TIOL-DDT 2685 · 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 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 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=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font><font color="#663399" size="3">TIOL-DDT 2685</font><br> 15 09 2015<br> Tuesday</strong></font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Safeguard Duty Imposed on HR Steel Coils - Will Aluminium be next? </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RESPONDING</strong> to the representations from the domestic steel industry, the Government has imposed a safeguard duty of 20% Adv on the imports of "Hot-rolled flat products of non-alloy and other alloy Steel in coils of a width of 600 mm or more" falling under heading 7208 or tariff item 7225 30 90 of the Customs Tariff. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DG, Safeguards has in his preliminary findings come to the conclusion that increased imports of subject goods into India has caused and threatened to cause serious injury to the domestic industry/producers of subject goods, and any delay in application for provisional Safeguard duty would cause damage which would be difficult to repair, necessitating the imposition of provisional safeguard duty on imports of subject goods into India, and accordingly has recommended the imposition of provisional safeguard duty.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The duty shall be effective for a period of 200 days from yesterday. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is clarified that the safeguard duty is not applicable for the following products: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) Hot-rolled flat products of steel with nominal width less than 600mm; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) API grade steel;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) Silicon electrical steel;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) Hot-rolled flat products of steel of spring steel quality;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) Hot-rolled flat products of steel which are electrolytically plated or coated with zinc; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">f) Hot-rolled flat products of steel otherwise plated or coated with zinc; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">g) Hot-rolled flat products of stainless steel. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will the ailing steel Industry in India recover with this safeguard duty? </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg1MjY=" target="_blank">Notification No. 2/2015-Customs (SG)., Dated September 14, 2015</a></font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Will Aluminium follow? </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Aluminium industry in India is facing a severe crisis due to flow of cheap imports from China. After Steel cheered the safeguard duty, captains of the Aluminium Industry belonging to BALCO, HINDALCO and NALCO met the Finance Minister and represented to him the need to impose at least 10% duty on aluminium imports. It is reported that imports of aluminium from China has more than trebled in the last year. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">BALCO, a subsidiary of Vedanta Ltd has already given notice of the closure of its Korba unit in Chattisgarh. The CEO of BALCO in a Press Statement said, "The closure of the rolling mill is in the backdrop of a crash in global aluminium prices and the prohibitive cost of coal to run our power plants. Worldwide there has been a fall in energy cost but for BALCO the absence of linkage coal and regulatory issue for starting our coal mines is making operations economically unviable. Although aluminium prices have plunged globally in the last few months, power costs are rising in India, a contrarian trend making the cost of production increasingly unviable for primary aluminium manufacturers." </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Customs - Acceptance of bonds and closing of files for Advance authorisation is complex and lengthy process</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a recent PTFC meeting in JN Customs an importer raised an issue: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#C1DFE8">Acceptance of bonds and closing of files for Advance authorisation is complex and lengthy process. Letters submitted by Exporters or EODC received online are not getting registered in file hence closures are getting delayed resulting in live consignments held up. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Commissioner replied:</strong> The Execution of BG/Legal undertaking for Advance Authorisation/ EPCG Authorisation is done as per the statutory provision and in accordance with the terms and conditions laid down by the Notification under which the respective authorizations are issued. Para 4.47 (b)(i) and 4.47(b)(ii) of the Hand Book of Procedures I, mentions that a copy of EODC will also be endorsed by Regional Authority to Customs at the Port of Registration by post till system of transmitting these through EDI under message exchange between DGFT and CBEC is introduced. Hence the LUT/BOND given by authorization holder </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#E6B8B7">can not be cancelled merely on the basis of online information available on DGFT website regarding EODC. </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EODCs are required to be submitted in terms of conditions of concerned exemption Notification and therefore it is statutory requirement.</font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Stamp duty on High Seas Sales Contracts </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> seems the Import Noting Department of the Mumbai Customs has been insisting on <em>‘High Seas Sale</em>' contracts to be made on stamp paper of Rs. 500/-. This is because recently the Maharashtra Government hiked the stamp duty on "Customs & Excise Bonds" from Rs. 100/- to Rs.500/-. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner clarified that the <em>'High Seas Sale</em>' is an agreement of sale between two private entities and not a customs & central excise Bond, as covered by the Maharashtra Stamp Act. He also informed that the Import Noting section is now not insisting on Rs. 500/- Stamp Paper for "High Seas Sale" agreement and is accepting Rs. 100/- Stamp Paper. </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Review of Mechanisms to ensure probity among Government Servants - Sensitive Posting?</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a meeting taken by the Cabinet Secretary on 10.08.2015 with senior officers of different Ministries on mechanisms to adopt to ensure probity among Government Servants, it has been emphasized that rotation needs to be carried out in respect of sensitive posts and non-sensitive posts and review and screening of officers under FR 56(J) within the Ministries and DOPT shall monitor implementation and obtain compliance from all Ministries in this regard. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">FR 56(J) is the the rule under which Government servants can be sent on compulsory retirement. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Government wants all ministries and departments to carry out rotation of officers in respect of sensitive and non-sensitive posts and also to identify the bad elements to be sent home. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFBE7D">What is a sensitive posting? </font></strong></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A sensitive position is any post whose occupant could cause adverse effect to the integrity and functioning of the institution by virtue of the nature of his/her responsibility. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But now in Indian Government, plainly speaking, a sensitive post means one in which you can make money. This fact is openly and officially acknowledged and transfers are accordingly made or transacted. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg1MjM=" target="_blank">DoPT Office Memorandum in F.No.C-11020/1/2015-Vig., Dated September 14, 2015 </a></font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">FTP - Import Apples only through Nhava Sheva </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DGFT has imposed a policy condition that import of apples covered under EXIM Code 0808 10 00 is allowed only through Nhava Sheva port. This is a sort of non tariff barrier. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg1MjA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 21/2015-2020 ., Dated September 14, 2015</font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">FTP - Modification in IEC - Online Only </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>DGFT informs that henceforth all modifications in e-IECs/ IECs would be done online only. Applicants seeking modification in their IECs may log on to dgft.nic.in and click on Importer Exporter Code (IEC) under Quick Links and select "<em>Modify your IEC</em>" to amend their e-IECs and IECs in physical format. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The fees for modifications in e-IEC's/IECs is Rs.200/- and fees can be paid online through net banking or through credit/debit cards. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg1MjE=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 36/2015-2020., Dated September 14, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Jaitley Promises Predictable Tax Regime </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINANCE</strong> Minister Arun Jaitley yesterday said that his Government is making every effort to put in place a predictable and fair tax regime.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He admitted that there was need for several internal changes like: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. quick decision-making,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. stable policies,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. predictable tax regime and</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. improvement in ease of doing business</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will his babus allow these? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. Jaitley said that his Government is already taking efforts to resolve several legacy issues that have brought adverse reputation to the Indian tax regime. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He further said that<em> the government has tried to resolve the legacy issue by governmental decisions, legislation or <strong>even</strong> by accepting judicial mandate</em>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is exactly the problem - the babus who helped in drafting his speech must have considered accepting judicial mandate as a great favour to society. Every babu thinks that he has the discretion to accept or reject a judicial mandate. If they had a little respect for judiciary, they would not take the same issue again and again to the highest court. The tax regime in India is pretty predictable - whatever you do or don't, you are sure to get a notice and a first stage order against you. </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Fitness of Advocate - Should Bar Council Test? </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHAT</strong> do you do if you find that your advocate has not presented your case properly before the Court? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a recent case before the Supreme Court, the accused had pleaded that his counsel was not competent and had not effectively cross-examined the witnesses. He had changed his lawyer and wanted to recall the witness who had been earlier cross examined. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court made some interesting observations: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ It can hardly be gainsaid that fair trial is a part of guarantee under Article 21 of the Constitution of India. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ It is further well settled that fairness of trial has to be seen not only from the point of view of the accused, but also from the point of view of the victim and the society. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In the name of fair trial, the system cannot be held to ransom. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The interest of justice may suffer if the counsel conducting the trial is physically or mentally unfit on account of any disability. The interest of the society is paramount and instead of trials being conducted again on account of unfitness of the counsel, reform may appear to be necessary so that such a situation does not arise. Perhaps time has come to review the Advocates Act and the relevant Rules to examine the continued fitness of an advocate to conduct a criminal trial on account of advanced age or other mental or physical infirmity, to avoid grievance that an Advocate who conducted trial was unfit or incompetent. This is an aspect which needs to be looked into by the concerned authorities including the Law Commission and the Bar Council of India. </font></p> </blockquote> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Gujarat - the Best State to do Business </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACCORDING</strong> to a World Bank Report released yesterday, Gujarat is the best State in India to do business, followed by Andhra Pradesh, Jharkhand, Chattisgarh and Madhya Pradesh. The areas covered are: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tax General, VAT Registration, CST Registration, Construction Permits, Land Allotment, Labour general, Infrastructure general, Environment general, Shops & Establishment registration, Building plan approval and Factory license registration. </font></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><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to<strong> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> <a href="mailto:vijaywrite@tiol.in">vijaywrite@tiol.in </a></strong></font></p> </body> </html>