TIOL-DDT 1879 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><font color="#663399"><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 color="#663399" size="3">TIOL-DDT 1879 </font><br> 14.06.2012 <br> Thursday </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Risk Management System (RMS) - Review </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SELF</strong>-Assessment has been introduced vide Finance Act 2011. This marked a major change in the system of assessment of customs duty of imported and export goods. Self-Assessment is trust-based control with more reliance on declarations of the importer and exporters. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to implement self-assessment effectively and to ensure its benefits to the trade, Board decided that current facilitation level under RMS should be enhanced significantly. Accordingly, it was decided to enhance facilitation level up to 80%, 70% and 60% in case of air cargo complexes, ports and ICDs respectively by rationalizing risk rules and risk parameters. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board is of the view that the percentage of Bills of Entry selected for Post Clearance Audit (PCA) at a Customs house should be suitably enhanced to safeguard the interest of revenue. Board also desires that <strong><em>concerned </em></strong> Chief Commissioners of Customs should review the staff position in their jurisdiction and relocate more manpower for audit work as increased facilitation in terms of reduced examination have led to lesser requirement of staff for examination of goods. It is therefore imperative that excess staff should be diverted for activities such as PCA and SIIB in Customs Houses. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is also reported that pendency in respect of transaction based PCA remain acute. Board has taken a <strong>serious note </strong> of it and desires that the work should be accorded due consideration and pendencies reduced. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Everybody knows that ‘Board taking a serious note' is a big joke and nothing will ever happen with such serious views. The field officers will only have a little more contempt for the Board and its seriousness. Perhaps, even the Board is not really serious about its serious view. Has the Board ever taken action against any officer for blatant disobedience of Board's instructions? </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2012/cuscir12_015.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular No. 15/2012 - Cus., Dated: June 13, 2012 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Exemption - Polyester Made Ups? </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Notification No. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_012.htm" target="_blank"><strong>12/2012</strong></a>-Cus dated 17.03.2012 (Sl. No. 284), the following goods attract nil rate of Customs Duty: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Zipper, fastener and slider;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Lace;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Velcro tape;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Elastic tape, curtain tape and edge band tape;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) Curtain hook;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) Button and eyelet;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) Tassel;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) Bead and sequin;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Insert;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(j) Sample fabric of total length up to 500 Meters imported during one financial year. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Subject to Condition 28 which reads as, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If,- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the goods are imported by a manufacturer of handloom made ups or <strong>polyester made ups </strong> for use in the manufacture of said goods for export by that manufacturer and the said manufacturer is registered with the handloom Export Promotion Council or Cotton Textile Export Promotion Council or Synthetic & Rayon Textile Export Promotion Council as the case may be;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the total value of goods imported shall not exceed 5 percent of the FOB value of handloom made ups or 1 percent of the FOB value of cotton made ups or <strong>polyester made ups </strong> as the case may be, exported during the preceding financial year;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) the importer produces a certificate from the Handloom Export Promotion Council or Cotton Textile Export Promotion Council or Synthetic & Rayon Textile Export Promotion Council certifying the value of exports made during the financial year mentioned in sub-condition (b), and also the value and quantity of goods already imported under this notification during the current financial year. </font></p> </blockquote> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the words, <strong>"polyester made ups"</strong><strong> </strong>are amended to read as,<strong> "man-made made ups"</strong></font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_039.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 39/2012-Cus., Dated: June 12, 2012 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Dubai Customs Seizes Witchcraft Tools </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DUBAI</strong> Customs recently arrested two persons trying to smuggle around 1200 items like talisman, amulets, worry beads, fish skeletons and animal bones used in witchcraft and black magic. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Dubai Customs has launched a crackdown on the smuggling of these items into UAE. </font></p> <p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong><font color="#006600">DDT Cartoon </font></strong></font></p> <p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Revelation.jpg" alt="DDT Cartoon " width="514" height="595" hspace="5" border="0" align="center"></font></strong></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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font 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"></font>Central Excise</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Capital goods used for a period of 2 to 4 years cannot, be stated to be sold "as such" capital goods - appellant was not liable to pay excise duty in accordance with Rule 3(5) of CCR, 2004 when it removed used capital goods in June/July, 2007 - since there is no liability to pay excise duty, consequently the goods are not liable to be confiscated - no question of payment of any penalty or interest: Delhi High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellant is engaged in the manufacture of chewing tobacco and availing CENVAT credit on capital goods. In the months of <strong>June and July, 2007,</strong> it sold the capital goods such as "old used filter pouch packing machine", "old used HFFs machine PK 85", "old used dust collector", "old used packing and sealing machine", "old used air compressor", "old used grinder" and some other used machines to its sister concern, viz., Harsh International (Khaini) Pvt. Ltd., but did not pay any excise duty thereon/reverse CENVAT credit it had availed at the time of purchase between 2003 to 2005, taking the position that Rule 3(5) of the Cenvat Credit Rules, 2004 did not warrant the same. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether when salary of assessee, an MLA, falls under head 'income from other sources' and is exempt u/s 10(14), any deduction can be claimed for expenditure under Sec 57 - NO: ITAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE </strong>is an individual. He filed his ROI for Assessment Year 2007- 08, declaring income of Rs. 1,28,330 on 9.3.2009. The return was processed and the case was taken up for scrutiny by issue of notice under section 143(2) and 142(1). The AO noted that during the relevant period, the assessee was an MLA drawing pension, salary and other allowances from the Govt. of Karnataka. The assessee had claimed exemption of expenses to the extent of Rs 4,37,881. The Assessing Officer after examination of the assessee's claims and income tax provisions, allowed the exemption amounting to Rs 1,61,400, but also disallowed the balance amount. Besides this, a gift of Rs. 15 lakhs allegedly made by the assessee to his son Sri B.N.Vijay Kumar was treated as an unexplained cash credits under section 68 of the Act and brought to tax in his hands. The AO accordingly completed the assessment by an order under section 143(3) of the Act on 26.12.2009 determining the total income of the assessee at Rs. 19,04,811. Against the order of the AO, the assessee filed an appeal and the CIT(A) dismissed the assessee's appeals on both issues of dispute (i) being the claim for exemption of expenditure under section 10(14) and 10(17) and exemption under section 57 of the Act and (ii) unexplained gift of Rs. 15 lakhs by order dt.27.12.2010. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Drawback in respect of duty paid on importation - In case Commissioner of Customs or any other authority was not competent to condone delay and the delay could have been condoned by Board, petitioner should have been informed and asked to approach the Board: Delhi High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>the present case, the Assistant Commissioner had issued the refund order after examining the facts vide order dated 16.06.2004. The authorities/ impugned order may be right that the refund claim was beyond the statutory period and therefore the refund was wrongly made, but they ignore the fact that the petitioner had filed an application dated 27.05.2003. The said application was required to be dealt with by the competent authority. It is accepted that the power to condone the delay beyond three months is with the Board. It will be appropriate in case the petitioner files an application for condonation of delay under Rule 7A. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Tomorrow for the judgements </font></strong></font></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"><strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p> </body> </html>