Place of provision determines service tax liability; services supplied outside Jammu and Kashmir remain taxable despite object located there.
Service tax applicability on law firms classified as business support service is governed by the place of provision; Chapter V of the Finance Act applies throughout India except Jammu and Kashmir, and tax incidence is attracted with reference to where the taxable service is provided. If the service provider and recipient are outside Jammu and Kashmir, Chapter V applies even when the object of the service is in Jammu and Kashmir.

All Industry Rate of Drawback for HSD and furnace oil applies under FTP schemes to supplies by domestic oil companies
An administrative notification fixes an All Industry Rate of Drawback of Rs.1160 per metric tonne for High Speed Diesel and Furnace Oil supplied by domestic oil companies under the export Schemes in Chapters 4, 6 and 8 of the Foreign Trade Policy, effective from 1 April 2007 until further orders, as a partial modification of an earlier public notice and issued in the public interest by the Director General of Foreign Trade.

Inclusion of importer/exporter categories adds ordnance factories and atomic energy purchase directorate to the trade handbook.
Amendment under Paragraph 2.4 of the Foreign Trade Policy inserts at the end of Paragraph 2.8(v) two importer/exporter category entries: ordnance factories under the Ordnance Factories Organisation; and the Directorate of Purchase and Stores, Department of Atomic Energy, Government of India, promulgated by Public Notice No. 81/2007.

Movement of indigenous goods under bond clarified: amended circular prescribes Form CT-3 procedure and attestation for removals.
The Board amends prior circulars to require the proper officer to issue a certificate in Form C.T.-3 (in quadruplicate) for removal of excisable goods under bond to EOU/EHTP/STP/BTP units; Form C.T.-3 certifies that a licencee who has executed a bond in Form B-17 may remove specified goods from a manufacturing unit or warehouse to its undertaking, and requires specimen signatures and attestation by the Central Excise Officer.

Prohibition on specified leather-industry inputs restricts lactic acid, synthetic resins and hydroxy ethyl cellulose use.
Addition to the Handbook of Procedures (Vol.2) prescribes a footnote under SION G-7 and G-46 for Leather and Leather Products (Product Code G) that bars lactic acid as a deliming agent, prohibits synthetic resins and hydroxy ethyl cellulose across chemical headings, and disallows products labelled as fillers because formulated leather-chemical products (supported by technical data sheets) are used in the leather industry.

Rebate of service tax: jurisdictional excise handles refunds for exported goods; Service Tax Commissionerate handles exported services refunds.
Where inputs and input services relate to manufacture of goods exported by EOUs, the jurisdictional Central Excise or Customs authority will process and disburse the rebate or refund of unutilised CENVAT credit; if an EOU/STP/EHTP provides or exports taxable services, it must register with the jurisdictional Service Tax Commissionerate, which will sanction rebate or refund claims for inputs and input services used for export of such services.

Rebate and refund authority clarified: customs handles EOUs exporting goods, service tax handles EOUs exporting taxable services.
Where inputs or input services are used in the manufacture of goods exported by EOUs, the jurisdictional Central Excise or Customs authority will process and disburse the rebate or refund of unutilised credit; where an EOU provides or exports taxable services it must register with the jurisdictional Service Tax Commissionerate, which will sanction rebate or refund for inputs or input services used for export of such services. Existing registration, return filing and other controls for EOUs providing taxable services remain unchanged.

Manual Bill of Entry allowance for specified import categories where EDI/ICES processing is impracticable.
Permits specified import declarations to be processed as Manual Bill of Entry where EDI processing is impracticable, listing categories such as high unit value items, ad hoc exemption orders, dual named importers (lessor and lessee), non amendable licence linked entries, self flying aircraft without air waybills, gold bars claiming specified notifications, footwear with RSP below Rs. 250 or above Rs. 750, and other EDI/ICES failures; residual cases require System Manager approval after AO (EDI Section) consultation with the relevant technology agency.

Customs area designation enables supervised examination and sealing of full-container imports and export stuffing under Customs control.
Designation under Section 8(b) of the Customs Act, 1962 declares M/s. Sattva CFS premises at Survey No. 125/1, Amman Kulam, Vichoor Village, Chennai, a CUSTOMS AREA for supervised examination and clearance of import FCL containers (excluding LCL cargo and passengers' unaccompanied baggage), and for stuffing/loading of export cargo into containers under Customs supervision and sealing. The notice describes the CFS physical demarcation and storage areas and mandates compliance with procedures laid down in P.N. 19/98, 111/2002 and 255/2002, with an operative commencement date specified.

Service tax on mining activities clarified: site formation and cargo handling taxable; extraction not taxable before legislative inclusion.
Site formation, clearance, excavation and earthmoving preparatory to mining are taxable under the site formation and clearance, excavation and earthmoving and demolition service. Coal cutting and mineral extraction up to the pithead are integral mining operations and are not subject to service tax prior to legislative inclusion of mining services. Handling and transport post-pithead are taxable under Cargo Handling service and Goods Transport by Road, except transport by mechanical systems not involving road carriage; cargo handling remains taxable for loading and unloading even when mechanical systems are used.

Valuation of perquisites revised: reduced rent perquisite rates retrospectively and new valuation rules for exempt employers.
The amendments to Rule 3 reduce valuation rates for concessional rent, rent free and leased accommodation retrospectively and add valuation provisions for benefits provided by employers not subject to Fringe Benefit Tax. New sub rules prescribe valuation methods for specified amenities and residual benefits supplied by exempt employers; these sub rules take effect for the assessment year following their notified effective date, and the Income Tax Rules were amended and notified by the Board.

Manufacture characterization of branded petrol and diesel treated as manufacture for excise, prior circular withdrawn
The Board found that mixing multifunctional additives into normal petrol and diesel effects value addition, imparts distinct properties and a distinct name and use, and therefore the process should be treated as manufacture for excise purposes; the earlier circular is withdrawn and pending disputes may be decided accordingly.

Cenvat credit reversal recognized as equivalent to non availment, restoring exemption eligibility under central excise textile notifications.
Reversal of CENVAT credit before utilization is treated as equivalent to non availment, and therefore does not bar a manufacturer from claiming exemption on textile articles cleared under the textile exemption notifications; the Board amends its earlier circular to reflect the Supreme Court's position and notes that the CENVAT Credit Rules require reversal of credit on inputs used in the manufacture of such exempted textile goods.

Part delivery of import consignments permitted subject to conditions, packing-list, EDI registration, staged examination and final clearance.
Part delivery of import consignments is permitted where not all containers have reached the CFS within the initial arrival period. Importers apply to the Assistant/Dy. Commissioner (Docks) with evidence; permission is granted if container-wise packing lists exist and goods are homogeneous. RMS consignments with no assessment or examination are eligible. Otherwise apply to the Joint Commissioner. On permission the Bill of Entry is registered in the EDI system, permissions and examination reports are noted on the hard copy and cumulative examination results recorded in EDI before final out-of-charge; CFS-wise details are maintained in a register.

Direct receipt of import documents relaxed for rough diamond imports, allowing banks to remit when importer receives documents directly.
Authorised Dealer Category I banks may permit remittances for rough diamond imports where the importer has received import bills/documents directly from the overseas supplier, provided documentary evidence is submitted at remittance, the transaction complies with the Foreign Trade Policy, banks are satisfied of the bonafides, complete KYC and due diligence on the importer, and obtain a report on each overseas supplier from the overseas banker or reputed credit agency.

Commodity hedging: authorised oil companies may hedge limited inventory exposure via authorised banks using OTC or exchange derivatives.
Domestic oil refiners and marketers are permitted to hedge a capped portion of inventory price exposure overseas through authorised AD Category - I banks using OTC or exchange traded derivatives up to one year tenor. AD Category - I banks must ensure Board approved policies specifically permit inventory hedging and OTC dealings, include mark to market and counterparty rules, conduct suitability and due diligence checks, and require half yearly Board reporting of OTC transactions; other existing circular conditions and Reserve Bank approvals where delegated do apply.

Assessee code requirement must be quoted on GAR challans to ensure correct accounting under the electronic accounting system.
Assessees must quote a 15-character PAN/TAN-based assessee code and the correct commissionerate code on GAR challans when paying excise or service tax under the Electronic Accounting System to prevent mispostings and incorrect inter-commissionerate allocation of revenue.

Lost shipping bill or BRC procedure permits replacement documents and safeguards for duty free entitlement subject to specified conditions.
A procedure allows acceptance of duplicate or certified copies of lost original EP shipping bills or original BRCs to process EODC, No BG/LUT endorsement under Advance Authorisation/DFIA, or transferability endorsement under DFIA, subject to an application fee, exporter affidavit with surrender undertaking, and an indemnity bond to indemnify the Government; submission of a reconstructed shipping bill exempts the fee, affidavit and indemnity bond requirements.

TED refund claim processing clarified: delayed applications within twelve months processed under amended HBP provision; prior grants not reopened.
Applications filed after six months from the end of the option period but within twelve months of the originally exercised option period, including time-barred, pending or rejected claims, must be processed under the amended HBP provision for delayed TED refund claims. Cases where benefits were already granted with applicable late cut on or before the public notice cutoff are final and shall not be reopened or enhanced.

Central Statutory Forms issuance procedure requires VATO verification, Record Keeper tallying, and system generated issue orders.
Procedure governs issuance of Central Statutory Forms through the Centralised Forms Cell: dealers register a serial and submit Form 2C, court fee and utilization documents; VATO checks completeness and forwards to Record Keeper, who issues a receipt, tallies Form 2B and checks Form 2A against bills/GRs, records findings on returns, purchases, registration items, dues, signatures and adverse material; VATO test checks and then orders issuance or a Deficiency Memo, with issuance orders system generated, recorded and handed to the dealer against signature.