TIOL-DDT 1229 · the untouched capture
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<!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 1229</font> <br> 04.11.2009 <br> Wednesday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Definitive Anti Dumping Duty imposed on Nylon Tyre Cord Fabric </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has imposed definitive anti dumping duty on Nylon Tyre Cord Fabric originating in, or exported from, Belarus. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional anti dumping duty was imposed by Notification No. 39/2009-Customs, dated 29th April, 2009 and this would have expired on 28th October 2009. We mentioned this in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9865" target="_blank">DDT 1226 29.10.2009</a>. </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We also suggested a software to keep track of dying notifications. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has imposed the duty with effect from the original date of provisional imposition. This notification is dated 30th October but was made available to the public only yesterday. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_121.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No.121 /2009-Customs Dated: October 30, 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 reduced </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has reduced the Tariff Value of Brass Scrap from US Dollars 3328 to 3318 per MT and increased the value of Poppy Seeds from 3018 to 3066 dollars. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_159.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION NO. 159/2009-CUSTOMS (N.T.) Dated: October 30, 2009 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1991 humiliation reversed - RBI buys 200 MTs of Gold </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Remember the humiliation of 1991, when we had to pledge about 40 MTs of gold with the Bank of England to temporarily pass over a foreign exchange crunch crisis? Now we can all be proud – the Reserve bank of India has just bought 200 MTs of gold from the IMF. Even the FM said it has a sentimental value. RBI says that this was part of the Reserve Bank's foreign exchange reserves management operations. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC appoints common adjudicators </strong></font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has appointed common adjudicating officers for adjudicating DRI cases pertaining to different jurisdictions. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_161.htm" target="_blank">NOTIFICATION NO. 161</a>, <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_162.htm" target="_blank">162</a>, <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_163.htm" target="_blank">163</a>, <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_164.htm" target="_blank">164</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_165.htm" target="_blank">& 165/2009-CUSTOMS (N.T.) Dated: October 30, 2009 </a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>India-Nepal treaty of Trade & Agreement of Cooperation </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anand Sharma, Union Minister of Commerce and Industry and Rajendra Mahto, Nepalese Minister of Commerce and Supplies signed the 2009 India-Nepal Treaty of Trade and Agreement of Cooperation to Control Unauthorized Trade. The 2009 Trade Treaty revises the 1996 Trade Treaty between the two countries. The 1996 Treaty has been a turning point in the trade relations between the two countries and resulted in phenomenal growth of bilateral trade from Rs. 28.1 billion in 1995-96 to Rs. 204.8 billion in 2008-09. While the Nepalese exports to India increased from Rs. 3.7 billion to Rs. 40.9 billion, the Indian exports to Nepal increased from Rs. 24.4 billion to Rs. 163.9 billion during the period -1995- 2009. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The changes introduced in the Treaty are: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The validity of the Treaty has been increased from five to seven years, along with the provision of automatic extension for further periods of seven years at a time. This will provide more stable framework for bilateral trade and promote investments in Nepal based on preferential access provided by the Treaty to Nepalese products. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. No discrimination will be made in respect of tax, including central excise, rebate and other benefits to exports merely on the basis of payment modality and currency of payment of trade. This will bring the bilateral trade conducted in Indian Rupees at par with trade in convertible currency and will end the existing mechanism of Duty Refund Procedure (DRP) which was procedurally cumbersome. It will provide Nepal a direct control on the customs duty revenues on import of manufactured goods from India. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The time limit for temporary import of machinery and equipment for repair and maintenance has been raised from 3 to 10 years.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 4. Several new items of export interest to Nepal have been added to the list of primary products giving these items duty free access to India without any quantitative restrictions. These include floriculture products, atta, bran, husk, bristles, herbs, stone aggregates, boulders, sand and gravel.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 5. Criterion for calculating value addition for gaining preferential access to India has been changed from ex-factory basis to FOB basis.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 6. India has agreed to consider waiver, on request from GON, of any additional duty that may be levied over and above CVD.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 7. Both sides have agreed to exempt exports of goods, which are already covered under forward contract, from imposition of restrictions on exports.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 8. Both sides will grant recognition to the sanitary and phyto-sanitary certificates issued by the competent authority of the exporting country based on assessment of their capabilities.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 9. Articles manufactured in Nepal, which do not fulfill the criteria for preferential access will be provided MFN access to the Indian market. The certificate of origin in case of such exports has been prescribed.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 10. The provisions regarding safeguard measures in case of serious injury to the domestic industry have been streamlined.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 11. A joint mechanism, comprising local authorities has been established to resolve problems arising in clearance of perishable goods.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 12. An Inter-Governmental Sub-Committee (IGSC) at the joint secretary-level has been established. Existing Inter-Governmental Committee (IGC) at the Secretary-level will meet once in six months and the IGSC will meet at the interval of the two IGC meetings.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 13. Four additional Land Customs Stations (LCSs) will be established to facilitate bilateral trade: Maheshpur/Thutibari (Nawalparasi); Sikta-Bhiswabazar; Laukha-Thadi; and Guleria/Murtia, bringing the total number of Stations to 26.<br> <br> 14. Bilateral trade will be allowed by air through international airports connected by direct flights between Nepal and India (Kathmandu/Delhi, Mumbai, Kolkata and Chennai).</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 15. The Indian side has agreed to review and simplify the existing administrative arrangements for operationalisation of fixed quota for acrylic yarn, copper products and zinc oxide.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 16. India has agreed to consider several additional products as wholly produced or manufactured in Nepal for the purpose of gaining preferential access to the Indian market. It includes articles collected in Nepal fit only for recovery of raw materials and waste and scrap resulting from manufacturing operations in Nepal.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> 17. India has agreed to assist Nepal to increase its capacity to trade through improvement in technical standards, quarantine and testing facilities and related human resource capacities. </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> <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" 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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><font 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>Mere Policy document would not entitle assessee to claim exemption from payment of duty or tax - Exemption by means of a notification issued under Rule 8(1) of CER, 1944 exempting goods from duty (leviable under Central Excise Act) will not constitute an authority for exemption from Cess leviable under Cess Act – CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To claim exemption, there has to be specific Notification in that regard issued by the competent authority. No such Notification has been disclosed at least for the period prior to 1st September, 2004. To what extent the appellants can claim benefit of Notification dated 1st September, 2004 issued by the Ministry of Commerce and Industry in relation to the liability to pay the cess in question is a totally different issue and does not arise for our consideration in the matter in hand as the relevant period for us is prior to 1st August, 2003 . Even otherwise, merely because there was a Notification issued granting exemption from the obligation of payment of cess on 1st September, 2004 onwards that would not automatically be operative retrospectively. </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>Capital gain is leviable on transfer of trademarks and designs - stamp duty of Rs. 1.10 crores, not ‘incurred' by assessee and therefore not an allowable deduction. - ITAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee having assigned the trademarks and designs to Hindustan Lever Ltd., for a consideration of Rs. 110.05 crores, the same is a transfer of a capital asset and in view of the provisions of section 2(42A) <em>Explanation </em>( <em>b </em>), the capital asset which, became the property of the assessee under the transfer which has been referred to in clause ( <em>iv </em>) to section 47 and such other clauses, the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the asset acquired it and increase by the cost of any improvement to the asset incurred and borne by the previous owner or the assessee as the case may be. </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>Even after passing dissenting orders, a Division Bench of Tribunal can entertain an application for rectification of mistake in exercise of inherent powers for ends of justice – CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Hon'ble High Court has also made it abundantly clear that this Tribunal has inherent power to do procedural justice in the case. Happily, there is consensus on this point. Hence, there can be no objection to re-opening of the hearing in this case, nor have we found any. </font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT </strong></font></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p> <p><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>