TIOL-DDT 119 · the untouched capture
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<p align="left"><font size="4" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#6633CC" size="3">TIOL-DDT
119</font></strong></font><font size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><br>
20 05 2005<br>
Friday</font></strong></font></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#006633">Corrigendum
to Notifications – How do you decipher them?</font></font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The Government has issued corrigendum to <strong>notification No. 20/2005 dated
13.5.2005</strong>. The Corrigendum says,<br>
<br>
<strong>In the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 20/2005-Central Excise, dated the 13th May, 2005,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i) vide G.S.R. 293 (E), dated the 13th May, 2005, </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>at
page 2, in line 37, for “2, 3, 4 and 5”, read “3, 4, 5 and
6” .</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
how do you understand what this page 2 and lines of the notification as published
in the Gazette are. The Gazette is such a sacred secret document that nobody
gets it. Whenever a notification is published, we make all efforts to get a
copy of the gazette and with unfailing regularity, we have failed on all occasions.
A concerned Netizen asked us where he could get a copy of gazette and why the
gazette cannot be made available online. We have not been able to find out why
the gazette cannot go online and as for getting a copy - the wastepaper sellers
in Turkmangate are worth a try! <br>
<br>
Coming back to our <strong>Notification No 20/2005</strong>. It fixed the effective
rates of additional duty for certain goods as follows. </font></p>
<div align="justify">
<table width=450 border=1 align="center" cellpadding=0 cellspacing=1>
<tr>
<td width="7%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> S.
No.</font></p></td>
<td width="13%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter
or heading or sub-heading or tariff item</font></p></td>
<td width="66%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description
of goods</font></p></td>
<td width="11%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rate
of duty</font></p></td>
</tr>
<tr>
<td width="7%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1)</font></p></td>
<td width="13%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2)</font></p></td>
<td width="66%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3)</font></p></td>
<td width="11%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4)</font></p></td>
</tr>
<tr>
<td width="7%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.</font></p></td>
<td width="13%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1701</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sugar
(other than Khandsari sugar), required by the Central Government to
be sold under clause (f) of sub-section (2) of section 3 of the Essential
Commodities Act, 1955 (10 of 1955)</font></p></td>
<td width="11%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.21/-
per quintal</font></p></td>
</tr>
<tr>
<td width="7%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.</font></p></td>
<td width="13%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1701</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cane
jaggery</font></p></td>
<td width="11%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil</font></p></td>
</tr>
<tr>
<td width="7%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.</font></p></td>
<td width="13%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2401</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Un-manufactured
tobacco or tobacco refuse, other than bearing a brand name</font></p></td>
<td width="11%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil</font></p></td>
</tr>
<tr>
<td width="7%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.</font></p></td>
<td width="13%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2403
10 10</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hookah
or gudaku tobacco, other than bearing a brand name </font></p></td>
<td width="11%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil</font></p></td>
</tr>
<tr>
<td width="7%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.</font></p></td>
<td width="13%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2403
10 90</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Other
goods, other than bearing brand name </font></p></td>
<td width="11%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil</font></p></td>
</tr>
<tr>
<td width="7%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6
.</font></p></td>
<td width="13%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2403
99 90</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All
goods other than bearing a brand name (other than pan masala containing
tobacco)</font></p></td>
<td width="11%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil</font></p></td>
</tr>
</table>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At
the end of this table an explanation was given to define brand name for goods
against Sl. No. 2,3,4 and 5. Now if you look at item 2, it is cane jaggery and
no mention is made of brand name in that item and it is difficult to find branded
cane jaggery unless you take that mark that comes in the mould as <strong>brand
name</strong>. Obviously the definition should have been for sl. Nos 3,4,5 and
6. It is this correction that the Government has carried out by this corrigendum.
<br>
<br>
<strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2005/ecorrig20.htm">Corrigendum
in [F.No.4/3/2004-CX.1(pt.V)] dated 18.5.2005</a></strong>. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006633">Yet
another Corrigendum</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Now look at this :<br>
<br>
<strong>In the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 21/2005-Central Excise, dated the 13th May, 2005,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i) vide G.S.R. 294 (E), dated the 13th May, 2005, at page 4,-</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(i)
in line 7, for “other”, read “other than”;<br>
<br>
(ii) in line 8, for “other”, read “other than” .</strong><br>
<br>
Let me translate this. <strong>Notification No. 21/2005</strong> exempts certain
goods from NCCD as given in the table. The items in 3 and 4 read <b>other bearing</b>
– This should be <b>other than bearing. <br>
</b><br>
And this correction is now carried out. </font></p>
<div align="justify">
<table width=450 border=1 align="center" cellpadding=0 cellspacing=1>
<tr>
<td width="17%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.
No.</font></p></td>
<td width="14%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Heading
or sub-heading or tariff item</font></p></td>
<td width="66%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description
of goods</font></p></td>
</tr>
<tr>
<td width="17%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1)</font></p></td>
<td width="14%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2)</font></p></td>
<td width="66%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3)</font></p></td>
</tr>
<tr>
<td width="17%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.</font></p></td>
<td width="14%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2403
10 10</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hookah
or gudaku tobacco, other than bearing a brand name </font></p></td>
</tr>
<tr>
<td width="17%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.</font></p></td>
<td width="14%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2403
10 90</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Other
smoking tobacco, other than bearing brand name </font></p></td>
</tr>
<tr>
<td width="17%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.</font></p></td>
<td width="14%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2403
91 00</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Homogenised"
or "reconstituted" tobacco, <b>other bearing</b> a brand name
</font></p></td>
</tr>
<tr>
<td width="17%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.</font></p></td>
<td width="14%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2403
99 60</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tobacco
extracts and essence, <b>other bearing</b> a brand name </font></p></td>
</tr>
<tr>
<td width="17%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.</font></p></td>
<td width="14%" valign=top > <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2403
99 90</font></p></td>
<td width="66%" valign=top > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All
goods not bearing a brand name (other than pan masala containing tobacco)</font></p></td>
</tr>
</table>
</div>
<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/2005/ecorrig21.htm">Corrigendum
in [F.No.4/3/2004-CX.1(pt.V)] dated 18.5.2005</a></strong>. <br>
<br>
<font color="#006633"><strong>Uttaranchal- Himachal exemption</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Certain areas are added and certain deleted from the exemption Notification
No. 50/2003 dated 10.6.2003. <br>
<br>
<strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2005/etariff05_027.htm">Notification
No. 27/2005 dated 19.5.2005</a></strong> <br>
<br>
<font color="#006633"><strong>UPA Government’s Progress Report –
SSI </strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Several ministries have published their progress reports on their first year
in office under the UPA Government. What has the UPA done for SSIs?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<strong>What the UPA proclaimed:?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Extract from CMP of UPA released on 27-05-04.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<strong>Administrative Reforms: In the past few years, the most employment intensive
segments of small-scale industry have suffered extensively. They will be freed
from Inspector Raj.<br>
<br>
A major promotional package for the SSI sector will be announced soon.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<strong>What SSIs expected from the UPA?</strong><br>
<br>
• The exemption limit to be increased from Rs.1 Crore to Rs 1.5 Crores,
if not Rs 2 Crores to keep pace with escalation of product prices.<br>
<br>
• As long as they are within the exemption limit they should be exempt
from all Excise laws, Rules and Procedures.<br>
<br>
• No litigation should be started against them except in the case of proven
fraud resulting in prosecution.<br>
<br>
• As a one time amnesty all pending litigations other than for fraud to
be withdrawn and closed.( as they are due to procedural lapses & documentary
errors due do sheer ignorance)<br>
<br>
• To avoid such litigations in future a booklet of Dos & Don'ts to
be provided for SSI units and officers.<br>
<br>
• Periodic counseling unit wise to be done by lower levels officials to
make sure they are on track. <br>
<br>
<font color="#006633"><b>What they got from the UPA?</b></font><br>
<br>
1. The exemption limit remains at One Crore.<br>
<br>
2. Those availing full exemption to submit declaration on crossing Rs. 40 Lakhs
Instead of at Rs.90 lakhs prevailing. <br>
<br>
3. The partial exemption under Notification No. 9/2003 totally withdrawn.<br>
<br>
4. SSIs are continued to be persecuted with litigations even for technical errors
in documentation or minor procedural lapses due to ignorance.<br>
<br>
5. They are subject to all Laws, Rules & procedures even while within the
exemption limits that they can comply only at the cost of their petty business.<br>
<br>
6. They will be subject to the newly introduced draconian Sec 11 DDA so that
their peanut property of tables, chairs and cycles will be attached even before
adjudication.<br>
<br>
<strong>Yes. UPA has a lot to write home about after 1 year in office! </strong><br>
<br>
<font size="1">(from a strong champion of SSI units)</font><br>
<br>
<strong><font color="#FF6666">It’s a long weekend.</font></strong></font></p>
<p align="justify"><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tuesday with more DDT<br>
<br>
Have a Nice Day. <br>
<br>
Mail your comments to</font></strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
</font></strong><font color="#000000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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