TIOL-DDT 1774 · 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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1774 </font><br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>13.01.2012 <br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Friday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - Filing of applications for DEPB in cases of exports made under "EPCG Shipping Bills" </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>POLICY</strong> Circular No. 47 (RE 2010)/2009-2014 dated 08.11.2011 laid down the procedure to file the DEPB applications for "Free Shipping Bills" for exports of 'Cotton Yarn including Melange Yarn' and 'Cotton'. Representations were received from trade and industry with regard to exports made under the "EPCG Shipping Bills" for "Cotton yarn including Melange yarn" from 01.04.2011 to 04.08.2011 and 'Cotton' from 01.10.2010 to 04.08.2011. During the period, appropriate code for DEPB and EPCG could not be given as DEPB was not available. For the making applications of DEPB in such cases, the following procedure is laid down:- </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>For Exporters: </strong></font></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Hard copy of the application will be submitted to RA along with copy of EPCG Shipping Bill. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. An undertaking that he/she has not availed any duty exemption/neutralisation benefit on the exports made under this Shipping Bill. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>For Regional Authorities (RAs): </strong></font></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The details of shipping bill number and date, EPCG and Customs Authority allowing exports will be given on the DEPB Scrip. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The endorsement that this DEPB has been issued in Manual Mode.</font></p> </blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2010/dgft10cir052.htm" target="_blank"><strong>DGFT Policy Circular No. 52 (RE-2010)/2009-14., Dated: January 12, 2012 </strong></a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - export of 8,300 MTs of sugar to USA under Tariff Rate Quota </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended Public Notice No. 90 (RE-2010)/2009-2014 dated 06.01.2012 to replace ' <em>white sugar </em>' with ' <em>raw cane sugar </em>'. 8,300 MTs of raw cane sugar is permitted to be exported to USA under TRQ by M/s. Indian Sugar Exim Corporation Ltd. It is not white sugar as mentioned in Public Notice No. 90 (RE-2010)/2009-2014 dated 6.1.2012. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn091.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No. 91 (RE-2010)/2009-14., Dated: January 12, 2012 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FEMA - Export of Goods and Services-RBI Clarification</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AUTHORIZED </strong>Dealers are allowed to accept Forwarder's Cargo Reovides that FCR may bceipts (FCR) issued by IATA approved agents, in lieu of bill of lading, for negotiation / collection of shipping documents, in respect of export transactions backed by letters of credit, only if the relative letter of credit specifically provides for negotiation of this document in lieu of bill of lading and also if the relative sale contract with the overseas buyer pre accepted in lieu of bill of lading as a shipping document. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, RBI had decided that authorized dealers may accept Forwarder's Cargo Receipts (FCR) issued by IATA approved agents, in lieu of bill of lading, for negotiation/collection of shipping documents, in respect of export transactions backed by letters of credit, if the relative letter of credit specifically provides for negotiation of this document in lieu of bill of lading even if the relative sale contract with the overseas buyer does not provide for acceptance of FCR as a shipping document, in lieu of bill of lading. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further, authorized dealers may, at their discretion, also accept FCR issued by Shipping companies of repute/IATA approved agents (in lieu of bill of lading), for purchase/discount/collection of shipping documents even in cases, where export transactions are not backed by letters of credit, provided their 'relative sale contract' with overseas buyer provides for acceptance of FCR as a shipping document in lieu of bill of lading. However, the acceptance of such FCR for purchase/discount would purely be the credit decision of the bank concerned who, among others, should satisfy itself about the bona fides of the transaction and the track record of the overseas buyer and the Indian supplier since FCRs are not negotiable documents. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It would be advisable for the exporters to ensure due diligence on the overseas buyer, in such cases. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir065.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AP (DIR Series) Circular No. 65/RBI., Dated: January 12, 2012 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI Files Charge Sheet against ITAT Member </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOW</strong>, we have it officially from the CBI that they have filed a charge sheet against the dishonoured ITAT Member, who was caught red-handed accepting a bribe of Rs. 30 Lakhs from a firm of Lawyers and Chartered Accountants. The CBI investigation revealed that a Lawyers and Chartered Accountant Firm in Kolkata were appearing in income tax matters on behalf of their clients, before the various Income Tax authorities, including the Income Tax Appellate Tribunal, Kolkata where the accused Accountant Member was working. It was further revealed that the Accountant Member has demanded an illegal gratification of Rs.30 lakhs from the Lawyers and Chartered Accountant Firm for undue favours being shown to them by him in the Income Tax matters of various parties represented by the Firm based at Kolkata before the Income Tax Appellate Tribunal, Kolkata (ITAT). They were allegedly acting as a tout to the Member, ITAT and were the middlemen. They allegedly prepared orders on behalf of the Member of ITAT, Kolkata and manipulated orders. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It appears what the CBI has revealed is only the proverbial tip of the iceberg and is not unique to the Kolkata Bench. Such activities are not unheard of in other benches. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7302" target="_blank">DDT 865-15.05 2008 </a>and <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14040" target="_blank">DDT 1772-11.01.2012 </a></font></strong></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise Offices have no System to monitor Show Cause Notices - CAG </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CAG </strong>has noted that Central Excise Commissionerates have no uniform practice of maintaining a centralised record to monitor issue of SCNs and their follow up. Audit found that there was no centralised record of all the cases which required issue of SCN. Once issued, SCNs were monitored through different records such as <strong>335J Register </strong>, Draft SCN Register, SCN movement register, Show Cause Notice issue register etc. Consequently, there was a monitoring system once SCNs were issued but nothing to ensure that SCNs had been issued in every case of detection of non-levy, short-levy etc. wherever required. Since there was no centralised record, CAG had to restrict the examination to ascertaining whether SCNs were being issued in all cases, as required by the instructions of the Board, in respect of the observations raised by audit parties (CERA) of the CAG during 2008-09. Audit found instances where SCNs were not issued and reasons for not doing so were not found on record. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Call Book Cases not recalled </strong>: CAG found that several cases have been dumped in the call book and several not recalled. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>What is a Call Book </strong>? Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10081" target="_blank"><strong>DDT 1257-14.12.2009 </strong></a></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>335 J Register </strong>: This is an archaic register prescribed under the Tobacco Excise Manual, which was buried in 1979. Departmental officers still maintain this register and senior learned officers inspecting lower formations religiously mention that 335J register is maintained. Nobody has ever asked anyone as to why they are maintaining a register, which was killed 33 years ago!</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 align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"></font>Service Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>C&F Agent - clearing & forwarding services can be considered as being rendered, if both the activities are connected and simultaneously done: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>expressions "directly or indirectly" and "in any manner" occurring in the definition of "clearing and forwarding agent" cannot be isolated from the activity of clearing and forwarding operations. A person may undertake to provide service of procurement of orders as agent of the principal without agreeing to provide services of clearing and forwarding of the goods. Clearing and forwarding has a very specific connotation in the context of movement of goods from the supplier to their destination and agents undertaking clearing and forwarding operations may never have been concerned with procurement of orders for the goods which are cleared and forwarded <em>. </em></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether merely because AO fails to delete irrelevant expressions in penalty notice, entire proceedings are to be construed as vitiated - NO, rules ITAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> whole idea behind the show cause notice is to make assessee aware that penalty provisions are going to be invoked and assessee has a right to offer an explanation. Therefore, merely non-striking of a particular column cannot lead to a conclusion that penalty needs to be deleted merely because of such failure. In any case, in this case though the column "concealment and filing of inaccurate particulars" was merely ticked without striking of either concealment or inaccurate particulars but para-3 of penalty order makes it clear that the action was initiated only for filing inaccurate particulars of income. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Capital goods cleared after use cannot be considered as cleared "as such": CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> applicants have paid the duty on the transaction value at which the capital goods were sold and in case where the capital goods were transferred to other units duty has been paid on the depreciated value. If the capital goods are cleared after use then it cannot be considered as cleared 'as such'. Therefore, demand of duty equal to the credit availed is not sustainable. The applicants have a strong prima facie case. Therefore, pre-deposit of duty, interest and penalty is waived and recovery thereof stayed during the pendency of the appeal. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000" size="5">Happy Sankranti </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Monday for the judgements </font></strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more DDT </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend. </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"><a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p> </body> </html>