TIOL-DDT 1839 · 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 1839 </font><br>
19.04.2012 <br>
Thursday</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise - J&K Exemption - Board Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> No. 56/2002-CE dated 14.11.2002 provides for exemption from the duty of excise to specified goods cleared from industrial units in the State of Jammu & Kashmir to the extent of duty paid in cash by way of a refund mechanism, for a period of ten years from the date of publication of the notification or from the date of commencement of commercial production, whichever is later. The exemption is available to new units, which have commenced commercial production on or after 14.06.2002, as well as existing units, which have undertaken substantial expansion or have made new investments for employment generation on or after 14.06.2002. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Doubt: </strong>Whether in the case of existing units undertaking substantial expansion, the 10 year exemption period has to be computed from the date of commencement of initial commercial production or from the date of commencement of commercial production from the expanded capacity. Some field formations have taken a view that in the case of existing units, which had commenced commercial production prior to 14.06.2002, the exemption period of ten years would be computed from the date of publication of notification, i.e., 14.11.2002, irrespective of the fact that such units had undertaken substantial expansion after 14.11.2002. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Board's Clarification: </strong>Exemption period of ten years is to be computed from the date of publication of the notification when a new unit commences commercial production or an existing unit undertakes substantial expansion and commences commercial production from such expanded capacity during the period from 14.06.2002 to 14.11.2002. However, if a new unit commences commercial production or an existing unit undertakes substantial expansion and commences commercial production from such expanded capacity after the date of publication of the notification, i.e., 14.11.2002, the ten year exemption period is to be computed from the date of commencement of commercial production in the case of new units and from the date of commencement of commercial production from the expanded capacity in the case of existing units. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the field will obey the Board in this clarification favourable to the assessees. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2012/excircular965.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 965/08/2012-CX., Dated: April 17, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cadre Review in CBEC - Still a Mirage? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CUSTOMS </strong>and Central Excise officers all over the country are exhilarated with the news that cadre review is cleared by DOPT and is on its way up – promotions are near to reality. But are they? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11678" target="_blank">DDT 1488 – 16.11.2010</a>,</strong> that is 17 months back, discussed the issue and said, <em>Anyway the officers have enough material to discuss about in the next couple of years !!</em> They can continue to discuss. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are informed by reliable sources that CBEC and DOPT have not agreed on the number of posts and so they have decided to refer the matter to a Committee of Secretaries. So, the proposals from both CBEC and DOPT will go to the CoS and the Committee will perhaps hear all sides and do arbitration. It is understood that the DOPT has slashed the numbers proposed by the CBEC. CBEC wanted more than 3500 posts of Assistant Commissioner/Deputy Commissioner and what DOPT has conceded is around 2000. They wanted 18 posts of Principal Chief Commissioner in the super scale of Rs. 80000/-; they got 11. They wanted about 170 new Commissioner posts; they are getting 45.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Officers can continue to discuss for some more time! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the meanwhile, it is learnt that the CBEC is going ahead with the promotion to the posts of Commissioners and Assistant Commissioners, as per the existing seniority lists – the Supreme Court order does not seem to have any impact at least in the immediate promotions. At least some officers can hopefully get that elusive promotion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Minister of State for Finance Palanimanickam, said yesterday in Tiruchi that both the Income Tax and Central Excise departments have been facing shortage of manpower. He said that steps are being taken for granting promotions to the Staff. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cadre Review exercises started about three years ago, and they are still nowhere! </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">IRS Officer's Compulsory Retirement Quashed </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HE</strong> is a 1977 batch officer of the IRS (Income Tax). He earned his promotions to the posts of Deputy Commissioner, Joint Commissioner, Additional Commissioner and then Commissioner, Income Tax, which undoubtedly implied that he had been assessed as a meritorious officer, suitable and fit for the said posts. The next promotion was to the post of Chief Commissioner or Director General of Income Tax. However, he was issued a preliminary show cause notice dated 7th November, 2000 seeking an explanation regarding alleged lapses/ irregularities in eight cases, out of which six cases were completed by him as Deputy Commissioner (Assessment/Assessing Officer) and remaining two, were pertaining to the period when he was the Deputy Commissioner-in-charge of the Range. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After protracted departmental proceedings, and while the matter was pending in the High Court, the Department compulsorily retired him. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Administrative Tribunal set aside the punishment of compulsory retirement and ordered reinstatement of the officer, with costs of Rs. 10,000/- for putting him through such a long agonizing departmental enquiry and that too for assessment orders passed by him in his quasi judicial capacity. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department has challenged the orders of the Tribunal. The Delhi High Court yesterday upheld the orders of the Tribunal fully and imposed further costs of Rs. 30,000/-. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you today, this order of the High Court delivered yesterday. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=78&filename=legal/hc/2012/2012-TIOL-284-HC-DEL-SERVICE.htm" target="_blank">Click here</a></strong> for the Judgement </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Changing Times of Global Trade </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> times they are a changing. This is true in terms of technology, geopolitics and social norms. It's true as well in terms of world trade. Factors large and small are changing the way we trade in the 21st century. Certainly, trade retains its central place in the global economy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Who would have imagined that China, on entering the WTO in 2001, would emerge just ten years later as the world's largest exporter with merchandise exports of USD 1.9 trillion? Who could have foreseen the travails of the Doha Round negotiations that brought us to the brink of success before we reached an impasse over an issue as old as trade itself - the exchange of manufactured goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even the way we trade has changed immensely. In the past, goods were made in Mexico, or Mauritius or Malaysia. Today, goods are made in the world. The expansion of global value chains means that most products are assembled with inputs from many countries. Products cross borders frequently during various stages of assembly. Trade in intermediate goods is the most dynamic sector of international trade growing at a rate of 6 per cent per year. And this trade is taking place in high-technology sectors which generate well-paying jobs. Twenty years ago, the import content of exports was 20 per cent. Today, it is around 40 per cent. More than half of global manufactured exports are components which are inputs to other as yet unfinished goods. In Asia, the figure is more than 70 per cent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Savvy governments are aware that trade policies which encourage enterprises - particularly small and medium-sized enterprises - to participate in global value chains make it easier to attract foreign investors looking to build local production facilities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Time is money. The longer a shipment is held up in port or at customs, the more it costs the exporter and the importer. Every extra day required to ship goods reduces trade by 1 per cent. On an average sea voyage of 20 days, one extra day at sea results in a 4.5 per cent drop in agriculture trade between any two trading partners. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A shipment requiring 34 documents to move through the port and onto a truck will cost you more than one that requires five documents. You know that having to pay a myriad of different agencies to ensure safe passage of your shipment is cause to reconsider doing business in a particular country. A WTO agreement, backed by the WTO's dispute settlement system, would harmonize and update the rules on customs fees, documentation and the treatment of goods in transit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"<strong>Because things are the way they are,"</strong> said Bertolt Brecht, "<strong>things will not stay the way they are</strong>". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[<em>Excerpts from the speech of WTO DG, Pascal Lamy at Minnesota on 17th April 2012.</em>] </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">WTO - India files dispute against US </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> 12 April 2012, India requested consultations with the US under the dispute settlement system of WTO, concerning the latter's countervailing duties on certain steel products from India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The United States conducted countervailing duty (the "CVD") investigation (No. C – 533 – 821) and levied countervailing duties on Certain Hot Rolled Carbon Steel Flat Products exported from India. The provisional measures were imposed with effect from 20 April 2001 and the final measures were imposed effective from 3 December 2001. The United States concluded a sunset review in 2007 and continued the duties for a further period of five years. The United States also conducted several Administrative Reviews (the "AR") to determine the CVD rate/s to be applied on the imports made during the relevant AR period. The measures continue to be in force. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India's request covers the countervailing duties and other measures, if any, applied on the subject goods from India through any notice, determination, decision memorandum, order or any other instrument issued by the United States from time to time in connection with case No.C-533-821. The measures covered in this request also include certain provisions of the United States Tariff Act, 1930 and the United States Code of Federal Regulations, Title 19 – Customs duties, Volume 3, Chapter III, Part 351 ("19 CFR 351") that are "as such" inconsistent with the provisions of the ASCM. The request also covers all the amendments, replacements, implementing acts or any other related measure in connection with the measures referred. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India challenges the findings of USA on provision of sale of High Grade Iron Ore for Less Than Adequate Remuneration; determination that the Government of India, through the NMDC, provided a financial contribution through sale of iron ore fines and lumps; Captive Mining of Iron Ore; Captive Mining of Coal; operation of the Steel Development Fund (SDF); the injury determination. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CII wants Democracy Cess </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CONFEDERATION</strong> of Indian Industry's (CII) Task Force on Electoral Reforms has recommended that all income tax payers in the country including corporates, traders, individuals, institutions, organizations, trusts and societies should give 0.2 per cent of their income tax for funding political activity and elections. The cess should be paid directly by the tax payer by cheque into the account of any political party of his or her choice recognized by the Election Commission. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DIT is now DeitY </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Department of Information Technology, DIT (Ministry of Communications and Information Technology) has been renamed Department of Electronics and Information Technology, DeitY. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The formal naming ceremony is to be held at Electronics Niketan, New Delhi today at 4.15 pm by the Union Minister of Communications and IT, Kapil Sibal. </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 align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Transportation of empty container to factory and after stuffing sent to port of export - CENVAT Credit of Goods transport services admissible: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant is engaged in the manufacture of excisable goods namely Viscose Filament Yarn and chemicals and has availed the CENVAT Credit in respect of goods transport services for transportation of empty container to the appellant's factory at Shahad for stuffing of export final products and re-transportation of stuffed container to the port of the export. The department was of the view that CENVAT credit in respect of GTA services in bringing empty container to the factory and after stuffing, being sent to the port of export was not admissible to the assessee. </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="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether when land is held by assessee as stock-in-trade, provisions of Sec 50C will not apply to profits arising on sale of plots - YES, rules HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee, a private limited company, is engaged in the business of real estate and construction. It filed its return of the income declaring the total income at Rs.38,79,703/-. In the assessment proceedings u/s 143(2) of the Act, the Assessee sold plots for a total sum of Rs.79,84,200/-. The AO by his order dated 12th of December, 2008 treated the above sale transaction as sale of capital assets and accordingly determined the deemed capital gain from sale of plots as per the provisions of section 50C of the Act. </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">Rebate - Claim has to be filed within one year: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION</strong> 11B stipulates that any person claiming refund of any duty of excise and interest may make an application for refund to the Assistant Commissioner of Central Excise, or as the case may be, to the Deputy Commissioner of Central Excise before the expiry of one year from the relevant date in such form and manner as may be prescribed and that application shall be accompanied by such documentary or other evidence establishing, inter alia, the duty paid character of the goods. Since the statutory provision for refund in Section 11B brings within its purview, a rebate of excise duty on goods exported out of India or materials used in the manufacture of such goods, Rule 18 cannot be read independent of the requirement of limitation prescribed in Section 11B. </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>
<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>
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