TIOL-DDT 1109 · 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 1109</font><br> 13.05.2009<br> Wednesday</strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Anti Dumping Duty on plastic ophthalmic lenses - withdrawn</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IF</strong> you are using spectacles, especially the bifocal lens, you will find the glasses too heavy – so they have invented the plastic lens so that there is not much of a strain either on your nose or eyes. But the Government of India found that plastic ophthalmic lenses were being dumped from the People's Republic of China (China PR) and Chinese Taipei (Taiwan). So they imposed an anti dumping duty vide Notification No. 55/2004-Customs dated the 19th April, 2004. This was extended up to 4th September, 2009 by Notification No. 103/2008-Customs, dated the 4th September, 2008.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Designated Authority has recommended that the anti dumping duties need not be extended further.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Government has rescinded the Notification No. 55/2004-Customs dated the 19th April, 2004.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So from 11.05.2009, there is no anti dumping duty on plastic ophthalmic lenses.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But now we have a new kind of lens called Progressive lens, which is very popular. Government can have an <em>eye </em> on this – with <em>progressive lens </em> of course.</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_046.htm" target="_blank">Notification NO. 46/2009- Cus ., Dated: May 11, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Levy of Interest under Section 47(2) of the Customs Act, 1962 for delayed payment of duty in respect of clearance of goods from a bonded warehouse – Board Clarifies</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 47 (2) of the Customs Act 1962, where the importer fails to pay the import duty within 5 working days from the date on which the Bill of Entry for home consumption is returned to him for payment of duty, he shall pay interest on the amount of duty till the date of payment of the duty, at the rate fixed by the Central Government. A doubt has been raised whether such interest under Section 47 (2) is payable on goods deposited in a warehouse and for which a Bill of entry for home consumption is filed under Section 68 of the said Act, if the importer fails to pay the duty within 5 working days from the date on which such Bill of Entry filed under Section 68 is returned to him for payment of duty.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has now clarified that</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The provisions of Section 47 (2) are not attracted in case of clearances made under Section 68. Consequently, no interest is liable to be paid on goods deposited in a warehouse and being cleared for home consumption by filing the Bill of Entry prescribed under Section 68 of the Act, ibid, for delayed payment of duty i.e. if the importer fails to pay the duty within 5 working days from the date on which such Bill of Entry is returned to him for payment of duty. However, interest on warehoused goods is payable when they remain in a warehouse beyond the period specified in sub-section (1) of Section 61 as per provisions of sub-section (2) of Section 61.</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=25&filename=notification/custom/2009/cuscir09_015.htm" target="_blank">CBEC Circular No.15/2009- Cus ., Dated: May 12, 2009</a></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Tariff Value of Brass Scrap and Poppy Seeds Increased – Elusive Notification?</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We understand that Tariff values of Brass Scrap and Poppy seeds have been increased to US Dollars 2557 and 4075 respectively. Notification No. 51/2009-Customs (N.T.) dated May 12, 2009 is said to have been issued. All our efforts to get the Notification failed. Maybe the Board will make it available later today but the duty is effective yesterday.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Pendency to be reduced by half – CESTAT President</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Addressing the Bar which arranged a party to welcome him, Justice Khandeparkar, President of the CESTAT said that pendency of appeals would be brought down by half by this year end. Secretary of the Bar Association, RK Jain described the President as not only dynamic but also if needed, a dynamite.</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>Thursday'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 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></strong></font></strong></font></strong></font></strong></font></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">Authorization under Section 35 B (2) has to be signed by both Commissioners – there is drafting error in words - authorized by him in this behalf used in Section 35 B(2) – Tribunal marks copy of order to Board for taking up issue with Ministry</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANY</strong> authorization signed by the Commissioner cannot be called as proper authorization. Even if the wordings in the statute indicate “direct any Central Excise Officer authorized by him”. To our mind there seems to be an error in drafting the said sub-section, as a committee comprises of more than one person and authorization to file an appeal can be given by them only. It is a fact that the decision to file an appeal against the impugned order is taken by a Committee of Commissioners.</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="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Inter-corporate deposits are not deemed dividend under Sec 2(22)(e); Receipt on sale of trademark or brand name is not exigible to capital gains tax, prior to introduction of words 'Trademark or Brand name associated with a business': ITAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING </strong>the concerned year the assessee had taken unsecured loans from various companies. The Assessing Officer vide his letter dated 17-3-2004 called for assessee's objection for treating the unsecured loans as deemed dividend under section 2(22)(e) of the Act. The assessee vide its letter dated 17-3-2004 objected to the proposal of the Assessing Officer. The assessee submitted that it had accepted inter-corporate deposits which were used for the purpose of its business. Instead of taking ICDs from unknown corporate bodies, the assessee-company had taken ICDs from known corporate bodies at prevailing competitive interest rate. It was submitted that the interest paid by the company on these ICDs are offered for taxation by the recipient companies. Thus it was contended that the process of accepting and giving ICDs is a means of alternative finance and cannot be treated as loans and advances under section 2(22)(e) of the Income-tax Act. The assessee further submitted that the sub-clause (ii) provides for an exception to sub-clause (e) of sub-section (22) of section 2 of the Act. This sub-clause excludes from the scope of ‘dividend' any advance or loan made to a shareholder by a Company in the ordinary course of business, where the lending of money is a substantial part of the business of the Company. Hence, ICDs taken from abovementioned companies cannot be treated as deemed dividend under section 2(22)(e) of the Act.</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">Bank Guarantee - Commissioner's fiat against HDFC Bank – Circular struck down - no reasonable person instructed in law could have taken such a decision merely because petitioner was pursuing its legal remedies – High Court </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COMMISSIONER</strong> of Customs, while dealing with the public, in the instant case Commercial Banks, has the duty to act fairly. His acts should not result in denying to the petitioner HDFC Bank an equal opportunity of furnishing bank guarantee like any other commercial bank which would visit the Bank with civil consequences. Circular of the nature issued in its administrative power barring the HDFC bank from supplying bank guarantees to exporters, who have the business with Air Cargo Complex would be arbitrary.</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>