TIOL-DDT 387 · the untouched capture
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<p > <b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
387</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
19 06 2006<br>
Monday</font></b></p>
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Exports – rebate of
input stage credit as well as final products – not eligible?</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a major blow to the exporters, the Bombay
High Court has held that exporters are eligible for rebate on the duty paid
either on the inputs or the final products but not both. The court was interpreting
Rule 18 of the Central Excise Rules, 2002:-</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Where any goods are exported, the Central
Government may, by notification, grant rebate of duty paid on such excisable
goods <b>OR </b>duty paid on materials used in the manufacture or processing
of such goods.</i></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Because of the word, “or” in the rule, the
High Court held that only one of the benefits could be allowed. This is the
result of benevolent simplification to make the assessee’s life simpler! As
long as the Central Excise Rules, 1944 ruled the roost, there was no problem,
and simplification has taken away another benefit. Is it fair on the part of
the government to take the matter to the High Court when they knew all along
that rebate was and should be allowed on both the items? Should the assessees
suffer for the deficiency in English of the officers in the Board? First the
government makes a bad law because of a mistake, because somebody’s English
grammar was poor and then they go to Court to get benefit out of the badly drafted
law! Certainly not an act worthy of a government! Please see our <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3870">breaking
news</a></u> for details of the case.</font></p>
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Exemption to goods
cleared under “served from India”</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In tune with the DGFT’s notification allowing
payment of excise duty from duty free credit scrip, the Revenue ministry has
now issued an excise exemption notification for this purpose. Now the hotel
industry covered under the scheme can get certain goods from the domestic market
without excise duty by using the scrips obtained, subject to certain conditions:-</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. The certificate issued by the Regional
Authority is produced before the jurisdictional Central Excise Officer at the
time of clearance for debit of the duties.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. exemption is not be admissible if there
is insufficient credit in the certificate for debiting the duties</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3. the certificate and goods cleared against
it shall not be transferred or sold. ( They can be within the same group)</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 4. Certificate of installation to be produced
from Assistant Commissioner/Deputy Commissioner.<b> </b></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=30&filename=notification/excise/2006/etariff06_034.htm">NOTIFICATION
NO. 34/2006-Central Excise, Dated: June, 14 2006</a></u></font></p>
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Customs duty on petrol
and diesel slashed – The Notification is here!</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>From</strong>
<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3814">TIOL-DDT
378, 06-06- 2006</a></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>We need not tell you about the hiked cost
of petrol; that is everywhere, but we should have been able to tell you that
the customs duty on petrol and diesel has been reduced from 10% to 7.5%. It
has been indeed, but where is the customs notification? We tried our best to
get the notification, but we found that the only person in the whole country
who had some authentic information about the cut in customs duty was Petroleum
Secretary M.S. Srinivasan, who announced that the slashed rates are applicable
from the midnight of 5<sup>th</sup> June 2006. Frantic calls from Oil Companies
could not be answered as Revenue Ministry had closed shop by the time the Petroleum
Ministry announced the customs duty cut! Tomorrow the notification will be issued
and oil companies will seek refund which will be refused and the matter will
ultimately reach the Supreme Court of India.</i></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue Ministry has finally issued the
notification but from 14<sup>th</sup> June and not 5<sup>th</sup> June as announced
by the Petroleum Secretary. He may be able to produce oil, but to produce a
notification, you need the Revenue ministry, and you will have to wait till
they choose to do so.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Oil is produced by fools like me</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But only Board (god) can make a notification!</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=23&filename=notification/custom/2006/ctariff06_059.htm">NOTIFICATION
NO. 59/2006-customs, Dated: June, 14 2006</a></u></font></p>
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">DGFT amends SION</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Director General of Foreign Trade has made
several amendments / deletions / corrections /additions in </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. the Handbook of Procedures, Vol.2, 2004-2009.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. In the statement of Standard Input Output
Norms</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/dgft06pn021.htm">PUBLIC
NOTICE NO. 21 (RE:2006)/2004-2009 - DATED : 15 /06/2006</a></u></font></p>
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Exports during 2005–06
– certain amendments in HOP</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Handbook of Procedures Vol. 1, 2004-09 is amended
applicable for exports during 2005-06.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. New application form 17 D is prescribed
for Target Plus Scheme (2005-06) for export period 2005-06.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. Appendix 17E and Para 3.2.5 (VIII) of Handbook
of Procedures (Vol.1 2004-09) is deleted.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3. Para 3.2.5 (IX) is added, which stipulates
that “Applicants shall file the applications in Appendix 17D to the jurisdictional
Zonal Office (Mumbai, Kolkata, Chennai, Delhi CLA) depending upon the location
of Registered Office / head Office of the applicant. The respective Zonal Committees
in the Zonal offices shall consider the applications and issue the licence or
otherwise.”</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 4. Para 3.2.5 (X) is added to stipulate that
“Application should be filed manually only to the jurisdictional Zonal Office.”</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/dgft06pn022.htm">PUBLIC
NOTICE NO. 22 (RE:2006)/2004-2009 - DATED : 15 /06/2006</a></u></font></p>
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Agreed List - revenue
refuses to part with information</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>In
its order dated 1<sup>st</sup> May 2006, the CIC, directed the CBEC’s Vigilance
Directorate to furnish the list of officers figuring in the ‘agreed list’ who
have been promoted or posted to sensitive posts.</strong><b><u> </u></b><u><a href="http://www.hrindiaonline.com/laws4u/rti1.php?filename=rti/2006/2006-HRIOL-64-CIC.htm">2006-HRIOL-64-CIC</a></u><b><u>.
</u></b>The information is too sensitive for the Revenue and so they have not
followed the Commission’s directions and the lawyer is back in the Commission
demanding penalty against the defaulting officers. <b>DDT</b> spoke to Ms. S.R.
Sawant, the Mumbai based advocate who filed the application under the RTI Act
and she spoke about filing an application in the CAT as well as the CIC.</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" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day. </font></p>
<p align="justify" ><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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