TIOL-DDT 1810 · 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 1810 </font><br>
07.03.2012 <br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ban on Export of Cotton - CBEC Instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> Notification No.102 (RE-2010)/2009-14 dated March 5, 2012 amended Notification no. 74 (RE-2010)/2009-14 dated 12.09.2011 imposing a ban on export of cotton (Tariff code 5201 and 5203). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of this,</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Export of cotton [ITC (HS) Codes 5201 & 5203] has been prohibited till further orders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Transitional arrangements will not be applicable for the export of cotton. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Export against registration certificates already issued will also not be allowed. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Considering the sensitivity of the issue the Board desires that the field formations should strictly monitor the conditions imposed by DGFT in the above notification with immediate effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is also requested to provide the details of all the consignments of export of Cotton handed over to Customs for export as of 2400 hrs on 04.03.2012. This report is required by the Board positively by 07.03.2012. <font color="#663399"><strong>(Today!)</strong></font></font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2012/cuscir12_006.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs
Circular No 6/2012-Customs, Dated: March 6, 2012 </font></strong></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ban
on Export of Cotton - Pawar Objects - Matter before GoM</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DGFT's notification imposing a complete ban on export of cotton including those exports against registration certificates already issued has become a political hot potato with various political parties in cotton farming areas taking up cudgels on behalf of farmers and voicing their concern over the ban. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of this the Ministry of Textiles came up with another clarification explaining the reasons for the ban: </font></p>
<p align="justify"><u><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Comparison of Cotton Supply and Demand 2010-11 and 2011-12 – CAB Forecasts and Actuals </font></em></strong></u></p>
<p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Lac Bales of 170 kgs each </font></em></p>
<table width="450" border="0" align="center" cellpadding="3" cellspacing="0">
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<td valign="top" bordercolor="#709C14"> </td>
<td valign="top" bordercolor="#709C14"><p align="center"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAB Actuals </font></em></strong><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2010-11 </font></em></strong></p>
</td>
<td valign="top"><p align="center"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAB forecast 2011-12 </font></em></strong></p></td>
<td valign="top" bordercolor="#709C14"><p align="center"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revised on basis of Trends till March 2012 </font></em></strong></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SUPPLY</font></em></strong></font></p></td>
<td valign="top" bgcolor="#D3EAA6"> </td>
<td valign="top" bgcolor="#D3EAA6"> </td>
<td valign="top" bgcolor="#D3EAA6"> </td>
</tr>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Opening Stock </font></em></strong></font></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">40.50 </font></em></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">48.30 </font></em></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">32.59 </font></em></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crop </font></em></strong></font></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">339.00 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">345.00 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">340.00 </font></em></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Imports </font></em></strong></font></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.00 </font></em></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.00 </font></em></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.00 </font></em></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Total Supply </font></em></strong></font></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">384.50 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">399.30 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">380.59 </font></em></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DEMAND </font></em></strong></font></p></td>
<td valign="top" bgcolor="#EFF7DF"> </td>
<td valign="top" bgcolor="#EFF7DF"> </td>
<td valign="top" bgcolor="#EFF7DF"> </td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mill/ SSI Consumption </font></em></strong></font></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">245.91 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">240 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">230.00 </font></em></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Non Mill Consumption </font></em></strong></font></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26</font></em></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">240</font></em></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20</font></em></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exports </font></em></strong></font></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">80 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">84 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">94 </font></em></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Total Offtake </font></em></strong></font></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">351.91 </font></em></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">344.00 </font></em></p></td>
<td valign="top" bgcolor="#EFF7DF"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">344.00</font></em></p></td>
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<td valign="top" bgcolor="#709C14"><p><font color="#F40000"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Carry over Stock </font></em></strong></font></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">32.59 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">55.30 </font></em></p></td>
<td valign="top" bgcolor="#D3EAA6"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">36.59 </font></em></p></td>
</tr>
</table>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAB = Cotton Advisory Board </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>But Sharad Pawar was not impressed</strong>. He shot off a letter to the Prime Minister complaining that he was not consulted before the ban and that the ban would hurt millions of farmers. And he had a strong ally in Gujarat CM, Narendra Modi. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ban on export of cotton is not simple economics; it is complicated politics. So, now the matter goes to a Group of Ministers headed by Finance Minister Pranab Mukherjee. The GoM is to meet on Friday to sort out the issue. It is almost sure that the ban will be lifted on Friday.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">‘Publication of Daily List of Imports and Exports Rules' Amended </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>the “Publication of Daily List of Imports and Exports Rules”, for Rule 1, the following rule shall be substituted, namely:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>"1. Short title and commencement.</strong> - (1) These Rules may be called the Publication of Daily Lists of Imports and Exports Rules, <strong>2004</strong>.” (this 2004 was not there in the earlier Rules) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Rule 2, in sub-rule (1), for the words "port functioning", the words "<strong>functioning port</strong>, airport, inland container depot or land customs stations" shall be substituted. <font color="#FF6633"><strong>This had gone unnoticed for 8 years! </strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Unit quantity code</em> is one of the requirements now. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_018.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.18/2012 - Customs (N.T.) ., Dated: March 5, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Filing of Conflicting Returns by Contesting Parties - MCA Clarification </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MINISTRY</strong> of Corporate Affairs has clarified that Circular No. 19 and 20 of 2011 issued on 02.05.2011 that were issued for laying down certain procedure to regulate cases wherein filing of conflicting returns with regard to appointment of Directors or change of Director/Directors have now been superseded. This has been done in the light of some specific cases wherein it appears that either there was lack of consent of the removed/changed director or due process of law was not followed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
Now, in order to avoid such eventualities wherever there is management dispute, the company is required to mandatorily file the attachment relating to cause of cessation along with Form 32 with the ROC concerned irrespective of the ground of cessation, viz., (a) retirement; (b) disqualification; (c) death; (d) resignation; (e) vacation of office u/s 283 or313 or 260; (f) removal u/s 284; (g) withdrawal of nomination by appointing authority or (h) absence of re-appointment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case, any Director is aggrieved with his cessation in the company, he may file complaint in the Investor Complaint Form. On receipt of complaint, the ROC concerned will examine the complaint and mark the company as having ‘management dispute'. Also, the ROC will issue a letter to the company and the parties to settle the matter amicably or get an order/interim order from a Court or Tribunal of competent jurisdiction. Till such dispute is settled, the documents filed by the company and by the contesting groups of Directors will not be approved/registered/recorded and will thus not be available in the registry for public viewing. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBI Arrests its own Lawyer and a Tax Consultant </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE </strong>are three important dramatis personae in this story. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. An advocate who is a special Counsel in the Union Ministry of Law & Justice who is working as Retainer Counsel for CBI at Mumbai. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. A Mumbai based Tax Consultant. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. A politician (who is an accused in a CBI case) </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The politician paid an amount of Rs. 1.25 Crores to the tax consultant to influence CBI officials in an on-going investigation of the Adarsh Housing Society Case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Advocate received an amount of Rs. 25 Lakhs from the Tax consultant as his share of the bribe. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All the three were arrested by the CBI and a Special Court remanded them to police custody till 16th March. They will all spend Holi with the CBI.</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">Service Tax</font></strong></p>
<p><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">No SCN; No OIO; Order in Appeal not valid: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>is a unique case, where no show-cause notice has been issued for proposing the demand against the appellants. Only on a letter of enquiry wherein certain transaction's information asked from the appellant, the said letter was challenged by the appellants before the Commissioner (Appeals). The Commissioner (Appeals) entertained the appeal. As no show-cause notice has been issued and there is no adjudication order, therefore, no appeal was maintainable before the Commissioner (Appeals). </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 provisions of Sec 40(a)(ia) come into play only when assessee claims an expenditure under Ss 30 to 38 - YES, rules ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> is a firm of solicitors and advocates. Its return of income, disclosing total income of Rs 12,67,520, was initially processed under section 143(1)(a) but subsequently, the reassessment proceedings were initiated on 29th June 2009. In the course of reassessment proceedings, the Assessing Officer noted that the assessee made payments, aggregating to Rs. 30,30,140, to various lawyers for their professional services, but has not deducted tax at source under section 194J from the same. The Assessing Officer was of the view that the assessee was under statutory obligation to deduct tax at source under section 194 J, and since the assessee failed to perform this obligation, such payments were to be disallowed under section 40(a)(ia). </font></p>
<p align="justify"><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">Supplementary Invoice - Interest is payable on differential duty: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>APPELLANT </strong>had raised Supplementary Invoices on their OE customers on account of price revision of goods supplied to them with retrospective effect. Appellant paid Excise Duty on such Supplementary Invoice but did not pay interest on such differential duty even though price revision pertained to clearances made much earlier to the date of raising such Supplementary Invoices.</font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is a </font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">HOLI <font color="#FF6633">day </font></font></strong></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Friday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Friday with more<strong> DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a FUNtastic HOLI . </font></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>
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