TIOL-DDT 2906 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26988"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2016.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="252" height="220" hspace="5" border="0" align="right" ></a><strong><font color="#663399" size="3">TIOL-DDT 2906</font><br>
09 08 2016<br>
Tuesday</strong></font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">GST - Constitutionally </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>I</strong> am one of those incorrigible optimists who believed that GST will not come in the next five years, but now my hopes seem to have been dashed. GST appears to have crossed the horizon into the realm of reality. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Constitutional Amendment Bill was passed by Lok Sabha on the 6th May, 2015 and transmitted to Rajya Sabha for concurrence. Rajya Sabha passed the Bill with amendments at its sitting held on the 3rd August, 2016 and returned it to Lok Sabha on 4th August, 2016. And the Lok Sabha approved the amendments yesterday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What does the Constitution amendment propose to achieve? </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. A new Article 246A is added to the Constitution which stipulates that notwithstanding anything contained in articles 246 and 254, Parliament, and, the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. Article 246 deals with the powers of the Centre and the States to make laws as per the Union List, the State List and the Concurrent List. Article 254 deals with the supremacy of the laws made by Parliament. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. A new Article 246A is added to the Constitution which stipulates that Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States and that such apportioned amounts shall not be part of the Consolidated Fund of India or the States. This is said to be for ease of transfer of funds. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Article 270 is amended to provide for distribution of the GST collected by the Central Government between the Centre and the States. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. As per Article 271 surcharge on taxes is not shareable and remains with the Centre. Now this article is amended to exclude GST from its purview. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. A new Article 279A is added for constitution of the GST Council. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Article 366 is amended to define "goods and services tax" as any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption; and to define services as anything other than goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Seventh Schedule is amended to substitute entry 84 in Union List dealing with excise duty. Now excise duty can be levied on petroleum crude; </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) petroleum crude </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) high speed diesel; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) motor spirit (commonly known as petrol); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) natural gas; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) aviation turbine fuel; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) tobacco and tobacco products </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service tax is omitted; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From the State list, sales tax, entry tax and entertainment tax omitted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. States to be compensated for loss of revenue due to implementation of GST, for a period of five years. </font></p>
</blockquote>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f1"></a>What the Rajya Sabha Amended and Lok Sabha Accepted </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong>is a summary of the amendments made by Rajya Sabha in the Bill passed by Lok Sabha in May 2015 and accepted by the Lok Sabha yesterday. </font></p>
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<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisions of the Bill </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendments </font></td>
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<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">BE it enacted by Parliament in<font color="#FF0000"><strong> the Sixty-sixth </strong></font>Year of the Republic of India as follows:— </font></td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">for the word "Sixty-sixth", the word "Sixty-seventh" be substituted. </font></td>
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<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. (1) This Act may be called the Constitution (<font color="#FF0000">One Hundredth Amendment</font>) Act, 2015. </font></td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">for the words, bracket and figure "the Constitution (One Hundredth Amendment) Act, 2015", the words, bracket and figure "the Constitution (One Hundred and First Amendment) Act, 2016" be substituted. </font></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. After article 269 of the Constitution, the following article shall be inserted, namely:- </font></p>
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<td valign="top"><p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GST on InterState trade or commerce </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">‘‘269A. (1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. </font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Explanation.</em>- For the purposes of this clause, supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce. </font></p></td>
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</table> </td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">the following be inserted, namely:- "(2) The amount apportioned to a State under clause (1) shall not form part of the Consolidated Fund of India. (3) Where an amount collected as tax levied under clause (1) has been used for payment of the tax levied by a State under article 246A, such amount shall not form part of the Consolidated Fund of India. (4) Where an amount collected as tax levied by a State under article 246A has been used for payment of the tax levied under clause (1), such amount shall not form part of the Consolidated Fund of the State. </font></td>
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<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. In article 270 of the Constitution,—</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) in clause (1), for the words, figures and letter "articles 268, 268A and 269", the words, figures and letter "articles 268, 269 and 269A" shall be substituted;</font></p>
<p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) after clause (1), the following clause shall be inserted, namely:-</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">‘‘(1A) The goods and services tax levied and collected by the Government of India, except the tax apportioned with the States under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2).''. </font></p>
</blockquote> </td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">the following be substituted for (ii), namely:- ‘(ii) after clause (1), the following clauses shall be substituted, namely:- "(1A) The tax collected by the Union under clause (1) of article 246A shall also be distributed between the Union and the States in the manner provided in clause (2). (1B) The tax levied and collected by the Union under clause (2) of article 246A and article 269A, which has been used for payment of the tax levied by the Union under clause (1) of article 246A and the amount apportioned to the Union under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2).".'. </font></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. After article 279 of the Constitution, the following article shall be inserted, namely:-</font></p>
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<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <br>
GST Council </font></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">‘‘279A. (1) The President shall, within sixty days from the date of commencement of the Constitution (<font color="#FF0000">One Hundredth Amendment</font>) Act, 2015, by order, constitute a Council to be called the Goods and Services Tax Council. </font></p></td>
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</table> </td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">for the words, bracket and figure "the Constitution (One Hundredth Amendment) Act, 2015", the words, bracket and figure "the Constitution (One Hundred and First Amendment) Act, 2016" be substituted. </font></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12(4) The Goods and Services Tax Council shall make recommendations to the Union and the States on - </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the goods and services that may be subjected to, or exempted from the goods and services tax;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) model Goods and Services Tax Laws, principles of levy, apportionment of <font color="#FF0000">Integrated Goods and Services Tax</font> and the principles that govern the place of supply; </font></p></td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">for the words "Integrated Goods and Services Tax", the words, figure and alphabet "Goods and Services Tax levied on supplies in the course of inter-State trade or commerce under article 269A" be substituted. </font></td>
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<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12(11) The Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendations. </font></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">the following be substituted, namely:- "(11) The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute -</font></p>
<blockquote>
<p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"> (a) between the Government of India and one or more States; or </font></p>
<p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) between the Government of India and any State or States on one side and one or more other States on the other side; or</font></p>
<p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"> (c) between two or more States, arising out of the recommendations of the Council or implementation thereof." </font></p>
</blockquote></td>
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<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18. (1) An additional tax on supply of goods, not exceeding one per cent, in the course of inter-State trade or commerce shall, notwithstanding anything contained in for assignment clause (1) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend, and such tax shall be assigned to the States in the manner provided in sub-section (2). </font></td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Clause 18 omitted </font></td>
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<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19. Parliament<font color="#FF0000"> may</font>, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for <font color="#FF0000">such period which may extend to</font> five years. </font></td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">for the word "may", the word "shall" be substituted. for the words "such period which may extend to", the words "a period of" be substituted. </font></td>
</tr>
</table>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f2"></a>Refunds - Unjust Enrichment - CBEC Issues Draft Circular </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC </strong>proclaims that the principle of unjust enrichment is not applicable in following cases: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. duty paid on exports; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. duty paid on inputs / input services used in the manufacture of exported goods / for provision of exported services; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. unspent balance lying in PLA. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to bring uniformity in the application of the principle of unjust enrichment,Board has indicated the accounting and documentation requirements which are to be adhered to, in the various refund scenarios which are likely to be encountered. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Balance Sheet of the applicant for the financial year in which the duty amount claimed as refund has been paid or credit note has been issued, should indicate the refund amount as "<em>Duty Receivable</em>" under the heading "<em>Current Assets</em>". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(It does not matter whether the differential duty/tax amount is reflected in the "Duty Receivable" account, invoice wise or a consolidated journal entry is passed at the end of the financial year. The consolidated entry, however, must reflect the invoices in respect of which the differential amount is being transferred to <em>"Duty Receivable</em>" Account.) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Balance Sheet of the subsequent financial year(s) after the financial year in which duty/tax was reflected as "<em>duty receivable</em>"' till the financial year preceding the financial year in which refund is proposed to be sanctioned, should continue to show the amount as "<em>Duty Receivable</em>" under the heading "<em>Current Assets"</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The certificates indicated as part of the documentary requirements would be self-certified by the applicants in all cases where the duty amount being claimed as refund amount is Rs. 25 lakhs or less. In cases, however, where the duty amount being claimed as refund is more than Rs. 25 lakhs, the certificates would be required to be certified by a Chartered Accountant / Cost & Management Accountant. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board would like to clarify that <em>the provisions of Section 11B of CEA are not applicable in case of refund of pre-deposit amount and, therefore, the principle of unjust enrichment is not applicable in such cases</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants feedback to be sent to commr.st-cbec@nic.in or sreeparvathy.sl@gov.in or mittal.drgaurav@gov.in by 6th September 2016. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/Draft_Circular_Service_Tax.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Draft Circular Dated: August - 2016</font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f3"></a>Anti Dumping Notifications Issued </font></em></strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GOVERNMENT</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> has issued the following notifications: </font></p>
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<td width="4%" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl.No </font></strong></div></td>
<td width="18%" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. and date </font></strong></div></td>
<td width="78%" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description </font></strong></div></td>
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<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></div></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjAzMTQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">39/2016-Cus (ADD), dt. 08-08-2016 </font></strong></a></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Extends the levy of anti-dumping duty on imports of Sodium Nitrite, originating in, or exported from People's Republic of China, (imposed vide notification No<strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTczMjM=" target="_blank">.46/2014-Customs(ADD)</a></strong>, dated 8th December, 2014) for a period of one year i.e. upto and inclusive of the 16th August, 2017. </font></td>
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<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></div></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjAzMTU=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">40/2016-Cus (ADD) dt. 21-06-2016 </font></strong></a></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Extends the levy of anti-dumping duty on imports of certain Rubber Chemicals, namely MBTS [Dibenzothiazoledisulphide] originating in, or exported from, People's Republic of China, (imposed vide notification No. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_098.htm" target="_blank">98/2011-Customs</a></strong>, dated 20th October, 2011) for a period of one year i.e. upto and inclusive of the 19th October, 2017. </font></td>
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<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></div></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjAzMTY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">41/2016-Cus (ADD), dt. 08-08-2016 </font></strong></a></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finalizes the provisional assessments in respect of imports of PVC Flex Film, originating in or exported from China PR by M/s Haining Tianfu Warp Knitting Co. Ltd., People's Republic of China (Producer) and M/s Manna, Korea RP (Exporter), at rate of anti-dumping duty imposed vide Notification No. 82/2011-Customs (ADD) dated 25th August, 2011 [and extended vide Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg0MTg=" target="_blank">43/2015-Customs (ADD)</a></strong> dated 18th August, 2015]. </font></td>
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<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></div></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjAzMTc=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">42/2016-Cus (ADD), dt. 08-08-2016 </font></strong></a></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Imposes anti-dumping duty on the imports of PVC Flex Film originating in or exported from the People's Republic of China for a period of five years </font></td>
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<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></div></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjAzMTg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">43/2016-Cus (ADD), dt. 08-08-2016 </font></strong></a></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Imposes anti-dumping duty on the imports of Viscose Staple Fibre excluding Bamboo Fibre originating in or exported from People's Republic of China and Indonesia for a period of five years. </font></td>
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<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></div></td>
<td valign="top"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjAzMTk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">44/2016-Cus (ADD), dt. 08-08-2016 </font></strong></a></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To levy provisional anti-dumping duty on Hot-rolled products of alloy or non-alloy steel imported from China, Japan, Korea RP, Russia, Brazil and Indonesia. </font></td>
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<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f4"></a>Limitation When No Limitation is stipulated in Statute </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHAT</strong> is the limitation for issuing a Show Cause Notice if the statute does not stipulate a limitation? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a judgement delivered yesterday, the Supreme Court observed, </font></p>
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<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Insofar as contention of the assessee that the impugned notification is time barred, it is difficult to accept the same in the facts of the present case. At the outset, we have to keep in mind Rule 8 of the Rules which does not prescribe any period of limitation. No doubt, in such an eventuality, as held by this Court in Bhatinda District Co-op Milk P. Union Ltd, the show cause notice has to be issued within a reasonable period. However, for this purpose, provisions of Section 28 cannot be resorted to to state that it has to be within a period of 6 months. The question has to be decided keeping in view the facts of each case and to examine whether the period in question is reasonable or not. In the instant case, we find that it is only through intelligence collected by DRI, Gandhidham Regional Unit that it came to be revealed that the assessee had imported crude palm oil but it had no facility in manufacturing soap/Industrial Fatty Acid and was using the said imported crude palm oil for making edible products like refined oil/Vanaspati. At the time of import, the importer only gives declaration. It is the actual use, which event takes place much after the import, from where it can be gathered as to where the import is made for the purpose for which it was done. As soon as the aforesaid information was gathered by DRI, show cause notice was issued. Therefore, we are of the opinion that show cause notice had been issued within a reasonable period and it cannot be treated as time barred . </font></em></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Does limitation start from the date of knowledge by the DRI? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For more details on this case, please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=27777" target="_blank">Breaking News</a></strong>. </font></p>
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<p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">The vagaries of the monsoon are less unpredictable than the whimsical changes in our tax laws.</font></p>
<p align="right"><font color="#FF0000"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nani Palkhiwala</font></em></font></p>
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<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT</strong></font></p>
<p><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></p>
<p><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@tiol.in" target="_blank"><strong>vijaywrite@tiol.in</strong></a></font></p>
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