TIOL-DDT 2187 · 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 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="3">TIOL-DDT 2187</font><br> 11.09.2013<br> Wednesday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export Duty on Leather - Deployment of Officials of CLRI at Chennai, Mumbai and Kolkata (Ports) and Kanpur and Tughlakabad (ICDs)</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINISHED </strong>leather attracts a nil rate of export duty while there is duty for other kinds of leather. It is brought to the notice of Board that some unscrupulous exporters are exporting semi-processed leather in the guise of finished leather for evading applicable export duty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has examined the matter in consultation with CLE (Council for Leather Exports) and has decided:</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) Officials of CLRI shall be deployed at Chennai, Mumbai and Kolkata (Ports) and Kanpur and Tughlakabad (ICDs). The cost of CLRI officials shall be borne by CLE. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) The officials of CLRI shall assist Customs officers in examination of export consignments of leather. Where required, samples shall be drawn by Customs in presence of officials of CLRI. Samples so drawn by Customs shall be sent to CLRI or approved labs for testing.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) The above arrangements shall come into force with effect from 15.04.2013 at aforementioned Customs locations.</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC had issued these instructions on 16 April 2013, a day after the scheme had come into existence and it is made available to the Public after five months!</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/instruction13_007.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Instruction in F. No.450/39/2012 - Cus.IV,Dated: April 16, 2013 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mumbai Customs Procedure for Examination of Leather Export Consignments </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> JNCH Export Commissioner has notified a detailed procedure for Assessment and Examination of Leather. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. The product shall conform to finished leather norms prescribed under DGFT public notice 21/2009-14 dated 01.12.2009, failing which it will be subjected to export cess as defined in Sl.26 of Schedule 2 of Customs Tariff Act, 1974 as amended. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. The officials of CLRI shall assist Customs officers in examination of export consignments of leather. Where required, samples shall be drawn by Customs in presence of officials of CLRI. Samples so drawn by Customs shall be sent to CLRI for testing and till receipt of the test report such shipping bills shall be provisionally assessed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c. The Exporters on filing Shipping Bill shall execute a provisional bond as per Customs (Provisional Duty Assessment) Regulations, 2011. The exporters registered with CLE may execute a simple bond for this purpose. For other exporters, additional security equal to 20% of export duty leviable will be required. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d. The Exporter shall also pay necessary charges for testing to CLRI in the mode as agreed between CLRI & CLE. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e. On goods Registration, the goods shall be presented in presence of Customs to CLRI officials for examination. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">f. CLRI officials shall take samples of such consignments and as a token of such drawal, shall endorse with their stamp in Test memo in triplicate as given in the annexure. The details of Shipping Bill shall also be written at the back of each sample and endorsed by Customs and CLRI along with their stamps. First copy of Test memo shall be retained with CLRI along with the samples. Second copy to be handed over to exporter/representative.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">g. After due examination, the examining officer shall make following entry in the departmental comments “This S/B assessed provisionally subject to outcome of test result from CLRI on sample No...... The provisional bond numbered …….is submitted to DC/AC Export Shed., in this regard”. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">h. After due examination, “Let export order” may be given in EDI system by proper officer, if everything found in order. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. Third copy of the test memo is to be placed in the Docket retained in docks. A register will be maintained by each CFS, indicating the details of the sample drawn, under supervision of DC/AC of concerned Export Shed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">j. CLRI will forward the test results to the concerned Deputy Commissioner (Export Docks) of respective CFS from where the samples have been drawn. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">k. If the test report confirms it to be “Finished Leather” as per declaration of the exporter, the shipping bill will be finalised and the bond will be closed. Otherwise, the goods would be subjected to Export Duty and further necessary action will be taken in accordance with law.</font></p> </blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/leather_mumbai.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Customs (Export) Jawaharlal Nehru Custom House, Public Notice No. 31/2013 , Dated: August 19, 2013</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Amount of bond and bank guarantee and insurance under Regulation 5(1)(iii) of HCCAR, 2009 - CBEC Circular </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has been represented to the Board that the amount of insurance under Regulation 5(1)(iii) of <em>Handling of Cargo in Customs Area Regulations (HCCAR), 2009 should be based on amount of Customs duty associated with goods likely to be stored at a particular time and not on the projected capacity. Attention of the Board has also been drawn to the requirement of annual revalidation of the carrier bond given by the Customs Cargo Service Providers (CCSPs) i.e. ICDs/CFSs for the movement of goods from the gateway ports (to the ICDs/CFSs) in terms of Goods Imported (Conditions of Transhipment) Regulations, 1995</em>. It is contended that the annual revalidation is cumbersome. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has examined the matter and has decided:-</font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That the amount of insurance to be provided by CCSPs should be equal to the average value of goods likely to be stored in the Customs area, for a period of 30 days (based on projected capacity), and for an amount as Commissioner of Customs may specify having regard to the goods that are already insured by the importers or exporters .</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As regards the validity of the carrier bond, as a simplification measure, Board has decided that the carrier bond executed by CCSPs i.e. ICDs/CFSs shall have a validity period of 2 years or 5 years, as the case may be. (New CCSPs are approved initially for 2 years, which is renewed for 5 years at a time, while existing CCSPs are straightaway approved for 5 Years.) </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/cuscir13_032.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 32/2013-Cus., Dated: August 16, 2013 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Double Custom Duty paid due to system error - Refund </font></strong></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MANY</strong> a time, customs duty is paid against one BE online as well as through designated branch/online both the times. In such a scenario, one of them has to be returned to the payer (either importer or a CHA, as the case may be). Such excess duty payments are not being refunded at all nor modalities informed for getting this money back.. This was a point raised in the Open House Meeting of Mumbai Customs recently in which all the three Chief Commissioners were present. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. Mohan Nihalani, President, AIIEA requested that in case double duty payment, the excess deposit lying with the Customs should not be treated as duty and should not be subjected to procedure of scrutiny of unjust enrichment under section 27 of the Customs Act, 1962. The trade pointed out that in Air Cargo Complex the officers insist unjust enrichment certificate for refund of double duty refund.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems the Chief Controller of Accounts of CBEC had some objections. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anyway the Chief Commissioners informed the Trade that once duty is deposited in Consolidated Fund of India, it could be refunded by following the procedure of Section 27 of the Customs Act, 1962 only. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The trade was requested to submit Chartered Accountant Certificate for compliance with regards to principle of unjust enrichment. On being pointed out by trade that field staff is asking balance sheet in cases of refunds of double duty payment, Mr.A.K.Kaushal, Chief Commissioner of Customs, Zone I asked to bring such matter in the knowledge of Commissioner/Chief Commissioner concerned. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The matter is settled and the point closed. Amen.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/Notice_JNPT.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mumbai I Chief Commissioner of Customs F NO.S/I-22(02)/2013-CCO-I, Dated: August 20, 2013</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">'weak' mention about time bar - No ROM </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> Revenue appeal, the Bench had held that the respondent is not eligible for benefit of Notification no. 12/2003-ST and is liable to discharge Service tax liability on the gross amount charged on the transaction for the period on or after 16.6.2005 along with interest thereon in terms of the provisions of the Finance Act, 1994. In the said order, it was further mentioned that the respondent would also be eligible to take <em>CENVAT credit</em> of the excise duty/CVD, if any, paid on the materials used for the retreading service in accordance with law; that since the issue involved interpretation of law and there were conflicting views on the subject matter, imposition of penalty was not warranted and the same was set aside and appeal was disposed of in the above terms. We reported this as <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk1NTA=" target="_blank"><font size="1">2013-TIOL-1261-CESTAT-MUM</font></a></strong>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the respondent is before the CESTAT with a ROM application and submits that the Bench did not consider the aspect of limitation while passing the order and it is prayed that the submission of time bar be considered and a fresh order be passed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench observed - </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“4. We have perused the cross-objection dated 24.3.2012 filed by the respondent in this particular case. On perusal of the cross objection, it is seen that there is no whisper of any time bar of demand raised by the appellant in the said cross-objection. Only a side heading is given indicating that there was no intention to evade any Government taxes. Other than this, there is no mention of the demand being time barred and if so, what is the demand involved for the period beyond the normal period of limitation. </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The learned Counsel submits that <font color="#FF0000">he had “weakly” mentioned</font> about the time bar aspect <font color="#FF0000">during his oral submissions</font>. Inasmuch as the plea of time bar was not taken before this Tribunal at the time of hearing of the appeal, either in the cross-objection filed by the appellant or at the time of hearing, we do not find any infirmity in the order passed by the Tribunal. Consideration of an issue which was not raised before us would amount to “review” of our own order, which is not permissible. Accordingly, the ROM application is dismissed as devoid of merits.” </font></em></p> </blockquote> <p><em><font color="#993333" size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, that ‘he' was someone else!</font></em></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk3ODA=" target="_blank">2013-TIOL-1345-CESTAT-MUM </a></font></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Death or Life for Convict? </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">'<strong>DEATH</strong> and if not life', 'death or life', ‘life and if not death', is the swinging progression of the criminal jurisprudence in India as far as capital punishment is concerned. The Code of Criminal Procedure, 1898,under Section 367(5) reads: </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"If the accused is convicted of an offence punishable with death, and the Court sentences him to any punishment other than death, the Court shall in its judgment state the reason why sentence of death was not passed."</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, when the new Code of Criminal Procedure was enacted in the year 1973 (hereinafter referred to as‘the Cr.PC'), a paradigm shift was introduced, making it mandatory for Courts to state special reasons for awarding death sentence, under Section354(3), which reads as follows: </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"When the conviction is for an offence punishable with death, or, in the alternative, with imprisonment for life or imprisonment for a term of years, the judgment shall state the reasons for the sentence awarded, and, in the case of sentence of death, the special reasons for such sentence."</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the words of<em> Krishna Iyer J. in Ediga Anamma vs. State of Andhra Pradesh</em>: </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"20. The unmistakable shift in legislative emphasis is that life imprisonment for murder is the rule and capital sentence the exception to be resorted to for reasons to be stated. …"</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now life imprisonment is the rule and death, is the exception. </font></p> <p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(from a Supreme Court judgement delivered yesterday)</font></em></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"></font></strong></p> <p><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise</font></strong></font></p> <p><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENVAT - Consequent upon demand confirmed, R&D unit paying duty and Tractor unit taking credit on supplementary invoices - Credit denied by citing rule 7(1)(b) - Whether credit is admissible or not is to be decided at time of final hearing - Stay granted: CESTAT </strong></font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE a</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">pplicants have two units, one is R&D unit and the other is tractor unit. Some parts are being manufactured in R&D unit, which are being transferred to tractor unit. When the goods were cleared by R&D unit to tractor unit, certain expenses were not included in the assessable value as per CAS-4. </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 remedial amendments are normally not retrospective in nature and thus amendment to Sec 40(a)(ia) is not retrospective - YES: Delhi HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the case of assessee there was late deposit of TDS. In the assessment proceedings AO observed that tax deducted at source prior to February, 2008 was required to be deposited by March, 2008 and TDS deducted in the month of March, 2008 had to be deposited before filing of the return. In such case assessee would not be entitled to expenditure actually incurred and would be disallowed and added back in the profit and loss account. CIT (A) confirmed the order of CIT (A). ITAT allowed the appeal of the assessee as the amount was paid much before the date on which return of income u/s 139(1) had to be filed. The issues before the Bench are - Whether the amendments made to Section 40(a)(ia) by Finance Act, 2010 is retrospective in effect as it is only a procedural change in the Act and Whether remedial amendments are normally not retrospective in nature. And the verdict goes against the 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">Marriage as social institution existed much before religions came into being and, therefore, it is futile to argue that marriage is religious function - explanation inserted by Finance Act, 2007 is only by way of abundant caution and, therefore, insertion of same does not affect the levy of Service Tax on Mandap Keeper Service rendered in connection with marriages - ST payable: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> law itself recognizes registered marriage as a legally valid form of marriage and there is no religious sanctity attached to such registered marriages. Therefore, the mode of conducting the marriages either by following religious rituals or otherwise does not make marriage a ‘religious function'. Therefore, following the decision of the Tribunal in the case of Shri Gujarati Samaj Bhavan, it is held that the marriage is a social function and not a religious function. </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 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"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p> </body> </html>