TIOL-DDT 754 · 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 754</font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
04.12.2007<br>
Tuesday</font></b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Export Promotion Schemes - New ports added</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Export Promotion exemption notifications have a condition that </font></p>
<blockquote>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">the imports against the said certificate are undertaken through sea ports at Mumbai, Sikkim, Kolkata, Cochin, Magdalla, Kakinada, Kandla, Mangalore, Marmagoa, Chennai, NhavaSheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Mundhra, Nagapattinam, Okha, Bedi including Rozi-Jamnagar, Muldwarka, Porbander, Dharamtar and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Kolkata, Coimbatore, Delhi, Hyderabad, Jaipur, Chennai, Srinagar, Trivandrum, Varanasi, Nagpur, Cochin, Rajasansi (Amritsar) and Lucknow (Amausi) or through any of the Inland Container Depots at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Indore), Surat, Tirupur, Varanasi, Nasik, Rudrapur (Nainital), Dighi (Pune), Vadodara, Daulatabad (Wanjarwadi and Maliwada), Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondicherry, GarhiHarsaru, Bhatinda, Dappar (DeraBassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur, Dadri, Tuticorin, Kundli, Bhadohi, Raipur, Mandideep (District Raisen), Durgapur (Export Promotion Industrial Park) and Babarpur or through the Land Customs Station at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva (Sonauli), Petrapore, Mahadipur, Nepalganj Road, Dawki, Agartala, Sutarkhandi, Amritsar Rail Cargo and Attari Road or Special Economic Zones as specified in the notification issued under Section 76A of the said Customs Act;</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now ICDs of Hilli Ghojadanga and Changrabandha are added to the above list. 21 notifications are amended.</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_116.htm" target="_blank">NOTIFICATION NO. 116/ 2007-Cus., Dated: <st1:date ls="trans" Month="11" Day="30" Year="2007" w:st="on">November 30, 2007</st1:date></a><st1:date ls="trans" Month="11" Day="30" Year="2007" w:st="on"></st1:date></u></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti-dumping duty onCeftriaxone Sodium Sterile </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional anti dumping duty has been imposed on imports of Ceftriaxone Sodium Sterile (also known as Ceftriaxone Disodium Hemiheptahydrate-Sterile)falling under tariff item 2941 90 90 or 2942 00 90 originating in, or exported from, the People's Republic of <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>. The duty shall be effective up to and inclusive of the 29 th May, 2008.</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_117.htm" target="_blank">NOTIFICATION NO. 117/ 2007-Cus., Dated: <st1:date ls="trans" Month="11" Day="30" Year="2007" w:st="on">November 30, 2007</st1:date></a><st1:date ls="trans" Month="11" Day="30" Year="2007" w:st="on"></st1:date></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Delhi Chamber of Commerce authorised to issue Certificate of Origin</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per para 2.21.2 of the HOP,<font color="#663399"> Government has also nominated certain agencies to issue Non Preferential CoO in accordance with Article II of International Convention Relating to Simplification of Customs formalities, 1923. These CoOs evidence origin of goods and do not bestow any right to preferential tariffs. List of notified agencies is provided in Appendix <st1:metricconverter
ProductID="4C" w:st="on">4C</st1:metricconverter>.</font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>'Now, the Delhi Chamber of Commerce has been added to the list.</strong></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/dgft07pn087.htm" target="_blank">PUBLIC NOTICE NO. 87 (RE-2007)/2004-2009, Dated: <st1:date ls="trans" Month="11" Day="29"
Year="2007" w:st="on">November 29, 2007</st1:date></a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2007/dgft07pn087.htm"><u> </u></a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tariff Value of Brass Scarp - Decreased; Poppy seeds up</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
CBEC has decreased the Tariff Value of imported Brass Scrap from US Dollars
4368 to US Dollars 4077. Tariff value for poppy seeds sees a huge rise
from 3927 Dollars to 5398 Dollars. Tariff value was changed for poppy
seeds only a fortnight ago. 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_116.htm" target="_blank">NOTIFICATION NO. 116/2007-Cus.,(</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_116.htm"><st2:GivenName w:st="on"><u>N.T.</u></st2:GivenName><u>), Dated: Decemeber 03, 2007</u></a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>45% growth in Income Tax Collections - 1.5 lakh Crores!</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Has income increased or compliance increased? Either way the collections are soaring with the direct collection already at a staggering 1.45 Lakh Crores! Where are the new rich Indians staying? In personal income tax <st2:GivenName w:st="on">Madhya</st2:GivenName> <st2:Sn w:st="on">Pradesh</st2:Sn> region showed the highest growth with an increase of 157% followed by Modi's <st1:place
w:st="on">Gujarat</st1:place> at 68% and <st1:PersonName w:st="on"><st2:GivenName
w:st="on">Andhra</st2:GivenName> <st2:Sn w:st="on">Pradesh</st2:Sn></st1:PersonName> at 56%. Corporate tax collections showed the highest growth in Guwahati - North East means business now. Even <st1:stockticker
w:st="on">TDS</st1:stockticker> collections have shown an increase of 50%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where is all this money going? The government must have spent more than five Crores of Rupees on removing that great doctor Venugopal from AIIMS - and you know we all paid for it!</font></p>
<p></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Drugs online - <st1:PersonName w:st="on"><st2:GivenName w:st="on">Sanjay</st2:GivenName> <st2:Sn w:st="on">Kedia</st2:Sn></st1:PersonName> loses bail case in Supreme Court</b> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:PersonName w:st="on"><st2:GivenName
w:st="on">Sanjay</st2:GivenName> <st2:Sn w:st="on">Kedia</st2:Sn></st1:PersonName>, educated in <st1:City
w:st="on">Delhi</st1:City>'s <st1:stockticker w:st="on">IIT</st1:stockticker> and <st1:place w:st="on"><st1:PlaceName w:st="on">North Carolina</st1:PlaceName> <st1:PlaceType w:st="on">University</st1:PlaceType></st1:place> and <st1:stockticker
w:st="on">CEO</st1:stockticker> of Xponse Technologies was arrested in February 2007 on charges of arranging sale of drugs online. His several attempts to get bail culminated in the Supreme Court yesterday rejection his appeal. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6459" target="_blank">We bring you the full text of the case and analysis today</a>.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
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<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>TIOL SMASHING NEWS</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lots
of stories are carried in the media about the humiliating treatment meted
out to <st1:PersonName w:st="on"><st2:GivenName
w:st="on">Shri</st2:GivenName> <st2:middlename
w:st="on">Amitabh</st2:middlename> <st2:Sn w:st="on">Bachchan</st2:Sn></st1:PersonName> and
family by the Service Tax Department but today we bring you news on how
kind the Customs Department was to the Bachchans - Don't miss our <u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6461" target="_blank">editorial </a></u></font></p>
<p align=center>
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<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Jurispruden</font><font color="#663399" size="5">tiol</font> - <font color="#006600">Tomorrow's cases</font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><strong><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></strong></b></font></b></font></b></font></b></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Central Excise </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6633">What constitutes manufacture would depend upon the facts of each case. Neither the condensing unit nor the cooling unit by itself is a complete air conditioner. It is only when these two units are put together the complete unit of air conditioner came into existence. Air conditioner is a commercially new article than either the condensing unit or the cooling unit. - Supreme Court</font></b></font><font color="#FF6633" 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 appellant, Fedders Lloyd Corporation Ltd., cleared condensing units from their unit at Kalkaji, <st1:place w:st="on"><st1:City w:st="on">New Delhi</st1:City></st1:place> to Mumbai, where the appellant purchased cooling units from local manufacturers fabricated on order with motors, etc., supplied by the appellant. After carrying out certain tests for quality by filling gas, affixing the brand name `Fedders Lloyd', the complete unit was cleared along with pipe kits, electrical cord, remote control, etc., to various customers from their warehouse/godown at Mumbai. The invoices were raised by the appellant's Mumbai office for supply of split air- conditioners.</font></p>
<p align="justify"><font color="#663399" 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="#FF6633">Setback for banks; Assessee makes provision for standard assets as per RBI norms - Deduction can be allowed only if specific liabilities are incurred : ITAT</font></b></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>question before the Tribunal was : Is deduction available u/s 36(1)(viia) or u/s 37(1) against the provision for standard assets made by a bank? And, ruling against the assessee the Tribunal has held that a provision which is a charge on the profits can be allowed only if the assessee establishes that it has already incurred a liability. If that is not the case, creation of a provision to merely comply with some guidelines cannot be allowed as deduction.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Service Tax </font></b></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> </b></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Outdoor Catering Services provided in company canteen - does it indirectly assist manufacturing activities? - Cenvat Credit eligibility - Tribunal orders pre-deposit</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case, the manufacturer had availed Cenvat credit of Service Tax paid on 'Outdoor Catering services' that were provided in the canteen of the applicant's factory premises. The lower authorities denied the Cenvat Credit of Rs.33,956/- and imposed a penalty of Rs.5000/-.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Anti-dumping</font></b></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6633">Anti-dumping duty during 'interregnum period' - Matter referred to Larger Bench of Tribunal</font></b></font><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> </b></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> the case of Nitco Tiles Ltd. vs. Designated Authority [<a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2005/2005-TIOL-1317-CESTAT-DEL-LB.htm"><font size="1">2005-TIOL-1317-CESTAT-DEL-LB</font></a>], the Larger Bench of the Tribunal while dismissing the petition of Nitco Tiles against the anti-dumping notification on import of vitrified/porcelain tiles observed that the petition was mis-conceived and ruled that rule 20(2)(a) is <i>intra vires </i>the provisions of the said Act and that the anti- <i>dumping duty had been validly imposed with effect from the date of imposition of the provisional anti-dumping duty and would continue to operate even during the "interregnum" period. </i>Said decision was also followed in the case of Bansilal Leisure Parks Ltd. vs. CC, Kolkata, [<font size="1"><a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-1388-CESTAT-DEL.htm">2007-TIOL-1388-CESTAT-DEL</a></font>] by opining that the decision of the three Member Anti-Dumping Bench, which is in favour of Revenue, is binding on the other Benches of the Tribunal.</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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