TIOL-DDT 2543 · 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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><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 color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=20079"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2014_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="250" height="123" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font></strong></s>TIOL-DDT 2543</font><br> 20 02 2015<br> Friday </strong></font></p> <p align="center"><em><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600">EOUs - No Special Permission from Development Commissioners</font></strong></font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Mumbai Commissioner of Customs in a recent Public Notice had stated: <strong>(<a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjI3MzE=" target="_blank">DDT 2534 - 09 02 2015</a>) </strong></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The facility of duty exemption is available to the EOU/STPS/EHTP as per the Letter of Permission (LOP) issued by the Development Commissioner. However, quantity and goods of such class and description eligible for duty exemption are to be restricted as per the particulars mentioned in each Procurement Certificate (PC) issued by the Central Excise authorities. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Instances have come to the notice that procurement certificate have been issued even for those items which were not mentioned in the LOP. Further, many times import details do not correspond with the goods particulars mentioned in the PCs in terms of description and quantity. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Development Commissioner of an SEZ seems to have a different view. The Development Commissioner of Visakhapatnam SEZ, who is the Development Commissioner for the two States of Telangana and Andhra Pradesh, in a letter to the Chief Commissioners of Customs and Central Excise states, </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is with reference to the letters received from EOUs for seeking permission to import and /or procurement of goods from DTA for their authorized activities permitted in the Letter of permission (LoP) in view of the insistence of such a permission from office of the Development Commissioner by the field formations of Central Excise. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An EOU may import and /or procure from DTA or bonded warehouses in DTA / international exhibition held in India, without payment of duty, <strong>all types of goods</strong>, including capital goods, required for its activities, provided they are not prohibited items of import under ITC (HS). </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Issuance of Letter of Permission (LoP) and execution of Legal Agreement (LUT) as per Appendix 14-I-F of FTP, 2009-14 and duly accepted by the Development Commissioner authorizes an EOU to import and / or procure all types of goods including capital goods required for its activities mentioned in the Letter of Permission into their factory in terms of the above said rule position. However, the import/procurements shall be for the values mentioned in the said LUT and subject to fulfillment of the Customs & Central Excise rules and procedures. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the above, he has requested the Chief Commissioners that<em> the field formations of Central Excise may not insist for any special permission from the Development Commissioner, VSEZ for import and /or procurement of goods from DTA by the EOUs for their authorized activities mentioned in the Letter of Permission/ permissions given under broad banding granted by the Development Commissioner . </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the difference between the Revenue Department and the Commerce Department. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A development Commissioner once remarked that the SEZ authorities are like a mother - wants the children to grow and be happy, while Customs is like a father - wants to discipline the children. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTczNzk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Visakhapatnam SEZ Development Commissioner's Letter dated: December 12, 2014 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Customs - New Exchange Rates from Today </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified new exchange rates for Imported Goods and for Export Goods with effect from 20 February 2015. The US Dollar is 62.80 rupees for imports and 61.80 rupees for exports. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc2OTk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.25/2015 - Cus.,(N.T.), Dated: February 19, 2015 </font></strong></a></p> <p align="center"><font face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600" size="3">Guidelines on Import of Gold by Nominated Banks/ Agencies - RBI Clarifies </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNDER </strong>the 20:80 Scheme introduced in August 2013, at least one fifth, i.e., 20%, of every lot of gold imported into the country was to be exclusively made available for the purpose of exports and the balance for domestic use.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In November 2014, the Government decided to withdraw the 20:80 scheme and restrictions placed on import of gold. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Clarifications have been sought on some of the operational aspects of the guidelines on import of gold consequent upon the withdrawal of 20:80 scheme. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, in consultation with the Government, RBI has issued the following clarifications: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The obligation to export under the 20:80 scheme will continue to apply in respect of unutilised gold imported before November 28, 2014, i.e., the date of abolition of the 20:80 scheme. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Nominated banks are now permitted to import gold on consignment basis. All sale of gold domestically will, however, be against upfront payments. Banks are free to grant gold metal loans. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Star and Premier Trading Houses (STH/PTH) can import gold on DP basis as per entitlement without any end use restrictions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) While the import of gold coins and medallions will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins and medallions are not being removed. </font></p> </blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc2OTg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Circular 79/RBI., Dated: February 18, 2015</font></strong></a></p> <p align="center"><font color="#006600" size="3"><strong><em><font face="Georgia, Times New Roman, Times, serif">CBDT - Request for Exchange of Information from field offices of time barring assessment cases</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> had in a letter dated 6th January 2015 (<a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjI0NzQ=" target="_blank"><strong>DDT 2512 - 07 01 2015</strong></a>) requested the officers from the field to send all requests for exchange of information from foreign countries in cases getting barred by limitation on 31.03.2015 to the FT&TR Division latest by 15th February, 2015. If any such request has not been sent, Board wants the requests to be sent latest by 6th March 2015. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board further wants the field officers to note that extension of time for completing assessment is available only when the reference is made by the Competent Authority [Joint Secretary (FT & TR)-I or II, as the case may be]. Sections 153 and 153B of Income Tax Act, 1961 provide that in computing the period of limitation, the period commencing from the date on which a reference for exchange of Information is made by an authority competent under the agreements referred to in sections 90 or 90A(i.e. DTAA, TIEAs, Multilateral Convention) and ending with the date on which the information so requested is received by the Commissioner or a period of one year, whichever is less, shall be excluded, when the reference is made by the Assessing Officer. No such extension is available unless the reference received by FT & TR Division from field formations is made by the Competent Authority. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc3MDI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT F.No.500/56/2014-FT&TR-IV/290., Dated: February 19, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">CBEC Wants a JS (Customs) </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> proposes to fill up a post of Joint Secretary (Customs) in the CBEC. Commissioner Level officers are eligible to apply for this post. Board invites applications from eligible and willing officers. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc3MDM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Letter in F.No.-A.35017/17/2015-Ad.II ,. Dated: February 19, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Budget 2015 - What's cooking? Halwa is ready </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MORE</strong> than a hundred officers of the Finance Ministry are locked up in the cellar of the North Block from today - their mission - get the 2015 Budget printed. They will be allowed to go out only after the Finance Minister has finished reading his Budget speech in the Lok Sabha on 28th February 2015. As the FM finishes reading the budget, you can see these officers coming out like rockets - to be back in this mad mad world. </font></p> <p align="justify"><img src="http://www.taxindiaonline.com/RC2/image/stories/Halwa.jpg" alt="Legal Corner Icon" width="260" height="174" hspace="5" border="0" align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Just before the lock in there is a halwa ceremony which took place yesterday. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Halwa ceremony was attended by the Finance Minister, the MoS, Finance and Secretaries in the Finance Ministry apart from the Chairmen of the two Boards, CBEC and CBDT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Apart from the shocks and surprises revealed and concealed in the Budget, the Budget processes involve some elaborate ceremonies apart from the halwa one. The FM is traditionally required to pose for photographs pretending to give last minute touches to his budget speech. The Budget speech itself is prepared by a large team of officers and usually the Finance Minister goes through and approves every word - he has to do it sitting in his office; even he is not supposed to take the Budget speech home to read and correct. Of course a Finance minister could give the whole speech in a flash drive to his officers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the Budget Day, there is another photo op outside the North Block with the Finance Minister and his budget brief case. After that, the FM takes the budget to the President of India. After appraising the President about the Budget, the FM reaches the Parliament and there is a cabinet meeting inside Parliament, where the FM explains the highlights of his budget to the cabinet ministers; after that the Prime Minister accompanies the FM to the Lok Sabha. The FM says, "I rise to present the budget …… </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more<strong> DDT</strong></font></p> <p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice weekend. </font></strong></p> <div 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@tiol.in"><strong>vijaywrite@tiol.in </strong></a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></div> </body> </html>