To be or not to be - That is the question

By Vijay Kumar

In the maze of budget notifications and analysis, should there be a DDT today?

Let's do a quick run through the procedural aspects.

1. Settlement commission can send back the case to the Tribunal if the applicant does not cooperate.

2. Board abdicates yet another responsibility. Orders by Commissioners to be reviewed by a committee of Chief Commissioners instead of the Board. In DDT 8 it was pointed out that the review is any way done by the Chief Commissioner. This system of review by two Chief Commissioners is a welcome step as officers are known to be more judicious in a group than when alone.

Central Excise

Exemption mandatory - There has been a dispute as to whether an assessee can choose to pay duty when the goods are exempted. Now the law is amended to make it mandatory for the assessee to avail the exemption without a choice of payment of duty.

Retrospective Legislation - A budget without a retrospective amendment is just unthinkable.

1. Rule 57CC amended retrospectively - The controversial Rule 57CC is back in news. The demands of the 8% amount were set aside by Tribunal on the ground that there was no machinery provision to collect this amount. The Board did bring in the machinery provisions. But the Tribunals are not very obedient to Board's wishes and have agreed to this amendment only prospectively. But the Board has the last laugh - amend the law retrospectively.

2. Credit of AED - There was absolute confusion on credit of AED for certain periods. And the Board also was not all that sure about it. But now they are - that it should be collected with retrospective effect.

3. Rural Area benefit extended - Critics of the government will be surprised to find a retrospective legislation in favour of the assessee - See our Lijjad Papad Story.

4. Refining oil amounts to manufacture - When we reported the Shyam Oil case - 2004-TIOL-93-SC-CX-LB. that refining does not amounts to manufacture, we had made it clear that it does not apply now and was applicable in a bygone Era. What does the Board do when it does not like the Supreme Court order? You guessed it right.

No concessional rate of duty for SSI's - In a hard-hitting move to the SSIs, Notification No. 9/2003 has been rescinded - Please See our SSI Story.

Service Tax

Deputy Assistant Commissioner on the way - Remember our report on Cadre restructuring in the department and the proposal to designate senior superintendents as Deputy Assistant Commissioners. Now these Deputy Assistant Commissioners will be empowered to issue Show Cause Notices and adjudicate cases under service tax. And the law has been amended to empower any Central Excise Officer to issue Show Cause Notices and adjudicate cases. Now there will be an Army of adjudicators for service tax and within the next two years thousands of orders will be in appeal before Commissioners (Appeals). To clear the backlog of these appeals you need to create more posts of Commissioners. So in the next cadre review we can expect another hundred or so posts of Commissioners. Bright promotion chances!

Goods Transport - Register before 31st March 2005. 3/2005-Service Tax, Dated : February 26, 2005

The table below gives you an overall picture of the Budget Notifications.

Central Excise Tariff

Central Excise (N.T.)

SERVICE TAX

CUSTOMS TARIFF