TIOL-DDT 1090 · 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 1090</font><br> 16.04.2009<br> Thursday</strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Anti dumping Duty on Sodium hydrosulphite – yet another Resurrection</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE History:</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional anti Dumping Duty was imposed on Sodium hydrosulphite originating in, or exported from, Germany and Republic of Korea by Notification No. 61/2003- Cus., dated 1-4-2003. This notification was to expire on 30 th day of September, 2003.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As usual they forgot to extend it before 30th September 2003 but was extended retrospectively <a>by Notification No. 173/2003- </a>Cus., dated 3-12-2003. Even this would have expired on 31.3.2008. And as usual they forgot to extend it.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 44/2008- Cus., dated 7-4-2008, it was further extended till 31.03.2009, seven days after it expired.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In any case this would have expired on 31.03.2009.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Designated Authority in his Notification No. 15/1/2008- DGAD, dated 17 th March, 2009, recommended continued imposition of definitive anti-dumping duty. He recommended it a full two weeks before the expiry. But Revenue was snoring and could wake up only after a fortnight of the expiry.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So they have now issued a new notification imposing fresh anti dumping duty on the product with effect from 13.4.2009. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Was there no dumping between 1.4.2009 and 12.4.2009?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC should seriously consider outsourcing the job of keeping track of sunset notifications. Their record so far had been consistently dismal.</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_035.htm" target="_blank">Notification NO. 35/2009- Cus ., Dated: April 13, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Extension of Export Obligation Period (EOP) against Advance Authorisation – DGFT clarifies</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Public Notice No. 151 dated 26th February, 2009, DGFT had increased original Export Obligation Period (EOP) under the Advance Authorisation Scheme to 36 months from the earlier original EOP of 24 months.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Clarifications have been sought as to whether the facility shall be available only for the authorisations being issued from 26th of February, 2009 onwards or for the authorisations issued prior to this date also.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT clarifies that:</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The facility shall be available to all advance authorisations which are within 36 months from the date of issuance of the authorisation, as on 26th February 2009 or thereafter.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. However in cases wherein composition fee has already been deposited to Regional Authorities prior to 26th February, 2009 for EOP extension in terms of earlier provision of paragraph 4.22 related to EOP extension, no refund of the composition fee so deposited shall be allowed.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The applicant shall be required to file their request on plain paper, without the need for any application in any specified format, or any composition fee, to the Regional Authority concerned for extension in EOP to 36 months in all such cases.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. For authorisation issued from 26th February onwards, 36 months Original EOP endorsement on the Advance Authorisation shall be automatic.</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/dgft08cir080.htm" target="_blank">DGFT Policy Circular No. 80 (RE-2008)/2004-2009 Dated: April 13, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Airlines collecting net fare against published fare from travel agents is commission in substance - liable to TDS</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IF one is looking for a good example of victory of substance and nature of transactions over forms or machinery, here is a landmark decision from the Delhi High Court which has gone in favour of the Revenue and against scores of Airlines. The issue is related to TDS on supplementary commission u/s 194H . The HC has held that </strong> the supplementary commission which is the amount retained by the travel agent is commission within the meaning of Section 194H read with Explanation (i) to the said section. The assessee-airlines were thus obliged to deduct tax at source at the rate prescribed during the relevant period. The assessee-airline having not deducted the tax at source, they are liable to be held, within the terms of Section 201(1), as assessee(s)-in-default and also liable for payment of interest in terms of section 201(1A) of the Act.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this important decision today. See <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8896" target="_blank">Breaking News</a>.</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Lawyers Covered under Consumer Protection Act? – Supreme Court stays NCDRC decision.</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The State Commission, Delhi held that the services rendered by the Lawyer would not come within the ambit of Section 2(1)(o) of the Consumer Protection Act, 1986, as the client executes the power of attorney authorizing the Counsel to do certain acts on his behalf and there is no term of contract as to the liability of the lawyer in case he fails to do any such act. The State Commission further observed that it is a unilateral contract executed by the client giving authority to the lawyer to appear and represent the matter on his behalf without any specific assurance or undertaking.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION held that if there is deficiency in service rendered by the Lawyers, complaint under the Consumer Protection Act, 1986 is maintainable.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This decision is stayed by the Supreme Court. Till the Supreme Court decides the issue, Lawyers are free.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See the Supreme Court <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2009/2009-TIOL-52-SC-MISC.htm" target="_blank">order</a> </strong> and NCDRC <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2009/2009-TIOL-52-SC-MISC.htm" target="_blank">order</a></strong>.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Elections Today – Yet another Holiday</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today the largest Democracy in the world is going to polls in the first phase to elect the new rulers. And it has been declared a Holiday. With the brickbats it received recently <strong>DDT </strong> doesn't dare to take the day off. But is a holiday justified? Many employees have made advance planning on how to spend the holiday. Liquor shops have been closed since yesterday, but those who want to booze have stocked their home bars; others have collected enough DVDs to watch their favourite movies. But voting doesn't seem to be anywhere on the top of the agenda of the holidaying employees.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Voting is not a right, it is a responsibility</strong>; but should employees be given a day off even when they don't vote? Why can't they be given another day's leave subject to the condition that they give a declaration that they have voted. It is an insult to Democracy that employees enjoy a holiday in the name of elections and don't vote.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These elections are crucial to not only our economy but also our security.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See also our <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8892" target="_blank">CobWeb</a></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">–Tomorrow'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">Classification of Dant Manjan Lal – Merely because there is some difference in the tariff entries, the product will not change its character - The primary object of the Excise Act is to raise revenue for which various products are differently classified - Common parlance test continues to be one of the determinative tests for classification of a product – Supreme Court</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MERELY</strong> because there is some difference in the tariff entries, the product will not change its character. Something more is required for changing the classification especially when the product remains the same. The primary object of the Excise Act is to raise revenue for which various products are differently classified There is no doubt that a specific entry must prevail over a general entry DML is a tooth powder which has not been held to be Ayurvedic Medicine in common parlance. Common parlance test continues to be one of the determinative tests for classification of a product whether medicament or cosmetic. There being no change in the nature, character and uses of DML, it has to be held to be a tooth powder - as held in Baidyanath II. DML is used routinely for dental hygiene. Since tooth powder is specifically covered by Chapter Sub-heading 3306, it has to be classified thereunder.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">VAT</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Works Contract Composition Scheme - Section 6 of TN VAT Act – Interim stay granted: Madras High Court</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WORKS </strong>Contract Composition Schemes vary from State to State. The Composition scheme under Section 6 of the Tamilnadu Value Added Tax Act, 2006, provides for payment of 2%/4% rate for Works Contracts under Section 6 of the TNVAT Act, 2006. Like many other states, Composition Scheme in Tamilnadu contains certain restrictions of Input Tax Credit from the inception of the scheme from January 1, 2007. However, on June 8, 2007, Section 6 was amended to provide for an additional condition that a dealer opting for Composition Scheme should <strong>not </strong>buy goods from outside Tamil Nadu and also should not import goods from abroad, for use in the Works Contract. This amendment was given effect to with effect from January 1, 2007.</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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Exports - sale proceeds deposited in EEFC Account - exchange gains due to fluctuation in US Dollar rates on date of realisation in Indian currency - since such gains are related to exports proceeds billed in US Dollar, assessee is eligible for deduction under Sec 10B : ITAT by majority</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MAKING</strong> gains or losses through fluctuation in foreign exchange rates is a part of export business. However, the question before the Third Member of the Tribunal was that whether such gains attributable to fluctuation in the US Dollar rate can be allowed as benefits under Sec 10B? And the final verdict has gone in favour of the assessee as the Tribunal by majority has held that such exchange rate gain is nothing but sales realisation of the billed amount in the US Dollar and is to be treated as an income from the export of goods and articles.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns tomorrow for the judgements</font></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>