TIOL-DDT 420 · 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 420</font><br> 3 08 2006<br> Thursday</b></font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Is the Rule superior to Notification?</font></strong></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the Supreme Court judgement we are carrying today, the Supreme Court observed that primacy cannot be given to a notification over the statutory provisions of a rule. In Central Excise, an exemption Notification is issued under Section 5A of the Central Excise Act and a rule is issued under Section 37 of the Act. Both are issued by the executive government and both derive their source of strength from the same Act. Then how is one superior to the other? May be a notification issued under the authority of a rule cannot have supremacy over the rule itself, but when the rule and notification have the same status, can one dominate the other? In fact the rules are also issued by notifications.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally the Cenvat Credit Rules have a clarification for this. The explanation to Rule 3 states</font></p> <p align="justify" style=' text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i><strong>Explanation</strong></i><strong>.-</strong> Where the provisions of any other rule or notification provide for grant of whole or part exemption on condition of non-availability of credit of duty paid on any input or capital goods, or of service tax paid on input service, <b>the provisions of such other rule or notification shall prevail over the provisions of these rules.</b> </font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ordnance factories need not file Annual Financial Statements</strong></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Rule 12 of the Central Excise Rules, “every assessee shall submit to the Superintendent of Central Excise, an Annual Financial Information Statement for the preceding financial year to which the statement relates in the form specified by notification by the Board by 30th day of November of the succeeding year”</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But assesses who paid less than One Crore rupees duty in PLA in the preceding year need not submit this statement. Now the Indian Ordnance Factories, Department of Defence Production, Ministry of Defence are also exempted from the operation of this rule.</font></p> <p><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_17.htm">NOTIFICATION NO. 17/2006-Cex.,(N.T.), Dated: August 1, 2006</a></u></font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Indo-Pak tariff dispute to be resolved by commerce ministers </font> </strong> </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The India-Pakistan dispute over tariff concession under the South Asia Free Trade Area (SAFTA) agreement will be settled in the SAARC Commerce Ministers' meet before the next SAARC Summit scheduled to be held in India on April 3-4, 2007. This was announced by Bangladesh's Foreign Minister M Morshed Khan who chaired the 27th session of the SAARC Council of Ministers,</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bangladesh newspapers reported today that the Foreign secretaries of India and Pakistanwere engaged in a war of words over a circular issued by Pakistan restricting imports from India. </font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Under active consideration</font></strong></font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is the difference between “The matter is under consideration” and the “matter is under active consideration”? </font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under consideration means we've lost the file, </font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under active consideration means we're trying to find it. </font></p> <p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </font></p> <p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p> <p ><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>