Board tries to solve some of the problems arising out of withdrawal of warehousing scheme for petroleum products

By Vijay Kumar

The Government had withdrawn warehousing facilities for petroleum products by a weekend notification on 4th September 2004 and created several problems for the oil sector by circular No. 796/2004. The circular wanted the duty on stocks held in the warehouses to be paid immediately on 6th September. Taxindiaonline had then pointed out that legally they can pay that duty by the 5th of October 2004 and it seems that nobody paid the duty on 6th September. This is what happens when Board goes round giving patently illegal directions. Now after three months, wisdom has dawned on the portals of the mighty Board and it clarifies that duty can indeed be paid by 5th October 2004. May be there are several Show Cause Notices pending against the oil companies for not paying the duty on 6th September as the Board wanted. Though late, the nation is grateful to the Board for coming out with a clarification that would perhaps put an end to some unwanted litigation. Regarding end-use exemptions, Board clarifies that if the refineries do not know the end users at the time of clearances from the refinery, they should go for provisional assessment. – See Board circular 804/1/2004-CX, Dated : January, 4, 2005

Unemployed Commissioner finally gets work : It seems Chanakya first found a king and then searched for a kingdom to put the king in. Board being related to Chanakya, first posted a Commissioner and then went on to search for a commissionerate for him! In the recent promotion to the cadre of Commissioners, the CBEC posted an officer as Commissioner (Appeals) III, Hyderabad. There was a small hitch. There is no post of Commissioner (Appeals) III, at Hyderabad. So the promoted officer was holding a non existent post. It took the Board more than two months to notify a post for the officer. Finally Hyderabad III Commissioner (Appeals) is now officially notified – Notification No. 1/2005 – CENT dated 4.1.2005.