TIOL-DDT 720 · 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><font size="2"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 720</font></b><font face="Verdana, Arial, Helvetica, sans-serif"><b><br> 16.10.2007<br> Tuesday</b></font></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Onion export made almost impossible.</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Onions are being sold at Rs. <st1:metricconverter ProductID="30 a" w:st="on">30 a Kg and sure to bring tears into the eyes of politicians, especially with the sword of elections hanging by a hair over their heads!</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At present export of onions, is allowed only through NAFED and certain other State Trading Organisations. <b><font color="#663399">DDT</font></b> had reported on 3.10.2007 <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6148" target="_blank">DDT 711</a></u> that NAFED had decided not to issue 'No Objection Certificates' till 15<sup>th</sup> October 2007. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday was 15<sup>th</sup> October and what now? Maybe DGFT wanted some time to amend the Policy. Anyway DGFT has acted on time. Yesterday it issued a notification amending the Schedule 2 of ITC (HS) Classifications of Export and Import Items. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now <st2:Sn w:st="on">Onions</st2:Sn> can be exported only through designated canalizing agencies subject to conditions laid down by DGFT from time to time. Maybe by the time the DGFT lays down the conditions, onion prices will stabilize!</font></p> <p><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/dgft07not037.htm" target="_blank">DGFT NOTIFICATION NO. 37 (RE - 2007)/2004-2009 Dated: October 15,2007</a></u></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Export of rice prohibited</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was only just a week ago on 8th October that DGFT allowed free export of rice. Please see <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6185" target="_blank">DDT 716 - 10.10.2007</a></u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6185">. </a></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the DGFT has issued a notification prohibiting export of rice other than basmati rice - and retrospectively with effect from 9.10.2007. Can the DGFT retrospectively prohibit export? What happens to exports already made from 9<sup>th</sup> to 15<sup>th</sup> October? </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/dgft07not038.htm" target="_blank">DGFT NOTIFICATION NO. 38 (RE- 2007)/2004-2009 Dated: <st1:date ls="trans" Month="10" Day="15" Year="2007" w:st="on">October 15, 2007</a></u></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff Value of Brass Scarp - Increased</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has increased the Tariff Value of imported Brass Scrap from US $. 4461 to US$.4495. There is no change in the Tariff Value of other products.</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=24&filename=notification/custom/2007/cnt07_103.htm" target="_blank">NOTIFICATION NO. 103/2007-Cus.,(<st2:GivenName w:st="on">N.T.</st2:GivenName>), Dated: <st1:date ls="trans" Month="10" Day="15" Year="2007" w:st="on">October 15, 2007</a></u></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><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>FEMA </b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Can a Special Director of <st2:GivenName w:st="on">ED</st2:GivenName> prefer appeal before HC against order passed by FERA Board? No, says Supreme Court</font></b></font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>short but interesting question before the Supreme Court was whether a Special Director appointed under the Foreign Exchange Regulation Act, 1973 himself can prefer an appeal before the High Court against an order passed by the Foreign Exchange Regulation Appellate Board.</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>Appeal to High Court only on a question of law, not fact - Supreme Court</b> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is an appeal by an assessee against the fixation of the Annual Capacity of Production.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court held that High Court can hear an appeal only if there was a substantial question of law.</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>Income admitted during search - Depreciation claimed from such income - no particulars of plant, machinery and furniture submitted - depreciation cannot be allowed : ITAT by majority</b> </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">ON</font> </b>account of difference between the Members of Pune Bench, the following question has been referred to the president as Third Member</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Whether on the facts and in the circumstances of the case, the assessee is entitled to depreciation on plant and machinery and furniture and fixtures."</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The President was a little surprised at the JM's findings that amount disclosed represented enhanced value of existing plant and machinery, furniture and fixtures and that after the search, the value was modified and changed in the books of account as per declaration u/s 132(4) of the Income Tax Act. This, he says, is an afterthought.</font></p> <p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax </b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Whether a contract for construction is works contract on a turnkey basis and not a consultancy contract - conflicting decisions - matter referred to Larger Bench of Tribunal</font></b></font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Contracting work!</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> </b>By the way, the Finance Act, 2007 enacted on 11.05.2007 has brought the services of "Works contract" under the ambit of Service Tax and the levy is effective from <st1:metricconverter ProductID="1 st" w:st="on">1 st June 2007. Incidentally, as a trade facilitation measure and also for ease of administrative convenience an Optional Composition Scheme for Works contract was notified vide Notification No. 32/2007-Service Tax, dated 22-5-07 (w.e.f 01.06.07), whereby the service provider has been given an option to pay service tax equivalent to 2% of the total value of the works contract instead of paying service tax at the rate specified in section 66. So, the Larger Bench decision, if & when it comes would probably be another academic exercise. </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>