TIOL-DDT 1005 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1005</font><br> 04.12.2008<br> Thursday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Application Form for import of Restricted Items – DGFT amends Form</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has amended ‘Application Form for import of Restricted Items ‘ANF 2B'. Details of purchase made of the item(s) applied for (excluding imports made) in the preceding licensing year, are also to be given now in the form.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn111.htm" target="_blank">DGFT Public Notice NO. 111(RE-2008)/2004-2009, Dated: December 2, 2008</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3 per cent interest subvention for short-term crop loans in 2008-09 – RBI Instructions</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has been informed by Government of India, Ministry of Finance, Department of Financial Services that the Government has approved interest subvention of 3% (instead of 2%) for the year 2008-09, as under:</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The subvention of 3% per annum is available to public sector banks (PSBs), co-operative banks and Rural Regional Banks (RRBs) on their own funds used for short term credit up to Rs 3,00,000 /- provided to farmers.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, public sector banks would be eligible for interest subvention of 3% in respect of short-term production credit up to Rs.3 lakh provided to farmers for the year 2008-09. The amount of subvention is to be calculated on the amount of the crop loan disbursed from the date of disbursement/drawal up to the date of repayment or up to the date beyond which the outstanding loan becomes overdue, whichever is earlier. This subvention is available to the Banks on the condition that they make available short-term credit at the ground level at 7% p.a.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_notification.htm" target="_blank">RBI's RPCD.No.PLFS.BC . 72/05.04.02/2008-09 Dated: December 3, 2008</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs and Environment : Protecting Our Natural Heritage – WCO to Honour Customs Officers</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Given the importance now attached to environmental issues by the entire international community, the World Customs Organization (WCO) has decided to dedicate International Customs Day on 26.1.2009 to the environment with the theme “Customs and the environment: protecting our natural heritage” as this will provide Customs administrations with an ideal opportunity to highlight the role they play in protecting the environment.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The WCO has decided to honour Customs officers who have demonstrated their dedication to environment protection through exceptional acts. The selected officers will be awarded a WCO Certificate of Merit.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Board has asked the Chief Commissioners to send nominations of suitable Customs officers working in their zone along with recommendations and brief background about the exceptional work performed by the officer in the above area including vigilance clearance by 05.12.2008 to Shri S. Dutt Majumder, Director General, Directorate General of Revenue Intelligence, New Delhi.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe they should honour an officer who has not used paper during the last year – the Board would clearly fail.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/deputation/wcot.htm" target="_blank">CBEC's F.No.528/11002/2002- CUS/ICD Dated: December 3, 2008</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Union Minister Jaipal Reddy Seeks Total Exemption From Excise Duties On Buses</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“I am convinced that if we provide attractive options of public transport, which can be a combination of pedestrian walks, cycle paths, metros and above all, comfortable and convenient bus services; it will persuade the urban commuters to shift voluntarily to the public transport systems. To use public transport and thus rub shoulders with one another is surely one welcome way of leading a communitarian way of life rather than landing in elitist and secluded paradise. if we work in a milieu of collective and cooperative engagement. I am optimistic that through these collaborative efforts we will transform the future of our cities”, said Mr. Jaipal Reddy, Union Minister.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He demanded that there should be full exemption of the excise duty on the buses.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If these Ministers are serious about what they talk, why can't they talk to the proper persons? Why should Mr. Reddy tell the public that buses should be exempted? Why can't he go and tell that to the Finance Minister?</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ISI Headquarters at Hyderabad?</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was around 1 pm yesterday at Indira Sewa Sadan in Hyderabad – it is called ISS Cross Roads, but it can as well be called the ISI Cross Roads. The Hyderabad Police got information [actionable intelligence] that a suspected terrorist was somewhere in the ISS area. The intelligence was right and it was actionable and actionable they made it. Three junior cops of the Counter Intelligence Unit of the AP Police went to nab him and they found him. They nabbed him and got shot. The Police in mufti were not even armed with lathis, the terrorist had guns which were used liberally. The policemen who came to catch the terrorist were shot at and badly injured. And the suspected terrorist ran away.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the sad state of affairs of all our enforcement agencies. Some years ago I had undergone training in the Police Academy. While they were teaching us to use AK-47 guns, I asked my instructor whether even the Naxalites have such weapons. “They have better weapons”, replied the Cop.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We understand that our Customs officers in Mumbai's Marine Preventive wing undertaking Sea Patrolling, do not know swimming, have no weapons, no night vision goggles, have no training in identifying a smuggler or terrorist and in the sea, they don't even have a chance to run away. It's a miracle they are alive.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government can tax you, harass you, and make your life miserable – BUT THEY CANNOT PROTECT YOU. We all survive by accident and each one of us is a potential target to be blown up and until then let us be nice to others and try to do some good work.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Only God can save us – I plan to be in Tirupati this weekend and what should I pray? – That I should not be blown up, my family should be safe, my friends should be safe, my Netizens should be safe – but what about the others? Are they free to be blown up? Can I pray that the terrorists should be blown up?</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Duties of police-officers - Police Act 1861</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 23 of the Police Act, 1861, <font color="#FF6633">It shall be the duty of every police-officer promptly to obey and execute all orders and warrants lawfully issued to him by any competent authority; to collect and communicate intelligence affecting the public peace; to prevent the commission of offences and public nuisances; to detect and bring offenders to justice and to apprehend all persons whom he is legally authorized to apprehend, and for whose apprehension sufficient ground exists; and it shall be lawful for every police-officer, for any of the purposes mentioned in this section, without a warrant, to enter and inspect any drinking-shop, gaming-house or other place of resort of loose and disorderly characters.</font></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">– Tommorow's cases</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Octroi, sales Tax and Excise Duty not includable in total turnover for computation of amount deductible under Section 80HHC ; expenses incurred in relation to issue of debentures to be allowable as Revenue expenditure</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>JUST </strong>as commission received by an assessee is relatable to exports, and yet it cannot form part of “turnover”, excise duty and sales tax also cannot form part of the “turnover”, and were not includable in the “total turnover”. It was held, that otherwise, the formula becomes unworkable. Moreover, excise duty and sales tax are indirect taxes, and they are recovered by the assessee on behalf of the Government. Therefore, if they are made relatable to exports, the formula under Section 80- HHC would become unworkable.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Services provided in a port in relation to handling of export cargo excluded from levy of service tax – Statute bars levy of service tax on handling of cargo for exports - Revenue appeal devoid of merits, dismissed <em>in limine </em>: High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellant is engaged in handling of export cargo at Mangalore Port and paid service tax on such activity. Later realizing that this activity does not attract levy of service tax, they filed for refund of the tax paid. Initially the original authority rejected the claim but on appeal the Commissioner (Appeals) directed the lower authority to determine if the service rendered by the appellant was ‘port service' or not.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs- AAR </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>‘Agilent PSA Series spectrum' are rightly classifiable as other instruments and apparatus, specially designed for telecommunications covered by 9030 40 00 of the Customs Tariff: Advance Ruling</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> applicant has sought advance ruling under Section 28H of the Customs Act 1962 on the following issues regarding the classification of such imports:-</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) What is the Customs Classification of Agilent Technologies Product No. E 4443 A, Spectrum Analyzer when imported into India?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) What is the Customs Classification of Agilent Technologies Product No. E 4447 A, Spectrum Analyzers when imported into India?</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns tomorrow for the judgements</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p> <font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font> </body> </html>