will d recent notification no.7/2010 applicable for students giving may 2010 attempt or quoting ans. on d basis of notfctn 33/2009 will be cnsdrd ryt????

Originally posted by : PAYALARORA
	will d recent notification no.7/2010 applicable for students giving may 2010 attempt or quoting ans. on d basis of notfctn 33/2009 will be cnsdrd ryt????

I think notification no 33/2009 will be applicable for May 2010..........what say?

So on the above mentioned answer, can anyone judge my marks?????????????

Mandatory interest for late payment of service tax - In case of delayed payment of service tax, there is mandatory payment of simple interest under Section 75 for the period which the payment is delayed. The interest rate is 13% w.e.f. 10-9-2004,

Q.6(c)(ii) - Service Tax Interest under Sec. 75 - related extract from Study material of ICAI -

5.5.6 Interest on delayed payment of service tax (Section 75) : Failure to pay service tax in time, including a part thereof, attracts simple interest at a rate not below 10% p.a. but not exceeding 36% p.a. as may be notified by the Central Government. Currently, the interest rate of 13% has been notified vide Notification No. 26/2004 ST. Further, failure to pay service tax also attracts penalty which has been discussed later in this Chapter.

Q.6(c)(ii) - Service Tax Interest under Sec. 75 - related extract from Study material of ICAI -

5.5.6 Interest on delayed payment of service tax (Section 75) : Failure to pay service tax in time, including a part thereof, attracts simple interest at a rate not below 10% p.a. but not exceeding 36% p.a. as may be notified by the Central Government. Currently, the interest rate of 13% has been notified vide Notification No. 26/2004 ST. Further, failure to pay service tax also attracts penalty which has been discussed later in this Chapter.

Originally posted by : Ghanshyam Joshi
	Q.6(c)(ii) - Service Tax Interest under Sec. 75 - related extract from Study material of ICAI - 5.5.6 Interest on delayed payment of service tax (Section 75) : Failure to pay service tax in time, including a part thereof, attracts simple interest at a rate not below 10% p.a. but not exceeding 36% p.a. as may be notified by the Central Government. Currently, the interest rate of 13% has been notified vide Notification No. 26/2004 ST. Further, failure to pay service tax also attracts penalty which has been discussed later in this Chapter.

i have written 13% interest rate, so it is correct na?????????

Yes it is correct.

@ Ghanshyam

I am confused that how many marks i will get in DT n IDT, coz in costing i can expect only 40-45

Don't worry you will get more than 60 in IDT and DT. You have written in very specific manner. I made lots of blunder in the exam thats why I am going deep in these two papers. Costing was so so and MICS wan not so good.

Here is case law for Q.5(b) Tony India imported.... from ICAI study material -->

 India Car Co. is manufacturing passenger cars and has entered into a joint venture agreement and collaboration with Videshi Car Co. India Car Co. imported from Videshi Car Co. a shipment of 24 CKD packs (completely knocked down condition) of passenger car components. They filed bill of entry for clearing the goods, which were claimed to be components of motor cars. They also claimed benefit of a notification exempting components, including components of motor cars in semiknocked down packs and completely knocked down packs.

The adjudicating authority held that the imported components being complete cars in CKD packs had the essential character of the finished product and as such the

consignment were to be treated as motor cars and not components. It was also held

that India Car Co. was not entitled to the benefit of the notification as the notification

was only for components.

Examine brifefly:

(i) Whether the CKD packs imported into the country could be considered to be

motor cars for the purpose of classification and clearance?

(ii) Whether India Car Co. is entitled to the benefit of exemption notification?

Answer

5. The facts of the given case are similar to the facts of the case of CC, Bangalore v. Maestro Motors Ltd. – 2004 (174) ELT 289 (SC) decided by the Apex Court.

(i) As per interpretative Rule 2(a) of the General Rules of Interpretation of Customs Tariff, any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or dis-assembled. This rule lays emphasis on the essential character of the goods. Thus goods which have the essential characteristics of finished goods will be classified under the same heading in which the final product has to be classified.

In the Maestro Motors case, the passenger car components were imported in CKD packs. Thus, what was imported was completely knocked down cars. The components imported had the essential character of a complete car even though presented in unassembled form. Thus, in view of Rule 2(a) of the General Rules of Interpretation of Customs Tariff, the Supreme Court held that the components in CKD packs would be classified as motor car. Therefore, in case of India Car Co. also, the CKD packs should be classified as cars for the purpose of classification and clearance.

(ii) In the Maestro Motors case, it was observed by the Supreme Court that a notification has to be interpreted in terms of its language. If in the notification, exemption is granted with reference to tariff items in the First Schedule to the Customs Tariff Act, 1975, then the Rules of Interpretation must apply. In that case even for the purposes of the notification, the goods will be classified in the same manner as they are classified for purposes of payment of customs duty.

However, where the language of the notification is plain and clear, effect must be given to it.

In this case the notification exempted components, including components of fuel efficient motor cars in semi-knocked down packs and completely knocked down packs. The Apex Court held that for purposes of levy of customs duty, by virtue of interpretative Rule 2(a) of the General Rules of Interpretation of Customs Tariff, the components in a completely knocked down pack would be considered to be cars. However, in view of the clear language of the Notification, the  components including components in completely knocked down packs would be exempted.

Thus, in view of the abovementioned judgment, the components in CKD packs by India Car Co. would get the exemption under the Notification, even though for purposes of classification and clearance they may be considered to be motor cars.

 I had given otherway answer in exam.

@ Ghanshyam

Thanks and for Tony India, Check out recent case law i.e of Sony India Ltd and same proposition were taken by court. So i quoted it as it was recent one of 2009.

Thanks Shashank for the detailed discussion. I think we should stop here for this topic and now get back to our work. Let the institute decide the result. But always hope and do the self talk for positive...

@ Ghanshyam

Hahahaha, correct coz if we will get bad marks then we cant do any thing. Its now ball in institute court.

yaar i read all comments in ques 2(C) batteries are covered under components and spare parts so 50% is available in first year.

in ques 4 (C) mohit is correct

&

In ques 6 D is related to what bcoz i misplace my paper bt i had attempted it and it was correct so plz meintion the ques if u can 

Originally posted by : Prateek Talwar
	yaar i read all comments in ques 2(C) batteries are covered under components and spare parts so 50% is available in first year.   in ques 4 (C) mohit is correct & In ques 6 D is related to what bcoz i misplace my paper bt i had attempted it and it was correct so plz meintion the ques if u can

question was to write time period of filing a claim of refund of ST