TIOL-DDT 1754 · 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 1754</font><br> 16.12.11<br> Friday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Export of Meat - Requirement of APEDA registered abattoir deferred </font></strong></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AS </font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">per<strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not082.htm" target="_blank"> DGFT Notification No. 82 (RE 2010)/2009-14 dated 31.10.2011</a></strong>,</font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of meat and meat products will be allowed subject to the exporter furnishing a declaration, attached with copies of valid APEDA Plant Registration Certificate(s) to the customs at the time of exports that the above items have been obtained/ sourced from an APEDA registered integrated abattoir or from APEDA registered meat processing plant which sources raw material exclusively from APEDA registered integrated abattoir/abattoir . </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it has been decided to grant some transition time to make this provision effective. Accordingly, this provision will come into effect after six months i.e. from 15th June 2012. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The stipulation that raw material for export of meat and meat products must be sourced exclusively from APEDA registered abattoir/integrated abattoir will come into effect on 15.06.2012, instead of 31.10.2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Background</strong>: Actually the validity of this notification had been challenged in the Bombay High Court on the ground that it is discriminatory and is, therefore, violative of the fundamental right under Article 14 of the Constitution and constitutes an unreasonable restraint on the right to carry on business thereby infringing Article 19 (1)(g) of the Constitution. The High Court by a decision dated 1st December 2011 dismissed the writ petition. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another plea made by the petitioner was that the condition had been imposed all of a sudden and it will take sometime for persons who were otherwise registered with APEDA as a meat processing plant to provide an integrated abattoir. The High Court granted two weeks time to the petitioner to make a representation to the Government and the Government was to take a decision expeditiously. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Apparently, the Government has taken a decision and allowed six months time to implement the new procedure. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there was another question. What about the stock of meat already lying with the petitioner, which does not have the required certificate? Now that this requirement is deferred by six months, the existing stock can be exported. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court passed an order within one month from the date of issue of notification and the Government responded within 15 days. Some real fast work! This is how the system should work. But the Government should have visualized this problem while issuing the notification in the first place. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a strong feeling among officers in the field and traders that the big babus sitting in Delhi and manufacturing notifications have no field experience and do not know ground realities. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not089.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 89/(RE-2010)/2009-14, Dated: December 15, 2011</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Empty Gelatin capsule to EU </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the Schedule 2 of ITC(HS) Classification of export and import items and added an item 165A in Chapter 96. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, for export of Empty Gelatin capsule to EU, CAPEXIL will be the competent authority for issuance of shipment clearance certificate. Post shipment Health certificate will be issued jointly by CAPEXIL and Regional Animal Quarantine Officer, Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Government of India. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not090.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 90/(RE-2010)/2009-14, Dated: December 15, 2011</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Documents for Registration </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Rule 4(1A) of the Service Tax Rules (inserted by Notification No. 48/2011–ST., Dated: October 19, 2011), “<em>the Central Board of Excise and Customs may, by an order specify the documents which are to be submitted by the assessee along with the application (for registration) within such period, as may be specified in the said order" </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the board has specified the following documents: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Copy of Permanent Account Number (PAN) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Proof of Residence </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Constitution of the Applicant. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Power of Attorney in respect of authorised person (s). </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board also specifies that the above documents must be submitted to the <em><strong>concerned</strong></em> authority within a period of 15 days from the date of filing of the application for registration. Failure to do so would lead to rejection of the registration application. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Rule 4(5) of the Service Tax Rules, a registration certificate is to be given within seven days and if it is not so given, the registration is deemed to be granted. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now Board clarifies that the time limit of seven days from date of receipt of application or intimation under Rule 4(5A), within which the registration is to be granted by the Superintendent of Central Excise or Service Tax, as referred to in Rule 4(5) shall be reckoned from the date the application for registration is complete in all respects.</font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2011/st_order_11_02.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Order No. 2/2011 – Service Tax, Dated : December 13, 2011</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Companies Act - Allotment of Director's Identification Number (DIN) </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Circular No. 32/2011 dated 31.05.2011, the time for filing form DIN-4 by DIN holders for furnishing PAN and to update PAN details, was 30 th September 2011. By Circular No. 66/2011 dated 04.10.2011, this date was extended till 15 th December and yesterday, the Government extended it further till 29.02.2012. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MOCA is also as good as other Ministries in callous manner of drafting their laws and circulars. The circular mentions Circular No. 36 instead of 66! </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/mca_circular_70_2011.htm"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA Circular No. 70/2011 Dated; December 15 2011</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Company Law Settlement Scheme, 2011 - Extended </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Circular No. 59/2011 dated 05.08.2011, the MOCA announced the <strong>Company Law Settlement Scheme, 2011</strong>, which was to be in force from 12.08.2011 to 31.10.2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Circular No. 65/2011 dated 04 10 2011, the Scheme was extended till 15.12.2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday was the last date and the Government has further extended it till 15.01.2012 with a condition that it will not be further extended beyond 15.01.2012. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/mca_circular_71_2011.htm"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA Circular No. 71/2011 Dated; December 15 2011</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No Freezing of Customs Duties - Anand Sharma </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COMMERCE</strong> Minister Anand Sharma ruled out freezing of the customs duties at the current levels (Tariff standstill) and stated that this amounted to the developing countries ceding their policy space and being denied any recognition for their autonomous liberalization. Besides unhinging the negotiated formula on tariff reductions it would force the developing countries to take on commitments going much beyond what was envisaged for at the end of the Doha Round. He was addressing the Group of 20 developing countries in Geneva yesterday. </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"> – Monday'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">Customs</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of meat - requirement of certificate that products have been obtained from APEDA registered abattoir - Challenge to DGFT Notification No. 82/2011 dismissed: HC</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner challenges the condition imposed by DGFT that “<em>Export of meat and meat products will be allowed subject to the exporter furnishing a declaration, attached with copies of valid APEDA Plant Registration Certificate(s) to the customs at the time of exports that the above items have been obtained/sourced from an APEDA registered integrated abattoir or from APEDA registered meat processing plant which sources raw material exclusively from APEDA registered integrated abattoir/abattoir</em>” </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 certain flats are leased out for certain period but tenant vacates some flats before contracted period, addition is warranted for additional rental receivable - YES, rules ITAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> company had earned rental income from its various properties. It had leased out 19 flats to Patni Computer Systems Ltd. In all these 19 flats, the last Leave and License agreement was effective upto 31st December 2005. In respect of four flats, Patni Computer Systems Ltd. intimated that they had discontinued the use of the property w.e.f. 1.7.2005. Accordingly, they did not pay rent from that date. The AO did not accept this submission of the assessee and computed the additional rent receivable for the period July 2005 to December 2005. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Functions performed by National Highway Authority of India or its contractor cannot be considered as sovereign functions: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE</strong> the tax imposition is made for public purpose without reference to any service rendered by the State or any specific benefit conferred upon the tax payer, a fee is a payment levied by the State in respect of the services performed by it for the benefit of the individual. Money raised by a fee is set apart and appropriated specific for the purpose of the service for which it has been imposed and is not merged in the general revenues of the state. Further the NHAI Act itself provides under section 18 that the fee collected by the authority shall be credited to its own fund and can be utilized for meeting its expenses in the discharge of its functions on salary and allowances and other remunerations provided to its members, officers or other employees etc. In view, of the distinctive nature of the functions and the amounts collected, prima facie the functions performed by NHAI or its contractor cannot be considered as sovereign functions nor the fees collected acquires the nature of tax or duty so as to be outside the scope of service tax. </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><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend.</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>