TIOL-DDT 1007 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1007</font> <br>
08.12.2008 <br>
Monday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mega
Budget in December!</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was almost a Budget, with no Finance Bill, no Parliament and not even a Finance Minister. The CBEC issued several notifications yesterday, in tune with the PM's Economic Package.</font></p>
<p align="left"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong>- <strong>one more service added for export benefit:</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exemption to Taxable services used for export of goods through the refund mode - clearing and forwarding agent - added to list of eligible services: </strong> Now Service Tax paid on clearing and forwarding agent in relation to export goods exported by the exporter, is also eligible for the exemption through the refund route. This is added as item No. 19 to the list in Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2007/stnot07_041.htm" target="_blank">41/2007-Service Tax</a></strong>, dated the 6th October, 2007.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is subject to the condition that the exporter shall produce,-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) invoice issued by clearing and forwarding agent for providing services specified in column (3) specifying:</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) number and date of shipping bill,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) description of export goods,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) number and date of the invoice issued by the exporter relating to export goods,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) details of all the charges, whether or not reimbursable, collected by the clearing and forwarding agent from the exporter in relation to export goods.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) details of other taxable services provided by the said clearing and forwarding agent and received by the exporter, whether or not relatable to export goods.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The declaration that <em>"the said goods shall be exported without availing drawback of service tax paid on the specified services under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995;" </em> is no more required.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_033.htm" target="_blank">Notification NO. 33/2008-Service Tax Dated: 7th December, 2008</a></strong></font></p>
<p align="left"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise: Tobacco also gets relief</strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <strong>Goods manufactured in EOUs - exemption - Notification No. 23/2003 amended: </strong>The 8% duty related to textile articles is reduced to 4% and the 4% duty is reduced to <strong>nil </strong> in Sl Nos 5, 5A, 6, 7 and 7A of the table to the Notification. The notification had an explanation - The <em> value of the goods shall be determined in terms of section 4 of the Central Excise Act". </em>This is retained. <strong>Now when the duty is NIL, what is the need for determining the value under Section 4? This is another case of callous "copy and paste" technology. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <strong>Textiles - 8% reduced to 4% and 4% reduced to NIL. </strong>Notification No. 29/2004 amended.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <strong>Intraocular lenses: </strong>Intraocular lenses falling under heading 9001 will now be charged to 4% excise duty instead of 8%. - Notification No. 3/2005 amended.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. <strong>Excise Duty reduced from 14% to 10% and 8% to 4% for items covered under Notification No. 3/2006: </strong>But the notification 3/06 also contains entries relating to tobacco products at Sl.No. 33, 35 and 40. Is it necessary to reduce duty on tobacco products also? Does the govt think that increase in tobacco consumption will boost the economy? Then what happens to Mr. Ambumani Ramdass's claims?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. <strong>Excise Duty on Cement- Specific rate reduced: Notification No. 4/2006 amended: </strong>The rate of Rs. 220 is reduced to Rs. 145; Rs. 370 reduced to Rs. 250; Rs. 350 reduced to Rs. 230; Rs. 250 reduced to Rs. 170 and Rs. 400 reduced to Rs. 290.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. 4% reduction to goods covered under Notification No. 6/2006.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. 8% duty reduced to 4% for goods covered under Notification No. 10/2006.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. 8% duty instead of 12% for software - Notification No. 49/2006 amended.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.14% effective rate reduced to 10% for most goods - Notification No. 2/2008 amended.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_58.htm" target="_blank">Notification No. 58/2008 - Central Excise Dated: 7th December, 2008</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Duty
Rates of 24%, 12% and 8% reduced by 4%: </strong>wherever duty rates were
24%, 12% and 8%, they have been reduced to 20%, 8% and 4% respectively.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there may be certain goods which will attract nil rate of duty as well as 4% duty by two different notifications, but of course the assessee will have the choice.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_59.htm" target="_blank">Notification No. 59/2008 - Central Excise Dated: 7th December, 2008</a></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs:</strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <strong>Naphtha for power projects exempted - no exemption for captive consumption: </strong>Naphtha imported for generation of electrical energy by electrical undertakings owned by Central and State Governments or State Electricity Boards or any local authority or a person licensed under part II of the Electricity Act, 1910 or who has obtained a sanction under section 28 of the said act or a generating company permitted under the Electricity (Supply) Act, 1948 to supply electrical energy or to engage in the business of supplying electrical energy, exempted from Customs duty, but the exemption shall not be available if such naphtha is used for generation of electrical energy for captive consumption. The exemption is valid till 31st march 2009.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <strong>CVD reduced to 10% </strong> in place of 14% for many items covered under Notification No. 21/2002</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_128.htm" target="_blank">Notification No. No. 128/2008-Customs Dated: 7th December, 2008</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No Export duty on Iron Ore fines: </strong>Iron ore fines falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act, exempted from export duty. Consequently the Notification No. 116/2008, dated the 31st October, 2008 prescribing effective rate of Rs. 200/- per tonne is withdrawn.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_129.htm" target="_blank">Notifications No. 129/2008-Customs </a></strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_129.htm">and <strong>No. 131/2008-Customs Dated: 7th December</strong></a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Iron ores and concentrates to attract 5% export duty: </strong>iron ores and concentrates falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act will now attract 5% export duty instead of the present 15% - Notification No. 79/2008 amended.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_130.htm" target="_blank">Notification No. No. 130/2008-Customs Dated: 7th December, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Stimulus to Economy - CENVAT Rate reduced to 10% - effective from many hours before issue of the notifications</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On a lazy Sunday evening, the Government has attempted to stimulate the Indian economy. To boost the sale of manufactured goods, the excise duty rate has been reduced from 14% to 10%, 12% to 8% and 8% to 4% (other than petroleum products) These reduced rates will be with immediate effect. We received many calls asking for clarification whether the notifications were effective midnight of 7th December or 8th December. As 8th December did not figure in any notification, we had to clarify that the notifications were effective 0000 hrs of 7.12.2008.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, all the invoices issued till yesterday's evening (the Notifications were available around 8 PM) would have been raised with 14%. The buyers will pay only 10% on these clearances as they insist that the rate of CENVAT is only 10% from 7.12.2008. The manufacturer will not get any refund from the department as subsequent credit notes will not make him immune from the doctrine of unjust enrichment since the invoice was issued by the manufacturer at 14%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% is not a small amount and in the days to come; we assure you that there will be a number of Breaking News stories on this issue as a result of various disputes that may arise.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why can't the Government implement the new rates from tomorrow? How much revenue they will lose if the manufacturers postpone the clearances by a few hours till tomorrow? How do they expect a manufacturer to know this morning that he has to pay duty at 10%?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And we may have even Audit objections that the extra 4% CENVAT paid on the clearances effected from 7th morning till night will not be available to the buyers as CENVAT Credit. The Audit Report could read thus "illegal passing of CENVAT Credit to downstream manufacturers"</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Press note issued by the PM's Media Advisor reads "As an immediate measure to encourage additional spending, an across-the-board cut of 4% in the ad valorem CENVAT rate will be <em>effected for the balance part of the current financial year </em> on all products other than petroleum and those where the current rate is less than 4%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, there are no assurances that the reduced rates will be applicable even for the next financial year and the manufacturers should exercise caution in this regard.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Government - TIOL Partnership for ultimate Common Good</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are proud, privileged and extremely happy that only we could make the CBEC notifications available to the public - absolutely free. The law is a law only when it is made known to the public. And we are proud to have played a role in making the law in the government's exercise to stimulate the economy, known to the public as fast as possible. This is what we have been always suggesting to the Government. We can ensure that your notifications reach not only the public but your own officers, if you just make them available to us, for we have no Sundays and holidays or restricted working hours, restraining us from carrying your messages to the public. Many law makers are angry with us for pointing out their mistakes, but we humbly submit that we are doing a service to you. Not a single website in the country (except of course TIOL) carried the notifications yesterday and more than 70% calls we received for these notifications was from Departmental officers! We hope that it will at least now be realised that we are partners and not adversaries.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>'fish or fish products' - CBDT clarifies</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received from various quarters regarding problems being faced by the seafood exporters mainly on account of provisions of Section 40A (3) of the Income tax Act, 1961.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Disallowance of expenditure under the provisions of sub-section (3) of section 40A of the I.T. Act, 1961 is made in the computation of income in a case were a payment or aggregate of payments exceeding twenty thousand rupees is made to a person in a day, otherwise than by an account payee cheque drawn on a bank or an account payee bank draft. However, payment otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft exceeding twenty thousand rupees does not attract the disallowance in certain circumstances as prescribed under rule 6DD of the Income-tax Rules, 1962. Such exceptions, inter-alia, refer to payment made to the producer for the purchase of 'fish or fish products' under sub clause (iii) of clause (e) of rule 6DD.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the CBDT has issued the following clarifications:-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The expression 'fish or fish products' used in rule 6DD (e)(iii) would include 'other marine products such as shrimp, prawn, cuttlefish, squid, crab, lobster etc.'</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The 'producers' of 'fish or fish products' for the purpose of rule 6DD (e) of I.T. Rules, 1962 would include, besides the fishermen, any headman of fishermen, who sorts the catch of fish brought by fishermen from the sea, at the sea shore itself and then sells the fish or fish products to traders, exporters etc.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has further clarified that the above exception will not be available on the payment for the purchase of fish or fish products from a person who is not proved to be a 'producer' of these goods and is only a trader, broker or any other middleman, by whatever name called.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2008/it08cir10.htm" target="_blank">CBDT Circular No. 10/2008, Dated: December 5, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Refund of TED to manufacturers of vehicles for deemed export supplies to EPCG</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received from manufacturers of vehicles that their claims for refund of TED against deemed export supplies to EPCG Authorization holders through their dealers are being rejected by the Regional Authorities on the grounds that excise invoices are not issued directly in the name of the EPCG authorization holders and capital goods are not supplied directly to the EPCG authorization holder but are routed through the dealer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT clarifies that:-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) TED refund on vehicles supplied to EPCG authorization holders should be permitted to the indigenous manufacturers of vehicles on submission of Affidavits from the Dealer as well as the EPCG Authorization holder to the effect that they have not claimed/are not claiming TED refund against the vehicle.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The Affidavit should state the dealers excise invoice number and the chassis number of the vehicle supplied by the Dealer to the EPCG authorization holder.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) The affidavit would be in addition to other documents for claiming deemed export benefits as prescribed in the Foreign Trade Policy and Procedures</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir044.htm" target="_blank">DGFT Policy Circular No. 44 (RE-08)/2004-2009, Dated: December 4, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import policy of Elastomeric - mis-declaration - DGFT cautions</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vide Notification No. 64 (RE-2008) dated 24.11.2008, import of items classified under Exim Code 5402 44 00 -- Elastomeric, 5402 47 00 -- Other, of polyesters have been restricted.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has received reports that these restricted items are being mis-declared and imported freely. Therefore, all authorities concerned are requested to ensure that there is strict adherence to the laid down import policy and no item is imported under the wrong code.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir046.htm" target="_blank">DGFT Policy Circular No. 46 (RE-08)/2004-2009, Dated: December 5, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ban on Export of Non-Basmati Rice - Not to apply to Nepal</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ban on export of non-basmati rice shall not be applicable to export of 10,000 to 15,000 MTs of non-basmati rice to Nepal, subject to the following conditions:-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) The above quantity shall be exported through State Trading Corporation (STC);</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) STC shall procure the above quantity of rice from such rice Mills who have surplus rice/paddy in their stocks;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) The rice to be exported shall be with a minimum of 25% of brokens;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv) STC shall ensure that their entry into market for this export does not affect the overall price situation of rice;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v) STC shall source the rice to be exported from more than one State to avoid any disturbance in the market.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2008/dgft08not069.htm" target="_blank">DGFT Notification No. 69 (RE-2008)/2004-2009, Dated: December 5, 2008</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">- Tomorrow's cases</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Harshad Mehta case - Banks plead - Special Court scales down tax liability of Mehta and directs Income tax to refund Rs 546 Cr - If banks claim sum is wrongly included in Mehta's income, they need to show nexus between decreed amount and amount included in Mehta's income: Supreme Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong>case goes back to the first mega Securities Scam which had upset the entire economy. Yes, late Harshad Mehta was the trigger point for this scam. The then Govt had reacted strongly by enacting the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992. Mr Mehta was notified under Section 11(2)(a) of this Act, and his properties were attached. A custodian was appointed to look after them. Mr Mehta fought a legal battle against the custodian which was decided by the Apex Court. In this order, the first priority to tax dues of income tax department was approved by the Bench, followed by others like banks and mutual fund. So, what is this dispute all about? In this appeal the Revenue has challenged the order of the special court, directing it to deposit Rs 546 Cr with the Custodian along with 9% interest. Such an order was given in response to applications filed by banks. While holding that at this stage Mr Mehta's tax liability does not appear to be in excess of Rs 140 Cr, the Special Court decided that since the sum kept with the Custodian may not serve any useful purpose, the same was directed to be deposited with the SBI and other banks.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appeal against remand order of the Tribunal - No substantial question of law - Cross examination to be allowed - Commissioner's inaction not appreciated: High Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> High Court found that the impugned order was passed two years ago. No stay was sought or granted. Still, the Commissioner has failed to carry out the direction of the Tribunal, by which the Commissioner was bound, only on pretext that appeal was filed. Such conduct of the Commissioner can hardly be appreciated.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>One who committed breach of the conditions of the Notification is not entitled to blame other party to the transactions: Tribunal allows appeal by majority</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According to this complexly worded notification, the manufacturer is required to utilize whole of the Cenvat credit available on the last day of the month under consideration for payment of duty on goods cleared and <strong>pay the balance amount of duty in cash. </strong> The <strong>duty paid in cash is refundable </strong> and for this purpose, the Notification has two alternative procedures. The appellants have opted for self-credit procedure under clause 2a (now clause 2C (a)) of the Notification which allows the assessee to take credit of duty paid in cash and submit a statement to the jurisdictional Asstt. Commissioner/Deputy Commissioner and the A.C/D.C shall determine the amount correctly refundable to the manufacturer and intimate the same to the manufacturer. In case, the self credit taken by the manufacturer is in excess of the amount determined by the A.C/ D.C, the manufacturer is required to reverse the credit within 5 days from the receipt of the said intimation. <strong>The self-credit taken in the PLA can be utilized for payment of duty in the manner specified in rule 8 in the subsequent months and such payment shall be deemed to be payment in cash.</strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns tomorrow for the judgements</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is a holiday, but we will be with you if there is anything of importance</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Until then with more <strong>DDT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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