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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1664</font><br>
02.08.2011<br>
Tuesday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Imports from ASEAN Countries - ‘Kingdom of Cambodia' added in Notification </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> No. 189/2009-Cus (N.T.)., dated December 31, 2009 provides for Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule 2(j) of the Rules defines “party” as India or an ASEAN Member specified in Annexure IV to these rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Government has now amended this notification to include ‘The Kingdom of Cambodia' in Annexure-IV of this Notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Countries listed in the Rules are </font></p>
<div align="justify">
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Malaysia,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Singapore,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Thailand,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Vietnam,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Myanmar,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Indonesia,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Brunei Darussalam
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Lao PDR
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Philippines and now
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Cambodia </font></p>
</blockquote>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With this all the ASEAN countries are covered by these rules. There are 11 Countries in ASEAN including India. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_052.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 52/2011-CUS (NT), Dated : July 28 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Concessional rates of duty for imports from ASEAN Countries - Cambodia Added in a Complicated Notification </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Notification No. 46/2011 – Cus dated 01.06.2011, goods listed in the table – (and it is a huge list containing 1575 items with different rates of duty) when imported from ASEAN countries listed in Appendix 1 attract concessional rates of Customs duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appendix I has eight countries </font></p>
<div align="justify">
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Malaysia,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Singapore,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Thailand,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Vietnam,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Myanmar,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Indonesia,
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Brunei Darussalam and
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Lao PDR. </font></p>
</blockquote>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, Cambodia is added as the ninth Country. Appendix II has only one country – Philippines. With this, now all ASEAN Countries are covered in the notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But Cambodia has another exemption Notification - 96/2008–Cus dated13.08.2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From this maze of notifications, choose what is best! </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_068.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 68/2011-CUS, Dated : July 29 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">India-Japan CEPA comes into force - Customs Exemption Notification issued </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INDIA</strong> and Japan Comprehensive Economic Partnership Agreement (CEPA) entered into force yesterday. This is India's 3rd Comprehensive Economic Partnership Agreement (after Singapore and South Korea) and India's first with a developed country. The Agreement is most comprehensive of all the agreements concluded by India so far as it covers more than 90% of trade, a vast gamut of services, investment, IPR, customs and other trade-related issues. Under the India- Japan CEPA only 17.4% of the tariff-lines have been offered for immediate reduction of tariff to zero % by India. Tariffs will be brought to zero in 10 years on 66.32% of tariff lines to give sufficient time to industry to adjust to the trade liberalization. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has issued a Customs Notification granting concessional rates of duty for goods when imported from Japan. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exemption shall be available only if importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of Japan, in terms of rules as may be notified in this regard by Central Government </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_069.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 69/2011-Cus., Dated: July 29, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise - Ships and Vessels Exempted </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has exempted ships in respect of which a general licence under section 406 of the Merchant Shipping Act, 1958 has been granted by the Director General Shipping. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under Section 406 of the Act, Indian ships and chartered ships are to be licensed by the Director General. The licences are of three kinds: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>a
general licence; </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ a licence for the whole or any part of the coasting trade of India; or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
a licence for a specified period or voyage; </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Only those ships, which are granted a general licence, are exempted. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_38.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 38/2011–CX, Dated: July 29, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Issue of DDs for Rs. 50,000 and above - RBI instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RBI</strong> had issued a Circular in April 1991 in terms of which demand drafts, mail transfers, telegraphic transfers and travellers cheques for Rs. 50,000 and above should be issued by banks only by debit to the customer's account or against cheques or other instruments tendered by the purchaser and not against cash payment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In 1999, these instructions were extended to retail sale of gold/silver/platinum. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been brought to RBI's notice that some banks have recently issued demand drafts of Rs. 50,000 and above on deposit of cash and not against debit to the customer's account or against cheques or other instruments tendered by the customer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI states, “ In the current scenario where the integrity of the financial system in general and the banking channels in particular is of paramount importance, breach of these guidelines is a matter of serious regulatory concern in view of the wide ranging ramifications ”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI reiterates the instructions and wants strict compliance by Banks. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any violation of the instructions will be viewed seriously. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/rbi_circular1.pdf"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI/2011-12/135 DBOD.BP.BC.No.26/21.01.001/2011-12 , Dated: August 01 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Fundamentals of Economy are Strong - FM </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Union Finance Minister, Pranab Mukherjee has expressed confidence that the fundamentals of the economy are strong and the growth drivers in the medium term remain broadly intact. He was interacting with the captains of top business houses, in Delhi yesterday. During his two and a half hour marathon meeting with top business leaders of the country, he said that the industry should play a proactive role in taking the country to the path of higher trajectory of growth. He said that such interaction should help in building the synergy needed to propel the economy to greater heights in the coming months. He said that there here had been some cynicism expressed of late regarding lack of adequate movement on policies and institutional processes. He stated that he found this view to be based more on perception than facts because several significant policy initiatives had been taken in the recent past and many others were in the pipeline. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt1653.jpg" alt="Legal Corner Icon" width="450" height="252" hspace="5" border="0" align="center"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The meeting was attended by Anand Sharma, Union Commerce and Industry Minister along with R. S. Gujral, Finance Secretary, R. Gopalan, Secretary, Economic Affairs, Rahul Khullar, Secretary,Commerce, R. P. Singh, Secretary, DIPP, G. C. Chaturvedi, Secretary, Petroleum, P. S. Sundareshan, Secretary, Heavy Industry, P.Umashankar, Secretary,Power and Dr. Kaushik Basu, Chief Economic Adviser among others. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From the business side, it was virtually India's Who's Who in business - top industrialists who attended the meet include Ratan Tata, Anil Ambani, Anand Mahindra, Y C Deveshwar, Sunil Mittal, Sunil Munjal, N R Narayana Murthy, G M Rao, Venu Srinivasan, RP Goenka, Shashi Ruia and G V K Reddy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Finance Minister Mukherjee said that on the global front, the sovereign debt problems that had beset the Euro zone over the past year were now threatening to spill over to the larger economies. From India's perspective, the issues of concern were the possible rise in commodity prices and increased volatility in capital flows. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The FM said that he was aware that much more could be done by both the government and the private industry. He invited the concerns and suggestions from the top business leaders present. He said that there was a panel of Secretaries to take note of sector specific concerns as well. </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"> – Wednesday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a></a><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/Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Writ Jurisdiction of High Court - Even if a miniscule part of cause of action arises within jurisdiction of court, writ petition would be maintainable before Court; doctrine of forum conveniens and nature of cause of action are required to be scrutinized by High Court: Delhi HC LB </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AN</strong> order of the appellate authority constitutes a part of cause of action to make the writ petition maintainable in the High Court within whose jurisdiction the appellate authority is situated. Yet, the same may not be the singular factor to compel the High Court to decide the matter on merits. The High Court may refuse to exercise its discretionary jurisdiction by invoking the doctrine of forum conveniens . </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 when assessee stands convicted for two AYs and complaint filed for third u/s 276B, any revision of compounding guidelines and an intimation to assessee in this regard would mean that assessee is entitled to compounding even after complaint being filed - NO, rules Delhi HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</strong> the AY 1982-83, TDS by the company was deposited beyond the period prescribed by law. Similarly, during AY 1983-84 and 1984-85 also, the company deposited the tax beyond the period prescribed by law. That being so, the I.T Department filed complaints against the Company & Directors u/s 276B before the Court of CMM for all the three A.Y. The complaint for the A.Y 1982-83 was still at trial stage. As regards the complaints for the years 1983-84 and 1984-85, the ACMM convicted the two Directors of the company. </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">Limitation - Facts known to the Department in 1996 - Show Cause Notice issued in 2000 - No finding to the effect that there was a fraud or willful mis-statement or suppression of facts.- Demand barred by limitation: SC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is not in dispute that alleged suppression of payment of duty by the respondent-company was brought to the notice of the authority on 25th October 1996, when the Superintendent of Central Excise had inspected the premises of the respondent-assessee, whereas the show cause notice was issued on 26th June 2000. The department could not establish that there was any suppression of facts or a fraud on the part of the respondent-assessee. The honest mistake committed in maintenance of stock register etc. was frankly admitted by the Managing Director of the respondent-assessee. There is no finding to the effect that there was a fraud or willful mis-statement or suppression of facts. Thus, it is very clear that the notice was issued after expiry of the period of limitation. </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 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>
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