TIOL-DDT 1514 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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=iso-8859-1">
</head>
<body>
<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1514
</font><br>
24.12.2010 <br>
Friday </strong></font></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Scope of Notification Nos.49/2003-CE and 50/2003-CE both dated 10.06.2003 – CBEC Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> <em>Nos. 49/2003-CE and 50/2003-CE both dated 10.06.2003</em> provide full exemption from excise duties to goods cleared from industrial units in the states of Uttarakhand and Himachal Pradesh for a period of ten years from the date of commencement of commercial production. The exemption is available to new units set up or existing units which have undergone substantial expansion in terms of the said notifications and commence commercial production before the cut-off date, that is, on or before 31.3.2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has received representations seeking clarifications on the eligibility for exemption in the following circumstances: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Where a unit starts producing some new products after the cut-off date using plant and machinery installed up the said cut-off date and without any further addition to the plant and machinery. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Where the installed capacity in a particular unit is upgraded after the cut-off date, so as to increase the efficiency of the machinery by installing ancillary machines or replacement of some parts etc but in such a way that it does not lead to increase in capacity of production. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Where new dosage forms are manufactured after the cut-off date on the same line of production with the same machinery. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Where a unit manufacturers a new product by installing fresh plant, machinery or capital goods after the cut-off date. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board clarifies that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Under the said notifications, any new unit set up or an existing unit which has undergone substantial expansion that commences commercial production before the cut-off date is entitled to excise duty exemption in respect of excisable goods (other than those appearing in the negative list) manufactured and cleared for a period of ten yeas from the date of commencement of commercial production. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The provisions of these notifications do not place a bar or restriction on any addition/modification in the plant or machinery or on the production of new products by an eligible unit after the cut-off date and during the exemption period of ten years as per the notification.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Therefore, in all the above situations, the benefit of the excise duty exemption under the notifications would continue to be available to eligible industrial units. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ However the period of exemption would remain ten years and would not get extended on account of such modifications or additions under any circumstances. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/excircular939.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 939/29/09-CX, Dated: December 22, 2010</font></strong></a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import Duty on Natural Rubber reduced to 7.5 percent </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has reduced the Customs Duty on Natural Rubber from 20 percent to 7.5 percent up to an aggregate quantity of 40,000 metric tonnes for the rest of this financial year. The rate of duty will be 20 percent or Rs.20 per kg whichever is lower, from 1 st April, 2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though rubber is not as serious as onions, this is another effort on the part of the government to bring down the price of rubber which has crossed the Rs. 200 per kg mark in Kerala. Due to continuous rains in Kerala, not much of rubber could be tapped and so the price went up. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_128.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 128/2010-Cus., Dated: December 22, 2010</font></strong></a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner appointed for Adjudicating DRI case </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> has appointed Commissioner of Central Excise, Salem to exercise the powers and discharge the duties conferred or imposed on them Commissioner of Customs, Tuticorinfor adjudicating a particular DRI case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_101.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 101/2010 - Cus., (N.T.), Dated: December 22, 2010</font></strong></a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Use of International Debit cards by Indians Abroad – RBI report discontinued</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BANKS</strong> authorised to deal in foreign exchangeare required to submit a statement as on December 31, each year in case the aggregate forex utilization by the International Debit Card holders exceeds USD 100,000 in a calendar year. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has decided to discontinue the submission of the statement. Accordingly, all the banks authorised to deal in foreign exchange are advised to discontinue the submission of the statement from the calendar year 2010 onwards. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now you can spend money abroad without being reported to Big Brother – of course the money should be available in your bank account. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2010/rbi10cir029.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Circular No. 29/RBI., Dated: December 22, 2010</font></strong></a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Poor Legislators of Pakistan - many of them do not pay taxes</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACCORDING</strong> <strong>The News</strong> of Pakistan 61 percent of the law makers in the Senate, National Assembly and Provincial Assemblies do not pay any income-tax and of the remaining 39 percent, only 9 percent paid more than Rs. 100,000. Prime Minister Yusuf Raza Gilani and his 25 cabinet members do not pay income tax.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Passing through Airport Security - A harrowing experience in Canada</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INSULTING</strong> remarks, giggling, harassment and the whiff of pot smoke, are some of the complaints from passengers who passed through Canadian airports. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A former customs officer complained about a screener who giggled with one of her colleagues as she rifled through belongings. "<strong>Treating people with respect does not take much</strong>. I hope you are able to speak to this individual and enforce the importance of being courteous, professional and nice to people." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another complainant said, "He was rude, nasty and barking orders, when I brought to his attention that he never once used the word 'please', the response was: 'According to protocol I don't have to say please or be any way pleasant with you." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A passenger found the distinct aroma of marijuana on two officers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In his report on the Air India disaster, former Supreme Court justice John Major found that while security at Canadian airports had improved over the decades, "the human dimension of aviation security remains a concern. - The tedious but often stressful job can be frustrating for staff - involving lengthy delays in obtaining security clearances, poor pay and a perception of low prestige </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT's Cartoon with Dr. Gopalakrishnan, IAS (Rtd) </font></strong></p>
<p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1514.jpg" alt="Legal Corner Icon" width="250" height="298" hspace="5" border="0" align="centre"></p>
<p align="center"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">He is the only honest government servant! He has been given police protection against his superiors, subordinates and colleagues! </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"> – Monday's cases</font></strong></font></strong></font></p>
<p align="justify"><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">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Duty
with interest paid before Adjudication - Penalty to be 25 percent: High
Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> matter is covered against the revenue by judgment of Delhi High Court in<em>K.P. Pouches (P) Ltd. v. Union of India</em> -<strong> </strong><font size="1"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2008/2008-TIOL-240-HC-DEL-CX.htm" target="_blank">2008-TIOL-240-HC-DEL-CX</a></strong></font> which has been followed by the Tribunal, as also judgment of this Court in<em>CCE v. J.R. Fabrics (P) Ltd. </em>- <strong><font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2009/2009-TIOL-259-HC-P-H-CX.htm" target="_blank">2009-TIOL-259-HC-P&H-CX</a></font></strong>, holding that if payment is made before adjudication, the quantum of penalty has to be restricted to 25%.</font></p>
<p align="justify"><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">Sec 263 - Whether where AO has not examined an issue in details, it can be said that there is no application of mind, inviting invocation of revisional powers of CIT? - NO, says 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 where AO has not examined a matter in details, it can be said that there is no application of mind, inviting invocation of powers u/s 263. NO is the Tribunal's answer.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Deterrent Action - CBEC Member cannot enhance restrictions in second round of adjudication on Court's directions: High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HIGH</strong> Court directed CBEC Member to pass revised order after considering the assessee's representation. In the revised order, he enhanced the restrictions. There was no occasion for further or enhanced restrictions in the absence of any fresh material or circumstance. There is no discussion for imposing higher restrictions in the impugned order over and above those in order dated 23.8.2010. To this extent, contention on behalf of the petitioner has to succeed.</font></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/christmas_tiol_2010_v1.jpg" alt="Legal Corner Icon" width="500" height="550" hspace="5" border="0" align="center"></font></strong></p>
<p align="justify"></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 align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com</strong></a></font></p>
</body>
</html>