TIOL-DDT 71 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body bgcolor="#FFFFFF">
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF" size="3">TIOL-DDT
71</font><br>
10 3 2005<br>
Thursday</b></font></p>
<p align="center"><b><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
Is it falling or failing?</font></b></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>THE</b> new 8 digit Central Excise Tariff is already ten days old and already
the first amendment has come. The General Rules for the interpretation of the
Tariff explains how classification is to be done.<br>
<br>
Rule 2(a) of the Rules for Interpretation stipulates that<br>
<br>
2. (a) Any reference in a heading to an article shall be taken to include a
reference to that article incomplete or unfinished, provided that, as presented,
the incomplete or unfinished article has the essential character of the complete
or finished article. It shall also be taken to include a reference to that article
complete or finished (or <font color="#FF0000"><b>falling</b></font> to be classified
as complete or finished by virtue of this rule), presented unassembled or disassembled.<br>
<br>
If you find it difficult to understand the above extracted rule, don’t
blame the Indian Law makers; it is an identical copy of the WCO Customs Tariff.
These are the Rules used all over the world. “<b><font color="#FF0000">Falling</font></b>
<b>to be classified</b>” appears to be a wrong usage and does not really
convey any meaning. Perhaps it is “ <font color="#FF0000"><b>failing</b></font>
<b>to be classified”</b>.<br>
<br>
While most of the nations have copied the WCO version, there are indeed a few
countries which have used <b>‘failing’ instead of ‘falling’</b>.
Indonesia, Pakistan, EU and a few other countries have their Rule 2(a) as follows:-<br>
<br>
2. (a) Any reference in a heading to an article shall be taken to include a
reference to that article incomplete or unfinished, provided that, as presented,
the incomplete or unfinished article has the essential character of the complete
of finished article. It shall also be taken to include a reference to that article
complete or finished (or <font color="#FF0000"><b>failing</b></font> to be classified
as complete or finished by virtue of this rule), presented unassembled or disassembled<br>
<br>
Even USA had it as <b>failing</b> till the amendment of 2005, when they also
followed the <font color="#FF0000"><b>falling</b></font> style of WCO.<br>
<br>
I took up, the issue with the WCO and suggested to them that perhaps the correct
word is <font color="#FF0000"><b>failing</b></font> and not <font color="#FF0000"><b>falling</b></font>.
They were kind enough to reply to me, but informed me that the original draft
with them shows it as <font color="#FF0000"><b>falling</b></font> and not <font color="#FF0000"><b>failing</b></font>.<br>
<br>
It is open to netizens of TIOL to decide whether it is falling or failing. We
will be happy to get your opinions. <br>
<br>
<font color="#006633"><b>Are Excisable goods presented?</b></font><br>
<br>
Read the same Rule 2(a) again.<br>
<br>
2. (a) Any reference in a heading to an article shall be taken to include a
reference to that article incomplete or unfinished, provided that, as <font color="#FF0000"><b>presented</b></font>,
the incomplete or unfinished article has the essential character of the complete
or finished article.<br>
<br>
This rule speaks of goods being <b>presented</b>. Imported goods are presented
before the Customs officer for assessment, but manufactured goods are not presented
before the Central Excise officer for classification or assessment. Then where
and before whom are these goods to be presented? Straight lift from Customs
may not always be a good policy.<br>
<br>
<font color="#006633"><b>Government amends the new Tariff</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
As per Section 3 of the CETA, 1985, the Government can, by notification increase
the rates of duties in the Tariff. This is a very little known provision and
very rarely used provision. Within 7 days of the coming into force of the new
Tariff, the Government has used this provision and by notification imposed a
duty of 16% on 5806 32 00. This is basically to correct a mistake in the new
tariff.<br>
<br>
As per Section 5 of the CETA, 1985 (as amended in 2005), the Government can
amend the schedules to the Tariff by notification. The Government has used this
seven days old power to change the chapter note regarding motor vehicles. But
the notification invokes Section 3 and not Section 5. <br>
<br>
See <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=29&filename=notification/excise/2005/etariff05_014.htm">NOTIFICATION
NO 14 /2005- Central Excise, dated March 7, 2005</a></font></p>
<table width="450" border="0" cellspacing="0" cellpadding="5">
<tr>
<td><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tax LAWS
have been simplified beyond all levels of understanding.</b></font></td>
</tr>
</table>
<div align="center"></div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<br>
<font color="#FF0000"><b>Until tomorrow with more of DDT </b></font></font></p>
<p align="justify"><font color="#FF0000"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a Nice Day<br>
<br>
Mail your comments to</font></b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>vijaywrite@taxindiaonline.com </b><br>
</font></p>
</body>
</html>