the untouched capture · TIOL-DDT 473

TIOL-DDT 473 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TI</font></b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">OL-DDT 
  473</font><br>
  19 10 2006<br>
  Thursday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Don’t 
  issue summons at the drop of a hat - CBEC</font></strong></font></p> 
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exercise 
  of the power to summon is a favourite hobby with the department. Now with Service 
  Tax spreading like chikungunya, summons are issued at the drop of a hat. Issue 
  of summons has been taken to ridiculous levels. There are officers who go to 
  the factories or offices to record statements after issuing a summons. If you 
  look at the date of summons, and the date of statement, you will see both of 
  them are same. When assessees visit the offices, they are given summons and 
  then statements are recorded. Many officers believe that a statement recorded 
  without summons is not valid. Many assessees are intimidated with the words 
  used in the summons like “judicial proceedings”. In Service Tax it has now become 
  common to summon the top executive to ‘furnish details of amounts received in 
  the last five years”. A clerk can do this job. The irony is that the law abiding 
  citizen is more harassed than the delinquent. If you obey the summons, you are 
  made to wait in the office for the whole day with not even a proper place to 
  sit, as was the experience of a Professor who is a big name in half a dozen 
  top universities of the world. The Service Tax officers who thought that he 
  was running a teaching shop and was evading Service Tax made him write an apologetic 
  statement that he evaded out of ignorance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Fortunately 
  these things are now noticed at the highest levels. Some time back the DGCEI 
  had issued a letter to all the Chief Commissioners </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It 
  has been recently brought to the notice of the Board that Summons under Section 
  14 of the Central Excise Act, 1944 are being issued to call for material evidence/documents 
  in a routine manner. The evidentiary value of securing documentary and oral 
  evidence under the said legal provisions can hardly be over emphasized. Nevertheless, 
  it is desirable that summons need not always be issued when a simple letter, 
  politely worded, can also serve the purpose of securing documents relevant to 
  investigation. Board has emphasized the use of summons only as a last resort 
  when it is absolutely required. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That’s 
  it! Why go for summons, when a simple letter would do the trick? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But 
  unfortunately such<strong> </strong>good deeds of the Board are kept a top secret. 
  Board should have given wide publicity to such trade friendly attitude.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2006/cxinstruct06.htm">F.No. 
  406/CF/15/2006 Dated 19.5.2006 of DGCEI</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Simultaneous 
  availment of SSI exemption and cenvat credit.</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can 
  an SSI unit avail full exemption for home consumption and still take credit 
  on the inputs used in the manufacture of export goods? Board had in Circular 
  No. 323/97,clarified that if the assessee wants to avail Modvat credit of duty 
  paid on inputs used in the manufacture of goods exported, such credit can not 
  be denied. Now it appears that there are doubts about the 1997 circular being 
  applicable to the present Notification No. 8/2003 and the good Board has clarified 
  that it is indeed applicable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The 
  Board’s letter says,</font></p>
<blockquote> 
  <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The 
    matter has been examined.  It is seen that the relevant condition of the erstwhile 
    notification No. 16/97-CE is similar to the one in<a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfexcise/pdf2003/etariff008.pdf"> 
    </a></strong></font><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfexcise/pdf2003/etariff008.pdf"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">notification 
    No. 8/2003-CE dated 01.03.2003</font></a><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 
    </font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>and</strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/etariff06_006.htm"> 
    </a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/etariff06_008.htm">notification 
    No. 8/2006-CE dated 01.03.2006</a></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>, 
    which prescribed that MODVAT / CENVAT credit paid on inputs used in the goods 
    cleared for home consumption cannot be taken for availing benefit of the notification. 
    In this context, Circular No. 323/39/97 – CX dated 14.07.1997 clarified that 
    SSI exemption for home consumption can be availed simultaneously along with 
    taking CENVAT Credit for the goods that are exported.  Notification No.8/2003 
    – CE and Notification No. 8/2006 – CE dated 01.03.2006 also debar availment 
    of CENVAT Credit on inputs used in the manufacture of goods cleared for home 
    consumption only.  Thus, it is hereby reiterated that the clarification given 
    vide Circular No. 323/39/97 – CX is applicable even in the context of the 
    notification No. 8/2003-CE dated 01.03.2003 and Notification No. 8/2006-CE 
    dated 01.03.2006.   </strong></font> </p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But 
  what is this notification No 8/2006? It is only an amendment to Notification  
  No.8/2003 and does not say anything about credit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But 
  Board deserves credit for issuing such clarifications. But again why is the 
  Board shy of such nice instructions. What should have been given good publicity 
  and circulated among all concerned has been silently informed in a letter to 
  the Chief Commissioners. There is something wrong with the Public Relations 
  of the Board; when they do something bad, they go out of their way to publicise 
  that and when they do something good, they are totally secretive about that.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2006/cxinstruct06.htm"> </a></strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2006/cxinstruct07.htm">CBEC’sF.No. 
  267/14/06-Cx.8 dated 1<sup>st</sup> June 2006.</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">CBI
         raids Kochi Air Customs</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Anything 
  to declare?”. This is what Customs officers all over the world ask passengers. 
  When a US Customs officer asked this question to Oscar Wilde, he replied, “nothing, 
  but my genius”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But 
  the Customs officers in Kochi International 
  Airport were in for a shock when the CBI sleuths pounced on them last night. 
  CBI is reported to have recovered 10 dollars from a Superintendent and 9 dollars 
  from an Inspector. However there was better recovery from a Sepoy – he had 200 
  dollars. It seems there was some high drama; a sepoy ran away and threw some 
  money in a waste basket from which after a hot chase, CBI recovered 100 Dirhams 
  and 100 rupees<strong>. </strong>The raid it appears continued till early morning.<b> 
  </b> </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Director, 
  Customs arrested</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A 
  Maldivian newspaper reported that a Director of Customs Service was arrested 
  last week for reported involvement in drug smuggling. It is reported that he 
  was detained for connections with the Hazash Pride, a ship belonging to the 
  company Apollo Holdings, which was found harbouring heroin.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It 
  was reported that the ship was seized on 1 October in <strong>Tutticorin</strong>, 
  <st1:country-region>India</st1:country-region>, and news of its 
  capture was broadcast on Maldivian television. TIOL tried to contact the Customs 
  Commissioner, Tuticorin to know if he had any idea about the ship. But he was 
  not available for comments and other officers had no idea.</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></span></font></p>


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