TIOL-DDT 1206 · the untouched capture
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<p align="justify"><font size="2"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 1206 </font></strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong><br>
30.09.2009 <br>
Wednesday </strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SAFTA EXEMPTION Notifications – Duty rates reduced </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXEMPTION and a bar :- </strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_067.htm" target="_blank"><strong>NOTIFICATION NO. 67/2006- Cus , Dated: June 30, 2006</strong>:</a> The Notification works like this: - There is an Appendix I and an Appendix – II. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appendix I is the list of countries which are not LDCs (Least Developed Countries) and this list has Pakistan and Sri Lanka. Appendix II lists out the LDCs , namely Bangladesh, Bhutan, Maldives and Nepal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There are three Annexures . Annexure I lists 868 tariff headings, Annexure II has 743 headings and Annexure III has 254 relating to textiles. Now these are basically negative lists. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The notification has a table which is a virtual tariff, which allows two rates of duty for import, one for imports from the LDC countries and the other for the NON LDC countries. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now Annexure I is a negative list for imports from Pakistan and Sri Lanka – that means the rates as per this notification will not be applicable to imports from Pakistan and Sri Lanka for the goods covered by Annexure I. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly, there is a negative list for imports from LDC countries. The concessional rates will not be applicable for imports of items covered by Annexure II, imported from LDC countries. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And there is a common negative list – Goods covered under Annexure III pertaining to textiles are not covered by this notification; there is another notification for that. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Textiles – a positive list :- </strong>NOTIFICATION NO. 68/2006- Cus , Dated: June 30, 2006: The 254 textile items, figuring in Annexure III in the above notification which is a negative list there, are made into a positive list in this notification. The items covered will get a concessional duty when imported from the listed countries! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the rates of duty in these notifications are reduced. </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_107.htm" target="_blank">Notification NO. 107/2009-Customs</a> and</strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_108.htm" target="_blank"> <strong>108/2009-Customs; Dated: September 23, 2009 </strong></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exchange Rates for September 2009 </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has notified the rate of exchange of conversion for Imported Goods and goods for Export for the month of October, 2009. Notification No. No. 125/2009-Customs ( N.T. ), dated the 27 th August, 2009 is superseded. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_146.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification NO. 146/2009- Cus .,( N.T. ), Dated: September 25, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Clearance of intermediate goods by an Advance authorization holder to a manufacturer holding another Advance authorization </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. 44/2001-Central Excise ( N.T ), DATED : June 26, 2001, intermediate goods can be removed from the place of manufacture or warehouse without payment of duty for the purpose of use in the manufacture or processing of all articles ["resultant articles"] by a manufacturer who is an holder of a Duty Exemption Entitlement Certificate and an Advance Licence under the Duty Exemption Scheme ‘the ultimate exporter" and their exportation out of India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this concession is available for the supplies made by an Advance authorization holder to a manufacturer holding another Advance authorization, if such manufacturer, in turn, supplies the resultant products to an ultimate exporter in terms of para 8.3(c) of the Foreign Trade Policy, and the procedure, safeguards and conditions as prescribed in the notification shall apply mutatis-mutandis. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2009/exnt09_23.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification NO. 23/2009-Central Excise ( N.T. ), Dated: September 25, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Vigilance Awareness Week – November 03 to 07 </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Vigilance Commission has decided that all the Central Government offices and organisations will observe Vigilance awareness Week from November 3 to November 7, 2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On November 3, 2009 at 11 AM, all Central Government Officers in the country will take a pledge as follows:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE, THE PUBLIC SERVANTS OF INDIA, DO HEREBY SOLEMNLY PLEDGE THAT WE SHALL CONTINUOUSLY STRIVE TO BRING ABOUT INTEGRITY AND TRANSPARENCY IN ALL SPHERES OF OUR ACTIVITIES. WE ALSO PLEDGE THAT WE SHALL WORK UNSTINTINGLY FOR ERADICATION OF CORRUPTION IN ALL SPHERES OF LIFE. WE SHALL REMAIN VIGILANT AND WORK TOWARDS THE GROWTH AND REPUTATION OF OUR ORGANISATION. THROUGH OUR COLLECTIVE EFFORTS, WE SHALL BRING PRIDE TO OUR ORGANISATIONS AND PROVIDE VALUE BASED SERVICE TO OUR COUNTRYMEN. WE SHALL DO OUR DUTY CONSCIENTIOUSLY AND ACT WITHOUT FEAR OR FAVOUR. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>What a farce! </strong></font></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>
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color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6633">CENVAT credit distribution from corporate office to different factories - Commissioner of unit should have got matter examined with his counterpart having jurisdiction over corporate office before re-distributing credit allocated: CESTAT </font></font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">A</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> number of officers in the field, including the Commissioners, often mis -understand the concept of input service distribution and somehow, it seems there is a lot of communication gap between the law makers and the field officers. Many believe that the credit from the corporate office should be distributed proportionately among different units of the assessee. Some believe that when the service received at the corporate office pertains to unit I, the credit of that service cannot be distributed to unit II, though both manufacture dutiable goods. This is one of the most popular queries raised in seminars organized by TIOL. </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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Preservation of environment covered under charitable activity – Pollution Control Board pursuing objects of general public utility. Collecting fee does not affect the situation - Cancellation of Registration as charitable organisation quashed - ITAT </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>assessee is a State Board, constituted under law, for playing a key role in the prevention, control or abatement of pollution of streams and wells in the State and other allied activities. The assessee is also engaged in dealing with matters relating to prevention of air pollution. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner's case was that since the assessee was “earning income over the years in the nature of licence fees, consent fees, testing charges etc” and “since the basic objective of the protection of environment pursued by the Board involves the carrying on of such activities and the earning of such income, the object pursued cannot be considered to be a charitable purpose with effect from the assessment year 2009-2010. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Appeal filed against rejection of refund claims – Provisions of section 35B (6) of the CEA , 1944 not applicable – Minimum fees of Rs.1000 /- acceptable – CESTAT </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> the Customs refund case of <em>Taksal Pharma P. Ltd. vs. CC(Airport), Mumbai </em></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><em><strong>[<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2007/2007-TIOL-1450-CESTAT-MUM.htm">2007-TIOL-1450-CESTAT-Mum</a>]</strong></em></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ,
the appellant had filed an appeal to the Tribunal against an Order of the
Commissioner(Appeals) & paid the fees of Rs.500 /- for COD and Rs.1000 /- for regular appeal. Even before their appeal was disposed, the Registry took an objection that the prescribed fees for filing the appeal were not paid. The
objection was that since the refund claim involved was more than Rs. 5 lakhs
, the appellant ought to have paid a fee of Rs.5000 /- in terms of Section
129A (6)(b) of the Customs Act, 1962. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><font color="#FF6633" 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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