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Customs duty exempted on import of 191 Products from Singapore-Customs Tariff Notification No.33 Import of 485 Products from Singapore exempted from Customs duty-Customs Tariff Notification No.34 Import of 496 Products from Singapore exempted from 50 per cent of applied rate of duty-Customs Tariff Notification No.35 Saurabh Chandra gets additional charge of Commerce Secretary ITAT Member N Vasudevan transferred from Mumbai to Bangalore-J Sudhakar Reddy moves from Mumbai to Delhi-IP Bansal from Delhi to Mumbai-IC Sudhir from Pune to Delhi CVD on imported electronics lowered due to higher rates of abatement from RSP notified-Abatement from MRP for excise payment on all electronic products prescribed at uniform rate of 35 per cent-Abatement revised for several products-Central Excise Non-Tariff Notification No.26 Suppliers to Mega Power Projects face silly excise demands-Click on the link below for full details Excise demand of Rs 32 Crore confirmed against Exide for not paying excise on MRP basis on lead acid storage battery RBI says Exporters required to convert 50 per cent of their foreign exchange holdings into Rupee within 15 days-Exporters will be allowed to buy foreign currency only after utilizing all their foreign currency holdings Articles of jewellery exempted from excise duty-Specified Railway Goods manufactured by Government exempted from excise -Central Excise Tariff Notification No.23 Excise on specified Petroleum Oils lowered Eye makeup preparations exempted from excise The excise exemption hitherto admissible on all Hawai Chappals will now be admissible to only Hawai Chappals of RSP up to Rs 500-Polyester staple fibre or polyester filament yarn, manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles exempted from excise-Excise on Motor chassis for vehicles lowered to 14 per cent excise-Excise on LED Lights of Chapter 85 lowered to 6 per cent-Inks for ball point pens exempted from excise-Central Excise Tariff Notification No.24-Parts of Footwear and hawai chappals of RSP not exceeding Rs. 500 per pair exempted from excise if consumed in factory-Central Excise Tariff Notification No.25-Excise exemption to goods required for initial setting up of solar power generation project or facility-Central Excise Tariff Notification No.26 CENVAT Credit (Fifth Amendment) Rules, 2012-No reversal of credit required for supplies made for setting up of solar power generation projects or facilities-Central Excise Non-Tariff Notification No.25 exemption from wholeof the additional duty leviable shall not apply to Hand held Metal/Mine/Bomb detectors etc.-Customs Tariff Notification No.30 Import of specified goods allowed at concessional rate of duty-Customs Notification No.31 FM defers the applicability of GAAR provisions by one year- GAAR provisions will now apply to income of Financial Year 2013-14 and subsequent years-The retrospective clarificatory amendments now under consideration of Parliament will not be used to reopen any cases where assessment orders have already been finalized-long term capital gain arising from sale of unlisted securities in case of non-resident investors, including PE investors lowered to 10 per cent-FM extends benefit of tax exemption on long term capital gains to sale of unlisted securities in IPO-lower rate of withholding tax of 5% for funding all businesses-FM withdraws the provision for levy of TDS on transfer of immovable property-FM raises the threshold limit for TCS on cash purchases of jewellery to Rs.5 lakh-only serious offences under the customs law involving prohibited goods or duty evasion exceeding Rs.50 lakh, shall be cognizable- all these offences shall be bailable-changes in the definition of “service” which will exclude the activities specified in the Constitution as “deemed sale of goods”-The definition of “works contract” also enlarged to include movable properties- Exemption for specified services relating to agriculture in the Negative List extended to agricultural produce enlarging the scope of the entry Anti-dumping duty on imports of Partially Oriented Yarn, originating in, or exported from China-Customs Notification No.22 Customs duty on import of 806 Products from Japan lowered Anti-dumping duty imposed on import of Phosphoric Acid of all grades and all concentrations (excluding Agriculture/FertilizerGrade) , falling under tariff item 28092010, originating in, or exported from,Israel and Taiwan-Customs Tariff Notification No.19 Customs duty on import of composite fertiliser lowered to 1 per cent-Customs Tariff Notification No. 24

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Circular No. 46/9/2002-ST, dated 8-8-2002

F.No. 149/2/2002-CX.4

Government of India

Ministry of Finance (Department of Revenue)

Central Board of Excise & Customs, New Delhi

Subject : Services provided by BSNL to basic/cellular telephone service providers - Regarding.

I am directed to say that doubts have been raised regarding recovery of service tax on certain services provided by Bharat Sanchar Nigam Ltd. (BSNL) to Basic Telephone Service Providers (BSTP) and Cellular Mobile Service Providers (CMSP). References have been received from the Cellular Operators Association of India, New Delhi, and the Department of Telecom (DOT). The services relating to which doubts have been raised are the following :

(i) ‘Inter-connection link charges’ : These are charges relating to interconnectivity provided between the basic/cellular telephone providers and the BSNL/MTNL exchanges. This enables the private basic telephone operators or the mobile service providers to access BSNL telephone lines and vice-versa. This interconnection can be through a cable owned by the BSNL; in which case a monthly/annual rent is charged. If the cable has been laid/ provided by the private basic/cellular telephone service provider no rental is charged by BSNL.

(ii) ‘Rentals for junction links’ : These relate to charges for using junction links of the BSNL/MTNL from one exchange to another.

(iii) ‘Port charges’ : These are something like entry charges for allowing access into the BSNL network.

(iv) ‘Infrastructure charges’ : Sometimes the basic as well as cellular telephone service providers need space to keep their own equipments to facilitate the interconnectivity. This space, when provided by the DOT, a rental is covered from them by the DOT.

2.This issue had been examined earlier in the Board on a reference received from the BSNL and a clarification was issued vide letter F. No. 149/1/2000-CX. 4, dt. 14-3-2001 (addressed to BSNL with copies to all Chief Commissioners) that so far as BTSPs are concerned no service tax was leviable in respect of services listed at (i), (ii) and (iv) above. The clarification did not mention anything about ‘port charges’.

3.It has been reported by the DOT that since Board’s clarification dt. 14-3-2001 referred to BTSPs only, service tax continued to be collected by them on the same services if provided to the CMSPs.

4.The matter has been examined in the Board. So far as the above 4 services are concerned, no difference can be drawn between BTSPs and CMSPs.

5.It is clarified that in respect of services listed at (ii), (iii) and (iv), above no service tax is presently leviable.

6.So far as ‘inter-connectivity linked charges’ are concerned these are nothing but charges for providing ‘leased circuits’. This service (leased circuits) has been brought under the coverage of service tax w.e.f. 16-7-2001. While issuing Board’s clarification dt. 14-3-2001 it was inter alia intimated that this service was not taxable. However, since ‘leased circuits’ have become taxable. However, since ‘leased circuits’ have become taxable w.e.f. 16-7-2001 only, Board’s clarification dt. 14-3-2001 stands modified accordingly.

7.In short, no service tax is leviable in respect of services listed at (ii), (iii) and (iv) above both for BTSPs and CMSPs. However, service tax is leviable w.e.f. [16-7-2001] on ‘inter-connection linked charges’ recovered by BSNL from BTSPs as well as CMSPs.

8.Field formations may be suitably informed.

9.Suitable trade notice may be issued for the information of the trade.

10.Receipt of this Circular may please be acknowledged.

11.Hindi version will follow.