TIOL-DDT 1576 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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 1576<br>
</font>
25.03.2011
<br>
Friday</strong> </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FM's Reply to Finance Bill - Notifications issued </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has yesterday issued 19 notifications mainly to put to effect the commitments made by the FM in his reply to the Finance Bill. A brief description of the Notifications: </font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sl. No. </strong></font></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brief subject</font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_20.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>20/2011-CX , dated 24-03-2011 </strong></font></a></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mobile handsets to attract 1% Excise Duty </font></p></td>
</tr>
<tr>
<td rowspan="5" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font>
</td>
<td rowspan="5" valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_21.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>21/2011-CX, dated 24-03-2011</strong> </font></a>
</td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 1/2011 – the 1% duty notification. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 33; Silicon wafers taken out of the 1% scheme.</font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 89; Articles other than jewellery</font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Explanation in relation to Gold deleted.</font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 100; Mobile handsets removed from the scheme – separately notified, as above. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 106; For the entry, “<font color="#006600"><strong>All goods (except Railway track machines falling under tariff item 8640 00 00)”</strong></font> <strong><font color="#663399">“All goods (except Railway track machines falling under tariff item 8604 00 00) ” shall be substituted.</font></strong> <font color="#FF6633"><strong>Do you notice the change? It was earlier 8640 00 00 and now it is 8604 00 00. A clever correction indeed.</strong></font></font></div></td>
</tr>
<tr>
<td rowspan="7" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.</font></td>
<td rowspan="7" valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_22.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>22/2011-CX, dated 24-03-2011</strong></font></a></td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 2/2011 – the 5% Notification. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 15; Silicon wafers taken out of the 5% scheme. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 21; <font color="#FF6633"><strong>The fertilizer confusion retained.</strong></font> “all goods, other than those which are clearly not to be used as fertilizers” to have 5% duty. <font color="#FF6633"><strong>Is fertilizer exempted? Why can't they write their notifications clearly?</strong></font></font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl.No. 49; Articles other than jewellery </font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Explanation in relation to Gold deleted. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No 55; deleted – goods required by a jute mill. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 60; Mobile handsets removed from the scheme. It now attracts a 1% duty by another notification. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 65; 8640 00 00 mistake corrected. </font></div></td>
</tr>
<tr>
<td rowspan="4" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. </font>
</td>
<td rowspan="4" valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_23.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">23/2011-CX, dated 24-03-2011 </font></strong></a>
</td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 3/2006 </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 10: Animal fats and oils – 151610 00 taken out of the exemption. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 13; Chapter 16 – Preparation of meat, fish etc, removed from the exempted list. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 17: Pasta (1902) removed from the exempted list.</font></div></td>
</tr>
<tr>
<td rowspan="3" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. </font>
</td>
<td rowspan="3" valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_24.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24/2011-CX , dated 24-03-2011 </font></strong></a>
</td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 4/2006. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 73A:<em> Colour <font color="#FF6633"><strong>positive</strong></font> unexposed cinematographic film in jumbo
rolls and colour negative unexposed cinematographic film in rolls of 400 feet and 1000 feet</em> exempted. Earlier the word <font color="#FF6633"><strong><em>positive</em></strong></font> was not there.</font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">New Sl. 74A inserted: Silicon Wafers exempted. They were taken out of the 1% and 5% duty notifications. </font></div></td>
</tr>
<tr>
<td rowspan="3" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. </font>
</td>
<td rowspan="3" valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_25.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">25/2011-CX, dated 24-03-2011 </font></strong></a>
</td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 5/2006 amended. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 21; primary gold converted from any form of gold was exempted. Now it is ‘from any form of gold other than gold ore, concentrate or dore bar' </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 23; Gold arising in the course of manufacture of copper or zinc was exempted. Now copper is deleted.</font></div></td>
</tr>
<tr>
<td rowspan="3" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. </font></td>
<td rowspan="3" valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_26.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26/2011-CX, dated 24-03-2011</font></strong></a></td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends notification No. 6/2006. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 12D: Parts of inkjet and LaserJet printers were to attract 5% duty. Now it is <em>Parts for the manufacture of printers falling under sub-heading 8443 32</em>. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No 91C: ‘Mega Power Project' redefined. </font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_27.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27/2011-CX, dated 24-03-2011 </font></strong></a></td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Waste, scrap and parings exempted in units manufacturing only 1% duty goods. </font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. </font></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_28.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">28/2011-CX, dated 24-03-2011 </font></strong></a></td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 8/2003 </font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">SSI exemption - “packing material” to include labels of all kinds.” </font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 </font></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_29.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29/2011-CX, dated 24-03-2011</font></strong></a></td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 63/1995. </font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 5: All goods manufactured in a mine are exempted. Now Coal, Lignite, Peat, Coke and Tar are now out of the purview of the exemption. </font></div></td>
</tr>
<tr>
<td rowspan="4" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. </font>
</td>
<td rowspan="4" valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_30.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">30/2011-CX, dated 24-03-2011 </font></strong></a>
</td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 30/2004. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 12: Carpets and other textile floor coverings are exempted. Now certain handmade carpets, jute and Coir carpets are excluded from the exemption. They had gone into the 1% duty. </font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 14: Impregnated, coated and laminated fabrics are exempted. Now Adhesive tapes of a width not exceeding 20 cm , are out of this exemption; that has also gone into the 1% duty.</font></div></td>
</tr>
<tr>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 16: Exemption to Unbranded textile articles - Laminated jute bags , out of this exemption as it had already gone into 1% duty.</font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. </font></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_31.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">31/2011-CX, dated 24-03-2011</font></strong></a></td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption to textile articles returned or brought back (<font color="#FF6633"><strong>what is the difference?</strong></font>) and cleared after reprocessing. </font></div></td>
</tr>
</table>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise (NT) </font></strong></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.</font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brief subject </font></strong></div></td>
</tr>
<tr>
<td rowspan="3" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p> <p></p> <p></p></td>
<td rowspan="3" valign="top"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/exnt11_08.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8/2011-Central Excise (N.T.) dated 24-03-2011 </font></strong></a></p> <p></p> <p></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise Rules amended: </font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Quarterly returns for the assessees availing Notification No.1/2011-C.E (1% DUTY) and not manufacturing any other goods. </font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In rule 12AA (job work in articles of jewellery) , in sub-rule (1), for the words and figures "jewellery falling under heading 7113" the words and figures "jewellery or other articles of precious metals falling under heading 7113 or 7114 as the case may be" are substituted. </font></p></td>
</tr>
<tr>
<td rowspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p> <p></p></td>
<td rowspan="2" valign="top"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/exnt11_09.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9/2011-Central Excise (N.T.) dated 24-03-2011 </font></strong></a></p> <p></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>CENVAT Credit</em> Rules amended: </font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the words and figures "jewellery falling under heading 7113" the words and figures "jewellery or other articles of precious metals falling under heading 7113 or 7114 as the case may be" are substituted. </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/exnt11_10.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10/2011-Central Excise (N.T.), dated 24-03-2011 </font></strong></a></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mines engaged in the production of Coal, Lignite, Peat, Coke and Tar, exempted from registration if they have centralized billing or accounting system in respect of such goods produced by different mines and opts for registering only the premises or office from where such centralized billing or accounting is done. </font></p></td>
</tr>
<tr>
<td rowspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td rowspan="2" valign="top"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/exnt11_11.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11/2011- Central Excise (N.T.), dated 24-03-2011 </font></strong></a></p> <p></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 49/2008-Central Excise NT – RSP Abatement. </font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">35 more items are added to the list of items covered under the RSP abatement scheme with a uniform abatement of 35% for all the new items. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>But here their numbering has gone for a toss. The existing notification has a list of 109 items. Now they have added 35 items starting with the Serial number 109. What happened to the existing Sl. Number 109?</strong></font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/exnt11_12.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12/2011-Central Excise (N.T.) dated 24-03-2011 </font></strong></a></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value of textile articles fixed at 45% of the retail sale price. For goods bearing the brand name of another person which are cleared in the course of sale by a manufacturer to such person and the retail sale price is not affixed on the goods, the transaction value of such goods shall be deemed to be the tariff value . An illustration is provided to explain this provision. </font></p></td>
</tr>
</table>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs</strong></font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sl. No.</strong></font></p></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No.</strong> </font></div></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Brief subject </strong></font></p></td>
</tr>
<tr>
<td rowspan="5" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.</font></td>
<td rowspan="5" valign="top"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_031.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">31/2011-Customs, dated 24-03-2011 </font></strong></a></p> <p><font size="2"><font size="2"><font size="2"></font></font></font></p> <p><font size="2"><font size="2"><font size="2"></font></font></font></p> <p><font size="2"><font size="2"><font size="2"></font></font></font></p> <p><font size="2"><font size="2"><font size="2"></font></font></font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 21/2002 – Cus. </font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2"><font size="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No 66A: New Sl No. inserted to exempt Coal having Swelling Index or Crucible Swelling Number of 1 and above and mean reflectance of above 0.60, for use in the manufacture of iron or steel using Corex, Finex or PCI technology </font><font size="2"></font></font></font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2"><font size="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 344: Motor Vehicles imported as a Completely Knocked Down (CKD) kit – two rates fixed.</font><font size="2"></font></font></font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2"><font size="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 345: Motor Cycles imported as a Completely Knocked Down (CKD) kit – two rates fixed. </font><font size="2"></font></font></font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2"><font size="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 614. New Sl No. inserted to exempt Parts for manufacture of printers falling under heading 8443 32.</font><font size="2"></font></font></font></p></td>
</tr>
<tr>
<td rowspan="4" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></p> <p></p> <p></p> <font size="2"></font></td>
<td rowspan="4" valign="top"><p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_032.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">32/2011-Customs, dated 24-03-2011 </font></strong></a></p> <p><font size="2"><font size="2"><font size="2"></font></font></font></p> <p><font size="2"><font size="2"><font size="2"></font></font></font></p> <font size="2"></font></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends Notification No. 20/2006 – Cus. – additional duty exemption. </font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. 77: Goods covered under Sl. No. 614 of Notification No. 21/2002 </font></font></font><font size="2"></font></font></font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2"><font size="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. Nos 83added to exempt some goods like floppy disc drive, hard disk drive, DVD drive, CD-ROM driveetc subject to condition No. 5 of Notification No. 21/2002-Cus.</font><font size="2"></font></font></font></p></td>
</tr>
<tr>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. Nos. 84 and 85 added to exempt all goods of Chapter 8901 without any conditions and goods of Chapter 8802 (except 8802 60 00) with specific condition prescribed under Notification No. 21/2002-Cus. </font></p></td>
</tr>
</table>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Direct Taxes - CAG's Findings</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG in its latest report to Parliament on Direct Taxes notes that:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Direct tax collections increased from Rs. 1,65,216 crore in 2005- 06 to Rs. 3,78,063 crore in 2009-10 at an average annual rate of growth of 32.2 per cent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In 2009-10, for every unit growth in GDP, direct taxes grew by 0.8 per cent only. Thus, the acceleration in tax collection was less sharper than that of GDP in 2009-10. The buoyancy improved as compared to 2008-09 when it was 0.5 per cent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The total number of direct tax assessees increased by 14.4 percent in 2009-10 to 340.9 lakh as compared to 297.91akh taxpayers in 2005-06. The growth path has been fluctuating as it registered a decline of 3 per cent in 2008-09, with the decline being sharper for corporate assessees. However, in 2009-10 there has been a marginal increase of 4 per cent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ 82.8 per cent of the collections came in by way of voluntary compliance in 2009-10. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The pendency of scrutiny assessment cases increased from 45.7 per cent in 2005-06 to 50.7 per cent in 2009-10. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Cost of collection rose to 0.73 per cent in 2009-10 from 0.55 per cent in 2007-08. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Internal Audit completed 69.8 per cent of the targeted audits. Only 12.6 per cent of major findings raised by Internal Audit were acted upon by the assessing officers in 2009-10. Departmental response to Internal Audit was clearly inadequate. </font></p>
</blockquote>
<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">Central Excise</font></strong> </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">When a product has not been manufactured by an assessee, duty liability does not arise as per section 3 of Central Excise Act, 1944 - issue of classification of impugned spare parts does not arise at all – Revenue appeal rejected: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> brief facts of the case are that respondent assessee is a manufacturer of machinery items. During the course of manufacture, they purchased certain spare parts which were required to be supplied along with machines. These spare parts were bought by the respondent from the market and no credit of duty was taken by them and the same were cleared along with the machinery after making the payment of excise duty. Incidentally, the assessable value also included the cost of spare parts too.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether a premeditated transaction which earns tax-free income and enables assessee to square off profits against losses is permissible if same is conducted within four corners of law - YES, says High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the HC is - Whether a premeditated transaction by virtue of which an assessee earns tax free income and squares off profits with losses is permissible if it is within the four corners of law. YES is the High Court's verdict. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods destroyed by fire inSEZ- Destruction took place in a deemed Foreign Territory - No Customs Duty Payable: – CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SEZ</strong>is a fiction created and in that fiction if there is contravention of provisions ofSEZRules, the fiction itself provides for taking action. Once the action to theSEZunits or the loss of goods by fire is not covered by Rule 8 ofSEZRules 2003, the deemed fiction ofSEZbeing a foreign territory comes into picture. As already considered earlier, duty becomes payable only when the goods are cleared intoDTAor failure in terms of provisions of Rule 8 ofSEZRules 2003. Once the event is not covered by these provisions at all, we have to hold that goods are still in foreign territory which is the status ofSEZand it is a deemed fictional status. As observed by Hon'ble Supreme Court, the fiction has to be given full effect to unless there is a valid reason supported by law to do otherwise. Therefore the goods which have been destroyed have to be held to have been destroyed in the deemed foreign territory and if that is so no customs duty can be demanded. </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 Weekend. </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"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
</body>
</html>