TIOL-DDT 1028 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1028</font><br>
09.01.2009<br>
Friday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of Float Glass – Anti Dumping Duty – Re-imposed – Well Within Time</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Anti Dumping Duty on Float Glass of thickness 2 mm to 12 mm (both inclusive) of clear as well as tinted variety (other than green glass) but not including processed glass meant for decorative, industrial or automotive purposes, originating in, or exported from, the Peoples' Republic of China and Indonesia, and imported into India, was imposed <em>vide </em> Notification No. 165/2003-Customs, dated the 12th November, 2003.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 4/2008-Customs, dated the 4 th January, 2008, this was extended till 6th January 2009.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Come 6th January, 2009 and this time around they have not forgotten this.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Notification No. 165/2003-Customs is superseded and the Anti Dumping duty is re-imposed with renewed vigour for another five years.</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=23&filename=notification/custom/2009/ctariff09_004.htm" target="_blank">Notification NO. 4/2009 – Cus Dated: 6th January, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of Mulberry Raw Silk – Anti Dumping Duty Re-imposed – No Wakeup Call</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Anti Dumping Duty on Mulberry raw silk originating in, or exported from the People's Republic of China, was imposed by Notification No. 106/2003-Customs, dated the 10 th July, 2003. This was extended till the 1st January, 2009 by Notification No. 01/ 2008-Customs, dated the 1st January, 2008.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This notification expired on 1 st January 2009 and unfortunately there was no wake-up call and they forgot all about it till 6th January, 2009 when a new notification was issued to re-impose this anti dumping duty. This time around they have not superseded Notification No. 106/2003, for they know there is nothing to supersede – the notification had died on 1.1.2009.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there was no dumping and consequently, no anti dumping duty between 1.1.2009 and 5.1.2009.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally the Designated Authority had in his Notification dated 11.12.2008 recommended the <strong>continued imposition </strong> of Anti Dumping Duty. He recommended a continuation not a fresh imposition. The fact is they could not get the Notification ready by 1.1.2009.</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=23&filename=notification/custom/2009/ctariff09_005.htm" target="_blank">Notification NO. 5/2009 – Cus Dated: 6th January, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Hyderabad Airport Deleted from the list of Customs Airports</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 7 of the Customs Act,</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appointment SECTION 7. of customs ports, airports, etc </strong>. - The Board may, by notification in the Official Gazette, appoint -</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the ports and airports which alone shall be customs ports or customs airports for the unloading of imported goods and the loading of export goods or any class of such goods;</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government/Board had appointed several ports by Notification No. 61/1994 – Cus NT dated 21.11.1994.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Andhra Pradesh there were four such appointed airports, namely; Hyderabad, Visakhapatnam, Renigunta and Shamshabad .</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shamshabad, as is well known, is Hyderabad's new high-tech, high-cost airport. The promoters of Shamshabad airport were very insistent that Hyderabad airport should be killed and a pliant government agreed causing immense inconvenience to air travellers. To reach the airport takes more time than reaching any city by air. Technically though the Hyderabad airport is closed for the public, it is still a very good airport with all facilities and because the Customs Notification still recognised it as a Customs airport for loading export goods and unloading imported goods, it can still be used as a cargo airport – but that will not suit the interests of the promoters of the new Shamshabad airport and whenever there is a clash between private and public interest, the government is sure to be on the side of the private interest.</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=24&filename=notification/custom/2009/cnt09_003.htm" target="_blank">Notification NO. 03/2009 – Customs (NT) Dated: 6 th January, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Foreign Trade Policy – calculation of Entitlement – FOB VALUE</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has clarified that under the various incentive schemes under Chapter 3 of the FTP 2004-09, the computation of entitlement is to be done on the FOB value of exports inclusive of commissions and discounts, if any.</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=46&filename=notification/dgft/2008/dgft08cir051.htm" target="_blank">DGFT Policy Circular No. 51 (RE-2008) / 2004-2009 Dated: January 6, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Foreign Trade Policy – NOC
before clearance of Ozone Depleting Substance (ODS) against Advance Authorizations</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has noticed that Advance Authorizations are being issued by Regional Authorities for ODS such as CFCs etc. as one of the inputs under SION or under self-declared cases (under para 4.7 of HBP v.1).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been decided that separate NOC from DGFT would be required for import of ODS items under Advance Authorization Scheme whether under SION or Annual Advance Authorization or under para 4.7 of HBP, v.1.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Request for ‘ NOC ' will be considered by the Norms Committee in DGFT Headquarters, in consultation with Ministry of Environment & Forests.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of ODS as one of the inputs against Advance Authorizations would be allowed by the Customs authority subject to production of a ‘No Objection Certificate' for the same issued by DGFT, New Delhi</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Imports of ODS under Advance Authorisation Scheme shall be subject to the condition that the entire quantity of ODS will be exported out of the country along with manufactured export product and no part of it will be utilized in the DTA for domestic consumption. Further, no import of ODS shall be allowed from the year 2010 even against the valid advance authorization. RA shall make a specific endorsement to this effect at the time of issuance of Advance Authorisation.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of ODS under DFIA would not be allowed.</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=46&filename=notification/dgft/2008/dgft08cir052.htm" target="_blank">DGFT Policy Circular No. 52 (RE-2008) / 2004-2009 Dated: January 6, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Satyam Vadha – killing of the truth</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As long back as in 2001, Meenakshisundaram Ezhil, a Chennai CA wrote for a leading Newspaper that all was not well with corporate governance in Satyam Computers. Today we carry a special article by him and he says it is all a matter of the Right Perspective.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Wall Street Journal yesterday reported that this scam could lead to an overhaul of corporate-governance standards in the country and force changes in how Indian companies do business. The paper stated, “Although some leading Indian companies have become international powerhouses in recent years, the general standard of corporate ethics and accounting have traditionally been poor in India” As if it is so good in America, maybe we learnt a few lessons from them – after all it was an MNC auditing and advising Satyam, which failed to look into the bank statement which any article clerk in India would have casually done.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Satyam – Immediate priority to protect shareholders, employees and Customers</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“We are obviously shocked by the contents of the letter. The senior leaders of Satyam stand united in their commitment to customers, associates, suppliers and all shareholders. We have gathered together at Hyderabad to strategize the way forward in light of this startling revelation” said Mr. Ram Mynampati, Interim CEO. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Satyam's immediate priorities are to protect the interests of its shareholders, protect the careers and security of its approximately 53,000 associates, and meet all its commitments to its customers and suppliers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Satyam believes that its underlying business model, customer assets and growth prospects remain sound, even in the current challenging financial environment. Satyam leadership expressed confidence that the company will be able to overcome this latest development and continue to provide excellent service to clients, while delivering value to shareholders in the medium to long term.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Satyam is committed to uphold the highest levels of corporate transparency and will cooperate with the relevant regulatory authorities to conduct detailed investigations into this matter. Satyam will keep stakeholders informed of the developments on a regular basis.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Satyam Style (from their website)</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Execution:</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ORDINARY PEOPLE DO EXTRA ORDINARY THINGS. (<strong><font color="#FF6633">HE did</font></strong>)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Uncommon Ideas:</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THEY
CAN COME FROM ANY QUARTER AND IN MANY WAYS. (<strong><font color="#FF6633">even
from sons and MAYTAS</font></strong>)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Business Transformation - together </strong> (<strong><font color="#FF6633">with PwC</font></strong>)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is not alchemy - It is chemistry - (<strong><font color="#FF6633">It is also arithmetic</font></strong>)</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">– Monday's cases</font></strong></font></p>
<p align="justify"><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><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>India-France DTAA - no definition of 'operation of ships' in Article 9 - benefits cannot be allowed merely because assessee was engaged in shipping business - linkage between transportation of cargo by feeder vessel and mother vessel owned or leased by assessee is a must to claim treaty benefits: ITAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LACK of uniformity in text is a glaring feature of most DTAAs across the world. And that is how one can see diametrically opposite findings in similar-looking facts and situations. If netizens recall the case of </strong>Delmas Shipping South Africa (Pty.) Limited, the Tribunal's decision had gone in its favour. But the latest decision has gone against its sister concern M/s Delmas France. And the reason for the first case was that there was no dispute about the slot charter arrangement with the feeder vessels but in this case, the same fact was disputed by the Revenue and the assessee failed to substantiate the same by any material on record. Besides, no arguments were put forth regarding linkage of feeder vessels with mother vessels.</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>Detailed Engineering Survey; Cadastral Survey; Soil Investigation; Drawing/submission – not liable to tax under “Consulting Engineering Services." - CESTAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the definition of consulting engineer, any qualified engineer or firm engaged in the business of rendering advice, consultancy or technical assistance as a profession is liable to pay service tax.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Stay – pre-deposit - the word "undue" adds something more than just hardship. It means an excessive hardship or a hardship greater than the circumstances warrant. – High Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOR</strong> a hardship to be undue', it must be shown that the particular burden to have to observe or perform the requirement is out of proportion to the nature of the requirement itself, and the benefit which the applicant would derive from compliance with it. It was also observed therein that the word "undue" adds something more than just hardship. It means an excessive hardship or a hardship greater than the circumstances warrant.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Monday for the judgements</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend</font></p>
<p align="justify"><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></p>
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