TIOL-DDT 2134 · 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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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=17063"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></strong></font><font color="#663399" size="3">TIOL-DDT 2134</font> <br>
25.06.2013 <br>
Tuesday</strong> </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Welcome the new generation Customs Broker - Old Wine in Old Bottle?</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REGARDING</strong> the amendment proposed by the Finance Bill, 2013 in the context of Customs House Agent, this is what the JS (TRU) mentioned in his DO letter dated 28/02/2013 - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xiv) Section 146 is being substituted to change the nomenclature of "customs house agents" to "customs brokers"<em><font color="#FF0000"> considering the global practice and internationally accepted nomenclature. </font></em></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had in the post Budget<a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTcxNDI=" target="_blank"> DDT-2056</a> mentioned this - </font></strong></p>
<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs Broker to replace Customs House Agent.</strong> The age-old institution of Custom House Agent (CHA) is to die giving place to the Customs Broker. The Bombay CHA association was started in 1937. Custom House Agent found a place even in the Old Customs Act, 1878. It is not known whether all the existing CHAs would be licenced as Customs Brokers or they have to go all the way to the Supreme Court. Section 146 of the Customs Act is substituted. A STABLE TAX REGIME! </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By the Finance Act, 2013 enacted on 10th May, 2013 for section 146 of the Customs Act, the following section was substituted:- </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Licence for customs brokers. </font></strong></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"146. (1) No person shall carry on business as a customs broker relating to the entry or departure of a conveyance or the import or export of goods at any customs station unless such person holds a licence granted in this behalf in accordance with the regulations. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) The <font color="#006600">Board may make regulations</font> for the purpose of carrying out the provisions of this section and, in particular, such regulations may provide for- </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xxxxxxxx </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After more than a month of enactment of the Finance Bill, 2013, the Board has come out with the Regulations and they are called Customs Brokers Licensing Regulations, 2013 effective since last Friday i.e 21 st June, 2013. <strong>And the whole world came to know about it only yesterday. So much for transparency! </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Comparison
between the CBLR, 2013 & CHALR, 2004 </font></strong></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Regulation </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBLR, 2013 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CHALR, 2004 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Definition </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Definition </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs broker to be licensed </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs house agent to be licensed </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Invitation of application </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Invitation of application </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Condition to be fulfilled by the applicants </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Application for licence </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Examination of the applicant </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Condition to be fulfilled by the applicant </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Grant of licence </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Scrutiny of application for licence </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Execution of bond & furnishing of security </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Examination of the applicant </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Period of validity of a licence </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Grant of licence </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Licence not transferable </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Execution of bond & furnishing of security </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Obligations of a Customs Broker </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Period of validity of a licence </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Change in directors of company, etc. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Licence not transferable </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Change in constitution of any firm or a company </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Obligation of Customs House Agent </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Change in the constitution of a concern </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Change in directors of company etc </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Engagement of persons qualified in examination referred to in regulation 6 etc. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Change in constitution of any firm or a company </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Inspection of accounts </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Change in constitution of a concern </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Employments of persons </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Engagement of persons qualified in the examination referred to in regulation 8, etc. </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revocation of licence or imposition of penalty </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maintenance & inspection of accounts </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Suspension of licence </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Employment of persons </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Procedure for revoking licence or imposing penalty </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Suspension or revocation of a licence </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appeal by Customs broker </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibition </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">22 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Penalty </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Procedure for suspending or revoking licence under regulation 20 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">23 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibition </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Grant of licence no right to accommodation </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Membership of Associations </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Membership of Associations </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> total regulation count remains the same. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, some of the notable features of the new Regulations are as below - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ <font color="#006600"><strong>Regulation 5. Conditions to be fulfilled by applicant </strong></font>- The conditions are to be fulfilled<strong> before</strong> writing the exam. <strong>More eligibility conditions added</strong> - importantly of the applicant being a person of sound mind, that he is not adjudicated as insolvent, that he has not been convicted by a competent court for an offence nor any criminal proceeding is pending against him in any court of law and that he has not been penalised for any offence under the Customs Act, the Central Excise Act and the Service Tax law. For the Group A officer the earlier condition of having a minimum of 10 years service in Group A has been reduced to five. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ <font color="#006600"><strong>Regulation 8 - Execution of bond & furnishing of security</strong></font> - Before granting the licence under regulation 7, the Commissioner of Customs shall require the successful applicant to enter into the bond in Form D and where specified a surety bond in Form E for due observance of these regulations and furnish a bank guarantee, a postal security or National Saving Certificate in the name of Commissioner of Customs for an amount of five lakhs rupees for carrying out the business as Customs Broker. <strong>Earlier this amount stood at Rs.75,000/-. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ <strong><font color="#006600">12. Change in directors of company, etc. </font></strong>- In case a company holding a licence under regulation 7 undergoes any change in the directors, or managing director, such change shall forthwith be communicated by such licensee to the Commissioner of Customs within one month of such change.<strong> Earlier the period was sixty days.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ <font color="#006600"><strong>17. Employment of persons </strong></font>- (1) A Customs Broker may, having regard to the volume of business transacted by him, employ any number of persons to assist him after verifying their antecedent and identity at the declared address by using reliable, independent, authentic documents, data or information: <strong>Verification of antecedents etc. of employees before appointment was not mandated earlier. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ <font color="#006600"><strong>Regulations 19 & 20 of CHBR, 2013</strong></font> -<strong> Suspension of licence and Revocation of licence dealt with separately unlike earlier Regulation 22 of CHALR, 2004. Procedure for imposition of penalty also introduced. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ <font color="#006600"><strong>21. Appeal by a Customs broker</strong></font> - <strong>Provisions for appealing before the CESTAT against any order passed by Commissioner under these regulations is introduced. Earlier, the appeal to the CESTAT could be made only against the decision/order passed under regulation 20 or sub-regulation (7) of regulation 22 and which pertained to Suspension or revocation of a licence. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ <strong><font color="#006600">22. Penalty </font></strong>- A Customs Broker, who contravenes any provisions of these regulations or who fails to comply with any provision of these regulations shall be liable to a penalty which may extend to fifty thousand rupees. <strong>Penalty provision introduced separately.</strong> <strong>This was not there earlier. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ <font color="#006600"><strong>No Regulation akin to earlier Regulation 23 of CHALR, 2004 - </strong></font> This Regulation in CHALR, 2004 laid down that grant of a licence under these regulations does not confer any right to accommodation in a Customs Station. This Regulation does not figure in the new scheme of things. Does it mean they will get accommodation? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_065.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 65/2013-Cus (NT) dated June, 21, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Do we have Customs House Agents or Brokers or None Now? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the Finance Act 2013, after 10th May 2013, there are no Customs House Agents - there will be only Customs Brokers. The Customs Brokers Licensing Regulations, 2013 have just been notified and there is no Customs Broker licenced yet under the new Regulations. It is not clarified as to what would happen to the old Custom House Agents. Do they automatically become Customs Brokers or should they get new licences? But as of now, we have neither Custom House Agents nor Customs Brokers. The transactions by CHAs from 21.6.2013 seem to be illegal! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They could have simply amended the Customs Act and the CHALR instead of creating all this confusion and possible litigation. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Standardizing
process of filing application u/s 10(46) of I-T
Act - CBDT Instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNDER </strong>Section 10(46) of the Income-tax Act, specified income arising to a body or authority or Board or Trust or Commission, established or constituted by or under a Central or State Act or by a Central or State Government with the object of regulating or administering any activity for the benefit of general public, would be exempt from tax subject to the condition that the said entity is not engaged in any commercial activity. The entity eligible to claim tax exemption u/ s 10(46) is required to be notified by the Central Government in the official Gazette. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since, at present, there is no uniformity in the manner in which applications under Sec. 10(46) are being filed by applicant, the entities seeking notification under Section 10(46) have been advised to file an application in the standardized format to the Commissioner of Income-tax/Director of Income tax under whose jurisdiction the case of the entity falls. A copy of this application has also to be endorsed to CBDT along with the acknowledgement receipt as evidence of having furnished the same in the office of jurisdictional CIT /DIT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As the Central Government is the approving authority, the jurisdictional CIT /DIT are required to furnish his/her Comments on each and every point of the standardized tabular format within a reasonable time so as to facilitate CBDT in processing the matter appropriately. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board wants that the <em><strong>concerned</strong></em> CCIT would ensure that the report of jurisdictional CIT /DIT as per the eformat must reach the Board within 45 days of the receipt of the application. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board also wants the field officers to be informed for strict compliance. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2013/standardizing_application_filing.htm"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT F. No. 196/6/2013-ITA.I, dated: June 24 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Values for Gold decreased </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has decreased the Tariff Value (USD) of Gold. All other Tariff values remain unchanged.<font color="#FF0000"> Gold would continue to hog the limelight - its tariff value may either increase or decrease but remaining unchanged is for the time being ruled out. </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The rates as on 14.06.2013 and with effect from 24.06.2013 are as under: </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 1 </strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) <br>
from 14.6.2013 </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) <br>
from 24.6.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></font></p></td>
<td valign="top" bgcolor="#FBEFE6"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></font></p></td>
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></font></p></td>
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></font></p></td>
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">852 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">852 (no change) </font></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">859 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">859 (no change) </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palm Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">856 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">856 (no change) </font></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">866 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">866 (no change) </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 20 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBDPalmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">869 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">869 (no change) </font></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">868 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">868 (no change) </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1043 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1043 (no change) </font></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404 00 22 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3930 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3930 (no change) </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1207 91 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy seeds </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4395 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4395 (No change) </font></p></td>
</tr>
</table>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Table 2</font></strong></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FFFF00">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 14.6.2013 </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 24.6.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></font></p></td>
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></font></p></td>
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></font></p></td>
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></font></p></td>
<td valign="top"><p align="center"><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold, in any form in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">450 per 10 grams </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">421 per 10 grams </font></strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">709 per kilogram </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">709 per kilogram </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(no change) </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_066.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 66/2013-Cus (NT), Dated: June 24, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Risk Management Systems (RMS) introduced in Exports </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Board had vide Circular No. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2005/cuscir05_043.htm" target="_blank">43/2005-Cus</a></strong> dated 24.11.2005 introduced Risk Management System (RMS) in Imports as a trade facilitation measure and for selective interdiction of high risk consignments for Customs control. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After a positive feedback gathered over almost an eight year period, the Board has now decided to introduce RMS in exports in Customs locations where the Indian Customs EDI Systems (ICES) is operational. It is mentioned that the RMS in exports will enable low risk consignments to be cleared based on self assessment of the declarations by exporters and this would lead to an enhancement in the level of facilitation and speed up the process of cargo clearance. This would result in reduction in dwell time and achieve the desired objective of reducing the transaction cost in order to make the business internationally competitive. Many other modalities to be followed are also spelt out. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The RMS in Exports is scheduled for implementation from <strong>15.07.2013</strong> onwards at ICD Mulund and ICD Patparganj. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/cuscir13_023.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 23/2013 - Cus., Dated: June 24, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Judge walks out of Court Room </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is reported that a High Court judge who had to defer 12 cases one after the other walked out of the court in frustration.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The reason - advocates from the Advocate General's office repeatedly seemed unprepared to present the government's cases and sought adjournment. After adjourning 11 cases, when the government pleader in the 12th case also sought an adjournment on the ground that he had not received files from the AG's office, the Justice felt that enough was enough. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Justice said that the conduct of the Advocates was hampering the justice system and delaying justice to those who had approached the Court. Terming it a criminal waste of the Court's time, the judge walked out of the court hall in frustration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Justice later summoned the Advocate General and the President of the Advocates' Association. After expressing his displeasure at having to defer cases repeatedly,he said lawyers should cooperate to ensure that the courts worked smoothly. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This incident happened in the Kerala High Court</font></strong></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">Customs/Central Excise</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Petitioner had procured inputs under Rule 19(2) of CER, 2002 without payment of excise duty and used same in manufacture of goods exported - argument of revenue that since petitioner paid excise duty subsequently after issuance of show cause notice, hence, the petitioner is not eligible for drawback benefit is not acceptable because there is no such condition mentioned in proviso to Rule 3 (1) of the Drawback Rules, 1995: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner is engaged in manufacture and export of skimmed milk powder, full cream milk powder, butter oil etc. The petitioner was sanctioned drawback and the amount was also paid to the petitioner. Later on, notices were issued to the petitioner for recovery of the amount on the ground that the petitioner was not eligible to receive drawback under Rule 16 of Customs & Central Excise Duties Drawback Rules, 1995. Consequently, the petitioner was ordered to deposit the amount with interest.</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 fact that TDS was not deducted on certain payments made by assessee, was declared so in return filed, even then AO can resort to re-assessment on ground of failure to make full and true disclosure of facts - NO: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether reopening of assessment is warranted after the expiry of four years, although the assessee has, in pursuant to queries raised by the AO, disclosed all details of the dealers, who have received payments in excess of Rs 50 lakhs; Whether further assessment can be reopened on the alternate ground that the assessee has not provided details of payments below Rs 50 lakhs, when there is no distinction with respect to TDS liability due to the size of payments; Whether assessment can be reopened beyond the expiry of four years, although the AO has failed to raise the issue of non-deduction of TDS, at the time, when all details of payments and dealers were provided by the assessee; Whether it is the responsibility of the assessee to raise the contention that such tax at source is not required to be deducted and justify the same by pointing out legal provisions and judgements, if any; Whether the fact that tax at source was not deducted on such payments made by the assessee was part of the returns filed, does not mean that there was no failure on part of the assessee to disclose true and full material facts; Whether prior to conferring jurisdiction on the AO, for issuing notice for reopening assessment beyond a period of four years, twin conditions of section 147 must be simultaneously satisfied; Whether once primary facts are before the AO, he requires no further assistance by way of disclosure from the assessee and Whether the assessee is duty bound to tell the assessing authority what inferences, whether of facts or law, should be drawn. And the assessee's writ is allowed. </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">BAS - show cause notice should not be read with hyper technicality - What that is intended by subject, language and object of show cause notice shall be understood in such manner that said notice seeks to achieve - appellant advanced the object of its client service provider giving source of information to ultimate user through code number - Pre-deposit ordered: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> first count of service tax demand of Rs. 2,95,63,317/- is under the category of "Business Auxiliary Service". Second count of demand is under category of "Management, Maintenance or Repair Service". The appellant submitted that a reading of Para 2.5 of show cause notice does not indicate nature of service provided to be "Business Auxiliary Service" for the reason that access code number was provided by the appellant to reach to the source of information to serve their purpose. According to the appellant, there was no service provided by appellant to be taxable because real service was provided by other service provider on use of contact code by service seeker. On the second count of demand it was submitted that when software were not goods prior to 1.6.2007, management, maintenance or repair thereof shall not be liable to service tax for the period up to 31.5.2007. </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"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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