TIOL-DDT 47 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF" size="3">TIOL-DDT 47</font><br> 4 2 2005<br> Friday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Duty Drawback for supplies to SEZ</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> CBEC has issued a circular explaining the scheme. As the SEZ scheme is effective from 11.5.2004, drawback is also eligible from that date. And the Board clarifies this after 9 months! <br> <br> • The Deputy Commissioner /Assistant Commissioner posted in the SEZ shall be the authority for granting these drawback claims.<br> <br> • triplicate copy of the assessed Bill of Export shall be treated as the drawback claim and processed in the Customs Section of the SEZ.<br> <br> • The jurisdictional Commissioner of Customs in consultation with the Pay & Accounts Officer shall make arrangements for issue of authorisation and drawback cheque books ;<br> <br> • It should be ensured that the claims are processed and amounts disbursed within the time limit prescribed by CBEC;<br> <br> • In case of EDI Ports, the drawback amounts should be sanctioned within 3 working days and in case of such locations where the Shipping Bills are manually processed, drawback amount should be sanctioned within 5 working days. <br> <br> The Board circular says that <b>Circular No.24/2003-Customs, dated 1.4.2003, that had been issued for providing detailed guidelines in this regard was withdrawn vide Customs Circular No.2/2004-Customs dated 8.1.2004, as the date of effect of Chapter X-A (SEZ) of the Customs Act, 1962 had not been notified. </b><br> <br> But look at what Circular No.2/2004 states,<br> <br> <b>Hence, the instructions contained in Circular No. 24/2003-Customs, dated 1-4-2003, concerning payment of duty drawback to the supplies from DTA Unit to the SEZ Unit, shall also become operative from the date when Chapter XA of the Customs Act, 1962 comes into effect.</b><br> <br> That is as per Circular No. 2/2004, the instructions in Circular No. 24/2003 will come into force from 11.5.2004, when the SEZ scheme has come into effect. But now the Board Circular says that Circular No. 24/2003 was withdrawn when actually it was not. It was to come into force from 11.5.2004. Hasn’t it come into force? Any way now Board says that it is indeed effective from 11.5.2004. A lot of confusion can be avoided if Board stops issuing clarifications. <br> <b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2005/cuscir05_006.htm">CBEC Circular No. 6 / 2005-Cus dated 3.2.2005<br> </a></b><br> <font color="#006633"><b>The Right to Information Bill, 2004, referred to standing committee<br> </b></font><br> The <b>Right to Information Bill, 2004</b>, introduced in the Lok Sabha on the 23rd December, 2004 has been referred to a Standing Committee headed by Shri E.M. Sudarsana Natchiappan, M.P., for examination and report.<br> <br> The Bill seeks to provide a framework for effectuating the right to information, recognised under Article 19 of the Constitution of India, by a number of changes in the Freedom of Information Act, 2002, to make it more progressive, participatory and meaningful to ensure smoother, greater and more effective access to information. <br> <br> The Committee invites memoranda containing views of individuals/organisations, interested in the subject matter of the Bill and to hear oral evidence on the subject, which may be sent to Shri Surinder Kumar Watts, Deputy Secretary, Rajya Sabha Secretariat, 007, Ground Floor, Parliament House Annexe, New Delhi – 110001 (Tel: 23034262 and Fax: 23013917)</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006633">Vir Sanghvi, Chandrababu Naidu and Karunanidhi in NATIONAL INTEGRATION COUNCIL</font></b></font><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> The reconstituted NIC has Mrs Sonia Gandhi, Ms. Mayawati Ms. Kiran Mazumdar Shaw, Messrs Harkishan Singh Surjit, A.B. Bardhan, L.K. Advani, N. Ram, K.K. Birla, Rahul Bajaj, N.R. Narayana Murthy, Ratan Tata, Ramanathan Krishnan, Swami Agnivesh, Fali S. Nariman, Finance Minister Chidambaram and all former Prime Ministers. And of course Laloo Yadav!<br> <br> <font color="#006633"><b>Large Scale Notifications for Small Scale Industries</b></font><br> <br> A concerned senior citizen, in a mail to me, wonders why the exemption notifications for SSI units have to be so confusing and complicated. He laments that <b>everyone seems to be oblivious to the fact that vast majority of SSIs and tiny industries who avail these are run by individual entrepreneurs or petty partnerships who are either semi-literate or illiterate. Hence the notifications need to be simplified and put in clear terms.</b> He wonders if the Honourable Members of Parliament who are party to these notifications can comprehend them correctly. He cites the Notification No.9/2003-CE <br> <br> ''In exercise of the powers conferred by sub-section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts clearances, specified in column (2) of the Table below (hereinafter referred to as the said Table), for home consumption, of excisable goods of the description specified in the Annexure appended to this notification (hereinafter referred to as the specified goods), from so much of each of the duties of excise specified thereon in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (emphasis supplied) or the Second Schedule to the said Central Excise Tariff Act, as the case may be, as in excess of the amount (emphasis supplied)calculated at the rate specified in the corresponding entry in column (3) of the said Table: ……” <br> <br> <b>Should the SSI units go to a consultant to understand the meaning of this notification?</b> He suggests a simple language like <br> <br> <b>Clearances up to first Rs. 100 Lakhs in the year shall be invoiced at 60% of Standard Duty and the same paid to the Govt.<br> <br> Above Rs. 100 lakhs the clearances shall be invoiced at Standard duty and paid.</b><br> <br> <b>As simple as that? Or is it?</b>. He says that the Govt. should not mislead the SSIs stating it is a concession to them while it is actually a concession to the end purchasers if Section 11D is to operate concurrently. The SSIs can not be expected to know all the intricacies and may be trapped into litigations under Sec 11D.As the Govt. making these laws is Omniscient it is their duty to make these aspects clear in the notifications.<br> <br> <b>And imagine the plight of an SSI if the Government in exercise of its powers goes for retrospective legislation!</b><br> <br> <b>Have a nice weekend</b><br> <br> <font color="#FF0000"><b>Until Monday with more of DDT<br> <br> mail your comments to</b></font> <b>vijaywrite@taxindiaonline.com</b> <br> <br> <br> </font></p> </body> </html>