TIOL-DDT 1553 · the untouched capture
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<!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> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1553</font><br> 21.02.2011 <br> Monday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Government Bans Export of Milk Powders </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the Schedule 2 of ITC(HS) Classification of Export & Import Items, to prohibit the export of milk powders (including skimmed milk powder, whole milk powder, dairy whitener and infant milk foods), Casein and Casein products and hence these goods are not allowed to be exported till further orders. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not023.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 23(RE–2010)/2009-2014; Dated: February 18, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ban on Export of Onions - Removed </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> was only a few weeks ago that we were importing onions. Has the situation taken a u turn? Last week farmers blocked the Mumbai-Agra National Highway near Nashik demanding lifting of the ban on onion export. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has reacted and lifted the ban on exports of onions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now all varieties of onions in cut, sliced - or broken in powder form can be freely exported, while Bangalore Rose onions and Krishnapuram onions, can be exported through STE subject to Minimum Export Price(MEP) of USD 1400 per Metric Ton or as notified by DGFT from time-to-time. And other varieties of onions can be exported through STE subject to Minimum Export Price(MEP) of US$ 600 per Metric Ton or as notified by DGFT from time-to-time. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not024.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 24(RE–2010)/2009-2014; Dated: February 18, 2011. </font></strong></a></p> <p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GST - Former Union FM and Present Gujarat FM Lambasts Centre</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GUJARAT</strong> minister of state for finance Saurabh Patel said that it would be difficult for the UPA government to implement Goods and Service Tax without the support of non-Congress ruled states like Gujarat, Tamil Nadu, Uttar Pradesh … </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some other pearls from Patel: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The issue has not got resolved due to the UPA government's indecisiveness and its policy of ignoring financial interests of the states. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Gujarat government is opposed to the GST draft as it would increase prices of many items used daily by common persons by 7% to 8% besides making service sector more expensive. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Centre's announcement of reducing the threshold limit for small industries from Rs 1.50-cr to Rs 10-lakh would increase the tax load on the industrial units. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Central government announced the GST rates without discussing with the states. Centre only kept on talking about unanimous decision but never discussed with the states. It has not even listened to the suggestions of the empowered committee's chairman Asimdas Gupta. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Taxation structure shaped by the central government for the GST would prove helpful only to the big industries . </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Former Finance Minister Yashwant Sinha said, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Several states, including those ruled by the BJP, were opposed to introduction of the GST because of their own interests and not due to any partisan issue. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ It was unexpected and "unbecoming" of the Prime Minister to have made an "unparliamentarily" remark about the BJP stalling the tax and other economic reforms. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There were differences of opinion even among the BJP-ruled states on GST. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ States like MP are opposing the GST because it has genuine concerns. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ UP is not a BJP-ruled state..it is opposing. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ I am firmly of the view that the government of India should introduce GST first at the central level. At the central level you have central excise and you have the service tax. Now if you first merge the two, you have your own GST. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ You present an example to the states that this is how we do GST and then the states might follow. </font></p> </blockquote> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Division Bench of CESTAT seeks clarification from the Principal Bench </font></strong></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> came across this order passed by the Division Bench of the CESTAT, WZB, Mumbai - </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2011/2011-TIOL-240-CESTAT-MUM.htm" target="_blank"><strong><em>2011-TIOL-240-CESTAT-MUM</em></strong></a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">. It reads - </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“As per Office Order no. 216/2010 dated 31.12.10 this, bench was authorised to hear matters involving amount up to Rs. 50 lakhs. Today the ld. DR pointed out that in this matter, if duty and penalty are added the amount works out to Rs.82 lakhs.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. From the order, it is not clear that whether this bench can hear the matters involving duty up to Rs. 50 lakhs or penalty up to Rs.50 lakhs or both. In that event, <font color="#FF6633"><strong>the Assistant Registrar is directed to seek clarification from the Principal Bench</strong></font> and to list the matter accordingly. The matter is adjourned ….”</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule 4 of the CESTAT(Procedure) Rules, 1982 is reproduced below – </font></p> <blockquote> <p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>“RULE 4. Powers of Bench. - (1) A Bench shall hear and determine such appeals and applications made under the Acts as the President may by general or special order direct.” </strong></font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The President by his Order No. 216/2010 had ordered that from 03/01/2011 to 07/01/2011, Hon'ble Mr. Ashok Jindal, Member(Judicial) and Hon'ble Mr. P.R. Chandrasekharan, Member(Technical) will hear Excise Division Bench matters amount involving upto Rs. 50 lakhs. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any way this arrangement was to end on 07/01/2011 and so any clarification would have been infructuous, as they say. </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"> – Tuesday'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">Customs</font></strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Collector of Customs (Preventive), not a "proper officer" to issue show cause notice for re- assessment under Section 28: – Supreme Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is only the officers of customs, who are assigned the functions of assessment, which of course, would include re-assessment, working under the jurisdictional Collectorate within whose jurisdiction the bills of entry or baggage declarations had been filed and the consignments had been cleared for home consumption, will have the jurisdiction to issue notice under Section 28 of the Act.</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 10A - Whether expenses incurred on telecommunication charges attributable to delivery of computer software outside India but not actually incurred are also to be reduced from export turnover - YES, says ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Tribunal is - Whether expenses incurred on telecommunication charges which are attributable to the delivery of articles or things or computer software outside India but are not actually incurred for delivery of computer software outside India are also to be reduced from the export turnover and whether expenses incurred by the assessee in foreign soils for onsite development are rightly excluded by the AO from the export turnover. And the Tribunal's answer is YES. </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">Captive Consumption - NCCD payable when there was no specific exemption - Revenue neutrality is not a ground for not paying duty: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</strong> the relevant period NCCD was not specifically exempted for captive consumption; There is no such provision in the Central Excise Act that in respect of goods cleared for captive consumption when the CENVAT credit of duty paid on such goods is available, no duty is required to be paid in such cases. </font></p> <p 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 Time. </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> </body> </html>