TIOL-DDT 1208 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1208 </font><br>
05.10.2009 <br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Services used for exports – Exemption/Refund </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> exemption for service tax on services used for export of goods, operate in a complicated refund procedure and refund is as you know next to impossible in the Central Excise department. Now Notification No. 17/2009 – Service Tax dated 7.7.2009 provides for refund of service tax paid on 16 listed items of service. Certain new services were introduced in the Finance Act 2009, but they were not considered for inclusion in the list for being eligible for refund. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong><a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9601" target="_blank">DDT 1187 01.09.2009</a></strong>, under the caption, <font color="#663399"><strong>Service Tax - Un-notified Issues,</strong></font> we had pointed out that Notifications 17/09 ST and 18/09 ST both dated 7.7.2009 also need suitable amendments. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has reacted after more than a month and has now added Sl No. 17 to Notification 17/09 ST to include <font color="#FF6633"><strong>Service provided for transport of export goods through national waterway, inland water and coastal shipping</strong></font> as eligible for the refund scheme. But is it only from the date of this new notification? Board alone knows. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2009/stnot09_040.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 40/2009-Service Tax, Dated: September 30, 2009 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on EPDM withdrawn </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 75/2006- Customs, dated the 19 th July, 2006, anti dumping duty was imposed on ethylene-propylene-non-conjugated diene rubber (EPDM), originating in, or exported from European Union, United States of America, People's Republic of China and Brazil. Now the Government has rescinded this notification. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_110.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 110/2009-Customs, Dated : September 24, 2009 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-dumping duty on Sun and/or Dust Control Polyester Film </a>– re-imposed </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government had imposed Anti-dumping duty on Sun and/or Dust Control Polyester Film, originating in, or exported from United Arab Emirates and Chinese Taipei, vide Notification No. 101/2004-Cus., dated 29-9-2004, while the provisional anti dumping duty was imposed by Notification No. 133/2003-Customs, dated the 26th August, 2003. So the notification expired on 25 th August 2008. Government was sleeping for three days and woke up on 29 th August and extended the validity of the notification till 25 th August 2009 by Notification No. 100/2008-Cus., dated 29-8-2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Notification again died on 25th August 2009. This time the government's slumber was exactly for a month and now they have re-imposed the anti dumping duty. But during the period, 26 th august 2009 to 24th August 2009, there was no dumping? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it is a proven fact that the Government cannot keep track of its dying notifications – But why should these notifications die? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_111.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 111/2009-Customs, Dated : September 29, 2009 </font></strong></a></p>
<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Deemed Exports – Imported materials exempted </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has exempted materials required for the manufacture of the final goods when imported into India, from whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, and from the whole of the additional duty, safeguard duty and anti-dumping duty leviable under sections 3, 8B and 9A of the said Customs Tariff Act, subject to certain conditions. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_112.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 112/2009-Customs, Dated : September 29, 2009 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value of Brass Scrap increased </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has increased the Tariff Value of Brass Scrap from US Dollars 3252 to 3285 per MT and increased the value of Poppy Seeds from 3008 to 3057 dollars. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_149.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 149/2009-CUSTOMS (N.T.) Dated: September 30, 2009 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Re-Export of defective goods imported under reward - Re-credit of duty – CBEC clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received in the Board seeking extension of the facility of re-credit of the duty presently available to goods imported under Duty Entitlement Pass Book Scheme (DEPB), Vishesh Krishi and Gram Udyog Yojana (VKGUY) and Served From India Schemes (SFIS) to the goods imported under reward schemes such as Target Plus Scheme (TPS) / Duty Free Credit Entitlement (DFCE), Focus Market Scheme (FMS), Focus Product Scheme (FPS) Hi-Tech Product Export Promotion Scheme (HTPEPS). Status Holder Incentive Scheme (SHIS) and AgriInfrastructure Incentive scheme under VKGUY. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has decided to extend the above-mentioned facility to scrips issued under all reward schemes. Accordingly, in case where the goods imported against TPS / DFCE / FMS / FPS / HTPEPS/SHIS/ AgriInfrastructure Incentive scheme under VKGUY are found defective or unfit for use, the same may be permitted to be re-exported by the Commissioner of Customs subject to the following conditions :- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) Re-export of goods takes place from the same port from where the goods were imported; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) The goods are re-exported within 6 months from the date of import; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) The Deputy Commissioner/Assistant Commissioner of Customs, as the case may be, is satisfied about the identity of the goods; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) The goods were not put into use after import. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In such cases, on re-export of goods, 98% of the credit amount debited in the above said duty credit scrips shall be generated by the concerned Custom House in the form of a Certificate. The said Certificate shall inter alia contain details of the original duty credit scrips and the value, quantity and description of the goods exported. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2009/cuscir09_025.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 25 /2009-Cus. Dated: September 29, 2009 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Saptharishi Iyer passes away </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I had never seen him; Never talked to him yet I feel I have lost a close friend. He wrote just one article for us - <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=4170"><strong>Merry-go-round</strong></a>, but you could see him frequently in our Message Board having contributed more than 100 messages. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In response to one our CobWeb pieces, he had posted the following poem in the Message Board </font></p>
<blockquote>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cut no trees <br>
Grow more trees <br>
Trees are our friends <br>
Save the trees, <br>
and our environment <br>
<br>
Waste no paper <br>
Use no plastic <br>
Recycle is the key word <br>
To save our environment <br>
<br>
Remember this poem <br>
For a better world to live <br>
Green as ever <br>
For you and for me </font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Saptharishi </font></p>
</blockquote>
</blockquote>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Suresh Nair,</strong> his friend pays a tribute: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of my close acquaintances from the Department, Saptharishi Iyer left us all for heavenly abode in the late hours of Saturday. He was just 39 years of age, Inspector from the 1992 batch, a hard working and sincere officer. A cruel and massive cardiac arrest ripped apart this dedicated soul from us. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Saptha (as he was fondly called by his friends and loved ones) was genuinely interested in the nuances of the Central Excise and Service tax legislation. His stint with the Review section triggered his first article for TIOL titled “Merry go around”. I cannot forget the long discussions he had with me on different issues around indirect taxes and it is difficult to reconcile with this tragedy. His popularity with his friends was demonstrated by the fact that most of his departmental colleagues and senior officers made it to his residence at Karghar (Navi Mumbai) in the early hours of Sunday morning, from the length and breadth of Mumbai and its outskirts </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He was posted with the Audit section of Mumbai II Commissionerate and was among the rare breed of officers who would carry his files home and work even on holidays. A very cheerful and committed officer, his company was always a delight for his team members and seniors. For someone who never hurt anyone during the seventeen years of Departmental stint, his passing away is a shock for me and all his close friends which probably only time will heal…. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Saptha is survived by his wife Maya and nine year old daughter Janani. I could not face the little one and her heart shattering tears. We have no answers to the designs of the Lord and can I add more?… </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Words are difficult to come but I have only one request to make through this piece and that is to those who can make the difference. I hope that Maya is offered a job in the Department on compassionate grounds - to show that we care for our family members. Whatever be the limitations, I can only hope …… </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">May his good soul rest in peace and God give his family the strength to tide over this irreparable loss. For me and many of his friends and acquaintances both within the Department and in the Trade, Saptha would remain in our hearts forever…. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<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"> – Tuesday'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" 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></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></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 color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 40(a)(ia) is constitutionally valid and there is no arbitrariness, unreasonableness or discrimination in said provision – High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A new sub clause (1 a) of Sec 40 (a) has been inserted into the Income Tax Act by Finance Act (No. 2) of 2004. Under this clause if on any interest, commission or brokerage, rent, royalty, fees for professionals etc., TDS is deductible and if not so deducted or after deduction not paid, the entire expenditure will not be deducted while computing the income chargeable under Profits and gains of business or profession. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">HSD cleared to M/s IOCL and who in turn supplied same to Indian Navy for consumption on board naval vessels – Exemption under notf. 64/95-CE cannot be allowed to indirect supplies – Amending Notf. 37/2007-CE is prospective in nature – CESTAT orders M/s HPCL to make pre-deposit of One Crore </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The matter in question is a demand of over Rs.3.85 Crores raised and confirmed on M/s HPCL in respect of the clearances of HSD Oil to M/s IOCL by claiming the benefit of notification no. 64/95-CE dated 16.3.1995. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This notification, at serial no. 3 of the Table annexed thereto, granted exemption from payment of duty of excise on all goods other than cigarettes, if supplied as stores for consumption on board a vessel of the Indian navy or coast guard. The HSD oil in question was supplied by IOCL to the Indian Navy for consumption on board the naval vessels. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The company is before the CESTAT with a Stay Application. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Imported Chocolate confectionery contaminated with Melamine and containing living larvae – unfit for human consumption - goods confiscated absolutely and penalty imposed equal to value of goods – CESTAT finds prima facie case and orders pre-deposit </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE goods imported by the appellant were declared as “<em>assorted chocolate confectionery</em>” and the same were valued at Rs.30,63,872/-. Samples of these goods were tested at Central Food Laboratory (CFL), Pune and presence of melamine was detected. On this basis, the show cause notice proposed absolute confiscation of the goods alleging that the import was in breach of section 5(i) of the Prevention of Food Adulteration Rules. </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>
</body>
</html>