TIOL-DDT 1813 · the untouched capture
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<p><font color="#663399" size="3"><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 face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 1813</font></strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
13.03.2012 <br>
Tuesday</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ban On Export of Cotton Lifted - But with Registration </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Cotton controversy is getting murkier. As reported in these columns yesterday, the Government finally withdrew the ban on export of cotton, but under certain conditions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the export of cotton is <em><strong>free</strong></em> as per the export policy, but there is a restriction of prior registration of contracts with DGFT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Time to export (validity of RC) was “30 days from issue of RC”. Because of prohibition imposed by Notification No. 102 (RE-2010)/2009-14 dated 05.03.2012, this time limit may require to be extended in respect of those RCs, that were valid as on 05.03.2012 and for which LEOs are yet to be issued & exports completed. All RCs would need to be submitted to DGFT for scrutiny and revalidation. Exports can be effected only after RCs are revalidated. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Issue
of new RCs stands suspended until further orders </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
lifting of the ban was not really welcomed. Gujarat chief minister Narendra
Modi called it "cheating the farmers of the country". Modi added, “The notification
says that the Centre will not give any new registration certificates for
export of cotton. Not only that, it would also investigate the export of
the commodity earlier, incorporating a clause that the registration, allowed
earlier, has to be reinvestigated with no time-frame. <strong>This new monitoring
system will open doors to corruption</strong>.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Newspapers in USA reported, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Cotton futures finished lower Monday for the fifth straight session as the market digested the gyrations major producer India has taken on its cotton exports. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Cotton slid early after news that India had lifted its ban on cotton exports. That soon changed when New Delhi said it would ban fresh cotton and allow only quantities that had already been registered for export but have yet shipped. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. India is the world's No. 2 cotton producer and the biggest exporter after the United States. New Delhi had imposed a ban on cotton exports last Monday. The decision was challenged by India's farm minister and the Indian ministers meeting did not immediately decide on the issue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The outlook for cotton futures, though, is bearish given market fundamentals. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. No surprise if cotton prices keep falling and drift below 80 cents in the coming months.</font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not106.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 106/(RE-2010)/2009-14, Dated: March 12, 2012</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Exemption to ATF consumed in Aero Show </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has exempted <em>aviation turbine fuel contained as remnant fuel in the aircraft when they arrive from outside India and which are consumed during an aero show. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is done by amending Notification No. 3/89-Cus dated 09.01.1989. It is really laudable that they could fish out a notification issued 23 years ago that was last amended in 1999. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_008.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 8/2012 - Cus., Dated: March 9, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Theft in Ahmedabad CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LAST</strong> week on Holi Day on March 8, thieves broke into the office of the CESTAT in Ahmedabad and got away with some computers and accessories. It is not known whether valuable data is lost. The CESTAT offices have neither Security personnel nor any CCTV arrangements. It seems the Police have no clue as to who the culprits are. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is time we have better infrastructure for the Tribunal. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Parliament Budget Session 2012 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Budget Session, 2012 of Parliament (10th Session of the Fifteenth Lok Sabha and the 225th Session of the Rajya Sabha) commenced yesterday; the Session is to conclude on Tuesday, the 22nd of May 2012. During this period, the two Houses will adjourn for recess on Friday, the 30th of March 2012, to reassemble on Tuesday, the 24th of April, 2012 to enable the Department–related Parliamentary Standing Committees to examine the Demands for Grants relating to various Ministries/Departments and make their reports to the Houses. The Session will provide 35 sittings – 15 sittings during first part of the Session before recess and 20 sittings during second part of the Session. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The President addressed both Houses of Parliament assembled together at 11.00 a.m. yesterday. The Budget (Railways) for 2012-2013 will be presented to the Lok Sabha on Wednesday, the 14th March, 2012 immediately after Question Hour. The Economic Survey of India will be laid in the Parliament on Thursday, the 15th March 2012. The Budget (General) for 2012 – 2013 will be presented at 11.00 a.m. on Friday, the 16th March, 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some of the important Bills to come up before Parliament are: </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I – Bills for Introduction</font></strong></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Legal Metrology (Amendment) Bill, 2012. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Competition (Amendment) Bill, 2012. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Constitution (Amendment) Bill, 2012. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Piracy Bill, 2012. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Public Debt Management Agency of India Bill, 2012. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Indecent Representation of Women (Prohibition) Amendment Bill, 2012. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Constitution (Scheduled Castes) Orders (Amendment) Bill, 2012. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Rights of Persons with Disabilities Bill, 2012. </font></p></td>
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<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">II – Bill for Introduction, Consideration and Passing </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Finance Bill, 2012. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">III – Bills for Consideration and Passing </font></strong></p>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Lokpal and Lokayuktas Bill, 2011 <strong>as passed by Lok Sabha.</strong> </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Whistle Blowers Protection Bill, 2011 <strong>as passed by Lok Sabha.</strong></font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Judicial Standards and Accountability Bill, 2010. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Constitution (One Hundred and Fourteenth Amendment) Bill, 2010. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The National Institute of Technology (Amendment) Bill, 2011 <strong>as passed by Lok Sabha. </strong></font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Copyright (Amendment) Bill, 2010. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Constitution (One Hundred and Eighth Amendment) Bill, 2010 - as <strong>passed by Rajya Sabha</strong> . </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Right of Citizens for Time Bound Delivery of Goods and Services and Redressal of Their Grievances Bill, 2011. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Prevention of Bribery of Foreign Public Officials and Officials of Public International Organizations Bill, 2011. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Railway Property (Unlawful Possession) Amendment Bill, 2011 - <strong>as passed by Rajya Sabha. </strong></font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Motor Vehicles (Amendment) Bill, 2007. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Protection of Children from Sexual Offences Bill, 2011. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Protection of Women Against Sexual Harassment at Workplace Bill, 2010. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Right of Children to Free and Compulsory Education (Amendment) Bill, 2010. </font></p></td>
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</table>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Budget 2012 With TIOL </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Budget
is to be presented on March 16. We will analyse every tax bit of the budget
incisively. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please send us your comments on the Budget as soon as you can. Share your Budget reactions through <strong>TIOL</strong>.</font></p>
<p align="center"><strong><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"> – Wednesday's cases</font></strong></font></strong></font></strong></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">There is no time limit under rule 16 of CER, 2002 for availing CENVAT Credit on goods returned to factory - appeal allowed with consequential relief: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> going through the provisions of Rule 16 of the Central Excise Rules, 2002, the appellant is entitled to take credit of duty paid by him at the time of clearance of the goods received back by him as defective. There is no time limit under rule 16 ibid. Therefore, the contention of the learned AR is not acceptable. As the appellant are entitled to take credit as per rule 16 of the Central Excise Rules, 2002, therefore, they have taken credit correctly. </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 assessee is liable to capital gains tax on relinquishment of right to allotment of shares in lieu of advances paid - YES, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> Company is engaged in the business of manufacturing and sale of bulk drugs. While completing the assessment, the assessing officer held that Rs.10 crores received as compensation for foregoing right to acquire the shares of Krishnapatnam Port Co. Ltd., [KPCL] as short term capital gain instead of assessee's claim that it was not taxable since the cost of acquisition of such right was to be taken notionally as 'NIL'. The assessee company also claimed that right to acquire equity shares was not a capital asset as per section 2(47) of the Act and compensation received for waiver of such right was a capital receipt and the same was not taxable. </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">IPO financing fees, Processing fees and Recovery of common expenses - prima facie not leviable to Service Tax: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PRIMA</strong> facie, the activity undertaken by the applicants is for the investments in the bank assigned by the IPO issuing company. The amount of interest income which the bank shares with the applicant is not because applicant is promoting or marketing of any of the services provided by the bank. Therefore, the applicants are not liable to pay service tax in this category and made out a case for 100% waiver of pre-deposit. </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 align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day.</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>
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