TIOL-DDT 1217 · 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 1217 </font><br>
16.10.2009 <br>
Friday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import duty on rice reduced to nil</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CAN </strong>you imagine India importing rice? India is the major exporter of rice in the world and normally we would not think of importing rice. That perhaps is the reason why import of rice attracts a high Customs duty of 70%. But all this changed in early 2008 with recession and inflation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a bid to check inflation, Government of India by Notification No. 37/2008- Cus , Dated : March 20, 2008, fully exempted import of rice from Customs duty for a period of one year – till 31st march 2009. [This was done by suitably amending Notification No. 21/2002- Cus.] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On 1 st April 2009, this notification expired and import of rice again went back to the 70% Customs duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But rice is still costing Rs. 40/- a kg. Just three weeks ago, Commerce Minister Anand Sharma stated that there is no proposal to again exempt customs duty on import of rice as “we have sufficient stocks in the country”. It is strange that Commerce ministers rush into give statements concerning the Finance ministry – which always has an upper hand. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On Monday, the Pakistani newspaper, DAWN reported that China and India had imposed a ban on import of rice, which would certainly lead to a decrease in Pakistan's export. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Both Anand Sharma and DAWN are wrong – the Government has just exempted <em>Semi-milled or wholly-milled rice, whether or not polished or glazed </em>from the whole of the Customs Duty. This exemption will be valid till 30 th September, 2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has amended Notification No. 21/2002-Customs, dated the 1st March, 2002, as follows:- </font></p>
<blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A) in the preamble, in the proviso, after clause (iaf), the following clause shall be inserted, namely:- </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">“ (iag) the goods specified against S.No . 22AC of the said Table on or after the 1 st day of October, 2010” </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">B) in the Table, after S.No . 22AB and the entries relating thereto, the following S.No . and entries shall be inserted, namely:- </font></strong></p>
</blockquote>
<div align="justify">
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
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<td width="59"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td width="72"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td width="167"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td width="57"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
<td width="48"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></p></td>
<td width="47"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(6) </font></strong></p></td>
</tr>
<tr>
<td width="59"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“ 22AC . </font></p></td>
<td width="72"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1006 30 </font></p></td>
<td width="167"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All goods </font></p></td>
<td width="57"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil </font></p></td>
<td width="48"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
<td width="47"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-”. </font></p></td>
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</table>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It took our team a couple of hours to understand what this was all about. The CBEC should have given a Press statement exclaiming the great economic decision. The PR wing of the Board should be a little more active – after all the benevolent steps of the government need to be publicised. </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_118.htm" target="_blank">Notification No. 118/209-Cus., Dated: October 14, 2009 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Compounding of offences under the Customs Act – CBEC issues guidelines </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the basis of the decision of the Supreme Court in the case of U.O.I. vs. Anil Chanana - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=26&filename=legal/sc/2008/2008-TIOL-09-SC-CUS.htm" target="_blank">2008-TIOL-09-SC-CUS</a> </strong> that compounding of offences is undertaken based on the principle of Disclosure, the Board clarifies that the basic <strong>rule of disclosure, </strong> underlying Section 137(3) read with Rule 6 of the Customs (Compounding of Offences) Rules, 2005, is that if there are demonstrable contradictions or inconsistencies or incompleteness in the case of the applicant, then the application for compounding cannot be entertained. Board reiterates that the aforesaid decision of the Supreme Court and rule of disclosure shall be followed while considering the compounding of offences. Accordingly, compounding of offences may not be allowed where there are demonstrable contradictions, inconsistencies or incompleteness in the case. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board also reiterates the following important points. </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Offence committed by officers of Customs/ Central excise does not merit compounding as it is a matter between the State and its employee. Accordingly the definition of the applicant excludes the departmental officers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (ii) As the Chief Commissioner has to decide about the eligibility of the applicant and allow compounding in respect of an application filed before him on the basis of certain facts given by the applicant, it may be ensured that verification of such facts is done by calling for a report or any other facts or information available on record from the reporting authority. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) As per Rule 6 of the Customs (Compounding of Offences) Rules, 2005, any person who has made the application for compounding of offence and has made full and true disclosure of facts relating to the case, is given immunity from prosecution for any offence under the Customs Act, 1962 with respect to the case covered by the compounding of offence. Since the filing of application under compounding rules is the individual option of the person to avoid prosecution, other persons involved in the case/ offence and who have not filed the application would not be given immunity from prosecution. In such situation, remaining persons would face regular proceedings of the department for adjudication/ prosecution/ appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) A new proviso has also been inserted in this rule, which provides that if a person has, in respect of same goods, committed offences falling under more than one category, i.e., Sl.No.1 to 8 of the table specified in this rule and where amount of duty evasion or amount of drawback or exemption from duty, or amount of market value of the goods is same for all such offences, then the compounding amount, in such cases, shall be the amount determined for the offence for which a higher compounding amount has been prescribed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) In terms of Rule 4, an applicant is required to pay duty, penalty, and interest before submission of an application for compounding of offences. Correspondingly, the Application Form also contains a specific column under Sl.No.12A requiring the applicant to declare whether he has paid the same and their details. Hence, it is clarified that the compounding of offences shall not be allowed unless the aforesaid duty, penalty and interest thereon are paid by the applicant. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board further reiterates that at the time of intimation/ initiating action for launching of prosecution itself, the assessees should be given an offer of compounding. It may, however, be clarified that the application for compounding shall be decided on merits and in exercise of the powers vested with the Chief Commissioner. In respect of cases where the Chief Commissioner is not inclined to accede to the applicant's request for compounding, the same may be rejected duly informing the grounds and after following the principles of natural justice. </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=25&filename=notification/custom/2009/cuscir09_029.htm" target="_blank">CBEC Circular No. 29/2009 Dated: October 15, 2009 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Implementation of the Hazardous Waste (Management, Handling and Transboundary) Rules, 2008 – Customs instructions </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ministry of Environment and Forests (MoEF) has clarified that import consignment of hazardous waste shall be accompanied by the shipment movement document i.e. Form – 9 and the test report of analysis of the hazardous waste under import, from a laboratory accredited by the exporting country under Rule 16(5) of the aforesaid Rules. The amendment vide Notification dated 23.9.2009 seeks to provide an alternative to the test report by means of an pre-shipment inspection certificate issued by Inspection and Certification Agency approved by the DGFT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, as regards to permitting import by persons other than actual users on behalf of actual users since the State Pollution Control Boards may take some more time to complete the process of registration, they have requested to issue instructions to the Customs authorities to clear the consignments based on fulfillment of other conditions as stipulated in the Hazardous Waste (Management, Handling and Transboundary) Rules, 2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So CBEC has instructed the amendments introduced in the aforesaid Rules and the instructions of the MoEF vide their O.M.F.No.23-76/2009- HSMD dated 1st October, 2009 may be implemented by all the Customs field formations. Since the nodal officers would have been designated in each of the Commissionerates, they may be requested to liaise with the respective State Pollution Control Board for effective implementation of the above mentioned change. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We hope the Customs field formation do get these instructions and read them! </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=25&filename=notification/custom/2009/instruction09_007.htm" target="_blank">CBEC Instructions in F. No.401 /48/2009-Cus.III Dated : October 15, 2009 </a></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"> – </font></strong></font></strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> Monday's cases </strong></font></p>
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color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Is Aishwarya Rai an actor? Father-in-law comes to her rescue - She is indeed an actor eligible for deduction u/s 80RR - ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amitabh Bachchan the armoured knight coming to rescue damsels in distress in reel life! but this is real life. Daughter-in-law Aishwarya Rai just won a case in the ITAT based on her illustrious father in law's case - <em>Amitab Bacchan Vs. DCIT </em></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=39&filename=legal/itat/2007/2007-TIOL-03-ITAT-MUM.htm">(</a><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=39&filename=legal/itat/2007/2007-TIOL-03-ITAT-MUM.htm">2007-TIOL-03-ITAT-MUM</a></em>).</strong></font> </p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee is a renowned actress and she has mainly derived her income by way of her profession as acting and modelling. She has shown income from other sources as well. During the year under appeal, the assessee had claimed deduction u/ s.80RR - amounting to Rs.54,90,236 /- on, foreign receipts of Rs. 1,85,32,585/-. The AO has negatived the claim of the assessee. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CHA Licence Examination – Department fails to conduct two oral examinations as required because DG, Inspection wanted NACEN to conduct the examination which was not agreed to by the Board. – Petitioner who qualified in the written test allowed to take two oral tests – High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Respondents are, of course, trying to justify their failure to hold the written examination and oral examination with the required frequency as postulated by the Regulations on the ground that the Director General of Inspection, Customs and Central Excise requested the Central Board of Excise and Customs that the examination should be conducted by the National Academy of Customs, Excise and Narcotics Control ( NACEN ) but that request was turned down by the CBEC. This contention is untenable because the result of this is that persons like the Petitioner are deprived of seeking employment. Even if the reason is tenable, they would be required to somehow or the other comply with the Regulations and make up for the shortfall in the requisite number of examinations. </font></p>
<p align="center"><font color="#FF0000" size="3" face="Verdana, Arial, Helvetica, sans-serif"><strong>Happy Deepawali </strong></font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more DDT </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend. </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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