TIOL-DDT 62 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF" size="3">TIOL-DDT
62</font><br>
25 2 2005<br>
Friday</b></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>8-Digit Central Excise Tariff in three days?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>THE </b>Government continues to shy away from parting vital information that
may cause damage to the system, if assessees get to have information on important
laws. The 8 digit central excise tariff is most likely to come into force
from 28.2.2005. There is no press note, no publicity and no clarifications.
On 28th February, the Budget will be presented and along with it the new tariff
comes into force. In the best of times, the Board notifications and clarifications
are confusing and the Board is all set to beat its own record in this feat.
The Central Excise Tariff (Amendment) Act, 2004 (5 of 2005) is ready but the
Board is totally silent on this major change; maybe they want to give a surprise
to the assessees and officers.<br>
<br>
Though the Government has not yet notified the date from which the 8 digit tariff
comes into force, the four notifications issued yesterday indicate that the
new tariff comes into effect from 28.2.2005.<br>
<br>
1. Notification No. 1/2005 and 2/2005 Central Excise dated 24.2.2005 stipulates
that for all the notifications, the tariff headings in the old tariff shall
be substituted with the new tariff headings.<br>
<br>
2. Notification No. 3/2005 - Central Excise dated 24.2.2005, is an exemption
notification prescribing nil rates (and a couple of concessional rates) for
all the nil rated items as the present tariff.<br>
<br>
3. Notification No. <a href="http://taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=NDMzOA==" target="_blank"><strong>5/2005-CE(NT)</strong></a> dated 24.2.2005, wants the headings of the new
tariff substituted in the MRP based notifications.<br>
<br>
All these notifications are to be effective from 28.2.2005 and they mention
about the commencement of the <b>Central Excise Tariff (Amendment) Act, 2004
(5 of 2005)</b>. From this we can safely assume that the new tariff will come
into force from 28.2.2005! With four notifications, the Government has amended
over a hundred notifications substituting thousands of numbers. But who will
substitute and who knows what these numbers are? Hardly any one has seen the
new tariff.<br>
<br>
But don't worry, there is nothing to panic. The new Central Excise tariff
is almost identical to the Customs tariff. So get hold of the Customs tariff
for the headings, go back to the old Central Excise tariff, match the headings
and look for the rates of duty! Very Simple!!!<br>
<br>
But what causes concern is the totally irresponsible and unpredictable behaviour
of the Government. One day they justify 35% abatement to pharma products, the
very next day they increase it to 40% and the notification is not made available
to the public. Draft circulars are placed before the public and a huge tariff
is replaced and they don't tell anyone? Are we working in some sort of
emergency? Is the tariff some strategic defence secret? And should laws
be smuggled in unknown to the people who are affected by them? We, in Taxindiaonline
are ready to take the Government's laws to the people within minutes of
them being made available to us and though it costs us heavily to do this work,
we are offering all the new notifications in our free section, where any one
can access without even a formal log in, as a facilitation, we often find it
difficult to get hold of this legislation. In the olden days it used to take
thirty days for a notification to reach the field. Now we offer to take it there
within thirty minutes. But for some powers that be, thirty days seem to be good
enough. <b>DDT</b> fervently hopes that the Government in its magnanimity will
recognise that there is a big wide world beyond North Block, where things like
computers and internet exist and where matters speed. You can see all
the notifications in our <b>What's new</b> section.<br>
<br>
On a personal note, I had the privilege to have a peek at the draft of this
new tariff and I had offered some suggestions, which I am sure must have been
ignored with contempt.<br>
<br>
Incidentally, in the draft I saw, electricity finds a place in the tariff under</font></p>
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<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2716
00 00 </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ELECTRICAL
ENERGY</font></div></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <br>
Is it now excisable?<br>
<br>
<b><font color="#006633">Tariff value - brass scrap</font></b><br>
<br>
Tariff value for imported scrap increased to US Dollars 1542- <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2005/cnt05_019.htm">Notification
No. 19/2005-CUSTOMS (N.T.) Dated : February 24, 2005</a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006633">Foreign
Trade Policy</font></b><br>
<br>
Second Hand Diesel Generating Sets of 10 KVA and above shall be allowed to be
imported under EPCG Scheme without any age restriction. However second hand
photocopiers, air conditioners and diesel generating sets (below 10 KVA) etc.
are covered under the definition of 'second hand goods', and so
will not be allowed under EPCG - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2004/dgft04cir020.htm">POLICY
CIRCULAR NO.20 (2004-2009), Dated: February 23, 2005</a><br>
<br>
Export of gold jewellery including studded jewellery not be considered for calculation
of Export Promotion under Target Plus Scheme. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2004/dgft04not027.htm">DGFT
NOTIFICATION NO. 27/ 2004-09, Dated: February 23, 2005</a><br>
<br>
<font color="#006633"><b>Excise Day</b></font><br>
<br>
"In the early 90s, the department's legal wings used to do compilation
of all reported judgements. It would be helpful to counsel if the department
fed them with unreported cases. I find that such an exercise has not been taken
up by the Commissionerates. I hope the Chief Commissioners will take steps to
see that legal wings functioned in such a way that litigations were conducted
in a proper manner", said Additional Solicitor General of India V T Gopalan
addressing the Central Excise Day function in Chennai yesterday.<br>
<br>
<font color="#006633"><b>Felicitate or facilitate?</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central
Excise is so much into facilitation that at an excise day function, the compere requested
the chief guest to facilitate some officers, a couple of them Presidential awardees.
What she probably meant was felicitate.<br>
<br>
<font color="#006633"><b>Surat Rebate Scam - Excise blames banks </b></font><br>
<br>
Surat-I Central Excise Commissioner has written to the RBI against seven
banks including a nationalised bank and sought action against the banks and
bank officers for facilitating the scam. Bankers claim they have not done anything
wrong. The fact remains somebody walked off with crores of rupees in rebate
from Central Excise.<br>
<br>
<b><font color="#FF0000">Until Monday with more of DDT </font></b></font></p>
<p align="justify"><font color="#FF0000"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a Nice weekend.<br>
<br>
Mail your comments to</font></b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>vijaywrite@taxindiaonline.com </b>
</font></p>
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