In a major blow to the exporters, the Bombay High Court has held that exporters are eligible for rebate on the duty paid either on the inputs or the final products but not both. The court was interpreting Rule 18 of the Central Excise Rules, 2002:-

Where any goods are exported, the Central Government may, by notification, grant rebate of duty paid on such excisable goods OR duty paid on materials used in the manufacture or processing of such goods.

Because of the word, “or” in the rule, the High Court held that only one of the benefits could be allowed. This is the result of benevolent simplification to make the assessee’s life simpler! As long as the Central Excise Rules, 1944 ruled the roost, there was no problem, and simplification has taken away another benefit. Is it fair on the part of the government to take the matter to the High Court when they knew all along that rebate was and should be allowed on both the items? Should the assessees suffer for the deficiency in English of the officers in the Board? First the government makes a bad law because of a mistake, because somebody’s English grammar was poor and then they go to Court to get benefit out of the badly drafted law! Certainly not an act worthy of a government! Please see our breaking news for details of the case.

Exemption to goods cleared under “served from India”

In tune with the DGFT’s notification allowing payment of excise duty from duty free credit scrip, the Revenue ministry has now issued an excise exemption notification for this purpose. Now the hotel industry covered under the scheme can get certain goods from the domestic market without excise duty by using the scrips obtained, subject to certain conditions:-

1. The certificate issued by the Regional Authority is produced before the jurisdictional Central Excise Officer at the time of clearance for debit of the duties.

2. exemption is not be admissible if there is insufficient credit in the certificate for debiting the duties

3. the certificate and goods cleared against it shall not be transferred or sold. ( They can be within the same group)

4. Certificate of installation to be produced from Assistant Commissioner/Deputy Commissioner.

NOTIFICATION NO. 34/2006-Central Excise, Dated: June, 14 2006

Customs duty on petrol and diesel slashed – The Notification is here!

From TIOL-DDT 378, 06-06- 2006

We need not tell you about the hiked cost of petrol; that is everywhere, but we should have been able to tell you that the customs duty on petrol and diesel has been reduced from 10% to 7.5%. It has been indeed, but where is the customs notification? We tried our best to get the notification, but we found that the only person in the whole country who had some authentic information about the cut in customs duty was Petroleum Secretary M.S. Srinivasan, who announced that the slashed rates are applicable from the midnight of 5^th June 2006. Frantic calls from Oil Companies could not be answered as Revenue Ministry had closed shop by the time the Petroleum Ministry announced the customs duty cut! Tomorrow the notification will be issued and oil companies will seek refund which will be refused and the matter will ultimately reach the Supreme Court of India.

The Revenue Ministry has finally issued the notification but from 14^th June and not 5^th June as announced by the Petroleum Secretary. He may be able to produce oil, but to produce a notification, you need the Revenue ministry, and you will have to wait till they choose to do so.

Oil is produced by fools like me

But only Board (god) can make a notification!

NOTIFICATION NO. 59/2006-customs, Dated: June, 14 2006

DGFT amends SION

Director General of Foreign Trade has made several amendments / deletions / corrections /additions in

1. the Handbook of Procedures, Vol.2, 2004-2009.

2. In the statement of Standard Input Output Norms

PUBLIC NOTICE NO.  21  (RE:2006)/2004-2009 - DATED :  15  /06/2006

Exports during 2005–06 – certain amendments in HOP

Handbook of Procedures Vol. 1, 2004-09 is amended applicable for exports during 2005-06.

1. New application form 17 D is prescribed for Target Plus Scheme (2005-06) for export period 2005-06.

2. Appendix 17E and Para 3.2.5 (VIII) of Handbook of Procedures (Vol.1 2004-09) is deleted.

3. Para 3.2.5 (IX) is added, which stipulates that “Applicants shall file the applications in Appendix 17D to the jurisdictional Zonal Office (Mumbai, Kolkata, Chennai, Delhi CLA) depending upon the location of Registered Office / head Office of the applicant. The respective Zonal Committees in the Zonal offices shall consider the applications and issue the licence or otherwise.”

4. Para 3.2.5 (X) is added to stipulate that “Application should be filed manually only to the jurisdictional Zonal Office.”

PUBLIC NOTICE NO.  22  (RE:2006)/2004-2009 - DATED :  15  /06/2006

Agreed List - revenue refuses to part with information

In its order dated 1^st May 2006, the CIC, directed the CBEC’s Vigilance Directorate to furnish the list of officers figuring in the ‘agreed list’ who have been promoted or posted to sensitive posts. 2006-HRIOL-64-CIC. The information is too sensitive for the Revenue and so they have not followed the Commission’s directions and the lawyer is back in the Commission demanding penalty against the defaulting officers. DDT spoke to Ms. S.R. Sawant, the Mumbai based advocate who filed the application under the RTI Act and she spoke about filing an application in the CAT as well as the CIC.

Until Tomorrow with more DDT

Have a nice Day.

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