TIOL-DDT 359
10 05 2006
Wednesday

As per Notification No 32/2005, “The exemption contained in this notification shall only be in respect of said duties paid on the said goods, which have been used in such houses constructed on or after the 1st April, 2005 and on or before 31st July, 2006.” Now this is extended till July 2007.

NOTIFICATION NO 30/2006-Central Excise, Dated: May 9, 2006.

Women from Pakistan with drugs – in Customs custody

The Atari Customs yesterday arrested four Pakistani women carrying 6.8 kg of heroin worth Rs 7 crore in the international market. The narcotics were found concealed in their undergarments, footwear and leather belts worn under the clothes. The Samjhauta express is proving to be a good means of drug smuggling.

Exempted and dutiable goods – credit – can 10% be collected from customers?

When credit is taken on inputs used in the manufacture of exempted and dutiable goods, as is well known 10% of the price of the final product has to be paid to the department. Now can this 10% be collected from the customers? You can, but the government will collect that also from you. May be if you collect it as excise duty, the government will pounce on you, but if the invoice says, it is some amount required to be paid under some rules, Section 11D will not be attracted. Tribunal benches have taken contradictory views and the

Bangalore bench had observed, This amount is not considered as duty. There is no law, which says that they should not collect this amount of 8% from the buyer of the goods.

Yesterday the Chandigarh Central Excise Commissioner issued a press note that manufacturers supplying pipes to water projects in

Punjab and Himachal Pradesh have evaded excise duty to the tune of Rs. 4.5 Crores. They were availing the exemption and still collecting this 10% from the state governments and according to him failed to pay this 10% to the government. The Commissioner observed another modus operandi - the manufacturer, to keep the mischief under cover, inflated the prices of goods to the extent of 10 per cent, and showed the clearances at nil rate of duty. Any problem?

Perjury - The deliberate, willful giving of false, misleading, or incomplete testimony under oath in a judicial proceeding .

Legal Maxims

Ubi jus ibi remedium. Where there is a right, there is a remedy. Where the remedy is barred, the right is rendered unenforceable.

 “Where public bodies, under colour of public laws, recover people’s moneys, later discovered to be erroneous levies, the dharma of the situation admits of no equivocation. There is no law of limitation, especially for public bodies, on the virtue of returning what was wrongfully recovered to whom it belongs. Nor is it palatable to our jurisprudence to turn down the prayer for high prerogative writs, on the negative plea of alternative remedy, since the root principle of law married to justice is ubi jus ibi remedium.” -  Shiv Sankar Dal Mills v. State of Haryana, A.I.R. 1980 S.C. 1037, Supreme Court

Until Tomorrow with more DDT

Have a nice day.

Mail your comments to vijaywrite@taxindiaonline.com