TIOL-DDT 1327 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1327 </font><br>
29.03.2010 <br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Time limit for Re-importation from Nepal Extended to 10 years </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>NOTIFICATION</strong> <em>No. 158/95-Cus dated November 14, 1995</em> as amended provides that goods manufactured in India and parts of such goods whether of Indian or foreign manufacture and re-imported into India for repairs or for reconditioning, are exempt from the whole of basic customs duty and additional duty of customs leviable under Section 3(5) of Customs Tariff Act, 1975 subject to one of the conditions amongst others viz., that such re-importation takes place within 3 years from the date of exportation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
by way of an amendment, a proviso is added to the said condition which allows <em>re-importation
to take place within 10 years</em> from the date of exportation <em>in case
of Nepal</em>. Will somebody in the Board answer as to why the deadline
for re-importation is extended from 3 years to 10 years in case of Nepal?
Who is benefiting from this extended generosity? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_034.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 34/2010–Cus, Dated: March 16, 2010</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Assessment of Goods Imported from M/s Kodak China PR </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> virtue of <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2007/ctariff07_108.htm" target="_blank">Notification No. 108/2007-Cus dated September 25, 2007</a></strong></em>, Government had imposed definitive anti-dumping duty on import of pre-sensitized positive offset aluminium plates (PS plates) originating in, or exported from, Bulgaria, China PR, Malaysia, Singapore and South Korea and imported into India at the rates specified in the said Notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In terms of Rule 22 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, M/s. Kodak (China PR) Graphic Communications Company Ltd., (a producer/exporter from China PR) has requested for a review of the anti-dumping duty imposed on exports made by them. In pursuance of this request, the designated authority through a Notification dated January 8, 2010, recommended provisional assessments of all exports from the said company into India till the completion of the review. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
view of this recommendation, the Government has ordered that import of the
said goods from this exporter shall be subjected to provisional assessments
till the completion of the review. The provisional assessment may be subject
to such security or guarantee as the Assistant/Deputy Commissioner of Customs,
deems fit for payment of the deficiency, in case a definitive anti-dumping
duty is imposed retrospectively, on completion of investigation by the designated
authority. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The importers would be liable to pay such amount of anti-dumping duty as recommended on review, on all imports into India of the subject goods from M/s. Kodak (China PR) Graphic Communications Company Ltd from the date of initiation of the said review. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_035.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 35/2010–Cus, Dated: March 19, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff concessions enhanced for imports from Bangladesh, Bhutan, Maldives and Nepal</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_107.htm" target="_blank">Notification No.107/2008-Customs, dated October 6, 2008</a></strong></em> to enhance tariff concessions for imports from Bangladesh , Bhutan , Maldives and Nepal , into India . Hitherto, wherever the tariff concession (i.e. percentage of applied rate of duty) is 50%, it is now enhanced to 75% and wherever it is 75%, it is enhanced to 100% (full exemption). </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_036.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 36/2010–Cus, Dated : March 22, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Anti-Dumping Duty on Imports of Barium Carbonate </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL</strong> Government has imposed provisional anti-dumping duty on imports of barium carbonate falling under Chapter 2836 60 00 originating in, or exported from, People's Republic of China and imported into India based on a recommendation from the designated authority who recommended provisional anti-dumping duty through a Notification dated January 8, 2010. This provisional anti-dumping duty shall be effective upto and inclusive of September 22, 2010 and payable in Indian Currency at the rates notified in the Notification. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_037.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 37/2010–Cus, Dated : March 23, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Anti-Dumping Duty on Imports of Coumarin </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Government has imposed provisional anti-dumping duty on imports of coumarin falling under Chapter 2932 21 00 originating in, or exported from, People's Republic of China and imported into India based on a recommendation from the designated authority who recommended provisional anti-dumping duty through a Notification dated January 29, 2010. This provisional anti-dumping duty shall be effective upto and inclusive of September 22, 2010 and payable in Indian Currency at the rates notified in the Notification. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_038.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 38/2010–Cus Dated : March 23, 2010</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Definitive anti-dumping duty on injection presses, having clamping force not less than 40 tonnes</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL</strong> Government has imposed definitive anti-dumping duty on import of all kinds of plastic processing or injection moulding machines, also known as injection presses, having clamping force not less than 40 tonnes, falling under Chapter 8477 10 00. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier a provisional anti-dumping duty was imposed vide <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_047.htm" target="_blank">Notification No. 47/2009-Cus dated May 12, 2009</a></strong></em>. Now based on the final findings of the designated authority which were notified on January 1, 2010 wherein a definitive anti-dumping duty was recommended, the Central Government has imposed definitive anti-dumping duty which shall be valid for a period of five years from the date of imposition of the provisional duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Overactive DRI?</font></strong> Meanwhile in several places, DRI has booked cases and seized injection moulding machines even when they are not plastic processing machines – their interpretation is ‘the anti dumping duty is on <strong>plastic processing</strong> or <strong>injection moulding machines</strong>'. The injection moulding machines need not be plastic processing machines. If that were to be so, why should the word plastic be used at all? It can be simply all processing or injection moulding machines! But DRI sleuths are not prepared to listen to reason and all seized machinery are resting idly and importers are running from one DRI office to another to get them released. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will somebody help them? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_039.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 39/2010–Cus Dated : March 23, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Board appoints Adjudicating Authorities for DRI cases </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> issued notifications appointing adjudicating authorities for various show cause notices issued by DRI. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_021.htm" target="_blank">Customs Notifications 21/2010-Cus(NT)</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_022.htm" target="_blank">22,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_023.htm" target="_blank">23,</a> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_024.htm" target="_blank">24,</a> to <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_025.htm" target="_blank">25/2010-Cus(NT) All Dated: March 22, 2010 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cash Payments Eligible for fulfilment of EO by Service Providers under EPCG Scheme/SFIS Scrips</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REGIONAL</strong> Authorities and Service providers have sought clarifications for issuance of EPCG Authorization in cases where the service provider receives foreign exchange in cash from foreign consumers in India, for the purpose of fulfilment of EO under EPCG scheme/ as well as for eligibility for SFIS scrips . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT examined the issue and clarified that EPCG scheme is eligible for all service providers as listed in Appendix 10 of HBP Vol. I. Further, in terms of RBI guidelines, for services rendered by the service provider, the foreign consumers (including NRIs) are permitted to make payment in cash (i.e. in foreign currency notes) over the counter to the service provider, as per limits prescribed by RBI. Such service providers earning foreign exchange by receipt of foreign currency in cash from their customers would be entitled to count such payments received in foreign currency notes towards export obligation of EPCG. Such earnings of foreign exchange shall also be entitled for SFIS scheme. In such cases, as per the RBI rules, the service provider surrenders the foreign currency notes to Authorized Persons (APs , including the APs ' franchises). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, for claiming benefit of such foreign exchange received in cash by the service provider under the EPCG or SFIS scheme, the service provider must maintain a separate register containing the foreign consumer's details, like Name, Passport Number, date and amount of foreign exchange received in cash. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2009/dgft09cir027.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Circular No. 27/2009-2014, Dated: March 25, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Guidelines for Declaration of Materials received for remaking, repairing & re-melting by Gems and Jewellery Unit</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> following procedure should be followed prospectively by all Gems & Jewellery units for bringing in jewellery, broken jewellery etc for remaking, re-melting, repairing, etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(A) (i) All units have to declare, at the time of import the nature of the product, i.e. if the jewellery is used, unused, new, broken, with the quantities separately on the import documents for clear identification thereof. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The officers examining the import consignments will verify that the declarations are filed and wherever necessary open and inspect the consignments after seeking approval of the Development Commissioner. Discrepancies if any found will have to be explained and brought on record. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Before importing jewellery for such case, units should file a revised Form-F, wherever necessary. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(B) Such unused, used or broken jewellery being brought for re-melting, remaking and repairs will have to be recorded on the receipt side in a register to be maintained by each unit, under separate headings indicating the description and quantity and linking it with the import documents. On the issue/removal side of the register they will keep a corresponding entry for issuance for the purpose i.e. re-melting, repairing, remaking and thereafter there should be an entry of date of such removal along with quantity and description as also the actual quantity of metal recovered by re-melting or the quantity or description of the jewellery remade and the quantity or description of the jewellery repaired along with its export particulars, as and when exported. This register to be maintained by the unit should enable the concerned authorities to inspect and ascertain that used/unused/broken jewellery being imported is being properly accounted for remaking, re-melting and repairs and export thereafter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(C) The register being maintained should have serially numbered pages. It should be maintained for each financial year and balances should be struck at the closing of each month so that it would facilitate the concerned authorities to inspect and verify the accounts maintained. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(D) The unused/used and broken jewellery being brought in as raw material for re-melting, remaking and repairing has to be stored separately and the quantities in stock as per the requirement prescribed hereinabove should tally with the stock challan /stock taking by the proper officer. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=260&filename=sez/sez_instructions/2006/sez09ins051.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SEZ Instruction No. 51, Dated: March 25 , 2010 </font></strong></a></p>
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="2">Jurispruden</font><font color="#FF6633" size="3">tiol</font><font color="#006600" size="2"> – Tuesday's
cases</font></strong></font></strong></font></p>
<p><font 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"><strong><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Duty cannot be demanded from Director of company - Tribunal was not right in ordering pre deposit of penalty from company covered under SICA - Directed to hear appeal: High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SO</strong> far as penalty is concerned, the same was not recoverable from the Company so long as the Company was under the umbrella of section 22 of the SICA . Consequently, the Tribunal was not justified in directing pre-deposit to the extent of 50% of the penalty in its impugned order dated 19th June, 2009. To that extent the impugned order is liable to be set aside being bad and illegal. Appeal is restored to the file of the Tribunal with direction to hear and decide the same on its own merits. </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">Assessee is wholly owned subsidiary of US-based non-resident company - forms two JVs - agrees to partly reimburse advertising costs - AO invokes Sec 92 as reimbursement reduces profits of assessee - Transfer pricing provisions not applicable in this case as reimbursement does not affect income of non-resident company: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the Marketing Support agreement, if the business of the franchises is expanded and its sales are increased, it will result into an increase in profitability and consequently it will increase the return on the investments as well as result in an increase in the net wealth of the franchisee company. This shows the purpose for which the assessee has agreed to bear a part of the advertisement expenditure which was otherwise to be borne by the franchises. The purpose is to increase the return on investment, i.e., dividend and increase in net worth of investment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the Master License Agreement along with franchises agreement, the assessee is not earning anything on account of royalty and entire royalty is to be passed on to McDonald's Corporation, USA and, hence, the Assessing Officer could have examined the allowability of such advertisement expenditure borne by the assessee which was otherwise to be borne by the franchises. Because the so-called increase in return on investment of the assessee will be in the form of dividend income which is an exempt income and, hence, any expenditure incurred for earning an exempt income is not allowable under section 14A of the Income-tax Act, 1961. The Assessing Officer could have examined the allowability of such advertisement expenditure on this basis but this was not done by him. </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">An appellant cannot be worse off by being in appeal before Tribunal: High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is needless to mention here that the jurisdiction of the Appellate Tribunal should, in the absence of express words in the statute, be governed by the subject matter of the appeal. the Tribunal has no jurisdiction to pass an order, so as to permit a ground to be raised by the Respondent which, if allowed, would made the position of the Appellant worse than what it was before.</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>
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