TIOL-DDT 1511 · 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 1511 </font><br>
21.12.2010 <br>
Tuesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Definitive Anti-Dumping Duty imposed on Synchronous Digital Hierarchy Transmission Equipment - Another Resurrection!!! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has now imposed definitive anti-dumping duty on imports of Synchronous Digital Hierarchy transmission equipment, originated in or exported, from China PR and Israelfalling under sub-heading 851762 of the First Schedule to the Customs Tariff Act, 1975. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anti-dumping duty imposed shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of imposition of the provisional anti-dumping duty, i.e. December 8, 2009 and the anti-dumping duty imposed shall be payable in Indian currency. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The provisional duty expired on June 7, 2010 and now we have one more case of resurrection. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_125.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO.125/2010-CUSTOMS, Dated: December 16, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Director STPI is not any more DC of IT/ITES SEZs hereafter </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government rescinded all previous notifications appointing Director, Software Technology Parks of India as Development Commissioner of Information Technology and Information Technology Enabled Services Special Economic Zones. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=259&filename=sez/sez_notifications/sez_office_memorandum.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SEZ Notification, Dated: December 20, 2010</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Transatlantic Economic Council - EU and US launch joint website against counterfeiting and piracy </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACCORDING</strong> to OECD studies international trade in counterfeit and pirated goods is estimated to be around $250 billion a year. With a view to encourage Small and Medium Enterprises (SMEs) to break into foreign markets and avoid risks in terms of the violation of their intellectual property rights (IPR), the US and Europe are joining forces. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the occasion of the Transatlantic Economic Council in Washington on December 17, 2010, a new website was launched, the TransAtlantic IPR Portal, offering guidance to enterprises in the EU and the US that wish to successfully do business in other countries. The portal is part of the mission to strengthen cooperation between the EU and the USA. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goal of the joint website is to help EU and US companies fully utilize all the intellectual property rights (IPR) related resources and tools developed on both sides of the Atlantic. It will enable SMEs to protect their intangible assets - brands, trademarks and patents – before entering foreign markets and to take preventive action. It will offer advice, 'country toolkits' on IPR protection in more than 20 markets around the world and tailor-made guides for various sectors including textiles, leather, footwear, and furniture. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Asia, an initiative to tackle intellectual property related issues was made by ASEAN by forming an association called the ASEAN Intellectual Property Association on December 1, 1996. This association was granted an official NGO status by the ASEAN secretariat in 1998. The primary objectives of ASEANIPA is to foster ties of mutual friendship, cooperation and understanding among those who are concerned with intellectual property in the ASEAN countries and, through such ties, to promote the development and protection of intellectual property in ASEAN member countries. India </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While SAARC of which India is a member does not have any such mechanism at the regional level, in the year 2007 our country took a step in the right direction to fight intellectual property piracy menace by enacting ‘The Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007' by making Indian Customs as the nodal agency to enforce these Rules, though the statutory power to enact these Rules by issuing a Customs Notification by the Government is doubtful. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be noted that CBEC also took an initiative in setting up a voluntary body called 'Centre for Customs, VAT & Trade Policy Research Society'. For more on this see our news capsule <font color="#663399"><strong>'Break Free' is the Slogan; NGO on Customs & Trade set up'</strong></font>. Also see our The CobWeb column <strong><font color="#663399">‘Let's get obsessed with IPR to keep India competitive in years ahead' on India's </font></strong>challenges in the world of IPR. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Draft Circulars of CBEC which are yet to gain statutory status </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE</strong> consultative mechanism for bringing into force rules/regulations is the right approach and an important principle to be followed in enactment of delegated legislations by the executive authorities, inordinate time gap in notifying the statutory rules/regulations/notifications/circulars after initial notification of their drafts for public consultation only raises suspicions about the seriousness of such consultative exercises. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier, there were certain instances where the drafts took the shape of a statute after long intervals of time lapse between the initial draft and the final notification of the rule/regulation/circular which only goes to show that they were notified in an abrupt manner after waking up from a deep slumber. In the recent past CBEC had notified certain drafts as detailed below which are yet to get official status in the statute book: </font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Date of uploading for comments/suggestions </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of topic </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10-09-2010</font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://cbec.gov.in/draft-circ/pca-for-imports-cs.htm" target="_blank"><strong>Comments/Suggestions invited on draft Scheme of ‘On Site Post Clearance Audit (PCA)' in Customs </strong></a></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13-09-2010 </font></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://cbec.gov.in/draft-circ/cxcsst-rcvry-man.pdf" target="_blank">Draft arrear recovery manual for Central Excise, Customs and Service Tax </a></font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">05-08-2010 </font></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://cbec.gov.in/draft-circ/dft-pt-taxtn-rules.htm" target="_blank">Draft Point of Taxation (for Services Provided or Received in India) Rules, 2010 </a></font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10-02-2010 </font></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://cbec.gov.in/draft-circ/ipr-enfrmt-rules.htm" target="_blank"> Draft Circular for implementation Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 by March 02, 2010 </a></font></strong></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We only hope that the consultative process is not a sham but taken seriously by CBEC and all the objections/suggestions to the drafts are considered in the right earnest before notifying the final rules/regulations/circulars. To ensure transparency and assure that the exercise is not futile it would be prudent on the part of the authority to append a list of persons/organizations who sent in their suggestions or a summary of those comments when the draft is finally notified as a part of the statute. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT Cartooning with Dr. Gopalakrishnan, Rtd IAS </font></strong></p>
<p align="center"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1511.jpg" alt="Legal Corner Icon" width="250" height="305" hspace="5" border="0" align="centre"></font></strong></p>
<p align="center"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Don't worry! I take bribes like all the other government servants! Otherwise, the Government will suspend me for conduct unbecoming of a government servant! </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"> – Wednesday'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">Income Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
tax - Can compensation received in lieu of future profits from abandoned
project be taxed as business profits particularly when expenses attributable
to the project were allowed as revenue expenditure? - YES, says Delhi HC</font></strong></p>
<p align="justify"><font size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif">THE
</font></strong><font face="Verdana, Arial, Helvetica, sans-serif">major
issue before the High Court is -</font> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether
compensation received by the assessee in lieu of future profits from
the abandoned project is taxable as business profits particularly when
the expenses attributable to the abandoned project were allowed as revenue
expenses. YES is the HC's answer. The other issues are - Whether
once revenue proves that a particular receipt is income, the burden to
prove that such receipt is not income shifts on the assessee and Whether
the restrictive covenant having life span of three years and the same
can be withdrawn at any time during this period after the approval of
the other party, changes the colour of the receipt from revenue to capital.</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"><font size="2"><b style='mso-bidi-font-weight:normal'><font color="#FF6633" face="Verdana, Arial, Helvetica, sans-serif">Service
Tax - deputation of trained software personnel - Manpower supply or Software
development - just because the assessee is registered under a service
for a latter period, it cannot be presumed that they were providing the
same service for the previous period - Pre-deposit ordered - CESTAT</font><font face="Verdana, Arial, Helvetica, sans-serif"><span
style='color:red'>
<o:p></o:p>
</span></font></b></font></p>
<p align="justify" style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> is
an application filed in an appeal filed against the order passed by the Commissioner
of Central Excise, Bangalore on 29/1/2010. By the said order, the Commissioner
has confirmed a demand of <span class="SpellE">Rs.66<span
class="GramE">,26,506</span></span>/- being the service tax and has appropriated
an amount of <span class="SpellE">Rs.32,16,436</span>/- already paid by the
appellants.</font></p>
<p align="justify" style='text-align:justify'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<o:p></o:p>
</font><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central
Excise</font></strong></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Allegation
of forged signature is a serious allegation which is to be dealt with severely
and expert opinion should have been obtained to corroborate the same but
no efforts have been made and merely penalties were imposed on the appellants – Drugs
and Cosmetics Act, 1940 does not deal with export of drugs - Order of confiscation
and imposition of penalties set aside: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> facts
of the case are that the exporter filed shipping bills through their CHA
for export of the goods viz. ZOLEDRONATE. The Customs department insisted
that to export the said goods the exporter required a NO Objection Certificate
issued by the Asst. Drug Controller of India permitting such clearance.
Consequently, the goods were brought to the export shed. On scrutiny of
the documents of export submitted by the appellants, it was observed that
the signature of the Asst. Drug Controller on the No Objection Certificate
was forged. Accordingly, the goods were seized and confiscated. Redemption
fine was imposed on the exporter and penalties were imposed on the exporter,
CHA and other individuals by the Commissioner of Customs (Export), Mumbai. </font></p>
<p align="justify" style='text-align:justify'><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day</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"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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