TIOL-DDT 1422 · 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 1422</font><br>
12.08.2010 <br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Procedure regarding removal of goods to bonded warehouse under Rule 46(13) of SEZ Rules – DOC Clarifies</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Rule 46(13) of SEZ Rules, the Authorised Officer may permit a Unit to transfer goods to an EOU or EHTP or STP or BTP or a bonded warehouse, without payment of duty subject to certain conditions.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems representations have been received seeking clarification on procedure for removal of goods to Bonded Warehouse.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department of Commerce after consultation with Directorate General of Export Promotion, Department of Revenue has prescribed the following procedure:</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Unit shall file yellow Bill of Entry(YBE) to SEZ Customs with copy of invoice, packing list etc. besides Space Utilisation/Availability Certificate from the Customs Officer - in -charge of the bonded warehouse.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The goods will move from SEZ to the bonded warehouse on the strength of fifth copy of YBE containing the SEZ Customs report regarding verification marks, numbers etc.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Customs officer in charge of the bonded warehouse will retain the fifth copy of the YBE for his record and issue re-warehousing certificate for the goods received.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The SEZ unit shall submit the said re-warehousing certificate immediately to SEZ Customs.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ If the SEZ unit fails to submit the re-warehousing certificate within 45 days from the date of clearance of the goods from the Zone, the SEZ Customs shall initiate-appropriate action to realize duty and interest on the goods in question. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=260&filename=sez/sez_instructions/2006/sez09ins063.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Department of Commerce Instruction No. 63 Dated: August 10, 2010 </font></strong></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Resurrection – GST is not Dead! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXACTLY</strong> a week ago in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11228" target="_blank">DDT 1417</a></strong>, we carried a comment, “<strong>GST is Dead??????</strong>” We are happy to report that it is not really dead and in a quick change of events, the Union Finance Minister Pranab Da had a meeting with the empowered committee chairman Asim Dasgupta and sorted out the problems raised by the State Governments. Now the GST bandwagon is back on rolls and the Union Finance Minister is understood to have sacrificed his veto power.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Our <font color="#FF6633">CobWeb
is 200</font> – Present at Creation</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TODAY</strong> is
a great Day for us in <strong>TIOL</strong> – our The CobWeb is coming out
with its 200 th edition, but that's not what elates us – This 200 th edition
coincides with our reporting on the GST being back on rails. Last week when
the whole country had given up on GST and the Press widely reported that
GST is stuck, it was only our CobWeb which suggested that “<font color="#FF6633">GST-boat
is not fully rocked; A few quick steps may bring it back on rail!</font>”.
And the North Block listened – a crestfallen army polished its armoury
and came out with an amicable solution. GST is back on rails. We are proud
to be part of it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see our <strong><a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11255" target="_blank">CobWeb</a></strong> today for more details.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST – AP wants Compensation on Food grains </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANDHRA</strong> Pradesh has sought permanent compensation on the basis of quantum of food grains production, outside the purview of the new GST, as in the case of wheat-producing Haryana and Punjab. “We conveyed that the purchase tax on paddy or wheat should be compensated permanently. We wanted that to be extended to us and all the sates that produces food-grains, like Haryana and Punjab,” , said a State Minister. He added that the Empowered committee is to meet Union finance minister Pranab Mukherjee on August 18 for further deliberations on the GST. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">UP Trade Tax – Voltage Stabilizers – whether electrical or electronic goods - An electrical device can be an electronic device, but an electronic device cannot be an electrical device - Supreme Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Supreme Court yesterday held, “an automatic voltage stabilizer involves the operation of a number of electronic components. A voltage stabilizer might have many components some of which use electricity. This cannot be the sole reason for classifying it as an electrical good. An electrical device can be an electronic device, but an electronic device cannot be an electrical device. The Tribunal which is the last fact finding authority after taking into consideration the components of voltage stabilizer, the purpose for which it is used and the principles on which it works has come to the conclusion that the voltage stabilizer is electronic goods, for the purpose of taxation under U.P. Trade Tax Act.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court is in agreement with the reasoning and conclusion reached by the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In tune with the <strong>TIOL</strong> tradition, we bring you this 'yesterday's judgement today' </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2010/2010-TIOL-61-SC-CT.htm" target="_blank">BREAKING NEWS</a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise inspector files torture case against wife - She gets Anticipatory Bail</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Central Excise inspector working in Siliguri had filed a police complaint alleging that his wife and in-laws have been physically and mentally torturing him since February 2008 and that they had forcibly taken money from him after the marriage. He said that the torment had driven him to try to commit suicide in June 2008 but he was saved by a neighbour. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Joint Commissioner, central excise, also filed a complaint with the Human Rights Commission over the issue. The commission directed the Darjeeling SP to probe the matter. When the SP did not act, he moved Calcutta high court, alleging police inaction. The court directed him to move the Darjeeling chief judicial magistrate. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Darjeeling Court then directed police to investigate the case and, if necessary, arrest the wife. She then filed for anticipatory bail. The High Court granted the accused anticipatory bail considering that the petitioner was a woman. </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"> – Friday'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">CENVAT Credit – exempted and dutiable goods – Once Credit is reversed, it is deemed that Credit is not taken – Revenue Appeal Dismissed – High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TRIBUNAL</strong> has considered all the relevant material on record and has afforded reasonable opportunity and by placing reliance on the notification and also the judgment of the Apex Court in the case of Chandrapur Magnet Wires Pvt. Ltd., Vs. CCE, Nagpur <font size="1"><strong>(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2002/2002-TIOL-41-SC-CX.htm" target="_blank">2002-TIOL-41-SC-CX</a>)</strong></font> and applying the ratio of the said case to the facts in hand, has reversed the order passed by the assessing authority and held that assessee is not liable to pay 8% of the price of the exempted goods and consequently, allowed the appeal. </font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Retrospective amendment to Sec 234B - Whether interest to be charged on assessed income or declared income in case of failure to deposit advance tax - assessed income, says High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Bench is - Whether interest under section 234-B is to be chargeable with reference to the assessed income or declared income, particularly in the light of retrospective amendment to section 234B. And the answer is assessed income. </font></p>
<p><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">Import of Cut and Polished diamonds – declaration in Bill of entry showing consignment as of 19 packages but on examination only 18 packets were found – mis-declaration is not going to give any benefit to importer - moreover, it is a mistake admitted by supplier - no evidence that packet has been left with knowledge of importer – Penalty and confiscation set aside: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant had imported a consignment of assorted Cut and Polished diamonds and sought clearance on the same under Bill of Entry through their CHA. In the Bill of Entry the weight of the said consignment was declared as 1946.550 CTS and the assessable value of the said consignment as Rs.2,56,94,307/-. A supporting invoice, issued by the supplier, was also submitted by the importer wherein it was mentioned that there were totally 19 packets of cut and polished diamonds. The said consignment was examined by the customs officials. On examination, only 18 packets were found inside the box as against the 19 declared in the supplier's supporting invoice. One packet, having declared weight of 96.38 CTS, value of Rs.14,75,819/- was found short. The goods were confiscated and redemption fine of Rs.2,50,000/- was imposed along with a penalty of Rs.50,000/- under section 112(a) of the Customs Act. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day </font></p>
<p><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"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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