TIOL-DDT 1338 · 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 1338 </font><br>
15.04.2010 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export Duty on Cotton yarn? Where is Notification? </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> hear that the government has imposed an export duty of Rs. 2500/- per tonne on exports of cotton yarn. It seems this duty was imposed on 9 th April, 2010 and to this day, nobody in the world has a copy of the notification! It is really strange that the CBEC is shy of releasing its notifications in the public domain. Are we in the medieval period? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I will be happy to apologise if there is no such notification, but if there is one, what is the justification for hiding it from public view especially if the levy is effective from 09.04.2010?</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We hope to bring you the notification later in the day.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Anti-dumping Duty imposed on DVDs </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</strong> on the recommendations of the Designated Authority's preliminary findings, the Central Government has decided to impose provisional anti-dumping duty on ‘recordable digital versatile disc (DVD) of all kinds', falling under Chapter 8523 of the First Schedule to the Customs Tariff Act, 1975 at the specified rates. Such products may include DVD-R, DVD+R, DVD-RW and DVD+RW. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goods originating in or exported from Malaysia , Thailand and Vietnam into India are subjected to this provisional ADD. It is effective upto and inclusive of October 11, 2010 and payable in Indian Currency. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_048.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 48/2010-Cus, Dated: April 12, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Anti-dumping Duty imposed on Circular Weaving Machines </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</strong> on the recommendations of the Designated Authority's preliminary findings, the Central Government has decided to impose provisional anti-dumping duty on ‘circular weaving machines having six or more shuttles for weaving PP/HDPE fabrics of a width exceeding 30 cms', falling under Chapter 8446 of the First Schedule to the Customs Tariff Act, 1975 at the specified rates. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goods originating in or exported from People's Republic of China are subjected to this provisional ADD. It is effective upto and inclusive of October 11, 2010 and payable in Indian Currency. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_049.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 49/2010-Cus, Dated: April 12, 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 Front Axle Beam and Steering Knuckles </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</strong> on the recommendations of the Designated Authority's final findings, the Central Government has decided to impose definitive anti-dumping duty on ‘ Front Axle Beam and Steering Knuckles meant for heavy and medium commercial vehicles ', falling under Chapters 73269099, 73261910, 73261990, 87085000, or 87089900 of the First Schedule to the Customs Tariff Act, 1975 at the specified rates. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goods originating in or exported from People's Republic of China are subjected to this definitive ADD. It is effective from the date of imposition of provisional ADD (June 15, 2009) and payable in Indian Currency. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_050.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 50/2010-Cus, Dated: April 12, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Below Benchmark Gradings of ACRs to be Objectively Considered </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PRIOR</strong> to reporting period 2008-09, only adverse remarks in the ACRs had to be communicated to the officer concerned for representation, if any to be considered by the competent authority. The question of treating the grading in ACR which is below the benchmark for next promotion has been considered in DoPT and it has been decided that if an employee is to be considered for promotion in a future DPC and his ACRs prior to the period 2008-09 which would be reckonable for assessment of his fitness in such future DPCs contain final grading which are below the benchmark for his next promotion, before such ACRs are placed before the DPC, the concerned employee will be given a copy of the relevant ACR for his representation, if any, within 15 days of such communication. It may be noted that only below benchmark ACRs for the period relevant to promotion need be sent. There is no need to send below benchmark ACRs of other years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The UPSC has informed DoPT that the Commission has observed that while deciding such representations, the competent authorities sometimes do not take into account the views of Reporting/Reviewing Officers if they are still in service. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All Ministries/Departments are therefore requested to inform the competent authorities while forwarding such cases to them to decide on the representations against the remarks or for upgradation of the grading in the APAR that the decision on the representation may be taken objectively after taking into account the views of the concerned Reporting/Reviewing Officers if they are still in service and in case of upgradation of the final grading given in the APAR, specific reasons therefore may also be given in the order of the competent authority. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/oms/office_memorandum.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Office Memorandum No. 21011/1/2010-Estt.A, Dated April 13, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">“Looking back, looking forward” - Celebrating 30 years of Customs valuation </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</strong> the recent session of the WCO Technical Committee on Customs Valuation, a special occasion was celebrated on April 13, 2010 being the 30 th anniversary of the GATT/WTO Valuation Agreement. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On this special occasion the WCO Secretary General, Kunio Mikuriya, said, “Valuation is a key Customs activity and the Agreement is one of our core Customs instruments. I am very pleased that this event is so well attended and equally pleased that the Customs community is able to celebrate this auspicious occasion in the presence of a representative from the WTO, as valuation has been an intrinsic part of the long history of cooperation between the WCO and the WTO on global trade issues “. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some challenging ideas and concepts were discussed by the delegates invited to the event for taking stock of the Agreement and examine the challenges it continues to pose for many Customs administrations in the modern international trading environment. It was recognized that the commercial world has changed radically over the past 30 years and that difficulties arise in the application of the Agreement (which hasn't changed over that period). Topics included obstacles to implementation of the Agreement, the use of valuation databases, exchange of information, transfer pricing and the needs of the business sector. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be noted that Mr. P.R.V. Ramanan, who retired in the recent past as Member, CBEC and currently serving as a Special Counsel, was the first Chairperson of the Uruguay Round Technical Committee on Customs Valuation. He remained as the Chairperson from the 1 st to 3 rd sessions of the Uruguay Round Technical Committee on Customs Valuation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
CBEC Member (CX), Mr S Dutt Majumder, when contacted by TIOL in Brussels,
said that the WCO had invited six experts from all over the world and he
was the only one from the Developing Countries. He made a presentation on
'Valuation Database - Looking Back and Looking Forward'.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">‘Artha-sastra' a source of inspiration for GATT Definition of Value of imported merchandise</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VALUATION</strong> often causes considerable headaches for both Customs and traders. Article VII of GATT prescribes that the value of imported merchandise for Customs purposes should be based on the actual value of the imported merchandise. It further defines “actual value” as the price at which, at a time and place determined by the legislation of the country of importation, such or like merchandise is sold or offered for sale in the ordinary course of trade under fully competitive conditions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is interesting to note that the spirit of GATT Article VII is already found in the Indian classic treatise on government and economic policy, ‘Artha-sastra'. The treatise was written by Chanakya (or Kautilya) who was educated in Taxila and became the mentor/counsellor of Emperor Chandragupta Maurya (reign: 321 – 397 B.C.). From the relevant passage in the “Artha-sastra” we can see clearly how Customs valuation was conducted in India in ancient times: </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“The merchandise being placed near the flag of the toll-house, the merchants shall declare its quantity and price, cry out thrice, “Who will purchase this quantity of merchandise for this price?” and hand over the same to those who demand it for that price. When purchasers happen to bid for it, the enhanced amount of the price together with the toll on the merchandise shall be paid into the King's treasury. When, under the fear of having to pay a heavy toll, the quantity or the price of merchandise is lowered, the excess shall be taken by the King, or the merchants shall be made to pay eight times the toll.” </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Indian valuation practice described in the ‘Artha-sastra' written more than 2,000 years ago was based on a real actual value and could be regarded as a source of inspiration for the spirit of Article VII of GATT.</font></p>
<p align="center"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">[This interesting article appeared in the October 1992 edition of CCC News... and is carried in the WCO brochure created on the occasion of the 30 th anniversary of the GATT/WTO Valuation Agreement on 13 th April 2010] </font></em></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"> – Friday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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"><font color="#663399">Income Tax</font></strong> </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income tax - Sections 80I, 80HH - since expansion of existing plant in multiple stages does not lead to emergence of new industrial undertaking, assessee not entitled to tax sops meant for developing backward areas: ITAT Special Bench </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>question before the Special Bench was - Whether expansion of the existing plant would constitute setting up of Industrial Undertaking eligible for deduction under Sections 80I and 80HH. And its answer has gone in favour of the Revenue. </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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Adjudicating authority cannot go beyond allegations made in show cause notice – CENVAT credit cannot be denied on grounds not alleged in SCN – Appellants are providing BPO service and in relation to their business, Rent-a-Cab service and Air Travel Service are input services: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> basics of adjudication proceedings are on occasions lost sight of by the lower authorities in their enthusiasm in confirming demands or denying refunds to an assessee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case, a refund claim of CENVAT credit was filed u/r 5 of the CCR, 2004 by an assessee who are a BPO concern covered under Business Auxiliary Service. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong> </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Expression <em>“for any other reason”</em> in rule 16(2) of the CER, 2002 cannot be read ejusdem generis – Duty paid goods returned due to ‘logistic' reasons and received for ‘storage' - CENVAT credit availed of duty paid on original clearance - When goods are being cleared for second time, there is no requirement of paying back amount of CENVAT credit taken – payment on fresh Assessable value proper: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SOME</strong> provisions in the Central Excise law can put you into a trance. You are so mesmerized by the construction of some rules that every time you read it from top to bottom, a new meaning emerges and you are flummoxed. Ultimately, you prefer to remain a mute spectator and wish that the Courts interpret the rule for the simple reason that any reference to the law making authority would end up in confusion instead of a clarification. </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>