TIOL-DDT 1797 · 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><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14276"><img src="http://www.taxindiaonline.com/RC2/image/ddt/ddt_1794.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1797 </font><br> 16.02.2012 <br> Thursday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Time bound Customs clearance of Cargo - Disobedient Field - Board is again Serious! </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHAT</strong> does the Central Board of Excise and Customs (CBEC for short) do when its instructions are blatantly violated by the field officers? It takes a serious view. And what happens if the disobedience continues? Board will again take a serious view. And what happens when nobody bothers about the view of the Board – serious or silly? Board forgets it! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More than ten years ago in Circular No. 42/2001 dated 31st July, 2001, Board had impressed upon the need for fast clearance by Customs to avoid unnecessary demurrage and difficulties to importers and maybe the liability on Customs. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Despite clear guidelines issued by the Board and reiterated from time to time, it has come to notice of the Board that these guidelines are not being complied with by the field formations. These avoidable detentions result into mounting demurrages in most of the cases. Recently in a case, department has been asked to pay substantial demurrage charges pursuant to a High Court order, which is being contested. (Perhaps <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=27&filename=legal/hc/2011/2011-TIOL-723-HC-P-H-CUS.htm" target="_blank"><font size="1">2011-TIOL-723-HC-P&H-CUS</font></a>, <font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=27&filename=legal/hc/2011/2011-TIOL-763-HC-AHM-CUS.htm" target="_blank">2011-TIOL-763-HC-AHM-CUS</a></font></strong>) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has taken a serious note of it and desires that special care will have to be taken by field formations to avoid any unwarranted delays, which may lead to possible demurrage liability on Customs field formation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board reiterates that where for justifiable reasons in certain types of exceptional situations, release of consignments is not considered advisable even on provisional basis, options must be given by sending intimation in writing to the importers / exporters or their agents to keep the goods in warehouses in terms of Section 49 of the Customs Act. It should be made clear that if the facility is not availed and the goods incur any demurrage, the importers/exporters will be wholly responsible for its payments. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Non-compliance of the Board's instructions and in cases of consignments being detained by Customs in routine disputes / cases without valid grounds causing demurrages would be viewed seriously and accountability be fixed on erring officer.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Everybody knows that ‘Board taking a serious view' is a big joke and nothing will ever happen with such serious views. The field officers will only have a little more contempt for the Board and its seriousness. Perhaps, even the Board is not really serious about its serious view. Has the Board ever taken action against any officer for blatant disobedience of Board's instructions? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At least transfer a few disobedient officers to Timbuktu and inform the rest of the tribe that these were transferred for disobedience of Board instructions and don't entertain any request from them for the next three years. If the Board can do this, it will suddenly find that its instructions are eagerly followed. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=27&filename=legal/hc/2012/2012-TIOL-89-HC-MAD-CUS.htm" target="_blank">2012-TIOL-89-HC-MAD-CUS </a></font></font></strong></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2012/instruction12_002.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No.450/160/2011-Cus.IV, Dated: February 13, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Minimum Export Price of Onions </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended Notification No. 94(RE – 2010)/2009-2014 dated 11.01.2012 read with Notification No 75(RE – 2010)/2009-2014 dated 20.09.2011. The Minimum Export Price (MEP) of all varieties of onions except Bangalore Rose Onions and Krishnapuram Onions will be USD 125 per Metric Ton F.O.B. It was USD 150 per Metric Ton as notified on 11.01.2012. For Bangalore Rose Onions and Krishnapuram Onions it will continue to be USD 250 per MT F.O.B. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not096.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No.96 (RE–2010)/2009-2014,Dated: February 15, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Purchase of Immovable Property in India - Reporting requirement </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India), Regulations, 2000, when a person resident outside India, who has established in India in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, a branch, office or other place of business, excluding a liaison office, acquires any immovable property in India in accordance with the provision of said regulation, the said person has to file with the Reserve Bank a declaration in the form IPI , not later than ninety days from the date of such acquisition. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This Form is now amended for more clarity. It is clarified that the regulations do not prescribe any reporting requirements for transactions where a person resident outside India who is a citizen of India or a Person of Indian Origin (PIO) as defined in Regulation 2(c) of Notification No. FEMA 21/2000-RB, acquire/s immovable property in India. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir079.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI AP (DIR Series) Circular No. 79, Dated: February 15, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of Goods and Services - Simplification and Revision of Softex Procedure </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DESIGNATED</strong> officials of the Ministry of Information Technology, Government of India at the Software Technology Parks of India (STPIs) or at Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Economic Zones(SEZs), had been authorised to certify exports declared through SOFTEX Forms. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Considering the spurt in the volume of software exports from India in recent times, the complexity of work contracts involved, the voluminous nature of contract agreements and the duration involved in execution of each contract as well as the time-consuming process involved in the certification of SOFTEX forms, the matter was revisited and a revised procedure, has now been finalised in consultation with the stakeholders involved. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the revised procedure, a software exporter, whose annual turnover is at least Rs. 1000 crore or who files at least 600 SOFTEX forms annually, will be eligible to submit a statement in excel format, giving all particulars alongwith quadruplicate set of SOFTEX form to the nearest STPI. STPI will then verify the details and decide on a percentage sample check of the documents in detail. Software companies will submit all the documents on demand to STPI within 30 days of their advice or any reasonable/extended time at the discretion of the Director, STPI, at the request from the exporter. STPI will thus certify the statement and SOFTEX forms in bulk on the “Top Sheet” regarding the values etc. and will thereafter forward the first copy of the revised SOFTEX format to the <strong><em>concerned </em></strong>Regional Office of RBI, the duplicate copy alongwith bulk statement in excel format to Authorised Dealers for negotiation / collection / settlement, the third copy to the exporter and the last copy will be retained by STPI for its own record. Under the revised procedure, the exporters, however, will have to provide information about all the invoices including the ones lesser than USD 25000, in the bulk statement in excel format. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The new procedure will be effective initially in STPI Bangalore, Hyderabad, Chennai, Pune and Mumbai with effect from April 01, 2012. Based on the success in these centres, it would be adopted by all the STPIs and SEZ/ EPZ/ 100% EOU/ EHTP/ DTA units by June 2012. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir0808.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI AP (DIR Series) Circular No. 80, Dated: February 15, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The tale of tiger is not simply about conservation, it is also about crime </font></strong></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/web_tiger_seminar.jpg" alt="Legal Corner Icon" width="248" height="334" hspace="5" border="0" align="center"></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>POLICE</strong> and Customs heads from 13 Asian countries agreed to tighten controls and improve cross-border cooperation to curb the illegal smuggling of tigers and other critically endangered species. The accord came at the conclusion of the two-day international “Heads of Police and Customs Seminar on Tiger Crime”, which brought together top Police and Customs officers from countries that still have tigers living in the wild. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hosted by the International Consortium on Combating Wildlife Crime (ICCWC), and organized by INTERPOL, in cooperation with the United Nations Office on Drugs and Crime (UNODC) and the World Customs Organization (WCO), and with technical and financial support from the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Secretariat and the World Bank, the Tiger Seminar objective was for participants to agree on a robust set of law enforcement-based solutions to protect tigers and other rare and highly threatened species. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The UNDOC Executive Director Yury Fedotov said, <strong><font color="#FF6633">“<em>The tale of the tiger is not simply about conservation, it is also about crime, it concerns transnational organized crime, high profits, widespread corruption, money laundering, fraud, counterfeiting, and violence.” </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kunio Mikuriya, WCO Secretary General said, <em>“The global Customs community is firmly committed to working closely with its partners to stop criminal trafficking in endangered species and other environment sensitive goods, by ensuring more vigilant and effective border enforcement among a range of measures.</em>” </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"> – Friday'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">FEMA/FERA </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Delay of 570 days in filing an appeal under Section 35 of FEMA, 1999 cannot be condoned: HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AGAINST</strong> an order passed by the Appellate Tribunal, an appeal lies before the High Court under Section 35 of the FEMA, 1999. Section 35 stipulates that the appeal has to be filed within sixty days from the date of communication of the decision of the Appellate Tribunal. Under the proviso to Section 35, the High Court is empowered upon sufficient cause being shown to condone a delay not exceeding a period of sixty days. In other words, no appeal can be filed beyond the outer limit of 120 days from the date of communication of the order of the Tribunal, before the High Court. The High Court does not have any jurisdiction to condone a delay in excess of sixty days beyond the period of sixty days prescribed for the filing of an appeal. The delay of 570 days in filing an appeal before this Court under Section 35 of the FEMA, 1999 cannot be condoned. </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 pays certain sum to developer of property which assessee was occupying as tenant, for repair and reconstruction, such expenditure is to be construed as capital in nature - NO, revenue expenditure: HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the present case, the assessee had not incurred any expenditure of a capital nature. The expenditure did not result in the acquisition of a capital asset by the assessee. The assessee continued as before to be a tenant in respect of the premises. By contributing an amount of Rs.1.50 Crores towards the reconstruction or as the case may be renovation of the existing structure, the assessee obtained a commercial advantage of securing tenancy of an equivalent area of premises on the same rent as before. Since there was no acquisition of a capital asset and the occupation of the assessee continued in the character of a tenancy, the expenditure could not be regarded as being of a capital nature. </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">Appellant already paid Service Tax of about six Crores - Pre-deposit of 25 Lakhs ordered: HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Tribunal observed that it was not concerned whether the Appellants had or not charged/collected service tax since it was their duty to file returns and pay service tax on time. The Tribunal did take notice of the fact that the Appellants had admitted their service tax liability of almost Rs. 5.71 crores. Taking note of the fact that the Appellants had paid an amount of Rs. 7 lakhs towards penalty, they were further directed to pay Rs. 50 lakhs towards the penalty. The Appellant shall deposit an amount of Rs. 25 lakhs within a period of four weeks instead and in substitution of the direction issued by the Tribunal. In the event, the Appellant fails to make deposit, as directed, necessary consequences under the law shall ensue. </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"><strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p> </body> </html>