TIOL-DDT 1078 · 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 1078</font><br> 25.03.2009<br> Wednesday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Safeguard Duty on Dimethoate Technical and Aluminium Flat Rolled Products</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has imposed a safeguard duty at the rate of 28 per cent ad valorem on Dimethoate Technical, falling under tariff item 3808 91 23 of the First Schedule to the said Act, when imported into India.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This will not apply to imports from developing countries other than the People's Republic of China.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The safeguard duty shall be effective up to and inclusive of the 8th October, 2009.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Safeguard Duty is also imposed</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) at the rate of 21 per cent ad valorem on all goods falling under heading 7606 (Aluminium Flat Rolled Products) of the First Schedule to the said Act, when imported into India from People's Republic of China; and</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) at the rate of 35 per cent ad valorem on all goods falling under heading 7607 (Aluminium Foil) of the First Schedule to the said Act, when imported into India from People's Republic of China.</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This will also be valid till 8th October, 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_025.htm" target="_blank">Notification NO. 25/2009- Cus ., Dated: March 23, 2009</a> and</strong> <strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_026.htm" target="_blank">26/2009- Cus ., Dated: March 23, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Crude Soya-bean oil exempted from Customs Duty</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has amended the notification No.21 /2002- cus to make the effective rate of duty on crude soya-bean oil as ‘nil'.</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_027.htm" target="_blank">Notification NO. 27/2009- Cus ., Dated: March 24, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of Metallic Waste and Scrap - Conditions</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of metallic waste and scrap in shredded form shall be permitted subject to following conditions: -</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Importer shall furnish the following documents to the customs at the time of clearance of goods.</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I) Pre-shipment inspection certificate as per the format in Annexure I to Appendix 5 from any of the Inspection & Certification agencies given in Appendix-5 to the effect that the consignment does not contain radioactive contaminated material in any form.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">II) Copy of the contract between the importer and the exporter stipulating that the consignment does not contain any radioactive contaminated material in any form.</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import from Hodaideh, Yemen and Bandar Abbas, Iran will continue to be in shredded form only.</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/dgft08pn163.htm" target="_blank">DGFT Public Notice No. 163 (RE-2008)/2004-2009, Dated: March 23, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Waiver of Export Obligation - </strong><em><font color="#663399">force majeure</font> </em><strong> – DGFT deletes para</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per para 5.11.2 of the HBP (Vol.I) 2004-09,</font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Waiver of EO may be considered where, because of force majeure or other unforeseen circumstances/reasons which are beyond the control of the exporters (like steep fall in international prices, technological obsolescence etc.), and the exporter is unable to fulfill export obligation. Such requests shall be considered by a Committee comprising representative(s) of DoC and DoR under DGFT. Decision of this committee shall be notified by DoR for implementation.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the DGFT has deleted this para.</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/dgft08pn162.htm" target="_blank">DGFT Public Notice No. 162 (RE-2008)/2004-2009, Dated: March 23, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Importability of Alternative inputs allowed as per SION under DFIA Scheme</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A doubt has arisen in the field formations of Customs on the issue of allowing alternative inputs as per SION under DFIA scheme, even if the input mentioned in the SION , has not been specifically utilized in the manufacture of the exported product.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has clarified that since the objective of SION is to allow duty free import of the inputs which are actually used or are capable of being used in the export product, the exporter has the flexibility to import the alternative input/product mentioned in the SION.</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/dgft08cir072.htm" target="_blank">DGFT Policy Circular No. 72 (RE-08)/2004-2009 Dated: March 24, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Annual Closing of Government Accounts</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Transactions of Central/State Governments – RBI Special Measures</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With a view to facilitating accounting of all the Government transactions of the current financial year (2008-09) by March 31, 2009 and meeting the probable rush of tax-payers towards the end of the year, it has been decided, in consultation with Controller General of Accounts, Government of India, to take the following special measures relating to Government transactions:</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) All Regional Offices of Reserve Bank of India (RBI) and branches of Agency banks conducting Government business will suitably extend the banking hours to conduct Government business by keeping their counters open for the purpose on March 30 and 31, 2009 to facilitate receipt of Government revenue from members of public even at late hours.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) Special clearing (with return clearing on the same day) shall be conducted in the evening/night of March 30 and 31, 2009, with the approval of the President of local Clearing Houses run by the Reserve Bank of India/Agency bank keeping in view the operational convenience at the local centres so that the clearing instruments relating to Government revenue received from members of public are realized and credited to Government account by March 31, 2009.</font></p> </blockquote> <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_transactions.htm" target="_blank">RBI DGBA.GAD.No.H - 8293 /42.01.029/2008-09 Dated: March 24, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST from 2010 – If Congress is voted back to power</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>We will introduce the goods and services tax from April 1, 2010.</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Congress Manifesto states,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“The Congress-led UPA government successfully implemented VAT throughout the country. This has brought abundant revenues to all States. The Indian National Congress now pledges to take the next decisive step and introduce a moderate goods and services tax (GST). Once GST is implemented, all other central and state-level indirect taxes such as VAT, excise duty, service tax, entertainment tax, luxury tax, etc. will stand abolished and bring substantial relief to the <em>aam admi </em>. GST will create a seamless national common market for our farmers, artisans and entrepreneurs and will boost employment. State finances, and more importantly the finances of panchayats and nagarpalikas, will be put on a sound foundation.”</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Thank God – IPL is not in UK</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday, in <strong>DDT</strong>, we mentioned about the Service Tax liability on IPL matches played outside India.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Suppose the matches were to be held in England:-</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 966 of the Income Tax Act 2007, tax is to be deducted at source when a <em>sportsman or sportswoman who is non-UK resident for a tax year performs a relevant activity in the United Kingdom in the tax year.</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is not all that simple.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If a sportsman plays in England for six weeks of the IPL , the English taxman can ask for tax to be paid on 6/52 or about 11% of their other annual earnings and endorsements. In addition, as the IPL is prestigious and would increase a sportsman's value, the taxman can argue that more than 11% of their total income can be pursued because their endorsements are increased by playing in the IPL. Whoever wins the IPL, it would have been a win-win match for Her Majesty's Tax Administration.</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>Income Tax</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The freight, telecom charges or insurance attributable to the delivery of articles or things or computer software outside India or the expenses, incurred in foreign exchange in providing the technical services outside India are to be excluded both from the export turnover and from the total turnover – ITAT Sp. Bench</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> may be an easy task to exclude the freight, telecom charges or insurance attributable to the delivery of computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India from the export turnover and the total turnover if they are separately mentioned in the invoice raised by the assessee. In the course of the arguments, a question arose as to what would happen if these items are not separately shown in the invoice and are included in the total amount raised by the invoice. It was conceded on behalf of the assessee by its representative that in such a case, the Assessing Officer will have the power to go behind the invoice and find out how much of the invoice mount pertains to the recovery of the aforesaid items.</font></p> <p align="justify"><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>Manufacture and clearance of iron ore concentrate – Department initially alleged activity undertaken by appellants as not manufacture but charges dropped subsequently – Stoppage of duty payment and reversal of CENVAT credit for two months in the interim as a result of confusion created by department – Iron ore concentrate used in manufacture of finished goods cleared on payment of duty in appellants other unit – Pre-deposit of Rs. 37 crores waived and stay granted</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellants were engaged in manufacture of iron ore concentrate and cleared the same on payment of duty w.e.f. October 2005 to August 2007. The Department alleged that the process undertaken by the appellant does not amount to manufacture and hence they were not entitled for CENVAT credit on inputs. A show cause notice was issued in January 2007 which was adjudicated in November 2007 wherein the proceedings were dropped by the original authority. In the interim period, the appellants for a strange reason did not discharge duty liability in September 2007 and October 2007. They also reversed the CENVAT credit availed on the inputs including the credit attributable to the stocks lying with them.</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>Refund Claim sought to be rejected because assessment not challenged – copy of assessment order not given to assessee –Revenue directed to give a copy - CESTAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> this strange case, the Revenue has not given a copy of the assessment order to the assessee, but wants refund to be rejected because the assessment order was not challenged. Commissioner (Appeals) order containing directions to serve copy of assessed Bills of Entry to the appellant upheld. If the same has not been done by the Revenue, awaiting decision in the present appeal, the same by be served now on receipt of the order and shall be challenged by the appellant before appropriate forum. Thereafter, refund claims in dispute, shall be decided.</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="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p> <p align="justify"><font color="#FF6600" 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> </body> </html>