TIOL-DDT 303 · the untouched capture
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<strong><font color="#663399">TIOL-DDT 303</font><br>
</strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15
02 2006<br>
</font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wednesday</font></strong></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Job
work notification – matches included</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 214/86 – Central Excise has been amended to remove matches from the
excluded category of final products. Under this notification, goods manufactured
under job work for use in final products except matches are exempted from excise
duty. Now the exception of matches is also removed, which means that exemption
is available to all final products. This job work notification is the most confused
and misunderstood notification in Central Excise. In my early days in the department,
a senior officer told me that if you understand the SSI Notification, the job
work notification and the Valuation provision (Section 4), you will have no
problem in understanding anything in Central Excise.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
notification has to be understood together with the captive consumption exemption
and the cenvat credit scheme. Excisable goods are liable to duty when cleared
even for captive consumption, but then they are eligible for credit. Instead
of paying duty at the time of captive use and then taking credit, which will
only result in more records and no revenue, these goods are exempted. Similarly
when goods are sent for job work, they can be cleared on payment of duty, the
job worker can take credit and he can pay duty when the processed goods are
returned and that duty can be taken as credit. Instead of this entire accounting
circus, the job worker is exempted. The basic requirement for exemption is that
the goods are covered under the Cenvat credit scheme and the exemption is only
to avoid unnecessary documentation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
the Cenvat Credit Rules, 2002 had defined final products as all excisable goods
except matches, but there is no such exclusion under the Cenvat Credit Rules,
2004. So there was no logic in having such an exclusion under the job work exemption
Notification at least from 10.9.2004. But it continued there merrily for all
these days and was obviously detected by a smart officer may be in his budget
pursuit. And so it is removed in tune with the Cenvat scheme. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/etariff06_002.htm">NOTIFICATION
NO. 2/2006-Central Excise, Dated: February 13, 2006</a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs
ports - Trombay</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Trombay
is declared as a port for unloading of coal. Should we again remind about Vizag?</font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2006/cnt06_008.htm">NOTIFICATION
NO. 8/2006 (N.T.) - Cus., Dated: February 13, 2006</a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti
dumping duty on vitrified and porcelain tiles</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On
the basis of the final findings of the designated authority, the Central Government
had imposed final anti-dumping duty vide notification No. 73/2003-Customs, dated
the 1st May, 2003.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
designated authority, has come to the conclusion that export price of vitrified
and porcelain tiles exported to India produced by M/s Southern Building Materials
and Sanitary Co. Ltd., Qingyan City, People’s Republic of China and exported
by M/s New Zhong Yuan Ceramics Import & Export Co. Ltd., Guangdong, People’s
Republic of China is above its normal value during the period of investigation
and recommended that no anti dumping duty be imposed on the subject goods produced
by M/s Southern Building Materials and Sanitary Co. Ltd., Qingyan City, People’s
Republic of China and exported by M/s New Zhong Yuan Ceramics Import & Export
Co. Ltd., Guangdong, People’s Republic of China.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Based
on the recommendations of the Designated Authority, the Government has amended
the notification to stipulate that no anti-dumping duty shall be imposed on
the imports into India of vitrified and porcelain tiles falling under chapter
69 produced by M/s Southern Building Materials and Sanitary Co. Ltd., Qingyan
City, People’s Republic of China and exported by M/s New Zhong Yuan Ceramics
Import & Export Co. Ltd., Guangdong, People’s Republic of China. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_006.htm">NOTIFICATION
NO. 6/2006-CUS, Dated : February 13, 2006</a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti
dumping duty on compact fluorescent lamps</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
anti dumping duty was imposed by Notification No. 138/2002-Customs, dated the
10th December, 2002. M/s Osram China Lighting Limited, the People’s Republic
of China have requested for review in respect of exports made by them, and the
designated authority has recommended provisional assessment of all exports of
CFL made by the said M/s Osram China Lighting Limited, the People’s Republic
of China till the completion of the review.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After
considering the recommendation of the designated authority, Government has ordered that
pending the outcome of the said review by the designated authority, export of
compact fluorescent lamps (CFL), falling under sub-heading 8539 31 of the First
Schedule to the Customs Tariff Act, by M/s Osram China Lighting Limited, the
People’s Republic of China, when imported into India, shall be subjected
to provisional assessment till the review is completed. The provisional assessment
may be subject to such security or guarantee as the Assistant Commissioner of
Customs or Deputy Commissioner of Customs, deems fit for payment of the deficiency,
if any, in case a definitive anti dumping duty is imposed retrospectively, on
completion of investigation by the designated authority.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_007.htm">NOTIFICATION
NO. 7/2006-CUS, Dated : February 13, 2006</a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tax
on education is regressive – Kerala High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today
we are carrying a judgement of the Kerala High Court striking down Service Tax
on parallel colleges. The judgement considered in detail certain social and
constitutional issues. Here are a few quotable quotes:-</font></p>
<ul>
<li>
<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">even
if the State is not able to finance higher education as required under the
Directive Principles of State Policy under article 41 of the Constitution,
it should not deny and discourage opportunities for education by adding
cost to it in the form of tax on education which will certainly disable
the economically weaker sections from pursuing higher studies</font></div>
</li>
<li>
<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> If
education is run on business lines, then solution is to amend section 11
and other relevant provisions of the IT Act withdrawing the exemptions to
institutions and Government can simultaneously provide financial aid to
beneficiaries which will put an end to misuse of income-tax provisions.
</font></div>
</li>
<li>
<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> levy
of service-tax on students will serve the purpose of disciplining those
who make business out of education. </font></div>
</li>
<li>
<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> Tax
on education, particularly when the incidence of tax is passed on to the
beneficiaries, that is, the students, is a regressive legislation and has
to be condemned, more so, when large number of poor people seek salvation
through education and employment</font></div>
</li>
<li>
<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> levy
of service-tax for services rendered by parallel colleges which indirectly
falls on the students, but by simultaneously providing exemption to regular
affiliated colleges allowing the students therein study free of tax is patently
discriminatory and violative of article 14 of the Constitution of India</font></div>
</li>
</ul>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3294">Click
here to see our analysis + Judgement.</a></font></p>
<p align="center"><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt.jpg" width=375></P>
<TABLE cellSpacing=0 cellPadding=0 width=350 align=center border=1><TBODY><TR>
<TD><IMG height=67 hspace=5 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_word.jpg" width=67 align=middle vspace=5><B><I> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">Functus
Officio - having performed his office</font></I></B></TD>
</TR></TBODY></TABLE>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
Latin term that can be applied to an officer who has fulfilled the duties of
an office that has expired and who, in consequence, has no further formal authority.
This has been interpreted in Central Excise matters to mean that once an adjudicating
authority passes an order he becomes a Functus Officio and cannot further interfere
with that order. He cannot touch it. The only recourse is to utilise the appellate
channels. Is this concept higher than the law legislated by parliament?
There were several occasions when appellate authorities have quashed the orders
or revised orders of the adjudicating authorities on the ground of Functus officio.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
term is applied to something which once had life and power, but which now has
no virtue whatsoever. </font></p>
<p align="center"><font color="#993300" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">"A
jury consists of twelve persons chosen to decide who has the better lawyer."</font>
- <i><font color="#000000">Robert Lee Frost </font></i></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6666">Until
tomorrow with more DDT</font></strong></font></p>
<p align="justify"><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></strong></font></p>
<p align="justify"><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font></strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></strong></p>
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