TIOL-DDT 1688 · 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 1688 </font><br>
08.09.2011 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">India exempts more items imported under SAFTA </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL </strong>Government issued a new notification exempting import of certain specified items from specific SAFTA countries viz., Bangladesh, Bhutan, Nepal and Maldives from the whole of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975. This notification is issued in supersession of Notification No. 107/2008-Cus dated October 6, 2008. While the erstwhile Notification covered 259 items, the new Notification covers 305 products. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The importer should however satisfy the Asst/Dy. Commissioner of Customs that the said goods in r/o which the benefit of this Notification is claimed originated from the above mentioned countries in accordance with the Rules of Determination of Origin of Goods under the Agreement on South Asian Free Trade Area (SAFTA), 2006 as notified under Notification No. 75/2006-Cus (NT) dated June 30, 2006. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_085.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 85/2011-Cus., Dated: September 06, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-dumping duty on Cold Rolled Flat products of Stainless Steel - Notification amended after Mid-term Review </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> virtue of Notification No. 14/2010-Cus dated February 20, 2010, Central Government imposed anti-dumping duty on import of cold-rolled flat products of stainless steel of the width of 600mm upto 1250 mm of all series further worked and then cold rolled (cold reduced) with a thickness of upto 4mm, originating in or exported from People's Republic of China, Korea, European Union, South Africa, Taiwan, Japan, Thailand and USA.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, by way of a mid-term review and the final findings based on such review undertaken by the DG Anti-Dumping, an amendment is proposed to the said Notification by which the following text is inserted in para 1, after the Table annexed thereto: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"(a): Width tolerance of (+) 30mm shall apply to Mill edged, Cold-rolled flat products of stainless steel of specified width of 1000mm or more but not exceeding 1250 mm. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b): Width tolerance of (+)4mm shall apply to Trim edged Cold rolled flat products of stainless steel of specified width exceeding 1000mm but not exceeding 1250mm." </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_086.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 86/2011-Cus., Dated: September 6, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Fake Educational Institutions - Whether de-recognition or branding of universities/institutions as fake result in attracting service tax levy? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government, through University Grants Commission (UGC) and All India Council for Technical Education (AICTE), keeps a watch over the fake universities and the unapproved technical institutions. The UGC has identified 21 universities/institutions as fake running in various parts of the country, in contravention of the UGC Act, 1956, out of which 8 are in Uttar Pradesh, 6 are in Delhi and 1 each in Bihar, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Tamil Nadu and West Bengal. Similarly, the AICTE had identified 348 institutions running technical and management courses/programmes in violation of the AICTE Regulation dated 6th January, 2005. Out of these total number of unapproved institutions, 75 each are in Delhi and Maharashtra, 52 in Andhra Pradesh, 34 in West Bengal, 30 in Uttar Pradesh, 26 in Karnataka, 17 in Haryana, 14 in Tamil Nadu, 9 in Chandigarh, 4 in Gujarat, 2 each in Bihar, Himachal Pradesh, Punjab, Rajasthan and Goa and 1 each in Uttrakhand and Kerala. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The UGC has taken legal action in various courts against 6 of these fake universities. The State Governments have also initiated action against certain fake universities. Show-cause notices have also been served by the UGC to some of the fake universities/institutions and by the AICTE to the unapproved institutions for closure of their programme. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
information was given by the Minister of State for Human Resource Development
Smt. D. Purandeswari, in a written reply to a question, in the Lok Sabha
yester day. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the pertinent question is, if these institutions were not recognized by the statutory bodies under the relevant laws, then the courses offered by them as well as the certificates awarded by them would be unrecognized by law to gain exemption from levy of tax. It will be interesting to see how the service tax authorities will go about collecting dues from these fly by night ‘fake' universities and institutions. </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Industrial Production Growth Rate Declines </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INDUSTRIAL</strong> growth measured in terms of index of Industrial Production (IIP) improved from 2.5% in 2008-09 to 5.3% in 2009-10 and further to 8.2% in 2010-11. In the first quarter of current year, the growth moderated to 6.8% compared to a growth of 9.6% in the first quarter of the previous year. The moderation in the growth in the first quarter was largely on account of a moderation of growth in the mining sector. Consumer durables and intermediates within the manufacturing sector also witnessed moderation in growth. Hardening of interest rates to some extent affected the growth in these segments. <br>
<br>
The major focus areas for improving the industrial climate during the 11th Plan have been the creation of world class infrastructure, promotion and facilitation of industrial investment including the foreign direct investment, improvement in business environment, and development of industry relevant skills. The Union Budget 2011-12 has clearly indicated that for sustained growth of GDP and productive employment for younger generation, it is imperative that the growth in manufacturing sector picks up. Government is considering a manufacturing policy, which will bring down the compliance burden on the industry through self-regulation and help make Indian industry globally competitive. This will improve the growth rates for manufacturing and industry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This information was given by the Minister of State for Commerce and Industry Shri Jyotiraditya M. Scindia in a written reply to a question, in the Rajya Sabha yesterday. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Classification of Laminated Panels Under SH 4408.90 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>a judgement delivered yesterday, the Supreme Court held that laminated panels of particle and medium density fiber board should be classified under sub- heading No. 4408.90. The product after lamination assumes a distinct marketability and brings about a change in the product. This change, after lamination makes the product fall outside the purview of chapter heading 44.06 and that would place the product under chapter heading 44.08 as the word used under chapter heading 44.08 is "similar laminated wood". Further recourse may also be taken to rule 3 (c) of the Rules for interpretation of the Act which envisages that if the products are capable of classification under two chapter headings, then as per the said rule, the classification must be under the heading which occurs last in the numerical order. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this judgement today. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=13145" target="_blank">Breaking News</a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP – Minimum Export Price of Onions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MINIMUM</strong> Export Price (MEP) of all varieties of onions including Bangalore Rose Onions and Krishnapuram Onions will now be USD 475 per Metric Ton F.O.B. It was USD300 per Metric Ton for general category onion as notified on 24.08.2011 and USD 400 per MT F.O.B. for Bangalore Rose Onions and Krishnapuram onions as notified on 12.08.2011. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not070.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 70 (RE – 2010)/2009-2014, Dated: September 07, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Direct Tax Collections of Rs. 8.3 Lakh Crores by 2014-15 - FM </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INCOME</strong> Tax Department has been at the forefront of collecting revenue for the Government since the Financial Year 2007-08. During 2010-11, the Income Tax Department exceeded the revised Budget Estimates by collecting more than Rs.4.46 lakh crores. Collection of Direct Taxes has almost doubled in the last four years from Financial Year 2006-07 to Financial Year 2010-11. This has been possible due to rationalization of tax structure, improvement in tax administration, better tax payers' services and commendable efforts put in by the officers and employees of the Income Tax Department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was stated by the Finance Minister Pranab Mukherjee while addressing the Third Meeting of Central Direct Taxes Advisory Committee(CDTAC) in Delhi yesterday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The FM added; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A major step towards improving tax payer services was taken by the Department by setting-up of Centralized Processing Centre (CPC) at Bangalore in the year 2010. This CPC has been stabilized and is processing 1.0 lakh returns daily, he added. Shri Mukherjee said that this project is a strong efficiency multiplier and is being replicated at Manesar, Pune andKolkata. The Finance Minister Shri Mukherjee said that he is sure that operationalisation of these CPCs would give a fillip to the processing capacity and help in processing the returns of income expeditiously. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tax Deduction at Source is a major component of Tax collected. Government is in the process of setting-up a Centralized Processing Centre (CPC) for TDS matters at Ghaziabad, which will help in improving the TDS administration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Union Finance Minister said that the Government has adopted a Five-pronged strategy to tackle the highly sensitive issue of Black Money. This strategy comprises of – </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Joining the Global crusade against black money; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Creating an appropriate legislative framework; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Setting up institutions for dealing with illicit money; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Developing system for implementation; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Imparting skills to the manpower for effective action. </font></p>
</blockquote>
<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">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">GTA - Assessee paid tax without abatement as per Circular of DGST - Later Board clarified that assessee is eligible for abatement - Refund with interest to be granted: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CONFUSION</strong> was created by the redundant circular dated 30.3.2005, which was rectified by the circular dated 27.7.2005. In such a situation, coupled with the bona fides clearly attributable to the assessee, the benefit of the circular dated 27.7.2005 would be available to the assessee. The substantial questions of law are answered against the Revenue, and in favour of the assessee. It shall be entitled to amount of refund along with interest at the same rate at which the Revenue is entitled to interest for delayed deposit by the assessee, from the dates of deposits of the excess amount till the date of refund. </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 assessee is entitled to claim deduction u/s 35D even after word 'industrial' is omitted from April 1, 2009 - NO, 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 the expenses incurred towards issue of equity shares to the public is a capital expenditure; whether the interest income earned on deposit of share amount pending for allotment with the bank is to be reduced by the public issue expenses incurred and whether the assessee is entitled to claim deduction u/s 35D as the word ‘industrial' in section 35D(1)(ii) is omitted w.e.f. 1st April 2009 and the amendment is not retrospective. Assessee's appeal partly allowed. </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">Provisional assessment - Interest only after 13.7.2006: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is a well established principle of construction that a statute inconsistent with substantive rights is prima facie considered prospective unless it is expressly or by necessary implication may have been given retrospective operation. In absence of any indication in the statute itself either specifically or by necessary implication giving retrospective effect to such a statutory provision, the same cannot be applied to cases of provisional assessment which took place prior to the said date. Any such application would amount to retrospective operation of the law. </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">Zinc dross and Skimmings cannot be treated as excisable goods even though they find specific entry in Excise Tariff and even though they may fetch some price in market: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> in Circular dated 28.10.2009 has clarified that prior to 10th May 2008 when section 2(d) of the CEA, 1944 was amended Zinc dross and Skimmings cannot be treated as excisable goods even though they find specific entry in the Excise Tariff and even though they may fetch some price in the market – Demands for earlier period set aside:</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 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"><strong> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p>
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