TIOL-DDT 377 · the untouched capture
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<p c> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
377</font><br>
05 6 2006<br>
Monday</b></font></p>
<p align="center" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Default
of monthly payment of duty – Payment only through PLA – no need of order from
Assistant Commissioner </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule
8 (3A) of the Central Excise Rules, 2002, reads as</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If
the assessee defaults in payment of duty by the date prescribed <b>in sub-rule
(2)</b> and the same is discharged beyond a period of thirty days from the said
date, then the assessee shall forfeit the facility to pay the duty in monthly
instalments under sub-rule (1) for a period of two months, starting from the
date of communication of the order passed by the Assistant Commissioner of Central
Excise or the Deputy Commissioner of Central Excise, as the case may be, in
this regard or till such date on which all dues including interest thereof are
paid, whichever is later, and during this period notwithstanding anything contained
in sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall be
required to pay excise duty for each consignment by debit to the account current
and in the event of any failure, it shall be deemed that such goods have been
cleared without payment of duty and the consequences and penalties as provided
in these rules shall follow.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To
invoke the provisions of this sub rule, an assessee has to first default payment
of duty by the date prescribed <b>in sub-rule (2)</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
strangely Sub Rule 2 does not fix any date for payment of duty. It reads,</font></p>
<p align="justify" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
duty of excise shall be deemed to have been paid for the purposes of these rules
on the excisable goods removed in the manner provided under sub-rule (1) and
the credit of such duty allowed, as provided by or under any rule.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is sub rule 1 which prescribes the date for payment of duty. So all these days
truly the TRU had not conferred any authority to make the assessee pay the duty
consignment wise in PLA. It was only an assumption of the department and could
never be enforced. Now this mistake is rectified and in doing so, the Government
has made some major changes. The duty has to be paid from PLA consignment wise
till dues are cleared with interest and there is no need of any order from the
Assistant Commissioner/Deputy Commissioner.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
we carried a Tribunal judgement recently which held that payment of duty by
utilizing the cenvat credit during the default period is as good as payment
from PLA. -<font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2006/2006-TIOL-615-CESTAT-BANG.htm">
<u>2006-TIOL-651-CESTAT-MUM</u></a></font> </font></p>
<p align="justify" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/exnt06_13.htm">NOTIFICATION
NO. 13/2006-C E (N.T.), Dated : June 1, 2006 </a></u></font></p>
<p align="center" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Food
preparations, for infant use – exemption is back</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Sl. No. 42 of Notification No. 21/2002 – Cus, Food preparations, meant for
infant use and put up for retail sale, of –</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i)flour,
meal, starch or malt extract containing cocoa in a proportion by weight 40%
or more but less than 50%, calculated on a totally de-fatted basis; or</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii)goods
of headings 04.01 to 04.04 containing cocoa in a proportion by weight 5% or
more but less than 10%, calculated on a totally de-fatted basis</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">were
to have an effective rate of customs duty of 15%. This Sl. No. 42 was deleted
by Notification No. 11/2006 dated 1.3.2006, but may be somebody told the government
that it was heartless to withdraw an exemption for infant food, the exemption
is back but this time the rate of duty is 17.5% instead of 15%. </font></p>
<p align="justify" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_053.htm">NOTIFICATION
NO. 53/2006-CUSTOMS, Dated : May 31, 2006 </a></u></font></p>
<p align="center" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Service
Tax – production of cycles, rickshaws and sewing machines – 70% abatement.</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Production
or processing of parts and accessories used in the manufacture of cycles, cycle
rickshaws and hand-operated sewing machines, for, or on behalf of, the client
falling under the category of Business auxiliary service is to be provided an
abatement of 70% from the gross amount to compute the Service Tax subject to
the condition that the gross amount charged from the client is inclusive of
the cost of inputs and input services, whether or not supplied by the client.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If
the client is supplying the inputs, where is the question of charging him for
that? </font></p>
<p align="justify" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2006/stnot06_023.htm">Notification.
No. 23/2006-Service Tax dated the 2nd June, 2006</a></u></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Import
of Sandalwood – cut off date for filing applications.</font></b></font></p>
<p align="justify" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Policy Circular No. 1 (RE-2006)/2004-09 dated 7th April, 2006 the procedure
for import of sandalwood was laid down. In para 3 (1) of the circular it was
stipulated that the </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Applicant
will submit their application in the Aayaat Niryaat Form to the DGFT (Headquarters
office), Udyog Bhawan, New Delhi – 110 011. </i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There
was no time limit fixed for submitting this application. Now the DGFT clarifies
that the last date for filing applications will be 31st July, 2006</font></p>
<p c><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2006/dgft06cir007.htm">POLICY
CIRCULAR NO. 07(RE-2006)/ 2004-09, Dated : June 2, 2006</a></u></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<b><font color="#006600">Import of 30 lakh MTs Wheat at Zero Duty – Mundra port
added.</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By
PN. No. 7/ 2006, the DGFT had notified that </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i)
Import of 30 lakh MTs of wheat under Chapter 10 of the ITC (HS) Classification
of Export and Import Items, 2004-09 will be allowed at Zero Duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii)
The imports will be made by 30 th November 2006. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii)
The imports will be allowed only through the State Trading Corporation (STC)
subject to para 2.11 of the Foreign Trade Policy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv)
The import will be allowed into <st1:country-region w:st="on"><st1:place w:st="on">India</st1:country-region>
only through the following ports, namely, Nhava Sheva, Kandla, Kolkatta, Chennai
and Vishakhapatanam</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
Mundra is added to the list of ports.</font></p>
<p c><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn016.htm">PUBLIC
NOTICE NO. 16(RE-2006)/2004-09, Dated: June 1, 2006 </a></u></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Import
of Vegetable Fats (Vanaspati) under the Indo-Sri Lanka Free Trade Agreement
– only through NAFED</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
has notified that import of Vanaspati including bakery shortening and margarine
under the Indo – Sri Lanka Free Trade Agreement shall be made only by National
Agricultural Cooperative Marketing Federation of India Ltd. (NAFED).</font></p>
<p align="justify"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn017.htm">PUBLIC
NOTICE NO. 17(RE-2006)/2004-09, Dated: June 2, 2006 </a></u></font></p>
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<TD><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><em><font color="#0000FF">A</font></em></b><font color="#0000FF"><em><b>
writ by any other name</b></em></font><b>... is equally bad</b></font></TD>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><i><u>AB
INITIO</u></i></b> it should be said that there is a good <b><i><u>prima facie</u></i></b>
case for simplifying the language used in courts as part of the civil law reforms.
Lawyers, <b><i><u>pro bono publico</u></i></b>, should be much more straightforward
in the way they speak <b><i><u>pendente lite</u></i></b>. <b><i><u>Inter alia</u></i></b>,
hearings <b><i><u>in camera</u></i></b> or <b><i><u>ex parte</u></i></b> should
be thrown out and hearings <i>in private</i> or <i>without notice</i> should
be brought in. <b><i><u>Plaintiffs</u></i></b> should be replaced by claimants.
Taxmen should not live in terror of <b><i><u>writs</u></i></b>. Instead they
should tremble at <i>claims</i>. These Latin phrases cannot go on, <b><i><u>ad
infinitum</u></i></b> and we cannot adjourn<b><i><u> sine die</u></i></b>. </font></p>
<p align="justify" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There
should be a <b><i><u>fiat</u></i></b> from the <st1:Street w:st="on">Apex Court
or the Bar Council which traditional lawyers and judges should not feel as a
<b><i><u>casus belli</u></i></b> or as an act of <b><i><u>force majeure</u></i></b>
which defy <b><i><u>restitutio in integrum.</u></i></b></font></p>
<p align="justify" c><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
then the <b><i><u>lingua franca</u></i></b> of the law may be baffling to the
laymen but that, surely, is part of its charm and all of its function. When
I tell an officer that he can’t be "a judge in his own cause," the
phrase has no majesty or even mystery. It would be more impressive if I tell
him that he had offended the basic principle of <b><i><u>nemo debet esse judex
in propria</u></i></b>. Phrases like <b><i><u>sub judice</u></i></b> or <b><i><u>lis
pendens</u></i></b> have a forbidding ring to them which is sadly lacking in
"pending litigation". <b><i><u>Ultra vires</u></i></b> is certainly
not without authority of legalistic verbosity: If you translate <b><i><u>habeas
corpus</u></i></b>, into English, there is a body missing.. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All
this could of course have a serious impact on a very old legal concept, derived
either from the Latin <b><i><u>feudum</u></i></b>, the Old English <b><i><u>feoh</u></i></b>,
or some say, the Frankish fehu-od, which most of us lawyers now know as fees
and which comes mostly from <i>interlocutory</i> this,<i> mandamus</i> that,
a few <b><i><u>affidavits</u></i></b> and a fair old quantum of <b><i><u>res
ipsa loquiturs</u></i></b>. The distilled wisdom of centuries has made these
magnificent documents. Can lawyers abandon this age old <b><i><u>modus operandi</u></i></b>
and tell their clients what they've been up to in plain English? No we just
can’t imagine this as the traditional Latin saying goes: <b><i><u>Caveat feles
obesus</u></i></b>!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Well,
how many of those phrases could you get? Greek and Latin would like to take
a short break after this.</b></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more DDT </font></p>
<p align="justify" c><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice Day. </font></p>
<p align="justify" c><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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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