A Blank entry in the Tariff - CBEC wants to correct
The 8 digit classification for cotton corduroy fabrics is 58012210 and against which the rate of duty has not been mentioned in the Central Excise Tariff. Board thinks this to be an unintentional error. Do they make intentional errors too?
Board also thinks that the notification No. 29/2004 prescribes an effective rate of duty @4% and 2% Education Cess.
But can an exemption notification prescribe an effective rate for a product for which no tariff rate has been prescribed?
Now the Notification for exemption can be given by the Government, read Board but the Tariff can be amended only by Parliament and you know the Government/Board has scant respect for the wisdom of parliamentarians.
Now before making that amendment in the Tariff which will most probably smuggled into Parliament in the next Budget, God and Communists willing, the Board wants to know if there has been any terrible damage because of its careless drafting.
Board wants to know whether any manufacturer or importer has claimed nil duty or no duty on removal/import of said fabric for the period 1.3.2005 till date and if yes, the revenue loss amount may be specified. The report must be sent by 19th October positively.
Now Chief Commissioners don't exactly maintain a record of how much duty has been foregone, because Board forgot to mention the rate of duty in the Tariff. And the Board wants the report by 19th October!
Why do they waste so much paper and time? Why can't they just amend the Tariff and admit that there was a mistake, which is being corrected prospectively?
CBEC's F. No. 19/01/2007-CA-1 Dated : September 27, 2007