TIOL-DDT 716 · the untouched capture
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<p><font size="2"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 716</font></b><font face="Verdana, Arial, Helvetica, sans-serif"><b><br>
10.10.2007<br>
Wednesday</b></font></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs valuation Rules - CBEC issues instructions</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The new section 14 of the Customs Act, 1962 shall come into force with effect from <st1:date ls="trans" Month="10"
Day="10" Year="2007" w:st="on"><st1:date ls="trans" Month="10" Day="10" Year="2007" u1:st="on">10-10-2007 in terms of Notification No 93/2007-Customs (NT) dated 13th September, 2007. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The new Import Valuation Rules, i.e., Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 notified vide Notification No 94/2007-Customs (NT) dated 13-9-2007 shall also come into force on <st1:date ls="trans" Month="10" Day="10" Year="2007" w:st="on"><st1:date ls="trans" Month="10" Day="10" Year="2007" u1:st="on">10-10-2007.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Export Valuation Rules, i.e., Customs Valuation (Determination of Value of Export Goods) Rules, notified vide Notification No 95/2007-Customs (NT) dated 13-9-2007 and the same shall also come into force with effect from <st1:date ls="trans" Month="10" Day="10"
Year="2007" w:st="on"><st1:date ls="trans" Month="10" Day="10" Year="2007" u1:st="on">10-10-2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A day before these changes come into force, the Board has issued two separate Circulars explaining the provisions of these two sets of Rules.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Import Valuation:</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Transaction Value has been defined to mean the value referred to in sub-section (1) of section 14 of the Customs Act, 1962. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ A 'proviso' has been added to Rules 4(1)(a) and 5(1) concerning identical goods and similar goods respectively, to the effect that the value of the goods provisionally assessed under Section 18 of the Customs Act, 1962, shall not be the basis for determining the value of any other goods.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ An 'Explanation' has been added to Rule 10(1) (erstwhile Rule 9(1)) to clarify that the royalty, licence fee or any other payment for using a process, when they are otherwise includible in terms of Clause (c) or (e) of Rule 10(1), shall be added to the price actually paid or payable, notwithstanding the fact that such goods may be subjected to the said process after their importation</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ An 'Explanation' has been added to Rule 10(2) clarifying that the cost of transport of the imported goods includes ship demurrage charges on chartered vessels, lighterage charges or barge charges.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ An 'Explanation' has been added to Rule 12 (erstwhile Rule 10A), that this rule as such does not provide a method for determination of value, and that it merely provides a mechanism and procedure for rejection of declared value in certain cases.</font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Export Valuation - Form for Export Value Declaration - Specified</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A concerned Netizen asked me a question last week.<font color="#663399"> "Vide non-tariff notification No. 95/2007-Cus dated 13.09.2007, new export rules has been notified w.e.f 10.10.2007. The Rule 7 of the said Rules stipulates that exporter should submit declaration regarding value of goods in manner specified. It has been noticed that format of declaration for purpose of Rule 7 has not been specified in the Rule. We will be grateful if you guide us as how to submit the declaration at the time of export or we can use same format presently used for clearance of imported goods. Your advice will help us to understand the law."</font></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After consulting with a Customs expert, I informed him,</font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Yes- No format has been specified for declaration of value in export.</font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">All the export Bills are now being submitted In EDI System. The Annexure for submission of data at the time of filing the Shipping Bill contains a general declaration regarding the correctness of declared details in the Annexure where in apart from the value of the export goods, other particulars are also to be given. Thus, there is no separate "value declaration" which needs to be made, just filling the Annexure itself is sufficient for the purpose.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He then told me, <font color="#663399">"Thanks. But what about non-EDI shipping bill?."</font></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now your question is answered Sir, by the Board. They have prescribed the form in the circular.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Rule 3 of the said rules also stipulates that the Transaction Value for export goods shall be accepted even where buyer and seller are related, provided that the relationship did not influence the price of the goods.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Transaction value is the primary basis for valuation of export goods and the method specified under Rule 3 will be applicable in the vast majority of cases of export by acceptance of declared value. In cases where the transaction value is not accepted, the valuation of the export goods shall be done by application of Rules 4 to 6 sequentially.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ When an investigation / enquiry is undertaken to determine whether or not the Declared Value should be accepted as Transaction Value, the export consignment shall not be ordinarily detained.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Acceptance of transaction value is, however, subject to the provision of Rule 8 which provides for rejection of declared value for the export goods in certain exceptional cases. These are situations where the assessing officer has reasons to doubt the truth or accuracy of the declared value and further enquiry or investigation is needed to determine the appropriate value.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ While raising doubt about truth or accuracy of the declared value in terms of Rule 8, the proper officer shall issue a query memo specifying reasons for such doubt</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In a case where transaction value cannot be determined or the declared value is rejected under Rule 8, and export value has to be determined by comparison in terms of Rule 4, the proper officer shall take utmost care in selecting an export product for an in-depth inquiry. The proper officer will make the adjustments objectively on the basis of the relevant factors</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Where the value has to be determined by Computed value method under Rule 5, the proper officer shall give due consideration to the cost-certificate issued by a Cost Accountant or Chartered Accountant or Government approved Valuer, as produced by the exporter</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule 7 of the Export Valuation Rules calls for a declaration relating to the value to be filed by the exporter. A declaration format for this purpose has been designed and is enclosed as Annexure-A to the Circular. <font color="#663399">Care should be taken to ensure that no export consignments are held up for want of such declaration which may for the time being be obtained subsequent to exports. The filing of the declaration along with the shipping bill should however be enforced with effect from 12th November 2007.</font></font></p>
<p><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_37.htm" target="_blank">CBEC CIRCULAR NO. 37</a> <strong>and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cuscir07_38.htm" target="_blank">38/2007-Cus., Dated: <st1:date ls="trans" Month="10" Day="9" Year="2007" u1:st="on"><st1:date
ls="trans" Month="10" Day="9" Year="2007" w:st="on">October 9, 2007</a></u></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>SAD
exemption allowed for import of goods under DEPB from <st1:place u1:st="on"><st1:City u1:st="on"><st1:City w:st="on"><st1:place
w:st="on">Guntur ICD</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sometimes, the after effects of omissions in drafting notifications may be felt even after 10 years. In 1997, when the DEBP exemption Notification 34/97-Cus dated 7.4.1997 was issued, Guntur ICD was not mentioned as a specified port under this notification. This omission was made good vide notification No.87/97-Cus dated 27.11.1997, by which ICD, <st1:City w:st="on"><st1:place
w:st="on"><st1:place u1:st="on"><st1:City u1:st="on">Guntur was also included in notification No.34/97-Cus as an eligible port under the DEPB Scheme. But, what about the period from7.4.1997 to 27.11.1997? The Indian Tobacco Association took the matter to AP High Court and the Department to Supreme Court and the SC upheld the order of the High Court of Andhra Pradesh stating that in this case the Central Government only intended to rectify a mistake and, thus, the same will have retrospective effect and retro-active operation. <u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2005/2005-TIOL-109-SC-CUS.htm" target="_blank">2005 -TIOL- 109 -CUS </a></u></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequent to the above, the DEPB licences were issued by DGFT sometime in September, <st1:metricconverter
ProductID="2006 in" w:st="on"><st1:metricconverter ProductID="2006 in" u1:st="on">2006 in respect of tobacco exports made from ICD, <st1:City w:st="on"><st1:place w:st="on"><st1:City u1:st="on"><st1:place u1:st="on">Guntur during the period 7.4.1997 to 26.11.1997. These licences are reportedly issued with an endorsement that "this DEPB is issued under Customs notification No. 34/97 dated 7.4.1997"</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the question is whether exemption from the special additional duty leviable under section 3(5) of CTA, 1975 can be allowed for the goods imported under DEPB Scheme against the above licences issued in pursuance of the Supreme Court judgement (as was prevalent during the period 7.4.1997 to 26.11.1997) or the said duty is required to be debited from the DEPB scrip / licence as is now being done in respect of regular DEPB licences.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board after consulting the Law Ministry has clarified that, exemption from special additional duty may be allowed for the goods imported under the DEPB Scheme against licences issued in pursuance of Supreme Court judgement during the period from 7.4.1997 to 26.11.1997 and that this duty is not required to be debited from the DEPB licence / scrip. </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_36.htm" target="_blank">CBEC CIRCULAR NO. 36/2007-Cus., Dated: <st1:date ls="trans" Month="10" Day="3" Year="2007" u1:st="on"><st1:date
ls="trans" Month="10" Day="3" Year="2007" w:st="on">October 3, 2007</a></u></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Increase in Drawback rates retrospectively - no need to file supplementary claims in respect of claims against EDI Shipping Bills.</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vide Notification 68/2007-Cus(NT), dated 16.7.2007 the increased rates of duty drawback on specified items were given effect retrospectively from 1.4.2007. The representations from the trade on doing away with the requirement of filing supplementary claims has been considered by the Ministry and it has been decided to give one time relaxation to exporters under Rule 17 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 from filing supplementary claims against all EDI Shipping Bills in respect of which Let Export Orders (LEOs) were given by the Customs authorities during the period 1.4.2007 to 17.7.2007</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The differential drawback amount which has become due to the exporters against exports effected through EDI during this period will be paid to them without their having to file supplementary claims. The Directorate General of Systems has been requested to provide a suitable software to all EDI locations which will ensure that the differential amount of drawback gets automatically processed and credited to the exporters' accounts without their having to file individual supplementary claims. <u>However, in case of manual shipping bills the exporters shall be required to file supplementary claims as required under Rules 15 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995.</u></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_39.htm" target="_blank">CBEC CIRCULAR NO. 39/2007-Cus., Dated: <st1:date ls="trans" Month="10" Day="9" Year="2007" u1:st="on"><st1:date
ls="trans" Month="10" Day="9" Year="2007" w:st="on">October 9, 2007</a></u></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Export of wheat flour (maida) prohibited</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 44(RE-2006)/2004-2009, dated 09<sup>th</sup> February, 2007, DGFT had prohibited export of the following items:-</font></p>
<table width=450 border=1 align="center" cellpadding=3 cellspacing=0>
<tr>
<td width=42 valign=top class="Normal"> <p align=center style='text-align:center'><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. </font></strong></p></td>
<td width=99 valign=top class="Normal"> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Item HS Code </font></strong></p></td>
<td width=47 valign=top class="Normal"> <p align=center style='text-align:center'><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unit </font></strong></p></td>
<td width=165 valign=top class="Normal"> <p align=center style='text-align:center'><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Item Description </font></strong></p></td>
<td width=83 valign=top class="Normal"> <p align=center style='text-align:center'><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export Policy </font></strong></p></td>
<td width=122 valign=top class="Normal"> <p align=center style='text-align:center'><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nature of Restriction </font></strong></p></td>
</tr>
<tr>
<td width=42 rowspan=9 valign=top class="Normal"> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">46A</font></p></td>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 </font></p></td>
<td width=47 valign=top class="Normal"> <p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wheat and meslin </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
<tr>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 10 </font></p></td>
<td width=47 valign=top class="Normal"> <p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Durum wheat : </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
<tr>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 10 10 </font></p></td>
<td width=47 valign=top class="Normal"> <p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of seed quality </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
<tr>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 10 90 </font></p></td>
<td width=47 valign=top class="Normal"> <p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Other </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
<tr>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 90 </font></p></td>
<td width=47 valign=top class="Normal"> <p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Other: </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
<tr>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 90 10 </font></p></td>
<td width=47 valign=top class="Normal"> <p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wheat of seeds quality </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
<tr>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 90 20 </font></p></td>
<td width=47 valign=top class="Normal"> <p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Other wheat </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
<tr>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 90 31 </font></p></td>
<td width=47 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meslin of seed quality </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
<tr>
<td width=99 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1001 90 39 </font></p></td>
<td width=47 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=165 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Other </font></p></td>
<td width=83 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=122 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
</table>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now a new item as follows is added to the list of prohibited export items.</font></p>
<table width=450 border=1 align="center" cellpadding=3 cellspacing=0>
<tr>
<td width=66 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1101 </font></p></td>
<td width=47 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kg </font></p></td>
<td width=222 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wheat Flour (Maida), Samolina (Rava/Sirgi), Wholemeal atta and resultant atta </font></p></td>
<td width=90 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibited </font></p></td>
<td width=132 valign=top class="Normal"> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not permitted to be exported. </font></p></td>
</tr>
</table>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2007/dgft07not033.htm" target="_blank"> <u>DGFT Notification No. 33 (RE-2007)/2004-2009, Dated: <st1:date Year="2007" Day="8" Month="10" ls="trans" u1:st="on"><st1:date
ls="trans" Month="10" Day="8" Year="2007" w:st="on">October 8, 2007</u></a></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Export of Rice made free</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has made rice export free under the Policy with a restriction that Exports to <st1:place u1:st="on"><st1:country-region u1:st="on">Russian Federation</st1:country-region> permitted subject to preshipment quality certification issued by Sri Ram Institute for Industrial Research or any other agency as may be notified from time to time. </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/dgft07not034.htm" target="_blank">DGFT Notification No. 34 (RE-2007)/2004-2009, Dated: <st1:date ls="trans" Month="10" Day="8" Year="2007" u1:st="on"><st1:date
ls="trans" Month="10" Day="8" Year="2007" w:st="on">October 8, 2007</a></u></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Import of wheat - free indefinitely</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. 56 (RE-2006)/2004-09 dated 29<sup>th</sup> March, 2007, import of wheat is free till 31.12.2007. Now this is made free till further orders.</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/dgft07not035.htm" target="_blank">DGFT Notification No. 35 (RE-2007)/2004-2009, Dated: <st1:date ls="trans" Month="10" Day="8" Year="2007" u1:st="on"><st1:date
ls="trans" Month="10" Day="8" Year="2007" w:st="on">October 8, 2007</a></u></font></p>
<p align=center style='text-align:center'><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:PersonName u2:st="on"><st2:GivenName u2:st="on"><b><font color="#006600">Export of sugar to EU</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT has allocated a total quantity of 10,309 MTs of Raw Sugar out of free sale portion of 2007-2008 season's production for export to EU for the year 2007-2008 (October, 2007 to September, 2008). He has also allocated 10,000 MTs of White Sugar out of 2006-2007 season's production for export to EU for the year 2007-2008 (July, 2007 to June, 2008)</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/2007/dgft07pn061.htm" target="_blank">DGFT Public notice No. 61</a></u><b><u> and </u></b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2007/dgft07pn062.htm" target="_blank">62 (RE-2007)/2004-2009, Dated: <st1:date ls="trans" Month="10" Day="8" Year="2007" u1:st="on"><st1:date
ls="trans" Month="10" Day="8" Year="2007" w:st="on">October 8, 2007</a></u></font></p>
<p align=center style='text-align:center'><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> Our "THE <st1:stockticker u1:st="on"><st1:stockticker
w:st="on">COB(<st1:stockticker u1:st="on"><st1:stockticker
w:st="on">WEB)" is one year old</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We started the feature <b>"<font color="#663399">THE <st1:stockticker u1:st="on"><st1:stockticker w:st="on">COB(<st1:stockticker u1:st="on"><st1:stockticker
w:st="on">WEB)"</font> </b>on <st1:date ls="trans" Month="10" Day="12" Year="2006" u1:st="on"><st1:date
ls="trans" Month="10" Day="12" Year="2006" w:st="on">October 12 2006, basically to bring to your notice important issues which we were not able to cover in our other features and without even our realising it, <st1:stockticker u1:st="on"><st1:stockticker
w:st="on">ONE whole year is behind us. When we started the feature, Natarajan of Chennai told us, <b><font color="#663399">CPU of TIOL is going to occupy the monitor</font></b><font color="#663399">.</font> We are grateful that the column had been well received and we round up the anniversary today with a dreaded story on the anti-tobacco campaign. All the smokers and tobacco users, do keep a copy of today's <st1:stockticker u1:st="on"><st1:stockticker
w:st="on">COB(<st1:stockticker u1:st="on"><st1:stockticker
w:st="on">WEB) on your desktop. <b><font color="#663399">Don't smoke; the ashes you leave may be your own.</font></b></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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><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></b></font></strong></font></b></font></strong></font></b></font></strong></font></b></font></strong></font></p>
<p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service - Taxing?? Transfer??</b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Inter Zonal Transfers of Central Excise superintendents - Petitioner on the leave granted by High Court submitted a representation to the Board - Having submitted to the directions of the High Court, he is disentitled from challenging the order - Supreme Court declines to intervene</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Transfer is a touchy issue in the Revenue departments. Department seems to be ready to go to any lengths to make the life of the employees miserable by arbitrary mindless transfers and the employees also seem to be ready to go to any lengths to challenge such transfers. Here is a Superintendent who is before the Supreme Court against his transfer order. And generally the Courts don't interfere with administrative transfer orders.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The petitioner, a Central Excise Superintendent is aggrieved by the High Court order against his transfer and is before the Supreme Court.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The petitioner had been appointed as Inspector, Central Excise, in 1982. Subsequently, in 2003 he was promoted to the post of Superintendent under the <st1:City u1:st="on">Bhopal zone which comprised of the Commissionerates of Bhopal, <st1:City u1:st="on">Indore and <st1:City u1:st="on"><st1:place u1:st="on">Raipur. On 19.2.1994 the Department of Revenue in the Ministry of Finance, Government of India, issued a circular addressed to amongst others all the Chief Commissioner of Central Excise containing certain instructions regarding the discontinuance of inter-Commissionerate transfers. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF0000">Service Tax</font></b> <b> </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Gold smith - Technical Certification Services? - Stay granted by Tribunal</font></b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INGENUITY</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>of the Department in exploring new areas of taxation, knows no bounds. You go to a Bank for a loan pledging your gold ornaments and you fin d a goldsmith there to test the purity of the gold. The bright Central excise Officer found this goldsmith violating all the provisions of the Act and evading a huge sum of about Rs. 12,000/- spread over a period of two years. He was charged with providing 'technical inspection and certification' service.</font></p>
<p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Settlement </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">No immunity from prosecution by Settlement Commission in cases where proceedings of prosecution already instituted - But what is the relevant date? - Date of registration of FIR or when challan is presented before Magistrate? - HC finds an answer</font></b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>127H of the Customs Act empowers the Settlement Commission to grant immunity from prosecution / penalty either wholly or in part for any offence under the Customs Act with respect to the case covered by the settlement.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is only when a charge sheet is presented before the Magistrate that it could be said that proceedings for the prosecution for any offence have been instituted.</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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Carried forward investment allowance is not business loss for purpose of Sec 72 - Benefit of set off against capital gains not allowed : Madras HC</font></b></font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INCOME</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>Tax Act allows a whole basket of allowances to be set off against income. But in the statutory scheme of things, as explained under Sections ranging from 70 to 80, which allowance is to be allowed to be set off first or in a particular order has also been ingrained. But the question of interpretation often leads to disputes. And in this case while setting aside the order of the Tribunal the Madras High Court has held that <b><font color="#663399">the carried forward investment allowance cannot be treated as a business loss for the purpose of Section 72 to have the benefit of set off of capital gains.</font></b></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>
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