TIOL-DDT 1136 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1136</font><br>
19.06.2009<br>
Friday</strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Verification of new IEC Number – DGFT instructions</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DGFT has issued the following instructions on verification of IEC Numbers.</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Each RA shall carry out physical verification of 10% of the IEC Nos. issued in a particular month. While selecting the IECs for physical verification, RA may take up those cases first where the Bank Account has been opened less than 6 months before application for IEC has been made. Physical verification of partnership/proprietorship firms may be carried out more than of the Companies which are registered under the Companies. Act.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The physical verification shall be carried out by a team of two officials which shall be led by an officer not below the rank of FTDO.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In case any discrepancy is found in any of the IECs by the inspecting team, immediate necessary action must be taken in terms of suspension of the IEC and the following up as per existing provisions and/or disabling IEC on EDI system.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. IEC certificates shall be sent to the applicants on the address indicated in the application by registered post only. In exceptional cases, as decided by the Head of Office of the concerned RA, such certificates may be handed over to the applicants. In case any certificate is returned undelivered by postal authorities, RA may take immediate necessary action in terms of disabling the Code No. on EDI and carry out a thorough antecedent check of the firm before IEC is made operational again.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Each RA must send a monthly report on the physical verification to DGFT (HQ) in ECA Division regularly.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is IEC Number? It stands for Importer-Exporter Code Number. As per para 2.12 of the Foreign Trade Policy, no export or import shall be made by any person without an IEC number unless specifically exempted. An IEC number shall be granted on application by competent authority in accordance with procedure specified in HBP v1.</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/dgft08cir094.htm" target="_blank">DGFT Policy Circular NO. 94 (RE 2008)/2004-2009 Dated: June 16, 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Import of Toys Prohibited</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of "Toys" appearing under ITC Codes 9501, 9502, 9503 of Schedule-1 of ITC (HS) Classifications is prohibited up to 23rd January, 2010 and <strong>until further orders</strong>. However, import of toys accompanied by the following certificates shall be permitted.</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) A certificate that the toys being imported conform to the standards prescribed in ASTM F963 or standards prescribed in ISO 8124 (Parts I-III) or IS 9873(Parts I-III) or standards prescribed in EN 71.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) A certificate of Conformance from the manufacturer that representative sample of the toys being imported have been tested by an independent laboratory which is accredited under ILAC, MRA and found to meet the specifications indicated above. The certificate would also link the toys in the consignment to the period of manufacture indicated in the Certificate of Conformity.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, these conditions will be applicable only on such toys which are included within the scope of the standards under IS 9873 (Part-I) notified by Bureau of Indian Standards (BIS).</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=45&filename=notification/dgft/2008/dgft08not113.htm" target="_blank">DGFT Notification NO. 113 /( RE-2008)/2004-2009, Dated: June 16, 2009</a> and</strong> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir095.htm" target="_blank">Policy Circular NO. 95 (RE 2008)/2004-2009 Dated: June 16, 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Application for IEC – photo identity</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has made an amendment to Para 2.9 of FTP HBP Vol.I to stipulate that "The application (ANF 2 A) for issuance of fresh IEC or modification of IEC shall indicate the name and designation of the person whose photograph has been affixed on the Bank Certificate. A photograph of the person along with his/her name and designation shall also be affixed on the IEC No. to be issued (Appendix 18 B)."</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/dgft08pn187.htm" target="_blank">DGFT PUBIC NOTICE NO. 187 (RE-2008)/2004-09, Dated: June 16, 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Anti-dumping duty on 6-Hexanelactam reviewed and extended</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government of India has reviewed and extended anti-dumping duty on 6-Hexanelactam, (also known as epsilon- Caprolactam), originating in, or exported from, Japan, European Union, Nigeria and Thailand, imposed <em>vide</em> Notification No. 109/2004-CUS dated the 17th November till April 20, 2010.</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_066.htm" target="_blank">Notification No. 66/ 2009-Cus, Dated: June 16, 2009</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti-dumping duty on Vitamin C or its synonyms reviewed and extended</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government of India has reviewed anti-dumping duty imposed on Vitamin C or its synonyms originating in, or exported from, People's Republic of China or any other country and imposed/extended anti-dumping duty on the said products.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-dumping duty was earlier imposed on these products in terms of Notification No. 159/2003-Cus dated October 24, 2003 which was further extended for a period of one year vide Notification No. 109/2008-Cus dated October 21, 2008.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anti-dumping duty is imposed under this notification for a period of five years unless revoked, superseded or amended earlier. The duty shall be paid in Indian currency as per the exchange rates prescribed in terms of the relevant notification issued under from time to time.</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_067.htm" target="_blank">Notification No. 67/2009-Cus, Dated: June 16, 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Rescission of Customs Notification</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government of India has rescinded Customs Notification 159/2003-Cus dated October 24, 2003 in view of issuance of Notification 67/2009-Cus imposing fresh anti-dumping duty on Vitamin C or its synonyms for a further period of five years.</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_068.htm" target="_blank">Notification No. 68/2009-Cus, Dated: June 16, 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Instructions on handing over charge of IT/ITES SEZ to </font></strong><font color="#006600"><strong> <font color="#FF6600">‘concerned' </font>Director, STPI</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Development Commissioners have sought clarifications regarding inspections of SEZs to be notified and maintenance of original files connected thereto. In this regard, it is clarified that all the original files of SEZs i.e. papers relating to notification of all SEZs (IT or otherwise) have to be maintained by the Zonal Development Commissioner. Further all inspections and reports etc. of SEZs till it is notified has to be done by the jurisdictional Zonal Development Commissioner.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Zonal Development Commissioners are indicated in table below (Annexure I):</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Annexure-I</strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>List of Zonal DCs and the States under their jurisdiction</strong></font></p>
<div align="justify">
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td colspan="2"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Name of DC</strong></font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>States</strong></font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC, KSEZ</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gujarat</font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC, MEPSEZ</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tamilnadu</font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC, SEEPZ SEZ</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra, Goa, Dadra & Nagar Haveli</font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC, NSEZ</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Uttar Pradesh, Madhya Pradesh, Rajasthan, <br>
Delhi, Punjab, Haryana, Chandigarh, <br>
Chattisgarh, Uttarkhand</font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC, CSEZ</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kerala, Karnataka</font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC, FALTA SEZ</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">West Bengal, Orissa, Assam, Jharkhand, <br>
Pondicherry, Nagaland</font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC, VSEZ</font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Andhra Pradesh</font></p></td>
</tr>
</table>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=260&filename=sez/sez_instructions/2006/sez09ins017.htm" target="_blank">Commerce Ministry Instruction No. 17, Dated: June 18, 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Mere collaborative effort and the overall responsibility for the successful performance of the project is not sufficient to constitute an AOP - AAR</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Authority for Advance Ruling on Wednesday ruled that</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mere collaborative effort and the overall responsibility assumed by the applicant for the successful performance of the project is not sufficient to constitute an AOP;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the sale of equipments and materials took place outside the territories of India and the income in relation thereto cannot be said to accrue or arise in India;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">activities incidental to the supply of imported goods such as transportation, storage and delivery ought not to be attributed to the PE;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this important Ruling today.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9196" target="_blank">Breaking News</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">–Monday'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 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><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">ROM application filed after 471 days along with COD – CESTAT has no power to condone delay and admit applications filed beyond six months period</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AGAINST </strong> the Tribunal order dated 13.4.2006, the Revenue filed an appeal before the Bombay High Court. For reasons best known, this appeal was withdrawn and a Rectification of Mistake (ROM) Application was filed before the Tribunal with an application for Condonation of Delay – <em> the delay sought to be condoned is of 1 year and 3 months and 16 days.</em></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">Creation of reserve had no implication and even it did not alter in any manner computation of total income - decision of the AO was one possible view in matter - CIT's review not correct – ITAT</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TRIBUNAL </strong>held that the order cannot be said to be erroneous and prejudicial to the interest of revenue. In view of the fact that the decision of the AO was one possible view in the matter, the other cases relied upon by the ld. DR regarding lack of enquiry etc. cease to have any implication.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Customs/Excise</font> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Development Commissioner cancelling the provisional permission given earlier on the ground that for determining the DTA sale entitlement only physical exports were to be taken into consideration and not deemed exports – Revenue has a strong prima facie case – CESTAT orders pre-deposit of Rs. Four Crores</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Tribunal observed that in the preliminary round of deciding the stay applications, the Revenue has been able to put up a strong prima facie case in their favour relying on the letter of the Development Commissioner rejecting the request of the applicants to include the ‘deemed export' clearances for determining their DTA sale entitlement. On the ground of financial hardship, the Bench noted that a balance had to be struck between the applicant's claim and that of safeguarding government Revenue in view of the Apex Court decisions in Monotosh Saha <strong> [<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2008/2008-TIOL-156-SC-FEMA.htm"><font size="1">2008-TIOL-156-SC-Fema</font></a>] </strong>and Benara Valves Ltd <strong>[<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2006/2006-TIOL-156-SC-CX.htm"><font size="1">2006-TIOL-156-SC-CX</font></a>]</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Monday for the judgements</font></strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend.</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>
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