TIOL-DDT 376 · the untouched capture
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<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 376</font><br>
02 6 2006<br>
Friday</b></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Simplified procedure for EOUs – Board issues circular</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To make the dreams of the Commerce ministry possible, the CBEC has issued a circular simplifying the procedure for EOUs.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">facility of importing goods without payment of duty on the basis of pre-authenticated procurement certificates to such units which have physical export turnover of Rs.15 crore and above in the preceding financial year and have a clean track record. Earlier, such procurement certificate was required to be obtained from the jurisdictional office of Customs and Central Excise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to redress the reported problems regarding delays in declaring a warehousing station, a time bound requirement has now been put in place for declaring warehousing stations. Under the new procedure, a site verification report has to be given within 7 days by the jurisdictional Superintendent to his superiors. Under the new guidelines, the entire procedure of verification will have to be completed in less than 30 days.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Permission to exporters to supply spares and components to the original buyer at any time within the warranty period of the exported articles. Earlier, the requirement was that such spares be supplied alongwith the export articles.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EOUs are now permitted to obtain duty-free export promotion materials like brochures, literature, pamphlets etc. for a value upto 1.5% of their export turnover during the previous year. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All EOUs have now been permitted to remove capital goods from their unit for test, repair etc. within the country without requiring any prior permission of the Customs and Central Excise Officers. They are only required to give a prior intimation and have to maintain proper accounts of removal and receipt of such goods.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EOUs have been permitted to effect inter-unit transfer of manufactured goods without prior permission. They only need to give prior intimation to the Development Commissioner and to the Customs & Central Excise authorities.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the Gems & Jewellery exporters, the units are now allowed to export cut and polished, precious and semi-precious stones for treatment abroad. They can re-import such stones upon payment of duty on the fair cost of treatment and cost of materials used in such treatment</font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Service Tax – RBI exempted</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 7/2006 dated 1.3.2006, taxable services, provided or <b>to be provided</b> to any person, by Reserve Bank of India were exempted from Service Tax. Probably the government felt (and rightly so) that the exemption notification was not adequate and so this is superseded and a new notification issued which provides exemption for</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) taxable services provided or to be provided to any person, by the Reserve Bank of India;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) taxable services provided or to be provided by any person, to the Reserve Bank of India when the service tax for such services is liable to be paid by the Reserve Bank of India </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) taxable services received in India from outside India by the Reserve Bank of India under section 66A of the Finance Act, 1994.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So now the RBI is exempted from Service Tax for the services it provides, for the services it receives for which it would be otherwise liable to pay tax and for services received from abroad. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But why this special treatment to RBI?</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Then is the <b>service to be provided</b> in future also exempted? An alert netizen B.Venkateswaran wrote to us in March, </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the recent budget an exemption was granted to RBI from payment of service tax vide notification no 7/2006 dated 01/03/2006. However what is important to note is that the exemption is granted to RBI for all services it may provide in future also. Somebody in the TRU has confused himself with valuation of service tax with levy of service tax. Hope TOIL will bring the error to the notices of the authorities concerned.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">May not be!. The whole idea is, taxable service has been defined as <b>"taxable service" means any service provided or to be provided . </b>So the TRU has only been careful and not confused.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2006/stnot06_022.htm">NOTIFICATION NO.22/2006-Service Tax, Dated : May 31, 2006</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2006/stnot06_022.htm"><u> </u></a></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Anti dumping duty on silk fabrics imported from China</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Based on the recommendations of the Designated Authority, Government has imposed provisional anti dumping duty on silk fabrics originating in or exported from China. This duty will be in force till 30<sup>th</sup> day of November 2006.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_052.htm">NOTIFICATION NO.</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_052.htm"><u> 52/2006-Cus., Dated: May 31, 2006</u></a></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Towns of Export Excellence</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the FTP, selected towns producing goods of Rs. 1000 crore or more will be notified as Towns of Exports Excellence on the basis of potential for growth in exports. However for the Towns of Export Excellence in the Handloom, Handicraft, Agriculture and Fisheries sector, the threshold limit would be Rs 250 crores. Common service providers in these areas shall be entitled for the facility of the EPCG scheme. The recognized associations of units will be able to access the funds under the Market Access Initiative scheme for creating focused technological services. Further such areas will receive priority for assistance for rectifying identified critical infrastructure gaps from the ASIDE scheme. The list of these towns is as given below:-</font></p>
<p align="center" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">LIST OF TOWNS OF EXPORT EXCELLENCE</font></b></font></p>
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<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.No</font></strong></p></td>
<td width=170 valign=top ><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Town of <st1:City w:st="on"><ST1:CITY u1:st="on"><ST1:PLACE u1:st="on">Export Excellence</font></strong></td>
<td width=144 valign=top ><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> State</font></strong></td>
<td width=192 valign=top ><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Product Category</font></strong></td>
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<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tirupur</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tamil Nadu</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hosiery</font></p></td>
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<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><ST1:CITY u1:st="on"><ST1:PLACE u1:st="on"><st1:City
w:st="on">Ludhiana</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><ST1:PLACE u1:st="on">Punjab</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Woollen Knitwear</font></p></td>
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<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Panipat</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Haryana</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Woollen Blanket</font></p></td>
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<td width=53 valign=top >
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kanoor</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kerala</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Handlooms</font></p></td>
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<td width=53 valign=top >
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Karur</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tamil Nadu</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Handlooms</font></p></td>
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<td width=53 valign=top >
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><ST1:CITY u1:st="on"><ST1:PLACE u1:st="on"><st1:City
w:st="on">Madurai</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tamil Nadu</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Handlooms</font></p></td>
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<td width=53 valign=top >
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AEKK (Aroor, Ezhupunna, Kodanthuruthu & Kuthiathodu)</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kerala</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Seafood</font></p></td>
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<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Jodhpur</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rajasthan</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Handicraft</font></p></td>
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<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kekhra</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Uttar Pradesh</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Handlooms</font></p></td>
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<td width=53 valign=top >
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10</font></p></td>
<td width=170 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dewas</font></p></td>
<td width=144 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Madhya Pradesh</font></p></td>
<td width=192 valign=top >
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pharmaceuticals</font></p></td>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now Alleppey in Kerala is added to the list for coir products.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn015.htm">PUBLIC NOTICE NO. 15 (RE-2006) /2004-2009, Dated: May 31, 2006</a></u></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Transfer of duty free raw materials – special concession to LTUs. </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the case of Large Taxpayer Units (LTUs) having multiple units, transfer of duty free raw material imported against the Advance Authorisation may be permitted from one unit of the company to another unit, without following the job work procedure, after fulfillment of the export obligation subject to the condition that no CENVAT benefit has been claimed on the transferred inputs and the addresses of all such units are listed in the IEC issued to the LTUs.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn015.htm">PUBLIC NOTICE NO. 15 (RE-2006) /2004-2009, Dated: May 31, 2006</a></u></font></p>
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<TD><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><i><font color="#0000FF">pro for·ma</font> </i></b>- <b>Done as a formality; perfunctory.Provided in advance so as to prescribe form or describe items: a pro forma copy of a document.</b></font></p> </TD>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The crucial dispute whether excise duty was payable or not would be between the plaintiff-company, and the Union of India and the Collector of Central Excise, with which the defendant-company had nothing to do. For the determination of that dispute, the defendant-company would be merely pro forma. The defendant-company would also be merely pro forma in case the Central Government admitted in the written statement that the defendant-company had paid the excise duty to them - <strong>HIGH COURT OF PUNJAB & HARYANA</strong></font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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