TIOL-DDT 120
24 05 2005
Tuesday Anti-dumping duty on acrylic fibre Anti-dumping duty on acrylic fibre from UK, Germany, Bulgaria and Brazil is withdrawn. The anti-dumping duty was provisionally imposed by Notification No. 133/2001-Cus, dated 31.12.2001 which was conformed by Notification No. 104/2002-Cus, dated 9.10.2002. Now this Notification No. 104/2002 is rescinded.
Notification No. 48/2005-Cus., dated 19.05.2005.
Anti-dumping duty on Acrylic Fibre below 1.5 denier
Similarly anti-dumping duty on acrylic fibre below 1.5 denier from Italy was imposed provisionally by Notification No. 4/2002-Cus, dated 10.1.2002 and confirmed by Notification No. 95/2002-Cus, dated 12.9.2002. Now this Notification No. 95/2002 is rescinded thereby withdrawing the anti-dumping duty.
Notification No. 49/2005-Cus., dated 19.05.2005.
RACs have lost the RACE! Can Help Centres deliver the goods?
Recently Board has issued a Circular 815/12/2005 CX dated May 13, 2005 on setting up of Help Centres. The Circular reproduced the following para of the FM’ Budget Speech.
“As a measure of facilitation, I propose to follow international practice and establish large taxpayer units (L.T.Us). To begin with, these units will be set up in major cities. I would like to invite large taxpayers, whether of corporate tax or income tax or excise duties or service tax, to participate in the programme and avail of the single window service. For small taxpayers, I propose to set up Help Centres in cooperation with industry associations, professional bodies and NGOs.”
Accordingly, Board desires that at-least one Help Centre may be set up in each Commissionerate under Additional/ Joint Commissioner.. The prime objective of the Help Centre is to help the honest tax payer/small assessees/ importers and exporters/ service providers by providing an institutional mechanism for guiding and educating them in all matters relating to Customs, Central Excise and Service Tax. The Centre will make them aware of their rights and obligations as also advantages of tax compliance and consequences of non-compliance. The non-filers, stop-filers of Returns and defaulters of monthly payment of duty will also be an area of focus.
The work of the Help Centre should be systematic with prompt assistance to the trade and a proper record should be maintained containing the number of persons approaching the Help Centre, issues raised and the manner in which the help is provided.
We already have an institutional mechanism for guiding the assesses in the name of Regional Advisory Committees with more or less similar objectives. RACs are set up in the Commissionerates for interaction between the Trade and the Department. In this Committee, the Commissioner of Central Excise will be the Ex-Officio Chairman. In order to redress the difficulties faced by the assessees in relation to the procedural/policy matters of the Central Excise laws, the Committee meets periodically and discusses the issues raised by the members of the trade. Because the law enforcing officers are believed to possess better expertise in understanding the law than the ordinary assessee, it is expected that the practical difficulties in following the procedures by the trade will be resolved or at least be forwarded to the higher formations.
But, unfortunately, instead of providing any reasonable solutions, the points are often replied to in evasive manner. And for some of the points raised, the officers themselves have no answers nor have any possible solutions. Even if they can find an answer, it is always better for the officers to play safe by not giving any specific solution, with the result that the RAC meetings turned out to be a routine exercise in futility. In its earlier days the RAC meetings used to be attended by the top executives of the companies but slowly they lost interest as they had come to realise that these meetings do not offer any solutions and at best they are an exercise in PR. So now you find RAC meetings attended by three assessees and thirty officers. The minutes of RAC meetings are full of wry humour.
Look at a few samples -
Point raised by a CHA :
Point No 1 Even though the service was brought under the net from 16th July 1997, there remains a lot of confusion for the exemptions and the exact amount on which the service tax is payable. In case of lump sum billing, the actual reimbursement is excluded and the rest of amount is considered for 15% assessable value and the service tax is applied. Confirm whether the above system is correct.
Reply: Refer Sub Section 29 of Section 65 of Chapter V of the Finance Act, 1994
What a reply! The CHA was referring to a Board Circular wherein it has been decided to charge service tax on 15% of the gross amount in case of lump sum billing and he was asked to refer to the definition of the service under Section 65!
Point No 2: As a Customs House Agent, lot of service is availed from various service providers and service tax is paid by them. Clarify whether all such service tax paid can be taken credit on the total service tax liability.
Reply: Refer Clause (L) of Rule 2 of Cenvat Credit rules.
If you are a regular follower of RAC minutes, you will find several such amusing replies to the difficulties expressed by the trade. Assessees do not attend RAC meetings to be told to read sections of the Act. They can do so far better in the cosy comforts of their offices instead of wasting time in attending these meetings. Only time will tell how the proposed help centres by the FM function as real help centres.
Until Tomorrow with more DDT
Have a Nice Day.
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