TIOL-DDT 538 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
538</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
23.01.2007<br>
Tuesday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Software
Technology Parks – exemption extended</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Notification No. 153/93, certain goods imported by STPI units are exempted.
The exemption in respect of the following are enlarged:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Diesel Generating Set;
</b>Now this is changed to <i>Captive Power Plant including captive generating
sets and transformers of capacity commensurate with the actual requirement of
the unit and recommended by the concerned Chief Executive of the SoftwareTechnologyPark
Society set up by the Government of India, Department of Electronics</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Air-Conditioner :</b>
Now this is <i>Central Air Conditioning equipments, Air Conditioning System.</i></font></p>
<p align="justify"><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/2007/ctariff07_005.htm">NOTIFICATION
NO. 5/2007 - Cus Dated : January 15, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>EOUs – Removal
to contract farmers – bank guarantee not required by units in existence for
more than two years</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You think we covered this
yesterday? We did! But that was in respect of Central Excise. This is the Customs
Notification.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No.
52/2003 dated the 31st March, 2003, EOUs engaged in processing of agriculture
products or production or manufacture or packaging of articles, are allowed
to take out non duty paid goods to the fields and farms of contract farmers
for production or in connection therewith; and to bring back the produce to
the unit for exports, subject to certain conditions one of which is </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ the unit shall
be required to furnish a bank guarantee equal to the total duty foregone on
the goods so transferred to the fields or farms of contract farmers;</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is amended to provide
a bank guarantee by only those units which are in existence for less than two
years</font></p>
<p align="justify"><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/2007/ctariff07_005.htm">NOTIFICATION
NO. 5/2007 - Cus Dated : January 15, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs
concessions – what is left in the budget?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The annual budget of the
Union Finance Minister is losing all its glean. With rates of taxes almost settled
and all exemptions in place there is hardly any surprise that the FM can provide
in a budget. In a few years, budget will simply be a balance sheet of the country
and can be presented sometime by April 15<sup>th</sup>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Barely five weeks to the
budget, the government has come with exemption from Customs duty for a large
number of products. The details are</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Portland cement fully
exempted</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Chemical elements to
attract 5% duty</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Duty on certain ferrous
products/seconds reduced from 7.5% to 5%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Project imports to attract
7.5% instead of 10%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Goods imported for use
in the manufacture of refractory products – reduced to 5% from 7.5% and 10%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Refractory bricks/ceramic
goods – duty reduced to 5% from 7.5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Copper and article –
5% from 7.5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Copper tubes and pipes
and fittings to attract 7.5% instead of 12.5%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Zinc and articles duty
reduced to 5% from 7.5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. zinc tubes, pipes and
fittings to get 7.5% from the present tariff rate of 12.5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Other base metals like
tungsten – now at 5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. Calcined alumina – 5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. Aluminium and articles
– 5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14. Aluminium tubes, pipes
and fittings – 7.5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15. Tin and articles – 5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16. Certain machinery items
and electric equipment – 7.5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17. Certain photographic
and medical equipment – 7.5%</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18. Carbon Black – duty
reduced from 10% to 5%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Project imports exemption
was subject to a condition that</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the importer, at the
time of importation, where the goods are imported for,– </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) initial setting up of
a unit, furnishes an undertaking to the Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be, that the value of the investment
to be made, in fixed assets in plant and machinery (excluding land and building)
in the said unit, within a period of two years from the date of first import
under this exemption, shall not be less than rupees five crore and in the event
of failure to comply with this condition, he shall pay an amount equal to the
difference between the duty leviable on the said imported goods but for the
exemption under this notification and that already paid at the time of importation;
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) substantial expansion
of an existing unit, proves to the satisfaction of the Deputy Commissioner of
Customs or Assistant Commissioner of Customs, as the case may be, that the value
of the investment made, in fixed assets in plant and machinery (excluding land
and building) in the said unit, is more than rupees five crore at the time of
first import under this exemption. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this condition is deleted.
</font></p>
<p align="justify"><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/2007/ctariff07_006.htm">NOTIFICATION
NO. 6/2007 - Cus Dated : January 22, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Project
imports – airports and metro rail included</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 42/96 notifies
the projects for the purpose of assessment under the heading 9801.Now “Airport
development projects and Metro rail projects." Are added to the list.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Already <b>Calcutta Metro
Railway Project, Konkan Railway Project, <st1:PlaceName>Cochin</st1:PlaceName>
<st1:PlaceName>International</st1:PlaceName> <st1:PlaceType>Airport</st1:PlaceType>
Project, DelhiMRTS Project </b>are in the list. </font></p>
<p align="justify"><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/2007/ctariff07_007.htm">NOTIFICATION
NO. 7/2007 - Cus Dated : January 22, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Transshipment
between any two Customs Airports- There is no gateway port</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board Circular says, <i>the
term 'gateway port' needs to be clarified for the information of the trade</i>.
And adds that </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The term 'gateway airport'
<b>reportedly</b> refers to an airport where the goods land in India for the
first time in case of imports or from where the goods finally leave India in
case of exports. However, there is no distinction under the Customs Act, 1962
between airports notified under the said Act. There is no concept of separate
gateway port being notified by Customs. All International airports notified
under Customs Act, 1962 may be used for transshipment of goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board says, it reportedly
refers – who reported?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So according the Board,
the term, “gateway port” is a misnomer and the law does not recognize anything
like a gateway port. But <b>DDT</b> in a quick search found that the phrase,
“gateway port” is used in 4 Customs notifications, 31 Customs circulars and
it figures even in the Foreign Trade Policy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was first used in a circular
and notification in 1995 and has continued merrily for 11 years and now Board
clarifies that there is nothing like a “gateway port”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has now prescribed
a procedure for transshipment of goods from one airport/customs station to another.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. On arrival of flight,
the transshipment cargo should be segregated in Custodian's premises. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Cargo Transfer Manifest
(CTM) prepared by the carrier /console agent, as the case may be, may itself
be treated as application for transshipment. Separate CTMs may be prepared destination
wise. Such transshipment should be approved by the proper officer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The cargo mentioned in
the CTM need to be escorted by the Preventive Officer from the warehouse of
the Custodian to the warehouse of receiving airlines which acknowledges the
same.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The receiving airlines
should prepare its cargo manifest and transshipment be allowed under Customs
supervision.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Customs at destination
airport will acknowledge the receipt of the cargo and send back the acknowledgement
manifest through the carrier.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. The usual procedure for
Customs clearance of cargo shall be adopted at the destination airport for ultimate
clearance of cargo.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has also issued detailed
instructions on transshipment of international cargo and transshipment between
ICD/ACC etc,.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cuscir07_06.htm">CIRCULAR
NO. 06 / 2007-Cus, Dated : January 22, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Response
to the query of stakeholders </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An Inter Ministerial Group
on simplification of Customs procedures in Air cargo and Air ports interacted
with several stakeholders to redress the bottlenecks faced by them. During the
deliberations it was requested by stakeholders that the CBEC should direct its
field formations to provide quick clarifications regarding customs procedures
and other related issues. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board informs that </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Helpdesk facility is
available on CBEC website <a href="http://www.icegate.gov.in/">www.icegate.gov.in
</a>, which provides telephone numbers to be contacted for sorting problems.</span></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Further, information
in the form of Frequently Asked Questions (FAQs) is also available at the helpdesk.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Help Centres provided
in CBEC website <a href="http://www.cbec.gov.in/">www.cbec.gov.in </a>also provide
similar information.</span></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board further wants the
field formations to respond to the specific queries of stakeholders in a time
bound manner. Try calling them up! Will any one clarify what the service tax
rate is? We had carried the picture of a hoarding in a Commissionerate where
it loudly proclaims that the rate is 10.2%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cuscir07_07.htm">CIRCULAR
NO. 07 / 2007-Cus, Dated : January 22, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Examination
of perishable cargo – perish the thought</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Inter Ministerial Group
on simplification of Customs procedures in Air cargo and Air ports, felt that
the procedure for clearance of perishable cargo should be simple and time bound
to reduce the waiting time of cargo outside the cold storage (i.e. before its
loading) to the minimum. AAI informed that they have in place infrastructure
and procedures for providing required special facilities to perishable cargo.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board directs that</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Expeditious clearance
of perishable export cargo is absolutely essential to maintain its quality,
marketability and competitiveness in the international market.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. no routine examination
of perishable export cargo be conducted by the field formations.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Customs should resort
to examination of such cargo only on the basis of credible intelligence or information.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Whenever, on intelligence
or information, it is considered necessary to open and examine a consignment,
prior permission of Assistant Commissioner/ Deputy Commissioner in charge of
Airport/ Air Cargo Complex must be obtained.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Most of the perishable
cargo would not require examination at the time of export.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. The cargo which is required
to be taken up for examination should be given Customs clearance on the day
itself, unless there is contravention of Customs Laws. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cuscir07_08.htm">CIRCULAR
NO. 08 / 2007-Cus, Dated : January 22, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Import of
drugs under Chemical or generic name - instructions</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per rule 43A of the Drugs
and Cosmetics Rules, 1945, drugs can be imported into India through one of the
following places: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Freozepore Cantonment
and Amritsar Railway Stations (in respect of drugs imported by rail across the
frontier with Pakistan)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Ranaghat, Bongaon and
Mohiassan Railways Stations (in respect of drugs imported by rail across the
frontier with Bangladesh)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Raxaul (in respect of
drugs imported by road and railway lines connecting Raxaul in India and Birganj
in Nepal)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Chennai, Kolkata, Mumbai,
<st1:State>Cochin</st1:State>, NhavaSheva and Kandla (in respect of drugs imported
by sea into India)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Chennai, Kolkata, Mumbai,
Delhi, Ahmedabad and Hyderabad (in respect of drugs imported by airports into
India)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the field to
note this and whenever in doubt, field formations may seek necessary clarification
about the generic name versus chemical name of medicines before clearance.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cusinstruct0107.htm">CBEC
instructions in F.No. 450/08/2007-Cus.IV Dated : January 22, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Member,
Central Excise is the authorized officer to stop monthly payment of duty</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has notified the
Member, Central Excise as the officer competent to issue orders for consignment
wise payment of duty, freezing of cenvat credit etc, for delinquent assessees
as per the recently introduced Rule 12CC of Central Excise Rules and 12AA of
Cenvat Credit Rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2007/exnt07_01.htm">NOTIFICATION
NO. 1/2007-Cex., (N.T.), Dated: January 19, 2007</a></u></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">After
all that heavy dose,</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">until tomorrow
with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice
day. </font></p>
<p 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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></span></font></p>
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