Service tax refund should be available on CFA and logistics services in light of the following recent judgement

      Cenvat - GTA Service - Place of removal extends up to port of shipment when goods are to be delivered onboard vessel - If that is so, cost of transportation will become part of value of goods and whatever service have been availed up to that point would become an input service: CESTAT (2012-TIOL-1149-CESTAT-MUM).

Procedural Changes Announced related to Foreign Trade Policy

Ø  Export benefits under the FTP extended to post, courier or e-commerce exports

Exports from Delhi and Mumbai through post, courier or e-Commerce shall be entitled for export benefits  under the FTP. 

Ø  e-BRC initiative for electronic transmission of information on foreign exchange realization from banks to the DGFT

Under the e-BRC initiative, information on foreign exchange realization would be electronically transmitted to the DGFT on daily basis. This would obviate the requirement of obtaining Bank Export and Realization Certificate from banks and is envisaged to facilitate early settlement and release of FTP benefits.

Changes in Focus Market Schemes

Ø  Focus Market Scheme (FMS)

Products exported to specified countries are eligible for incentive under Focus Market Scheme. The benefit is now extended to seven new countries viz. Algeria, Aruba, Austria, Antilles, Cambodia, Myanmar, Netherland and Ukraine. 

Ø  Special Focus Market Scheme (SFMS)

Products exported to specified countries are eligible for incentives under SFMS. This benefit is now extended to seven new countries viz. Belize, Chile, El Salvador, Guatemala, Honduras, Morocco and Uruguay. 

Ø  Market Linked Focus Product Scheme (MLFPS)

MLFPS provides benefits on export of notified products to specified countries. This benefit has been extended to 46 new products exported to 12 new countries. Further, benefit under MLFPS provided to export of specified textile products to the United States of America and the European Union has been extended up to 31 March 2013. 

Ø  Focus Product Scheme (FPS)

Export of specified products is eligible for incentives under FPS. This benefit has been extended to 110  

new products. 

Post-export EPCG Scheme

A new Post-export EPCG Scheme has also been introduced wherein the exporters can import capital goods on payment of duty and thereafter receive duty credit scrips on actual exports made in proportion to export obligation. The export obligation under the Scheme would be 85% of the normal Export Obligation.

Zero Duty Export Promotion Capital Goods (EPCG) Scheme

Duty free procurement of capital goods allowed under the Zero Duty EPCG Scheme has been extended up to 31 March 2013. Additionally, the scope of the Scheme has been extended to the entities availing benefits under the Technology Up gradation Fund Scheme (TUFS) if (a) the benefits under Zero Duty EPCG scheme are availed by another line of business of the applicant or (b) the benefits under the TUFS already availed are surrendered / refunded along with applicable interest.

 
Besides, the benefits under the Zero Duty EPCG Scheme have been extended to the holders of the Status Holder Incentive Scrip (SHIS) if the benefits of SHIS already availed are surrendered along with applicable interest.