TIOL-DDT 1436 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1436 </font><br>
01.09.2010 <br>
Wednesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please
update this Notification ... </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Netizen asked us who the proper officer is to seize the goods under Central Excise. Actually, the Central Excise Act, 1944 does not contain any direct provisions for search and seizure, but by virtue of Section 12 of the Central Excise Act, 1944 read with Notification No 68/1963-Central Excise, Dated May 4, 1963,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The provisions of sub-section (1) of Section 105, Section 110, Section 115 [excluding clauses (a) and (e) of sub-section (1)] clause (a) of Section 118, Sections 119, 120, 121 and 124, clause (b) and sub-clause (ii) of clause (c) of sub-section (1) of Section 142 and 150 of the Customs Act, 1962, (52 of 1962), relating to matters specified therein, shall be applicable in regard to like matters in respect of the duties imposed by Section 3 of the first mentioned Act, subject to the following modifications and alterations which the Central Government considers necessary and desirable to adapt those provisions to the circumstances, namely :- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. In the said provisions - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) references to "this Act" shall be deemed to be references to "the Central Excise Act, 1944 (1 of 1944) and the Central Excise Rules, 1944 "; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) references to "Assistant Commissioner of Customs" shall be deemed to be references to "Assistant Commissioner of Central Excise"; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) references to "officer of customs" shall be deemed to be references to " Central Excise Officer not inferior in rank to a Sub-inspector "; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) references to "proper officer" shall be deemed to be references to "proper officer as defined in clause (xi) of Rule 2 of the Central Excise Rules, 1944 "; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) references to "smuggled goods" shall be deemed to be references to "excisable goods which have been removed in contravention of any of the provisions of the Central Excise Rules, 1944 ". </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In the proviso to sub-section (2) of the said Section 110, - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the reference to "Commissioner of Customs" shall be deemed to be a reference to "Commissioner" as defined in clause (ii) of Rule 2 of the Central Excise Rules,1944. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In the said Section 115 [excluding clauses (n) and (e) of sub-section (1)] - <br>
(a) in sub-section (1), - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) in clause (c), the reference to "Section 106" shall be deemed to be a reference to " Rule 200 of the Central Excise Rules, 1944 "; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) in clause (d), the reference to "claim for drawback" shall be deemed to be a reference to "claim for rebate"; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) in sub-section (2), - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) the reference to "smuggling" shall be deemed to be a reference to "removal of excisable goods in contravention of any of the provisions of the Central Excise Rules, 1944 "; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) the reference to "the rules" shall be deemed to be a reference to the " Central Excise Rules, 1944 "; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) in the proviso, the reference to "goods which are sought to be smuggled" shall be deemed to be a reference to "goods which are sought to be removed in contravention of any of the provisions of the Central Excise Rules, 1944 ". </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. In the said clause (a) of Section 118, - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the reference to "goods imported" shall be deemed to be a reference to excisable goods in respect of which any of the provisions of the Central Excise rules, 1944, has been contravened". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. In the said Section 124, - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the reference to "under this Chapter" shall be deemed to be a reference to under any of the provisions of the Central Excise Rules, 1944 ". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. In clause (e) of sub-section (2) of Section 150, the reference to "any other law relating to customs" shall be deemed to be a reference to "any other law relating central duties of excise.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per this Notification, only proper officer as defined under clause (xi) of Rule 2 of the Central Excise Rules, 1944 is empowered to seize the goods, but these rules are non-existent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In 2001, the Central Excise Rule 1944 were rescinded, but this notification still refers to the old Central Excise rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Fortunately, Rules 23 and 24 of the Central Excise Rules 2002 take care of the situation which authorises any Central Excise Officer to search any conveyance or seize the goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 23. Power to stop and search</strong>.- <em>Any Central Excise Officer, may search any conveyance carrying excisable goods in respect of which he has reason to believe that the goods are being carried with the intention of evading duty. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 24. Power to detain or seize goods</strong> <em>If a Central Excise Officer, has reason to believe that any goods, which are liable to excise duty but no duty has been paid thereon or the said goods were removed with the intention of evading the duty payable thereon, the Central Excise Officer may detain or seize such goods. </em></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Acrylic Fibre - Another Resurrection</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> is back to its sleeping mode. It has been quite some time that there was no resurrection of dead notifications – somebody was keeping track of notifications and extending them before they were dead.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty was imposed on Acrylic Fibre from Japan by Notification No. 114/2004 dated 21.12.2004, which would have expired on 20.12.2009, but was extended till 20.06.2010 by Notification No. 129/2009 dated 02.12.2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty was imposed on Acrylic Fibre from Belarus by Notification No. 117/2004 dated 30.12.2004, which would have expired on 29.12.2009, but was extended till 29.06.2010 by Notification No. 134/2009 dated 09.12.2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thus both the Notifications died latest by 29.06.2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now they have resurrected and imposed anti dumping duty on the products originating in or exported from Japan and Belarus for a period of five years from 30th August 2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Was there no dumping of the product during the period from 30 th June to 29 th August 2010? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you sleep, you get punished; if they sleep, you get punished! </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_085.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 85 /2010-Customs Dated August 30 2010 </font></strong></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value of Brass Scrap increased </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </strong> has increased the Tariff Value of Brass Scrap from US Dollars 3818 to 3924 per MT. There is no change in the tariff value of other items. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_078.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 78/2010-CUSTOMS (N.T.) Dated: August 31, 2010 </font></strong></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Race for CBEC Chairman's Seat – The <font color="#FF0000">beguile</font> is Set </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBEC
is not able to fill up the large number of vacant posts from AC to CC, much
to the agony and anguish of the field level officers, many of whom are afraid
that they will have to retire without seeing that coveted promotion and are
using the choicest expletives to curse the powers that be. But what is of
utmost concern to some of the topmost Revenue Officers of the Country is
the post of Chairman of CBEC which is falling vacant shortly. It is not as
if the senior-most Member will become the Chairman – even the junior most
can entertain ambition and convert that ambition into reality – if he knows
what to do. The first step is to destroy the seniors. If you want to climb
up the ladder, you will have to push down somebody ahead of you. And everything
is fair in promotions and postings. It seems all kinds of complaints are
reaching the FM and they are being routinely investigated by the Revenue
Administration. Complaints on what a particular Member did or did not do
while he was a Commissioner or CC should not be of any concern now, as he
had crossed all that and had become a Member. Only his actions or inactions
as a Member should be open for scrutiny – it is unimaginable that somebody
is good enough to be a Member but not good enough to be the Chairman. With
frivolous complaints pouring in, Members have ample opportunity of destroying
each other. It is MAD [Mutually Assured Destruction]. Those waiting in the
field for that elusive promotion should forget about it – for their leaders
in the Board are themselves worried about their own promotions than that
of their staff. Maybe there should be a post of Deputy Chairman, who should
automatically become Chairman and on becoming Chairman should continue to
hold office for three years. Anyway, the most active lobby at present appears
to be that of the Member who has been carrying multiple charges and is in
a positiion to create a large contingent of <em>'kar sevaks'</em> among the
IRS officers. Whether he becomes Chairman or not, officers in the filed formations
have been made to believe that he is the 'Iron Man' and the 'Man Friday'
for CBEC who has also apparently won the support of 'Iron Ladies' in North
Block!</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"> – Friday's cases</font></strong></font></strong></font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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">Central Excise</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Free bicycles of a model other than that supplied to dealer for sale cannot be considered as Trade discount but as advertising or sales promotion expenses undertaken by appellants to enrich value of goods – Duty to be paid on such bicycles offered free of charge to dealers – Appeal dismissed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE appellants are manufacturers of bicycles of different models and parts thereof. During the visit of the officers of the Department to the appellants', it was revealed that the appellants had been supplying to their buyers a free bicycle for lifting the specified quantity of bicycles manufactured by the appellants. However, no excise duty was paid on such bicycles offered free of charge to the dealers. It was also revealed that the bicycles offered free of charge under the scheme were of a model other than those which were supplied to the dealers for sale to the customers. </font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sec 32(i)(ii) - 'Brand' of a company is part of registered Trade Mark - depreciation admissible: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THERE are two issues involved in the instant case. First, whether the term “Brand” falls within the ambit of section 32(1)(ii) of the Act so as to be eligible for depreciation, and the second one is whether the transferee of the business is eligible to claim deduction in respect of the liability taken over from the transferor for which the payment was subsequently made by the transferee. </font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Short Landing - No short landing established - no penalty – In case of short landing penalty to be reworked: High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The impugned order to the extent it imposes penalty for short landing of the bags of Chinese Polished Beans, is quashed and set aside. In this view of the matter, the quantum of penalty will have to be redetermined. Penalty can only be imposed to the extent of short landing of one piece of Seamless Steel Pipe, the quantum of which the adjudicating authority will have to redetermine. For this limited purpose, proceedings are remitted back to the adjudicating authority to redetermine the quantum of penalty <em>vis-a-vis</em> short landing of one piece of Seamless Steel Pipe. </font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tomorrow is a Holiday</strong></font></p>
<p align="left"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Friday for the judgements</font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Friday with more <strong>DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day</font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to </font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></strong></p>
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