TIOL-DDT 2786 · 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><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 face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2786 </font><font size="3"></font><font size="2"><br>
15 02 2016<br>
Monday</font></strong><font size="2"></font></font></font></p>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><em><font size="3">Excise Duty for a Day?</font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Di-</strong>calcium Phosphate was exempted from excise duty with effect from 03.02.2014. Now the Government has exempted this product for the period commencing on the 1st day of February, 2008 and ending with the 1st day of February, 2014, by issuing a Section 11C Notification. Please note there is no exemption on 2 nd day of February 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Di-calcium Phosphate (DCP) is a peculiar product having multiple uses. It can be used as Fertiliser (Fertiliser Grade), Animal Feed (Animal Feed Grade) or in your Toothpaste (Dentifrice Grade). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the manufacturers of DCP (Animal Feed Grade) claimed classification under Chapter 23 (Nil rate), department rejected the classification and demanded duty by classifying it under Chapter 28. Board had also issued a Section 37B order on 03.03.1997 classifying it under Chapter 28, but the same was quashed by the Gujarat High Court. As a result, Board had withdrawn the 37B order vide Circular dated 15.11.2002. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The agony of DCP (Animal Feed Grade) manufacturers started once again with the changes in Central Excise Tariff. With the introduction of 8-digit tariff, DCP is specifically classified under CETH 2835 25 00. The department started second round of litigation on the ground that the earlier judgements apply only to DCP obtained from Animal Bones and DCP (Animal Feed Grade) manufactured from other raw materials, i.e., Rock Phosphate is classifiable under CETH 2835 2500. A small spark ignited in one corner of the Country spread like wildfire with MO Circulars flying around and Show Cause Notices issued demanding crores of duty. Confirmed demands running into crores are hanging on the heads of several manufacturers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The good Board issued a Notification No 03/2014 CE dated 03.02.2014 exempting DCP of animal feed grade conforming to IS specification No. 5470:2002. However, the trouble continued for the earlier period. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe to improve the ease of doing business, the Government has now issued Section 11C Notification that duty shall not be required to be paid on DCP (Animal Feed Grade) of Rock Phosphate origin, covering the period from 1st day of February, 2008 and ending with the 1st day of February, 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As mentioned in the beginning, the exemption under Notification No 03/2014 CE is effective from 03.02.2014 and the 11C exemption is issued up to 1 st February 2014. So, for one day, i.e., on 2 nd February, there is no exemption and all the manufacturers are required to pay duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will the Government correct this mistake by issuing another Section 11C notification or will litigation continue for the duty for that one day? If the Board subscribes to the governance theory of the Prime Minister, it will admit its mistake and amend the date in the notification. On the other hand, if the Board believes more in government than governance, they will not admit that mistake and there will be litigation - adjudication, appeals - the whole process of justice dispensation. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkxODE=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 04/2016-CX (N.T)., Dated: February 12, 2016 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Exchange Rates - Japanese Yen Hiked </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has hiked the exchange rates for Japanese Yen. The rate for 100 Yen will be Rs. 61.25 for Imported Goods and Rs. 59.90 for Export Goods. They were earlier 58.25 and 56.95 respectively. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkxNzc=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 24/2016-Cus.,(N.T.), Dated: February 12, 2016 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Customs - No Manual debit of Advance Licence </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TRADE </strong>represented that the manual debit of Advance Authorization in addition to the electronic debit of the licence in the EDI system leads to delay in clearance, especially in cases where the number of items in the Bill of Entry are large as debit of each item takes a lot of time. Further, if the AO is not available on his seat or is busy with some urgent work, the process of manual debit is held up and it leads to delay in clearance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the light of the importer's requests and as a measure of Trade Facilitation and Ease of Doing Business, the JNPT Customs has decided that to avoid duplication of work, the Advance Authorization will be debited only in the EDI system. The practice of manual debit of Advance Authorization shall be discontinued and it will not be necessary to get the Advance Authorization debited manually from the Group Appraiser. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkxODQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">JN Customs Public Notice No. 21/2016., Dated: February 11, 2016 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Application for IEC </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Notification No. 34 dated 29th January, 2016 para 2.05 (c) of the FTP (2015-20) has been amended, as per which only two documents, namely (i) copy of the PAN Card of the business entity, and (ii) cancelled cheque bearing entity's pre-printed name or Bank certificate in prescribed format ANF-2A (i), are required to be uploaded, besides the digital photograph, along with the application for IEC. Subsequently, vide Public Notice No. 58 dated 01.02.2016 revised format for online IEC (ANF-2A), format of Bank Certificate [ANF-2A (i)] and the Check List for processing of the IEC application were notified. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT clarifies again that as IEC applications in manual mode will only be accepted till 31.3.2016, henceforth applicants seeking IEC through manual mode are required to submit their application in the format notified vide Public Notice no 58 dated 1.2.2016 along with signatory applicant's photograph and only the two documents, as indicated above. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As regards modification in IEC, applicant is required to upload documents corresponding to the modification required in their IEC. For example, change in address may be corroborated by any document like a sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill, bearing the applicant entity's name and new address. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkxODI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Trade Notice No. 18/2016., Dated: February 12, 2016 </font></strong></a></p>
<p align="center"><em><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600">CHA is supposed to safeguard interests of both importers and Customs - Cancellation of Licence Upheld - Supreme Court </font></strong></font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> CHA license was cancelled by the Commissioner for involvement in fraudulent activity affecting the revenue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal observed, "<em>We consider it too harsh a punishment as it deprives the CHA of his livelihood. We consider that revocation for a period of three years from the date of suspension of licence would be sufficient and on expiry of three years, licence may be restored."</em> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue took the matter in appeal to the High Court. But the High Court held that the order of the Tribunal did not warrant any interference. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A persistent Revenue pursued the matter further to the Supreme Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court observed, "<em>The CHA occupies a very important position in the Custom House. The Customs procedures are complicated. The importers have to deal with a multiplicity of agencies viz. carriers, custodians like BPT as well as the Customs. The importer would find it impossible to clear his goods through these agencies without wasting valuable energy and time. The CHA is supposed to safeguard the interests of both the importers and the Customs. A lot of trust is kept in CHA by the importers/exporters as well as by the Government Agencies. To ensure appropriate discharge of such trust, the relevant regulations are framed. Regulation 14 of the CHA Licensing Regulations lists out obligations of the CHA. Any contravention of such obligations even without intent would be sufficient to invite upon the CHA the punishment listed in the Regulations.</em> …"</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court unhesitatingly held that this misconduct has to be seriously viewed and allowed the appeal setting aside the order of the Tribunal and High Court and restoring that of the Commissioner. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see </font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Commissioner of Customs Vs KM Ganatra</em> & Co<strong>-
<em><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTExMjAw" target="_blank">2016-TIOL-13-SC-CUS </a></em></strong></font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Anti Dumping Duty on Caustic Soda - a saga of litigation </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANTI</strong> dumping was imposed on caustic soda imported from Korea by Notification No. 142/2003 dated 23.09.2003. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT by an order dated 23.12.2005, set aside the Notification No.142/2003 dated 23.09.2003 and remanded the matter to the Designated Authority. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court has recently set aside the Tribunal's order and remanded the issue to the Tribunal to decide the matter afresh. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty continues </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Alkali Manufacturers Assn of India Vs Designated Authority -
<strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTExMjAx" target="_blank">2016-TIOL-14-SC-CUS
</a></strong></em></font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Pay Commission to exert pressure on Govt Finances </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACCORDING</strong> to a Deutsche Bank report, implementation of the Seventh Pay Commission recommendations is likely to exert pressure on the government's finances and inflation trajectory will go forward. The deficit for 2016-17 might be higher. The inflation trajectory is likely to get affected by 30-50 bps, due to the Pay Commission impact. </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>
</body>
</html>