number and date of the invoice, bill or, as the case may be, challan
issued under sub-rule (1); |
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(ii) |
the name
and address of the said input service distributor; |
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(iii) |
the name and address of
the recipient of the credit distributed; |
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(iv) |
the amount of credit
distributed. |
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Provided
that in case the input service distributor is an office of a banking company
or a financial institution including a non-banking financial company, or any
other body corporate or commercial concern, providing service to a customer,
in relation to banking and other financial services, an invoice, a bill or,
as the case may be, challan shall include any document, by whatever name
called, whether or not serially numbered, but containing other information as
required under this sub-rule. |
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4B. Issue of consignment note. – Any goods transport agency which provides service in
relation to transport of goods by road in a goods carriage shall provide a
consignment note to the customer:
Provided that where any taxable service in relation to
transport of goods by road in a goods carriage is wholly exempted under Section
93 of the Act, the goods transport agency shall not be required to issue the
consignment note.
Explanation.- For the purposes of this rule and the second
proviso to Rule 4A, “consignment note” means a document, issued by a goods
transport agency against the receipt of goods for the purpose of transport of
goods in a goods carriage, which is serially numbered, and contains the name of
the consignor and consignee, registration number of the goods carriage in which
the goods are transported, details of goods transported, details of the place
of origin and destination, person liable for paying service tax whether
consignor, consignee or the goods transport agency.
5. Records -
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(1) |
The
records (including computerized data) as maintained by an assessee in
accordance with the various laws in force from time to time shall be
acceptable. |
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(2) |
Every
assessee shall furnish to the Superintendent of Central Excise at the time of
filing his return for the first time a list of all accounts maintained by the
assessee in relation to service tax including memoranda received from his
branch offices. |
6. Payment of service tax –
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(1) |
The
service tax on the value of taxable services received during any calendar
month shall be paid to the credit of the Central Government by the 5th
of the month immediately following the the calendar month in which payments
are received, towards value of taxable services: |
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Provided
that where the
assessee is an individual or proprietary firm or partnership firm, the
service tax shall be paid to the credit of the Central Government by the 5th
of the month immediately following the quarter in which the payments are
received, towards the value of taxable services; |
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Provided
further that,
notwithstanding the time of receipt of payment towards value of services, no
service tax shall be payable for the part or whole of the value of services,
which is attributable services provided during the period when such services
were not taxable: |
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Provided
also the service
tax on the value of taxable services received during the month of March, or
the quarter ending in March, as the case may be, shall be paid to the credit
of the Central Government by the 31st day of March of the calendar
year. |
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(2) |
The assessee shall
deposit the service tax liable to be paid by him with the bank designated by
the Central Board of Excise and Customs for this purpose in Form TR-6 or in
any other manner prescribed by the Central Board of Excise and Customs. |
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(2A) |
for the purpose of this
rule, if the assessee deposits the service tax by cheque, the date of
presentation of cheque to the bank designated by the Central Board of Excise
and Customs for this purpose shall be deemed to be the date on which service
tax has been paid subject to realization of that cheque. |
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(3) |
Where an assessee has
paid to the credit of Central Government service tax in respect of a taxable
service, which is not so provided by him either wholly or partially for any
reason, the assessee may adjust the excess service tax so paid by him
(calculated on a pro rata basis) against his service tax liability for the
subsequent period, if the assessee has refunded the value of taxable service
and the service tax thereon to the person from whom it was received. |
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(4) |
Where an assessee is, for
any reason, unable to correctly estimate, on the date of deposit, the actual
amount payable for any particular month or quarter, as the case may be, he
may make a request in writing to the Assistant Commissioner of Central Excise
or the Deputy Commissioner of Central Excise, as the case may be, giving
reasons for payment of service tax on provisional basis and the Assistant
Commissioner of Central Excise or the Deputy Commissioner of Central Excise,
as the case may be, on receipt of such request, may allow payment of service
tax on provisional basis on such value of taxable service as may be specified
by him and the provisions of the Central Excise (No.2) Rules, 2001, relating
to provisional assessment, except so far as they relate to execution of bond,
shall, so far as may be, apply to such assessment. |
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(5) |
Where an assessee under
sub-rule (4) requests for a provisional assessment he shall file a statement
giving details of the difference between the service tax deposited and the
service tax liable to be paid for each month in a memorandum in Form ST-3A
accompanying the quarterly or half yearly return, as the case may be. |
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(6) |
Where the assessee
submits a memorandum, in Form ST-3A under sub-rule (5), it shall be lawful of
the Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be to complete the assessment, wherever he
deems it necessary, after calling such further documents or records as he may
consider necessary and proper in the circumstances of the case. |
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Explanation. – For the purposes of this rule and
rule 7, "Form TR-6" means a memorandum or challan referred to in
rule 92 of the Treasury Rules of the Central Government. |
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(7) |
The person liable for
paying the service tax in relation to the services provided by an air travel
agent, shall have the option, to pay an amount calculated at the rate of
0.25% of the basic fare in the case of domestic bookings, and at the rate of
0.5% of the basic fare in the case of international bookings, of passage for
travel by air, during any calendar month or quarter, as the case may be, towards
the discharge of his service tax liability instead of paying service tax at
the rate of five per cent of the value of taxable service rendered by him and
the option, once exercised, shall apply uniformly in respect of all the
bookings of passage for travel by air made by him and shall not be changed
during a financial year under any circumstances. |
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Explanation - For the purposes of this sub-rule,
the expression "basic fare" means that part of the air fare on
which commission is normally paid to the air travel agent by the airline. |
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(7A) |
An insurer carrying on
life insurance business liable for paying the service tax in relation to the
risk cover in life insurance business provided to a policy holder shall have
the option to pay amount calculated at the rate of 1 per cent of the gross
amount of premium charged by such insurer towards the discharge of service
tax liability instead of paying service tax at the rate specified in section
66 of Chapter V of the Act: |
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Provided
that such option shall not be available in cases where- |
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(a) |
the
entire premium paid by the policy holder is only towards risk cover in life
insurance; or |
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(b) |
the part of the premium
payable towards risk cover in life insurance is shown separately in any of
the documents issued by the insurer to the policy holder; |
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(8) |
The value of the taxable
service in relation to the services provided by a clearing and forwarding
agent to a client for rendering services of clearing and forwarding
operations in any manner shall be deemed to be the gross amount of
remuneration or commission (by whatever name called) paid to such agent by
the client engaging such agent. |
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(9) |
The value of taxable
service in relation to insurance auxiliary services provided by an insurance
agent shall be deemed to be the gross amount of commission, fee or any other
sum (by whatever name called) paid to such agent by the insurer appointing
such agent. |
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7. Returns –
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(1) |
Every
assessee shall submit a half yearly return in From ‘ST-3’ or ‘ST-3A’, as the
case may be, along with a copy of the Form TR-6, in triplicate for the months
covered in the half-yearly return. |
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(2) |
Every
assessee shall submit the half yearly return by the 25th of the
month following the particular half-year. |
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[(3)
& (4) * * *] |
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7. Returns in case of taxable service provided by goods transport
operators and clearing and forwarding agents –
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Notwithstanding
anything contained in rule 7, an assessee, in case of service provided by- |
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(a) |
goods
transport operator for the period commencing on and from the 16th
day of November, 1997 to the 2nd day of June, 1998; and |
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(b) |
clearing
and forwarding agents for the period commencing on and from the 16th
day of July, 1997 to the 16th day of October, 1998 |
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shall
firnish a return within a period of six months from the 13th day
of may 2003, in form “ST-3B” along with a copy of the form TR-6 in
triplicate, failing which the interest and penal consequences as provided in
the Act shall follow. |
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8. Form of Appeals to Commissioner of Central Excise
(Appeals).
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(1) |
An appeal
under Section 85 of the Act to the Commissioner of Central Excise (Appeals)
shall be in Form ST-4. |
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(2) |
The
appeal shall be filed in duplicate and shall be accompanied by a copy of
order appealed against. |
9. Form of appeals to Appellate Tribunal. -
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(1) |
An appeal under
sub-section (1) of section 86 of the Act to the Appellate Tribunal shall be
made in Form ST-5 in quadruplicate and shall be accompanied by a copy of the
Order appealed against (one of which shall be a certified copy). |
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(2) |
An appeal under sub-section
(2) of section 86 of the Act to the Appellate Tribunal shall be made in Form
ST-7 in quadruplicate and shall be accompanied by a copy of the order of the
Commissioner of Central Excise (one of which shall be a certified copy) and a
copy of the order passed by the Central Board of Excise and Customs directing
the Commissioner of Central Excise to apply to the Appellate Tribunal. |
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(2A) |
An appeal under
sub-section (2A) of Section 86 of the Act to the Appellate Tribunal shall be
made in from ST-7 in quadruplicate and shall be accompanied by a copy of the
order of the Commissioner of Central Excise (Appeals) (one of which shall be
a certified copy) and a copy of the order passed by the Commissioner of
Central Excise directing the Assistant Commissioner of Central Excise or as
the case may be, the Deputy Commissioner of Central Excise to apply to the
Appellate Tribunal; and |
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(3) |
A memorandum of
cross-objections under sub-section (4) of section 86 of the Act, shall be
made in form ST-6 in quadruplicate. |