TIOL-DDT 1847 · 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 1847 </font><br>
01.05.2012 <br>
Tuesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Imports from Japan - Duties Reduced </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS </strong>per Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_069.htm" target="_blank">69/2011-Cus</a></strong> dated 29.07.2011, goods imported from Japan are under concessional rates of duty. Now these rates are further reduced. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_028.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 28/2012-Customs, Dated: April 27, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value - Hike in Brass Scrap; Marginal Change for Gold and Silver </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has increased the tariff values of Brass Scrap (all grades) from USD 4285 to USD 4298 and changed the tariff value of poppy seeds from USD 3680 to 3680. (No Change? But that is what the notification states!) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tariff Value of Gold is decreased from 542 to 541 USD per 10 grams and the tariff value of silver is decreased from 1051 to 1011 per kilogram. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no change in the tariff value of other items. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_039.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 39/2012 - Cus.,(N.T.), Dated: April 30, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Online transmission of DES (Advance Authorization), DFIA and EPCG at ICD CONCOR , Tondiarpet, Chennai, w.e.f. 08.05.2012 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> and when Customs (CBEC) have conveyed their readiness to implement on-line message exchange between Customs and DGFT, Policy Circulars have been issued from time to time by DGFT indicating the names and Port Codes of such Customs Ports where EDI facility would be available. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As of now, there are 85 locations for on-line transmission. Now, <strong>ICD CONCOR, Tondiarpet, Chennai</strong> with LOCODE of IN TVT 6 is added as the 86th location. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) All Shipping Bills issued after 08.05.2012 related to various Foreign Trade Policy Schemes from this port will be transmitted through EDI mode to DGFT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">(a)</font></strong> All authorizations for DES (Advance authorization), DFIA and EPCG in respect of this port issued on or after 08.05.2012 by Regional Authorities would be communicated to Customs on-line. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The (<font color="#FF6633"><strong>a</strong></font>) marked in red above is not my mistake, but that of DGFT! They are emulating their worthy Revenue cousins in callousness. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2010/dgft10cir060.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 60 (RE-2010)/2009-14, Dated: April 30, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Incentives for Exporters </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Government reviews performance of export sectors at regular intervals and takes remedial measures for providing incentives whenever needed to boost exports. Incentives are provided in the form of duty credit scrip under the Foreign Trade Policy schemes such as Focus Product Scheme, Focus Market Scheme and Vishesh Krishi & Gram Udyog Yojana. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Like in any other scheme, the possibility of misuse of the export promotion measures cannot be completely ruled out. The possible misuses could be in the form of </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) forged documents, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) giving mis-declaration, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) diversion of materials to the domestic market, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) under invoicing /over invoicing of import and export. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In course of monitoring of export obligations as also on the basis of information received from the Directorate of Revenue Intelligence, Customs and other agencies regarding irregularities, penal actions are taken against such firms under the Foreign Trade (Development & Regulation) Act and Rules framed therein. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Action taken includes suspension/cancellation of the IEC number of the units, imposing fiscal penalty with penal interest in addition to action taken under the Customs Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This information was given by Anand Sharma, Union Minister for Commerce, Industry and Textiles in written reply to a question in Lok Sabha yesterday. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Vahanvati Gets another Term as Attorney General </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> President has reappointed GE Vahanvati as Attroney General of India for another three-year term. The Attorney General is the top lawyer for the Government of India. The Attorney General is appointed under Article 76 of the Constitution. He shall have right of audience in all courts in India. He also has a right to speak in parliament. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">All Tribunals Under One Ministry? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOLLOWING</strong> the Supreme Court judgement in 1997, inter-ministerial consultations have been held on the subject of bringing all the tribunals/ appellate tribunals under one Ministry i.e., Ministry of Law and Justice. But the consensus to bring all the tribunals under one Ministry has remained elusive. As per information available, 62 tribunals have been established in the country, including 2 in the Ministry of Law and Justice. Law Minister Salman Khurshid informed this to the Rajya Sabha yesterday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When CEGAT was started three decades ago, it was supposed to be transferred to the Law Ministry, which has not happened so far. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibit Cash Dealings - Kerala HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Kerala High Court in a recent judgement in an Income Tax case told the Government that unless prohibition is introduced against cash dealings particularly in property sales in film industry and the like against at least for payments over a certain limit in cash, black money generation and circulation cannot be controlled because the disincentives on cash dealings contained under the various provisions of the Income Tax Act have failed to achieve the objective. Further, by prohibiting use of cash in major transactions terror and mafia funding and corruption could be arrested to a large extent. Above all, the worst enemy of our economy that is, circulation of high denomination counterfeit currencies (presently estimated at 7000 crores) could be prevented to a large extent. Unfortunately, the response of the Central Finance Ministry is not at all encouraging in as much as Government wants status quo to continue to the detriment of the economic interest of the country and the people as a whole. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court further observed, “Our limitations while exercising appellate jurisdiction under Section 260A of the Act inhibit us from initiating any proceedings or issuing direction against the Central Government. However, we express our anguish on the attitude of the Central Government to have created this vicious situation and allow the same to continue.” </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"> – Wednesday'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">Since appellant had obtained the necessary certificate from competent authority to effect that goods are entitled for benefit of notification, penalty cannot be imposed - Demand upheld and appeal dismissed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant is before the CESTAT as they have been denied the benefit of Notification no. 64/95-CE dated 16.03.1995 in respect of aluminium alloy rods, aluminium alloy flats and aluminium alloy billets manufactured and cleared to Indian Space Research Organization. </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central
Excise – Assessee availing area based exemption notification inadvertently
failed to avail certain input credits for a period of four years and availed
it subsequently – Whether the trail of transactions adopted by assessee
is revenue neutral or not – Member (T) differs with Member (J) on
the issue of revenue neutrality – Matter goes to Third Member</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant,
a manufacturer of pharmaceuticals has a unit located in Jammu and is availing
the benefit of Notification No. 56/2002-CE dated 14.11.2002. As per the scheme
of this notification, the assessee availing the benefit of this notification
is required to pay duty by first exhausting their CENVAT A/c and then pay
the balance amount of duty through PLA. The duty paid through PLA would be
refunded to them subsequently by a self credit procedure as entailed in the
said notification. From April 2005 to March 2009, the appellant due to an
inadvertent mistake did not avail credit of duty paid on furnace oil amounting
to Rs. 45.72 lakhs. This amount was taken into their CENVAT A/c on 14.08.2009
and utilized in the month of August 2009 for payment of duty on final products
cleared during that month and balance of duty for that month was paid through
PLA. </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 cost of acquisition of development rights acquired by operation of law is not determinable, sale of such development rights cannot be subjected to capital gains tax - YES, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> is an individual holding certain property in the capacity of co-owner. The original FSI of the property was restricted to 8400 Sqf. Thereafter in 1991 assessee got right to overload this property with additional TDR by virtue of the provisions of Development Control Regulations for Greater Bombay Act 1991. Assessee entered into an agreement with some builder for development of the property and received certain amount in lieu of the sale of the development rights. The AO was of the view that provisions of section 50C would be applicable and hence the value adopted by the Stamp Valuation officer was applicable. The CIT(A) affirmed the action of the AO discarding the submissions of the assessee that provisions of section 50C were not applicable for sale of development rights and second the receipt was not at all taxable under the provisions of Income Tax. </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><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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