TIOL-DDT 403 · the untouched capture
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<html> <head> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <title>Taxindiaonline's DDT 402</title> </head> <body > <p > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 403</font><br> 12 07 2006<br> Wednessday</b></font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">CBEC’s</font></strong><font color="#006600"><strong> Q1 collections upbeat</strong></font></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC is smiling all the way from the bank. The collections in the first quarter have enough reasons to make the dour babus smile. Customs collections have gone up by 34% compared to the same period in the previous year, while Central Excise collections are up by 8%. There is a huge 58% increase in Service Tax. Customs and Central Excise revenue in the first quarter amounted to Rs. 43200 Crores. This good performance leads to certain vital conclusions.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The Facts:</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. During this period, there was a lull in leadership – Board was in the process of change in leadership.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. There was a justified rest by officers after hectic, pathetic, and often illegal reaching of revenue targets in March.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3. There were no revenue meetings, no strategy sessions, no weekly monitoring, and no daily reporting of revenue performance.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 4. There was absolutely no coaxing requesting or threatening the assessees to pay up.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 5. Most of the officers from Chief Commissioners to Sepoys were busy in transfers, trying for a better post, trying to retain a post, trying to stall somebody’s posting. And after the transfer orders were issued, trying for change, going to courts etc.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 6. It is seen that during the transfer season, work comes to a grinding halt in most of the offices, as they are always busy over the phones trying to know the <b>latest</b> on the transfer news. We in TIOL get hundreds of calls from frantic officers wanting to know the latest position, even as we assure them that we would carry the news the moment we get it.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 7. There was absolutely no activity on the Revenue Drive front.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The Result</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Substantial Increase in Revenue</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The Conclusion</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue comes not because of the officers, but often, in spite of them. The Government should think of ways and means to keep the officers as away from revenue collection as possible. This can be achieved by frequent transfer orders – transfers need not be actually affected; you can call for representations every three months, issue orders in batches of ten at a time, issue instructions on how the orders are to be implemented and how the violators are going to be rewarded. Make a feeling that there is one more list being cooked. Daily reports on transfer monitoring should be sought from all offices; frequent jamboree like sports meets and cultural extravaganza should be organised. Officers, even about to retire ones, should be allowed to go on foreign pleasure trips with a few jargon like WTO, WCO thrown in. Do anything, but keep them active and away from Revenue and you will see a phenomenal rise in collections. The Government should try this experiment at least in March and see the results.</font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Caustic soda – anti dumping duty</font></strong></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti dumping duty imposed on caustic soda was recommended to be continued by the Designated Authority and so it is, with wider scope and enhanced rates.</font></p> <p><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_072.htm">NOTIFICATION NO.</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_072.htm"><u> 72/2006 - Customs Dated: July 10, 2006 </u></a></font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Target Plus Scheme – Customs notifies exemption </font></strong></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has notified the customs exemption for imports under the Target Plus Scheme for certificates issued on the basis of incremental growth in FOB value of exports made during the financial year 2005-06 over the exports made during the financial year 2004-05; </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The objective of the scheme was to accelerate growth in exports by rewarding Star Export Houses who have achieved a quantum growth in exports. High performing Star Export Houses were entitled for a duty credit based on incremental exports substantially higher than the general annual export target fixed. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <b>‘FOCUS PRODUCT’ & ‘FOCUS MARKET’ SCHEMES </b>have replaced the Target Plus and now the exemption is announced for the certificates issued basing on last year’s export performance. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The highlights:</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ The certificate has to be produced before the customs officer for debiting duty and there should be enough balance</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ The certificate or the goods are not transferable except in the case of supporting manufacturers.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ In the case of capital goods, office equipment and professional equipment, installation and use certificate has to be produced from the jurisdictional Central Excise AC/DC. Units not registered with Central Excise can produce this certificate from Chartered Engineers.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ Imports only through specified ports</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ Cenvat credit is available on the duty debited through the certificate. ( But then should not this be mentioned in the Cenvat Credit Rules than the Customs exemption notification?)</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can the 4% Special CVD paid through debit in the certificate can be taken as cenvat credit? Here is what the Board clarified in Circular No. 18/2006 dated 5.6.2006</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>4. As regards the issue raised as to whether the duty debited through DEPB, DFCE, Tartget Plus etc. schemes would be eligible for cenvat benefit or drawback facility by the licence holder, it has been made clear in the Finance Minister's Budget Speech that full credit of the 4% special CVD will be allowed to manufacturers of excisable goods. Therefore, it is clarified that the 4% CVD duty debited in DEPB, DFCE, <b>Target Plus</b> etc. certificates may be allowed to be taken back as drawback (brand rate). It may be mentioned here that under the Foreign Trade Policy, additional customs duty (CVD) debited in DEPB scrips/certificates issued under reward schemes is allowed to be taken as cenvat / drawback. </i></font></p> <p><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_073.htm">NOTIFICATION NO.</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_073.htm"><u> 73/2006-CUSTOMS, Dated: July 10, 2006 </u></a></font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">A scientific conclusion</font></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A scientist experimented with a frog. He put the frog on a table and said, “jump”. The frog jumped. Then he cut one of the legs of the frog and said, “Jump”. The frog jumped. Then he cut the other leg and said, “jump”. The frog did not obey. He came to the conclusion, “when both the legs of the frog are cut off, it becomes deaf”.</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> </body> </html>