TIOL-DDT 1806 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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></font><font color="#663399" size="3">TIOL-DDT 1806 </font><br>
01.03.2012 <br>
Thursday </strong></font></p>
<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value increased for Gold and Silver </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </strong>has decreased the tariff values of Brass Scrap (all grades) from USD 4176 to USD 4143 and changed the tariff value of poppy seeds from USD 2439 to 2439. [<strong><font color="#FF6633">Actually there is no change but the Government Notification says it is amended from 2439 to 2439!</font></strong>] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tariff Value of Gold is increased from 556 to 573 USD per 10 grams and the tariff value of silver is increased from 1067 to 1145 per kilogram. Tariff value was fixed for gold and silver only recently by Notification No. 2/2012-Cus(NT) dated 13th January 2012. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no change in the tariff value of other items. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_015.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 15/2012-CUS (N.T.), Dated : February 29, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">'</font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Handmade' will include ‘Braided' </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SL</strong>. No. 11 of Table-2 in Appendix 37D of Hand Book of Procedure, Vol.I is Handmade carpets under the Focus Product Scheme. Handmade is defined to include Hand-Made, Hand-knotted, Hand-Tufted, Hand-Woven and Handloom. Now ‘Braided' is also included. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn101.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 101(RE-2010)/2009-14, Dated: February 29, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Conditionality for Import of Erythromycin Thiocyanate under Advance Authorization Scheme - Clarification </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>POLICY</strong> Circular No. 9 dated 30.6.2003 and Policy Circular No 15 dated 17.9.2003 prescribe exemption from the registration procedure for imports of approved and unapproved drugs under Advance Authorisation. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue: whether Erythromycin Thiocyanate falls under the purview of these Circulars or not. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is clarified that the import of Erythromycin Thiocyanate for manufacturing and export of ‘Erythromycin Salts' under Advance Authorisation Scheme is exempt from the conditionalities imposed under Policy Circular No. 9 dated 30.6.2003 and Policy Circular No. 15 dated 17.9.2003. In such cases, only the normal conditions of Advance Authorisation will apply. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case the import of Erythromycin Thiocyanate is for veterinary medicinal use or for manufacturing of any drug under Advance Authorisation, then the conditions of the Policy Circulars No. 9 dated 30.6.2003 and No. 15 dated 17.9.2003 shall apply, in addition to normal condition for all Advance Authorisations. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2010/dgft10cir055.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 55 (RE-2010) /2009-2014, Dated: February 29, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Applications seeking relaxation of Foreign Trade Policy/Procedure are to be filed 'on-line' on DGFT's server </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>STEPS</strong> to be followed to file the ‘on-line' application: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The 'ecom application' icon may be clicked on DGFT's website to access the PRC ‘on-line' facility. This icon is available along with the other DGFT ‘on-line' schemes and will operate in the similar fashion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ An ecom number will be generated on initiation of the application for request to PRC. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Applicants should fill up the appropriate details depending upon the nature of the request through a structured data entry scheme. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The completed application be then submitted by clicking the “submit” e-button. The application will be automatically transmitted to DGFT Hqrs and a file number will be generated and communicated to the applicant through DGFT's website. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There could be some supportive documents which an applicant would like to submit. These can be scanned and uploaded. The system has provision to upload up to 5 documents of 300 KB each in gif, html and pdf formats. Further, if required, additional documents may also be submitted by post to 'The Foreign Trade Development Officer (PRC Section)', 5th Floor, Udyog Bhawan, New Delhi-110011 or can be scanned and e-mailed to <a href="mailto:prc@nic.in"><strong>prc@nic.in</strong> </a>., quoting the reference number as at (iv) above. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ All subsequent status would be available ‘on-line' for viewing. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ‘on-line' filing of PRC requests is optional at present and would become mandatory from a date to be notified later. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2010/dgft10cir056.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 56, Dated: February 29, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">External
Commercial Borrowings (ECB) for Infrastructure within National Manufacturing
Investment Zone (NMIZ) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS </strong>per the guidelines, availing of ECB is permissible for the infrastructure sector, which is defined to include (i) power, (ii) telecommunication, (iii) railways, (iv) road including bridges, (v) sea port and airport, (vi) industrial parks, (vii) urban infrastructure (water supply, sanitation and sewage projects), (viii) mining, refining and exploration and (ix) cold storage or cold room facility, including for farm level pre-cooling, for preservation or storage of agricultural and allied produce, marine products and meat. Developers of SEZ were also allowed to provide such infrastructure facilities within the SEZ. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Keeping in view the infrastructural needs of the proposed National Manufacturing Investment Zones (NMIZs), it has now been decided to allow developers of NMIZ also to avail of ECB under the "<strong>approval route"</strong> for providing infrastructure facilities within the NMIZ. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The modifications to the ECB policy will come into force with immediate effect. All other aspects of the ECB policy, such as, recognised lender, average maturity, all-in-cost, prepayment, refinancing of existing ECB and reporting arrangements shall remain unchanged. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These directions have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir085.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI A. P. (DIR Series) Circular No.85, Dated: February 29, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">National Money Laundering / Financing of Terror Risk Assessment Committee </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government of India had constituted a National Money Laundering / Financing of Terror Risk Assessment Committee to assess money laundering and terror financing risks, a national AML / CFT strategy and institutional framework for AML/CFT in India. Assessment of risk of Money Laundering /Financing of Terrorism helps both the competent authorities and the regulated entities in taking necessary steps for combating ML / FT adopting a risk-based approach. This helps in judicious and efficient allocation of resources and makes the AML/CFT regime more robust. The Committee has made recommendations regarding adoption of a risk-based approach, assessment of risk and putting in place a system which would use that assessment to take steps to effectively counter ML/FT. The recommendations of the Committee have since been accepted by the Government of India and need to be implemented. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, Authorised Persons (APs) should take steps to identify and assess their ML/TF risk for customers, countries and geographical areas as also for products/ services/ transactions/delivery channels. APs should have policies, controls and procedures, duly approved by their boards, in place to effectively manage and mitigate their risk adopting a risk-based approach. As a corollary, APs would be required to adopt enhanced measures for products, services and customers with a medium or high-risk rating. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir086.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI A. P. (DIR Series) Circular No. 86, Dated: February 29, 2012</font></strong></a></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">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Merely because assessee, maybe, by mistake pays duty on exempted goods, does not mean that goods would become goods liable for duty under Act: SC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> sum and substance of the reasoning of the Tribunal appears to be that merely because the assessee has paid the excess duty on those items which he was not supposed to pay in view of the exemption notification dated 1.3.1988 and merely because the assessee has not claimed the refund of the excess duty paid, that amount paid by him under the Notification dated 1.3.1988 requires to be taken for the purpose of computing the aggregate value of the clearances under the notification No.175/86-CE. Merely because the assessee, maybe, by mistake pays duty on the goods which are exempted from such payment, does not mean that the goods would become goods liable for duty under the Act. </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 bank purchases non-convertible debentures at discount and there is actual delivery, loss resulting from such transactions is speculative loss u/s 43(5) and not capital loss - NO, it's capital loss: Madras HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> erstwhile company viz., M/s New Ambadi Investments Private Limited, was merged with M/s New Ambadi Estates Private Limited with effect from 01.04.2006. The said erstwhile company was a private limited company carrying on the business of investments and the relevant assessment year is 1993-1994. For the said assessment year, the assessee filed its return of income on 31.12.1993 admitting the loss of Rs.10,08,121/-. The said return was processed under Section 143(1)(a) of the Income Tax Act on 22.07.1994 and later taken up for scrutiny and notice was issued under Section 143(2) of the Act and the assessment was completed under Section 143(3) of the Act and determined the total taxable income at 1,36,570/-. While computing the taxable income, the assessing officer rejected the contention that the loss at Rs.11,44,692/- claimed by the assessee as capital loss and held that it was only speculative loss under Section 43(5) of the Act and the same cannot be set off against capital gain. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Prosecution - Petitions under Section 482 Cr. P.C. for quashing of Complaint - Powers possessed by High Court under Section 482 of Code are very wide and exercise of inherent powers to quash proceedings is called for only in a case where complaint does not disclose any offence or is frivolous, vexatious or oppressive: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>is trite that when a party approaches High Court for quashing of complaint and summoning order, it is not required to embark upon the sifting of the entire evidence and judge whether the accused is guilty or not. Only consideration at that stage before this Court should be whether there is prima facie indication of involvement of the accused in the case alleged or not. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The role of the petitioners as alleged in the complaint was that apart from preparing belated Bills of Lading, they did not mention the date of taking charge of the goods on the Bills of Lading prepared by them. In some cases, the Bills of Lading have been shown issued three/four months after the date of shipment so as to make the documents negotiable in the Bank under Article 23(ii) and Article 24(ii) of ICC Uniform Customs and Practice for Documentary Credits. Thus, it is alleged that the petitioners have actively connived with M/s Lindt. Exports and M/s High Tech Engineers in manipulating the export date on the documents and getting them negotiated in the Bank, which would have otherwise not been entertained by the Bank. The actions of the petitioners enabled M/s Lindt. Exports and M/s High Tech to negotiate the documents for remittances and claim drawback deceitfully. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><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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