TIOL-DDT 846 · 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" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 846 </font></strong><br> <strong>16.04.2008 <br> Wednesday</strong> </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exemption to goods imported/procured from warehouses or international exhibitions in India for production, packaging or manufacture of export goods by EOU/STP/EHTP units </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Notification No. 52/2003 Customs, dated 31st March, 2003 exempts goods when imported or procured from a Public Warehouse or a Private Warehouse appointed or licensed, as the case may be, under section 57 or section 58 of the said Customs Act or from international exhibition held in India for the purposes of - manufacture of articles for export or for being used in connection with the production or packaging or job work for export of goods or services. <br> <br> Certain amendments are made in this notification. <br> <br> Goods taken abroad for processing may be sold there without bringing back to India - (va) permit the goods partially processed or manufactured or packaged therefrom in the unit to be taken out of India for the purpose of processing on subcontract basis and clear therefrom the goods so processed without bringing back into India: <br> <br> Provided that the goods partially processed or manufactured or packaged so taken out of India are specified in the Letter of Permission or Letter of Intent issued by the Development Commissioner;” <br> <br> No de-bonding of Capital Goods if Positive NFE is not achieved: no such clearance or debonding of capital goods under the Export Promotion Capital Goods Scheme of Chapter 5 of the Foreign Trade Policy shall be allowed if the unit has not fulfilled the positive NFE criteria at the time of clearance or debonding in terms of Para 6.18 (d) of Foreign Trade Policy. <br> <br> Exemption to spares – increased from 1.5% to 5%: “(i) the exemption contained herein shall also apply to spares and components, to the extent of 5 percent. of the Free on Board (FOB) value of the manufactured articles exported by the unit during the preceding year for the purpose of supply of such spares and components for after-sale-service of the exported articles to the same consignor or buyer to whom manufactured articles were exported and the said officer is satisfied that the Cost Insurance Freight (CIF) value of such imported spares and components has been included for computation of sum total of all imported goods for arriving at the NFE as required under the Foreign Trade Policy;” <br> <br> Inputs for export of services added: Sl. No. 17 of Annexure 1 read as, “Any other item required in relation to production of export goods with the prior approval of the Board of Approval.” Now it is amended to <br> <br> “Any other item required within the unit in relation to production for export of goods or services with the prior approval of the Board of Approval.” <br> <br> Similar amendments are made to Notification No. 22/2003-Central Excise, dated the 31st March, 2003. <br> <strong><br> </strong><font color="#0000CC"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_047.htm" target="_blank">NOTIFICATION NOs. 47/2008-Cus., and 24 /2008-CX., Dated: April 11, 2008</a> </font></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti dumping duty on Sulphur Black</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has imposed anti dumping duty on Sulphur Black originating in, or exported from, the People's Republic of China and imported into India. <br> <br> This anti dumping duty will be valid only for a period of six months till 10th October, 2008. <br> <br> <font color="#0000CC"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_048.htm" target="_blank">NOTIFICATION NO. 48/2008-Cus., Dated: April 11, 2008 </a></font></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti dumping duty on sodium nitrite – no duty between 28th March and 10th April – a mistake or intentional?.</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Sodium Nitrite originating in, or exported from, the European Union, was imposed by Notificationo. 132/2002-Cus., dated 29-11-2002. By Notification No. 51/2005-Cus., dated 27-5-2005, this was extended for a period of five years from 29.11.2002. By Notification No. 44/2007 -Customs dated the 21 st March, 2007, this was extended till 27th March 2008. So from 28th March, there was no anti dumping. Now suddenly on 11th April, the Government issues a notification imposing anti dumping duty on the same Sodium Nitrite. <br> <br> Had somebody forgotten to extend the notification? <br> <br> <font color="#0000CC"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_049.htm" target="_blank">NOTIFICATION NO. 49/2008-Cus., Dated: April 11, 2008 </a></font></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>US Income Tax returns – Today is the last date</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">April 15 is the deadline for filing a federal tax return. But not everybody can meet that deadline. If a tax payer needs more time to get his paperwork in, he has to file a Form 4868, Automatic Extension of Time to File, with the IRS by the April 15 deadline and he will get an automatic six-month extension of time to file. The extension gives time until Oct. 15 to file the tax return. <br> <br> The IRS wants the Taxpayers to note that an extension of time to file is not an extension of time to pay. Tax has to be paid by April 15; otherwise, the outstanding tax balance will accrue interest and possibly penalties, increasing the total amount. IRS has advised, “If you can't pay the full amount that you owe by April 15, pay as much as you can to minimize the interest and penalty charges.” <br> <br> E-filing: IRS wants the taxpayers to take advantage of e-filing, which is fast, accurate and easy. Most available tax preparation programs check for errors and necessary information, increasing the accuracy of the return and reducing the need for correspondence with the IRS to clarify errors or omissions. With most programs taxpayers can usually file a state tax return at the same time they electronically file their federal return. Once the return is accepted for processing, the IRS electronically acknowledges receipt of the return. Generally, when someone files electronically, their refund will be issued in about half the time it would take if they had filed a paper return. <br> <br> Up to 4.4.2008, 96,821,000 returns have been filed of which 67,437,000 were filed electronically, of which 47,184,000 were prepared by Tax Professionals, while 20,253,000 were self prepared. <br> <br> A Letter to the Editor in a US newspaper yesterday lamented,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The politicians who support the present state of the tax code must be either stupid or crooks on the take. It has been estimated that the preparation of tax returns costs the American taxpayers more than $500 billion each year. If the taxpayers retained this money, it could be used to create millions of new jobs, thousands of new factories, and hundreds to thousands of new companies, and might make politicians somewhat more honest, at least until they could find another source of bribe money. <br> <br> This $500 billion is a total waste, and the thousands of pages of indecipherable tax code has created a very large and powerful parasitic class of people consisting of the tax preparers and their lobbyists, tax lawyers and their lobbyists, tax judges and large corporations expecting special tax treatments for their bribes (campaign contributions). <br> <br> If the tax code were simplified to a flat tax, taxpayers would save $500 billion per year, and it wouldn't cost the government a dime. These tax people could then get honest jobs that contribute to the economy. ... A flat tax will be the first step necessary to get the graft and corruption out of the U. S. income tax code. <br> <br> Would you like to pat the Indian Taxmen?</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Jurispruden<font color="#FF6633" size="5">tiol</font> – Tomorrow's cases</strong> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><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></font></strong></font></strong></font></strong></font><font color="#663399"><strong>Income Tax </strong></font><br> <br> <strong><font color="#FF6633">Sale of diamonds to non existing customers – reopening of assessments – High Court not to interfere: Allahabad HC </font></strong><br> <br> The formation of belief by the assessing officer is within the realm of subjective satisfaction and at the stage of issuance of notice the only question is whether there was relevant material upon which a reasonable person could have formed requisite belief or not. Beyond this there is no scope of judicial review in such matters. Remedy under Article 226 of the Constitution of India is discretionary and even if there is some irregularity or illegality, the Court is not bound to exercise discretion at the instance of the petitioner if it is satisfied that it is not otherwise a fit case warranting exercise of discretionary jurisdiction under Article 226 of the Constitution. <br> <br> <font color="#663399"><strong>Central Excise </strong></font><br> <br> <font color="#FF6633"><strong>Cenvat Rule 6 issue goes to Larger Bench – SC decision in Chandrapur was delivered in the context of rule 57C & not 57CC or rule 6 of CCR – present rule is unambiguous & clear – matter referred to LB as coordinate benches hold contrary views - Tribunal. </strong></font><font color="#660099"><br> </font><br> The following question is framed for the purpose – <br> <br> “Whether the provisions of Rule 6(3)(b) of the Cenvat Credit Rules, 2002 are applicable or not, when the amount equivalent to the Cenvat credit attributable to the inputs used in, or in relation to, the manufacture of the exempted final product has been paid prior to the removal of the exempted final product from the factory?” <br> <br> <strong><font color="#663399">UP Trade Tax <br> </font></strong><br> <strong><font color="#FF6633">Yeast is a chemical - The Executive Act of issuing a notification is a legislative action. The authorities are supposed to know the meaning of the word used therein. - Supreme Court </font></strong><br> <br> Yeast is a chemical: 'Yeast‘, admittedly, has a chemical composition. It has a chemical formula. It was accepted to be a chemical by the assessing authority for a long time. <br> <br> Classification: It is now a well settled principle of law that in interpreting different entries, attempts shall be made to find out as to whether the same answers the description of the contents of the basic entry and only in the event it is not possible to do so, recourse to the residuary entry should be taken by way of last resort. It not only takes within its sweep as to what it would be, but what it can be or what it does. if there is a conflict between two entries one leading to an opinion that it comes within the purview of the tariff entry and another the residuary entry, the former should be preferred. <br> <br> <strong><font color="#663399">See our columns tomorrow for the judgements </font><font color="#FF6666"></font></strong><font color="#FF6666"><br> <br> Until Tomorrow with more DDT <br> <br> Have a nice time. <br> <br> Mail your comments to</font> <font color="#0000FF">vijaywrite@taxindiaonline.com </font></font></p> </body> </html>