Composition scheme rate increase for works contracts under service tax takes effect, raising the prescribed composition rate.
Amends the Works Contract composition scheme for payment of service tax by substituting the description of the prescribed rate in rule 3(1) of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007; the amendment is titled Works Contract (Composition Scheme for Payment of Service Tax) Amendment Rules 2012 and shall come into force on the first day of April, 2012 under the powers conferred by sections 93 and 94 of the Finance Act, 1994.

Capacity determination rules amended to substitute section reference and expand tobacco definition including Jarda scented tobacco, and correct CENVAT wording.
The 2012 amendment to the Chewing Tobacco and Un-manufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules substitutes references to "section 11 AB" with "section 11AA", expands the term "chewing tobacco" to "chewing tobacco and Jarda scented tobacco" in rule 16, and alters sub-rule (6) text concerning wrongly taken or utilised CENVAT credit to reflect corrected wording.

Excise duty exemption for short cigarettes caps payable duty at a prescribed effective rate, covering filter and non filter variants.
Exempts specified cigarettes not exceeding sixty five millimetres in length-distinguishing other than filter and filter cigarettes (filter length measured as eleven millimetres or actual filter length, whichever is more)-from excise duty to the extent that duty exceeds the amount calculated at the prescribed effective rate in the Table; issued under powers of the Central Excise Act, with an administrative corrigendum and later rescission noted.

Excise exemption for short non-filter cigarettes limits additional duty to a specified rate under a central government notification.
The notification exempts "other than filter cigarettes, of the length not exceeding 65 millimetres" from so much of the additional duty of excise as is in excess of the amount indicated in the Table, thereby establishing a capped effective rate for that tariff item under the Finance Act mechanism.

Service tax notification amendment: substitution of 'April' with 'July' in para 3 altering exemption timing.
The Central Government, invoking powers under the Finance Act, amends Notification No.9/2010 Service Tax by substituting the word April with July in paragraph 3, thereby changing the month referenced for the service tax exemption applicable to rail transport services; the amendment is issued as Notification No.9/2012 Service Tax and cites the principal notification and its prior amendment in the Gazette.

Tariff value fixation for non silver jewellery set as a percentage of transaction value, excluding precious metal and customer supplied old jewellery.
Fixes the tariff value for articles of jewellery (other than silver) under the specified tariff sub heading at 30% of the transaction value declared in the invoice, with "transaction value" having the statutory meaning; excludes jewellery manufactured from precious metal and old jewellery supplied by the retail customer.

Section reference substitution to Section 11AA and removal of a proviso and explanation in central excise rules.
Amendments replace references to Section 11AB with Section 11AA in Rule 8(3), Rule 8A(3) and Rule 12BB, and remove the proviso to sub rule (1) of Rule 12AA along with Explanation 2, thereby altering statutory cross references and excising specified conditional and interpretive text.

Amendment to service tax notification: substitution of April with July changes the effective timing of an exemption provision.
Amendment replaces the word 'April' with 'July' in paragraph 2 of Notification No.8/2010-Service Tax, altering the effective timing of an exemption-related provision under the executive power of section 93(1) of the Finance Act, 1994 and referencing the principal notification and its latest amendment in the Gazette.

Exemption for returned branded garments: expanded registered premises, one year return window, self certification for reprocessed goods.
Amendment modifies Notification No. 31/2011: "same premises or factory" is replaced by "any registered premises or factory of the same manufacturer or brand owner"; returned goods must be sent back within one year of initial removal; returned goods after reconditioning or similar processes may be removed on manufacturer or brand owner self certification that they are duty paid; aggregate value of clearances is to be computed separately for each registered factory or premise and excludes clearances under rule 16 of the Central Excise Rules, 2002.

Effective rate of duty for cotton goods limited to a specified ad valorem rate, with defined exclusions for branded items.
Notification exempts cotton goods under Chapters 52-63 from excise duty to the extent that duty exceeds the ad valorem rate specified in the Table (six percent). The exemption applies to "goods of cotton, not containing any other textile material" and clarifies inclusion of articles made from cotton fabric even if they contain incidental non-cotton items such as sewing threads, cords, labels, elastic tapes or zip fasteners. Certain branded goods or items above a specified retail sale price are excluded; the notification supersedes a 2004 notification and was later rescinded effective 1 July 2017.

Rebate from MRP extended to cigarettes, specified industrial goods and footwear under amended central excise notification.
The notification amends Notification No. 49/2008-Central Excise (N.T.) by inserting entry 26A for heading 2402 prescribing a rebate from MRP for cigarettes, inserting entry 28A for heading 2523 prescribing a rebate from MRP for all goods under that heading, and substituting S.No. 56 for heading 64 to prescribe a rebate from MRP for all footwear.

Exemption of rail transport services: notification amends prior service-tax provision by substituting 'April' with 'July'.
Notification No.7/2012 amends Notification No.7/2010 by substituting the word 'April' with the word 'July' in paragraph 2 of the principal service-tax notification relating to exemption of services in relation to transport services by rail, effectuating a change in the month specified in that provision.

Service tax exemption for air passenger transport limits taxable base to a fraction of service value, excluding CENVAT credit cases.
The notification limits service tax on transport of passengers by air to an amount not exceeding the tax computed on a value equal to forty per cent of the taxable service provider's value for that service, and excludes cases where CENVAT credit on inputs or capital goods used in providing the service has been taken.

Exemption for defence equipment extended to include bullet proof helmets under amended Central Excise notification.
Operatively, the notification substitutes "bullet proof jackets" with "bullet proof jackets and bullet proof helmets" in clause (a) of column (3) of the Table against the specified serial numbers, thereby expanding the scope of the exemption in the principal notification.

Excise exemption rates for EOUs/EHTP/STP adjusted, increasing concessions for specified tariff entries on DTA clearances.
Exercising powers under section 5A of the Central Excise Act, 1944, Notification No. 05/2012 amends Notification No. 23/2003 Central Excise by substituting higher exemption figures in the TABLE: column (4) entries at serial numbers 5A, 6 and 7A are revised upward and the entry at serial number 8 is increased from its prior lower figure to a higher figure, thereby adjusting excise exemption rates for EOUs/EHTP/STP units on goods cleared to the Domestic Tariff Area.

Aggregate value definition clarified for service tax aggregation of initial invoices, excluding amounts for wholly exempt services.
Substitutes item (B) to define aggregate value as the sum total of value of taxable services charged in the first consecutive invoices issued or required to be issued during a financial year, excluding value charged in invoices for services wholly exempt from service tax under any other notification; effective from the specified commencement date.

Point of Taxation clarified: payment date, invoicing delays, and treatment of rate changes determine service tax timing.
The rules expand the definition of change in effective tax rate and broaden continuous or recurrent services. A new date-of-payment rule makes the earlier of books-entry or bank credit the payment date, with a proviso treating bank credit as decisive when rate changes or first-time taxation occur and credit is after four working days. Invoice delays shift the point of taxation to completion of service; contractual event-completion can define completion for continuous supplies; limited invoice overpayments may be taxed on invoice timing at provider option. Tax treatment for newly taxed services and recipient-liable notified services are also clarified, and authorities may determine point of taxation when invoice and payment data are absent.

Invoice issuance timelines extended and special provisions for banking services; small excess receipts exempt from invoicing under point of taxation option.
Amendments extend invoice issuance timelines from fourteen to thirty days generally, provide a longer period for banking and financial services, and allow that small excess receipts need not be invoiced where the provider has opted under the Point of Taxation Rules; Rule 6 adds export receipt treatment per Reserve Bank of India timelines, grants an optional tax-payment method for smaller individual and partnership providers up to a turnover threshold, restricts adjustment of excess tax payments to matters not involving legal interpretation or taxability questions, and revises certain rates and numerical thresholds for insurance premium valuation.

Rescission of notification cancels prior exemption and reinstates the standard service tax rate effective from upcoming fiscal period.
The Central Government, invoking its powers under the Finance Act, rescinds the earlier Department of Revenue notification altering service tax treatment, subject to a savings clause for actions taken or omitted before rescission, and fixes a commencement date when the withdrawal takes effect to restore the prior service tax regime.

Increase in ad valorem excise duty for medicinal and toilet preparations via substitution of higher rate under rule.
Under rule 8 of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956, Notification No. 1/2012-M & TP substitutes the entry "Ten per cent. ad valorem" with "Twelve per cent. ad valorem" wherever it appears in column (4) of the Table of the principal notification No. 2/2003-M&TP, thereby changing the specified ad valorem excise duty rate for the listed medicinal and toilet preparations.