TIOL-DDT 279 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
279</font><br>
09 01 2006<br>
Monday</b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>DEPB
– Good news for importers – Bangalore Customs gives the much needed
clarification</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
DEPB scheme expired on 30th September 2005. <b>DDT</b> had reported on <b>6.10.2005</b>,
<b>''DEPB extended till December but there is a gap</b>''<br>
<br>
Notification No. 96/2004-Cus., dated 17-9-2004 exempts goods imported under
the DEPB scheme or rather exempted., as the notification originally expired
on 31st March 2005, but was by Notification No. 31/2005-Cus., dated 30-3-2005
extended till 30th September 2005. As we reported earlier, 30th September 2005
went by without any extension. But things cannot be left at that and everyone
knew that the scheme had to be extended. We were flooded with calls and mails
enquiring about the fate of the scheme. As an agony aunt, we comforted people
that the scheme was bound to be extended – it was only a matter of time;
they must have forgotten, the officer concerned must have been on leave or trying
for a new posting. And further 30th September was a weekend and may be the babus
were in a rush to go. The earliest opportunity they had, to realise the lapse
was Monday 3rd October and by that time the notification had lapsed. <b>Resurrection
is not the option always.</b> So a new notification had to be issued and that
would take a couple of days and so was born Notification No. 89/2005-Cus., dated:
October 4, 2005. The notification is dated 4th October but it was not made available
till the evening of 5th October. These are minor infirmities of governance.
The taxed should learn to live with the audacious actions of the taxmen. You
may wonder why the government could not extend the scheme well before 30th September.
But governance is a serious business and these things do happen. <b>The new
notification is an identical copy of the dead notification, but it raises an
important issue. What happens to the imports between 1st October and 3rd October
2005, when there was no notification?</b> More clarifications or litigation
to follow!.<br>
<br>
On <b>7.10.2005, DDT</b> observed,</font></p>
<table width="100%" border="1" cellpadding="5" cellspacing="0" bordercolor="#000000">
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>DEPB –
Department’s Export Policy Bungling?</b><br>
<br>
The extension of DEPB benefits by the new notification No. 89/2005 has created
more problems than it solved. Last minute patch up is always bound to cause
confusion as this hurriedly issued notification after waiting for too long
has proved. Please see our special story today for implications of the new
notification.</font></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
And our <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=2731">special
story</a> on the same day had suggested,<br>
<br>
++ Give a clarification that for all the Scrips obtained on the basis of past
exports should be permitted for benefit under DEPB till the expiry
period of the Scrip.<br>
<br>
The Board seems to be shy of giving clarifications for the bungling it has caused
but we are happy to report that at least one Commissioner has clarified the
issue obviously under instructions from the Board. The Bangalore Customs Commissioner
has in his Public Notice No. 176/2005 dated 30.12.2005 has clarified that<br>
<br>
Pending further examination
of the mater, it is clarified that exports made during 1st October to 3rd October,
2005 shall be eligible for the benefit of the DEPB Scheme and that DEPB credit
on imports against Bills of Entry filed during this period shall be allowed
to be utilised on a provisional basis. It is also clarified that DEPB
benefit shall be extended to imported goods under Notification No. 89/2005-
Cus-dated 4.10.2005 even if the DEPB license contains an endorsement that
the same is issued under notification no. 96/2004 – Cus dated 17.9.2004
This would be subject to the condition that the DEPB licence is valid to cover
the imported goods and all conditions of notification No.89/2005 Cus dated 4.10.2005
are fulfilled. It is further clarified that licences issued under Notification
No. 34/97 -Cus dated 1.4.1997 and 45/2002 Cus dated 22.4.2002 may also be allowed
to be utilised for clearance of goods under DEPB Scheme provided the licences
are valid to cover the imported goods and the conditions
of notification Nos. 34/97-Cus dated 7.4.1997 and 45/2002-Cus dated 22.4.2002
are fulfilled.<br>
<br>
Both the issues raised by us have been clarified in favour of the importers.
But the fact remains that the Board forgot to extend the notification and caused
all this confusion. Why then are they shy to give a public clarification and
resort to secret letters to Commissioners? When the damage is done so publicly
should the rectification be so private? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/tradenotice.htm">Click
here to see Public Notice of Bangalore Customs</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> No
Hindi for FM</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The media gathered at a function in Mumbai were surprised when the pleasant
Finance Minister told them last week, “I cannot answer this question if
you put it in Hindi, (after a pause), unless you have a translator.” Earlier
the FM used to answer Hindi questions in English.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Woes of Customs officers at LOC</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The life of a Customs officer is not really the one glamorized image of one
you find in the airports. The officers posted in the LOC work without any basic
facilities and protection. More than the biting cold, the lack of facilities
and careless attitude of the higher ups upset these officers. The 15 Inspectors
posted in the LOC have no food and accommodation arrangements and face security
threat according to their Association Secretary General. It seems some officers
had to live inside a Maruti Gypsy for a month. These officers have arms licence
and training but no arms and they have to arrange their own transport. With
temperature not being positive and oxygen at three percent, the attitude of
these officers at those high altitudes can easily be guessed.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Saif summoned by Customs</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Actor
Saif Ali Khan met with an accident recently which led to another accident, perhaps
far more serious than the first one. He has been summoned by the
Customs to answer charges of smuggling the vehicle, Toyota Lexus. Saif is to
appear before Additional Commissioner of Customs today.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CBI
arrests NCB officers</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The Jammu CBI arrested two intelligence officers of the Narcotics Control Bureau
while accepting a bribe of Rs. 20,000 from the father of a person the NCB had
picked up on suspicion of being a drug peddler.<br>
<br>
<br>
<font color="#663399"><b>If the laws could speak for themselves they would complain
of the lawyers in the first place.</b></font><br>
<br>
<b>(Lord
Halifax (1633-1695) Political Thoughts and Reflections)</b><br>
<br>
<font color="#FF6666"><b>Until tomorrow with more DDT<br>
<br>
Have a nice day.<br>
<br>
Mail your comments to</b></font> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com
</a></font></p>
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