TIOL-DDT 980 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 980</font><br>
29.10.2008<br>
Wednesday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export of Jewellery – Minimum value addition - reduced</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Minimum value addition prescribed for export of jewellery under para 4A.2.1 of the HOP regarding the Policy relating to Gem Replenishment Authorisation, and scheme
for gold/silver/platinum jewellery, is reduced</font></p>
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<td valign="top" width="44"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sl . No. </strong></font></p></td>
<td valign="top" width="337"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Item of Export </strong></font></p></td>
<td valign="top" width="134" colspan="2"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Minimum Value Addition </strong></font></p></td>
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<td valign="top" width="69"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>existing </strong></font></p></td>
<td valign="top" width="65"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>revised </strong></font></p></td>
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<td valign="top" width="44"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) </font></p></td>
<td valign="top" width="337"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Plain gold/platinum/silver jewellery and Articles and ornaments like Mangalsutra containing gold and black beads/imitation stones, except in studded form of jewellery . </font></p></td>
<td valign="top" width="69"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% </font></p></td>
<td valign="top" width="65"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3% </font></p></td>
</tr>
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<td valign="top" width="44"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) </font></p></td>
<td valign="top" width="337"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All types of Studded gold/ platinum/silver Jewellery and articles thereof. </font></p></td>
<td valign="top" width="69"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.5% </font></p></td>
<td valign="top" width="65"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5% </font></p></td>
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<td valign="top" width="44"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) </font></p></td>
<td valign="top" width="337"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any jewellery/articles manufactured by fully mechanised process </font></p></td>
<td valign="top" width="69"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2% </font></p></td>
<td valign="top" width="65"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.5% </font></p></td>
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<td valign="top" width="44"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) </font></p></td>
<td valign="top" width="337"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold/silver/platinum medallions & coins (excluding coins of the nature of legal tender) </font></p></td>
<td valign="top" width="69"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2% </font></p></td>
<td valign="top" width="65"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.5% </font></p></td>
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<td valign="top" width="44"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) </font></p></td>
<td valign="top" width="337"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold/ silver/platinum findings/ mountings manufactured by mechanised process </font></p></td>
<td valign="top" width="69"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3% </font></p></td>
<td valign="top" width="65"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.25% </font></p></td>
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</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2008/dgft08pn098.htm" target="_blank">DGFT Public Notice No. 98 (RE-2007) 2004-09, Dated: October 24, 2008</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs Commissioner, Delhi vested with the powers of 26 Authorities</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has appointed Commissioner of Customs (Import and General), New Customs House, Near IGI Airport, New Delhi as the Central Excise officer in 26 jurisdictions across the country for the purpose of adjudicating a specific DRI case.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_46.htm" target="_blank">Notification NO. 46/2008 – Central Excise ( N.T.) Dated: October 24, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DG, Audit Staff may visit Head Offices of Multi Location Units – Do they have the power?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there may be one more Audit Team visiting your Head/Corporate Office, if you are an excise assessee manufacturing similar goods at different locations. The ADG, Audit, Ahmedabad has in a Trade Notice informed that the Officers of Ahmedabad Zonal Unit of Directorate General of Audit may call for the documents/information and visit the Head/Corporate Office of the Multi Locational Units/assessees whose Head/ Corporate Office are located in the jurisdiction of Ahmedabad Zonal Unit of Directorate General of Audit. For the information of trade it is informed that the jurisdiction of this Zonal Unit extends in the States of Gujarat & Rajasthan.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please recall what was said in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7465" target="_blank">TIOL-DDT 890 - 19.06.2008</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As pointed by us earlier, the DG, Audit officers have been visiting the Corporate offices of MLUs , which was perhaps illegal.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even, now what is the authority for the DG, Audit or for that matter any Central Excise officer to visit the Head Office of an assessee? As per Rule 22 of the Central Excise Rules, the officers have access to the registered premises of an assessee. The registered premises are usually the factories and not the Head Offices. Under what authority can the Central Excise officers visit the Head Offices of the assessees without a warrant?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/tradenotice_01.htm" target="_blank">ADG , Audit Ahmedabad TRADE NOTICE 01/2008-09/ADG (AUDIT) dated September 5, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Trade Credits for Imports into India – RBI revises all-in-cost ceiling</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As the domestic importers are experiencing difficulties in raising trade credits within the existing all-in-cost ceiling in view of the tight liquidity conditions in the international credit markets, the RBI has announced the revised all-in-cost ceiling for Trade Credits which will be:</font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
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<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Maturity Period</strong></font></td>
<td colspan="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>All-in cost ceiling over 6-month LIBOR</strong></font></td>
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<td> </td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Existing </strong></font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Revised</strong></font></td>
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<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Up to one year</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">75 basis points</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">200 basispoints </font></td>
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<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More than one year up to three years</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">125 basis points</font></td>
<td> </td>
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</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The all-in-cost ceiling will be reviewed from time to time depending on the conditions in the international financial markets.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The change in the all-in-cost ceiling will come into force immediately.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 dated May 3, 2000 are being issued separately.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2008/rbi08cir027.htm" target="_blank">RBI Circular No. 27/RBI , Dated: October 27, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Strange things in the underpants of a 56 year old woman</strong></font></p>
<p align="center"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt29_980.jpg" alt="Legal Corner Icon" width="316" height="167" hspace="5" border="0" align="center"></b></strong></strong></strong></strong></strong></strong></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can you imagine as to what the things you see in the picture are? They are live banana plants recovered by Australian Customs from a 56 year old woman last week. The three banana plants were hidden in her underpants. You must have heard of ants in the pants – but bananas? The Australian Customs was really going bananas when they made this great discovery.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Quarantine officers seized the plants as they pose a significant threat to the health and productivity of Australia's banana industry.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The smuggled plants could be carrying the banana diseases, black sigatoka, fusarium wilt and moko disease.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Penalties for breaching quarantine legislation can result in fines of more than $60,000 and 10 years in jail.</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">– tomorrow's cases</font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UP Trade Tax Act</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>An order of assessment or re-assessment which was in existence at the point of time notice was issued, continues to be effective unless it is varied: Supreme Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IF </strong>it is not varied it goes without saying that it continues to be operative and effective. The period for making assessment or re-assessment is provided in sub-section (2) of Section 21. The period fixed for making assessment or re-assessment under any provision of the Act for any assessment year is two years from the end of the concerned assessment year. However, this period can be extended in terms of the proviso to sub-section (2) if the Commissioner on his own or on the basis of reasons recorded by the assessing officer is satisfied that it is just and expedient to do so to make the assessment or the re-assessment after the expiration of the period provided in sub-section (2) but in any event not after the expiration of 4 years from the end of such year notwithstanding that such assessment or re-assessment may involve a change of opinion.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Removal of capital goods, <em>whether used or not </em>, is to be done after reversal of CENVAT Credit availed: Larger Bench of Tribunal</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> expression “as such” has to be interpreted as commonly understood, which is in the “original form” and “without any addition, alteration or modification”. It does not have any connection with the goods (capital goods) being new/unused or used. In <strong>Sarkar's “Words & Phrases of Excise, Customs & Service Tax”</strong> , the expression “as such” has been defined as “in or by itself alone”. <strong>It does not distinguish between a new/unused and a used product</strong><em>.</em></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income tax – Export of rice to Cambodia through STC with the appellant acting as a supporting manufacturer to Govt of Cambodia comes under the category of ‘protocol exports' – CBDT Circular No. 562 dated 23-05-1990 is a beneficial circular covering such transaction and should be interpreted liberally to extend the benefits – ITAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is seen that the exports made by the assessee could be characterized as 'protocol exports', as it was done on the basis of some agreement or understanding with government of India, and was made at the instance of Govt. of India. The realizations have been made in Indian currency. The basic conditions stated in the circular are covered. That the government has realized some foreign currency or has not realized any would not be criteria for characterization of the transaction nor for claiming benefit of the circular. The circular, being a beneficial one, has to be interpreted liberally, to promote the objective namely to provide benefit to the exporters who have carried out protocol exports and have made realization in Indian currency.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Refund granted while reference application was pending and Tribunal's order was stayed – assessee asked to pay back the refunded amount with interest – matter remanded to Tribunal: Supreme Court</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SURPRISINGLY</strong> refund was granted by the Department even when the Reference was pending in the High Court. No appeal was filed by the Department against the grant of refund.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns tomorrow for the judgements</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more<strong> DDT</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></p>
<p align="justify"><font color="#FF6633" 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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