Amended Procedure of CBEC to avail Cenvat Credit of Service Tax on Railway Transportation

CBEC Prescribes Revised Procedure to avail Cenvat Credit of Service Tax paid to Railways for Transportation of Goods using STTG Certificate

The CBEC has prescribed amended procedure to avail Cenvat Credit of Service Tax paid to Railways for Transportation of Goods, using Service Tax Certificate for Transportation of goods by Rail (STTG Certificate) without enclosing photocopies of the railway receipts (RRs), as under:

CBEC Circular No. 1048/36/2016-CX dt. 20 Sept. 2016 F. No. 267/09/2016-CX.8

Sub.: Service Tax Certificate for Transportation of goods by Rail (STTG Certificate) 

Kind attention is invited to Notification No. 45/2016-CE (N.T.) dated 20.09.2016 wherein clause (fa) in sub-rule (1) of rule 9 of CENVAT Credit Rules, 2004 has been substituted and the requirement of enclosing photocopies of the railway receipts (RRs) with the STTG certificate, as a document for availing CENVAT credit, has been amended such that railway receipts would not be required to be enclosed with the STTG certificate. The following procedure is hereby prescribed for availing CENVAT credit of service tax paid on transportation of goods by rail:

i) The STTG Certificate shall be issued to rail customer (consignor/ consignee, whosoever makes the payment of Service Tax) by the Railways for the purpose of availing CENVAT credit. A proforma containing the format of STTG certificate to be filled by the consignor/ consignee is enclosed herewith as Annexure-A.

ii) The STTG certificate shall capture various details such as name of the customer, no. of Rs issued, total service tax/ cess paid, Service Tax code, registration no., details of the certifying authority from railways etc.

iii) The STTG certificate shall also contain details of RR(s) in a tabular form annexed to the STTG certificate (enclosed as Annexure-B). The details shall inter alia include RR number, date, name of the consignee, freight, service tax/ cess paid etc. The said list of RR(s) shall be certified by competent Railways Authority.

iv) In cases where the Service Tax is paid by the consignor and he intends to avail the CENVAT credit, he may avail the same on the strength of the STTG certificate issued in his name in the format prescribed above.

v) In case if the Service Tax has been paid by the consignor but CENVAT credit is to be availed by the consignee, who is eligible for such credit as per the rules, the consignor shall make a written request to Railways for issue of consignee-wise STTG certificate duly indicating the RR details pertaining to the consignee in the format prescribed above. The competent Railway Authority shall issue the STTG certificate accordingly, even though it will require issuance of more than one STTG certificates to the customer (consignor) for a particular month. The consignor shall
transfer the consignee-wise ‘STTG certificate’ in original to the consignee concerned. The consignee may avail the CENVAT credit on the strength of this certificate.

vi) Where a consolidated STTG Certificate has been issued in terms of clause (iii), no STTG Certificate consignee-wise in terms of clause (v) shall be issued and vice-versa.

Encl.:

a) STTG CERTIFICATE (Annexure-A)

b) R Details (Annexure-B)


CBEC Notification No. 45/2016 – Central Excise (N.T.) dt. 20 Sept. 2016 [F. No. 267/09/2016-CX.8]

G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely

1. (1) These rules may be called the CENVAT Credit (Tenth Amendment) Rules, 2016. (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the CENVAT Credit Rules, 2004, in rule 9, in sub-rule (1), for clause (fa), the following clause shall be substituted, namely:-

“(fa) a Service Tax Certificate for Transportation of goods by rail issued by the Indian Railways; or”

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide Notification No. 23/2004 – Central Excise (N.T.), dated the 10th September, 2004, vide, number G.S.R. 600(E), dated the 10th September, 2004 and last amended vide Notification No. 41/2016 – Central Excise (N.T.), dated the 10th August, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 784(E), dated the 10th August, 2016.

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