TIOL-DDT 650 · the untouched capture
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<P align="justify"><font size="2"><B><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 650</font><font face="Verdana, Arial, Helvetica, sans-serif"><BR>
05.07.2007<BR>
Thursday </font></B></font></P>
<P align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>Import of power tillers - emission norms - DGFT amends ITC(HS) - refers to a notification, not the rules</B></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has amended the Schedule - I (Imports) of the ITC (HS) Classifications of Export and Import Items, 2004-09 to stipulate that import of Power Tillers shall conform to the emission norms as notified by Ministry of Shipping, Road Transport & Highways (Department of Road Transport & Highways) Notification No. G.S.R. 589 (E) dated 16.9.2005.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now you know what this notification is! It is a notification to amend the Central Motor Vehicles Rules, 1989. In fact the notification starts with "These Rules may be called the Central Motor Vehicles(Fifth Amendment) Rules, 2005"</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So what the Commerce Ministry perhaps means is that they shall conform to the emission norms as notified in the Central Motor Vehicles Rules, 1989. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yet another case of poor drafting of notifications. </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=45&filename=notification/dgft/2007/dgft07not011.htm" target="_blank">NOTIFICATION NO. 11/(RE-2007)/2004-2009, Dated: July 3, 2007</a></U></font></P>
<P align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>Scrapping of additional duty on liquor - three cheers from all over the world</B></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Normally <st1:country-region w:st="on">India</st1:country-region> does not get any coverage in the world press. Remember George Bush did not know the name of the Prime Minister of India when he was asked that question in a pre election press quiz in 1999? </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But an innocuous notification of the CBEC has received banner headlines right across the world. Such is the power of spirits! And Gandhi's <st1:country-region
w:st="on">India</st1:country-region> is the largest liquor market!. Here are some of the screaming headlines and stories from the Western media. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region
w:st="on"><b><font color="#663399">India</font></b></st1:country-region><font color="#663399"><b> scraps additional duty on foreign liquor</b></font><br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><i>Monsters and Critics.com,<st1:country-region
w:st="on">UK</st1:country-region></i><st1:country-region
w:st="on"></st1:country-region></b><st1:country-region
w:st="on"></st1:country-region><st1:country-region
w:st="on"></st1:country-region></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region
w:st="on">India</st1:country-region> has scrapped additional customs duties on imported liquor including wine and beer, in keeping with its World Trade Organization (WTO) commitments, news reports said Thursday. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <st1:country-region
w:st="on">United States</st1:country-region> and the European Union had complained to the WTO earlier this year that the additional duties levied by <st1:country-region
w:st="on">India</st1:country-region> on imported spirits went against <st1:country-region
w:st="on">India</st1:country-region>'s commitments to the international trade body. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region w:st="on"><strong><font color="#663399">INDIA</font></strong></st1:country-region><font color="#663399"><strong>: Gov't caves to customs duty pressure</strong></font><strong><br>
</strong><i><b>just-drinks.com editorial team</b></i></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Indian government has confirmed that it has withdrawn the additional customs duty on imported spirits, wine and beer.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A spokesperson for the Central Board of Excise and Customs confirmed the move late yesterday (3 July).</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The basic customs duty on wines, however, will rise from 100% to 150%, the CBEC noted.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The move follows growing pressure from the EU and the <st1:country-region
w:st="on">US</st1:country-region>, both of whom have opposed what they have called the "additional" and "extra-additional" duties applied by the country to their spirits exports.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region w:st="on"><b><font color="#663399">India</font></b></st1:country-region><font color="#663399"><b> Scraps Additional Tax on Liquor After <st1:country-region
w:st="on">U.S.</st1:country-region>, EU Complain</b></font><br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><i>Bloomberg <st1:country-region
w:st="on">USA</st1:country-region></i><st1:country-region
w:st="on"></st1:country-region></strong><st1:country-region
w:st="on"></st1:country-region></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region
w:st="on">India</st1:country-region>, the world's biggest whiskey market, scrapped an additional import tax on liquor, wine and beer after the <st1:country-region
w:st="on">U.S.</st1:country-region> and the European Union complained the duty curbed demand for products such as Jack Daniel's whiskey. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region w:st="on">India</st1:country-region> removed the duty that ranged from 20 percent to 150 percent, the finance ministry said in a statement. It lifted the basic import tax on wine to 150 percent from 100 percent. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region w:st="on">U.S.</st1:country-region> makers of spirits estimate the Indian market is worth more than $14 billion a year and say it is protected by tariffs high enough to keep out almost all American-made products. Lower Indian import tariffs may benefit European liquor companies such as Diageo Plc and Pernod-Ricard SA that are seeking growth in the world's second-most populous nation. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import duties, including the extra levies, of as much as 550 percent helped keep out foreign competitors, according to the EU. Some of <st1:country-region
w:st="on">India</st1:country-region>'s trading partners complained that the additional customs duty isn't equal to the excise duty rates on similar products in some Indian states, the ministry said. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The World Trade Organization had agreed on June 20 to investigate a <st1:country-region
w:st="on">U.S.</st1:country-region> complaint against <st1:country-region
w:st="on">India</st1:country-region>'s alcohol imports that said <st1:country-region
w:st="on">India</st1:country-region> imposed ``excessive'' tariffs on imported wine and distilled spirits. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exports of <st1:country-region
w:st="on">U.S.</st1:country-region> spirits to <st1:country-region
w:st="on">India</st1:country-region> were valued at $540,000 last year, Washington-based Distilled Spirits Council said. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region w:st="on">India</st1:country-region>'s spirits market, comprising whisky, rum, brandy and vodka, grew an average 8.3 percent to 1.96 billion liters in five years to 2006, according to Euromonitor. The sale of wines rose 18 percent annually to 5.4 million liters. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consumption of spirits is forecast to grow at an average annual rate of 8.5 percent by 2011. The wine market is projected to grow 14.5 percent annually to 10.5 million liters in the same period, the London-based Euromonitor said. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region
w:st="on"><b><font color="#663399">India</font></b></st1:country-region><font color="#663399"><b> scraps additional customs duty on liquor; ups basic duty on wine</b></font><br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><i>Forbes <st1:country-region
w:st="on">USA</st1:country-region></i><st1:country-region
w:st="on"></st1:country-region></strong><st1:country-region
w:st="on"></st1:country-region></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India has withdrawn the additional customs duty levied on imported liquor, wine and beer, but has increased the basic customs duty on wines from 100 pct to 150 pct -- the ceiling imposed by the World Trade Organisation, local dailies The Financial Express and The Economic Times reported.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Spirits and liquor will continue to attract the basic customs duty of 150 pct, the papers said, citing a government release.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The move comes days ahead of the meeting of a WTO panel to mull a series of complaints made by the European Union and the <st1:country-region
w:st="on">US</st1:country-region> to the WTO regarding <st1:country-region
w:st="on">India</st1:country-region>'s discriminatory tariff structure for imported wines and liquors. <st1:country-region
w:st="on">Australia</st1:country-region>, <st1:country-region
w:st="on">Chile</st1:country-region> and <st1:country-region
w:st="on">Japan</st1:country-region> have also lodged protests against the tax structure.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The government could lose 0.6 bln Indian rupees annually by removing the duty,</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">EU welcomes <st1:country-region w:st="on">India</st1:country-region>'s move on wine, spirits duty</font></b><br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><i>Reuters <st1:country-region
w:st="on">UK</st1:country-region></i></strong><i><st1:country-region
w:st="on"></st1:country-region></i><st1:country-region
w:st="on"></st1:country-region></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BRUSSELS</strong><strong>, July 4 -</strong> The European Union welcomed <st1:country-region w:st="on">India</st1:country-region>'s withdrawal of an extra customs duty on imported wines and spirits, but said it was too soon to say whether World Trade Organisation action over the case would be scrapped.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The EU and the <st1:country-region w:st="on">United States</st1:country-region> have pressed <st1:country-region
w:st="on">India</st1:country-region> to cut its additional wines and spirits duties, which Brussels says go as high as 550 percent for spirits and 264 percent for wines.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:country-region w:st="on">India</st1:country-region>'s government said on Tuesday it would withdraw the additional duty.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"The reported removal of the discriminatory duties is good news for European spirit and wine makers, who have been badly disadvantaged by Indian measures for many years," an EU official said on Wednesday.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"We have to study in detail the Indian action, so it is a bit premature to speak about the suspension of the panel procedure at this point," the official said.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The EU kicked off action against <st1:country-region
w:st="on">India</st1:country-region> at the WTO in December last year and escalated it in March by seeking a dispute resolution panel at the Geneva-based arbiter of global trade rows.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The EU official said Brussels regretted a move also announced by <st1:country-region
w:st="on">India</st1:country-region> on Tuesday to raise its basic customs duty on wines by half to 150 percent, the same level as for spirits.</font></P>
<P align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>PAN for infants</B></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There were reports of a three month old infant from Orissa getting a PAN card, but his record of being the youngest PAN holder has been broken by a Mumbai infant who got his PAN 56 days after his birth. The father of this boy, a stock broker wanted to invest in his son's name and so got a PAN card. This seems to be catching up. Immediately after a child is born, rush to the Income Tax for a PAN. Maybe the Income Tax department can use these infants in their ads. <B><font color="#663399">This child has a PAN, shouldn't you have one too?</font></B></font></P>
<P align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B><font color="#006600">Road map for <st1:PersonName
w:st="on">GS</st1:PersonName>T - report in 4 months</font></B></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B></B></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Working Group on <st1:PersonName w:st="on">GS</st1:PersonName>T comprising of Adviser to Finance Minister ParthasarathiShome and state finance secretaries will submit its report to the empowered committee of state finance ministers in four months. The group is to meet in Delhi tomorrow and may meet twice a month. The tasks before the group include</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to keep the interests of North-Eastern states, agriculture, consumers, trade and industry in mind while making its recommendations.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to design the <st1:PersonName
w:st="on">GS</st1:PersonName>T in such a way that it is revenue fair with sufficient growth of revenue to the Centre and every state.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The empowered committee of state finance ministers, which has successfully implemented the VAT, will work in co-ordination with the Centre to implement <st1:PersonName w:st="on">GS</st1:PersonName>T from April 1, 2010.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Recently a Member of the CBEC told a seminar that the main problem with <st1:PersonName w:st="on">GS</st1:PersonName>T is that the States are not on "talking terms"</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can PartahasrathiShome bring them all to talking terms? </font></P>
<P align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>From our Legal Corner - tomorrow's cases</B></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></b></b></font><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG>Income Tax</STRONG></font></P>
<P align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG>Assessee and Revenue rushing to HC in every case - What constitutes a substantial question of law? - Delhi HC explains </STRONG></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG>IT </STRONG>has of late become a pedestrian trend amongst the assessees as well as the Revenue to run to the High Court to file an appeal u/s 260-A at the drop of a hat. However, it has to be borne in mind that jurisdiction of the courts u/s 260-A is limited to cases which involve only a substantial question of law. In other words, cases involving pure questions of fact cannot be taken to the high court in second appeal and do not fall within its jurisdiction. But what constitutes a question of law does not have a prescribed definition. But in this case, the High Court has discussed as to what constitutes a question of law, and what factors may determine whether a substantial question of law is involved or not.</font></P>
<P align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG>Service Tax </STRONG></font></P>
<P align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG>Service Tax - GTA during 1997 - 98 - tax was payable by the recipient during the time - penalty waived - CESTAT</STRONG></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG></STRONG>The ghost of Service Tax on GTA refuses to leave our hallowed portals of law.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG><font color="#FF0000">Central Excise </font></STRONG></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG><font color="#663399">Contaminated/overfilled/under-filled bottles of aerated waters - not marketable - excisable? Matter referred to Larger Bench - CESTAT</font></STRONG></font></P>
<P align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG></STRONG><B><U>See our columns tomorrow for the judgements</U></B></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<A href="mailto:vijaywrite@taxindiaonline.com"></A></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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