TIOL-DDT 1558 · 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 1558</font><font color="#663399"><br />
</font>28.02.2011<br />
Monday </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Condition
5D occurs twice in Notification No. 21/2002 - Cus - Please
Change it Before you Amend the Notification</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> No 21/2002 - Cus
dated 01.03.2002, is an omnibus exemption notification covering over 600
items, over 100 conditions and 50 lists. This is one of the most amended
notifications. It is really difficult to manage such a big notification,
especially updating it and often there are duplications and confusion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now in this notification, in the list of conditions, Condition 5D occurs twice.
How this happened is an interesting story.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By
Notification No. 80/2010 – Cus
dated 10.08.2010, the Government inserted a Condition 5C after Condition
5B. But there was already a Condition 5C after Condition 5B; So from 10.08.2010,
the notification had Condition 5C twice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was rectified by Corrigendum dated 20.08.2010, whereby the second Condition
5C was changed to 5D.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Everything
was fine till January 2011, when by Notification No. 2/2011 dated 08.01.2011,
the Government inserted three more conditions, 5D, 5E and 5F – but
they forgot that 5D was already there. So now we have Condition 5D occurring
twice! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A senior departmental officer wanted us to clarify which 5D was valid! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 21/2002 is sure to be amended today – Board should
issue another corrigendum before that amendment takes force.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No Drawback on Imported Goods Exported to Nepal</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Notification No. 208/1977-Customs, dated the 1st October, 1977, drawback
of import duty shall not be allowed in respect of goods exported to Burma,
Nepal, Bhutan etc.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Because the Central Government is of the opinion that the goods, if exported
under claim for drawback, are likely to be smuggled back into India!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has amended this 24 year old notification to include a
proviso;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Provided
that no drawback shall be allowed if the goods exported were imported into
India from third countries and exported to Nepal.”</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_013.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 13/2011 - Cus.,(NT), Dated: February 24, 2011</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ATVP - Exemption to Imports - Resurrection
Again</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong>
per Sl No. 13 of the table in Notification No. 39/1996 – Cus dated
23.07.1996, Machinery, equipment, instruments, fittings, devices, scientific
apparatus, components, spares, tools, accessories, computer hardware, computer
software, technical know-how (in the form of documents and drawings in the
printed media), castings, forgings, pipings, tubings, raw materials and consumables
required for the purpose of Advanced Technology Vessels Programme (ATVP) of
the Ministry of Defence, were exempted.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This notification was to be valid till 01.01.2011 and somebody was sleeping
and the notification could not be amended before 01.01.2011, which has been
done now. Now the validity is extended till 2016, but what happens during the
period 01.01.2011 to 23.02.2011? Litigation?</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 12/2011 - Cus., Dated: February 24, 2011</font></strong></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Budget – The
Great Indian Hope Trick</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WILL</strong> the Budget be one of HOPE, DOPE, or ROPE? India is the land of rope tricks
and nirvana and for most of us, the budget is the Great Indian Hope Trick.
So much is going to be talked about and written about all that the FM is going
to read from his budget today.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is so important about the budget when customs and excise duties can be
increased or decreased by the government whenever they want to and they have
been doing it whenever they want to?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Has
the budget lost its relevance? Is it serving only the media? May be the government
can earn some pretty revenue by having some advertising slots for the budget.
Even the FM can announce, “I will now take a short commercial
break, but please don’t go away; you may be taxed soon”. Can government
make some money by selling the rights for the FM’s Budget telecast? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
whole of today you will find the “experts” in the field analyze
the budget from all angles without getting into any specific issues. Inflation,
balance of payments, foreign exchange reserves, GDP, deficit – all these
issues will be discussed and dissected, but nobody will tell you what the budget
is all about, but what the fine print implies, what the notifications mean.
And this is exactly what <strong>TIOL</strong> has for you. We will tell you what the budget
really means, we will tell you what the great analysts fail to tell you. We
will tell you what the fine print in the budget means and for that fine print,
be with us for today and the next few days.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yam
Raj (death) and kar Raj (tax) are two certainties of life – while
Yam Raj comes only once in our life, Kar Raj is with us every day – between
the two, there is an annual budget <strong><font color="#FF0000">– happy
budget!</font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MY
WIFE’S
BUDGET SPEECH</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> was an article I wrote for the Indian Express some 15 years ago and a
revised version was carried in TIOL in 2001. Please have a look at this speech
before you listen to the FM. <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12143" target="_blank">Click here</a></strong> for this Budget Speech. Please remember
it was written more than ten years ago.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666">Until Tomorrow with more <strong>DDT</strong></font></font></p>
<p align="justify"><font color="#FF6666"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Time. </font></font></p>
<p align="justify"><font color="#FF6666"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font></font><font color="#FF6633"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></font><strong><a href="mailto:vijaywrite@taxindiaonline.com"><font face="Verdana, Arial, Helvetica, sans-serif"><font size="2">vijaywrite@taxindiaonline.com </font></font></a></strong></p>
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