TIOL-DDT 1656 · 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 1656 </font><br> 21.07.2011 <br> Thursday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Saccharin - Government Amends Non-Existing Notification - Resurrection Redefined! </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SACCHARIN:</strong> A white crystalline powder, having a taste about 500 times sweeter than cane sugar, used as a calorie-free sweetener. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Saccharin's sweetness was accidentally discovered by Ira Remsen, a professor at Johns Hopkins University, and Constantin Fahlberg, a research fellow working in Remsen's lab. In 1879, while working with coal tar derivatives, Remsen discovered saccharin's sweetness at dinner. Remsen and Fahlberg jointly published their discovery in 1880. However, in 1884, Fahlberg went on to patent and mass-produce saccharin without ever mentioning Remsen. Fahlberg grew wealthy while Remsen remained sour. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A century and more down the line, it appears the Chinese are bent on stealing the sweetness from Indian saccharin industry by dumping the product in India. Our government would have nothing of it and so anti dumping duty was imposed provisionally on saccharin originating in or exported from China. This provisionally imposed duty by Notification No. 54/2006-Cus dated 06.06.2006 was to be effective till 5th December 2006. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nobody bothered when the notification ceased to have effect from 06.12.2006. After a cool three months, definitive anti dumping duty was imposed by Notification No. 41/2007 dated 19.03.2007, of course retrospectively with effect from 06.06.2006. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After about three years, the Government superseded Notification No. 41/2007 and re-imposed the anti dumping duty by Notification No. 136/2009 dated 09.12.2009 and this notification clearly stated that the notification would remain valid till 05.06.2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the position is: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Notification No. 41/2007 which could have been valid till 05.06.2011, was superseded on 09.12.2009. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Notification No. 136/2009 which superseded Notification No. 41/2007 was valid till 05.06.2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There is no valid notification for anti dumping duty on saccharin with effect from 06.06.2011. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government wanted to extend this anti dumping duty on saccharin for another year till 05.06.2012. <strong>And for that they amended Notification No. 41/2007 which does not exist</strong>! They should have amended the current Notification No. 136/2009, which also expired on 05.06.2011, but since resurrection is a favourite activity of the Board, notwithstanding the recent circular, that could have been a better option! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anyway the present position is that the Government thinks that it has extended the Anti Dumping Duty on saccharin from China till 05.06.2012, but the fact is, <strong>as of now there is no anti dumping duty on saccharin</strong>! The Notification factory in the Board needs urgent repairs. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_062.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 62/2011-Cus, Dated: July 19, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Duty on Bio Diesels Increased from 2.5 to 10 percent </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Sl. No. 585 of Notification No. 21/2002-Cus, ‘Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels' attract an effective rate of 2.5% Customs Duty. Now this is increased to 10%. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_063.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 63/2011-Cus, Dated: July 19, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Duty Exemption on Machinery for Long Range Surface to Air Missile </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has exempted Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence, from Customs Duty, subject to certain conditions. This exemption is valid till 25 th November 2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A similar exemption is given from excise duty also. </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=23&filename=notification/custom/2011/ctariff11_064.htm" target="_blank">Notification No. 64/2011-Cus, Dated: July 19, 2011</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_34.htm" target="_blank">Notification No. 34/2011-CX, Dated: July 19, 2011</a> </font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Export of 10 lakh MT Non basmati Rice Allowed </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has allowed export of Ten lakh MT of non-Basmati rice, subject to the conditions:- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) Export shall be made from privately held stocks. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) Applications for allotment must be accompanied with irrevocable and confirmed letter of credit. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) An applicant must submit a performance bank guarantee, along with the application for a value equivalent to a value of 10% of applied quantity. In case of non-completion of exports, within the stipulated time frame, this bank guarantee is liable to be confiscated. A flexibility of + or – 5% in performance is allowed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) An application can be for a maximum of 12,500 MT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) This export will be subject to an MEP of US$400 per MT. </font></p> </blockquote> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not060.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 60/(RE-2010)/2009-2014., Dated: July 19, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Validity of extension for export of 6,50,000 tons of wheat products upto 31.03.2012 </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> No. 116 (RE-2008)/2004-09 dated 03.07.2009 has permitted export of 6,50,000 tones of wheat products up to 31.3.2010, which was earlier extended up to 31.3.2011 by Notification No. 41/2009-14 dated 18.05.2010. Now this validity has been extended up to 31.03.2012. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exports shall be allowed only from Customs EDI Ports. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not061.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 61/(RE-2010)/2009-2014., Dated: July 20, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Smuggling by Customs Officers - New Modus Operandi </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HUMAN</strong> greed knows no bounds. The CBI reports that it has booked a case against Joint Commissioner; an Assistant Commissioner; four Supdts and an Inspector of Central Excise of Thiruvananthapuram Airport. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was alleged that the customs officials and clearing agents of Unaccompanied Baggage Section of Air Cargo Complex, Thiruvananthapuram Airport have been engaged in the unauthorized import of various items for sale/distribution in different parts of Kerala and other States in the guise of unaccompanied baggage using the names & passports of different persons and thus cheating the Govt. of India and obtaining illegal gratification for themselves. CBI intercepted 4 mini trucks loaded at Air Cargo Complex, Thiruvananthapuram Airport with goods cleared by Customs Officials. What do you do when the fence starts eating the crop? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is learnt that the Joint Commissioner is a 1999 batch lady IRS officer! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT does not like to sermonize on corruption; we would only request the officers to consider the consequences – going to jail; social humiliation; losing job and the torture of going through the case for decades. With reasonably good salaries now, is it all worth the risk? </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"> – 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">Stay/Dispensation of pre-deposit - Confectionery sold in multi-piece packages (jars/pouches) - Prima facie assessable under Section 4A of Central Excise Act, 1944 – Pre-deposit waived. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>this case, the department raised a demand by holding them assessable under Section 4 and the assessee contested that the jars/pouches should be assessed under Section 4A of the Central Excise Act, 1944. When the stay application came up for hearing, revenue supported its contention by relying on the Supreme Court decision in case of Swan Sweets and the applicants contested the demand by relying on the Larger Bench decision in case of Roys Industries Ltd. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Be it Section 4A or 4, it appears that the revenue is always at the receiving end. May be time to bring another Section (name it as Sec. 4AA) to the effect that “ In cases of assessment disputes under Section 4 or Section 4A, the Section under which duty liability is more will prevail.” </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">Whether profits from transfer of shares held for less than 30 days is entitled to be treated as short-term capital gains - YES, rules ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Tribunal are - Whether profits from transfer of shares held for less than 30 days is entitled to be treated as short-term capital gains; Whether the profit arising on sale of shares is capital gain or business profit when the assessee has been maintaining two portfolios separately, no borrowed funds utilized for acquiring the shares, the shares shown in the books of account as investment, and the intention was to earn dividend and Whether the loss arising on sale of derivative transactions is speculative loss instead of business loss for the A.Y. 2006-07 as per the notification issued by the CBDT. And the verdict goes against the Revenue. </font></p> <p align="justify"><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">Commissioner of Customs (Preventive) cannot be held to have had jurisdiction to issue show-cause notice in relation to imports which were made through New Customs House, Mumbai: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NO</strong> evidence has been brought on record by the respondent to show that the Commissioner of Customs (Preventive) was specifically assigned the function of issuing the show-cause notice and adjudicating the same in relation to the subject imports which were made through New Customs House, Mumbai.</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><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> </body> </html>