TIOL-DDT 702 · the untouched capture
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<p><font size="2"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 702</font></b><font face="Verdana, Arial, Helvetica, sans-serif"><b><br>
19.09.2007<br>
Wednesday</b></font></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>North East exemption - no rebate</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nearly two years ago, we carried an article "<a
href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3570">Region specific exemption and rebate of duty - Having the cake and eating it too!!</a>"<b>.</b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see </strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4825" target="_blank"><u>DDT 532 15.01.2007</u></a></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5299" target="_blank">DDT 589 10.04.2007</a></u></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5302" target="_blank">DDT 590 11.04.2007</a></u></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5309" target="_blank">DDT 591 12.04.2007</a></u></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5320" target="_blank">DDT 592 13.04.2007</a></u></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5301" target="_blank">Area-based exemption - Double benefits theory may put exports in double jeopardy ! </a></u></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue is simple. The area specific exemption notifications work on a system of duty payment and later the duty paid in cash is refunded. Now if these duty paid goods from North East are exported, can the exporters claim rebate? First the board said they cannot; then the Board said they can and now the Board has issued a notification that in case of export of goods manufactured by availing the area specific notifications, no rebate will be allowed. It is no more the opinion of the board; it is now LAW!</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">TIOL</font></b> had covered the issue extensively covering the pros and cons, as all the above references would show. We rounded up the discussion with one of our illustrious writer's quip,<font color="#663399"> <b>Let us talk some basics. I am a manufacturer in north east clearing in DTA and exporting on payment of duty. At the end of the month I pay total duty liability by 5th of next month and paid some amount in <st1:stockticker
w:st="on">PLA after exhausting cenvat. How do I know whether the exports suffered duty from Cenvat or <st1:stockticker w:st="on">PLA ?</b></font></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=30&filename=notification/excise/2007/exnt07_37.htm" target="_blank">Notification No. 37/2007-Cex., (<st2:GivenName w:st="on">N.T.</st2:GivenName>),., Dated </a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2007/exnt07_37.htm"><st1:date ls="trans" Month="9" Day="17" Year="2007"
w:st="on"><u>September 17, 2007</u></a></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff Value of Brass Scarp - Decreased</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has decreased the Tariff Value of imported Brass Scrap from US $. 4622 to US$.4527. There is no change in the Tariff Value of other products.</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=24&filename=notification/custom/2007/cnt07_097.htm" target="_blank">NOTIFICATION NO. 97/2007-Cus.,(<st2:GivenName
w:st="on">N.T.</st2:GivenName>), Dated: <st1:date
ls="trans" Month="9" Day="17" Year="2007" w:st="on">September 17, 2007</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Delayed
payment of excise duty/Service Tax - higher rate of interest likely -
Board wants to study trend</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interest rates are rising and the government does not want to be left out. It wants a cut in the pie. CBEC has noticed that the Prime Lending rates (<st1:stockticker
w:st="on">PLR) of Banks currently is around 12.5% to 13.5%. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Obviously if you have to pay the bank 13.5% interest to borrow money to run your business, it makes perfect economic sense to borrow it from government by not paying taxes and duties. The current rate of interest for delayed payment of excise and customs duties and Service Tax is 13%. You save a half percent and you don't need to run around banks and produce all kinds of securities and sureties. Simply don't pay your taxes on the due dates, but pay them with interest when you can. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
the Government is not going to sleep too long. The Board is collecting Revenue
trends rather delay trends and if the <st1:stockticker w:st="on">PLR goes any step higher the interest rates for delayed payment of Customs, Excise and Service Tax are sure to go up. After all it is a market driven tax collection!</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Interest Rates for Customs and excise duties</b></font></p>
<div align=center>
<table width="450" border=1 align="center" cellpadding=3 cellspacing=0 class=MsoTableGrid>
<tr>
<td width=152 rowspan=2 valign=top class="Normal">
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Period from</b></font></p></td>
<td width=249 colspan=2 valign=top class="Normal">
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Interest rates</b></font></p></td>
</tr>
<tr>
<td width=104 valign=top class="Normal">
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Delayed Refunds</b></font></p></td>
<td width=145 valign=top class="Normal">
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Delayed payment of duty</b></font></p></td>
</tr>
<tr>
<td width=152 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29.05.1995</font></p></td>
<td width=104 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15%</font></p></td>
<td width=145 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20%</font></p></td>
</tr>
<tr>
<td width=152 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">01.03.2000</font></p></td>
<td width=104 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15%</font></p></td>
<td width=145 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24%</font></p></td>
</tr>
<tr>
<td width=152 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.05.2001</font></p></td>
<td width=104 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9%</font></p></td>
<td width=145 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24%</font></p></td>
</tr>
<tr>
<td width=152 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13.05.2002</font></p></td>
<td width=104 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8%</font></p></td>
<td width=145 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15%</font></p></td>
</tr>
<tr>
<td width=152 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.09.2003</font></p></td>
<td width=104 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6%</font></p></td>
<td width=145 valign=top class="Normal">
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13%</font></p></td>
</tr>
</table>
</div>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2007/interest.htm">CBEC Letter F. NO. F.No. <st1:date
ls="trans" Month="4" Day="6" Year="2007" w:st="on">4/6/2007-CX, Dated <st1:date ls="trans" Month="8" Day="30"
Year="2007" w:st="on">August 30, 2007</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From our Legal Corner - tomorrow's cases</b></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></b></b></font></b></font></strong></font></b></font></strong></font></p>
<p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:place w:st="on"><st1:PlaceType w:st="on"><b><font color="#663399">Institute of <st1:PlaceName w:st="on">Banking Personnel Selection is not a commercial concern -Service Tax demand of more than Rs one crore set aside by Tribunal</font></b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>IF <i>BCCI [</i></b><a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-684-CESTAT-MUM.htm"><font size="1">2007-TIOL-684-CESTAT-MUM</font></a><b><i>] & Breach <st1:PersonName w:st="on"><st2:GivenName w:st="on">Candy</st2:GivenName> <st2:Sn w:st="on">Swimming</st2:Sn> <st1:City w:st="on">Bath Trust [</i></b><a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2006/2006-TIOL-1468-CESTAT-MUM.htm"><font size="1">2006-TIOL-1468-CESTAT-MUM</font></a><b><i>] are not commercial concerns, then how can <st1:place w:st="on"><st1:PlaceType
w:st="on">Institute of <st1:PlaceName w:st="on">Banking Personnel Selection (IBPS) be one! </i></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nearly two years ago, we broke the news that IBPS has been granted a Stay by the Tribunal <b>[</b><a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2005/2005-TIOL-951-CESTAT-MUM.htm"><font size="1">2005-TIOL-951-CESTAT-MUM</font></a><b>] </b>from recovery of Service Tax of more than Rs one crore & assured our netizens that we would be the first to keep you posted on the further developments. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b><font color="#FF0000">Central Excise </font></b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Appeal filed by Commissioner himself, instead of through his authorised officer, is maintainable; even if there is a defect, it is curable : CESTAT Larger Bench</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">WHEN</font> </b>the Commissioner is required to authorise an officer to file the appeal, can he himself file the appeal? </font></p>
<p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax </b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>IT - Assessment order passed u/s 158BC without notice suffers from jurisdictional error and not valid in law - Between Special Bench and HC, High Court's decision has to be followed : ITAT</b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See our columns tomorrow for the judgments</u></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></font></p>
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