TIOL-DDT 1955 · 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><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 1955 </font><br> 04.10.2012 <br> Thursday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import from LDC - Customs Duty Reduced </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has reduced the Customs Duty applicable to imports from specified Least Developed Countries. Goods that attracted 20% duty will now be fully exempted. The extent of tariff concession is also enhanced by 25%. Goods which attracted a concession of 8% of the applied rate will now get a concession of 10%; 12% will become 15%; 16% will be 20% and so on. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_056.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 56/2012-Cus.; Dated October 01, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Procedure and conditions for registration of contracts for export of cotton (Tariff Codes 5201 and 5203) w.e.f 1st October 2012</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified the procedure and conditions for registration of contracts for export of cotton under Tariff Item HS code 5201 & 5203 [Sl. Nos. 197 & 199 of ITC(HS) Classification of Export & Import Items] w.e.f 1st October 2012.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The registration will be subject to the following conditions: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Registration Certificates (RCs) will be issued by the 7 designated Regional Authorities of DGFT at Ahmedabad, Bengaluru, Chennai, CLA New Delhi, Hyderabad, Kolkata and Mumbai. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Procedure of obtaining Registration Certificate (RC) as stipulated in Notification No. 63 (RE-2010)/2009-14 dated 04.08.2011 and modified by Notification No. 74 (RE-2010)/2009-14 dated 12.09.2011 will continue to apply. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) An exporter can apply for one RC at a time for a maximum quantity of 10,000 bales (1 bale=170kg) or actual quantity exported in the previous cotton season, <u><strong>whichever is less</strong></u>. Exporters who have exported upto 1500 bales during previous cotton season and new comers (a new comer is an exporter who has not exported cotton in the previous cotton season) can apply “upto 1500 bales”. Eligibility to apply for a subsequent RC will be on completion of at least 50% of the exports against the RC obtained now under this notification (exporters would be required to submit the documentary proof of such exports to the concerned RAs along with the application for issue of new RC). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) For ease of calculation, RC holders are encouraged to apply in next higher multiples of 10. (For example, an exporter who has exported 1387 bales during previous cotton season is encouraged to apply for 1390 bales). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Revalidation of Registration Certificates will not be permitted. </font></p> </blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2012/dgft12not017.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 17 (RE-2012)/2009-14.; Dated October 01, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Exemption of Assam Comilla Cotton [ITC(HS) Code 5201 00 12] from export restriction on cotton</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXPORT</strong> of Assam Comilla Cotton [ITC(HS) Code 5201 00 12] with a limit of 5,000 Bales was exempted from the cap on export of cotton during the previous cotton seasons 2010-11 and 2011-12. Export of Assam Comilla Cotton [ITC(HS) Code 5201 00 12] with a limit of 5,000 Bales will be exempted from any restriction on export of cotton . As prescribed in the previous cotton seasons, such export would require to be registered with DGFT. Registration Certificate for such exports will be valid for 30 days only. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2012/dgft12not018.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 18 (RE-2012)/2009-14.; Dated October 01, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Agencies Approved as Pre Shipment Inspection Agencies </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has approved 14 new agencies as Pre Shipment Inspection Agencies (PSIA). The list includes three agencies from India at Baroda, Kolkata and Gurgaon. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2012/dgft12pn020.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 20 (RE-2012)/2009-14.; Dated October 01, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FDI Policy - step down (operating) subsidiaries by NBFCs </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government of India has reviewed the policy and decided to permit NBFCs </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) having foreign investment above 75% and below 100% and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) with a minimum capitalisation of USD 50 million, </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">to set up step down subsidiaries for specific NBFC activities, without any restriction on the number of operating subsidiaries and without bringing in additional capital. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This decision takes immediate effect</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/pnote/2012/pnote12_009.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Department of Industrial Policy & Promotion Press Note No. 9 (2012 Series).; Dated October 03 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs vs CISF - Airport Security Compromised </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is reported that yesterday for three hours, there was no security at two important gates at the Mumbai International Airport. The reason: A tiff between Customs and CISF. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The airport is supposed to be under the control of the Customs, but these days, with terrorists hovering all around, the importance of the Customs has been relegated and the Security Agency - Central Industrial Security Force (CISF) has gained prominence. This has resulted in unwanted animosity between the officers of CISF and Customs and at every airport, this tension erupts once in a way. Fortunately, the trouble is often managed before it becomes a big issue. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Mumbai, the trouble started when the Customs intercepted two CISF vans on suspicion that they were carrying drugs, which turned out to be incorrect. But the vehicles had no permission to enter high security zones of the airport and so were seized. In protest, CISF pulled their guards from two important gates. But the other version is that some Customs officers got offended when their vehicle was stopped and Customs officers were frisked by CISF. Last month DRI had arrested two sub inspectors of CISF in a gold smuggling case. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe we should have some Force like the US Customs and Border Protection to manage security and Customs in our airports. On an average, the US CBP clears over a million passengers per day! </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Vigilance Awareness Week - The Annual Ritual </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COME</strong> October and the Government of India celebrates a Vigilance Awareness Week. This year, the Vigilance Awareness Week would be observed from 29th October (Monday) to 3rd November (Saturday) 2012. The observance of the Vigilance Awareness Week should commence with the pledge on 29th October 2012 at 11. 00 a.m. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government servants take a pledge,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE, THE PUBLIC SERVANTS OF INDIA, DO HEREBY SOLEMNLY PLEDGE THAT WE SHALL CONTINUOUSLY STRIVE TO BRING ABOUT INTEGRITY AND TRANSPARENCY IN ALL SPHERES OF OUR ACTIVITIES WE ALSO PLEDGE THAT WE SHALL WORK UNSTINTINGLY FOR ERADICATION OF CORRUPTION IN ALL SPHERES OF LIFE. WE SHALL REMAIN VIGILANT AND WORK TOWARDS THE GROWTH AND REPUTATION OF OUR ORGANISATION. THROUGH OUR COLLECTIVE EFFORTS, WE SHALL BRING PRIDE TO OUR ORGANISATIONS AND PROVIDE VALUE BASED SERVICE TO OUR COUNTRYMEN WE SHALL DO OUR DUTY CONSCIENTIOUSLY AND ACT WITHOUT FEAR OR FAVOUR. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What a farce - year after year! </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cvccir/cvc_observance_vigilance.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CVC No. 012/VGL/063; Dated September 28 2012</font></strong></a></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">Central Excise</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Classification - ORBIT Sugar Free Chewing Gum is rightly classifiable under Chapter sub-heading No.2106 90 99 of CETA, 1985: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants are manufacturers of ‘Orbit' Chewing Gum. The appellants classified the Sugar free Chewing Gum under Sub-heading 2106 90 99 of the CETA, 1985; the department sought it as diabetic food under Subheading 2106 90 91. Accordingly, Show Cause Notices have been issued by the department re-classifying the products and demanding differential duty. The SCN was confirmed by the adjudicating authority demanding differential duty, with interest thereon, and imposing a penalty on the appellant. </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 assessee-trust spends grants received from Government on participation at trade fair outside India, it can be construed as application of trust money for charitable purposes in India - NO: ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether when the assessee-trust spends the grants received from the Government on participation at trade fair outside India, it can be construed as application of the trust money for charitable purposes in India; Whether words used in sections can be given a grammatical interpretation which renders any other section otiose; Whether the words “in India” appearing in section 11(1)(a) qualifies only the verb “applied"; Whether income of a trust can be applied outside India, as long as its charitable purposes are limited within India and Whether a trust set up after 1-4-1952 can apply its income outside India without obtaining exemption from CBDT. And the verdict goes in favour of Revenue. </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">Notfn. 32/2004-ST & 1/2006-ST - In absence of any particular format prescribed under respective notifications, department insisting for declaration on each consignment note for allowing abatement under said Notifications is un-sustainable in law - Demand of Rs.10.88 crores set aside and appeals allowed: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant is registered as a GTA and availed the benefit of Notification No.32/2004-ST dated 03.12.2004 and Notification No.1/2006-ST dated 01.03.2006 during the material period. Show cause notices were issued to them denying the benefit of the said exemption Notification on the ground that the appellant had failed to fulfil the conditions of the said Notification in as much as they could not produce the relevant consignment note indicating necessary declaration from transport agency that neither credit on input or on capital goods and benefit of Notification No.12/2003-ST dated 20.06.2003 had been availed for providing such services by the said transport agencies. </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><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"> <strong> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p> </body> </html>