TIOL-DDT 1198 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1198 </font><br>
16.09.2009 <br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">More FTP Exemptions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>STATUS HOLDERS INCENTIVE SCHEME : </strong> capital goods when imported into India against a duty credit scrip issued under the Status Holders Incentive Scheme, will be exempted from Customs duty, subject to the conditions that </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The scrip has been issued by the licensing Authority to a status holder against exports of the products of the sectors, namely, leather (excluding finished leather), Textiles and Jute , Handicrafts, Engineering (excluding Iron and Steel, Non Ferrous Metals in primary or intermediate forms, Auto mobiles & Two wheelers, Nuclear reactors and parts and ships, Boats and Floating structures), plastic and basic chemicals(excluding Pharma Products) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. the exports of the products of the above said sectors, made during 2009-10 and 2010-11 shall only be considered for entitlement under the scheme</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. the said scrip shall be non-transferable and shall be used for import of capital goods relating to the sectors specified. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. the capital goods imported against the said scrip shall be subject to actual user condition </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Imports and exports to be through certain specified ports – Commissioner can relax this condition. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_104.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 104/2009- Cus ., Dated: September 14, 2009 </strong></font></a></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exemption to Status Holders: </strong>Certain goods imported by status holders of marine sector and other sectors exempted when imported into India against a Duty Credit Certificate. Notifications 53/2003-Customs, dated the 1 st April, 2003, 32/2005-Customs, dated the 8 th April, 2005 and 73/2006-Customs, dated the 10 th July, 2006 are amended. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_105.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 105/2009- Cus ., Dated: September 14, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SEZ Online with NSDL </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department of Commerce has executed an agreement with NSDL Database Management Ltd .(NDML) for an SEZ Online project. The SEZ Online project intends to establish a nationwide integrated e-governance solution for the administration of SEZ and to facilitate speedy processing of transactions of SEZ Developers, units etc with the Administration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The project would be made operational shortly. Once the project is operational, all applications, transactions etc. has to be made through the system online. The developers and units have to register with NDML for this purpose. Further details in this regard would be provided shortly. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=260&filename=sez/sez_instructions/2006/sez09ins038.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INSTRUCTION
NO 38 of the Department of Commerce</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Brush with hair dye</strong></font></p>
<p class=MsoNormal style='text-align:justify;mso-layout-grid-align:none;
text-autospace:none'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#000000">Brush can be imported free for packaging with hair dye to be
exported - Articles manufactured for consolidation into sets: </font></b><span
style='mso-bidi-font-weight: bold'>Exemption is allowed for articles manufactured by <span class=SpellE>EOUs</span> for
consolidation into sets along with such articles and export thereof (<i>for
example, cuff-links imported for exports along with shirts manufactured
by the unit or a brush imported for packaging with the hair dye manufactured
and exported by the unit, etc</i>.): Amendments are made in Customs and
Excise Notifications. Several Notifications are amended to specify that ‘Foreign
Trade Policy’ means ‘Foreign Trade Policy, 2009 – 2014’ instead
of the old FTP.
<o:p></o:p>
</span></font></p>
<p class=MsoNormal style='text-align:justify;mso-layout-grid-align:none;
text-autospace:none'><b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:#006600'>
<o:p> </o:p>
</span></b></p>
<p class=MsoNormal style='text-align:justify;mso-layout-grid-align:none;
text-autospace:none'><b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:#0000CC'>Notification No.</span></b><span style='font-size:10.0pt;
font-family:"Verdana","sans-serif";color:#0000CC;mso-bidi-font-weight:bold'> <b>106/2009-<span
class=SpellE>Cus</span>., Dated: September 14, 2009
<o:p></o:p>
</b></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
mso-bidi-font-weight:bold'>And
<o:p></o:p>
</span></p>
<p class=MsoNormal style='text-align:justify;mso-layout-grid-align:none;
text-autospace:none'><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
mso-bidi-font-weight:bold'>
<o:p> </o:p>
</span></p>
<p class=MsoNormal style='mso-layout-grid-align:none;text-autospace:none'><b><span
style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#0000CC'>Notification
No.</span></b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";
color:#0000CC;mso-bidi-font-weight:bold'> <b>25/2009-<span class=SpellE>CX</span>.,
Dated: September 14, 2009</b></span><span style='font-size:10.0pt;font-family:
"Verdana","sans-serif";mso-bidi-font-weight:bold'>
<o:p></o:p>
</span></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>For all SEZ problems - go to Department of Commerce </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Actually
they want to solve the problems. The Department reiterates that the establishment
and functioning of SEZ is governed by the provisions of SEZ Act, 2005 and
Rules framed thereunder . The existing framework already provides for the
Board of Approval at the Centre and Unit Approval Committee(s) at the SEZs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These two institutions with members from <strong><em><font color="#FF6633">concerned </font></em></strong> Departments/Ministries tend to serve as a Single Window Mechanism to deal with various types of approvals and other operational issues. <strong><font color="#FF6633">Thus, there may not be any need for addressing SEZ related issues by individual departments of Government of India.</font> </strong> Instead, all issues be brought before the Unit Approval Committees and in case of still any unresolved issue, the same be referred to the Department of Commerce, being the nodal agency for SEZs , for a decision by Board of Approval as per the provisions on the matter. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Remember it is this Department which made SEZ units to pay the Export Duty? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=260&filename=sez/sez_instructions/2006/sez09ins039.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INSTRUCTION NO 39 of the Department of Commerce. Dated: September 11, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value of Brass Scrap (All Grades) increased </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has increased the Tariff Value of Brass Scrap from US Dollars 3235 to 3252 per MT and reduced the value of Poppy Seeds from 3011 to 3008 dollars. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/tariffvalue.pdf" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION NO. 144/2009-CUSTOMS ( N.T. ) Dated: September 15, 2009 </strong></font></a></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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"> – Thursday's cases</font></strong></font></strong></font></p>
<p><font color="#660099" 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 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="#660099" 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" 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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" 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color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Revenue has no need to worry, says CESTAT while dismissing Stay application against Commissioner (Appeals) 's order setting off demand against refund. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commenting that the factual scenario was that a total amount of Rs.17 lakhs was lying with the Department, the Bench viewed that there was no reason for the Revenue to hold any worry and dismissed the Revenue application for stay. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>India-UK DTAA - non-resident sells financial products through subsidiary in India - business porfits - since non-resident company seconds employees to work for Indian subsidiary it is a case of service PE under DTAA - matter remanded for fresh examination - ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reuters Ltd is a tax resident of the UK. It sets up a subsidary in India and enters into multiple agreements like Distributor's Agreement, Product Distribution Agreement and Licence Agreement for royalty payment. Assessee specialises in globally marketing news and financial products through its global communication network. India subsidiary is authorised to sell its products to Indian customers and pay up to the parent company certain percentage of the sales. So far as the royalty is concerned, it pays tax in India as per Article 13 of the DTAA . </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Is interest payable for period during which operation of provisions of statute was stayed by interim order of High Court? <em>- Kabhi Haan Kabhi Naa </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RECENTLY, </strong>an issue came up before the Chennai Bench of the CESTAT on payment of interest for the period during which there is a stay against the operation of the provisions of the Statute. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><font color="#FF6666" 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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