TIOL-DDT 1373 · 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 1373</font><br>
04.06.2010 <br>
Friday</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Inter-changeability of pharmacopeia suffix USP/EP/BP/JP/IP with export product for fulfillment of Export Obligation - DGFT Clarifies</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PHARMEXCIL</strong> has represented that if an exporter has been issued an Advance Authorization for an export product suffixing one pharmacopoeia say USP and at the time of redemption of Advance Authorization, the exporter submits the export documents containing the export product suffixing another pharmacopoeia, say BP, the Zonal/Regional offices sometimes do not accept such exports towards fulfillment of export obligation.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been suggested that the pharmacopoeia standard other than mentioned in the licenses should be considered towards fulfillment of export obligation, i.e., pharmacopoeia, viz., USP/EP/BP/JP may be treated as interchangeable.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Norms Committee has considered the matter and noted that General Note No.4 for ‘Chemical and Allied Products' already existing in Hand Book of Procedure Vol. II reads as:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“In respect of drug items, export products have been described with/without suffix such as IP,BP,USP. While issuing licenses, suffix as such IP,BP,USP, depending upon the suffix used in the export order, may be added along with the description of the export product.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is thus clarified here that if an advance authorization is issued for the export product suffixing pharmacopeia say USP, the export documents containing the export product suffixing any other pharmacopoeia, viz., BP or EP or JP or IP may also be accepted towards fulfillment of export obligation against relevant Advance Authorization. Thus pharmacopeia IP, BP, EP, JP, or USP may be treated as interchangeable for the purpose of fulfillment of export obligation. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2009/dgft09cir035.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT POLICY CIRCULAR NO. 35/ 2009-14 Dated : June 3, 2010. </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - use e-filing to get faster and error-free service </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBDT has requested assessees to use the e-filing facility of the Income Tax department to get faster and error-free services. It is easy, secure and can be availed of from anywhere anytime. E-filing service is available on the website <a href="https://incometaxindiaefiling.gov.in/portal/index.jsp"><strong>https://incometaxindiaefiling.gov.in/portal/index.jsp </strong></a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While they are making elaborate arrangements for receiving the income tax returns by opening special counters in all major cities, the Board has advised taxpayers to file their returns early to avoid last minute rush.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The
America's Recovery Act</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/brooklyn.jpg" alt="Legal Corner Icon" width="376" height="250" hspace="5" border="0" align="left"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> picture shows American workers at dizzying heights on finishing touches to the Brooklyn Bridge in 1881. The American Recovery Act has put hundreds of thousands of men and women to work on the same kind of projects for the 21st Century -- once again fuelling America's economy by repairing, rejuvenating, improving and advancing much of same infrastructure that was first created back then. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In February 2009, President Obama signed the American Recovery and Reinvestment Act. In the three months prior to the Act, the nation lost 2.2 million jobs. Financial institutions were on the brink of collapse, and the “Great Recession” was being recognized for what it was - the most calamitous economic downturn since the Great Depression. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems in the last one year they have created or saved nearly two million jobs thanks to the Act's impact on hiring. Jobs have been created because of tens of thousands of projects now underway nationwide.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By design, the Act had three primary purposes: Rescue, Recovery and Reinvestment. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dollar to get back the respect?</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The RBI Seal</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> selection of the Bank's common seal to be used as the emblem of the Bank on currency notes, cheques and publications, was an issue that had to be taken up at an early stage of the Bank's formation. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The general ideas on the seal were as follows:</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/rbiseal.jpg" alt="Legal Corner Icon" width="100" height="98" hspace="5" border="0" align="left">1. the seal should emphasise the Governmental status of the Bank, but not too closely;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. it should have something Indian in the design;</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. it should be simple, artistic and heraldically correct; and</font>
</p>
</blockquote>
<div align="justify">
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. the design should be such that it could be used without substantial alteration for letter heading, etc.</font></p>
</blockquote>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For this purpose, various seals, medals and coins were examined. The East India Company Double Mohur, with the sketch of the Lion and Palm Tree, was found most suitable; however, it was decided to replace the lion by the tiger, the latter being regarded as the more characteristic animal of India! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sir James Taylor, the then Deputy Governor of the Bank, ordered preparation of fresh sketches by the Government of India Mint and the Security Printing Press at Nasik. His dissatisfaction was with the image of the tiger on the seal, presumably because it did not quite look like a tiger. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sir James could not find anyone to photograph a live tiger. So he did the next best thing, and ordered the photographing of the statue of the tiger on the entrance gate at the Belvedere in Calcutta. Sir James was clearly a man hard to please; he was not happy with those sketches either. “The tiger”, wrote Sir James, apparently inclined to be a bit ribald, “looks too like some species of dog, and I am afraid that a design of a dog under a tree would arouse derision among the irreverent”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A second effort produced better results with the tiger. But the palm tree went wrong. The fastidious Sir James wrote again, “The tiger is distinctly good, but the tree has spoiled it. The stem is too long and the branches too spidery, but I should have thought that by putting a firm line under the feet of the tiger and making the tree stronger and lower, we could get quite a good result from the design”. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Humour </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MANY</strong> of our staff, especially those from the Central Office who observe me closely, find that I am fastidious about small things such as margins, formats, line spacing etc. Many of them feel, perhaps rightly, that the Governor should be spending his time and effort on more weighty concerns such as, for example, the menu of the staff cafeteria. – RBI Governor Subba Rao </font></p>
<p align="center"><strong><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></strong></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">Central Excise - Deterrent action - imposition of restriction on facilities of payment of duty is more in nature of a penal action on a prima facie finding of "knowingly involved in committing offence": High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>“KNOWINGLY”</strong> is often used as synonymous with “<em>intention</em>". The said attribute as to the knowledge will arise only when the person is conscious of the consequences of his conduct. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court had no hesitation in accepting the plea of the petitioner that on the plain terms of the notification, in the absence of any material to attribute any motive to the petitioner, the penal restrictions consequent on the violations given under the notification will not be applicable to the petitioner's case. </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">Does Sec 80IA(5) create a legal fiction which renders redundant income from other sources and hence unabsorbed depreciation cannot be set-off: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> claimed deduction of section 80IA(5), on the income earned from windmill. AO disallowed the same on the same on the ground that wind mill is not separate. AO further took the view that in view of provision of section 80IA(5) the unabsorbed depreciation cannot be allowed to be setoff with any other business income and the same is required to be setoff with the income eligible for deduction u/s 80IA. CIT(A) relying on the decision of Mohan Breweries decided the issue in favour of the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Trading activity is not an exempted service - rule 6 of CCR, 2004 does not apply – there is no provision in Cenvat Credit Rules, 2004 to cover such situations - only obvious solution which is legally correct is to ensure that once in a quarter or once in a six months, quantum of input service tax credit attributed to trading activities according to standard accounting principles is deducted - Matter remanded for quantification: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> have a situation where an assessee would not be eligible to take input service tax credit on an output which is neither a service nor excisable goods and at the same time there is no provision to cover situations where an assessee is providing a taxable service and is undertaking another activity which is neither a service nor manufacture. In such a situation the only correct legal position appears to be that it is for the appellant to choose and segregate the quantum of input service attributable to trading activity and exclude the same from the records maintained for availment of credit. Naturally this cannot be done in advance since it may not be possible to forecast what would be the quantum of trading activity and other activity which is liable to service tax.</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>