TIOL-DDT 1858 · 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 1858</font><br>
16.05.2012<br>
Wednesday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value - Hike in Brass Scrap; Decrease 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 4298 to USD 4362 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 541 to 507 USD per 10 grams and the tariff value of silver is decreased from 1011 to 920 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><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_042.htm" target="_blank">Notification No. 42/2012 - Cus.,(N.T.), Dated: May 15, 2012 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Imports from Singapore </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the three notifications pertaining to imports from Singapore, namely Notification Nos. 73/2005-Customs; 74/2005-Customs and 75/2005-Customs, all dated 22.07.2005. These amendments are mainly to change the tariff headings in the notifications. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_033.htm" target="_blank">Notification Nos. 33</a>, <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_034.htm" target="_blank">34</a>, and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_035.htm" target="_blank">35/2012 Cus - Dated: May 14, 2012 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Concessional rates for imports from Singapore - Sanitary towels included </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended Notification No. 10/2008-Customs; dated 15.01.2012. These amendments are mainly to change the tariff headings in the notifications. A new item is added at Sl. No. 533 - 96190010. [Sanitary towels or napkins] </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_036.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 36/2012 Cus - Dated: May 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Anti Dumping Duty - PVC Flex Film from China Provisional Assessment Ordered </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> had imposed anti dumping duty on PVC Flex Film originating in, or exported from, the People's Republic of China by Notification No. 82/2011-Customs, dated the 25th August 2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Government has ordered that pending review by the designated authority, these goods, when exported by M/s Haining Tianfu Wrap Knitting Co Ltd, People's Republic of China (Producer) and M/s Manna, Korea RP (Exporter) and imported into India, shall be subjected to provisional assessment till the review is completed. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_024.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 24/2012-Customs (ADD), Dated: May 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Dry Cell Batteries from China - extended - Another Resurrection! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> designated Authority has recommended for the extension of Anti Dumping Duty on imports of Dry Cell Batteries originating in or exported from China PR, imposed by Notification No. 57/2007-Customs dated the 13th April, 2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Based on this recommendation, the Government has amended Notification No. 57/2007 to extend its life till <em>12th April, 2013.</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the notification had expired on 12 April 2012. Can you extend the validity of a notification after its expiry? But the Board has more powers than Parliament and Finance Minister put together, especially in illegal retrospective amendments. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_025.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 25/2012-Customs (ADD), Dated: May 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Tyre Curing Presses from China </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANTI </strong>Dumping Duty on imports of Tyre Curing Presses originating in or exported from China PR, was imposed by Notification No. 01/2010-Customs dated the 08 January 2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Government has amended this notification to exclude Six Day Light Curing Press for curing bi-cycle tyres from the ambit and scope of the anti-dumping duty. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_026.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 26/2012-Customs (ADD), Dated: May 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Import of Betel Nut </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended the Handbook of Procedures, Vol.2, 2009-2014 to stipulate that: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Areca nut (i.e. Betel nut) shall be permitted for imports </font></em></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(a) only if Areca nut (i.e. Betel nut) is specifically mentioned in the SIONs; </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Or </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) by actual users either when this input item is specifically mentioned in the SION of the respective export product or when Areca nut (i.e. Betel nut) technically falls under the ‘generic description' given in a specific SION (like under G7, G46), though not mentioned specifically. </font></em></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn112.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 112 (RE 2010)/2009-2014, Dated: May 15 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Foreign investment in NBFC Sector under Foreign Direct Investment (FDI) Scheme - Clarification </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RESERVE </strong>Bank of India (RBI) has clarified that the activity ‘leasing and finance', which is one among the eighteen NBFC activities wherein FDI up to 100 per cent is permitted under the automatic route, subject to minimum capitalization norms, covers only ‘financial leases' and not ‘operating leases', in so far as the NBFC sector is concerned. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Necessary amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 are being notified separately. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir127.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI's AP (DIR Series) Circular No.127, Dated: May 15 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Increase in Number of Tax Payers </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> number of effective income tax assesses as well as the number of registered Central Excise and Service Tax assesses during the years 2006-07 to 2010-11 are as under:</font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#DF8600">
<td valign="top" bgcolor="#DF8600"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Financial Year </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax Assessees </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#DF8600"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2006-07 </font></strong></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">31903137 </font></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">92035 </font></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">947970 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#DF8600"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2007-08 </font></strong></p></td>
<td valign="top" bgcolor="#FCE8DA"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">33662801 </font></p></td>
<td valign="top" bgcolor="#FCE8DA"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">96719 </font></p></td>
<td valign="top" bgcolor="#FCE8DA"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1070068 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#DF8600"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2008-09 </font></strong></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">32650627 </font></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">100163 </font></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1221846 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#DF8600"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2009-10 </font></strong></p></td>
<td valign="top" bgcolor="#FCE8DA"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">34085426 </font></p></td>
<td valign="top" bgcolor="#FCE8DA"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">101709 </font></p></td>
<td valign="top" bgcolor="#FCE8DA"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1224316 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#DF8600"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2010-11 </font></strong></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">33739124 </font></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">113482 </font></p></td>
<td valign="top" bgcolor="#FFD1BB"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1300226 </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue Collected from direct and indirect taxes during the above period, is as given below. </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FCE8DA">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Financial Year</font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Direct Taxes </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Indirect Taxes </font></strong></p></td>
</tr>
<tr bgcolor="#FCE8DA">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2006-07 </font></strong></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">230181 </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">241538 </font></p></td>
</tr>
<tr bgcolor="#FCE8DA">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2007-08 </font></strong></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">314330 </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">279031 </font></p></td>
</tr>
<tr bgcolor="#FCE8DA">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2008-09 </font></strong></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">333818 </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">269433 </font></p></td>
</tr>
<tr bgcolor="#FCE8DA">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2009-10 </font></strong></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">378063 </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">245367 </font></p></td>
</tr>
<tr bgcolor="#FCE8DA">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2010-11 </font></strong></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">446935 </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">345127 </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The primary reason for increased revenue collection are increase in GDP, changes in tax legislation, improved efficiency of tax administration, etc, according to S.S. Palanimanickam, MOS, Finance, in a written reply to a question in the Rajya Sabha yesterday. </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"> – Thursday'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">Central Excise duty paid on imported Modems supplied to BSNL by availing CENVAT Credit of Additional duty of Customs and SAD paid on import - No case for imposing equal penalty under Section 11 AC - CESTAT by Majority. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants imported different varieties of ASDL Modems in response to the tenders floated by BSNL for Dataone scheme. After importation, the appellants paid central excise duty on the Modems supplied to BSNL by utilizing the <em>CENVAT Credit</em> of additional duty of customs and SAD paid at the time of import by treating the post import activities as amounting to manufacture. It is the case of the department that no manufacturing activity was undertaken by the appellants on the imported Modems and the payment duty was not correct. On being pointed out by the revenue, the appellants reversed the remaining <em>CENVAT Credit</em> lying in balance after payment of duty on the Modems supplied to BSNL. In addition to demand of interest on the <em>CENVAT Credit</em>, equal penalty was also imposed under Section 11 AC read with Rule 15(2) of the <em>CENVAT Credit</em> Rules, 2004. Personal penalties were also imposed on the directors. </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">When assessee takes a house on lease for its Chairman and pays huge security deposit, whether notional interest on such deposit is to be treated as a sum liable to FBT - NO, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> Company provided residential accommodation to its chairman and mentioned the monthly rent in the return of FBT - During the course of assessment proceedings the AO observed that for this accommodation the assessee had given huge amount of security, observing this security the AO asked the assessee to explain why interest attributable to security should not be considered for FBT. In response, it was mainly stated that the security deposit was paid for taking the above said flat on lease basis which was provided to Chairman & Managing Director of the company. The AO, observed that according to section 115WB(1), ‘fringe benefit' means any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to the employees, and accordingly taxed the notional interest attributable to this security in the hands of the assessee - CIT(A) affirmed the order of the AO. </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">Plastic bottles manufactured from raw materials supplied by M/s Marico Ltd. and cleared on payment of duty to M/s Aero Pharma for packing hair oil under brand name - Assessable Value correctly arrived on the basis of cost of raw materials plus job charges - no cause for applying rule 8 or rule 10A of Valuation Rules, 2000: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THEY </strong>make the rules but are unsure how to apply it. So they issue demand notices and expect the CESTAT to settle the issue. In the process, they learn and with them a lot many high profile Audit objections fade into oblivion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The present case is a classic example of misapplication of the Central Excise Valuation Rules, 2000 by the lower authorities. Fortunately, the Bench is more than happy to explain to the department, in a lucid manner, the provisions of the Valuation Rules 8 & 10A and the circumstances as to when it can be applied. </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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