TIOL-DDT 329
24 03 2006
Friday

The 4% additional duty has caused considerable confusion – There is no 4% additional duty if the product is exempted from BCD and CVD. Now is DEPB an exemption? Yesterday DDT had promised to bring you an article on this. Our experts analyse the whole issue and conclude that no 4% additional duty is payable in case of DEPB debits. See details in our special today.

4% duty – 100% doubts

For the last twenty days we have been flooded with mails with doubts and apprehensions about the 4% additional duty. Apart from the additional burden right across the Board, what worries the stake holders is the absolute lack of clarity and the Board’s silence. The Notification No. 29/2006 has amended Notification No. 20/2006 to withdraw the exemption from this 4% to several products covered under various notifications. This has led to some comical situations.

A Superintendent working in a remote Nepal Border Customs Station wrote to us,

Earlier it was implemented only on dutiable goods and the goods with NIL rate of duty were exempted from this 4%. But now the notification 29/2006-Cus dated 20.03.2006 came. During discussion among our selves it appeared first that the 4% ACD is not applicable on goods being imported from Nepal, Bhutan, Bangladesh. But later on we found that as per the provisions of notifn.no. -29/2006-cus dated 20-03-06, ACD @4% Ad-Val. is imposed on all goods imported irrespective of the fact that the  goods are exempted from BCD as well as ACD under Sec.3(1) of CTA'75.The words used and added in Notifn. 20/2006-cus. dated 01-03-06 that ' Nothing contained in this notification shall apply----'vide Notifin. No. 29/2006-cus dated 20-03-06, is confusing the matter. Since Notifn. No. 20/-2006 - Cus dated 01-03-06 is a notification extending exemption from payment of ACD under Sec.3(5) of the CTA'75,the words used 'nothing contained in the notification shall apply----' shall mean that no exemption is being granted to the goods if imported from the countries mentioned in the annexed notifications.

EDI fails – Customs refuses manual filing of BOE

Importers in JN Port Custom House, Mumbai have a problem. They are denied the benefit of an exemption not because they are not eligible, but because the EDI has failed them. It seems after the budget Notification NO. 75/2005 which deals with exemption to goods from Singapore got deleted from the system and when the computer says “no”, who are appraisers and Commissioners to say, “yes”? Net Result – no exemption.  For the last three weeks importers are being denied the exemption and it seems the Customs authorities are not prepared to accept manual Bill Of Entry. Once the system is updated, will the importers get refund? They may – if they challenge the assessment and prove that the duty has not been passed on.

Will the Board/ DG, Systems/ Commissioner do something to help the poor importers who are punished for no fault of theirs?

Vigilance officers given power of Central Excise officers

Superintendent, Appraiser and Inspector in the Directorate of vigilance are conferred with powers of Central Excise officers. Officers of Assistant Commissioner and above in the Directorate already have this power.

NOTIFICATION NO. 7/2006-Central Excise (N.T.), Dated: March 22, 2006

Exemption for Matches – certain power operations allowed

Matches, in or in relation to the manufacture of which none of the following processes is ordinarily carried on with the aid of power, namely:

(i) the process of giving-the veneer flats or strips, the configuration of a match box including the outer slide or the inner slide with the use of match paper;

(ii) frame filling;

(iii) dipping of splints in the composition for match heads;

(iv) filling of boxes with matches;

(v) pasting of labels on match boxes or veneers or cardboards;

(vi) packaging were exempted.

Now sl. No. (i) above is deleted which means that the process of giving-the veneer flats or strips, the configuration of a match box including the outer slide or the inner slide with the use of match paper can be carried out with the aid of power and still be eligible for the exemption.

NOTIFICATION NO. 26/2006-Central Excise ., Dated: March 22, 2006

Medicines for export to display “Heavy metals within permissible limits”

All exporters of purely herbal Ayurveda, Siddha and Unani Medicines (AYUSH) are required to either conspicuously display on the container of purely herbal Ayurveda, Siddha and Unani medicines to be exported the words “Heavy metals within permissible limits” or furnish the prescribed certificate from an approved laboratory along with other consignment papers. It is the responsibility of the representative of DCG(I) deployed of the Airport/port of shipment to examine and ensure that all exporters of purely herbal Ayurveda, Siddha and Unani medicines comply with this. Board wants Customs officers to take note.

F.No. 450/163/2005-Cus.IV Dated: March 21, 2006.

Sine die (si¯'niš di¯'e¯)

Without a day specified for a future meeting; indefinitely: Parliament was adjourned sine die yesterday.

A legislative body adjourns sine die when it adjourns without appointing a day on which to assemble again. A court may also adjourn a matter sine die, which means the matter is stayed permanently. This may be due to various reasons, for example, the case is started with a wrong procedure chosen, and then the judge may adjourn the matter sine die so that the party may choose to start the action again with the correct procedure.

++ Appeal on same issue pending in Supreme Court not a ground for adjournment of appeal sine die, as it could result in a situation where majority of litigation could come to a standstill. – CEGAT in CENTURY ENKA

++ Adjournment of appeal sine die generally not granted by Appellate Tribunal just because appeal against an earlier order involving identical point of dispute pending before Supreme Court – CEGAT in GOWTHAMI SOLVENT OILS PVT. LTD.

++ Issue pending before the Constitutional Bench - Appeal adjourned sine die.  – Supreme Court in INDIAN LEADS PRIVATE LIMITED
 
There's no better way of using the imagination than the study of law.

No poet ever interpreted nature as freely as a lawyer interprets truth.

(Jean Giraudoux (1882-1944)

Until Monday with more DDT

Have a nice Day.

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