TIOL-DDT 906 · 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=utf-8"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font color="#663399" size="3">TIOL-DDT 906 </font><br/>11.07.2008 <br/>Friday </strong></font></p> <p align="center"><strong><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"> Textile Imports from Pakistan or Sri Lanka - Duty reduced to 10%</font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">The Government has notified the Customs Duty on import of various textiles and textile articles, imported from Islamic Republic of Pakistan or Democratic Socialist Republic of Sri Lanka, to be 10%. Earlier the duty was 10% or some specific rate whichever was higher. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_083.htm" target="_blank">Notification No. 83/2008 – Cus , Dated: July 1, 2008</a><strong> </strong></font></p> <p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Production of pre-shipment Certificate for clearance of imported textiles and textile articles - DGFT clarifies </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Regarding difficulties experienced in clearance of imported textiles and textile articles because of different interpretations by different custom authorities in respect of the statutory provisions to ensure that the said items do no contain any hazardous dyes, the DGFT clarifies, </font></p> <blockquote><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(i) The pre-shipment testing, certificate issued by Textile Testing Laboratory accredited to the National Accreditation Agency of the country of origin should be accepted. </font></p><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(ii) If a pre-shipment testing report as stated at ( i ) above is not available, then only customs may draw samples and send the same to Textiles committee. </font></p><p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">(iii) When testing report is called from Textiles Committee, Customs must follow the parameters (a), (b) and (c) mentioned in para 2 of the Notification No.29 dated 28.1.2004 </font></p></blockquote> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=1&filename=wnew/meorandum.htm" target="_blank">OFFICE MEMORANDUM in No. 01/89/180/Misc. 39/AM 05/PC-1(A) of the DGCA , Dated: March 27, 2008 </a></font></p> <p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Late applications – DGFT extends time to two years </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">As per Para 9.3 of the HOP, Wherever any application is received after expiry of last date for submission of such application, the application may be considered after imposing a late cut in the following manner: </font></p> <div align="justify"><table align="center" border="1" cellpadding="3" cellspacing="0" width="450"><tbody><tr><td valign="top" width="32"><p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">1. </font></p></td><td valign="top" width="356"><p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Application received after the expiry of last date but within six months from the last date </font></p></td><td valign="top" width="60"><p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">2% </font></p></td></tr><tr><td valign="top" width="32"><p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">2. </font></p></td><td valign="top" width="356"><p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Application received after six months from the prescribed date of submission but not later than one year from the prescribed date </font></p></td><td valign="top" width="60"><p><font face="Verdana, Arial, Helvetica, sans-serif" size="2">5% </font></p></td></tr><tr><td valign="top" width="32"><p><font color="#ff0000" face="Verdana, Arial, Helvetica, sans-serif" size="2">3. </font></p></td><td valign="top" width="356"><p><font color="#ff0000" face="Verdana, Arial, Helvetica, sans-serif" size="2">Application received after twelve months from the prescribed date of submission but not later than two years from the prescribed date </font></p></td><td valign="top" width="60"><p><font color="#ff0000" face="Verdana, Arial, Helvetica, sans-serif" size="2">10% </font></p></td></tr></tbody></table></div> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Sl. Nos 1 and 2 were already there; now Sl. No. 3 is added. </font></p> <p align="justify"><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn045.htm" target="_blank"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>DGFT PUBLIC NOTICE No. 45 (RE-2008)/2004-2009 Dated 7 July, 2008 </strong></font></a></p> <p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Change in the port of export after issue of Duty Credit Scrip </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">DGFT has amended Para 3.23.3 of the HOP to add, </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">“After issue of Duty Credit Scrip, but before registration with Customs, the Applicant can change the port of registration from RA concerned.” </font></p> <p align="justify"><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn047.htm" target="_blank"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>DGFT PUBLIC NOTICE No. 47 (RE-2008)/2004-2009 Dated 8 July, 2008</strong></font></a></p> <p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Export Obligation – no need of electronic filing </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">As per par 5.9.1 of the HOP, “Authorization holder shall submit to RA concerned by 30th April of every year, report on fulfillment of export obligation. <font color="#ff0000">Such report shall also be submitted electronically on DGFT website.</font> RA concerned may issue partial EO fulfilment certificate, provided export performance is proportionately adequate to fulfilment of export obligation.” </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Now it is amended to delete the words, <font color="#ff0000">“Such report shall also be submitted electronically on DGFT website” </font></font></p> <p align="justify"><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn048.htm" target="_blank"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>DGFT PUBLIC NOTICE No. 48 (RE-2008)/2004-2009 Dated 8 July, 2008 </strong></font></a></p> <p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>End use certificate for imports into India </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">DGFT has amended HOP to provide, </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">“ In case of import of any freely importable item in India , if a foreign Government insists on certification of end user of the item, before permitting export of the same from their country, RA may issue such certificates as per Appendix 31A of HBPv1 . The certificate shall be issued based on application made under ANF 2C -1 along with documents prescribed therein”. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Appendix 31A and ANF 2C -1 are notified as Annexure-1 and Annexure-2 of this Public Notice. </font></p> <p align="justify"><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn049.htm" target="_blank"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>DGFT PUBLIC NOTICE No. 49 (RE-2008)/2004-2009 Dated 8 July, 2008 </strong></font></a></p> <p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Murder vs Evasion </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Section 302 of the Indian Penal code reads: </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>302- Punishment for murder: </strong>Whoever commits murder shall be punished with death or imprisonment for life and shall also be liable to fine. </font></p> <p align="justify"><font color="#ff6633" face="Verdana, Arial, Helvetica, sans-serif" size="2">Imagine this </font><font face="Verdana, Arial, Helvetica, sans-serif" size="2">- Government finds that during last year, the provisions of Section 302 were not put to proper use. There are 20,000 Police Stations in India and the average case of punishment under Section 302 is not even one for each Police Station. All the police officers are requested to ensure that the provisions of this Section are put to proper use by sending at least one person for awarding death sentence. </font></p> <p align="justify"><font color="#ff0000" face="Verdana, Arial, Helvetica, sans-serif" size="2">Wait before you start laughing and read this : </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Rule 12 CC of the Central Excise Rules and Rule 12 AA of the CENVAT Credit Rules provide for deterrent action against certain class of offenders under the Central Excise Act. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">In a recent Conference with the Chief Commissioners, it was felt that the deterrent measure is not having the desired impact in the field. The Board should re-examine the scheme with the objective of making it more effective. It is also observed that only 48 deterrent orders have been passed during January 2007 to March 2008 which does not amount to even one case per Commissionerate. CCs should take immediate steps to improve the performance. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">So now, like the epic of Bakasura , each Commissioner should ensure that at least they select one manufacturer to be punished under deterrent provisions. </font></p> <p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Arrest Warrant against CESTAT Asst. Registrar </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Nothing to do with CESTAT, but there is an Assistant Registrar in CESTAT against whom a Family Court in UP had issued five arrest warrants. The officer who works in the CESTAT and who lives in the Central Excise quarters is of course beyond the reach of the Police. In the meantime the AR has filed an application in the CAT to change the Enquiry Officer in a Departmental proceeding he is facing. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">The latest warrant requires the Police to produce him without fail or if there is any comment or request, it should be supported by the Member of CESTAT! </font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"></font><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Jurispruden<font color="#ff6633" size="5"> tiol</font></strong></font><strong><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"> – Monday's cases</font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><b><img align="left" alt="Legal Corner Icon" border="0" height="84" hspace="5" src="https://taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" width="100"/></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></font><font color="#663399">Customs</font> </strong></font></p> <p align="justify"><font color="#ff6633" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Refund claim is not maintainable unless original order of assessment for levy of duty is challenged: CESTAT </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>HERE </strong>is another saga of cases where Tribunal (benches) have been at loggerheads in deciding the issues. Well each Tribunal bench has its own reasoning and follows a set of judicial precedents and the loser is the assessee not knowing which case to be relied upon when they are hit with a show cause notice by the Department. The issue involved is whether refund claim is maintainable if the earlier order of assessment for levy of duty is not challenged by the assessee. Earlier the Bangalore Bench of the Tribunal in Jindal Vijaynagar Steels Ltd = [ <a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2006/2006-TIOL-1979-CESTAT-BANG.htm"><strong><font size="1">2006-TIOL-1979-CESTAT-BANG</font> </strong></a>] and Aditya Birla Nuvo Limited = [ <a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-2297-CESTAT-BANG.htm"><strong><font size="1">2007-TIOL-2297-CESTAT-BANG</font> </strong></a>] after deliberating extensively on the prevailing case laws and relying on the decision of the Apex Court in Karnataka Power Corporation Limited = [ <strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2002/2002-TIOL-567-SC-CUS-LB.htm"><font size="1">2002-TIOL-567-SC- CUS -LB </font></a></strong>] held that the refund claim would sustain itself irrespective of the fact that the earlier order of assessment was not challenged by the assessee. Interestingly, the decision of the Apex Court in the Karnataka Power Corporation Limited case is on re-classification of goods and re-assessment of duty on such goods which were filed before the jurisdictional Assistant Collector. The Apex Court held that since the application for the same is filed before the Assistant Collector himself the matter was remanded back to this original authority to deal with the issue. </font></p> <p align="justify"><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Customs </strong></font></p> <p align="justify"><font color="#ff6600" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Scribbling by Commissioner on margins of party's letter is also appealable under Section 129A (1)(a) of Customs Act – Conversion of Drawback shipping bill into DEEC shipping bills can be allowed as no drawback claimed: Tribunal </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">As for the point raised by the Revenue that the letter communicating the decision of the Commissioner refusing to convert the shipping bills is not an order that can be appealed to the Tribunal, the Bench noted that the Division Bench in the case of Jindal Stainless Ltd. [ <strong><a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2005/2005-TIOL-99-CESTAT-MAD.htm"><font size="1">2005-TIOL-99-CESTAT-Mad</font> </a></strong>] has held that even notings of the Commissioner/scribble on margins of party's letter is appealable u/s 129A (1)a) of the Customs Act, and hence the argument raised was not a valid one. </font></p> <p align="justify"><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>Income Tax </strong></font></p> <p align="justify"><font color="#ff6633" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>The law is settled: If business liability is definitely arisen in accounting year, deduction should be allowed although liability may have to be quantified and discharged at future date: ITAT </strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">What should be certain is the incurring of the liability. It should also be capable of being estimated with reasonable certainty though the actual quantification may not be possible. If these requirements are satisfied the liability is not a contingent one. The liability is in present though it will be discharged at a future date. It does not make any difference if the future date on which the liability shall have to be discharged is not certain. </font></p> <p align="justify"><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>See our columns Monday for the judgements</strong></font></p> <p align="justify"><font color="#ff6600" face="Verdana, Arial, Helvetica, sans-serif" size="2">Until Monday with more<strong> DDT </strong></font></p> <p align="justify"><font color="#ff6600" face="Verdana, Arial, Helvetica, sans-serif" size="2">Have a nice Weekend. </font></p> <p align="justify"><font color="#ff6600" face="Verdana, Arial, Helvetica, sans-serif" size="2">Mail your comments to</font><font face="Verdana, Arial, Helvetica, sans-serif" size="2"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>