Behind the Notification?
AFTER the amending notifications 9/2010 and 19/2010 – CENT were issued, a concerned citizen with the name Mahesh Kumar sent a mail to the President of India with copies to the Prime Minister, Sonia Gandhi, Rahul Gandhi, Revenue Secretary and a large number of politicians and publications including BBC and TIOL.
He complained, “In the Budget 2010-11 the parts ,components and assemblies of Automobiles appearing in Notification No. 49/2008-CE(N.T.) dated 24.12.2008 has been replaced by parts ,components and assemblies of Vehicles vide Notification No 9/2010 CE(NT) 27-02-2010. It is felt that the change has been made in the Notification by specifying the vehicles of Chapter Heading 87 with the sole intention to provide undue benefit to construction equipment vehicle manufacturers Viz. JCB India Ltd, L&T - CASE EQUIPMENT PRIVATE LIMITED, Volvo India Limited, Telco Construction Equipment Company Limited (TELCON).,EScort and others manufacturing the vehicles classified under Chapter 84 of the Central Excise Tariff Act 5 of 1986 and would result in a loss to the Govt. Exchequer estimated to the tune of 1500 crore rupees(APX.) which by any stretch of imagination is not a meagre amount.
Now after the 2011 amendments another citizen by name Yogendra Pali has written to the President of India with a copy to us stating,
Cases involving huge amount of revenue have been registered against the parties mentioned hereunder and show cause notices for recovery of Govt revenue have been issued in respect of parts components and assemblies of automobiles.
1) M/s Terex Vectra Equipment (P) Ltd., Plot No. 22, Udyog Vihar, Greater Noida, P.O.-Surajpur, Gautam Budha Nagar (U.P.)-201306 case registered by THE COMMISSIONER,CUSTOMS, CENTRAL EXCISE & SERVICE TAX,C-56/42, SECTOR-62, NOIDA on dated 06/11/2009
2)Telco Construction Equipment Co. Ltd., SPARE PARTS DEPARTMENT ,Telcon General Office, C/o Telcon Premises, P O: Telco GM”s Post office , Admistrative Block-1 Jamshedpur-831010 , case registered by DGCEI, kolkata on dt 19/01/2010
3) JCB case registered by DGCEI PUNE on dt 08.07.2009
4) Action Construction Equipment Ltd case registered by THE COMMISSIONER OF CENTRAL EXCISE DELHI –IV,NEW CGO COMPLEX, NH-IV, FARIDABAD on dt on 01.12.2009
5) M/s L & T Case Equipments Pvt Ltd , - case registered BY THE COMMISSIONER, CUSTOMS, CENTRAL EXCISE & SERVICE. Tax, Indore on dt-17.12.2009
He has also enclosed copies of the above Show Cause Notices and further says,
The retrospective amendment in the third schedule have been made effective from 27-02-2010 and 29-04-2010 with the sole motive to extend undue benefit to the parties/manufacturers mentioned above to escape the duty liability. The mischief done needs to be addressed immediately and the retrospective amendment must be given effect from 01-06-2006.
Any way these complaints have no meaning now as there was no real amendment and maybe we will have to wait for another year for that retrospective amendment.