News Update

CII projects 7.7% growth in current fiscalDRI nabs two persons with about 6 kg ivoryIBBI Chief calls for preserving reputation of fledgling institutionService Matter - Relief to Ashok Aggarwal - Disciplinary authority cannot approve initiation of enquiry by ignoring statements of witnesses and merely relying on gist of evidence forwarded by CBI: HCCCI invites public comments on merger of Linde & Praxaire-Way Bill for Intra-State movement of goods - State tally goes up to 27PM inaugurates Delhi-Meerut ExpresswayTax benefits to angel investors - CBDT inserts Clause (Viib) in Sec 56India generates 940 tonnes of plastic waste every day: Dr Harsh VardhanAnti-dumping duty imposed on ‘Saturated Fatty Alcohols' imported from Indonesia, Malaysia and ThailandGovt stipulates 8.5% interest rate on PFRule 11UA - Word 'or an accountant' omitted + Clause (viib) of Section 56(2) not to apply to consideration received by a Company for issue of shares that exceeds face value of such shares if received from an investorI-T - Taxable event arises as soon as interest income on bank deposits accrues & becomes due; Deferred receipts on instruction of depositor will not make it hypothetical income: HCFM is out of ICU; recovering fast after kidney transplantAnti-dumping duty on on'Ammonium Nitrate' - Notification 44/2017-Cus(ADD) amended to substitute name of exporter at sr. no.1 as 'Euro Chem Trading GMBH Through Rawfert Offshore Sal, Lebanon'Finance Commission team to visit Kerala on coming MondayWTO Chief calls for reducing trade tensionsNIC cloud-based data centre to go live in OrissaCBIC clarifies on application of IGST on goods supplied while deposited in Customs bonded warehousePublic comments sought on Draft NDCP till June 1, 2018PM lays foundation stone for Patratu Super Power ProjectI-T - It is not open for AO to make additions while framing assessment u/s 143(3) merely on basis of seized documents beyond period of limitation u/s 153A: ITATIndia to rope in international labs for food testingISC Panel finalises recommendations of Punchhi CommissionCBIC introduces monetary limits of Rs.2.50 lakhs for filing Revenue appeals before Commissioner(A); applicable to CX & ST legacy cases and those currently pending.Govt sanctions out of turn coal to PSUs; Private plants find themselves at receiving endACC appoints JS, TRU, Alok Shukla as Minister (Customs) in PMI to WTO at GenevaACC grants one more year extension to CBDT Chairman Sushil ChandraThere is no provision in the CGSTAct which allows exemption on an Input Service if the Output service provided by taxable service is exempt: AARServices provided to M/s Karnataka Power Transmission Corporation Ltd. – since it is company registered under the Companies Act, 1956, and not a State Government authority, benefit of concessional rate @12% not available: AARServices provided of diagnosis, pre and post counseling therapy qualify to be health care services and attract Nil rate of Tax: AARTransaction of transfer of one of the units of the applicant as a going concern amounts to supply of service – Nil rate under 12/2017-CT(R): AAR
 
A few legislative amendments required in Central Excise

By R M Gangreddiwar

BUDGET 2008 is now only a couple of weeks away and I would like to bring certain points to the notice of the Finance Minister. And there are as follows :

++ Penal provisions for violation of Section 11D :

Section 11D of the Central Excise Act, 1944 is a self-contained provision providing for the statutory liability of any amount of duty collected by the assessee in excess of the duty paid on any excisable goods, realized in any manner as representing duty of excise.  Further Section 11DD provides for the interest liability on the duty amount payable under Section 11D.  However, there is no penal provision for non-payment of the excess duty amount collected by the assessee.  A penal provision ought to be also enacted to deter such “tax evaders”. 

++ Remission under Rule 21 of CER’ 2002 – prescription of time limit :

Rule 21 of the Central Excise Rules, 2002 provides remission of duty on the goods lost or destroyed by natural causes or by unavoidable accident or claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal.  It is noticed that several manufacturers are approaching the department seeking such remission much after the actual incidence resulting in practical difficulties in verifying such claim.  Consequently, such claims are rejected by the competent authorities and the matter drags on before the Tribunal and in remand proceedings.  It is suggested that a “reasonable time limit” should be prescribed in the rule for filing such remission claims.

++ Section 6 of CEA '44 needs amendment :

Section 6 of the Central Excise Act, 1944 provides for registration of the goods manufactured included in the First and Second Schedule to the Central Excise Tariff Act, 1985.  Since goods specified in Third Schedule & which are subjected to notified activities are held to be “manufacture” in terms of Section 2(f)(iii) of the CEA’44, such “manufacturers” would also necessarily be required to take out registration.  As such, Section 6 of the Central Excise Act, 1944 needs to be amended to make a reference to Third Schedule too.

+ Rebate of duty for exports to countries other than Nepal and Bhutan — Procedure Notification No. 40/2001-C.E. (N.T.) as amended :

Para (3)(ix) of Notification No. 19/2004-C.E. (N.T.), dated 1.3.2005 issued under Rule 18 of the Central Excise Rules, 2002 reads as under :

Where the goods are not exported directly from the factory of manufacture or warehouse, the triplicate copy of application shall be sent by the Superintendent having jurisdiction over the factory of manufacture or warehouse, who shall, after verification, forward the triplicate copy in the manner specified in sub-paragraph (vii)”.

The word “by” before the word Superintendent appears to be incorrectly used in place of the word “to”. To remove ambiguity, the same needs to be substituted accordingly.

(The views expressed are strictly personal.)


POST YOUR COMMENTS