TIOL-DDT 11 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000CC" size="3">TIOL-DDT
11</font><br>
15 12 2004<br>
Wednesday</b></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>EXPORT
OF SEA SHELLS ALLOWED </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>AS</b> per the ITC(HS) Classification of Export and Import Items, 2004-2009,
export of sea shells was either restricted or prohibited. The Government has
amended this so that now free export is allowed for Sea Shells, including
polished sea shells and handicrafts made out of those species not included in
the Schedules of the Wild Life (Protection ) Act, 1972.<br>
<br>
Sea Shells, including polished sea shells and handicrafts made out of those
species included in <b>CITES</b> (excluding the species mentioned in Schedules
of Wild Life (Protection) Act, 1972 are now placed under the restricted category
for exports. The restriction is that Export is to be governed by <b>CITES</b>
Regulations.<br>
<br>
However shells included in the Schedules of the Wild Life (Protection ) Act,
1972 will continue to be under the prohibitory category, that is export will
not be permitted.<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2004/dgft04not010.htm">NOTIFICATION
No 10 (RE-2004)/2004-2009</a>, Dated: December 10, 2004</font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>What is CITES?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CITES
(the Convention on International Trade in Endangered Species of Wild Fauna and
Flora) is an international agreement between Governments. Its aim is to ensure
that international trade in specimens of wild animals and plants does not threaten
their survival.<br>
<br>
Widespread information nowadays about the endangered status of many prominent
species, such as the tiger and elephants, might make the need for such a convention
seem obvious. But at the time when the ideas for CITES were first formed, in
the 1960s, international discussion of the regulation of wildlife trade for
conservation purposes was something relatively new. With hindsight, the need
for CITES is clear. Annually, international wildlife trade is estimated to be
worth billions of dollars and to include hundreds of millions of plant and animal
specimens. The trade is diverse, ranging from live animals and plants to a vast
array of wildlife products derived from them, including food products, exotic
leather goods, wooden musical instruments, timber, tourist curios and medicines.
Levels of exploitation of some animal and plant species are high and the trade
in them, together with other factors, such as habitat loss, is capable of heavily
depleting their populations and even bringing some species close to extinction.
Many wildlife species in trade are not endangered, but the existence of an agreement
to ensure the sustainability of the trade is important in order to safeguard
these resources for the future.<br>
<br>
Because the trade in wild animals and plants crosses borders between countries,
the effort to regulate it requires international cooperation to safeguard certain
species from over-exploitation. CITES was conceived in the spirit of such cooperation.
Today, it accords varying degrees of protection to more than 30,000 species
of animals and plants, whether they are traded as live specimens, fur coats
or dried herbs.<br>
<br>
CITES was drafted as a result of a resolution adopted in 1963 at a meeting of
members of IUCN (The World Conservation Union). The text of the Convention was
finally agreed at a meeting of representatives of 80 countries in Washington
DC., United States of America, on 3 March 1973, and on 1 July 1975 CITES entered
in force.<br>
<br>
CITES is an international agreement to which States (countries) adhere voluntarily.
States that have agreed to be bound by the Convention ('joined' CITES) are known
as Parties. Although CITES is legally binding on the Parties - in other words
they have to implement the Convention - it does not take the place of national
laws. Rather it provides a framework to be respected by each Party, which has
to adopt its own domestic legislation to make sure that CITES is implemented
at the national level.<br>
<br>
Not one species protected by CITES has become extinct as a result of trade since
the Convention entered into force and, for many years, CITES has been among
the largest conservation agreements in existence, with now 167 Parties.<br>
<br>
<font color="#006633"><b>Double taxation avoidance :</b></font> Government notifies
<b>CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT
OF THE REPUBLIC OF ARMENIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION
OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME</b>- <a href="http://taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTE5ODU=" target="_blank">NOTIFICATION
NO 292/2004, Dated : December 8, 2004</a></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Import of Duty Free crude oil against export of petroleum products</b></font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Government
has notified norms for import of Duty Free crude oil against export of petroleum
products. The norms for crude oil for 1 Metric tonne (MT) of product exported
are as under :</font></p>
<p align="center"> </p>
<div align="center">
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=60%>
<TR>
<TD WIDTH="44%" VALIGN="TOP"> </TD>
<TD WIDTH="56%" VALIGN="TOP"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><b><u>Crude
Quantity allowed </u>(MT)</b></font></TD>
</TR>
<TR>
<TD WIDTH="44%" VALIGN="TOP"> <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>LPG
</b></font></TD>
<TD WIDTH="56%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>1.564
</b></font></TD>
</TR>
<TR>
<TD WIDTH="44%" VALIGN="TOP"> <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Light
Ends </b></font></TD>
<TD WIDTH="56%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>1.265
</b></font></TD>
</TR>
<TR>
<TD WIDTH="44%" VALIGN="TOP"> <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Middle
Distillates </b></font></TD>
<TD WIDTH="56%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>1.072
</b></font></TD>
</TR>
<TR>
<TD WIDTH="44%" VALIGN="TOP"> <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Heavy
Ends </b></font></TD>
<TD WIDTH="56%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>0.820
</b></font></TD>
</TR>
</TABLE>
</div>
<P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
quantity of petroleum products exported during the last three years company
wise is given below :-</font></P>
<DIR> <DIR> <DIR> <DIR> <DIR> <DIR> <DIR></DIR></DIR></DIR></DIR></DIR></DIR></DIR>
<div align="right"></div>
<DIR> <DIR> <DIR> <DIR> <DIR> <DIR> <DIR> <DIR>
<P ALIGN="RIGHT"></P>
</DIR></DIR></DIR></DIR></DIR></DIR></DIR></DIR>
<TABLE BORDER CELLSPACING=1 CELLPADDING=2 WIDTH=100%>
<TR>
<TD colspan="11" VALIGN="TOP"> <div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>Quantity
in Thousand Metric Tonne</u></b></font></div></TD>
</TR>
<TR>
<TD WIDTH="13%" VALIGN="TOP"> <P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Company
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>IOC
</b></font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>BPC
</b></font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>HPC
</b></font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>KRL
</b></font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>ONGC
</b></font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>MRPL
</b></font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>RIL
</b></font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CPCL
</b></font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>NRL
</b></font></TD>
<TD WIDTH="9%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Total
</b></font></TD>
</TR>
<TR>
<TD WIDTH="13%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2001-02
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">49
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">141
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">532
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">105
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">251
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">424
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8582
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0
</font></TD>
<TD WIDTH="9%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10085
</font></TD>
</TR>
<TR>
<TD WIDTH="13%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2002-03
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">396
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">483
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">596
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">165
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">135
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1957
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6505
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">34
</font></TD>
<TD WIDTH="9%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10289
</font></TD>
</TR>
<TR>
<TD WIDTH="13%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2003-04
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1096
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">452
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">776
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">154
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">403
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4225
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7514
</font></TD>
<TD WIDTH="10%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0
</font></TD>
<TD WIDTH="8%" VALIGN="TOP"> <P ALIGN="CENTER"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0
</font></TD>
<TD WIDTH="9%" VALIGN="TOP"> <P ALIGN="JUSTIFY"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14620
</font></TD>
</TR>
</TABLE>
<P ALIGN="JUSTIFY"></P>
<P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Above information
was given by Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas,
in a written reply in the Rajya Sabha.</font></P>
<P align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Indirect tax collections up by 11.7% in April-Nov</b></font></P>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The indirect tax collections for the period April-November 2004 was up by 11.73%.<br>
<br>
Collections touch Rs 1,02,553.25 crore as against Rs 91,790.21 crore recorded
during the same period in the previous financial year.<br>
<br>
++ customs duty increased by 12.1 per cent to Rs 35,720.24 crore (Rs 31,863.73
crore),<br>
<br>
++ excise duty at Rs 59,819.26 crore (Rs 55,605.40 crore).<br>
<br>
++ service tax collections during the first eight months have increased by 62.31%<br>
<br>
++ more than 1,43,000 service providers obtained registration in the special
camps organised by the Central Excise Department across the country during October
and November for on-the spot registration.<br>
<br>
++ During April-November, customs duty amounting to Rs 167.63 crore has been
realised from "unscrupulous importers" and show-cause notices demanding
duty of Rs 745.24 crore have been issued.<br>
<br>
++ From April 1 to December, the Revenue Department has issued notices demanding
duty of Rs 1,450 crore to "unscrupulous manufacturers" who were evading
Central excise duty.<br>
<br>
++ evasion prone commodities are automobile components and parts, iron and steel
products, pan masala, gutkha, chewing tobacco, polyester yarn and bulk drugs.<br>
<br>
++ value of narcotic drugs seized during the first eight months of the financial
year is approximately Rs 53 crore.</font></p>
<p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>DDT question</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Last
week's question was whether interest paid was refundable and under what
law.<br>
<br>
DDT received a very interesting mail from an enlightened reader<br>
<br>
In <b>Bhoruka Textiles Ltd Vs Asst. Commissioner</b> reported in 2004(167) ELT556
Commr (A) the Commissioner(Appeals) allowed <b>consequential relief to the assessee
who paid the duty and interest before filing appeal. </b> In Konark Cement
& Asbestos Ltd Vs Commissioner reported in 2000(120)ELT 634(Trib-Kol) it
was held by the Tribunal that the appellate orders should be followed by the
subordinate authorities lest it amounts to judicial indiscipline and stern action
can be taken in terms of Rule 41 of CESTAT (PROCEDURE) Rules, 1982. In view
of this, disciplinary action can be taken against the Assistant Commissioner
for not following the Appellate authority's order.<br>
<br>
There is no doubt that Section 11B speaks of only refund of duty but this duty
is paid on demand or otherwise in terms of various provisions of Sec 11A
and as per explanation 2 of Sec 11A interest is payable under Sec 11AB for payments
made under this section either voluntarily or on demand. When interest is paid
along with the duty naturally it is eligible for refund along with duty
though Section. 11B explicitly does not provide for the same. <b>Unfortunately
the department acts tough while collecting duty with interest and hides under
a facade of illusion while it comes to refund of the same.</b> <br>
<br>
We had carried an order of the Bangalore Bench of the CESTAT recently, <a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2004/2004-TIOL-948-CESTAT-BANG.htm" target="_blank">2004-TIOL-948-CESTAT-BANG</a>
wherein it was held that:-<br>
<br>
It is a fact on record that consequent to the order-in-appeal, the demand has
been set aside in its entirety and the appellant is entitled to refund of all
the adjudication levies paid irrespective of the fact whether or not there is
a specific provision for refund of interest. The amount, which is not due to
the Government, cannot be retained by the exchequer. Therefore, the appellant
is rightly entitled to the interest paid.<br>
<br>
It was also held in 1993 (68) ELT 638, that "interest is not duty,
but when the interest has been collected, when it is not to be recovered, that
is to be refunded under the normal law". The Kerala High Court had remarked
it in simple arithmetic terms. <b>If Principal is zero, interest is also zero.</b><br>
<br>
<b>So with or without law, interest has to be refunded if duty demand is quashed.</b></font></p>
<p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>THIS Week's DDT Question</b></font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>In
an offence case in Central Excise, who is authorised to file a complaint in
a Court?</b><br>
<br>
Please send your answer to <b><font color="#0000CC">vijaywrite@taxindiaonline.com</font></b>
<br>
<br>
Until Tomorrow with more of DDT<br>
<br>
Have a Nice Day<br>
<b><br>
<font color="#FF0000">For every tax problem there is a solution which is straightforward,
uncomplicated and wrong. </font></b></font></p>
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