TIOL-DDT 1427 · 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 1427 </font><br>
19.08.2010 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Valuation of Goods cleared in DTA by EOUs – CBEC Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VALUATION</strong> <font color="#FF6633">of goods cleared from an EOU for sale in DTA, when actual sale transaction does not take place at the time of clearance but on a subsequent date</font>. In such cases 100% of the goods are cleared from the EOU to depot from where the sale is effected through consignment agents. CBEC has earlier issued <em>Circular No 268/85-CX.8 dated 29.09.1994</em>, clarifying that valuation of goods in such situations will have to be done in accordance with the Rule 8 of the Customs Valuation Rule (Determination of Price of Imported Goods), 1988 as it existed then. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has re-examined the issue and realised that in terms of the Customs Valuation Rules (Determination of Price of Imported Goods), 2007, the value will have to be determined by sequential application of Rules 3 to 9. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board also relies on the following cases: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Endress Hauser Flowtec (I) Pvt Ltd. - </em></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2009/2009-TIOL-123-CESTAT-MUM.htm" target="_blank">2009-TIOL-123-CESTAT-MUM</a></strong></font> </p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Morarjee
Brembana Ltd. </font></em><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2003/2003-TIOL-309-CESTAT-MUM.htm" target="_blank">2003-TIOL-309-CESTAT-MUM</a></strong></font> </p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Uniworth
Textile Ltd. </font></em><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2009/2009-TIOL-648-CESTAT-DEL.htm" target="_blank">2009-TIOL-648-CESTAT-DEL</a></strong></font> </p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the position prevailing under Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, and the decisions of tribunal on the subject earlier Board Circular No 268/85- CX.8 dated 29.09.1994 on the subject is withdrawn. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the field formations to follow the provisions of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 in such situations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is the big difference? They are anyway required to follow the 2007 Valuation Rules and not the 1988 Rules. Only Board forgot to withdraw its earlier circular. And now the Board doesn't say which exact Rule is to applied in sequential application of Rules 3 to 9. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The question is – goods are cleared from the EOU to the depot and sold from there. What is the value? Either you have the answer or you don't. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The unwanted apostrophe - a little better English please</strong>. The Subject of the Board Circular reads as “Valuation of Goods cleared in DTA by <font color="#FF6633"><strong>EOU's</strong></font>.” Why an apostrophe there? It looks like a signboard by an illiterate shopkeeper – CD's for sale! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/excircular933.htm" target="_blank">CBEC Circular No. 933/23/2010-CX., Dated: August 16, 2010</a></strong> </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST
- We will be able to honour commitment we have made to nation – FM</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADDRESSING</strong> the Empowered Committee of State Finance Ministers, yesterday, the Finance Minister said, “some State Finance Ministers expressed reservations on the introduction of GST by April 2011 and advised a further postponement. Here, I will like to stress the urgency of bringing to culmination an effort which started four years ago. As I had mentioned in my last meeting with you, we must make all efforts to meet the timelines we have set for ourselves. It must be appreciated that the Constitutional Amendment is only an enabling provision. It does not prohibit us from continuing our dialogue on rates, exemptions and other issues related to GST. Both the activities can go on parallely. The wisdom lies in moving ahead with the Constitutional Amendment without any further delay as a preparatory step for the introduction of GST. I have great faith in the collective wisdom of the Empowered Committee and am confident that as we move parallely on Constitutional Amendment, development of IT infrastructure and finalization of architecture of rates, exemptions and thresholds, we will be able to honour the commitment we have made to the nation.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Also
see our <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11289">'The
Cob(Web) Column'</a></strong> today</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Poor Rich Political parties </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CONGRESS</strong> is the richest party in India followed by BJP and BSP. The major political parties of India had a collective income of a thousand Crores last year. In this corporate wealth, comrades don't lag behind – the CPM had an income of 63 Crores compared to NCP's 40 Crores. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ As on 31st March 2009, INC has shown the maximum total assets (612 crores), followed by BSP (286 crores) and BJP (261 crores). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Amongst the other parties, RJD has shown total assets of 3 crores, CPI (7 crores), NCP (32 crores), SP (178 crores) and CPM (185 crores). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The maximum growth rate in total assets over the period AY 2002-03 to AY 2009-10 has been shown by BSP (59%) followed by NCP( 51%) and SP( 44%). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Amongst the other parties, the growth rate in assets over the period AY 2002-03 to AY 2009-10 for CPI has been 4%, BJP(18%), CPM(20%), RJD (35%) and INC (42%) </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This information was collected by the Association for Democratic Reforms (ADR) through the RTI route. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And please remember – all the above figures are white – black not included! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Vacancy Position in CBEC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> vacancy position for various cadres in the CBEC as on 30.06.2010 are as follows.</font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Post</font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sanctioned strength </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Working strength </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Posts vacant </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">% vacancy </font></strong></p></td>
</tr>
<tr>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CC </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">47 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">39 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17 </font></p></td>
</tr>
<tr>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commr </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">295 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">266 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 </font></p></td>
</tr>
<tr>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ADC/JC </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">593 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">532 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">61 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11 </font></p></td>
</tr>
<tr>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC/AC </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1744 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1408 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">336 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19 </font></p></td>
</tr>
<tr>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Total </font></strong></p></td>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2679 </font></strong></p></td>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2245 </font></strong></p></td>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">434 </font></strong></p></td>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16 </font></strong></p></td>
</tr>
</table>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The position as on 1.11.2009</font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Post</font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sanctioned strength </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Working strength </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Posts vacant </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">% vacancy </font></strong></p></td>
</tr>
<tr>
<td><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CC </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">47 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">30 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">36 </font></p></td>
</tr>
<tr>
<td><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commr </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">295 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">268 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
</tr>
<tr>
<td><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ADC/JC </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">593 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">535 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">58 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 </font></p></td>
</tr>
<tr>
<td><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DC/AC </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1754 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1315 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">427 </font></p></td>
<td><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24 </font></p></td>
</tr>
<tr>
<td><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Total </font></strong></p></td>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2689 </font></strong></p></td>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2148 </font></strong></p></td>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">529 </font></strong></p></td>
<td><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20 </font></strong></p></td>
</tr>
</table>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">* figures may not tally due to some reasons. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There are nearly 500 posts lying vacant at the Group A level. Why can't the Board fill up these posts and make the promotion crazy officers a little happy. There are posts and there are officers, ready, willing and eager for those posts – God and Board willing! </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Source: <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rti_1.htm">CBEC F.No. C-50/RTI/113/2009-Ad.II Dated: December 10, 2009</a> and <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rti_2.htm">F.No.C-50/RTI/114/2009-Ad.II Dated : August 6, 2010 </a></font></strong></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><strong><font color="#663399" 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">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Fire accident in factory in 1998 but C.Ex authorities not informed – remission claimed after receipt of claims from Insurance company – SCN issued in year 2002 denying claim and invoking rules 57A/57Q of CER, 1944 – when rules no longer existed in statute book in year 2002, SCN not sustainable – Prima facie case – Stay granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the month of June, 1998 a fire accident took place in the factory of the applicant. In this unfortunate incident, finished goods involving duty of approximately Rs.2 lakhs and capital goods involving duty of approximately Rs.4 lakhs were destroyed. At the time of fire, the applicant informed the Police, Fire Department, Insurance Company and Municipal Corporation but failed to inform the Central Excise department. Later on they filed a remission claim of duty of the goods which destroyed in fire. </font></p>
<p><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">Income tax - Sections 10A, 10B benefits cannot be denied when same have been allowed in previous AYs - Approval of SPTI Director sufficient to claim benefits: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Tribunal is - Whether Revenue can deny Sec 10B benefits particularly when benefits have been allowed in the previous AYs and Whether Section 10B requires that for the purpose of establishing a STP unit, approval is required to be sought from the Board appointed by the central government u/s 14 of the Industries (Development & Regulation) Act, 1951. And the verdict has gone against the Revenue. </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">Short
Landing – Penalty – LCL or FCL – Question of fact – cannot be re – appreciated
in writ: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> submission advanced by the Counsel that it is a case of short shipping and not short landing holds no water in view of the fact that the letter sought to be relied upon to support this contention is nothing but an evidence created to prepare defence. This defence is nothing but an after thought. It was rightly rejected by the authorities below. </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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