TIOL-DDT 481 · 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">TIOL-DDT
481</font><br>
01 11 2006<br>
Wednesday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Namkeen</font></strong><font color="#006600"><strong>,
Bhujia, PalakPanner – delicious exemptions?</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
proposes to issue a clarification regarding excise exemption to such tasty
things like Namkeen, Bhujia, Palak Panneer etc<strong>, </strong>Sr. No.
29 and Sr. No.30 of the <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/etariff06_003.htm">notification
No. 3/2006-CE </a>grant following exemptions:</font></p>
<table width="450" border=1 align="center" cellpadding=3 cellspacing=0>
<tr>
<td width=55 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.
No.</font></strong></p></td>
<td width=108 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter
or heading or sub-heading or tariff item of the First Schedule</font></strong></p></td>
<td width=300 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description
of excisable goods</font></strong></p></td>
<td width=48 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rate</font></strong></p></td>
</tr>
<tr>
<td width=55 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1)</font></strong></p></td>
<td width=108 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2)</font></strong></p></td>
<td width=300 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3)</font></strong></p></td>
<td width=48 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4)</font></strong></p></td>
</tr>
<tr>
<td width=55 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29.</font></p></td>
<td width=108 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2106
90</font></p></td>
<td width=300 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sweetmeats
(known as ‘misthans’ or ‘mithai’ or by any other name), namkeens, bhujia,
mixture, chabena and similar edible preparations in ready for consumption
form, papad and jaljeera</font></p></td>
<td width=48 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil</font></p></td>
</tr>
<tr>
<td width=55 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">30.</font></p></td>
<td width=108 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2106
90 99</font></p></td>
<td width=300 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ready
to eat packaged food</font></p></td>
<td width=48 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8%</font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
goods like namkeen, bhujia etc, can fall under both Sl. No. 29 and 30 of the
above table. Then will they be exempted or should they pay 8%? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
proposes to clarify that as the same items fall under two entries of the notification,
<strong>the exemption of nil rate of duty would be available to goods covered
by Sr. No. 29 of the notification, even when the said goods are also covered
by Sr. No.30. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the clarification
is to come with a rider. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, if the
goods are ‘ready to eat packaged food’ falling under tariff item 2106 90 99
but which are not covered by the description provided at Sr. No. 29, then the
effective rate of duty will be 8% as provided at Sr. No. 30. Examples of some
of such items are ‘alu-mutter’, ‘palak-paneer’, etc., which are sold in packaged
condition and are consumed directly after <b>heating</b>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
here, is the Board’s objection to heating? If I choose to eat Palak Panneer
without heating, will it fall under Sl. No.29? Should I give a solemn declaration
before buying the packet that for love, money or exemption, I will NOT heat
the panneer?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If
you want your panneer to be exempted, please write to the Board at <a href="mailto:dscx4cbec@yahoo.com">dscx4cbec@yahoo.com</a></span> before
10.11.2006</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/Namkeen_Bhuja.htm">Board’s
F.No. 21/6/2006 – CX.1</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">J&K</font></strong><font color="#006600"><strong>
refund scheme applicable to Kutch, <st1:place><st1:country-region>Sikkim</st1:country-region></st1:place>
and North East</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notifications Nos.
56/2002 and 57/2002 Central Excise, both dated 14.11.2002exempting goods in
J&K provide for granting the exemption by a scheme of refund. Board had
earlier in 682/73/2002 dated 19.12.2002 clarified that provisions of Section
11B are not applicable to this refund as the “Refund” envisaged in the notifications
is not on account of any excess payment of excise duty by the manufacturers,
but is basically designed to give effect to the exemption. In other words, the
mechanism has been adopted to operationalize the exemption envisaged in these
two notifications.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there is a
doubt whether this clarification will apply to the refund granted for the Kutch,
<st1:country-region><st1:place>Sikkim</st1:place></st1:country-region> and North
East exemptions. Board proposes to clarify that there is no doubt at all and
the clarification is applicable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If
you don’t agree with the Board, please tell them at <a
href="mailto:dscx4cbec@yahoo.com">dscx4cbec@yahoo.com</a></span> before 10.11.2006</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/Namkeen_Bhuja.htm">Board’s
F.No. 04/06/2006-CX.I</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">SSI</font></strong><font color="#006600"><strong>
and Cenvat – both eligible</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently
Board had clarified that an SSI unit is eligible for taking credit in respect
of inputs used in the manufacture of export goods. The <st1:place>AAR</st1:place>
gave a ruling that an SSI unit can take the credit of capital goods. But can
an SSI unit avail SSI benefit for its own goods and take credit in respect of
branded goods?. Please see our CESTAT case and an incisive analysis in today’s<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4466">
<u>Breaking News.</u></a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Airports
Authority of <st1:country-region><st1:place>India</st1:place></st1:country-region>
alleges harassment and threat and goes to High Court without permission from
COD</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps
it is only the Revenue Ministry that knows that you have to get clearance from
the Committee On Disputes before going to court against a government department
or organisation. After all they contribute enormously to litigation in the country.
The other day I was witness to an advocate arguing a writ in the High Court
for a leading Public Sector Bank against a Central Government department. Suddenly
the judge asked him, “Do you have permission from the Committee?”. “What Committee
my lord?”, he asked, “my bank has authorized me!” . He was obviously not aware
that such permission is required. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
appears the AAI is also in a similar situation. After voluntarily paying Rs.20
Crores as Service Tax, the AAI took the government to court alleging that the
amount was paid due to harassment and threat of arrest and they forgot to take
permission from the COD. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Isn’t
it a very serious matter that a very large Government Authority alleges that
another organ of the Government harassed it and threatened with arrest? Incidentally
there is no arrest under Service Tax. But it is a fact that very often Central
Excise officers threaten Service Tax assesses with arrest and force them to
make spot payment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please
see our <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4468">Breaking
News</a> </u>for more details. </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Tariff
value for brass scrap enhanced</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value for
brass scrap has been increased from<strong> </strong>4492 to 4663 US Dollars.
There is no change in the Tariff Values of other items. </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=24&filename=notification/custom/2006/cnt06_112.htm">NOTIFICATION
No.112/2006-CUSTOMS (N.T.), Dated: October 31, 2006</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Approval
of authorized operations in SEZ</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government
has notified operations which will be approved in the SEZs and they include</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
Roads with Street lighting, Signals and Signage</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Water treatment plant, water supply lines, sewage lines, storm water drains
and water channels of appropriate capacity </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
Sewage and garbage disposal plant, pipelines and other necessary infrastructure
for sewage and garbage disposal and Sewage treatment plants</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
Electrical, Gas & PNG Distribution Network including necessary sub-stations
of appropriate capacity, pipeline network etc </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
Security offices and police posts at entry, exit and other points within and
along the periphery of the site. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
Effluent treatment plant and pipelines and other infrastructure for Effluent
treatment</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.
Office space/Shopping arcade/Retail space/multiplexes </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.
Housing</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.
Hotel </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.
Clinic /<st1:place><st1:PlaceName>Medical</st1:PlaceName> <st1:PlaceType>Centers</st1:PlaceType></st1:place>
/ Hospital</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.
School/Technical Institution/Educational Institution</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.
Parking including Multi-level car parking (automated / manual)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13.
Access control and Monitoring system</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14.
Telecom and other communication facilities including internet connectivity</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.
Rain water harvesting plant</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16.
Power ( including power back up facilities) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17.
Swimming pool</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18.
Fire Station, Fire protection system with sprinklers, fire and smoke detectors</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19.
Rail head within the SEZ</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20.
Port</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21.
Airport/Air Cargo Complex</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">22.
ICD</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">23.
Banks</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24.
Recreational facilities including club house, Indoor/outdoor games and gymnasium.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">25.
Employee welfare facilities like ATMs, Creche, Medical center and other such
facilities </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26.
Play grounds </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27.
Golf course</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">28.
Bus bays</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29.
Food Services including Cafeteria, food court(s), Restaurants, coffee shops,
canteens and catering facilities</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">30.
Landscaping and water bodies </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">31.
WiFi/Wi Max Services</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">32.
Drip and Micro irrigation systems </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=259&filename=sez/sez_notifications/2006/sez06noti.htm"> Notification
in (F.No. 1/7/2006-SEZ) Dated : October 27, 2006</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Punjab
National Bank authorized to collect excise and Service Tax in Ahmedabad</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19 branches of
the PNB have been authorized by the Principal Chief Controller of Accounts to
collect excise duty and Service Tax in Ahmedabad. Permission is only to collect
excise and Service Tax and customs duties. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Accounts Chief
has instructed the bank that </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ It should
ensure that, challans are duly checked by their receiving branches before
accepting the payments i.e. the challans are complete in all respects and
the assessee correctly quote on the challan their PAN based 15 digit Assessee
code.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ It will be
responsible for submission of scrolls and challans Major Head-wise (Separate
for Central Excise and for Service Tax) separately on daily basis to Pay &
Accounts Officer, Central Excise, Ahmedabad and settlement of funds with the
RBI, CAS Nagpur through their Link Cell at Nagpur.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Bank should
also comply with all the guidelines and instructions issued by RBI from time
to time regarding collection and remittance of Funds to RBI, CAS, Nagpur within
the prescribed time limit.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Any delay
in remittance to RBI, CAS, <st1:City><st1:place>Nagpur</st1:place></st1:City>
beyond the permissible time limit would attract payment of delayed period
interest.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>++ The performance
of the Bank will be reviewed periodically. In case of poor performance during
a sustained period, authorisation to collect revenue may be withdrawn.</b></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/trade_notice.htm">Coord
II/9-7/M.Banking/2005/480 - Dated : October 6, 2006 of the Pr. Chief Controller
of Accounts</a></u></font></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Laws
for the regulation of trade should be most carefully scanned. That which hampers,
limits, cripples and retards must be done away with.</font></b></font>
<p align=center><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(Elbert
Hubbard)</b></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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