Duty on Jute Twine – retrospective exemption granted.
A little history.
25.05.2007, mentioned about an inadvertent omission which made jute twine dutiable all of a sudden. DDT has learnt that demand notices are already flying in West Bengal where majority of jute mills are located and the fire is fast spreading. Unless the Government attempts to stop it in the beginning, it is bound to be a big forest fire.
DDT 638 19.06.2007 mentioned,
We are very happy to report that the Government has very graciously understood the problem and has stopped the big forest fire. Now they have issued a notification whereby Twine of jute or other textile bast fibres of heading 5303, is exempted from the whole of the duty.
This brings a lot of cheer to the harassed jute manufacturers of Kolkotta and other places. Reports have reached us that after seeing our flash yesterday, dancing assessees have gone to Central Excise offices and distributed sweets.
The CBEC deserves all praise for correcting this inadvertent lapse, but but there is another problem.
It is now exempted; but what about the last five and a half months when there was no exemption? The Government has to give a Section 11C notification and they will ultimately give it. May be after hundreds of Show Cause Notices are issued and many consultants have made enough money! Why can't they do it now and save this country some paper and a lot of time of the department and the rest of us. Already a Central Excise officer called us up and informed us that this exemption only proves that duty had to be paid till now and he is going to issue Show Cause Notice immediately even alleging suppression and intent to evade duty!
We will be happy to report as soon as possible that the exemption is with retrospective effect from 1.1.2007.
Well, we are happy to report that Board has finally issued the 11C Notification, ten months after we reported the lapse. Well it takes time to rectify a lapse! Anyway, thank you Board for putting to rest several SCNs .