TIOL-DDT 1085 · 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 1085</font><br> 06.04.2009<br> Monday</strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Import of Waste Paper – DGFT Clarifies</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WASTE</strong> paper is classified under ITC (HS) Code No. 4707 9000 and import is free. However, as per Hazardous Material (Management, Handling and Trans-boundary Movement) Rules, 2008 notified by Ministry of Environment & Forests on 24.9.2008, import of the item has been made subject to actual user condition with permission from Ministry of Environment & Forests (MOEF) and a licence from DGFT.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there is an apparent contradiction; while the import is free as per FTP, there is a condition prescribed under the <em>Hazardous Material Rules</em>. In government normally the left hand will not know what the left hand itself is doing, let alone what the right hand is doing.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the DGFT clarifies that till the matter is suitably resolved, importers of waste paper may make an import licence application to the <strong><em>concerned </em></strong> Regional Authority of DGFT for issue of an import licence. The import licence shall be issued by the <strong><em>concerned </em></strong> Regional Authority based on a ‘No Objection Certificate' obtained by the importer from MOEF. In these cases, the Regional Authority shall issue a licence without waiting for any formal approval from DGFT HQrs. This arrangement shall continue in operation for a period of three months from the date of issue of this Policy Circular that is till 1.7.2009.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope they will wake up by that time and sort out the issue.</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/dgft08cir078.htm" target="_blank">DGFT Policy Circular No. 78(RE-08)/2004-2009 Dated: April 01, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">EPCG </font></strong><font color="#006600"><strong> Authorizations to DTA unit after conversion from EOU – DGFT Clarification</strong></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has clarified that</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) The export obligation period for a unit which converts from EOU/SEZ Scheme to EPCG Scheme would be the same as is available to a direct EPCG Authorization Holder i.e. 8/12 years from issue date of EPCG authorization as per Para 5.1 of Foreign Trade Policy (FTP).</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) The unit upon conversion from EOU shall be required to maintain the Annual Average Export Obligation in terms of Para 5.4(i) of FTP.</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=46&filename=notification/dgft/2008/dgft08cir079.htm" target="_blank">DGFT Policy Circular No. 79(RE-08)/2004-2009 Dated: April 01, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">BJP promises IT Exemption up to Rs 3 Lakhs – Remember what they did earlier?</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More than ten years ago BJP leaders have been shouting hoarse that Income tax exemption limit should be Rs. One Lakh – during the six- seven years they were in power they forgot all about it. Now the BJP Manifesto proposes the exemption limit at Rs. 3 Lakhs. If they come to power, they can forget it like last time and if they don't, it is a good election plank! Nothing to lose and everything to gain!! Public Memory is short and you can always take advantage of it.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">U.S. Customs officers seize cash from woman's abdomen </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">U.S. customs officers seized a large bundle of cash strapped to a woman's abdomen at the Hidalgo-Reynosa International Bridge.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The 63 year old woman was attempting to cross into Mexico when a specially trained dog sniffed out the money hidden underneath her clothes. Officers found $148,000 in U.S. currency strapped to her body.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is illegal to carry more than $10,000 when entering or leaving the United States without declaring it to Customs officers. The lady can petition to have the money returned, but she must prove that its source and intended use was legitimate.</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">–Wednesday's cases</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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></strong></font></strong></font><font color="#663399">Central Excise</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Penalty under Rule 26 of the CER, 2002 cannot be imposed against persons who have not dealt with goods- CESTAT by majority<br> </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> had reported the Tribunal decision in <em>Batra International & Ors </em><strong>[</strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2009/2009-TIOL-86-CESTAT-MUM.htm"><strong><font size="1">2009-TIOL-86-CESTAT-MUM</font></strong></a><strong>]</strong> with the following caption “Whether penalty under rule 26 of the CER, 2002 can be imposed against persons who have not dealt with any goods – Matter referred to the President on account of difference in opinion – Tribunal.”</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The majority decision is come and the order is on expected lines.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Income Tax</font></strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ALP as per TNMM - a higher import content of raw material by itself does not warrant an adjustment in operating margins - assessee cannot be expected to get the details and particulars which are not in public domain – ITAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ONUS</strong> is not on the assessee to get all such details of the comparable concerns so as to make this comparison possible. The assessee cannot be expected to get the details and particulars which are not in public domain. In such a situation, i.e. when information available in public domain is not sufficient to make these comparisons possible, it is inevitable that some approximations are to be made and reasonable assumptions are to be made.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Service Tax </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Sharing of knowledge shall not be called as consulting engineering service: CESTAT</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SHARING</strong> of knowledge shall not be called as consulting engineering service when expertise acquired by a concern is also used for its own benefit along with others. Therefore is held that the show cause notice has been misconceived and the adjudication flowing from the show cause notice has no legs to stand.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is a Holiday</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Wednesday for the judgements</font></strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until then 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>