TIOL-DDT 1100 · 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 1100</font><br> 30.04.2009<br> Thursday</strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Issue of installation certificate for the capital goods imported/procured locally under EPCG scheme – DGFT Trade Notice</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Customs Circular No. 14/2008- Cus dated 26th September 2008, the Central Excise Authority is required to issue installation certificate within 30 days from the date of acknowledgment of the application, if found in order. If the installation certificate is not issued within 30 days from the acknowledgment date, it shall be deemed that the capital goods have been installed at the declared address.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT's Mumbai Zonal office has issued a Trade Notice to the effect that:-</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Wherever application for installation certificate is made to Central Excise Authority and if 30 days have lapsed from the date of acknowledgment of such application, the trade shall submit the copy of acknowledgment along with a Chartered Engineer certificate confirming the installation of the capital goods within six months from the date of imports.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The said acknowledgment and Chartered Engineer Certificate shall be accepted by the Zonal office.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. However, the applicant shall submit declaration to the effect that no deficiency has been raised by the Excise Authority and <font color="#FF6600">original acknowledgment has not been called back by the Authority.</font></font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">How do you call back an acknowledgement?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/DGFT_TRADE_Notice.htm" target="_blank">ZONAL JOINT DIRECTOR GENERAL OF FOREIGN TRADE, Mumbai Trade Notice No. 1/AM-10, Dated: April 15, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Provisional Anti Dumping Duty on </font></strong><font color="#006600"><strong>Nylon Tyre Cord Fabric</strong></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has imposed Provisional Anti Dumping Duty on import of Nylon Tyre Cord Fabric originating in or exported from Belarus.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This duty is valid up to and inclusive of the 28th October, 2009. HOPE THEY REMEMBER THIS DATE</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_039.htm" target="_blank">Notification NO. 39 /2009-Customs Dated: April 29, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Provisional Anti Dumping Duty on </font></strong><font color="#006600"><strong>Thionyl Chloride</strong></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has imposed Provisional Anti Dumping Duty on import of Thionyl Chloride originating in or exported from the European Union</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This duty is valid up to and inclusive of the 28th October, 2009. HOPE THEY REMEMBER THIS DATE</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_040.htm" target="_blank">Notification NO. 40 /2009-Customs Dated: April 29, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Definitive Anti Dumping Duty on </font></strong><font color="#006600"><strong>imports of Nylon Tyre Cord Fabric</strong></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has imposed definitive Anti Dumping Duty on import of imports of Nylon Tyre Cord Fabric originating in or exported from the People's Republic of China.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This duty was originally imposed by notification No. 72/2004-Customs, dated the 26th July 2004 provisionally and confirmed by Notification No. 36/2005- Cus ., dated 27-4-2005 and would have expired on 26.07.2009.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has re-imposed the anti dumping duty much before its expiry.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequently Notification No. 36/2005-Customs, dated the 27th April, 2005, is rescinded.</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_041.htm" target="_blank">Notification NO. 41 /2009-Customs Dated: April 29, 2009</a> and</strong> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_042.htm" target="_blank">Notification NO. 42 /2009-Customs Dated: April 29, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Restriction on import of Hot Rolled Coils – Importers need not pay for DGFT's Confusion</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The other day a Deputy Commissioner of Central Excise now working in an SEZ told <strong>DDT </strong> that the Commerce Ministry officers are far better than the Revenue officers as their attitude was to basically help the trade and not harass them. To every issue, the Commerce Ministry official would think of a possible way to help the exporter – to give him what he asked for, while revenue officer's attitude was exactly the opposite.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT is also aware of an Additional Commissioner boasting that he had listed out of 46 ways of fixing an EOU – he said this when a prospective EOU came up for registration.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A client asked me, “what happens if I make a mistake? ”. I replied, “you have to face the consequences”. “What happens if the Department makes a mistake? ”, he asked me. “YOU have to face the consequences”, I replied.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vide Notification No. 63 dated 21.11.2008, import of the item “Hot Rolled Coils” under 4 digit ITC(HS) Code : 7208 has been restricted. Intention of the Notification, according to DGFT, was to restrict all items covered under Code No. 7208 at 4 digit level. This was clarified by DGFT, first on 30.01.2009 to an individual importer and then again on 18.02.2009 to a group of Importers and Customs.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems during the interim period, i.e. 21.11.2008 (date of issue of Notification No. 63) and 18.02.2009 (date of issue of clarification) a number of import consignments of such items (Hot Rolled Products not in Coils) have been allowed by Customs without licence.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has also been informed by Customs that there have been clearances in this Group under ITC Bond as it was not clear whether the Notification No. 63 dated 21.11.2008 covered the whole of 7208 or not.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now to address the grievance of importers, arising out of this confusion, DGFT has clarified that the import clearance without a licence may be allowed for the item, Hot Rolled Products not in Coils covered under ITC( HS) Code 7208, which have been imported during the period 21.11.2008 (date of issue of Notification No. 63) to 18.2.2009 (date of issue of clarification).</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is how the government should work – whatever had been your intention, if it was not clear, give the benefit to the trade instead of bulldozing your way and defending your mistakes.</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/dgft08cir083.htm" target="_blank">DGFT Public Circular NO. 83 (RE-2008)/2004-2009 Dated: April 29, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Walking Sticks – sticks that walk? - a date with Indian Customs</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday the New York Times carried a story about a sculptor's experiences with Indian Customs. MICHAEL ARAM visited India for the first time in 1988 and he writes about the mishaps, mistakes, missteps and the overall misses with Indian Customs.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">His Indian friends wanted him to bring from USA things like pasta, toothpaste and believe it or not, bras.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of the things he learnt about Customs was that underwire-type bras show up on X-ray and cause a lot of embarrassment.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently an ailing friend in New York wanted him to bring in a decorative walking stick from India. He found an inexpensive silver cane with a falcon-shaped handle. It was perfect for her. It also had a really cool feature: it screwed apart midshaft, which made it easy to pack.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On his way out of India, the Indian Customs officer told him that he could not keep the cane unless he was using it. So he took it out of his carry-on, screwed it together and turned to walk away from him, while holding the cane.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the customs officer said he could carry it only if he actually needed to use it.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Realizing it would be too comical, somewhat distasteful and potentially bad luck to pretend to limp, he asked him politely to show him where it was written in the rule book that canes not on active duty were not allowed on the aircraft.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Customs Officer and our Aram together searched the rule book, but they could not find anything about the walking stick, though the American found that he could not carry chilli powder, pickles, pornography, polo mallets and cricket bats, alcohol, and surprisingly, deodorant. There was nothing written about a cane. Not a word.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And what are walking sticks, which figure in the Customs and excise tariffs? Are they sticks that walk?</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">–</font></strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> Tomorrow's cases</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 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 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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><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">Penalty – enhanced penalty by Revision Authority Commissioner - There was no basis for Revisional Authority-cum-Commissioner to acquire jurisdiction to impose penalty: High Court</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HAVING</strong> heard learned counsel for the revenue we are of the view that the provisions of Section 80 of the Act in un-mistakable terms provide that despite the provisions of Section 78, no penalty should be imposed on the assessee for any failure referred in that section if the assessee has shown that there was reasonable cause for the said failure.</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">Transfer of Trade Mark is not transfer of goodwill - goodwill of a business cannot be sold without business itself – no capital gains on sale of trade mark during relevant period – No undisclosed income when receipts were shown in accounts and matter was pending in Court: ITAT</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> importance of maintaining the distinction between the goodwill and the trademark arises because transfer of goodwill became assessable to capital gains tax with effect from 1.4.1988 by virtue of the amendments made to section 55(2). The capital gains have been assessed as undisclosed income for the assessment year 1996-97. Therefore, the assessment to capital gains can be sustained only if the capital asset transferred was the goodwill of the assessee company; if what is transferred is the trade mark, there will be no capital gains to be assessed since the amendment making the cost of acquisition of trade mark to be taken at Rs. Nil came into effect only from 1.4.2002.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Customs</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Misuse of aircraft imported without duty, for Non-scheduled Air Transport Services – Prima facie, Customs has jurisdiction to adjudicate the case – writ petition dismissed: Bombay High Court</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong> is a strange case – it can happen only in the labyrinth of Indian Legal system.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The petitioner had imported an aircraft for Non-scheduled (Passenger) Air Transport Services, without payment of Customs Duty. When the Customs seized the aircraft, he goes to the High Court but withdraws the petition when the department undertook to adjudicate the case within three months.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the Customs Department issues a Show Cause Notice, he is back in the High Court with a plea that Customs has no jurisdiction because his licence is not cancelled.</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>