TIOL-DDT 1740 · 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 1740</font><br>
25.11.11 <br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty Imposed on Opal Glassware </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE</strong> reporting the Provisional Anti Dumping Duty, by Notification No. 72/2011-Cus dated 09.08.2011,<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12947" target="_blank"> <strong>DDT 1672- 12.08.2011</strong></a>, said:</font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has imposed provisional anti dumping duty on Opal Glassware originating in, or exported from, People's Republic of China and UAE. This duty is valid for a period of six months. Let us hope the Government will wake up in time to extend it before it lapses.</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has imposed definitive anti dumping duty on the product with effect from the date of provisional anti dumping duty that is 9 th August 2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is very rarely that we see a final anti dumping notification being issued before the expiry of the provisional notification. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_103.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 103/2011-Cus., Dated: November 23,2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Exemption to Goods for MR-SAM </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has exempted <em>Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, computer hardware, castings, forgings piping, tubing, chemicals, bio-chemicals, refrigerants, raw materials and consumables, ammunition and ground support equipments</em> required for the Medium Range Surface to Air Missile (MR-SAM) Programme of Ministry of Defence. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This exemption is valid till 21 08 2016 </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_102.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 102/2011-Cus., Dated: November 18,2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Online uploading of RCMC data on DGFT's Server By EPCs / Commodity Boards/Authorities - DGFT extends time </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>ALL</strong> Export Promotion Councils / Commodity Boards / Authorities were requested that the registration process and uploading of RCMC data may be completed by 31.10.2011. If EPC's /Commodity Boards /Authorities fail to register and upload data on DGFT's website within the prescribed time limit, the 'on-line' registration of RCMC issued by EPCs /Commodity Boards /Authorities on DGFT's website would be made mandatory w.e.f. 1.11.2011, after which no manual copy of RCMC / Registration Certificate would be entertained by DGFT offices. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the DGFT has extended the timeline for uploading of the RCMC data on DGFT's website till 30.11.2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has stated that no further extension for this process would be considered. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=329&filename=notification/dgft/2011/dgft_trade_notice_23_2011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Trade Notice No. 23/Dated: November 23, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
CBEC Issues Customs Manual on <em>Self Assessment </em></font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> CBEC</strong> has issued a Customs Manual on Self Assessment. The Manual covers (a) standard operating procedures, (b) compulsory compliance requirements (CCR) and (c) key aspects of Customs requirements such as classification, valuation, exemption notifications etc. for correct Self-Assessment of duty on goods imported or exported. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MC Thakur, Member, Customs, CBEC, says, “<em>Self-Assessment is expected to usher in a new era of trust based Customs-Trade partnership leading to greater facilitation of compliant traders. Therefore, it is important that the trade takes its responsibility for making correct Self-Assessment seriously. Of course, <strong>the Departmental officials shall be readily available to resolve any doubts that the trade may have</strong></em>”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He adds a disclaimer, “<em>However, it should be noted that the purpose of this Manual is to serve as a guide or advisory and it is neither exhaustive nor legally binding. Importers and exporters are advised to peruse the statutes, Rules and Regulations as well as Board's Circulars for ascertaining the <strong>correct</strong> legal provisions</em>”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why can't they issue a manual that is legally binding? </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Filing and Processing of Bill of Entry (B/E) </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Filing of B/E through Service Centre:</strong> The data pertaining to B/E is filed in a prescribed format at the Service Centre and a checklist is generated. While filing the B/E, the correctness of the information given therein has to be certified by the importer in the form of a declaration at its foot and any mis-declaration/incorrect details has legal consequences. The ICES system would accept Annexure for B/E only if it finds that the IGM No. and Bill of Lading (B/L) No. match the corresponding line number of the IGM. The system will accept only one declaration against a line number. If the declaration is not accepted, CHA (includes the importer) should verify the particulars The importer / CHA has to submit duly filled-in Annexure along with one copy of Invoice to the Service Centre . The Service Centre staff enters the data into the ICES system and generates Check List to be verified by the importer / CHA for correctness. On verification, if the data are found to be correctly recorded, the importer / CHA will sign the Check List and return it to the Service Centre, signalling final submission. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Filing of B/E through ICEGATE: </strong>The importer / CHA can file B/E remotely through ICEGATE. In this case, the ICES application validates the data and in case of errors, a negative acknowledgment mentioning the error description is sent back to the importer / CHA. In case there is no error, B/E Number is assigned to the document and an acknowledgment is sent to the importer / CHA. Thereafter, the importer / CHA can print the Check List in their premises. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Processing of B/E not facilitated through RMS:</strong> ICES system automatically marks the B/E to the Appraising Group for processing by Appraising Officer (AO). B/Es with assessable value of more than Rs.1 Lac are marked to Group Assistant Commissioner (AC) while others are marked directly for payment of duty. After the assessment is approved by the AC concerned, the following process takes place: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. Assessed Copy of the B/E with examination instructions and TR-6 challan is printed at the Service Center for payment of duty. AO has the option to change tariff classification / notification / declared value etc., and raise queries for clarification. The queries raised by AO are marked to Group AC for approval. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. Processing status of the document can be enquired through Service Centre. In case of query, reply can be given through the Service Center. The duty is to be paid through designated banks or through e-payment mode. On receipt of duty payment message from Bank, the B/E is marked to the Appraiser (Docks). The importer / CHA should present a copy of the B/E along with duty paid challan and other documents including invoice, packing list etc. at the time of examination of the goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii. Inspector / EO examines the goods and enters the examination report and in case of discrepancy, the same is reported to the Appraising Group with comments of the SA. Thereafter, the Group may revise the assessment. Otherwise, the B/E is marked to Shed Appraiser (SA) for “out-of-charge”. After out-of-charge, the system generates two copies of B/E (importer's copy and the Exchange Control Copy).</font></p>
</blockquote>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/cs-self-assesmt2011-manual.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Manual of Self-Assessment </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Time to raise monetary bar for Single Member Bench of CESTAT </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> A</strong> netizen sent us this:-</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Section 35D(3) of the CEA, 1944 reads – </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“(3) The President or any other member of the Appellate Tribunal authorised in this behalf by the President may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a member where- </em></font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) in any disputed case, other than a case where the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the amount of fine or penalty involved, </font></em></p>
</blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">does not exceed <font color="#FF6633"><strong><u>ten lakh rupees</u></strong></font>.” </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It needs mention that it was by the Finance Act, 1996 (w.e.f 28.09.1996) that the amount was raised to Rupees Ten lakhs. Long ago, this amount stood at Rs.50,000/-. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, even after fifteen years, this amount stands at Rs.10 lakhs. The point that I wish to highlight is that over the years, even the Joint Commissioner/Additional Commissioner have been given powers to adjudicate cases involving duty above Rs.5 lakhs and upto Rs.50 lakhs. [Circular 957/18/2011-CX.3 dated 25.10.2011 refers]. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This would indirectly mean that even the Commissioner(Appeals) decides cases involving duty amounts up to Rs.50 lakhs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And if this be so, doesn't it appear too “paltry” an amount that is required to be heard by a Single Member Bench of the CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 35D(3) of the CEA, 1994, therefore, deservedly needs an amendment and so does Section 129C of the Customs Act, 1962.” </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a></a></font><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"> – Monday'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">Service Tax </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tax payable on services received from abroad - Tax can be paid from CENVAT Credit: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the instant case, though he is the recipient of service tax, the service provider is outside the country. In law, he is treated as a service provider and is levied tax. In other words, the liability to pay tax on the service, which he has received, is foisted on him under law. It is to discharge the liability he is entitled to use the Cenvat credit, which was available with him, and therefore the Tribunal was justified in interfering with the order passed by the Commissioner. As there is no liability to pay tax, the question of imposing penalty would not arise. </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 a charitable Trust makes donation to another Trust having Sec 80G Certificate, such donation can also be treated as charitable object - YES, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong>, a Public Charitable Trust, is constituted by a Deed of Trust dated 19.4.1984 with Supplementary Deeds dated 6.5.2000 and 19.1.2001. It is registered u/s 12A of the Act and its income is exempt u/s 11 of the Act. However, the Assessing Officer has held that the Trust is not eligible for exemption u/s 11 because it has given certain donations in contravention of the objects of the Trust- CIT(A) relying on the observations made in remand report allowed the appeal of the assessee- Matter reached to the ITAT.</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">Cenvat Credit availed on allegedly non-existent grey fabrics stock - Central Government Examiner of Questioned Documents has in his report concluded that signatures on application for registration and declarations of stocks were not made by applicants - Recovery stayed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> can be seen that the adjudicating authority has clearly recorded that the Government Examiner of Questioned Documents, Hyderabad has reported, that signatures made on the application for Central Excise Registration Certificate, and the declaration, do not tally/match. This would definitely indicate that the applications for registration and declarations of stocks were not made by the appellant/applicants either in their capacity as director of the companies or in their personal capacity. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements</font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend.</font></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>
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