TIOL-DDT 2309 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"
"http://www.w3.org/TR/html4/loose.dtd">
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body>
<p align="justify"><font size="2"><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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><strong><strong><strong><strong><strong><strong><strong><strong><strong><img width="115" height="125" border="0" align="right" src="image/ddt/10yearsDDT.jpg" alt="" /></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><strong><strong><strong><strong><strong><strong><strong><strong><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17063"><img width="175" hspace="5" height="120" border="0" align="right" src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" /></a></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></font><font size="2"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2309 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
</font></strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong>07.03.2014 <br>
Friday </strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Import of Gold by 'eligible passengers' - CBEC Instructions </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>has come to the notice of the Board that there has been a spurt in import of gold by eligible passengers through various airports in the recent past across the country. Further, it is also reported that there is no uniformity in clearance of such eligible passengers. At many airports, the engraved serial number of gold bars and tola bars are not mentioned in the baggage receipts when imported by the passengers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has taken note of the fact that, if this practice <strong>is </strong>followed, there is possibility of such documents being used by unscrupulous elements as cover documents for easy circulation of many more gold bars that are smuggled into the country. These documents may also be used to influence cases involving seizure of gold bars in areas other than Customs Area. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board invites attention to Notification No 12/2012- Cus dated 17.03.2012 as per which: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. gold in the form of bars and ornaments are allowed to be imported by 'eligible passengers' upon payment of 10% customs duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. As per the specified condition no. 35 of the notification, the duty is to be paid in the foreign currency and total gold so imported should not exceed 1 kg. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The notification prescribes that 'eligible passenger' means passenger of Indian Origin or a passenger holding valid passport issued under the Passport Act, 1967 who is coming in to India after a period of not less than 6 months of stay abroad. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Short visits, if any, made by the 'eligible passenger' during the aforesaid period of 6 months shall be ignored if the total duration of stay does not exceed 30 days. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Further, the benefit of notification is available only if the passenger has not availed of this exemption in any of such short visits. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has now directed the Commissioners of Customs/Customs and Central Excise having jurisdiction of airports to ensure the following: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The engraved serial number of gold bars must be invariably mentioned in the baggage receipt issued by Customs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) In case of gold in any other form, including ornaments, the eligible passenger must be asked to declare item wise inventory of the ornaments being imported. This inventory, duly signed and duly certified by the eligible passenger and assessing officer, should be attached with the baggage receipt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Wherever possible, the field officer, may, inter alia, ascertain the antecedents of such passengers, source for funding for gold as well as duty being paid in the foreign currency, person responsible for booking of tickets etc. so as to prevent the possibility of the misuse of the facility by unscrupulous elements who may hire such eligible passengers to carry gold for them. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board desires that the above instructions should be complied with scrupulously by field formations. Will this not hold up passengers? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see<strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17926">DDT 2121 - 06 06 2013 </a>and <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTkzOTk=">DDT 2261 - 30 12 2013 </a></strong></font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2014/cuscir14_006.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular No. 6/2014-Cus.,Dated: March 06, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Illegal import of hazardous and toxic wastes - Issue pending since 1995 -Customs directed to complete destruction by incineration in 60 days - complete apathy and inaction on the part of the officers - Disciplinary action to be initiated:- Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue is pending since 1995 - it is writ petition No. 657/95 and the Supreme Court had passed several orders, many of which were disobeyed with impunity by the Authorities. The Customs in Mumbai is holding 212 containers of waste oil - dangerous to the Nation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Customs Commissioner has now assured the Supreme Court that the process of incineration of the waste will start from 10th March, 2014. The Court expected the work to be completed by 10th May, 2014 as assured. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Apart from the disposal of this waste material, the Supreme Court wanted the Customs to take steps for recovery of the amount spent in this incineration process and other charges. The Customs authorities are directed to take necessary action against all those importers, shipliners and CFS(Custodians) responsible for dumping this waste material, and all those whoever are otherwise responsible for this. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court noted that there was <em>complete apathy and inaction on the part of the concerned officers. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court further observed, <em>"Prima facie there is a complete dereliction on the part of the concerned officers in not taking any action when these containers were lying in the JNPT area for years together. In fact they have been imported/bought from 1992 onwards. No orders of Court are required for incineration or deciding the responsibility for the authorities. <strong>It is only because the authorities concerned do not act in time </strong>that when some individual or organization interested in public cause, bring this issue to the notice of the Court, the Court has to give necessary directions."</em></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Do we need the Supreme Court to protect our environment? What is the Government doing? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To be fair, the CBEC was not exactly silent. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. In <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2003/cuscir066.htm" target="_blank">Circular No.66 /2003</a>, </strong>dated 28.7.2003, the CBEC referred to the above writ petition and advised the field that <em>in case of confiscationof goods, the ownership along with the attendant responsibilities will rest with the Central Government. Therefore, adjudicating proceedings in the case of hazardous waste should be kept in abeyance till the outcome of the writ petition filed before Hon'ble Supreme Court </em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2004/cuscir04_031.htm" target="_blank">Circular No. 31/2004</a><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2004/cuscir04_031.htm">,</a></strong> dated 26.04.2004, Board referred to the same writ petition and also referred to several circulars issued by the Board in this regard: </font></p>
</blockquote>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" width="4%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) </font></p></td>
<td valign="top" width="95%"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Board's letter F. No. 478/33/96-LC dated 17.9.97; </font></p></td>
</tr>
<tr>
<td valign="top" width="4%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) </font></p></td>
<td valign="top" width="95%"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 106 dated 22.12.2000; </font></p></td>
</tr>
<tr>
<td valign="top" width="4%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) </font></p></td>
<td valign="top" width="95%"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 60/97-Cus. dated 12.11.1997; </font></p></td>
</tr>
<tr>
<td valign="top" width="4%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) </font></p></td>
<td valign="top" width="95%"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 33/2001-Cus. dated 4.6.2001, and </font></p></td>
</tr>
<tr>
<td valign="top" width="4%"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) </font></p></td>
<td valign="top" width="95%"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 66/2003-Cus. dated 28.7.2003. </font></p></td>
</tr>
</table>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. With reference to the writ petition, Board again issued Instructions in <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2012/instruction12_007.htm" target="_blank">F.No. 405/2/2001-Cus.III </a>dated 04 09 2012 </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But nothing really happened and now perhaps destruction by incineration will happen before 10th May 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you the Supreme Court order today. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=19946" target="_blank">Breaking News </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>India initiates Safeguard Investigation on yarn </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> WTO release informs that India has initiated Safeguard Investigation on the product <em>"<strong>Bare Elastomeric Filament Yarn</strong>"</em> classified under Customs Tariff sub-heading nos. 54024400 and 54041100 of Chapter 54 of the Customs Tariff Act, 1975. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The investigation was initiated following the examination of the safeguard petition of the domestic industry (DI) alleging serious injury and threat thereof caused by increased import of the product into India. Relevant factors having significant bearing on the present deteriorating domestic industry, as claimed by DI, inter-alia, are: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The import of subject product has shown an increasing trend in absolute terms as well as the relative terms; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Capacity utilization of the domestic industry has declined in the most recent period; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Share of domestic industry in domestic consumption and domestic demand has fallen significantly; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Though sale of the domestic industry increased uptoQ1 of 2013-14 as compared to the preceding year 2012-13, it has decreased significantly from Q1 of 2013-14 to Q3 of 2013-14; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Profitability of the domestic industry has steeply deteriorated, leading to financial losses. </font></p>
</blockquote>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - New Exchange Rates from Today </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has notified new exchange rates for Imported Goods and for Export Goods with effect from 07 March 2014. The US Dollar is 62 rupees for imports and 61 rupees for exports. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Exchange rates were last notified on 20 February 2014. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2014/cnt14_015.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 15/2014-Cus (N.T.), Dated: March 06, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<strong>DDT Cartoon </strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Cartoon_2309.jpg" alt="" width="500" height="564" hspace="5" border="0" align="center"></font></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> - Monday's cases</font></strong></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs</strong> </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Project Import - materials imported for one unit of a specified project cannot be used elsewhere in any other unit or in any other project - Benefit of concessional rate of duty not available - Appeal dismissed: CESTAT by Majority</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants imported CRGO electrical steel sheets and electrolytic copper rods for the manufacture of transformers under Project Import Regulations, 1986 under heading No. 98.01 of the 1st Schedule to the Customs Tariff Act. The appellant also procured the same materials without payment of Customs duty under Duty Exemption Entitlement Scheme and also on payment of appropriate Customs duty. The appellant had undertaken 16 projects under which they imported the aforesaid raw materials on concessional rate of duty under heading 98.01 of the Customs Tariff as per the Project Import Scheme during 1995-99. In respect of imports under 4 projects, the assessment had been finalised. However, in respect of 12 projects, the assessments were provisional and were pending finalization. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An investigation was undertaken into the project imports which revealed that the appellant had imported raw materials in excess of the quantity required by them for manufacture of transformers for the specified project. </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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether expenditure incurred by assessee company on foreign studies of Director's son working as employee and furnishing bond to work for longer period after studies are over, is business expenditure u/s 37 - YES: High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee is an investment company. It had filed its return declaring loss at Rs. 2,08,72,440/- under the normal provisions and book profit at Rs. 1,35,42,270/- u/s 115JB. In the Profit and Loss Account annexed to the return of income, assessee had claimed a sum of Rs. 23,16,942/- as expenses incurred under the head “Education & Training Expenses”. These expenses had been incurred by the assessee on higher education of ShriDushyantPoddar, an employee of the company, who happens to be the son of the Directors ShriLalitPoddar and SmtSarojPoddar, for undertaking an MBA Course in the U.K. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issues before the Bench are - Whether the expenditure incurred by the assessee company on foreign studies of its Director's son working as an employee and furnishing bond to work for longer period after studies are over, is allowable as per provisions of Sec 37; Whether such expenditure is allowable even if higher studies are pursued in a different subject from that of the business of the assessee and Whether the burden of showing that expenditure is incurred wholly and exclusively for the purpose of business u/s 37(1) is on the assessee. And the verdict goes in favour of the assessee. </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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Plastic films, polyester films, BOPP films are subjected to printing using rotogravure cylinders - Later, these printed materials are laminated by binding of two or more layers of same or different substrates with help of bonding agent and the laminates so obtained are then taken for slitting process to get proper size in form of coils -process amounts to manufacture: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellants are engaged in manufacturing of packaging material falling under Chapter 39 and other final products, falling under Chapters 47,48, 74, 76 and 84 of the Central Excise Tariff Act, 1985. They also avail CENVAT Credit of duty paid on the inputs/raw materials and capital goods used in or in relation to the manufacture of the above final products. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant have been clearing the aforementioned packaging materials pursuant to manufacture on payment of excise duty under sub-heading 39.20 and 39.21 for about two decades. The products manufactured by the appellant firm were packing materials for their buyers. Some of these products are used by buyers as wrappers for their products and the rest would be used for making pouches for packing of the other products. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our Columns Monday for the judgements </font></strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Mondaywith more <strong>DDT </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Have a nice weekend. </strong></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>