To

The Superintendent of Central Excise,

Komarapalayam Range,
KOMARAPALAYAM.

Sir,

Sub: Service Tax – Internal Audit – Audit of accounts in respect of

M/s.Arunachala Gounder Textile Mills (P) Ltd., Uppupalayam – reg.

****

Please refer to your letter O.C.No.504/2007 dt.14.09.2007 and your Visit

to our Head Office on the above subject.

It is reported by you that the audit have raised a Para that we have
incurred an out ward freight charges to the tune of Rs.36,63,984/- for the goods
cleared to our Customers (OUTWARD CHARGES) and the Service Tax works
out to Rs.3,91,878/-

In this connection we wish to submit that we are having two heads of

Freights in our Balance sheet one under the head of Manufacturing
Expenses and another under the head of Selling Expenses.

In the Manufacturing Expenses head (SCHEDULE - P– in the Balance

Sheet) we are entering the Inward Freights i.e. inward of Raw materials, packing
materials, consumables .

In the head of Selling Expenses (SCHEDULE – R in the Balance Sheet)

we are entering the Freights and forwarding charges for Exports.

This Freight and forwarding charges including the following Viz.

(a) Tuticorin Lorry Freight

(b) Clearing & Forwarding
(c) Ocean Freight for Export &
(d) Insurance paid for Export.
 -2-

At the time of verifying our records ,the Audit party has taken the Tuticorin
Lorry Fright and Clearing & forwarding as out ward freight charges.

In this case we informed that we are paying Tuticorin Lorry Freight charges
directly and we have to pay Service Tax only for this amount.

In respect of Clearing & forwarding (C&F) charges we are having many C&F
Agents like
a) M/s .MACHADO SONS (P) LTD. TUTICORIN.
b) M/s. AIKI LOGISTICS PVT.LTD., TUTICORIN
c) M/S. JEENA & CO., COIMBATORE
d) M/s. MAERSK LINE, MUMBAI
e) M/s. CSAV GROUP AGENCISES (INDIA) PVT. LTD.
f) M/s. EVERGREEN SHIPPING AGENCY (INDIA) PVT. LTD. TUTICORIN.

The above C&F Agents are reputed concerns and all are having Service
Tax Registration with the Excise Department. Further the above C&F Agents
are raising invoices for their services of Clearing & Forwarding of our
consignments for Export mentioning the service tax separately and collected the
appropriate Service Tax in their invoices itself from us.

We are herewith enclosing some of the Xerox copies of their invoices

wherein it will be clearly seen that the Service Tax is collected by the C&F agents
and we need not to pay the Service Tax at Komarapalayam since we have
already paid to the C&F agents then and there.

During the Audit period the Clearing and forwarding charges comes
amount Rs.10,00,632/- as per the Annexure-I – enclosed herewith for which
we need not to pay service tax.

Out of the Out ward freight value of Rs.36,63,984/- after deducting the
clearing & forwarding charges of Rs.10,00,632/- the outward freight value
comes amount Rs.26,63,352/- for which we have to pay Service Tax involved.

In this connection we are herewith submitting that as per Central Excise

Board”s Section 37-B Orders issued under F.No.166/13/2006-Cx 4 dt.12.03.2007
we are eligible for abatement of 75% of gross amount charged by the Goods
Transport Agency since we have full filled the requirement of the declaration by
 -3-

the Goods Transport Agency in all out consignment notes. The declarations
were already verified by Department/ Komarapalayam Range Office on
03.09.2007.

So in the above balance amount of out ward Freight value of

Rs.26,63,352/- we have to pay Service Tax for the value of 25% of the Gross
value only, i.e. for the value of Rs.6,65,838/- and the Service Tax amount comes
around Rs.71,315/- as per ANNEXURE-II enclosed herewith.

Out of the above we had paid Rs. 20616/- on various date as detailed in
ANNEXURE-III enclosed herewith. WE WILL PAY THE REMAINING Rs.

50,699/- along with interest immediately and we will intimate the Payment
details such as T.R.6 challan details with in a week time.

Thanking You sir,

Yours faithfully,

Encl: As above

Date : 05.10.2007
Palce : Pallipalyam.
To

The Superintendent of Central Excise,

Komarapalayam Range,
KOMARAPALAYAM.

Sir,

Sub: Service Tax – Internal Audit – Audit of accounts in respect of

M/s. P.K.P.N.Spinning Mills (P) Ltd., Sowthapuram– reg.

****

Please refer to your letter O.C.No.474/2007 dt.07.09.2007 and your Visit

to our Head Office on the above subject.

It is reported by you that the audit have raised a Para that we have
incurred an out ward freight charges to the tune of Rs.46,86,050/- for the goods
cleared to our Customers (OUTWARD CHARGES) and the Service Tax works
out to Rs.- 5,06,683/- (4,96,748 /- + Edc.Cess . 9,935/-)

In this connection we wish to submit that we are having two heads of

Freights in our Balance sheet one under the head of Manufacturing
Expenses and another under the head of Selling Expenses.

In the Manufacturing Expenses head (SCHEDULE - P– in the Balance

Sheet) we are entering the Inward Freights i.e. inward of Raw materials, packing
materials, consumables .

In the head of Selling Expenses (SCHEDULE – R in the Balance Sheet)

we are entering the Freights and forwarding charges for Exports.

This Freight and forwarding charges including the following Viz.

(e) Tuticorin Lorry Freight

(f) Clearing & Forwarding
(g) Ocean Freight for Export &
(h) Insurance paid for Export.
 -2-

At the time of verifying our records the Audit party has taken the Tuticorin
Lorry Fright and Clearing & forwarding as out ward freight charges.

In this case we informed that we are paying Tuticorin Lorry Freight charges
directly and we have to pay Service Tax only for this

In respect of Clearing & forwarding (C&F) charges we are having many C&F
Agents like
g) M/s .MACHADO SONS (P) LTD. TUTICORIN.
h) M/s. AIKI LOGISTICS PVT.LTD., TUTICORIN
i) M/S. JEENA & CO., COIMBATORE
j) M/s. MAERSK LINE, MUMBAI
k) M/s. CSAV GROUP AGENCISE (INDIA) PVT. LTD.
l) M/s. EVERGREEN SHIPPING AGENCY (INDIA) PVT. LTD. TUTICORIN.

The above C&F Agents are reputed concerns and all are having Service
Tax Registration with the Excise Department. Further the above C&F Agents
are raising invoices for their services of Clearing & Forwarding of our
consignments for Export mentioning the service tax separately and collected the
appropriate Service Tax in their invoices itself from us.

We are herewith enclosing some of the Xerox copies of their invoices

wherein it will be clearly seen that the Service Tax is collected by the C&F agents
and we need not to pay the Service Tax at Komarapalayam since we have
already paid to the C&F agents then and there.

In this connection we are herewith submitting that as per Central Excise

Board”s Section 37-B Orders issued under F.No.166/13/2006-Cx 4 dt.12.03.2007
we are eligible for abatement of 75% of gross amount charged by the Goods
Transport Agency since we have full filled the requirement of the declaration by
the Goods Transport Agency in all out consignment notes. The declarations
were already verified by Department/ Komarapalayam Range Office on
03.09.2007.

So in the above balance amount of out ward Freight value of Rs.

46,86,050/- we have to pay Service Tax for the value of 25% of the Gross value
only, i.e. for the value of Rs. 11,71,513/- and the Service Tax amount comes
around Rs. 1,26,671/- as per ANNEXURE enclosed herewith.
 -3-

Out of the above we had paid Rs. 38,796/- on various date as

detailed in ANNEXURE enclosed herewith. WE WILL PAY THE REMAINING Rs.
87875/- along with interest immediately and we will intimate the Payment
details such as T.R.6 challan details with in a week time.

Thanking You sir,

Yours faithfully,

Encl: As above.

Date : 05.10.2007
Palce : Pallipalyam.

http://www.nationalgeographic.com/places/photos/places-bangkok-gallery-
1/bangkok-1-cityscape.html
 Dt. 03.09.2007
To

The Superintendent of Central Excise,

Komarapalayam Range,
KOMARAPALAYAM.

Sir,

Sub: Service Tax – GTA- Availment of Abatement of

75 % M/s. P.K.P.N.Spinning Mills (P) Ltd., Sowthapuram– reg.
____

Please refer to your letter O.C.No. …. /2007 dt. 27.06.2007 on the

above subject.

In this connection we are here with enclosing the Consignment Notes

received from the Good Transport Agencies for your verification .and perusal
and return the same after verification.

In this connection we are herewith further submited that as per Central

Excise Board”s Section 37-B Orders issued under F.No.166/13/2006-Cx 4
dt.12.03.2007 we are eligible for abatement of 75% of gross amount charged by
the Goods Transport Agency since we have full filled the requirement of the
declarations by the Goods Transport Agency in all out consignment notes.

The Consignment Notes may please be retuned to us after verification.

Yours faithfully,
Encl: As above.
 Dt. 03.09.2007
To

The Superintendent of Central Excise,

Komarapalayam Range,
KOMARAPALAYAM.

Sir,

Sub: Service Tax – GTA- Availment of Abatement of 75 %

M/s.Arunachala Gounder Textile Mills (P) Ltd.U pupalayam–
reg.
____

Please refer to your letter O.C.No. 275 /2007 dt. 27.06.2007 on the
above subject.

In this connection we are here with enclosing the Consignment Notes

received from the Good Transport Agencies for your verification .and perusal
and return the same after verification.

In this connection we are herewith further submited that as per Central

Excise Board”s Section 37-B Orders issued under F.No.166/13/2006-Cx 4
dt.12.03.2007 we are eligible for abatement of 75% of gross amount charged by
the Goods Transport Agency since we have full filled the requirement of the
declarations by the Goods Transport Agency in all out consignment notes.

The Consignment Notes may please be retuned to us after verification.

Yours faithfully,
Encl: As above.
 Dt. 08.10.2007
To

The Superintendent of Central Excise,

Komarapalayam Range,
KOMARAPALAYAM.

Sir,

Sub: Service Tax – ST 3 – Return – Delay infilling the Return- M/s.

P.K.P.N.Spinning Mills (P) Ltd., Sowthapuram - Late fee paid
reg.
___

Please refer to your letter O.C..No. 522 / 2007 dt. 20.09.2007 on

the above subject.

With reference to the above we have paid the Late fee of Rs 2000/-
for the filing of ST3 for the period (1) January 2005 to March 2005 (2) October
2005 to March 2006 each Return Rs.2000 x 2 = Rs 4000/- on 28.09.2007.

The Xerox copies of the above T.R.6 Challans are submitted

herewith for favor of necessary action.

Yours faithfully,
Encl: As above.