TIOL-DDT 961 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 961</font><br>
29.09.2008 <br>
Monday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs Tariff Amendment – by Notification! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Customs Tariff is amended by a Non-Tariff Notification! Strange? Not really! There is a belief among the trade and the Revenue Department officers that the Customs Tariff Act is a Parliament Legislation and only Parliament can amend it. The fact is even the Government can amend it! As per Section 11A of the Customs Tariff Act, the Government has the power to amend the First Schedule to the Customs Tariff Act by Notification, but this should not change the duty rates – so the Government can tinker only with heading numbers and description, but not duty rates. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But does it mean that the Government cannot change the duty rates? As is well known, Government can always reduce the duties by giving exemptions, but can the government increase the duty by a Notification? It can – as per Section 8 and 8A of the Customs Tariff Act! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has exercised the power under Section 11A and amended the First Schedule to the Customs Tariff Act. Several headings are changed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now in the Central Excise Tariff, most of the items are aligned with the Customs Tariff – Government seems to have not amended the Central Excise Tariff accordingly – or they might have and the notification is somewhere in the pipeline. If it is, we will bring it to you soon. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_109.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification NO. 109/2008 – Cus ( N.T. ) Dated: September 24, 2008 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of Dairy Products from China - Prohibited </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT </strong> had carried the news with the DGFT Notification No. 46/ dated 24.09.2008. The CBEC wants the field formations to take further action in the matter. They have also communicated to the field, an Advisory of the Food Safety & Standards Authority of India issued vide their Advisory No.1 / FSSAI /2008 dated 24.9.2008 on the steps to be taken in the context of contamination of milk in China. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/ban_import_Dairy.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC F. NO. F.No.528 /5/2007- Cus.TU Dated: September 24, 2008 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EPCG - Issue of installation certificate for capital goods – CBEC instructions </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Para 5.3.2 of the Hand Book of Procedures( HBP ) ( Vol -I), [RE- 2008-09], the Authorisation holder under the EPCG Scheme shall produce to the concerned Regional Authority, a certificate from the jurisdictional Central Excise Authority, confirming installation of capital goods at factory premises of Authorisation holder or his supporting manufacturer(s) /vendor (s) within six months from the date of completion of imports </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has now prescribed certain guidelines:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) The certificate shall be issued by the Jurisdictional Central Excise officers only if the unit where the capital goods are installed is registered with the Central Excise Authorities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) The authorisation holder seeking such a certificate shall intimate the fact of installation of the capital goods imported under EPCG scheme to the jurisdictional Superintendent of Central Excise and obtain a dated acknowledgement. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) The Superintendent shall verify and give the certificate within thirty days and if it is not given, the acknowledgement will be deemed to be the certificate. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the field and trade to be informed accordingly and the Board to be informed if there are any difficulties. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The amended Handbook Of Procedure was issued on 11 th April 2008 and the Board has come with the guidelines after nearly six months! And this provision was there in the Policy for the last eight years or so! </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/cuscir08_14.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular NO. 14 /2008- Cus., Dated: September 26, 2008 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Authentication of supply invoice by the Central Excise Authorities for Claiming Deemed export benefits </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The applications for Deemed Exports benefits are to be accompanied with a copy of the invoice or a statement of the invoices duly signed by the unit receiving the material and their jurisdictional Central Excise Authorities certifying the item of supply, its quantity, value and date of such supply. It is also stipulated that, in no case the endorsement by Central Excise Authority shall exceed 21 days from the date of delivery of such supply. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has issued similar instructions as given in Circular No 14 mentioned above. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One wonders what the guidelines were during the last six months! </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/cuscir08_14.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular NO. 14 /2008- Cus., Dated: September 26, 2008 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Digital Display Board at CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Eastern Zonal Bench of CESTAT at Kolkata has installed a Computerised Digital Display Board at the entrance of the CESTAT office on the 7th Floor of Central Revenue Building at 169, AJC Bose Road, Kolkata. The Court Master keys in the Appeal Number and the Cause Title of the case being heard at any point of time by the Bench in his computer inside the Court Room and the details are digitally displayed on a Special Electronic Board placed at the entrance of the CESTAT for information of the appellants and their lawyers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Eastern Zonal Bench of the CESTAT is also in the process of setting up a second Court Room which will enable a second Bench to function simultaneously. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These are simple inexpensive experiments which would result in better administration, but one should also ensure that these gadgets do work, as they are prone to frequent breakdowns and at least in the beginning, don't rely on the digital display – what if the Court Master forgets to key in the number? Will your case be dismissed for non-attendance? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/cuscir08_14.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular NO. 14 /2008- Cus., Dated: September 26, 2008 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EOUs -CENVAT Credit on the duty paid on Capital goods at the time of de-bonding to be allowed </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT </strong> had carried this on Friday, to which a studious Netizen who virtually researches taxes, adds. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It's wonderful to see the circular of 1996 and the case law in 2007 which explained why the recent notification allowing credit of duty paid at the time of debonding . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I want to supplement it by saying that even without reference to the circular and the case law, the present position seems to be: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You pay <em> Duty </em> under Notification No. 52/2003 – Cus at the time of debonding whereas you pay <em> amount equal to central excise duty </em> under Notification No. 22/2003- CX . Since the amount paid under 22/2003 is not duty, there is every reason for the department to disallow the credit while they cannot do so for amount paid under 52/2003 which is a duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now with this amendment, both the things would be allowed as credit and both have legal sanctity. Hope you think this is interesting </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Jamnagar chamber of Commerce and Industries seeks extension of last date for filing IT Returns </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Jamnagar chamber of Commerce has requested the CBDT to extend the last date for filing Income Tax Returns for the following among other reasons:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Banks were on strike for two days last week and 30 th is a holiday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Saurashtra region is facing severe floods (with uninterrupted power failure) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Many tax payers are not aware that the last date for filing return has been advanced from 31 st October to 30 th September. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They are asking for only ten days extension, which the Board should consider </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">– Tomorrow's cases</font></strong></font></p>
<p><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Arrest under Customs Act – offence being bailable , accused has a right for bail – Court cannot impose condition of surrender of passport or bar on foreign travel – Bail has to be given even if he is not able to give surety: Bombay High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The position of the law is that a person who is alleged to have committed a bailable offence has an unfettered and absolute right to be enlarged on bail and the Court or the Police Officer concerned, as the case may be, has no discretion to grant or refuse bail. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The condition of requiring a person accused of a bailable offence to surrender his passport to the Court is not a term as to bail. If in such a case a condition is imposed that bail is granted subject to condition of deposit of passport, such a condition will defeat the absolute right of the accused under section 436(1) of the said Code to be set at liberty. In the circumstances, while enlarging the Petitioner on bail in a bailable offence, the Magistrate has no jurisdiction to direct deposit of the passport. The Magistrate cannot impose a condition while granting bail in a bailable offence of not leaving India without the permission of the Court. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Search - Disclosure statements recorded u/s 132(4) - Additions made merely on basis of admission of assessee, later retracted, not sustainable unless Revenue gets corroborative evidence for the same: Gujarat High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If a statement is recorded at odd hour, and it is subsequently retracted and some evidence is produced contrary to such admission, then there is no reason not to disbelieve the retraction. But if supporting evidence is not collected by the Revenue, additions cannot be made merely on the basis of statements recorded during the search. </font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CESTAT </strong></font></p>
<p><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CESTAT order carries no date – is it valid? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule 26 of the CESTAT Procedure Rules, 1982 is reproduced below: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“RULE 26. Every order of the Tribunal shall be in writing and shall be <strong>signed and dated </strong>by the Members constituting the Bench concerned. Last date of hearing of the matter shall be typed on the first page of the order. If the order is dictated on the Bench, the date of dictation will be the date of the final order. If the order is reserved, the date of final order will be the date on which the order is pronounced. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In cases, where gist of the decision is pronounced without the detailed order, the last para of the detailed order shall specify the date on which the gist of the decision was pronounced. In such cases, the date of the final order shall be the date on which all the Members of the Bench sign the order. If they sign on different dates, the last of the dates will be the date of the order”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>It is a universally known fact that the Tribunals are clogged with cases and there is no sign of any let up in this regard, with a majority of the cases at the lower levels invariably reaching the Tribunals for redressal and relief. While the Members are busy disposing of tonnes of cases on a daily basis by passing final orders, stay orders and miscellaneous orders, it becomes the responsibility of the Tribunal's registry to keep track of the numbering / date of final orders without messing it up. We hope that this will be sorted out by the Tribunal in future. </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>When the Revenue has accepted the order of the Tribunal in respect of one party, on the same set of facts, appeal against another party cannot be allowed – Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As the Revenue had accepted the decision in the case of Bata India Ltd. arising from the same order of the authority in original and there being no change on facts the appeal against the respondent could not be proceeded with. We are also in agreement with the view taken by the Tribunal that Revenue was not justified in invoking the extended period of limitation. The appeal is dismissed<strong>. </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Behind every man
who achieves success, stands a
mother, a wife and the <strong>IRS </strong></em></font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p><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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