TIOL-DDT 689 · the untouched capture
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<!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 align="justify" ><font size="2"><b><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">TIOL</font></b><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif"><b>-DDT 689</b></font><font face="Verdana, Arial, Helvetica, sans-serif"><b><br> 30.08.2007<br> Thursday</b></font></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Import & export through courier mode-CBEC clarifies</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Difficulties brought to the notice of the Board are:-</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Availment of CENVAT Credit on Courier Bill of Entry; </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Filing of regular Bill of Entry by Express Companies; and </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Single registration with Customs so as to enable Authorised Courier to operate at all Customs locations.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has examined the issue and clarified that</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Whenever consignee intends to take CENVAT credit on imported goods, normal Bill of Entry may be filed. This Bill of Entry may be used by the importer for taking CENVAT credit on any imported goods, as per clause (c) of rule (9) of CENVAT Credit Rules, 2004.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Authorised Courier may be permitted to file regular Bill of Entry or Shipping Bill. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Field formations may permit the operation of Authorised Courier based on the intimation as per Regulation 12 of the Courier Imports and Exports (Clearance) Regulations, 1998 and subject to execution of specified <st2:GivenName w:st="on">Bond</st2:GivenName> and Security. No separate registration is required.</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_31.htm" target="_blank">CIRCULAR NO 31/2007 Cus., Dated: <st1:date ls="trans" Month="8" Day="29" Year="2007" w:st="on">August 29, 2007</a></u></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Reimbursement of CST – DGFT amends procedure</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Paras (viii) and (ix) of Appendix 14-I-I, for reimbursement of CST on supplies made to EOUs, EHTP and STP, read as</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) The reimbursement will be made on quarterly basis. No claim for reimbursement will be normally entertained if not claimed within a period of six months from the completion of the quarter in which the claim has arisen. In case of procurement of goods against payment in installments, the CST reimbursement claim may be made in the quarter in which the full payment has been effected against the invoice/bill. In exceptional cases, the Development Commissioner may consider delayed applications when received after the expiry of the last date for submission of such application but within six months from the last date with a late cut @ 10% on the entitlement after satisfying that the delay was due to genuine grounds.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) Only one consolidated claim for a quarter will be admitted for reimbursement of CST. No supplementary claim shall be entertained.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Now this is changed to </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) Reimbursement of CST will be made on quarterly basis. The application for claiming reimbursement should be filed within a period 6 months from the completion of the quarter in which the claim has arisen. In case of procurement of goods against payment in installments, the CST reimbursement claim may be made in the quarter in which the full payment has been effected against the invoice/bill. Whenever application is received after expiry of last date of submission of such application, provisions of para 9.3 of the <st1:stockticker w:st="on">HBP Vol.1, would apply. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) Application for supplementary claim will be considered as per provisions of para 9.4 of <st1:stockticker w:st="on">HBP Vol I</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And para 9.4 of the <st1:stockticker w:st="on">HBP reads as,</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Supplementary Claims: </font></b>Wherever any application for supplementary claim is received, within specified time limits, such application may also be considered<br> after imposing a cut @10% on the entitlement.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So now there is no discretion for the Development Commissioner and delayed applications will be accepted with a 10% cut.</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=47&filename=notification/dgft/2007/dgft07pn039.htm" target="_blank">DGFT</a></u> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2007/dgft07pn039.htm"><u>PUBLIC NOTICE NO. 39 (RE-2007)/2004-2009, Dated: <st1:date ls="trans" Month="8" Day="24" Year="2007" w:st="on">August 24, 2007</u></a></font></p> <p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Condoms and Customs</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Two ingenious Indian smugglers devised a new way to use condoms. They put some Euros in condoms and swallowed the condoms, but the game was up when the Sri Lankan Customs put them through an X-ray check. The customs were able to recover 101 condoms packed with Euro notes worth more than 60,000 Euros from the two suspects after treating them with laxatives. The Indians were on their way to <st1:country-region w:st="on"><st1:place w:st="on">Singapore</st1:country-region>.</font></p> <p align=center style='text-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=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b></b></b></font><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></p> <p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax</b></font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>VSNL Earth Stations are not undertakings for the purpose of Section 80 IA; VSNL is not providing basic telecommunication services – ITAT Special Bench </b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An order that runs into 101 paras involving Crores and the appellant is the giant VSNL. The Special Bench passed three orders by each of the three Members.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee had commissioned two Telecommunication Earth Stations in the previous year relevant to the assessment year under appeal. One earth station was commissioned at <st1:City w:st="on">Calcutta in May 1995 and the second one was commissioned at <st1:City w:st="on"><st1:place w:st="on">Madras in June 1995. The assessee-company treated these earth stations as new undertakings and claimed deduction u/s. 80IA in respect thereof. The income attributable to the Earth Stations has been computed by the assessee, in a separate exercise.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">COD permission for a former PSU</font>?</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the Supreme Court judgement in the ONGC case, PSUs have to take the permission of a Committee of secretaries to file an appeal before the Tribunal or courts. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now VSNL was a PSU at the time of dispute but became a private company at the time of appeal. Should it take the permission of the COD to file the appeal before the ITAT? </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was also an issue before the special Bench, but was not decided as the Revenue did not object.</font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>AO cannot reopen assessment based on SC decision when <st1:stockticker w:st="on">CIT(A) had passed an order in favour of assessee - <st1:stockticker w:st="on">CIT's order may be erroneous, but having reached finality, AO cannot sit in judgement : Madras High Court</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Unless and until the order is set aside by the process known to law, the said order is valid in law as well as it binds the lower authorities. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Hence the Assessing Officer is not entitled to circumvent the earlier order passed by the C.I.T.(A) which had become final. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Under such circumstances, the Assessing Officer should not reopen the assessment and seek to adjudicate on the issue which was already adjudicated by the Appellate Authority. </font></p> <p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Central Excise </b></font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Samples of 'explosives' removed within factory for 'testing' are not liable to excise duty : CESTAT</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After testing, the samples become unusable and therefore they destroy the said unused samples as waste and scrap. A separate record of these samples drawn for testing is maintained by the assessee. As the samples were being destroyed within the factory premises for the purpose of testing and before marketing, duty was not being paid on the same. This was disputed by the department. </font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Informer has no <i>locus standi</i> to be respondent : Tribunal </b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">It</font> </b>is an interesting case where the informer has filed an application before the Tribunal to be heard as a respondent. His plea is that he had given information about evasion of duty by an assessee. He had given evidence of evasion of duty to the tune of over Rs. 1 Crore. He alleges that instead of demanding the entire duty from the assessee the department has demanded only around Rs. 85 Lakhs.</font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><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</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>