TIOL-DDT 2708 · the untouched capture
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<p><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" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2708</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
20 10 2015 <br>
Tuesday </font></strong></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Income Tax - email based communication for paperless Assessment Proceedings </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>order to improve the taxpayer services, enhance the efficiency and to usher in a paperless environment for carrying out the assessment proceedings, CBDT has decided to initiate the concept of using email for corresponding with taxpayers and sending through emails the questionnaires, notice etc. at the time of scrutiny proceedings and getting responses from them using the same medium on a pilot basis. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This would eliminate the necessity of visiting the Income-tax Offices by the taxpayers, particularly in smaller cases, involving limited issues and where taxpayer is able to provide details required by the AO without necessitating his physical presence. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Steps are being taken by CBDT to devise suitable mechanism for setting up a standardized platform for making such email based communications between the taxpayer and the Income-tax Department seamless and user friendly. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To start with, it has been decided to launch a pilot project in this regard in five non-corporate charges at Delhi, Mumbai, Bengaluru, Ahmedabad & Chennai stations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Initially, 100 cases for e-hearing would be identified in each of these charges and major part of assessment processing would be conducted in electronic mode. Also, the cases covered under the pilot project should be those which have been selected for scrutiny on the basis of AIR/CIB information or non-matching with 26AS-data. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consent of taxpayers should be obtained in the beginning and cases of only willing taxpayers be considered under the pilot project. The officers of the Department, through their <strong>official e-mail IDs</strong> , can interact with the taxpayers at their e-mail IDs as mentioned in the respective returns of income. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the Principal Chief Commissioners to take necessary steps for initiating the pilot project on top priority. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2NjU=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Letter in F. No. 225/267/2015-ITA-II., Dated: October 19, 2015</font></strong></a></p>
<p align="center"><em><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600">Customs Duty on Wheat - Increased </font></strong></font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEAT</strong> was charged to nil duty as per Sl. No.34 of the Table to the Notification No. 12/2012-Cus. It was made 10% by Notification No. 44/2015-Cus, dated 07.08.2015. Now the Government has hiked it to 25% with effect from yesterday. This seems to be in view of the steep fall in international prices of wheat and in anticipation of heavy imports. Good quality imported what is less expensive than bad quality wheat supplied by FCI. The Government has to protect the Indian farmer and the FCI. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This rate is valid till March 31 2016.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2NjY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 51/2015-Cus., Dated: October 19, 2015 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Central Excise - Inputs for Biodiesel Exempted </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has exempted RBD Palm Stearin, Methanol and Sodium Methoxide for use in the manufacture of alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Specified biodiesel is already exempt from central excise duty. However, its inputs namely, RBD Palm Stearin, Methanol and Sodium Methoxide are chargeable to central excise duty leading to CENVAT credit accumulation. Central excise duty is now exempted on RBD Palm Stearin, Methanol and Sodium Methoxide used in the manufacture of such biodiesel subject to actual user condition for a period upto 31.03.2016. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2NjQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 42/2015 - Central Excise, Dated: October 19, 2015 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Customs -EDI Users - Complain to ICEGATE first </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AN</strong> ICEGATE flash says, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is being regularly noticed that the Customs EDI users (Importers, Exporters, CHAs etc) are referring their system processing related grievances to several authorities without informing it to ICEGATE Helpdesk (Ph: 1800-3010-1000 or mail:<strong> <a href="mailto:icegatehelpdesk@icegate.gov.in" target="_blank">icegatehelpdesk@icegate.gov.in</a></strong>), which cause unnecessary delay in other authorities forwarding it to ICEGATE and finally redressing it. Importers/Exporters and CHAs are therefore, requested to register their grievances at ICEGATE Helpdesk first and obtain Ticket No. so that their problems, if any shall be resolved quickly. </font></em></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Customs - Simplified procedure for amendments in Import General Manifest </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>JN</strong> Customs, Nhava Sheva has issued a consolidated guideline for amendment in the IGM, as a trade facilitation measure. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To facilitate the trade and to ensure uniformity of procedure of amendment in the IGM, the following documents required for the amendments, are to be supplied in the first stage itself to the Import Noting Section; - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1) Request and explanation letter from Shipping Line/Agents; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2) Previous and Revised Bill of Lading (Original or Attested by the Shipping Line); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3) Request and explanation letter from Consignee; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4) Signed copy of Invoice and Packing List (Original/Attested by the Consignee/Shipping Line) (wherever required); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5) Supplier's/Shipper's request cum explanation letter/Load Port's message along with manifest corrector issued by overseas counterpart of the Shipping Line(wherever required); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6) IEC copy of the consignee/s or declaration letter in case consignee does not hold IEC (wherever required); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7) In the case of change of consignee name, the following documents are also required to be submitted (as applicable) - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) For amendment in the consignee name, where first consignee name is totally different and it doesn't exist, it cannot be considered typographical error, an indemnity bond duly notarised to Customs from second consignee and a letter from Shipping Line, indemnifying Customs against any claim in the name of the first consignee regarding the shipment, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) For amendment in the consignee name, where first consignee exists, NOC from the first consignee in original is required. Since amendment in the consignee name is usually an issue of ownership of the consignment, in case the first consignee is not giving NOC for the change of consignee name, it is suggestive of a dispute between the first consignee and supplier/second consignee. In such cases, as a matter of principle, Customs has no role/interference in the ownership of the consignment, and it is an issue of civil dispute. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) In cases where the first consignee exists but has not given NOC for such amendment, the matter should be examined by AC/DC, Import Noting and the decision in this regard should be taken in light of the Civil Court's decision or other material facts. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8) In case of change of Bill of Lading Number, the Shipping Line should submit copy of the surrendered Master Bill of Lading and original consignee name should appear in House Bill of Lading; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9) Report from concerned Group for ascertaining revenue implication (for amendment in commodity description); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10) NOC from concerned Group in the case of Bill of Entry already filed. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the responsibility of amendment in the IGM rests solely with the Shipping Line/Agent, as they file IGM with Customs under section 30 of Customs Act, 1962, it is clarified that the fine/penalty imposed, if any, upon adjudication in such cases, shall be paid by the Shipping Line only. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Procedure in Case of HIGH-SEAS SALE: </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To ensure the simplification and uniformity of procedure for amendment in IGM incase of High Seas Sales, the following documents are required to be submitted:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. High Seas Sales contract signed by both the buyer and seller and duly notarized. The date of contract and notarisation should be before filing of the IGM; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Non-negotiable copy of Bill of Lading in original, if same is not available, then photocopy of such Bill of Lading duty authenticated by Shipping Line/Steamer Agent; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. High Seas Sale Invoice and Commercial Invoice in original or duly attested Copy;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Authority letter for Custom Broker from High Seas Sales buyer in original (if CB is appointed) or application from High Seas Sales buyer, addressed to Deputy/Assistant Commissioner of Customs, Import Noting, JNCH; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. IEC copy of both the buyer and the seller. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Custom House also issued a Standing Order in this regard for the guidance of the staff. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2Njk=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>JN Customs Facility Notice No. 73/2015., Dated October 01, 2015</strong></font></a></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2Njg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">JN Customs Standing Order No. 39/2015., Dated October 01, 2015</font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Wal-Mart Paid Bribes to Indian Customs? </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WALL</strong> Street Journal reported yesterday that investigators found evidence of bribery in India by Wal-Mart on widespread but relatively small payments made to local officials in India. The suspected bribery in India is reported to have involved allegations of thousands of small payments to low-level local officials to help move goods through customs or obtain real-estate permits. </font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Supreme Court Round Up - Recent Cases</font></em></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img width="168" height="121" src="http://www.taxindiaonline.com/RC2/image/stories/inside_ddt.jpg"></font></p>
<p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#660099">Revenue loses case for not allowing cross examination of witnesses: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue in most cases have no qualms about using the statements of witnesses to prove its case, but the moment you ask for cross examination, they get jittery and will take any steps to ensure that cross examination is not allowed. In a recent case, the party's appeal was allowed by the Supreme Court on this ground alone. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Andaman Timber Industries Vs Commissioner of Central Excise, Kolkata-II </em>-<strong> <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA3NzA1" target="_blank">2015-TIOL-255-SC-CX</a></strong>.</font></p>
<p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#660099">No wilful mis-statement or suppression for following Tribunal Decision.: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee had decisions of two Benches of the Tribunal and a Larger Bench in his favour when he filed the declaration. The Larger Bench Decision was upset by the Supreme Court and later doubted by another Bench. In such a situation, the assessee could not be held or accused of having willfully misstated or suppressed facts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Commissioner of Customs Vs Reliance Industries Ltd </em>- <strong> <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA3NzAx" target="_blank">2015-TIOL-250-SC-CUS.</a></strong></font></p>
<p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#660099">Remand is an open remand: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The only objection raised by the Revenue is that when the issue was remitted back for re-determination it should have been open remand and should not have remarked that "Dry Weight Standards" should be applied and even in respect of that the matter should have been left open for the Adjudicating Authority to take a call thereof. This suggestion is accepted by the counsel for the assessee. The directions are modified with the observations that on remand when the matter is to be re-determined by the Adjudicating Authority, it is an open remand and it would be permissible for the Adjudicating Authority to go into all the relevant issues in determining the classification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Commissioner of Central Excise, Mumbai Vs Raymond Ltd</em> - <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA3NzAw" target="_blank">2015-TIOL-251-SC-CX </a> </strong>. </font></p>
<p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#660099">Central Excise - Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 -: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The vires of the Rule was challenged before the Madras High Court in <em>Beauty Dyers v. Union of India</em> - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2003/2003-TIOL-190-HC-MAD-CX.htm" target="_blank"><strong>2003-TIOL-190-HC-MAD-CX</strong> </a>and the High Court held the said Rule to be ultravires the erstwhile Section 3A of the Act. Special leave petition was preferred by the Union of India against the said judgment was dismissed by this Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It becomes clear that the respondent was not supposed to pay any duty, more so, when the entire exercise was revenue neutral. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Commissioner of Central Excise Vs Angadpal Indl Pvt Ltd</em> -
<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA3NzA2" target="_blank"><strong>2015-TIOL-254-SC-CX</strong></a>. </font></p>
<p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#660099">Central Excise - Classification - milk shake mix and soft serve mix:: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the main purpose is to maintain the product consistency during storage and transportation as well as to improve the shelf life. Merely because it improves the body and texture of the product and adds some smoothness thereto, that would not change the basic character of the produce. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong><em> Commissioner of Central Excise Vs Amrit Food</em> -
<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA3NzA0" target="_blank"><strong>2015-TIOL-256-SC-CX</strong></a>. </font></p>
<p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#660099">Central Excise - Classification - "Calcined China Clay":: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Show Cause Notice proceeded on the basis that as China Clay was calcined, it could not be included under Chapter Heading 25.05 and since Chapter Heading 38.24 mentions about some specified product including those consisting of mixture of natural products, it would fall under Chapter Heading 38.24. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Held: merely because the product of assessee, i.e., China Clay is calcined, it would not put it out of Chapter Heading 25.05. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Commissioner of Customs & Central Excise Vs 20 Microns Ltd</em> - <strong> <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA3NzAy" target="_blank">2015-TIOL-253-SC-CX</a></strong>. </font></p>
<p align="justify"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#660099">Customs - Valuation - before rejecting the invoice price, the Department has to give cogent reasons for such rejection.:: </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">it is to be borne in mind that the onus is on the Department by leading cogent evidence. The case law cited by Revenue was in favour of the assessee! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Commissioner of Customs (Imports), Mumbai Vs Bayer Corp Science Ltd</em> - <strong> <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA3NzAz" target="_blank">2015-TIOL-252-SC-CUS</a></strong>.</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 align="justify"><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 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@tiol.in"><strong>vijaywrite@tiol.in</strong></a></font></p>
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