TIOL-DDT 305 · 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
305</font><br>
17 02 2006<br>
Friday</b></font></p>
<p align="center"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service
Tax on transport of petroleum products</font></b></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Transportation
of petroleum products are undertaken by tank- truck / tanker operators, who
enter into long term contracts with the Oil Marketing Companies ( OMCs ), whereby
the vehicles are made available and operated for the use of transport of petroleum
products of OMCs for a freight rate fixed on the basis of tendering procedure.
Are they liable to Service Tax?<br>
<br>
Board has clarified the position to the Petroleum Ministry that transport of
petroleum products, fall within the purview of the taxable service provided
by a goods transport agency and is therefore chargeable to service tax.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Customs and Central Excise Duties Drawback Rules amended</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Drawback Rules have been amended.<br>
<br>
++ Upper limit of drawback is not to exceed one third of the market price of
the export product<br>
<br>
++ Rule 12(1)(a)(ii) is substituted as follows:-<br>
<br>
(ii) in respect of duties of Customs and Central Excise paid on the containers,
packing materials and materials used in the manufacture of the export goods
on which drawback is being claimed, <b>no separate claim for rebate of duty
under the Central Excise Rules, 2002</b> has been or will be made to the Central
Excise authorities;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The earlier rule stood as,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(ii) the duties of Customs and Central Excise have been paid in respect of the
containers, packing materials and materials used in the manufacture of the export
goods on which drawback is being claimed and that in respect of such containers
or materials <b>no separate claim for rebate of duty under the Central Excise
Rules, 1944</b> has been or will be made to the Central Excise authorities;<br>
<br>
And what is the difference between the two. You can see the amendment actually
substitutes Central Excise Rules, 2002 for Central Excise Rules, 1944. This
they are doing four years after the Central Excise Rules 2002 came into existence.
So perhaps they wanted to show as if some great amendment is carried out. A
sort of legislative <b>smuggling.</b><br>
<br>
++ Rule 16 A is also amended to change “the Assistant Commissioner of
Customs” to “the Assistant Commissioner of Customs or Deputy Commissioner
of Customs, as the case may be” and to provide for issue of notice if
the exporter fails to produce evidence in respect of realisation of export proceeds,
instead of giving notice on receipt of information from RBI.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2006/cnt06_010.htm">NOTIFICATION
NO. 10 /2006-Cus., (N.T.), Dated: February 15, 2006</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Expeditious
disposal of seized goods –one time interim administrative measure</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
wants all unclaimed/uncleared goods to be disposed and has given guidelines
for the same.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
goods which have undergone auctions/tenders at least 3 times by the custodians
and which are still lying unsold, are to be offered for final tender once more
and the highest bid received to be accepted by the department. This process
should be completed by 31st March, 2006.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Disposal of goods shall be done through e-auction/tender conducted regularly
every month</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Each Custom House will constitute Special Task Forces to conduct a comprehensive
review of all the consignments indicated as being “detained” by
the respective custodians, and reconcile the figures with their records.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
All pending action such as investigation, adjudication, court proceedings should
be referred to the concerned sections in the Custom House for being completed
without delay.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Details of consignments not found to be detained by Customs/DRI, should be intimated
to the custodians for further action by them.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Further, there might be considerable volume of old consignments which cannot
be connected with any records. Details of such detained goods should also be
intimated to the custodians who should put all such consignments for auction/tender
in terms of the new procedure.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
This action of identifying and reconciling the figures and intimating the custodians
should be completed within 120 days</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
there would be a formal mechanism for interaction between the custodians and
Customs to review the pendency of uncleared cargo and to reconcile the figures.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
there should be a quarterly meeting between the Customs and Custodians at each
Custom station to review the pendency of uncleared/ unclaimed cargo and to update
the status of the pending consignments. Further in such review meetings, the
pendency with the custodian should be matched with the figures of uncleared
consignments as per Customs records.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2006/cuscir06_11.htm">CIRCULAR
NO. 11/2006-Cus., Dated: February 16, 2006</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Vishesh
Krishi Upaj Yojana benefits for export of Pepper</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export
of Pepper under ITC(HS) Code 0904 was excluded for benefits under the above
Scheme. Representations have been received requesting to consider Vishesh Krishi
Upaj Yojana benefits on the premise that since the scheme was announced for
the 1st time in Foreign Trade Policy 2004-09 announced on 31st August 2004,
the exporters of this commodity have factored the component of benefits under
the scheme while finalizing export contracts. The DGFT has given due consideration
to the argument and decided that export of pepper covered under ITC(HS) Code
0904 shall be entitled for Vishesh Krishi Upaj Yojana benefits in respect of
such exports made between 1.9.2004 and 26.4.2005 only.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2005/dgft05cir050.htm">DGFT
CIRCULAR NO. 50 (RE-2005)/2004-2009 Date: February 15, 2006</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Advance
Licence for inputs supplied free of cost – FTP amended</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Foreign
Trade Policy stands amended to allow the facility of Advance Licence where some
or all of the inputs are supplied free of cost to the exporter. In such cases,
for calculation of value addition, the notional value of free of cost inputs
along with value of other duty-free inputs shall be taken into consideration.
However, if all the inputs are supplied free of cost, the exporter shall also
have the option to follow the provision prescribed in paragraph 4.2.7 of the
Policy. (Jobbing)</font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2005/dgft05not045.htm">NOTIFICATION
NO. 45(RE-2005)/2004-2009, Dated: February 15, 2006</a></font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></p>
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<TD><IMG height=67 hspace=5 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_word.jpg" width=67 align=absMiddle vspace=5><B><I> Smuggling</I></B><O:P>?</O:P></TD>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Has
something gone wrong? Isn’t this an English word? Yesterday I had lunch
with two distinguished lawyers in Bangalore and more interesting than the lunch
was a discussion on smuggling. One lawyer was aghast that his client was called
a smuggler by the Commissioner. I didn’t find it very offensive and so
asked, “What is smuggling?” <br>
<br>
Can you help me? (Not in smuggling but in knowing what smuggling is) Please
send in your mails by <b>Sunday Evening.</b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>It’s Hore</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
A girl explained to her Oxford Professor why she left her boyfriend. “He
called me a whore”, she said in indignation. “Did he? How disgusting!”,
said the professor, “ It is pronounced as HORE not WHORE”<br>
<br>
<font color="#FF6666"><b>Until Monday with more DDT<br>
<br>
Have a nice Weekend.<br>
<br>
Mail your comments to</b></font> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com
</a></font></p>
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