TIOL-DDT 323 · the untouched capture
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<P><b><font color="#996699" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
323</font><font color="#000000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
</font></b><font color="#000000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>16
03 2006<br>
</b></font><font color="#000000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Thursday</b><u2:p></u2:p><u2:p></u2:p></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u2:p></u2:p></font></p>
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<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Is
LPG not a petroleum gas? Is 4% additional duty leviable on LPG?
- Board’s clarification needed.</b></font></p>
<p><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_020.htm">NOTIFICATION
NO. 20/ 2006-Customs, March 1, 2006 exempts</a></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1.
Petroleum crude, </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2.
kerosene for Public distribution scheme, </font></p>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>3.
</b> <b>liquefied petroleum gas for domestic household consumers,
</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 4.
petrol, </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 5.
diesel, </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 6.
coal, </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 7.
coke and </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 8.
<b>petroleum gases</b> and fuels</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">falling
under Chapter 27 from the 4% additional duty imposed on all goods
this year. The TRU DO letter dated the 28th February 2006 also clarified
as follows,</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
4% special CV duty, under section 3(5) of the Customs Tariff Act,
1975 which was imposed last year only on ITA goods and their parts/components,
has been extended in general to all imports. It will apply to both
agricultural and industrial products. This additional duty will
not be included in the assessable value for levy of education cess
on imported goods. Manufacturers will be able to take credit of
this additional duty for payment of excise duty on their finished
products. Articles of jewellery will, however, attract a lower rate
of special CVD at 1%.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some
categories of imports, however, have been exempted from this special
CVD. These are:</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)Goods
exempt from VAT;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(b)Goodsexemptedbothfrom basicandCVduty (includingCVduty exemption
by way of excise duty exemption);</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
(c) Petroleum crude, kerosene for PDS, <b>LPG for domestic supply</b>,
petrol, diesel, coal, coke and <b>petroleum gases</b> and fuels
of Chapter 27;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So
it can be seen that <b>liquefied petroleum gas for domestic household
consumers </b>is exempted from the 4% duty, but there is another
item <b>petroleum gases</b> which are also exempted. Both the notification
and the TRU letter indicate these items. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
an LPG importer imports LPG through different ports. Their contention
is that LPG is a petroleum gas falling under Chapter 27 and so is
eligible for exemption under Notification No. 20/2006 and some Custom
Houses find reason in their plea and allow the exemption. But some
other Custom Houses feel that the exemption is allowed only for
LPG for domestic use. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
the notification exempts petroleum gases and there can be no dispute
that LPG is a petroleum gas. If all petroleum gases are exempted,
why mention LPG for domestic use specifically? Does such mention
exclude LPG from the purview of Petroleum gases? </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
poor importer is worried, confused and helpless, more so as the
notification is understood differently in different Custom Houses.
All his efforts to contact TRU failed. Contacting government officers
over the phone is almost an impossible task. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
importer has another doubt. Can he pass on this 4% to his customers
who are manufacturers? His doubt is because this duty is in place
of VAT/Sales Tax. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Will
the Board clarify? </b></font></p>
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<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff
Values Brass scrap increased</b></font></p>
<p class=section1><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While
there is a marginal increase in the tariff values of brass scrap
and Crude Soyabean Oil, the tariff values for other oil items
have been marginally reduced. The existing and the new rates
are as follows</font></p>
<div align=center>
<table border=1 cellspacing=0 cellpadding=3 width=450 align="center">
<tr>
<td width=50 > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.No.</font></p></td>
<td width=108 > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter
heading or sub-heading</font></p></td>
<td width=246 > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description
of goods</font></p></td>
<td width=73 > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff
value<br>
US$<br>
(Per Metric Tonne)</font></p></td>
<td > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>New
tariff values</b></font></p></td>
</tr>
<tr>
<td width=50 > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1)</font></p></td>
<td width=108 > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2)</font></p></td>
<td width=246 > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3)</font></p></td>
<td width=73 > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4)</font></p></td>
<td > <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>5</b></font></p></td>
</tr>
<tr>
<td width=50 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1</font></p></td>
<td width=108 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
10 00</font></p></td>
<td width=246 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude
Palm Oil</font></p></td>
<td valign=top > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">437</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">434</font></p></td>
</tr>
<tr>
<td width=50 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2</font></p></td>
<td width=108 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
90 10</font></p></td>
<td width=246 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD
Palm Oil</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">452</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">449</font></p></td>
</tr>
<tr>
<td width=50 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3</font></p></td>
<td width=108 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
90 90</font></p></td>
<td width=246 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others
– Palm Oil</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">445</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">442</font></p></td>
</tr>
<tr>
<td width=50 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4</font></p></td>
<td width=108 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
10 00</font></p></td>
<td width=246 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude
Palmolein</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">459</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">456</font></p></td>
</tr>
<tr>
<td width=50 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5</font></p></td>
<td width=108 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
90 20</font></p></td>
<td width=246 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD
Palmolein</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">462</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">459</font></p></td>
</tr>
<tr>
<td width=50 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6</font></p></td>
<td width=108 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
90 90</font></p></td>
<td width=246 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others
– Palmolein</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">461</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">458</font></p></td>
</tr>
<tr>
<td width=50 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7</font></p></td>
<td width=108 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507
10 00</font></p></td>
<td width=246 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude
Soyabean Oil</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">524</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">537</font></p></td>
</tr>
<tr>
<td width=50 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8</font></p></td>
<td width=108 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404
00 22</font></p></td>
<td width=246 > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass
Scrap (all grades)</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2273</font></p></td>
<td > <P><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2281</font></p></td>
</tr>
</table>
</div>
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<p class=section1><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_029.htm">Notification
No 29/2006-Cus., (N.T.), Dated: March 14, 2006</a></strong></font></p>
<P align=center><B><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt.jpg" width=375></B></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=absMiddle vspace=5><B><I> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Supra</b></font></I></B></TD>
</TR></TBODY></TABLE>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>- <i>Above;
beyond. - </i>A term used to indicate that the matter under consideration has
appeared in the preceding pages of the text in which the reference is made.</b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Legal
maxim</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Cogitationis
poenam nemo patitur. - No one is punished for merely thinking of a crime.</b></font></p>
<p><font color="#993300" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>You never, but
never, go to litigation if there is another way out ... Litigation only makes
lawyers fat.</b></font></p>
<p class=section1 align=right style='text-align:right'><font color="#993300" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(Wilbur
Smith, Hungry as the Sea, 1979, p. 214)</b></font></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u4:p></u4:p>
</font><font size="2">
<p><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6666">Until
tomorrow with more DDT and the budget</font></strong></font></p>
<p><font color="#FF6666"><strong><font face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></strong></font></p>
<p><font color="#FF6666"><strong><font face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font></strong><font face="Verdana, Arial, Helvetica, sans-serif"></font></font><font face="Verdana, Arial, Helvetica, sans-serif">
<a
href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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