TIOL-DDT 1339 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1339</font> <br> 16.04.2010 <br> Friday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No writ petition in High Court against stay order of Tribunal - Supreme Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN</strong> the Tribunal orders a huge pre-deposit, it is common for the assessees to knock at the doors of the High Courts to seek some respite. Normally the High Courts don't interfere against interlocutory orders, but once in a way, they do. See </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2005/2005-TIOL-181-HC-AP-CX.htm" target="_blank">2005-TIOL-181-HC-HYD -CX</a></strong></em>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a case decided this week, the Supreme Court held that the High Court should not entertain writ petitions against interlocutory orders of the Tribunal, as the statute provides for appeal - to the High Court. Though this was rendered in the context of FEMA, it may apply to Customs and Excise. We bring you the judgement today.</font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10721">See Breaking News</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Jarda Scented Tobacco included in Compounded Levy Scheme </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has notified Jarda scented Tobacco falling under Chapter 2403 99 30, manufactured with the aid of packing machines and packed in pouches as notified goods for the purpose of levy and collection of excise duty in terms of Section 3A of Central Excise Act. This product will be subject to the provisions of Section 3A and the relevant notifications issued there under from April 13, 2010. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For bringing Jarda scented tobacco into Section 3A net why did the Government choose to issue a separate notification? Instead they could have amended <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/exnt10_10.htm" target="_blank">Notification 10/2010-CE(NT) dated February 27, 2010</a></strong></em> for this purpose. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/exnt10_17.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 17/2010-CX.(N.T.), Dated: April 13, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 Amended </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has amended The Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 issued vide <strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/exnt10_11.htm" target="_blank">Notification No. 11/2010-CE(NT) dated February 27, 2010</a></em></strong> to include references to ‘Jarda Scented Tobacco falling under Chapter 2403 99 30 and the effective date of levy for this product. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further an amendment was made to substitute the existing Table providing for details of RSP and production capacity per packing machine per month with a new Table. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Also a proviso is inserted in Rule 6(5) and Rule 13(1) thereof to stipulate that in case it is not feasible to remove such packing machine out of the factory premises, it shall be uninstalled and sealed by the Superintendent of Central Excise in such a manner that it cannot be operated. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Rule 8, the first proviso is substituted by the following proviso: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Provided that where a manufacturer uses an operating machine to produce pouches of different retail sale prices during a month, he shall be liable to pay the duty applicable to the pouch bearing the highest retail sale price for the whole month”. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/exnt10_18.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 18/2010-CX.(N.T.), Dated: April 13, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Duty Rates amended for Tobacco products under Compounded Levy Scheme </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has amended the excise duty rates on the tobacco products brought under the compounded levy scheme in terms of Section 3A(3) of the Central Excise Act by substituting Table 1 under <strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/etariff10_16.htm" target="_blank">Notification No. 16/2010-CE dated February 27, 2010</a></em></strong>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In addition to this the Government also expanded the scheme to include ‘jarda scented tobacco falling under Chapter 2403 99 30' of the Central Excise Tariff Act. An explanation was also inserted to define the tobacco product ‘filter khaini'. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/etariff10_19.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 19/2010-Cx, Dated: April 13, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-dumping Duty on Polytetrafluoroethylene Extended </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</strong> on the recommendations of the Designated Authority's mid term review findings, the Central Government has decided to extend anti-dumping duty on ‘ Polytetrafluoroethylene(PTFE) ', falling under Chapter 3904 61 00 of the First Schedule to the Customs Tariff Act, 1975 at the specified rates. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goods originating in or exported from People's Republic of China into India are subjected to this ADD. It is effective upto and inclusive of October 16, 2010 unless this notification is revoked earlier and the said duty is payable in Indian Currency. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_042.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 42/2010-Cus, Dated: April 5, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Anti-dumping Duty imposed on Acetone </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</strong> on the recommendations of the Designated Authority's preliminary findings, the Central Government has decided to impose provisional anti-dumping duty on ‘ acetone ', falling under Chapter 2914 11 00 of the First Schedule to the Customs Tariff Act, 1975 at the specified rates. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goods originating in or exported from Thailand and Japan are subjected to this provisional ADD. It is effective upto and inclusive of October 8, 2010 and is payable in Indian Currency. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hitherto import of acetone from European Union, Chinese Taipei, Singapore, South Africa, United States of America and Republic of Korea were already subjected to definitive ADD (please refer to <strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_033.htm" target="_blank">Notifications 33/2008-Cus, dated March 11</a></em></strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_033.htm">, <em><strong>2008</strong></em></a><em> and<strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_075.htm" target="_blank">75/2008-Cus, dated June 10, 2008</a></strong></em>). </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_045.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 45/2010-Cus, Dated: April 9, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Definitive Anti-dumping Duty Extended on narrow woven fabrics having pile weave made up of manmade fibres, used as fastening tape </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</strong> on the recommendations of the Designated Authority, the Central Government has decided to extend definitive anti-dumping duty on ‘ narrow woven fabrics having pile weave made up of manmade fibres, used as a fastening tape (also known as hook and look tape fasteners or Velcro tapes or fastening tape)', falling under heading 5806 of the First Schedule to the Customs Tariff Act, 1975 at the specified rates. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goods originating in or exported from People's Republic of China and Chinese Taipei are subjected to this definitive ADD and it is payable in Indian Currency. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of this <strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_076.htm" target="_blank">Notification No. 76/2005-Cus dated July 25, 2005</a></em></strong> is extended to be effective upto and inclusive of February 13, 2011. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_046.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 46/2010-Cus, Dated: April 12, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Definitive Anti-Dumping Duty on nylon filament yarn extended for imports from Malaysia </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</strong> on the recommendations of the Designated Authority's mid term review final findings, the Central Government has decided to extend anti-dumping duty on ‘nylon filament yarn', falling under Chapter 54 of the First Schedule to the Customs Tariff Act, 1975 and originating in or exported from Malaysia at the specified rates. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this regard, <strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_085.htm" target="_blank">Notification 85/2006-Cus dated August 29, 2006</a></em></strong> was amended to this effect to substitute S.Nos. 7 and 8 of the Table with S.Nos. 7, 7A, 8 and 8A. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unfortunately, the notification does not specify the date upto which the ADD would be applicable and effective. In terms of Section 9A(5), after a review, the Central Government can extend the levy of ADD for a further period of five years whereas the original levy under Notification 85/2006-Cus would expire on August 28, 2011.</font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_047.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 47/2010-Cus, Dated: April 12, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Raw Cotton subjected to Export Duty </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> yesterday's <strong>DDT</strong>, we said that raw cotton was subjected to export duty of Rs. 2500 per tonne with effect from April 9, 2010 and unfortunately, the Government decided to hide the notification from public domain. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We also challenged that we would apologize if we were incorrect. Fortunately, truth cannot be hidden under the carpet for long and the notification finally tumbled out of the Board's closet into public domain. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As suggested by us the Central Government withdrew exemption from levy of export duty on raw cotton. In this regard, the <em>Notification 100/89-Cus</em> is amended to delete S.Nos. 14 and 15 which refer to ‘Raw Cotton' and ‘Cotton waste, all sorts'. With effect from April 9, 2010, raw cotton will be subjected to a duty of Rs. 2500 per tonne. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_043.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 43/2010-Cus., Dated: April 9, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export Duty on Cotton waste reduced </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has however decided to reduce the export duty on cotton waste of all sorts and falling under Chapter 17 of the Customs Tariff Act to 3%. The Second Schedule to the Customs Tariff Act, 1975 prescribes a tariff rate of 40% on export of cotton waste of all sorts. Now this has been brought down to 3% ad valorem . </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_044.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 44/2010-Cus., Dated: April 9, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Institute of Cost and Works Accountants of India Signs MOU With Central Board of Excise and Customs </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Cost Accountant members of the Institute of Cost and Works Accountants of India ( ICWAI ) will now be able to set up ACES Certified Filing Centres (CFCs) across the country. A Memorandum of Understanding (MOU) to this effect has been signed between ICWAI and Central Board of Excise & Customs (CBEC). These CFCs would be set up and operated by the Members of ICWAI , who have valid certificate of practice issued by the Institute. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> This initiative was taken up by ICWAI to provide services to the taxpayers who may not have requisite IT infrastructure/ resources to use Automation of Central Excise and Service (ACES). These services will also be beneficial to the industry as they will end the necessity to visit the office of CBEC for Registration, Returns, etc. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While reporting the MOU between Institute of Chartered Accountants of India (ICAI) and CBEC, we had in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10680" target="_blank"><em>DDT 1332 - 06.04.2010</em></a></strong>, questioned, “And why are CWAs and CSs excluded from this scheme? Let there be equal opportunity for professionals like CAs , CWAs and CSs .” </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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"> – Monday's cases</font></strong></font></strong></font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"><strong><font color="#663399">Income Tax </font></strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income tax – Search – Assessee deals in shares - CD-ROMs found – Merely by filing confirmation for 98% of clients, it cannot be said that assessee discharged his burden of proof - if balance transactions are not confirmed, they are to be treated as undisclosed income: ITAT Special Bench </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee, a Member of the Stock Exchange, Bombay (BSE), was engaged in the business of broking in shares and securities and proprietary trading. A search and seizure operation u/s.132 was carried out on the premises pertaining to M/s Ketan Parekh Group on 23.3.2001. During the course of search, 12 CD-ROM from the computer and server were found on the premises which contained accounting and trading data of Triumph Securities Ltd (TSL) and Triumph International Finance (I) Ltd (TIFIL) for FYs 1999-2000 & 2000-2001. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Demand for period post 12.05.2000 issued in May, 2001 is legally proper as it is within normal period of limitation under section 11A(1) as amended by Finance Act, 2000 – Commissioner(A) proceeded on wrong premise that normal period is six months – Order set aside and Revenue appeal allowed: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the present case, a show-cause notice was issued on 8.5.2001 to the respondent for recovery of differential duty of Rs.1,62,241/- for the period 12.5.2000 to 31.3.2001. The original authority confirmed the entire demand of duty against the party and imposed on them a penalty of Rs.5000/-. In an appeal filed by the assessee, the Commissioner(Appeals) held that the assessee had not suppressed or mis-stated any facts and, therefore, the extended period of limitation was not invokable against them. He, therefore, granted partial relief to the assessee and ordered for quantification of the demand for the six months “normal” period u/s 11A(1) of the CEA, 1944. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Storage System used to store raw materials is an eligible input - CENVAT credit admissible – Revenue appeal for Rs.12,934/- rejected: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RULE</strong> 2(a)(A) of the CENVAT Credit Rules, 2004 defines "capital goods" as including “Storage Tank” used in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or for providing output service. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee had taken CENVAT credit of Rs.12,934/- on ‘Storage System'. The department said this was wrong because ‘storage system' is not a ‘storage tank' and it is only a ‘storage tank' on which credit is available. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements</font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p> <p align="justify"><font color="#FF6666" 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> </body> </html>