TIOL-DDT 46 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b><font color="#0000FF" size="3">TIOL-DDT
46</font><br>
3 2 2005<br>
Thursday</b></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Show Cause Notices to EOUs – Don’t bother the Board!</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>CBEC</b>
had vide Circular No.122/95-Cus dated 28.11.95 instructed that Board had to
be informed before issue of Show Cause Notices to EOUs on matters involving
interpretations of statutory provisions or the policy provisions or the scope
of notifications, demi officially. <br>
<br>
Later by Letter F. No. 307/14/2000-FTT, dated 2-8-2002, Board observed that
<br>
<br>
“after receipt of Audit objection, protective Demand-Cum-Show cause
notices have not been issued to the units functioning under EOU/EPZ/EHTP/STP
schemes. In some cases, the grounds for not issuing Demand-Cum-Show cause
notices are stated to be Board’s <b>Circular No. 122/95</b>.”.<br>
<br>
So Board reviewed the instructions and directed that <br>
<br>
it is reiterated that on receipt of the Audit objection, Demand-Cum-Show cause
notice should be issued promptly in all cases, that is to say <b>even in cases
where the Audit’s point of view is not found agreeable</b> or the matter
involves interpretation of provisions and scope of exemption notification,
etc. This will help prevent demands getting time-barred.<br>
<br>
Now the Board has again reviewed the position and observed that even routine
matters involving interpretation of statutory provisions or the policy provisions
or the scope of notification are being referred to the Board and issuance
of Show Cause Notices are being deferred for want of clarification on these
issues. This has resulted in various Commissionerates making references to
the Board on frivolous issues about the dispute not being adjudicated in timely
manner. The field formations are required and empowered to interpret statutory
provisions or the policy provisions or the scope of notification in their
due discharge of official duties including enforcement of law.<br>
<br>
So now Board wants only cases involving divergence of practice or change in
the practice or existing system of assessment to be referred to the Board
Demi-officially by the Chief Commissioner / Director General only.<br>
<br>
In any case, Board is not all that famous for clarity. Our Guest Column now
raises an important query as to <b>what is the education cess payable by the
EOUs. Will Board clarify this or will the Commissioners?</b><br>
<br>
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2005/cuscir05_004.htm"><b>CBEC
Circular No. 4/2005 dated 31.1.2005</b></a></font></p>
<p><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Is Education
Cess payable on Advance Licence, DFRC, EPCG and DEPB Schemes?</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has clarified
on this issue<br>
<br>
1. <b>Advance Licences:</b> Imports against Advance Licences are exempt from
all duties of customs and, therefore, it follows that education Cess at 2%
would <b>not</b> be leviable on such imports<br>
2. <b>DFRC:</b> As the additional duty of customs is payable, Education Cess
is also <b>payable</b><br>
3. <b>EPCG Scheme:</b> the goods attract a concessional duty of 5% and so
education cess is <b>payable</b>.<br>
4. <b>DEPB:</b> the Education Cess @ 2% would also be debited from the DEPB
scrip.<br>
<br>
<b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2005/cuscir05_005.htm">CBEC
Circular No. 5/2005 dated 31.1.2005</a></b><br>
<br>
<font color="#006633"><b>Weights And Measures Act to be amended </b></font><br>
<br>
The Union Cabinet approved the proposal to introduce a Bill, the Standards
of Weights and Measures (Enforcement) Amendment Bill, 2005 in the ensuing
session of Parliament to amend the Standards of Weights and Measures (Enforcement)
Act, 1985. The proposed amendments to the various provisions of the Act will
streamline the law and bring the provisions in line with the present requirements.
<br>
<br>
The Cabinet also approved the proposal to introduce another Bill, the Standards
of Weights and Measures (Amendment) Bill, 2005 to amend various provisions
of the Standards of Weights and Measures Act, 1976. This is mainly to eliminate
obsolete regulations, keeping in view the evolving international practices.<br>
<br>
<b><font color="#006633">FDI Ceiling increased from 49% to 74% in the telecom
sector </font></b><br>
<br>
Cabinet approved a proposal to enhance composite foreign holding in Telecom
sector to 74%. With this decision, the current FDI ceiling in the Telecom
Sector in certain services (such as Basic, Cellular, Unified Access Services,
National/International Long Distance, V-Sat, Public Mobile Radio Trunked Services
(PMRTS), Global Mobile Personal Communications Services (GMPCS) and other
value added services), has been increased from 49 per cent to 74 per cent.<br>
<br>
<font color="#006633"><b>SAARC Agreement on Avoidance of Double Taxation </b></font><br>
<br>
The Union Cabinet gave its approval for the proposed “SAARC Limited
Multilateral Agreement for the Avoidance of Double Taxation and Mutual Administrative
Assistance in Tax Matters”. The Agreement will promote mutual administrative
assistance and cooperation in tax matters among Member States of the SAARC.
It will also provide tax relief to students and teachers for pursuing their
academic interest. The Agreement will be signed at the 31st Session of the
Standing Committee scheduled to be held in Dhaka on February 6-7, 2005 on
behalf of the Governments of all the SAARC Member States.<br>
<br>
The first meeting of the SAARC Member States on Avoidance of Double Taxation
was held during August 5-7, 1999 in Islamabad, Pakistan. The responsibility
of preparing the Draft of the ‘Avoidance of Double Taxation and Mutual
Administration Assistance in Tax Matters’, was entrusted to India. The
draft of the proposed agreement prepared by India has been discussed in the
first and second meetings of the SAARC sub-group on Avoidance of Double Taxation
held at the SAARC Secretariat, Kathmandu during October 26-28, 2004 and in
Islamabad during December 6-7, 2004 respectively. <br>
<br>
<b>I have this interesting query from an enlightened reader, </b><br>
<br>
Why can’t the Sports Ministry follow the Finance Ministry and retrospectively
amend the rules for the Australian Tennis Open, to the effect that whoever
loses in the third round is hereby made champion of the tourney and would
have always been deemed to be the champion not withstanding anything contained
in any rule, direction or order and no court, umpire or adjudicator anywhere
in the world shall admit any appeal or decide any issue so as to give a different
meaning to this ordinance and no court shall admit a petition on the ground
that the Government has no power to issue an ordinance on this issue? Even
Sania Mirza will not like this!<br>
<br>
<font color="#FF0000"><b>Until tomorrow with more of DDT<br>
<br>
Have a Nice Day</b></font><br>
<br>
<br>
</font> </p>
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