New customs regulations notified The CBEC has notified the new regulations regarding electronic filing of shipping bills (http://cbec.gov.in/customs/cs-act/notifications/notfns-2k11/cs-nt2k11/csnt80-2k11.htm) and bills of entry (http://cbec.gov.in/customs/cs-act/notifications/notfns-2k11/cs-nt2k11/csnt79-2k11.htm), and regarding provisional assessment (http://cbec.gov.in/customs/cs-act/notifications/notfns-2k11/cs-nt2k11/csnt81-2k11.htm

1. UDYOG TAX NEWS FLASH
5 -DECEMBER 2011
High Court strikes down CBEC Res judicata in tax matters
instruction not to follow Tribunal The Delhi High Court in the case
decision mentioned above also considered the
The CBEC issued a circular under section vexed issue of res judicata in tax matters.
37B of the Central Excise Act (which is The department had not appealed against
binding on the officers) on classification of the Tribunal decision in GPL Polyfils.
polyester staple fibre manufactured out of Does this mean, applying the principle of
PET scrap and waste bottles. The res judicata, that it can never take a stand
instructions in the circular were contrary to contrary to this decision? The High Court
a Tribunal decision in the case of GPL considered the precedents on the issue and
Polyfils, reported in 2005 (183) ELT 27, held that
on the same issue. The circular also „…Revenue can prefer appeals or
specifically instructed its officers in take a contrary stand to what has
paragraph 10 of the circular that the been held by the Tribunal even if
Tribunal decision in GPL Polyfils was not they have not preferred an appeal,
a binding precedent. The circular can be when a “just cause” is established
seen at http://cbec.gov.in/excise/cx- and can be shown. Mere fact that
circulars/cx-circulars-10/929-2k10cx.htm. the Revenue has not preferred an
appeal or challenged the same,
The Delhi High Court struck down the said does not bar the Revenue from
paragraph 10 of the circular. It also preferring an appeal or taking a
ordered that the circular as such was not to different stand in another case
be treated as binding, and that the where there is a just cause or it is in
adjudicating officers must take into public interest to do so or when a
consideration the Tribunal decision in GPL pronouncement of the higher Court
Polyfils and see whether it is applicable. is different and / or divergent views
With commendable foresight the court are expressed by the Tribunals or
further took the precaution of ordering the High Courts (other than
that, if a demand is confirmed in similar jurisdictional High Court).‟
facts by holding that the Tribunal decision (paragraph 8 of the judgment)
in GPL Polyfils is not applicable, .the [Shiva Taxfabs Limited v Union of India,
demand is not to be recovered by adopting 2011 (24) STR 525 (Del)]
coercive methods till the stay application
on it is decided by the Tribunal. The High
Court decision is reported as Shiva
Taxfabs Limited v Union of India,
2011(24) STR 525 (Del).
Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535
Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that
such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should
act on such information without appropriate professional advice after a thorough examination of the particular situation.
Page 1

2. UDYOG TAX NEWS FLASH
5 -DECEMBER 2011
New adjudication manual planned no. 235/2011 dated 1 December 2011,
The adjudication manual used to be a available at
closely guarded departmental treasure. I http://cbec.gov.in/deptt_offcr/off-odr-235-
got hold of an ancient copy, falling to 2k11.htm.
pieces, by the good offices of an erstwhile Ms Shanti Sundaram is daughter of well
colleague. The salutary movement towards known economist KPM Sundaram. She
openness in government is seen by the fact has had a distinguished record of service,
that the new draft adjudication manual has and is known to be a knowledgeable and
been put up on the CBEC website for very strict officer, of impeccable integrity.
comments of departmental officers, We are confident that she will use her
professionals, and the general public. tenure at the Board to constructive
purpose.
The paragraph on “Recommendations by
the office Assistants or other subordinates
for the final decision of the cases” is
illuminating. It instructs the officers that
“even the narration of facts in an
adjudication order has to be drafted by the
officer himself”. After this, it spoils the
stern tone by observing that “Office notes
should not, therefore, go to the extent of
recommending the final decision or the
actual penalty, in adjudication of offence
cases.” (Does this mean that the office
notes can go to this extent in demand
cases??) Considering that most of the
orders issued in the department are drafted
by persons subordinate to the adjudicating
officer, one wonders whether the
instruction, even in this suggested form,
will have an impact.
The draft adjudication manual can be
perused at http://cbec.gov.in/draft-circ/dft-
adj-manual-29nov11.pdf.
Shanti Sundaram is new CBEC
Member
Ms JM Shanti Sundaram has been
appointed as Member CBEC, and given
the Legal & Judicial charge by office order www.udyogsoftware.com
Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535
Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that
such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should
act on such information without appropriate professional advice after a thorough examination of the particular situation.
Page 2

3. UDYOG TAX NEWS FLASH
5 -DECEMBER 2011
New customs duty rate for textile- Amendment to anti-dumping rules
bottomed footwear imports in the USA The government has notified an
Exporters of footwear to the USA may amendment to the Customs Tariff
note that the rate of duty for most kinds of (Identification, Assessment and Collection
textile-bottomed footwear imported into of Anti Dumping Duty on Dumped
the USA has changed w.e.f. 3 December Articles and for Determination of Injury)
2011. Presidential Proclamation 8742 adds Rules 1995. The amendment omits one
note 5 to chapter 64 of the US tariff word from a rule. Thus, in the definition of
schedule to achieve this. Textile-bottomed „domestic industry‟ in Rule 2(b), it earlier
footwear was hitherto dutiable at much said that where producers in the domestic
lower rates than those with a rubber or industry were related to the exporters or
plastic outer sole. However, by the new importers of the allegedly dumped article
note 5, the constituent material of the outer or were importers themselves, „domestic
sole is to be determined without taking industry‟ will mean the rest of the
account of “textile materials that do not producers „only‟. This „only‟ has been
possess the characteristics usually required omitted. Now it reads that “in such case
for normal use of an outer sole, including the term “domestic industry” may be
durability and strength.” construed as referring to the rest of the
producers.” The amending notification can
Of course, „normal use of an outer sole‟ be seen at http://cbec.gov.in/customs/cs-
and „durability and strength‟ may be act/notifications/notfns-2k11/cs-
relative terms, and subject to nt2k11/csnt86-2k11.htm.
interpretation. The wording of the note
shows us that lack of clarity may not be an
exclusive feature of Indian drafting! Visit
www.udyogsoftware.com
Tyre imports must bear BIS mark / be Call us on
on exempt list 9320124365
The CBEC has issued an instruction dated or
29 November 2011, bearing F.No. 022-67993535
528/109/2011-STO(TU), in which it
instructs it field formations that only tyres
that either bear the BIS mark or are on the Update Written
exempt list for this, available at
By Radha Arun,
http://www.dipp.nic.in, are allowed to be
imported, stored or sold. Accordingly Consultant To
officers must verify the eligibility of the
tyres before clearance of imported tyres.
Udyog Software ( India) Ltd
Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535
Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that
such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should
act on such information without appropriate professional advice after a thorough examination of the particular situation.
Page 3

4. UDYOG TAX NEWS FLASH
5 -DECEMBER 2011
New customs regulations notified Past excise waiver for pile liners
The CBEC has notified the new fabricated at construction site for
regulations regarding electronic filing of marine site
shipping bills Section 11C enables the government to
(http://cbec.gov.in/customs/cs- waive excise duty that was not collected in
act/notifications/notfns-2k11/cs- the past due to prevalent practice. In
nt2k11/csnt80-2k11.htm) and bills of entry exercise of this power notification
(http://cbec.gov.in/customs/cs- 23/2011-CE(NT) has been issued waiving
act/notifications/notfns-2k11/cs- excise duty, for the period 1 April 2005 to
nt2k11/csnt79-2k11.htm), and regarding 17 November 2011, on pile liners of
provisional assessment heading 7305 fabricated at the site of
(http://cbec.gov.in/customs/cs- construction for use in the marine site. See
act/notifications/notfns-2k11/cs- http://cbec.gov.in/excise/cx-act/notfns-
nt2k11/csnt81-2k11.htm) 2k11/cx-nt2k11/cent23-2k11.htm.
Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535
Email: sales@udyogsoftware.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that
such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should
act on such information without appropriate professional advice after a thorough examination of the particular situation.
Page 4