TIOL-DDT 1251 · 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 1251 </font><br> 04.12.2009 <br> Friday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - alcohol processing - retrospective exemption </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has issued a 11C Notification on manufacture or processing of alcoholic beverages by the service provider, for or on behalf of the service receiver, and that such services being a taxable service were liable to service tax under the said sub-clause (zzb) of clause 105 of section 65 of the Finance Act with effect from 1st day of September 2009, which was not being levied according to the practice during the period commencing from the 1st day of September, 2009 and ending with the 22nd day of September, 2009. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2009/stnot09_043.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification no. 43/2009-Service Tax, Dated: December 2, 2009 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Hazardous Waste (Management, Handling and Transboundary ) Rules, 2008 - Customs Instructions </font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Ministry of Environment and Forests (MoEF) has clarified that: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The SPCBs will register the traders at the earliest as per Form - I of the Hazardous Waste (Management, Handling and Transboundary) Rules, 2008. The importers should intimate the Import Export Code (IEC) No. to the SPCBs. The traders need to register for import on behalf of actual users with only one SPCB. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The time given for traders to get themselves registered with SPCBs has been extended by MoEF for another two months i.e. from 30.11.2009 to 31.1.2010. In the meantime, imported shipments of ** (double asterisk) category of waste listed in Schedule III of Part B would, be cleared by Customs authorities subject to all other conditions being met i.e. they must accompany by Movement Document in Form 9 and Pre-shipment Inspection Certificate and random inspections by Customs authorities. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Prior to the issue of Notification dated 21.7.2009, import of metal scrap was being allowed without any restriction (i.e. there was no distinction between actual user and trader). The difficulty experienced as a result of 21.7.2009 notification has been addressed by the subsequent amendment Notification dated 23.9.2009. The purport of the Rules is to ensure that metal scrap which is otherwise allowed to be imported without MoEF permission and DGFT licence is not mixed with other illegal waste. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MoEF wants the Customs authorities to clear the consignments imported by traders during the interim period from 21.7.2009 to 23.9.2009 subject to the fulfilment of other essential conditions namely Form 9 (Movement Document), Pre-shipment Inspection certificate and random inspection by Customs authorities to ensure that the consignment contain only permitted metal scrap as per declaration. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has instructed that the MOEF clarifications may be implemented by all the Customs field formations. The designated nodal officers in each of the Commissionerates may be requested to liaise with the respective State Pollution Control Board for effective implementation of the above clarifications / decisions of the MoEF. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2009/MoFF.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No. 401 /148/2008-Cus-III Dated: December 03, 2009 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-dumping duty on ceramic tiles other than vitrified tiles – definitive duty imposed before expiry</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PROVISIONAL</strong> anti dumping duty was imposed on ceramic glazed tiles other than vitrified tiles where at least one of the sides (length or width) exceeds 17 inches or 431.80 millimeters (mm) or 43.18 centimeters (cm) or 1.4167 feet, falling under tariff item 6908 90 90 originating in or exported from China PR., by <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_062.htm" target="_blank">Notification No. 62/2009-Cus., dated 15-6-2009</a></strong></em>. This would have been valid till 14.12.2009. And this time around, the Government has woken up before sunset and imposed definitive anti dumping duty with effect from the original date of provisional anti dumping that 15.06.2009. consequently <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_062.htm" target="_blank">Notification No. 62/2009-Cus., dated 15-6-2009</a></strong></em> is rescinded </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> heartily congratulates the Government on this good work and hopes that this will continue. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_127.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification no. 127/2009 - Customs , Dated: December 2, 2009 </strong></font></a></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_128.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification no. 128/2009 - Customs , Dated: December 2, 2009 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs in the 21st Century </font></strong></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Globally Networked Customs </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Better Coordinated Border Management </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Intelligence--driven Risk Management </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Customs Business Partnership </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Standards and tools </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Enabling technologies </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Enabling legal competence </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Knowledge--based and customer based customer--oriented culture </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Capacity building </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Integrity </font></p> </blockquote> <p><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Single window </font></strong></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One--stop service </font></strong></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Traders submit data once to the designated agency which circulate data among relevant agencies </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Coordinated inspection and clearance </font></p> </blockquote> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs best practice </font></strong></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Streamline procedures and data requirement </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Better use of information technology </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Risk management –selectivity </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Audit--based control </font></p> </blockquote> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What are lacking </font></strong></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Accurate commercial data in a timely manner </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Transport and border infrastructure </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Information technology to assess the risk </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Coordination with other border agencies </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Banking system (payment of duties, guarantee) </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Compliance culture and integrity </font></p> </blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[From a presentation by WCO Secretary General, Kunio Mikuriya, at a World Bank function in Geneva December 2, 2009.] </font></em></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Former Chairman of Appellate Tribunal for Foreign Exchange booked by CBI </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Bureau of Investigation has registered a case against former Chairperson, Appellate Tribunal for Foreign Exchange, New Delhi for possession of assets disproportionate to his known sources of income to the tune of about Rs.60,00,000/- as against income of about Rs. 25,00,000/-. <br> <br> Searches have been conducted at five premises in Delhi, Gurgaon & Ghaziabad which yielded a recovery of cash Rs.14,50,000/-; jewellery worth about Rs.2,00,000/-; Rs.55,00,000/- in one of four Bank Accounts; a household articles worth Rs.5,00,000/- and a Car! (can't he afford a car?). Documents showing purchase of a house in South Extension, Part-I for about Rs.1,80,00,000/- as against declared value of Rs.48,60,000/- have also been recovered. It has also come to light that he might have two more properties in Delhi. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further searches and investigations are in progress. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Last week they got the Member of the CLB. The appellate tribunals in the country seem to be in trouble. </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"> – Monday's cases</font></strong></font></strong></font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><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">Service Tax</font></strong></p> <p><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Re-assessment of input services cannot be done at receiver's end – CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">…<strong>UNDER</strong> the Modvat scheme, the assessee is entitled to the Modvat credit based on the classification already determined and the duty already paid at the suppliers' end. There is no provision in law under which at the receiving end where the Modvat credit is taken the jurisdictional authorities can change the classification and restrict the Modvat credit based on the classification which they think would be more appropriate </font></p> <p align="justify"><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">Currency notes of Rs. 42.5 lakhs seized by police in spite of requisition by Income Tax, Police hand over currency to claimant - By not complying with requisition, a grave illegality has been committed by concerned police officer. Money ordered to paid to Income Tax Department – High Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> learned Magistrate was not at all within his powers to order for handing over muddamal currency notes to the respondent when proceedings were initiated by the Department under Sec.132 of the Act. In view of Section 132 of the Act, it shall be the duty of the police authority to comply with requisition issued by the authorized officer of the Department. The police authority has no power to retain the muddamal or hand it over to the respondent No.2. It was incumbent upon him to have handed over muddamal to the Department for completion of proceedings initiated by it. </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">The consignment did not arrive in ship it was shown in the IGM, but arrived in another ship – IGM amended – Customs imposes penalty of about Rs. 15 lakhs – When the IGM was amended no question of discharging cargo under that IGM – High Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THUS</strong>, in view of the fact that the IGM is amended, the very basis of the Order dated 19/3/2002 would not survive and consequently imposing penalty for non-discharge of the cargo would not survive. In other words, on cancellation of Item No.29 of the IGM, there is no question of discharging the cargo under Item No.29 of the IGM and consequently the question of penalising the petitioners for not discharging the cargo set out in Item No.29 of the IGM does not arise. In such a situation, the penalty imposed would become unenforceable.</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="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong> </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend. </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>