TIOL-DDT 329 · 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
329</font><br>
24 03 2006<br>
Friday</b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Is
the 4% additional duty payable under DEPB?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
4% additional duty has caused considerable confusion – There is no 4%
additional duty if the product is exempted from BCD and CVD. Now is DEPB an
exemption? Yesterday <b>DDT</b> had promised to bring you an article on this.
Our experts analyse the whole issue and conclude that no 4% additional duty
is payable in case of DEPB debits. See details in our special today.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>4%
duty – 100% doubts</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For
the last twenty days we have been flooded with mails with doubts and apprehensions
about the 4% additional duty. Apart from the additional burden right across
the Board, what worries the stake holders is the absolute lack of clarity and
the Board’s silence. The Notification No. 29/2006 has amended Notification
No. 20/2006 to withdraw the exemption from this 4% to several products covered
under various notifications. This has led to some comical situations.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
Superintendent working in a remote Nepal Border Customs Station wrote to us,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier
it was implemented only on dutiable goods and the goods with NIL rate of duty
were exempted from this 4%. But now the notification 29/2006-Cus dated 20.03.2006
came. During discussion among our selves it appeared first that the 4% ACD is
not applicable on goods being imported from Nepal, Bhutan, Bangladesh. But later
on we found that as per the provisions of notifn.no. -29/2006-cus dated 20-03-06,
<b>ACD @4% Ad-Val. is imposed on all goods imported irrespective of the fact
that the goods are exempted from BCD as well as ACD</b> under Sec.3(1)
of CTA'75.The words used and added in Notifn. 20/2006-cus. dated 01-03-06 that
' Nothing contained in this notification shall apply----'vide Notifin. No. 29/2006-cus
dated 20-03-06, is confusing the matter. Since Notifn. No. 20/-2006 - Cus dated
01-03-06 is a notification extending exemption from payment of ACD under Sec.3(5)
of the CTA'75,the words used 'nothing contained in the notification shall apply----'
shall mean that no exemption is being granted to the goods if imported from
the countries mentioned in the annexed notifications.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>EDI fails – Customs refuses manual filing of BOE</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Importers
in JN Port Custom House, Mumbai have a problem. They are denied the benefit
of an exemption not because they are not eligible, but because the EDI has failed
them. It seems after the budget Notification NO. 75/2005 which deals with exemption
to goods from Singapore got deleted from the system and when the computer says
“no”, who are appraisers and Commissioners to say, “yes”?
Net Result – no exemption. For the last three weeks importers are
being denied the exemption and it seems the Customs authorities are not prepared
to accept manual Bill Of Entry. Once the system is updated, will the importers
get refund? They may – if they challenge the assessment and prove that
the duty has not been passed on.<br>
<br>
Will the Board/ DG, Systems/ Commissioner do something to help the poor importers
who are punished for no fault of theirs?</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Vigilance officers given power of Central Excise officers</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Superintendent,
Appraiser and Inspector in the Directorate of vigilance are conferred with powers
of Central Excise officers. Officers of Assistant Commissioner and above in
the Directorate already have this power.<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/exnt06_07.htm">NOTIFICATION
NO. 7/2006-Central Excise (N.T.), Dated: March 22, 2006</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Exemption
for Matches – certain power operations allowed</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Matches,
in or in relation to the manufacture of which none of the following processes
is ordinarily carried on with the aid of power, namely:<br>
<br>
<b>(i) the process of giving-the veneer flats or strips, the configuration
of a match box including the outer slide or the inner slide with the use of
match paper;</b><br>
<br>
(ii) frame filling;<br>
<br>
(iii) dipping of splints in the composition for match heads;<br>
<br>
(iv) filling of boxes with matches;<br>
<br>
(v) pasting of labels on match boxes or veneers or cardboards;<br>
<br>
(vi) packaging were exempted.<br>
<br>
Now sl. No. (i) above is deleted which means that the process of giving-the
veneer flats or strips, the configuration of a match box including the outer
slide or the inner slide with the use of match paper can be carried out with
the aid of power and still be eligible for the exemption.<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/etariff06_026.htm">NOTIFICATION
NO. 26/2006-Central Excise ., Dated: March 22, 2006</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Medicines
for export to display “Heavy metals within permissible limits”</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All
exporters of purely herbal Ayurveda, Siddha and Unani Medicines (AYUSH) are
required to either conspicuously display on the container of purely herbal Ayurveda,
Siddha and Unani medicines to be exported the words “Heavy metals within
permissible limits” or furnish the prescribed certificate from an approved
laboratory along with other consignment papers. It is the responsibility of
the representative of DCG(I) deployed of the Airport/port of shipment to examine
and ensure that all exporters of purely herbal Ayurveda, Siddha and Unani medicines
comply with this. Board wants Customs officers to take note.<br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2006/instruct04.htm">F.No.
450/163/2005-Cus.IV Dated: March 21, 2006.</a></font></p>
<P align=center><B><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt.jpg" width=375></B></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> Sine
die <font size="2" face="Verdana, Arial, Helvetica, sans-serif">(si¯'niš
di¯'e¯)</font></I></B></TD>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Without
a day specified for a future meeting; indefinitely: Parliament was adjourned
sine die yesterday.</font></b><font color="#663399"><br>
</font><br>
A legislative body adjourns sine die when it adjourns without appointing a day
on which to assemble again. A court may also adjourn a matter sine <b>die</b>,
which means the matter is stayed permanently. This may be due to various reasons,
for example, the case is started with a wrong procedure chosen, and then the
judge may adjourn the matter sine die so that the party may choose to start
the action again with the correct procedure.<br>
<br>
++ Appeal on same issue pending in Supreme Court not a ground for adjournment
of appeal <b>sine die</b>, as it could result in a situation where majority
of litigation could come to a standstill. – CEGAT in CENTURY ENKA</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Adjournment of appeal sine die generally not granted by Appellate Tribunal just
because appeal against an earlier order involving identical point of dispute
pending before Supreme Court – CEGAT in GOWTHAMI SOLVENT OILS PVT. LTD.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Issue pending before the Constitutional Bench - Appeal adjourned sine die. –
Supreme Court in INDIAN LEADS PRIVATE LIMITED<br>
<br>
<font color="#663399"><b>There's no better way of using the imagination than
the study of law.<br>
<br>
No poet ever interpreted nature as freely as a lawyer interprets truth.</b></font></font></p>
<p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>(Jean
Giraudoux (1882-1944)</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666">Until
Monday with more DDT<br>
<br>
Have a nice Day.<br>
<br>
Mail your comments to</font></b> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a><br>
</font></p>
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