TIOL-DDT 1058 · the untouched capture
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<p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1058 </font></strong><font size="2"><strong><br>
23.02.2009 <br>
Monday </strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs Exemption to Goods under Hi-tech Product Export Promotion Scheme </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has exempted goods when imported into India against a duty credit scrip issued under the Hi-tech Product Export Promotion Scheme in accordance with paragraph 3.11 of the Foreign Trade Policy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Objective of the Scheme is to incentivise export of High Technology products. The Revenue has now notified the exemption. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exemption from duty shall not be admissible if there is insufficient credit in the said scrip for debiting the duties leviable on the goods. The scrip and goods imported against it shall be freely transferable. The importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said scrip. </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_014.htm" target="_blank">Notification NO. 14/2009 – Cus - Dated: February 19, 2009 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Utilization of scrips issued under reward schemes for the import of restricted items – Several Customs Notifications amended.
</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The following Notifications are amended to permit utilization of scrips issued under reward schemes for the import of restricted items </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) <strong>Served From India Scheme Certificate </strong> – Notification No. 92/2004- Cus </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) <strong>Vishesh Krushi and Gram Udyog Yojana </strong> – Notification No. 41/2005 - Cus </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) <strong>Target Plus Scheme </strong> - Notification No. 73/2006 – Cus </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) <strong>Focus Market Scheme </strong> – Notification No. 90/2006 – Cus </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) <strong>Focus Product Scheme </strong> - Notification No. 91/2006 - Cus </font></p>
</blockquote>
<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_015.htm" target="_blank">Notification NO. 15/2009 – Cus - Dated: February 19, 2009 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Import of goods against the authorizations on the basis of self declarations where Standard Input Output Norms does not exist – Notification amended </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 94/2004-Customs, dated the 10 th September, 2004 exempts materials imported into India, against an Advance Licence for Annual Requirement or Advance Authorisation for Annual Requirement with actual user condition in terms of Paragraph 4.1.10 of the Foreign Trade Policy. </font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Now a new proviso is added to Condition 2 of the Notification to stipulate that the authorizations issued on the basis of self declaration where Standard Input Output Norms are not fixed, shall also be valid for import of inputs required for the manufacture of export products provided the authorization holder shall prove to the satisfaction of the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, that an application in Aayat Niryat form along with documents specified therein has been submitted to the Director General of Foreign Trade, in terms of para 4.7 of the Hand Book of Procedure (Volume I) of Foreign Trade Policy before making the first shipment; </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_016.htm" target="_blank">Notification NO. 16/2009 – Cus - Dated: February 19, 2009</a> </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Imports Under DFIA – No Bond if EO is Fulfilled </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">New Conditions are added to Notification No. 40/2006 – Cus to stipulate that </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. In respect of imports made after the discharge of export obligation in full, if facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or CENVAT Credit under CENVAT Credit Rules, 2004 has been availed, then the importer shall, at the time of clearance of the imported materials furnish a bond. If these facilities are not availed, no bond is required. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. If the imported materials are transferred, duty has to be paid with interest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unfortunately, DDT admits these amendments are too complicated to be explained in a few lines in these columns. However you may refer to one of our recent articles <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7998" target="_blank">Export promotion schemes vs. Cenvat Credit or Rebate under Rule 18: The myth and the reality </a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We will try to detail these changes in an article soon. </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_017.htm" target="_blank">Notification NO. 17/2009 – Cus - Dated: February 19, 2009 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Amma Jayalalithaa in Trouble just before the elections – Loses Criminal case petitions on Wealth Tax </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Madras High Court recently disposed of two petitions by Madame Jayalaithaa regarding prosecution proceedings against her in a Wealth Tax case. This case started sometime in 1997 and there were about 180 adjournments. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Court made some interesting observations on certain legal principles. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The facts are of two types:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) <em>Facta probanda </em> - the facts required to be proved (material facts); and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) <em>Facta probantia </em> - the facts by means of which they are to be proved (particulars or evidence). </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The complaint should contain only <em>facta probanda </em> and not <em>facta probantia </em>. The material facts on which the complainant relies for bringing home prima facie the offence alleged are called <em>facta probanda </em> and they must be stated in the complaint but the facts or evidence by means of which the material facts are to be proved are called <em>facta probantia </em> and they need not be stated in the complaint. They are not the fact in issue but only relevant facts required to be proved at the trial in order to establish the fact in issue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>There are some interesting coincidences worth noting </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The complaint was filed in 1997 – till 1996, Jayalalithaa was Chief Minister </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">She filed the discharge petition only in 2001 – she had come back to power by that time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The counter of the government was filed only in 2004 – A new government very friendly with her arch rival DMK had come to power in centre. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And now we are in 2009 with elections round the corner and Amma has to be busy fighting it out in two fronts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We will bring you full text of the case tomorrow. Incidentally tomorrow is her birthday. </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">–Tomorrow'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>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cable Jointing kits - Undervaluation of manufactured inputs – Demand of Rs 5 Crore - Tribunal directs pre-deposit of Rs 15 lakhs for getting stay. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>year was 1997 and telecom industry in the country was on the upswing. This was also the time when some manufacturers started assembling Cable Jointing Kits and selling the same in the market, a demanding market that is! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board was watching all these activities and after examining the matter in ‘ <strong><em>depth </em></strong>' [<em>yes, these kits were being used for jointing underground cables</em>] came out with a <em>Circular ... </em></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Surcharge in block assessment cases - Insertion of proviso to Sec 113 was clarificatory in nature - surcharge to be levied in search cases even before June 1, 2002 –Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SURCHARGE </strong>in block assessment cases in Income Tax has for long been a 'charge' on protracted litigation. What spewed a bulk of litigations was the major confusion about <strong>whether it was leviable as per the rates provided in the Finance Act of the year in which the search was initiated or the year in which the search was concluded or the year in which the block assessment proceedings under Section 158 BC were initiated or the year in which block assessment order was passed. </strong> Then the Govt inserted a proviso to Sec 113 vide Finance Act, 2002 w.e.f 1.6.2002 which was largely interpreted to mean that surcharge was not applicable to search cases booked before 1.6.2002. However, in the latest decision the Apex Court has held that the insertion of proviso to Sec 113 was only to clear the doubt that the rates prescribed by the Finance Act of the year in which search was conducted will apply. In other words, it has now been held that <strong>the proviso to Sec 113 was only clarificatory in nature. </strong></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="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Authorization ought to have been given by Committee prior to filing of appeal under Sec 129A of Customs Act and not after appeal was dismissed on that ground – ROA dismissed by Tribunal </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE </strong><em>reporting the “ <strong>dasti </strong>” order [What is ‘ dasti '? – See <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3263" target="_blank">DDT-299</a></strong>] passed by the Tribunal in the case of CC(Gen), Mumbai vs. Canon Shipping Co. Pvt .Ltd. <strong>[</strong></em><font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2008/2008-TIOL-1427-CESTAT-MUM.htm" target="_blank"><strong>2008-TIOL-1427-CESTAT-MUM</strong></a></font><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2008/2008-TIOL-1427-CESTAT-MUM.htm" target="_blank"><strong> </strong></a><strong><em>] </em></strong><em>with the caption “Recalcitrant Revenue finds its appeal dismissed by Tribunal as being defective”, </em>we had ended the article thus - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>“ Revenue Appeals - a farcical affair ? </em></strong><br>
<em>Filing an appeal for the sake of filing one has become the order of the day. It was only a small “authorization” that was required to be filed along with the appeal and that should have ended the matter, presuming there is one on record! Fortunately, the Tribunal did not vent its ire against the helpless DR, but we are certain this is not the end of the story! </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>If you think nothing is impossible, try yawning with your mouth closed – Anon” </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As <strong><em>predicted </em></strong> by us, that was not the end of the story. It continued and saw the light of the day as an application for Restoration of the Appeal was filed by the Revenue. </font></p>
<p align="justify"><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Until Tomorrow with more DDT </font></strong></font></p>
<p align="justify"><font color="#FF6633"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></strong></font></p>
<p align="justify"><font color="#FF6633"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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