TIOL-DDT 86 · the untouched capture
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<div class=Section1> <b><font color="#0000FF" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
86</font></b>
<p></p>
<font color="#0000FF" size="3" face="Verdana, Arial, Helvetica, sans-serif"><b>01 04 2005<br>
Friday</b></font>
<p></p>
<p align="center"><b><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Consignment
wise payment of duty and scrutiny of returns – back</font></b></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Why
excise laws are subject to frequent tinkering?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Central Excise Rules, 1944 were in action for over half a century and were
more or less settled, when somebody in the Board had a bright idea that these
rules had to be broken up into several pieces and confusion increased so that
the assessees and the officers will not have peace of mind. So by Notification
No. 9/2001-C.E. (N.T.), dated 1-3-2001, the Central Excise Rules, 2001 were
notified to be effective from 1.7.2001. But these rules had a premature death,
one day before birth on 30.6.2001, when the Central Excise (No. 2) Rules,
2001 were brought into force. These rules lasted less than a year when the
Central Excise Rules, 2002 were brought in with effect from 1.3.2002. And
these rules have undergone over a dozen amendments in the last three years,
mostly to bring back the provisions the law makers forgot to include. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Somewhere
down the line, the Government brought in a fortnightly and later a monthly
payment of duty destroying the discipline in the industry of paying the duty
before clearance. An assessee would never clear goods if he did not have enough
money to pay the duty. Once he was allowed to pay duty on a monthly basis,
problems started creeping in. Liquidity problems would prevent the assessee
from being able to pay the whole month’s duty at the end of the month and
naturally there were defaults which worried the Government. There was a provision
in the 2001 Rules to make defaulters pay on consignment basis and that too
from PLA. Now the Government has brought back the same provision. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per the latest amendment to the Central Excise Rules;</font></p>
<ol start=1 type=1>
<li style='text-align:justify; '><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
interest payable for default of monthly payment is reduced from the present
24% or one thousand per day. It will now be the interest as per Section
11AB which is now 13%. </font></li>
<li style='text-align:justify; '><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> If
the assessee does not pay the defaulted amount within thirty days, he will
lose the facility of monthly payment for two months or till the dues are
paid, during which period he has to pay in PLA consignment wise. For this,
the Assistant Commissioner is required to give an order. Assistant Commissioners
can now keep themselves busy with adjudication of these cases.</font></li>
<li style='text-align:justify; '><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
new rule – 12(3) – has been inserted to provide for scrutiny of the returns
by the proper officer in a manner to be prescribed by the Board. </font></li>
<li style='text-align:justify; '><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
has been made mandatory for the assessee to make available the records wanted
by the Proper Officer. (Was it not required earlier?)</font></li>
<li style='text-align:justify; '><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Assessees
and dealers are required to produce the authorized officers a list of all
their records relating to raw materials, production clearance and financial
records including statements of trial balance! This kind of rule was in
force for the last fifty years but is totally ignored, for the simple reason
that it is not practically feasible. Imagine a major steel plant spread
over hundreds of acres. Who will have a list of all the records maintained
by this company?</font></li>
</ol>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To
be fair to the Government the draft rules were published for public scrutiny.
<b>The government should seriously think of bringing back the Central Excise
Rules, 1944. </b></font></p>
<p class=c-t1><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Settlement
Commission- DGFT v CBEC </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para
2.46 of the Foreign Trade Policy stated that default of Export Obligations
under the FTP would be brought under the purview of the Settlement Commission
with effect from 1.4.2005. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With
a view to providing assistance to firms who have defaulted under the Foreign
Trade Policy for reasons beyond their control as also facilitating the merger,
acquisition and rehabilitation of sick units, it has been decided to empower
the Settlement Commission in the Central Board of Excise and Customs to decide
such cases also with effect from 01.04.2005.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT
13, on 20.12.2004 had pointed out that CBEC had in a circular clarified that
Settlement Commission had no jurisdiction to settle Export Obligation disputes.
But Settlement Commission had been settling such disputes and incidentally
the Madras High Court had upheld one such settlement. In DDT 13, we had hoped
that the DGFT will in consultation with CBEC clarify this position at least
before April 2005. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
has indeed clarified the position one day before the deadline. Now DGFT states
that as far as Customs duty and interest are concerned, the Settlement Commission
has to be respected, but the Licensing Authority can still proceed against
the exporter under the Foreign Trade (Development & Regulation) Act, 1992
for imposition of penalty. This is the kind of confusion that two ministries
dealing with the same subject can cause. The Policy is announced by the minister
is only for the pink papers to analyse, the policy really is what the Babus
later decide. - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2004/dgft04cir025.htm">Policy
Circular No. 25 /2004-2009 Dated : March 30, 2005</a></u></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Adoosa
appointed a customs station</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> </b>
</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Adoosa in Baramulla
District is appointed a customs station for import from <st1:country-region
w:st="on"><st1:place w:st="on">Pakistan</st1:country-region>.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2005/cnt05_025.htm">NOTIFICATION.
No. 25/2005-CUSTOMS (N.T.) dated 30.3.2005</a></u></b></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff
values hiked for palm oil, brass scrap etc. </b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government
has hiked the Tariff values for these products</font></p>
<div align=center>
<table border=1 cellspacing=0 cellpadding=0 width=372>
<tr>
<td width=172 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Description
of goods</b></font></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff
value US$ (Per Metric Tonne)</b></font></p></td>
<td width=54 valign=top class="Normal"> </td>
</tr>
<tr>
<td width=172 valign=top class="Normal"> <p align=center style='text-align:center;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(3)</b></font></p></td>
<td width=146 valign=top class="Normal"> <p align=center style='text-align:center;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(4)</b></font></p></td>
<td width=54 valign=top class="Normal"> <p align=center style='text-align:center;'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>5</b></font></p></td>
</tr>
<tr>
<td width=172 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Crude Palm Oil </font> <p></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">423</font></p></td>
<td width=54 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">400</font></p></td>
</tr>
<tr>
<td width=172 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
RBD Palm Oil </font> <p></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">429</font></p></td>
<td width=54 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">415
</font></p></td>
</tr>
<tr>
<td width=172 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Others – Palm Oil </font> <p></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">426</font></p></td>
<td width=54 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">410</font></p></td>
</tr>
<tr>
<td width=172 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Crude Palmolein </font> <p></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">432</font></p></td>
<td width=54 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">412
</font></p></td>
</tr>
<tr>
<td width=172 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
RBD Palmolein </font> <p></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">438</font></p></td>
<td width=54 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">425
</font></p></td>
</tr>
<tr>
<td width=172 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Others – Palmolein </font> <p></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">435</font></p></td>
<td width=54 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">420
</font></p></td>
</tr>
<tr>
<td width=172 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Crude Soyabean Oil </font> <p></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">558</font></p></td>
<td width=54 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
535 </font> <p></p></td>
</tr>
<tr>
<td width=172 valign=top class="Normal"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Brass Scrap (all grades) </font> <p></p></td>
<td width=146 valign=top class="Normal"> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1665”</font></p></td>
<td width=54 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1542
</font></p></td>
</tr>
</table>
</div>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The pre- revised
tariff values are given in Col.5.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>NOTIFICATION.
No. 26/2005-CUSTOMS (N.T.) dated 31.3.2005</u></b></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>VAT
is today!</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF0000">Until
Monday with more of DDT<br>
</font></b></font><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Have
a Nice weekend<br>
Mail your comments to <a
href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>
</b></font> </p>
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