Minutes of Public Grievance Committee(PGC) Meeting held on 14th Oct. 2016 at 11 :30 hrs at Kendriya Utpad Shulk Bhawan. 36-37. Sector-32. Gurgaon

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.... Yogender Garg, Commissioner. The following officers and Committee members attended the meeting:- Departmental Officers :- (i) Ms. Komila Punia, Deputy Commissioner (Anti-Evasion/Div-II) (ii) Ms. Rajni Sharma, Assistant Commissioner (Division-I) (iii) Ms. Devshree, Assistant Commissioner (Division-III) (iv) Ms. Jyotika, Assistant Commissioner (Division-V) (v) Sh. Mahavir Singh, Superintendent (Technical) (vi) Sh. Manoj Kumar Goril, Inspector (Technical) (vii) Sh. Anurag Verma, Inspector (Technical) Members from Trade/Trade Associations:- (i) Sh. Anuj Nagpal, Gurgaon Industrial Association (ii) Sh. Ashish Chaudhary, Gurgaon Industrial Association ....

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....r to Section 5A(1A) of the Central Excise Act, 1944 which mandates that the exemption notification has to be compulsorily followed. Presuming but not admitting that it is compulsory to claim exemption, such compulsion could be applied only in case of unconditional/absolute exemption notification. Exemption granted in Notification No. 25/2012-ST is conditional exemption and hence it cannot be forced to opt mandatorily. The Indirect Tax system is based on the concept of value addition where tax paid at earlier stage is allowed to be taken as credit and there should not be any breakage in the chain. There is no revenue loss to government as the tax is being charged and paid. When the government is at no loss, there is no justification to arbit....

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....cause notices to principal manufacturers for claiming credit of service tax charged by job workers. After deliberations with the members, the chairman informed that no SCNs on the issue have been issued in GGN-I. After it was apprised that the SCN have been issued by the Audit Commissionerate, the chairman informed that the issue would be taken up with Audit Commissionerate. It was informed that so long as the principal manufacturer is clearing the goods on payment of Central Excise duty, then exemption of service tax would be available to the job worker. In case service tax is being charged on an intermediate process (not amounting to manufacture) by such a job worker, credit of such service tax would be available to the principal manuf....