TIOL-DDT 2778
03 02 2016
Wednesday

IT seems that the Board is now fast-tracking for the inevitable.

A meeting was recently chaired by the Chairman to discuss the administrative restructuring of the formations under CBEC in the ensuing GST Regime.

DGHRD has been directed to initiate the exercise of formulating a proposal in this regard in the right earnest.

For initiating the said exercise, certain basic information/ factors,as listed below, are to be taken into consideration -

(i) Number of Commissionerate-wise, Annual Turnover-wise Central Excise and Service Tax Assessees;

(ii) Number of Commissionerates of Central Excise, which also attend to Customs work, i.e. work in ICD, CFS, Integrated Check posts/ LCS, Airport and Aircargo (excluding Export factory Stuffing Work)

(iii) Grade-wise Staff Strength deployed for Customs Work in these Commissionerates.

(iv) Number of State-wise assessees under present VAT regime in the States

(v) Annual Turn-over-wise breakup of the number of State-wise VAT Assessees.

(vi) Existing Organizational Structure, Appeal and Review system under VAT in different States

The Principal Chief Commissioners / Chief Commissioners of Central Excise and Service Tax are requested to appoint a Nodal Officer of the rank of Additional / Joint Commissioner, who can:

(i) coordinate with the State Government Officials in respect of City/ District-wise VAT related information, as and when required.

(ii) collect the Commissionerate-wise information related to Central Excise and Service Tax (as per Proforma-I) and send the same to DGHRD.

(iii) collect the information about Grade-wise Staff Strength deployed for Customs Work (in Sea Port, Airport, Air Cargo, ICDs, LCS etc.) attended to by Central Excise Commissionerates and provide the same in Proforma-II.

The Nodal officer is also asked to coordinate with DGHRD and the information for the year 2014-15 in respect of Central Excise and Service Tax formations is to be sent to the Directorate General, HRD latest by today.

With the Union Budget knocking on the door and the Revenue collection drive reaching a crescendo, supplying this truckload of information would certainly be gargantuan task!

CBEC F.No. 8/B/208/HRD (HRM)/2015 dated January 29, 2016

Naphtha imported by Haldia Petrochemicals Ltd - exemption withdrawn

IT was reported that Haldia Petrochemicals Ltd.(HPL) was mired in financial and administrative mismanagement leading to a deep working capital crisis. So much so, that it was to be referred to BIFR after a closure for about six months for want of working capital.

However, as a New Year gift, the Union Finance Ministry gave the company a much needed financial accommodation by agreeing to grant a four-year extension to meet its export obligations that would take care of its financial liability to the tune of approximately Rs 2,300 crore. Nonetheless, an additional export target of 20% was also imposed by the DGFT. Incidentally, the West Bengal government has a stake of 37.5% in the company.

Be that as it may, Naphtha imported by M/s Haldia Petrochemicals Limited(HPL) for the manufacture of the following polymers viz. Low density polyethylene (LDPE), Linear low density polyethylene (LLDPE), High density polyethylene (HDPE), Linear medium density polyethylene (LMDPE), Linear high density polyethylene (LHDPE) (all under 39.01); All goods other than poly iso butylene (3902); All goods (3903) & Polymers of vinyl chloride (3904) was exempted if the importer followed the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. This exemption was available in terms of Sr. no. 129 of Notification 12/2012-Cus. dated 17 March 2012, as amended.

This exemption is now withdrawn.

Notification 7/2016-Cus. dated February 2, 2016.

There but for grace of God, go I

THE Bombay High Court while dealing with a Petition filed by the wife of the detenu remarked - Those immortal words should never be forgotten when dealing with any detenu: "there, but for the grace of God, go I."

More about this phrase -Meaning - I too, like someone seen to have suffered misfortune, might have suffered a similar fate, but for God's mercy. The story that is widely circulated is that the phrase was first spoken by the English evangelical preacher and martyr, John Bradford (circa 1510-1555). He is said to have uttered the variant of the expression - "There but for the grace of God, goes John Bradford", when seeing criminals being led to the scaffold.

The High Court while quashing the order of detention on the ground of delay and reminding the Detaining Authority as also the Sponsoring Authority of their duties and responsibilities cited the Supreme Court decisions in Dropti Devi & Anr. Vs. Union of India & Ors. = 2012-TIOL-47-SC-FEMA & Sunil Fulchand Shah v Union of India and Ors. (2000) 3 SCC 409 and observed - Although the …decisions of the Supreme Court have been cited innumerable times in our orders, and although each is today a locus classicus, we find they bear reiteration and repetition if only because our State-level functionaries appear to have entirely lost sight of them.

Please see Breaking News.

FTP - Import of Motor Cycles - Euro III till 31.3.2017

CENTRAL Government has amended the Policy Condition No. 9 of Chapter-87 of ITC (HS), 2012, Schedule-I (Import Policy) to stipulate that Import of Euro - III compliant motorcycle shall be allowed to be imported till 31/03/2017 and thereafter, only import of Euro - IV compliant motorcycles would be allowed.

DGFT Notification No. 36/2015-2020., Dated: February 02 2016

FTP - Pre Shipment Inspection Agencies (PSIA) - re-enlisted

DGFT has re-enlisted two Pre Shipment Inspection Agencies (PSIA) - M/s. Olivine Commercial Pte. Ltd., Singapore and Sandeep Garg & Company up to 31st May 2016.

DGFT Public Notice No. 59/2015-2020., Dated: February 02 2016

Super Tax on super rich

IN order to generate Rs. 24 billion extra revenue, the government had introduced Super Tax on rich individuals, association of persons (AOPs) and companies earning income above Rs. 500 million in tax year 2015 at rate of 4 percent of income of banking companies and 3 percent on other categories for rehabilitation of temporarily displaced persons through Finance Bill (2015-16).

The purpose of the tax is to generate funds for rehabilitation of temporarily displaced persons , who were affected due to terrorism and counter-terrorism efforts that resulted in displacement of hundreds of thousands of people.

On September 2, draft rules were issued to implement the levy of super tax that was announced by the finance minister in his budget speech 2015/2016.

However, in November 2015, the Sindh High Court suspended the imposition of the levy and against this decision the federal government filed a petition in the Supreme Court.

Incidentally, the Lahore High Court, on 30.12.2015, has dismissed a similar petition for interim relief against section 4B of Super tax, Income Tax Ordinance 2001 and said that it is still valid and operative and no relief can be granted until its struck down by the superior courts.

Noting that the relief granted by the High Court of Sindh effectively renders the provisions of section 4B of the Ordinance, 2001 as redundant and inoperative, the Lahore High Court chose not to follow the same.

The High Court also observed - "In case an interim relief in any form is granted at this stage, that will tantamount to circumventing the mandate of the principle laid down by the superior courts. This cannot be countenanced. Two principles would come into play. Firstly, the maxim that what cannot be done directly cannot also be done indirectly is fully applicable in this case. Also it has consistently been held by the superior courts that an interim relief which amounts to the grant of the final relief cannot be granted by the courts. However, the primary basis for the refusal of the relief remains the same. It is that by way of interim relief, no concession can be granted which will result in the suspension of the operation of a provision of law."

Let it be known that the above legal battle is being fought in our neighborhood, Pakistan.

Until Tomorrow with more DDT

Have a nice day.

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