TIOL-DDT 2230 · 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 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 2230</font><br>
13.11.2013<br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBI itself pretends to be 'helpless victim' when it pleads for more powers and greater autonomy </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><img src="http://www.taxindiaonline.com/RC2/image/stories/CBI_DDT.jpg" alt="Legal Corner Icon" width="374" height="268" hspace="5" border="0" align="left">THE</strong> CBI Director Ranjit Sinha welcomed the <em>distinguished parliamentarian, brilliant lawyer and visionary Finance Minister of India</em>, P. Chidambaram to address the CBI International Conference on “Evolving Common Strategies to Combat Corruption and Crime” yesterday. The CBI Director lauded the FM's<em> in-depth knowledge of laws and immense capacity to lead from the front</em>.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a lighter vein, the FM said, sometimes the CBI itself pretends to be a “helpless victim” when it pleads for more powers and greater autonomy!</font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Policy Making vs Policing: The FM said,</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"I would caution investigating agencies to respect the line that divides policy-making and policing. An offence is committed when a prescribed rule of conduct is violated. If there is no prescribed rule, or if there is no violation of a prescribed rule, there is no offence. It is not the business of the investigating agency to lay down a rule of conduct; nor is it the business of the investigating agency to presume a rule of conduct. Even where a rule has been prescribed, if there is a policy behind that rule, it is not the business of the investigating agency to question the wisdom of that policy or to suggest a different policy that would be better in the view of the investigating agency. The investigating agency must confine itself to the question whether there has been a violation of a laid-down rule of conduct. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One good test whether a rule of conduct has been wilfully violated is to ask whether there is a speaking order in support of the decision that is the subject matter of investigation. Ordinarily, a speaking order should be a complete answer to a criminal investigation. A speaking order may be right or wrong on the merits of the case, but as long as there are reasons given in support of a decision, such reasons should ordinarily rule out any criminal state of mind. Unfortunately, there are a number of cases where investigating agencies, and other authorities like the C&AG, have overstepped their limits and attempted to convert bona fide executive decisions into either crimes or abuse of authority."</font></em></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">After finding <em> Prima facie</em> case in favour of assessee, Tribunal orders pre-deposit of service tax and interest! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YES.</strong> You read it right. After going through this order, we initially thought our typist made a mistake in the last part of the order. We checked it with the hard copy several times, tried to find out if any ROM was filed. After ruling out all such possibilities, we decided to carry this. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue involved is demand of service tax on services received from outside India under reverse charge. Show cause notices were issued to the petitioner proposing levy of service tax, interest and penalties. According to the show cause notice, the petitioner received two categories of Services, both classified as Business Auxiliary Service. Corporate Guarantee was one category of service, received by the petitioner from an overseas corporate entity M/s Olam International ltd., Singapore, of which the petitioner is a 100% subsidiary. Another category of service is agency commission remitted by the petitioner in foreign currency for facilitating export of cotton, rice, cashew and sesame claimed to be agricultural produce by the petitioner, a claim contested by Revenue. After due process of law, the demands were confirmed with interest and penalty. The petitioner filed stay application against the adjudication order. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In respect of agency commission paid by the petitioner to agents abroad for services provided in relation to the export business of the petitioner's agricultural produce, the petitioner claimed benefits of exemption Notification No.8/2004-ST dated 9.7.2004, a notification issued in modification of an earlier Notification No.13/2003-ST dated 20.6.2003. The claim for exemption was negatived by the adjudicating authority. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service tax liability confirmed in respect of corporate guarantee in the two appeals is Rs.2,83,04,550/- and Rs.66,77,289/- respectively.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal prima facie held – </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The adjudication order is in error to the extent benefits of exemption under Notification No.8/2004-ST for the agency commission paid by the petitioner was denied. The petitioner, inter alia exported rice, sesame, seeds cashew nuts etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On true and fair construction of the provisions of Notification No.8/2004-ST, it is clear that all agricultural products enumerated in the inclusive part of the definition such as cereals, pulses, fruits, nuts, rice, etc per-se are agricultural produce. The further clause in the definition of 'agricultural produce' which brings agricultural produce processed by the cultivator also into the ambit of agricultural products is not applicable nor operates to define products enumerated in the inclusive portion of the definition. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the above prima facie construction, the conclusion by the adjudicating authority that commission paid by the petitioner to its overseas agents for facilitating export of rice, sesame seeds, cashew nuts etc. is not entitled to the benefit of exemption Notification No.8/2004-ST, is unsustainable.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With regard to Corporate Guarantee, the Tribunal held – </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Singapore corporate entity was neither a Bank nor had provided a bank guarantee. It provided a guarantee on the basis of its own resources assets to Indian banks to facilitate lending of money by Indian banks to the petitioner. This would not, constitute bank guarantee within the meaning of the expression in Section 65(12) of the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Counsel for the petitioners refers to interim orders by this Tribunal granting complete waiver of pre-deposit where service tax apart from interest and penalties were assessed in respect of corporate guarantees provided by the appellant therein to a nationalized bank for loans availed by another entity. Revenue had assessed liability to "Business Support Services" (BBS) during 1.5.06 to 31.12.07 in view of the interim order in <em>Kaveri Agri Care Pvt. Ltd. vs. C.S.T., Mysore </em><font size="1"><strong>(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2011/2011-TIOL-378-CESTAT-BANG.htm">2011-TIOL-378-CESTAT-BANG</a>)</strong></font>, this Tribunal found considerable merit in the submission of the appellant therein that corporate guarantee provided to a bank for loans taken by another entity falls within Section 65(12) of the Act and not under BSS as defined in Section 65(104(c). We are persuaded to follow this interim order for the reason that provision of corporate guarantee clearly falls outside banking or financial services. </font></p>
</blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And finally, the Tribunal ordered: </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the aforesaid analyses, we grant waiver of pre-deposit and stay all further proceedings pursuant to the adjudication orders impugned in these two appeals, <strong>on condition that the petitioner remits Rs.2,83,04,550/- plus proportionate interest</strong> on this amount in ST Appeal No.57100/2013; and the petitioner in ST Appeal No.57667/2013; shall remit Rs.66,77,289/- along with proportionate interest thereon, within six weeks from today and report compliance by 5.11.2013. In default, the appeals shall stand dismissed for failure of pre-deposits.</font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please See <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTA2OTM=" target="_blank">2013-TIOL-1697-CESTAT-DEL</a></font></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Values of Gold Reduced – Other Items remain unchanged </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Government has decreased the Tariff values of Gold from 440 USD to 417 USD per 10 gms with effect from yesterday. There is no change in the tariff value for other items. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff values as on <strong>31.10.2013</strong> and with effect from <strong>12.11.2013</strong> 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 align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tonne) <br>
from 31.10.2013 </font></strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) <br>
from 12.11.2013 </font></p></td>
</tr>
<tr bgcolor="#E2B6CA">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font color="#FF0000"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></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 color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">849</font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">849 – No change </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></strong></p></td>
<td valign="top" bgcolor="#E2B6CA"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10 </font></p></td>
<td valign="top" bgcolor="#E2B6CA"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td valign="top" bgcolor="#E2B6CA"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">893</font></strong></font></p></td>
<td valign="top" bgcolor="#E2B6CA"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">893 – No change</font></strong></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 color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">871</font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">871 – No change </font></strong></font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#E2B6CA"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></strong></p></td>
<td valign="top" bgcolor="#E2B6CA"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top" bgcolor="#E2B6CA"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td valign="top" bgcolor="#E2B6CA"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">897</font></strong></font></p></td>
<td valign="top" bgcolor="#E2B6CA"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">897 – No change </font></strong></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 color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">900</font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">900 – No change </font></strong></font></p></td>
</tr>
<tr bgcolor="#E2B6CA">
<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 color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">899</font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">899 – No change </font></strong></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 color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1006</font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1006 – No change </font></strong></font></p></td>
</tr>
<tr bgcolor="#E2B6CA">
<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 color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3840</font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3840 – No change </font></strong></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 color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2556</font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2556 – No change </font></strong></font></p></td>
</tr>
</table>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 2</strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 31.10.2013 </font></strong></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 12.11.2013 </font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">440</font></strong> per 10 grams </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">417 per 10 grams </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"><strong><font color="#FF0000">738</font></strong> per kilogram </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">738 per kilogram – –<strong><font color="#FF0000"> No change </font></strong></font></p></td>
</tr>
</table>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 3</strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value (USD Per Metric Tons) from 31.10.2013 </font></strong></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value (USD Per Metric Tons) from 12.11.2013 </font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2)</font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3)</font></strong></p></td>
<td valign="top"><p align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">(5)</font></strong></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </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">080280 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Areca nuts </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1707</font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1707 – <strong>No Change</strong> </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_110.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 110/2013-Cus (NT), Dated: November 12, 2013</font></strong></a></p>
<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Enhancement in registered quantity for export of sugar </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CONDITIONS</strong> and modalities for registration of contracts for export of sugar with DGFT were given in the two policy circulars - 62(RE-2010)/2009-14 dated 14.05.2012 & 63(RE-2010)/2009-14 dated 16.05.2012. One of the conditions [condition at Para 2(i) of Policy Circular No. 63 dated 16.05.2012] was the upper limit of 25,000 MTs (Twenty five thousand metric tons) per application for registration. This limit is now enhanced to 50,000 MTs (Fifty thousand metric tons). Accordingly, an exporter can seek registration of upto 50,000 MTs of sugar.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Applications for registration of contracts through online system are mandatory as per Trade Notice No. 3 of 28.05.2013.</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2013/dgft13cir010.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 10 (RE-2013)/2009-14, Dated: November 12, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">When Rape is inevitable...</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBI Chief landed himself in a deep controversy yesterday with his comments on rape. He also had a comment on schemes like VCES. He said,<em> if the government can declare<strong> schemes of voluntary disclosure for black money</strong></em>, <em>so what's the harm in legalising betting?</em></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nothing, only you can't be the CBI chief and compare it with enjoying rape...</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Thursday's cases</font></strong></font></strong></font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left">Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Chartering of tankers for transportation of LNG – Deemed sale – not taxable under ‘Supply of Tangible Goods' – No tax under reverse charge – Corrigendum to Adjudication order not valid: CESTAT</font></strong></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax – Section 65(105)(zzzzj) - ‘Supply of Tangible Goods' Chartering of tankers for transportation of LNG – Deemed sale – not taxable under ‘Supply of Tangible Goods':</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> the transactions in issue amount to transfer of the right/ to use tangible goods, with possession and effective control of such goods, in favour of the assessee by owners of the tankers. These transactions fall within the ambit of the exclusionary clause of Section 65(105) (zzzzj) of the Act and are therefore immune to the liability to service tax. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Corrigendum to Adjudication order not valid:</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Since the corrigenda were issued without notice or opportunity to the petitioner held that these are unsustainable. In any event since it is already held that the transactions in issue do not fall within the taxable service, the corrigenda issued amending the adjudication order, with regard to interest or penalties components would also be invalid. </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 retiring partner takes only money towards value of share and there is no distribution of capital assets among partners, even then it can be said that there is transfer of capital assets and partnership firm is liable to capital gains u/s 45(4) - NO: HC Full Bench </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> sole issue before the Full Bench of the HC is - Whether when a retiring partner takes only money towards the value of his share and there is no distribution of capital assets among the partners, even then it can be said that there is transfer of capital assets and the partnership firm is liable to capital gains u/s 45(4). And the verdict goes against the Revenue. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Applicant importing Polymer by classifying under Ch. 39 and taking CENVAT - after repacking, same is cleared under Ch. 38 on payment of duty on Transaction value - Revenue alleging that no chapter note exists in Ch.39 deeming such activity as manufacture and applicant should have reversed credit in terms of rule 3(5) of CCR, 2004 - activity cannot be considered as manufacture as per provisions of s. 2(f) of CEA, 1944 – pre-deposit ordered: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> applicants are engaged in the manufacture of lubricants and chemical additives and the raw material for the same is polymer. The applicants are importing polymer on payment of appropriate duties. Certain quantities of duty paid imported polymer were cleared, after re-working and repacking,on payment of duty on the transaction value. Revenue says this is wrong inasmuch as since the applicants were clearing the duty paid imported polymer as such, the applicants are liable to reverse the credit availed in respect of such polymer as per the provisions of Rule 3(5) of the CENVAT Credit Rules, 2004. Consequently, a demand of Rs.1,16,95,872/- came to be confirmed by the CCE, Belapur along with interest and penalties. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Tomorrow for the judgements</font></strong></p>
<p><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>
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