TIOL-DDT 1384 · 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=utf-8"> </head> <body bgcolor="#FFFFFF"> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font color="#663399" size="3">TIOL-DDT 1384 </font><br/>21.06.2010 <br/>Monday </strong></font></p> <p align="center"><strong><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"> Re-export of Imported Goods - Drawback Rules Amended</font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>AS</strong> per Rule 5 of the RE-EXPORT OF IMPORTED GOODS (DRAWBACK OF CUSTOMS DUTIES) RULES, 1995, </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>5. Manner and time of claiming drawback on goods exported other than by post.</strong> - (1) A claim for drawback under these rules shall be filed in the form at Annexure II within three months from the date on which an order permitting clearance and loading of goods for exportation under section 51 is made by proper officer of customs: </font></p> <blockquote><p align="justify"><strong><font color="#ff6633" face="Verdana, Arial, Helvetica, sans-serif" size="2">Provided that the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, if he is satisfied that the exporter was prevented by sufficient cause to file his claim within the aforesaid period of three months, allow the exporter to file his claim within a further period of three months. </font></strong></p></blockquote> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Now this proviso is amended to read as: </font></p> <blockquote><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(i) the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, may extend the aforesaid period of three months by a period of three months and that the Commissioner of Customs or Commissioner of Customs and Central Excise, as the case may be, may further extend the period by a period of six months ; </font></p><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(ii) the Assistant Commissioner of Customs or Deputy Commissioner of Customs or Commissioner of Customs or Commissioner of Customs and Central Excise, as the case may be, may, on an application and after making such enquiry as he thinks fit, grant extension or refuse to grant extension after recording in writing the reasons for such refusal; </font></p><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(iii) an application fee equivalent to 1% of the FOB value of exports or Rs. 1000/- whichever is less, shall be payable for applying for grant of extension by the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be and an application fee of 2% of the FOB value or Rs. 2000/- whichever is less, shall be payable for applying for grant of extension by the Commissioner of Customs or Commissioner of Customs and Central Excise, as the case may be. </font></p></blockquote> <p><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_048.htm" target="_blank"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2">NOTIFICATION NO. 48/2010 - Cus.,(N.T.), Dated: June 17, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2">Customs, Central Excise Duties and Service Tax Drawback Rules Amended </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>AS</strong> per Rule 6 of the CUSTOMS, CENTRAL EXCISE DUTIES AND SERVICE TAX DRAWBACK RULES, 1995, where amount or rate of drawback has not been determined, the exporter/manufacturer can apply within sixty days for fixation of drawback rates, provided that the Commissioner can further extend this period for another 30 days. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Now this period of sixty days has been extended to three months and the new proviso now reads as: </font></p> <blockquote><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(i) the Assistant Commissioner of Central Excise or Assistant Commissioner of Customs and Central Excise or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise, as the case may be, may extend the aforesaid period of three months by a period of three months and that the Commissioner of Central Excise or Commissioner of Customs and Central Excise, as the case may be, may further extend the period by a period of six months ; </font></p><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(ii) the Assistant Commissioner of Central Excise or Assistant Commissioner of Customs and Central Excise or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise or Commissioner of Central Excise or Commissioner of Customs and Central Excise, as the case may be, may, on an application and after making such enquiry as he thinks fit, grant extension or refuse to grant extension after recording in writing the reasons for such refusal; </font></p><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(iii) an application fee equivalent to 1% of the FOB value of exports or Rs. 1000/- whichever is less, shall be payable for applying for grant of extension by the Assistant Commissioner of Central Excise or Assistant Commissioner of Customs and Central Excise or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise, as the case may be and an application fee of 2% of the FOB value or Rs. 2000/- whichever is less, shall be payable for applying for grant of extension by the Commissioner of Central Excise or Commissioner of Customs and Central Excise, as the case may be. </font></p></blockquote> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Similarly Rule 7 and 15 are amended. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Now there is a mess up in this notification. As per Rule 6 (1)(a) of the CCEST Drawback Rules, the manufacturer has to apply to the Commissioner for drawback rate within sixty days and as per the proviso it can be extended by him by thirty days.</font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Now after the amendment, the manufacturer has to apply to the <strong>Commissioner</strong> within three months and the delay will be condoned by the <strong>Assistant Commissioner</strong>. How this is possible? In short, before this amendment, the rule and the proviso were in harmony as both contained Commissioner. Now it is disturbed. Rule says Commissioner and proviso AC.</font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">May be the assessee should apply to the Commissioner with a copy to the AC for condonation of delay and the poor Commissioner should ask his AC, “Sir, have you condoned the delay so that I can go ahead with the file?”. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Fee for extension?</strong> Now the Board wants to collect a fee for granting extension of time! Rs. 2000/- for application with Commissioner and Rs. 1000/- with Assistant Commissioner. Nothing wrong with collecting a small fee, but is it worth it when your duty collection is in the range of Lakhs of Crores. Will not the cost of collection be more than the fees? </font></p> <p><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_049.htm" target="_blank"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2">NOTIFICATION NO. 49/2010 - Cus.,(N.T.), Dated: June 17, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2">WTO Chief Pascal Lamy gets 2010 Global Economy Prize - response to Present Challenges requires a mix of economics, anthropology and international policy </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>WTO</strong> Director General Pascal Lamy received Sunday, 20 June, the 2010 Global Economy Prize from Germany's Kiel Institute. Also collecting awards were Liz Mohn, vice-chairwoman of the board at the Bertelsmann Foundation and Paul Krugman, Professor of Economics at Princeton University and a columnist for The New York Times and last year's Nobel Laureate. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">According to Lamy, the response to the present challenges requires a mix of economics, anthropology and international policy; three different approaches, derived from separate branches of knowledge that need to be considered together. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Economics:</strong> Rather than using gross, cross border flows, which give a distorted view of competitive reality, we should opt instead for an assessment of trade in terms of value added. The actual role of countries in international trade would be more clearly revealed by an assessment of the value added content of their exports. We would also get a better overview of the labour content of trade. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Anthropology:</strong> It may appear somewhat strange to turn to this branch of the humanities for a better analysis of globalization. But I think this is the science that can help us decode a number of political attitudes towards globalization, and especially the feeling of threat to identities that has grown in its wake. And it would also throw light on what is at stake in market exchanges, if for no other purpose than to recognize that they must not lead to the stifling of other forms of exchange based on giving, on generosity, of which we see so many examples in the cultural activities.</font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Political Science:</strong> the science of governance of things and people, which we know must, from now on, transcend the intellectual borders of the Westphalian order and master the interdependence of national structures. This is a significant challenge, to judge by the upheavals that have marked the building of the European Union, which nonetheless remains the laboratory in which this new form of governance is taking shape. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">We may be seeing the very first signs of this in the triangle that has recently emerged, bringing together the G 20 leadership, the international organizations' capacity to mobilize expertise and financial resources, and the legitimacy of the United Nations system. This triangle needs to be consolidated and each of its sides drawn if we are to lend credibility to the idea that unfettered globalization does not prevail over politics. Should the opposite sentiment prevail, that is, if economic developments were felt to overrun politics, this would give rise to reactions based on identity that would pose a threat to democracy.</font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font color="#006600">Jurispruden</font><font color="#ff6633" size="5">tiol</font><font color="#006600"> – Tuesday's cases</font></strong></font></strong></font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><img align="left" alt="Legal Corner Icon" border="0" height="84" hspace="5" src="https://taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" width="100"/><strong><font color="#663399">Central Excise</font></strong></font></p> <p align="justify"><strong><font color="#ff6633" face="Verdana, Arial, Helvetica, sans-serif" size="2">Central Excise - Rebate; No rebate on inputs as well as final products: High Court </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>THE</strong> petitioner manufactures man-made fabrics as well as polyester/ viscose blended yarn falling under Chapter 55 of the Schedule to the Central Excise Tariff Act, 1985. For the purposes of manufacturing the said final products, the petitioner employs duty paid inputs as well as other inputs. The duty paid inputs include polyester staple and viscose staple fibre as well as other packing materials and consumables. The products manufactured by the petitioner are cleared for home consumption as well as for exports . </font></p> <p align="justify"><strong><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif" size="2">Income Tax </font></strong></p> <p align="justify"><strong><font color="#ff6633" face="Verdana, Arial, Helvetica, sans-serif" size="2">Sec 194C - TDS provisions are not applicable to payments made by assessee to third parties for contract manufacturing of finished goods and packing material: ITAT</font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>THE</strong> issue is - Whether the provisions of section 194C are attracted in respect of payments made by the assessee to third parties for contract manufacture of finished products as well as packing material . </font></p> <p align="justify"><strong><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif" size="2">See our columns Tomorrow for the judgements </font></strong></p> <p align="justify"><font color="#ff6666" face="Verdana, Arial, Helvetica, sans-serif" size="2">Until Tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><font color="#ff6666" face="Verdana, Arial, Helvetica, sans-serif" size="2">Have a nice day. </font></p> <p align="justify"><font color="#ff6666" face="Verdana, Arial, Helvetica, sans-serif" size="2">Mail your comments to</font><font face="Verdana, Arial, Helvetica, sans-serif" size="2"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>