TIOL-DDT 1437 · 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 1437 </font><br>
03.09.2010 <br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of sugar against Advance Authorizations issued from 17.2.2009 to 30.9.2009 – Board's Directions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> terms of Customs <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_022.htm" target="_blank"><strong><em>Notification No.22/2009-Cus. Dated 02.03.2009</em></strong></a> and DGFT's Notification No.86 (RE-2008/2004-2009) dated 17.2.2009 the actual user condition for import of raw sugar from 17.2.2009 to 30.9.2009 under the Advance Authorization scheme was relaxed and the said imports were allowed on ‘ton-to-ton' basis instead of ‘grain-to-grain' basis.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the Directorate of Sugar, Ministry of Consumer Affairs, Food and Public Distribution has informed the Board vide letter dated 17.8.2010 that they had reintroduced the requirement of obtaining export release orders w.e.f. 13.2.09 for exporters exporting sugar under Advance Authorization Scheme (AAS) on ‘ton to ton' basis. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Directorate of Sugar has expressed concerns that some unscrupulous persons who had obtained advance authorizations during the afore mentioned period, in order to take advantage of high international price vis-à-vis domestic prices, may export sugar without obtaining release orders from the Directorate on the pretext that such exports are being carried out against the raw sugar imported by them on ‘grain-to-grain' basis (i.e. with actual user condition). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Directorate of Sugar has requested that no export of sugar should be permitted against raw sugar imported under the Advance Authorization Scheme from 17.2.2009 to 30.9.2009 without the release order of the Directorate of Sugar. Further, if any sugar mill has exported sugar against such Advance Authorizations during the current sugar season, the names of such mills may be intimated to the Directorate of Sugar at an early date for taking appropriate action in the matter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board brings to the notice of the field formations the request of the Directorate of Sugar and take necessary action in the matter. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2010/cuscir10_032.htm" target="_blank">Circular No. 32/2010-Cus., dated August 31, 2010 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption for import of goods for Commonwealth Games 2010 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Government has granted exemption from DGFT import authorization, required in terms of para 2.7 of FTP, for import of certain specified categories of arms and ammunition, imported into India for the purpose of participation in the Common Wealth Games, 2010 by the Commonwealth Games Federation Members or Commonwealth Games Associations or participating athletes in relation to Games 2010, in terms of Ministry of Finance <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_013.htm" target="_blank"><em>Notification No. 13/2010-Customs dated 19th February, 2010</em></a></strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The import of the specified goods will be subject to the conditions specified under Ministry of Finance <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_013.htm" target="_blank"><em>Notification No. 13/2010-Customs dated 19th February, 2010</em></a></strong> and also the following conditions: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) In the case of arms, the same will be taken back by the participants/re-exported at the time of departure of the participants and in no case any participant would dispose off or leave his arms in India. Any case of arms which can not be re-exported will be brought to the notice of Ministry of Home Affairs (MHA) by the Organising Committee of Commonwealth Games 2010 (OC CWG) for further instructions. A proper account of import and re-export of all the arms imported by the CWG Federation Members, CWG Associations and participating athletes will be kept by the OC CWG for scrutiny by Customs and other concerned authorities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) In the case of ammunition, the following conditions will be scrupulously followed: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The ammunition will be properly accounted for by the OC CWG to the licensing authority in Delhi Policy namely, the Addl. CP (Licensing), New Delhi and utilization certificate in respect of the utilized ammunition will be issued at the end of games. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The unutilized ammunition will be deposited with the Sports Authority of India who will issue the same to the eligible sports persons as per the norms approved/ to be approved by the Ministry of Youth Affairs and Sports. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) The unutilized ammunition will not be disposed of to any ineligible person or disposed of otherwise without prior approval of MHA. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) In the case of both arms and ammunition proper security measures as per sub-para (iv) of the SOP dated 23rd February, 2009 namely, proper security measures by the OC CWG with the help of Delhi Police and other security agencies from the time of arrival in India to departure of weapons and ammunition will be followed. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not005.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 5/(RE-2010)/2009-2014, Dated: August 31, 2010 </font></strong></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> DRI Fired! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is
learnt that there was a big fire in the DRI Headquarters a couple of days
ago and their “source Room” has been completely destroyed.
DRI is a premier investigating agency with humongous mountains of information
with it. DRI is empowered to collect information in all kinds of unorthodox
measures and is in possession of quality information assiduously gathered
through intelligence networks, telephone tappings and internet interceptions.
And does all this simply blow up in smoke one day? While the DRI is adept
in cracking the toughest nuts in the white collar Crime syndicates, are they
so vulnerable that they watch in helpless frustration as their years of work
is simply blown up in some stupid fire? DRI must have conducted several dangerous
fire fighting operations, but finds its sepoys running away when their own
office is literally and really under fire? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are
our government offices safe? In fact fire has been breaking out with boring
regularity in Delhi's Revenue offices, always destroying vital records. One
TV Channel has reported that in the DRI fire, vital records including political
interceptions and records on Dawood had been destroyed almost suggesting
sabotage. A premier investigating agency like DRI may not be storaging all
its information only in its Delhi Headquarters or for that matter only in
India. So sabotage and Dawood may be too much of the result of fertile imagination
and a Dawood will also know that he cannot simply get away by destroying
some records in the DRI headquarters – but the fact remains that the office
is vulnerable to fire and important records have been lost – it may not be
sabotage; it could be short-circuit, but how well are we prepared to meet
the challenge of a simple fire that can innocently take place anywhere? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Who is to blame? There is no point in blaming anyone least of all the head of DRI - for there is no full time head of DRI now. The Additional Charge DRI DG also is a very busy Member of the CBEC struggling with sagging Service Tax Revenue, about which the FM is genuinely concerned. But as the DRI is burning, the Board and the FM cannot be fiddling! </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"> – Monday's cases</font></strong></font></strong></font></p>
<p align="justify"><font color="#663399" 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">Income Tax</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income tax - Sec 40A(2) - Disallowance cannot be made merely on ground that assessee's sister concern made supplies of improved quality of raw materials: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee purchased raw material namely ‘Gardresser-Litex' from M/s. Gargi Chemicals Pvt. Ltd. which is an associate concern within the meaning of section 40A(2)b). Upto 24.7.2004 the assessee paid Rs 21/- per litre for the above material. From 28.7.2004, the price was increased to Rs.25/- per litre. The Assessing Officer noticed that certain other concerns of Nova group who were also buying the material from M/s. Gargi continued to pay Rs.21/- per litre even after 28.7.2004. He therefore took the view that the price of Rs.25/- per litre paid by the assessee was unreasonable and excessive and called for the assessees explanation. </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">Higher duty paid on export goods calculated on CIF value - Revenue was not right in reducing rebate claim to extent of duty payable on FOB value – re-credit taken of rejected rebate amount - Prima facie applicability of LB decision in BDH Industries is in doubt - Stay granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant submitted that the cited decision of the Larger Bench is not applicable to the present case as the decision relied on the requirement of meeting the principles of unjust enrichment, whereas in the case of export no such requirement is necessary. It is further submitted that in the case of Sterlite Industries (I) Ltd. vs. Commissioner of Central Excise, Tirunelveli (<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2009/2009-TIOL-99-CESTAT-MAD.htm">2009-TIOL-99-CESTAT-MAD</a>) it has been held that the exporter is entitled to rebate of entire duty of excise paid by it on the clearance of goods for export and this case was decided after the cited decision of the Larger Bench was available. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs/Excise/Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Clandestine removal and duty liability – Failure to provide copies of relied upon documents discloses lack of bonafide on part of Department - Demand cannot be sustained without furnishing copies of relied upon documents and allowing assessee to rebut the same: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> is an appeal filed by the CCE, Ludhiana against the order passed by the Commissioner (Appeals) wherein the appellate authority dismissed the appeal filed by the Revenue against the non-imposition of penalty by the adjudicating authority and allowed the appeal of the respondent assessee against confirmation of duty demand. The case of the department is that the respondent assessee had clandestinely manufactured and removed the goods without payment of any Central Excise duty. </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><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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