TIOL-DDT 1725 · 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 1725 </font><br>
02.11.2011 <br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Grant of DEPB against free Shipping Bills converted by Customs Authorities </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CONVERSION</strong> of free shipping bills to DEPB Shipping Bills was allowed by the Department of Revenue vide Customs Circular No.6/2003-Cus. dated 28.1.2003 whereby Commissioners of Customs were given powers to allow such conversions. In accordance with the instructions, conversions were done by Customs. Subsequently, vide Circular No.4/2004-Cus. dated 16.1.2004 the facility to allow the conversion of free shipping bills to export promotion schemes was withdrawn.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this background, instructions were issued to the Regional Authorities (DGFT) not to grant DEPB benefits against such shipping bills which were converted by the Customs authorities. Some of the exporters approached High Courts claiming that DEPB should be given in cases where the conversions have been allowed by Customs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, DGFT clarifies that between 28.1.2003 and 15.1.2004, in case if the Commissioner of Customs has already allowed the conversion of free Shipping Bill to DEPB Shipping Bill, the DEPB claims can be admitted. Accordingly, RAs are instructed to decide the admissibility of DEPB claims. Old cases, which were rejected, can also be reviewed. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be noted that now with effect from 23 September 2010, such conversion is allowed as per <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2010/cuscir10_036.htm" target="_blank">Customs Circular No. 36/2010 dated 23.09.2010</a></strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/cuscir11_036.htm">. </a></font></em></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2010/dgft10cir044.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 44 (RE-2010)/2009-14, Dated: November 01, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Export of Meat - Schedule Amended </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has substituted Chapter 2 of Schedule 2 of ITC(HS) Classification of Export and Import Items. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The export of chilled and frozen meat shall be allowed subject to the provision specified to the gazette notification on raw meat (chilled and frozen) under Export (Quality Control and Inspection) Act, 1963. Offals of buffalo too are subject to the same conditions of quality control and inspection. Laboratories duly recognized by APEDA, as well as in-house laboratories attached under the abattoirs cum meat processing plants registered with APEDA and Agency approved labs, may also be used to conduct the necessary tests for confirmation of quality under the supervision of the designated veterinary authority of the State. On the basis of these tests and inspections carried out by Veterinarians, duly registered under the Indian Veterinary Council Act 1984, employed by the exporting unit and supervised by the designated veterinary authority of the State, the veterinary Health Certificate may be issued by the designated authorities of the state . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Beef includes meat and edible offal of cows, oxen and calf; Offal includes heart, liver, tongue, kidneys and other organs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exporters would now be required certify both (a) that the items have been obtained/sourced from an APEDA registered integrated abattoir or from APEDA registered meat processing plant and (b) that the raw material have been sourced exclusively from APEDA registered integrated abattoir/abattoir. Designated Veterinary Authority of the State are now authorized to issue the certificate on the basis of the inspections carried out by Veterinarians duly registered under the Indian Veterinary Council Act 1984 employed by the exporting unit in relevant laboratories. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not082.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 82(RE-2010)/2009-2014, Dated: October 31, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption for Export of Excise Verified Casein and casein products manufactured before imposition of ban on export of milk products </font></strong></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CASEIN</strong> and casein products that had already been manufactured as on the date of ban on export of milk products (i.e. 18.02.2011) would be permitted to be exported limited to a total of 1053.625 MTs. The names of such exporters with applicable quantity will be given separately. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the DGFT has by a Trade Notice announced the names of six firms permitted to export the excise verified stock of quantities mentioned against their names (which were manufactured prior to ban) </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=45&filename=notification/dgft/2010/dgft10not083.htm" target="_blank">DGFT Notification No. 83(RE-2010)/2009-2014, Dated : October 31, 2011 </a></font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=329&filename=notification/dgft/2011/dgft_trade_notice_21_2011.htm" target="_blank">DGFT Trade Notice No. 21, Dated : October 31, 2011</a> </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Status Holders Incentive Scrip – Eligible for Exports in 2012-13 also </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PARA</strong> 3.16.1 of the Foreign Trade policy reads as: </font></p>
<blockquote>
<p align="justify"><em><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.16 Status Holders Incentive Scrip (SHIS) </font></strong></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <em>3.16.1 <br>
<br>
With an objective to promote investment in upgradation of technology of some specified sectors as listed in Para 3.16.4 below, Status Holders shall be entitled to incentive scrip @1% of FOB value of exports made during 2009-10, 2010-11 and during 2011-12, of these specified sectors, in the form of duty credit. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
The Status Holders of the additional sectors listed in the Para 3.10.8 of HBPv1 2009-14 (RE-2010) shall be eligible for this Status Holders Incentive Scrip on exports made during 2010-11 and 2011-12. <br>
<br>
This shall be over and above any duty credit scrip claimed/availed under this chapter. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it is added, “The Status Holders shall also be eligible for the Status Holders Incentive Scrip on exports made during 2012-2013”. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not084.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 84(RE-2010)/2009-2014, Dated : October 31, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Realisation of Export Proceeds - One year time - Liberalisation </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>March 2011, the Reserve Bank of India enhanced the period of realization and repatriation to India of the amount representing the full export value of goods or software exported, from <strong>six months to twelve months</strong> from the date of export. This relaxation was available up to September 30, 2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the RBI has extended it with effect from October 01, 2011 till September 30, 2012. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir040.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Circular No. 40/2011, Dated: November 01, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Authorised Money Changers - restriction on Branches </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>APPLICATIONS</strong> from Authorised Money Changers (AMCs) for additional offices in metropolitan cities were considered if the total offices (including proposed offices) of the applicant are in the ratio 1:1 (i.e. the applicant has one non-metropolitan office for every office in a metro). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to provide more flexibility, to authorised persons to decide the location of their branches, it has been decided to dispense with the criteria of 1:1 ratio between metro and non-metro branches. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, RBI expects branches to be diversified and to be meeting the demand of tourists, etc. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir041.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Circular No. 41/2011, Dated: November 01, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITO and his wife sentenced in a disproportionate assets case </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Special Judge for CBI cases, Delhi has sentenced, an Income Tax Officer to undergo four years rigorous imprisonment with a fine of Rs.Four lakh and his wife to undergo two years rigorous imprisonment with a fine of Rs.Two lakh in a disproportionate assets case. The Court has also ordered forfeiture of disproportionate assets to the tune of Rs.1,04,45,122/- to the State. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBI had registered the Case on 12.06.2007 against the then Income Tax Inspector and his wife under section 13(1) (e) of PC Act, 1988. It was alleged in the FIR that both the accused persons had acquired assets disproportionate to their known sources of income to the tune of Rs.1,04,45,122/-. Later on, he was promoted as Income Tax Officer (through CAT case) and transferred to the office of DCIT(HQ), Income Tax. </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"> – Thursday'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">Money Transfer from abroad - whether Export or Service rendered in India - Matter referred to Third Member: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ARE</strong> the provisions of Export of Service Rules, 2005 and Circulars issued by CBEC clarifying the scope of the said Rules in conflict with the theory of equivalence; Whether the issue as to what constitutes export of services is to be determined with reference to provisions in Export of service Rules, 2005 only?; Whether the destination of the impugned service to be determined on the basis of location of the consumer of the service in India or the location of the person abroad who requested for the service to be provided in India; Whether the amounts paid to sub-representatives is excludible from the value of taxable service. </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 deduction u/s 80HHE is to be worked out before computing book profit u/s 115JA or on basis of profits computed under regular provisions of Income Tax - Apex Court upholds Special Bench decision in Syncome Formulations and rejects Revenue's SLP </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> filed its return of income for assessment year 2000-01. Assessee claimed deduction under Section 80HHE to the extent of Rs.1,56,33,719/- against net profit as per profit and loss account amounting to Rs.3,07,84,105/- to arrive at the book profit of Rs.1,51,50,386/- under Section 115JA. AO rejected the claim on the ground that since in normal computation there is no profit after carry-forward loss, deduction under Section 80HHE was not admissible. The issue before the Bench is - Whether deduction u/s 80HHE is to be worked out before computing the book profit u/s 115JA or on the basis of profits computed under regular provisions of the I-T Act. <strong>And the decision goes in favour of the assessee. </strong></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">Central Excise - Refund claim under Notification No. 33/99-CE may be decided based on monthly returns filed by assessee: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN</strong> appellant filed RT-12 returns with the lower authority claiming benefit of Notification No. 33/99-CE, the refund claims may be decided on the basis of returns filed by the appellant and that the filing of a statement under the Notification was only procedural in nature. </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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