TIOL-DDT 1762 · 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 1762 </font><br>
28.12.2011 <br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Imports from Least Developed Countries – Concessional duty – Lists amended </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Notification No. 96/2008 dated 13.08.2008, imports from certain listed least developed countries attract a concessional rate of Customs duty. The list has 27 countries like Cambodia, Tanzania, Uganda, Senegal, Mali, Somalia etc. Now Republic of Liberia and Union of Comoros are added as the 28 th and 29 th countries respectively. More items have also been added to the list of exempted products. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_113.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 113/2011-CUS, Dated : December 23, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP – 26 percent of FOB value for Speciality Textile Products </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended the General Note No.5 for Textiles (Product Code: J) in the Handbook of Procedures, Vol.2, 2009-2014. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The amended General Note 5 reads as, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Wherever import of dyes is permitted, the same will be restricted to 12% of FOB value within the overall CIF value of the licence. Wherever, import of dyes and chemicals has been permitted, the same will be restricted to 14% of FOB value within the overall CIF value of the licence except in respect of J.28 where the same will be restricted to 16% of FOB value within the overall CIF value of the licence. For specialty textile products like Fire Retardant textile product as well as for Water, Oil and Stain repellant textile products, the same will be restricted to 26% of FOB value within the overall CIF value of the licence."</font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This means that the existing ceiling of 14% of FOB value within the overall CIF value of the licence will be enhanced to 26% of FOB value for specialty textile products like Fire Retardant textile product as well as for Water, Oil and Stain repellent textile products. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn088.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 88/(RE – 2010)/2009-2014, Dated: December 27, 2011</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Companies – Shareholders Meeting - Video Conference </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Ministry of Corporate Affairs had in June 2011, instructed that <em>"in respect of shareholders meetings to be held during the financial year 2011-12, video conferencing facility for shareholders is optional. Thereafter, it is mandatory for all listed companies." </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Ministry clarifies that the mandatory requirement for holding shareholders meetings through video conferencing shall continue to be optional for listed companies for the subsequent years too . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Ministry has further directed that <em>"for e-voting in general meetings, any agency providing electronic platform for e-voting is required to obtain certificate from Standardization Testing and Quality Certification (STQC) Directorate, Department of Information Technology, Ministry of Communication and IT, Government of India, New Delhi.</em>" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is further clarified that the Ministry shall not authorize any agency for the purpose of providing video conferencing facilities by the corporate sector. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/mca_circular_72_2011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA General Circular No. 72/2011, Dated: December 27, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">SEZ DCs to deal with their Court Cases</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Department of Commerce observes that in many instances the SEZs are sending the matters back to that Department for vetting of the counter affidavit to be filed by the SEZs. Most of the issues pertain to the SEZ itself and the DC is best placed to furnish the facts and seek advice of the Government Counsel in the matter. The Department states that the DCs of SEZs are expected to represent the cases pertaining to their jurisdiction before the High Courts/ Supreme Court etc. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department has given the following guidelines: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Primary examination and dealing with court cases and other litigation matters pertaining to specific SEZs should be carried out by respective DC, SEZs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In the cases where Department of Commerce (DoC) (Secretary, Additional Secretary, Joint Secretary, Director etc.,) is a party and an issue of policy is being brought before the Court, then the draft reply on the specific issue may be vetted by DoC. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In other matters, if the DC, SEZ is of the opinion that directions of DoC are necessary on a particular issue(s) taken up in Court cases, the same may be sent to this Department for clarification/direction, clearly stating the issue on which directions/clarifications is being sought. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In all other matters, the <strong>concerned</strong> DC, SEZ should take all necessary steps, including consultation with Government Counsel and represent the matter before the relevant Court on behalf of UoI also. </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/Handing_of_court_cases.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DOC Letter No. D 12/10/2011-SEZ, Dated: December 12, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CCs requested to give data of officers by CBEC Member </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>September 2011, the DGHRD of CBEC had requested Chief Commissioners to forward the verified data of the Group A officers posted under their charge for updating of their History of Postings. An exhaustive list of officers, whose verified data/History of Posting is not available with DGHRD, was also forwarded along with that letter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps the DGHRD is not rated very high in the field. The Board wanted particulars of nearly a thousand officers and they got information from the field about only 50 officers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Member (P&V) has written a DO Letter to the Chief Commissioners requesting them for the particulars latest by 31 December 2011. This is sure to ignite the field into action. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">IRS
Officers Transfer Requests – Big Gap – CBDT Study </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>twin objectives of a Transfer Policy are</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ To achieve organizational requirements such as optimum deployment and equitable distribution of manpower and promote All-Round Development of Officers </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ To fulfill individual officer's preferences in postings.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For effective functioning of an organization, these two objectives are to be balanced judiciously during implementation of the Transfer policy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Transfer/Placement Guidelines (IRS):2010 is in operation since Feb 2010. The Data Base Cell (DBC) of CBDT made an attempt to evaluate this policy in order to ascertain as to how well this policy serves the Department to achieve its objectives. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Findings: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Choice posting for most of the Direct Recruit Officers is Delhi, Mumbai, Bangalore, Hyderabad and Ahmedabad. More than 80 percent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Most of the CITs preferred Mumbai and Delhi. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Out of 153 request transfers by CITs, only 33 could be considered in 2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ 60 percent of the CIT posts in Kerala are vacant, while there is an excess strength of 2 percent in Mumbai. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The wide gap between Transfer 'Request' vs. ‘Due' leaves very less (or no) scope for fulfillment of Transfer Request of large number of Officers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Manpower shortage in deficient Regions is getting further aggravated </font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What will the Board do? Work with an unhappy workforce? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ex Governor sentenced to 14 years imprisonment - With No Lokpal </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> 9th December 2008, Rod R. Blagojevich, the then Governor of Illinois was arrested by FBI on charges of corruption - trying to sell off the senate seat vacated by President Obama.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On 9th January 2009, the Illinois House of Representatives by a 114-1 vote recommended his impeachment.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Senate unanimously found him guilty and impeached him and on 29 th January 2009, he was removed from office. He was also banned from holding any public office for life.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On December 7th 2011, he was sentenced to 14 years imprisonment in Federal Prison. (And this was a re-trial as the first trial failed). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He will have to share a cell with other inmates; <font color="#FF6633"><strong>he must work an eight-hour-a-day menial job – maybe scrubbing toilets or mopping floors – at just 12 cents an hour. </strong></font></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">He was removed from office within two months of his arrest and is on his way to jail within three years. It is not that there is no corruption in USA, but they are punished. </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">And they don't have a Lok Pal and no Annas, Bedis and Kejriwals either. </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">In
the Din of Lok Pal, Japanese PM's Visit ignored - Kolaveri Di for Guest</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/japan_pm.jpg" alt="Legal Corner Icon" width="300" height="342" hspace="5" border="0" align="left"><strong>AN</strong> important event that happened yesterday, but which unfortunately did not draw any media attention was the visit of the Japanese Prime Minister Yoshiko Noda to India. The media was so tied up with Lok Pal and Anna that they had no time for the Japanese prime Minister. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Nodas were received at the Palam Air Force Station by MoS, External Affairs, Preneet Kaur. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India is the largest recipient of Japanese ODA and more than sixty projects are under implementation with Japanese loan assistance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the last India-Japan Summit, the Comprehensive Economic Partnership Agreement (CEPA) has been signed in February this year and has been operationalized on 1st August, 2011 [Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12868" target="_blank">DDT 1664</a> and <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12877" target="_blank">1665</a></strong>]. The agreement which covers a vast gamut of trade, services, investment, intellectual property rights, <strong>Customs</strong> and other trade related issues signifies the economic alignment of two of the largest economies in Asia and is expected to lead to a marked increase in business and economic ties. Bilateral trade has shown a robust increase of 24 per cent during the period January-September this year over the corresponding period of last year, and it has reached USD 13.2 billion during that period. Currently, more than 800 Japanese companies operate in India. In 2010-11 Japanese FDI totaled USD 3.62 billion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <a href="http://www.youtube.com/watch?v=YR12Z8f1Dh8" target="_blank"><strong>Kolaveri Di</strong> </a>Song icon Dhanush is one of the invitees for the dinner to be hosted by the Indian Prime Minister for the Japanese Prime Minister. The Kolaveri song is a big hit in Japan and maybe the Indian Prime Minister can use Dhanush to extract some good economic deals from the Japanese PM with Kolaveri . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dhanush is Tamil Super Star Rajinkant's Son-in Law and some say if Rajnikant had sung the Kolaveri , it would have become the National Anthem! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A link to the <a href="http://www.youtube.com/watch?v=NfprwzgHDtE" target="_blank"><strong>Kolaveri </strong></a>dance by the Japanese. </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">Customs</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Re-export - Drawback claimed 22 days after statutory six months - Delay condoned - Refund ordered: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> High Court was satisfied that there were reasons beyond the control of the petitioner. It is a case where delay should be condoned. Accordingly, High Court issued a writ of certiorari and quashed and mandamus is issued to make payment of Rs. 18,74,035/-. In case the aforesaid amount has been recovered by adjustment, the said adjustment will be treated as null and void. If any refund payment is to be made, the same will be made within a period of four weeks from the date copy of this order is received. </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 obtains FIPB approval for prospecting diamonds, it can be said that its commercial operation began with prospecting activities without mining activities, and it is eligible to claim expenditure - YES, rules ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee companies in India were all the subsidiaries of De Beers Mauritius Ltd, which had now merged and were known as De Beers India Private Limited. Each of the companies had commenced its operations in India after approval received from the Foreign Investment Promotion Board (FIPB) in October 1996, with reference to prospecting and mining of diamonds and other minerals (except coal and iron ore). The assessee was also granted permission by the Ministry of Industry for diamond prospecting. Consequently, the assessee obtained further permissions from the various state governments including that from the government of Andhra Pradesh for diamond prospecting in various areas of different districts in the state. According to the assessee, as its main activity was exploration and prospecting for diamonds, it had commenced its business operations since being incorporated and having obtained permission from the FIPB. Even though the mining activity had not commenced, its business of prospecting had as the assessee had undertaken prospecting activities during the year. </font></p>
<p><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">Garments
stitched out of fabrics bought or brought by customers – Though
process amounts to manufacture and goods are marketable, manufacturer
is not liable to pay duty: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Appellants
were engaged in the manufacture of readymade garments with their brand
name, and also stitching garments out of fabric bought by customers from
their shop or brought by the customers from outside. The Appellants were
paying excise duty on readymade garments which they got manufactured on
job work basis by supplying raw materials to their job workers.</font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements</font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p><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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