An ignorant assessee surrendering a disclosed income can’t be taxed; AO supposed to verify it before

IT : Where investment was already duly disclosed, surrender of same again by ignorant assessee would be meaningless, and, thus, no addition could be made

India Ports To Benefit From Lng Boom

Virtually every port in India is looking to set up liquefied natural gas (LNG) receiving terminals to cash in on the country’s efforts to reduce its dependence on traditional and costly fossil fuels and switch to the more efficient, cleaner and ecofriendly option.



It is also an indication that locally produced gas—despite the grandiose plans announced by explorers—may not be enough to meet India’s huge appetite for the fuel for use in power plants, fertilizer units, petrochemical plants, automobiles and households.

India has four LNG re-gasification terminals at Dahej and Hazira in Gujarat and Dabhol in Maharashtra and Kochi in Kerala, all on the country’s western seaboard.



LNG is natural gas cooled to minus 162 degrees celsius. At that temperature, natural gas condenses into liquid, occupying less space, making it easier to transport over long distances. LNG is loaded onto specialized ships and delivered to re-gasification terminals where it is re-heated, turned into gas and distributed to customers through pipelines.



On the western coast alone, more facilities are being planned at Mundra, Pipavav, Chhara and Nana Layja, all in Gujarat. New facilities are also proposed at Kakinada, Gangavaram, Krishnapatnam, Ennore, Dhamra, Paradip and Karaikal on the eastern coast. All of these are expected to ramp up capacity to 50 million metric tonnes per annum (mmtpa) of LNG from the existing 19.8.



India’s LNG imports are estimated to reach 150 million metric standard cu. m per day (mmscmd) by 2017 and 258 mmscmd by 2022 from the existing 63, according to the oil ministry. Ten mmtpa is equivalent to 40 mmscmd of LNG.



The potential for imported LNG has attracted firms such as Shapoorji Pallonji Group, Reliance Industries Ltd, Swan Energy Ltd, IL&FS Maritime Infrastructure Co. Ltd, Allcargo Logistics Ltd, Gangavaram Port Ltd, Krishnapatnam Port Co. Ltd, Petronet LNG Ltd, and state-run firms such as Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd, GAIL (India) Ltd and Gujarat State Petroleum Corp. Ltd to set up terminals at ports for importing LNG.



For ports, it is an opportunity to diversify the cargo mix as part of a de-risking strategy.

Many of India’s state-owned ports have seen petroleum, oil and lubricant (POL) cargo growth—once their mainstay with a share of 31% of overall cargo—stagnating even as the country’s crude oil imports grew year after year. This is because oil refiners erected so-called single-point mooring (SPM) in mid-sea where oil super tankers can come and unload the crude which is then taken to refineries through pipelines.



This is a cost-effective way of importing crude as oil super tankers—which cannot be accommodated at many Indian ports due to depth restrictions—allow economies of scale as larger quantities can be imported at a time, leading to savings in freight costs for importers.

Single-point mooring is a loading buoy anchored offshore that serves as a mooring point and interconnect for oil tankers loading or off-loading gas or liquid products. They are capable of handling any ship size, even very large crude carriers (oil supertankers).



LNG as a cargo provides stable business for ports for longer periods as it is not exposed to the policy and regulatory risks associated with other cargo such as iron ore. Since July 2011, India’s Supreme Court has imposed a ban on mining iron ore to check environmental damage arising from rampant illegal mining. Besides, there are restrictions on export of iron ore. This has drastically reduced iron-ore loadings at India’s ports.



Setting up LNG terminals is not subjected to the tortuous bidding process witnessed for cargo such as containers because the deals are finalized through negotiations between the port and the LNG importer.



It is worth noting that most of these LNG import terminals, with the exception of Ennore and Paradip, are proposed to be set up at ports outside the control of the Indian government. There are two main reasons for this. Ports that are owned by India’s states but are given to private firms for development and operations have the freedom to set rates for services provided, unlike those owned by the Indian government.



This holds true for Ennore also. It is the only port among the 13 owned by the Indian government that is run as a company, while the others are run as trusts. Ennore as such is outside the ambit of the tariff regulator for the Indian government ports that function as trusts.



Secondly, ports owned by the states have vast tracts of land to support activities surrounding the re-gasification of LNG.



Erecting an LNG terminal will cost as much as Rs.2,000 crore. Much of this money will be invested by the entity importing the fuel, with the port developers providing the basic infrastructure and taking small equity stakes in such ventures.



Understandably, ports are going all out to woo LNG importers to set up terminals that re-gasify LNG at their respective locations.

Source:- livemint.com

Estimated construction cost of a yet to be constructed flat treated as part of sales consideration

IT : Total consideration received or accrued has to be assessed to capital gain tax in year of transfer

ITAT affirms rejection of books as not furnishing adequate particulars to deduce correct operating r

IT: Where assessee had not maintained any stock register and there was no basis to verify material consumption, assessee's books of account as maintained were not amenable to yield correct operating result and therefore, same was rightly rejected under section 145(3)

Sc Mulls Appointing Panels To Look Into Goa Iron Ore Mining

31-Oct-2013

A project from the nutrition division of Saint John’s Research Institute (SJRI), Bangalore, for improving early brain development of children in low-resource countries is one among 14 projects from 10 countries selected by Grand Challenges Canada (GCC) for fund support.



The “bold new idea” from SJRI to develop an iron-fortified biscuit gets Canadian dollars 2,70,000 (Rs.1.60 crore) under the ‘Saving Brains of Developing Countries’ programme promoted by the GCC.



The GCC, funded by the government of Canada, is an organisation dedicated to supporting bold ideas with big impact on global health.



Pratibha Dwarkanath, who is the principal investigator of the SJRI project, told The Hindu that India had one of the highest rates of anaemia globally: over 79 per cent of children aged 6 to 8 months and 58 per cent of the 26 million pregnant women each year. Some 17 million of these women had access to iron pills, yet 11 million did not take them for the recommend time period. The reason being the pill was big and tasted metallic.



Anaemia, a decrease in red blood cells leading to lack of oxygen in organs, results from micronutrient deficiencies, most often iron. She said that iron deficiency anaemia dramatically affected the health of a pregnant woman and her unborn baby, increasing the risk of death and sickness during childbirth, including haemorrhage and low-birth weight. Long-term iron deficiency anaemia delayed psychomotor development and impaired cognitive development in infants, preschool, and school-aged children.



Moreover, the researchers said, the effects of anaemia were “not likely to be corrected by subsequent iron therapy... anaemic children will have impaired performance in tests of language skills, motor skills, and coordination, reportedly equivalent to a 5 to 10 point deficit in IQ.”



Part of the answer for this could lie in iron-fortified biscuits, indistinguishable in taste from popular Indian biscuits, for use by pregnant women. Dr. Dwarkanath said the new biscuit was more likely to be used by previously non-adherent pregnant women, and increase iron stores in newborns, “which translates to more sustainable and protected early brain development.”



After extensive consumer research, the nutrition team led by A.V. Kurpad and the project collaborators, New York-based Violet Health Inc., developed several prototypes specifically designed keeping in mind the tastes and preferences of pregnant women in India.



“We estimate our solution to be more cost-effective than the iron pill, while reaching more anaemic women and their children. After proof of concept, we anticipate a scaled trial in Karnataka within three years and reducing anaemia in women and infants,” Dr. Dwarkanath said.



Laureen Harper, honorary chairperson of ‘Saving Brains,’ said the programme promoted the fulfilment of human capital potential by focussing on interventions that nurtured brain development in the first 1,000 days of life. The goal of the programme was to unlock the potential of children by developing and scaling up products, services, and policies that protected and nurtured early brain development in an equitable and sustainable manner, she said.

Source:- thehindu.com

Natural Rubber Prices Hit New Low, Domestic Producers Want Ban On Import

31-Oct-2013

Rubber prices have been primarily responsible for the profit margins of tyre companies despite a sharp decline in demand from original equipment customers - namely vehicle manufacturers. Although the Indian passenger vehicle industry has been stuck in first gear with car companies offering huge discounts and even taking production cuts to clear dealer inventory, tyre companies have more or less reported good quarterly numbers riding on the back of low global prices of its main input - rubber. Rubber prices started falling from January 2012 and hit a low of Rs 160 per kg in January 2013. Since then, though, it has been on the rise and is now in the range of around Rs 190-195 per kg which is near the January 2012 price level. Of late however rubber prices have been southward bound again so much so that rubber growers are now demanding an import ban. According to tyre industry sources rubber prices are now down to Rs 159/kg which is around the same level as the January low.



According to the All India Tyre Dealers Federation (AITDF) domestic tyre prices "despite having drop in last one & half month by Rs 30 per kg to Rs 159.00 per kg remain still Rs 10 per kg higher than the international prices". Tyre dealers are therefore demanding a price cut since tyre companies have in the recent past hiked prices on account of rising cost of natural rubber. "Two years ago the domestic tyre makers brought about punishing tyre price hikes during the period when rubber price touched Rs 240 per kg to the tune of 26%-30% for all categories of tyres," said SP Singh, convenor AITDF. "At that time both rubber growers and tyre makers benefitted from indiscriminate price rise of rubber and tyres. In between, the rubber price has touched a low of Rs.160 per kg in last 12 months, which now is prevailing at Rs.159.00 per kg. No government agency has come up with any cogent cost related reason which supports the astronomical rise in the domestic rubber price to Rs 240 per kg. and arbitrary hikes in tyre prices."



Tyre companies for their part say natural rubber is only one of the inputs in tyre production. Vikram Malhotra, VP-sales & marketing, JK Tyres had earlier said, "Natural rubber is not the only raw material that is critical to tyre manufacturing. We're importing synthetic rubber and oil and forex fluctuation is beating us with the 20% slide in the rupee. We have taken a big hit in both the first and second quarter due to the forex situation."

Source:- timesofindia.indiatimes.com

Benefit of confusion due to a Circular and amendment made to Sec. 54EC goes to assessee; sec. 234B i

IT: Where due to confusion created by CBDT circular and amendment made in section 54EC, assessee was under bona fide belief of availing exemption, and did not pay capital gains tax, levy of interest for default in payment of advance tax was to be restricted

Germany Farm Gear Maker To Make India An Export Hub

31-Oct-2013

German farm equipment maker Lemken GmbH, which specialises in pre-harvesting implements such as reversible ploughs, plans to make India its export hub to cater to markets in Asia and Africa.

Lemken, which set up a manufacturing unit in Nagpur with an investment of Rs 60 crore last year, expects to start exports to south China and African countries from next year, said Anthony Van Der Ley, CEO, Lemken GmbH.

The 232-year-old German firm also plans to set up a small design team of about eight engineers in India taking advantage of the engineering skills here to customise its products for the local market.

“We are looking at India from a long-term perspective and the market here holds a major potential,” Ley said.

In its first year of operations, Lemken India sold over 350 hydraulic reversible ploughs, which cost around Rs 1.8 lakh each, almost three times higher than mechanical ploughs. Lemken’s equipment is used along with tractors.

The company is targeting to sell 1,000 ploughs next year and also plans to introduce other equipment such as disc harrow, which is used to cut, mix and mulch soil and seed drills among others.

“We use a highly specialised alloy boron steel that enhances the life of our equipment to a great extent, making it more expensive than conventional ones,” said Arvind Kumar, MD and CEO of Lemken India Agro Equipment Pvt Ltd. Currently, Lemken’s products are sold in Maharashtra, Karnataka, Andhra Pradesh and Punjab, while the company is looking at other States such as Uttar Pradesh, Haryana and Madhya Pradesh.

Kumar said the Government should look at extending subsidy, being offered to farm equipments, to technology-intensive farm implements, such as hydraulic reversible ploughs to give a push farm mechanisation.

Source:- thehindubusinessline.com

Eu Protests Against India’S Penal Import Duties

31-Oct-2013

The European Union has accused India of imposing higher penal duties on imports of certain products such as steel and rubber chemicals than what the situation may warrant to protect its domestic industry.

While claiming that its penal duties were in response to aggressive exports by some countries, India conceded that it would look into complaints made on the initiation of safeguard investigation on steel pipes and tubes.

India has initiated the highest number of safeguard investigations in 2013 and half the products being investigated are already subject to anti-dumping duties, the EU pointed out at a recent meeting of the World Trade Organisation’s (WTO) Safeguards Committee.

The WTO allows members to impose penal duties called anti-dumping duties if it can be proved that the imports are being dumped into the country at lower prices than those prevailing in domestic market of the exporting country.

A second penal duty known as safeguard duty can be imposed by a member in case there is a sharp increase in imports of a product over a period of time leading to disruption in the domestic market.

Recently, India notified four safeguard investigations – on seamless pipes, tubes and hollow profiles of iron or non-alloy steel, on sodium nitrate, on methyl acetoacetate, on phthalic anhydride, and on PX-13 (a rubber chemical).

The safeguard initiation on steel products has led to protests from a number of WTO members including the EU, Russia and the US.

The EU said that it was very concerned that in the steel case, imports had decreased and that there was no evidence of injury caused by imports on the domestic industry.

Russia shared EU’s concerns in the steel case, and pointed out that the increase in imports was caused by just one country – China. Japan also expressed concern.

India’s representative said that the concerns would be conveyed to the Government and a reply would be given.

On India’s investigation on PX-13, the EU said that the extension of the safeguard measure would not be warranted, as this product was already subject of an anti-dumping duty.

The US, too, sought clarification regarding the investigation. India said it would forward the questions to New Delhi.

Over the last few years, India has resorted to imposition of safeguard duties on cheap imports instead of anti-dumping as it is more difficult to prove that dumping has actually happened.

While most of the safeguard duties are imposed to protect Indian producers against cheap imports from China, other countries, too, get affected as these duties are applicable to all.

Source:- thehindubusinessline.com

Gold Demand In Indian Festival Season Seen Lower On Import Curbs

31-Oct-2013

Gold purchases in India, the biggest consumer, will probably be less in the festival season this year as import curbs reduce supplies and demand cools after surging in April when prices slumped into bear market.



Sales of coins and bars may decline to as little as 25 percent of purchases a year earlier, according to the All India Gems & Jewellery Trade Federation. Buying and gifting gold in the country is considered auspicious and the most favorable time is today, the festival of Dhanteras, two days before Diwali.



Gold is heading for its first annual decline in 13 years as some investors lost faith in bullion as a store of value and the U.S. Federal Reserve indicated that it will reduce monetary stimulus. The precious metal rose 70 percent from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system to boost the economy. Consumption in India, which imports almost all the bullion it uses, accounted for 20 percent of global demand in 2012, the World Gold Council says.

STORY: Stan Lee's New Superhero Fights for Truth, Justice, and the Indian Way



“Jewelers say that demand for coins and bars this season could be only 25 percent of what they saw in the festival season last year and jewelry demand will be moderate.” said Haresh Soni, chairman of the federation which represents about 300,000 jewelers, bullion dealers and brokers. “Jewelers are quite alert that if they sell coins, they will not get raw material to make jewelry,” he said on Oct. 30.

Import Curbs



Buying from October to December was 261.9 tons last year, with coins and bars making up about 40 percent of the total, according to the World Gold Council. Imports slumped after the government linked shipments to re-exports in July and increased taxes on overseas purchases. Prime Minister Manmohan Singh tightened the curbs after rising demand helped to widen the nation’s current-account deficit and pushed down the rupee.



“Demand is a little bit lesser this year as the wedding season was much longer last year,” said Mehul Choksi, chairman of Gitanjali Gems Ltd. (GITG), from Mumbai. “A lot of purchases were advanced earlier because of the price fall in April.”

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Gold for immediate delivery in London slumped 21 percent this year to $1,324.31 an ounce and reached $1,180.50 on June 28. Futures on the Multi Commodity Exchange of India Ltd. (MCX) dropped 1.2 percent to 29,793 rupees ($484) per 10 grams yesterday, 15 percent below the record 35,074 rupees on Aug. 28.



Purchases of gold and silver fell to $800 million in September from $4.6 billion a year earlier, said the Commerce Ministry. The government plans to keep imports to 800 tons in the financial year ending March 31 from 845 tons a year earlier, Economic Affairs Secretary Arvind Mayaram said Oct. 1.



Lower supply boosted premiums to a record in India, said Soni. The fees that jewelers pay to buy gold from banks and bullion dealers were $120 an ounce higher than the London cash price now compared with a discount of $60 in September, he said.

Source:- businessweek.com

Rupee At 3-Week Low; Global Dollar Gains Aid

The rupee hit a three-week low in early trade. The pair hit 61.96, highest since October 10. It is currently trading 61.83/84 versus Thursday close of 61.50/51.



The pair largely tracking global dollar gained with Dollar index up 0.17 per cent at 80.341.



The euro nursed heavy losses early in Asia on Friday, having suffered its biggest one-day drop in over six months as a shock slowdown in inflation piled pressure on the European Central Bank to further stimulate the economy.



Foreign investors bought Indian shares worth 18.75 billion rupees on Thursday, their biggest single-day purchase since May 21, provisional exchange data showed, remaining net buyers for a 20th consecutive session, bringing their total buying to nearly 181.92 billion rupees during that period.



Dealer tips 61.70-62.50 band for the session.

Source:- profit.ndtv.com

Winding up petition not maintainable as co. paid its admitted liability but disputed on quality of s

CL : Winding up petition against company would not be maintainable if company paid its admitted liability but disputed a sum as regards quality of goods supplied

SC: Voluntary disclosures don't absolve one from concealment penalty; plea as to 'buy peace' is irre

IT : Voluntary disclosure does not release assessee from mischief of penal proceedings under section 271(1)(c)

Educate firms to avoid claims rejection, says EPFO to field offices

NEW DELHI: Retirement fund body EPFO has asked its field staff to educate firms about the process of various claims like transfer of PF and pension settlement, to avoid rejection on such applications.

Employees' Provident Fund Organisation (EPFO) has asked its field staff to identify all those firms whose workers' claims rejection ratio is over 20 per cent and educate them about the process to avoid that.

"...regional and regional sub office may approach all such employers where rejection ratio of claims is high and EPFO office may educate and train the employers who in turn may guide the employees correctly at the time of filing claims," an official circular stated.

The rejections of claims delays the process of settlement and causes inconvenience to the subscribers of the EPFO and increased the organisations's work load unnecessary.

According to the circular, the employers play significant role in the process of claim settlement of beneficiary. At the time of verification of claims the employer has the opportunity to detect obvious mistakes in furnishing the relevant information by the claimants.

During 2012-13, 107.62 lakh claims were settled, out of which 88 per cent of claims were processed within the prescribed 30 days as per the body's citizen charter.

EPFO which has the subscribers base of over five crore, is expecting 1.2 crore claims in 2013-14, including around 13 lakh PF transfer claims. The body has planned to settle online around 10 lakh transfer claims this fiscal.

Earlier this month, the body has started the service of online filing of PF transfer claims on October 2.

TP method accepted by revenue in subsequent year would equally apply to relevant year if facts remai

IT/ILT : Where in subsequent year, revenue accepted CUP method as most appropriate on identical fact, same should have been applied for relevant assessment year

Omission to mention status of assessee or mentioning wrong block period doesn’t invalidate sec. 158B

IT : Block period would begin from date when assets came into possession of Assessing Officer and not from date of requisition

Concealment penalty upheld as assessee couldn’t prove genuineness of gift and creditworthiness of do

IT: Penalty under section 271(1)(c) was justified when assessee had failed to establish genuineness of gift and creditworthiness of donors

No. Sec. 69B additions if report of independent value couldn't be produced and report of DVO was fou

IT : Where valuation report of independent valuer seized during search, on which Commissioner (Appeals) placed reliance, was not on record, addition on account of unexplained investment in property could not be made on basis of DVO's valuation which was found to be unreliable both by Commissioner (Appeals) and Tribunal

FinMin allows Stock Exchange membership to LLPs; no membership if partners possess less experience

SEBI : Securities Contracts (Regulation) Second Amendment Rules, 2013 - Amendment in Rule 8

Assessee can’t raise plea of genuine hardship while seeking waiver of interest if he has sufficient

IT : Where assessee had cash balance, amounts due from debtors, amount due towards export incentives and also substantial assets, no case for genuine hardship was made out and, therefore, assessee's application seeking waiver of interest under section 220(2A) was to be rejected

Purchase of land by a Co. using public contribution tantamount to ‘Collective Investment Scheme’

SEBI: Pooling of contributions by company from members of public and utilizing same for purchase of land such that operation of lands was completely with company, amounts to running a Collective Investment Scheme

HC declined to entertain writ as impugned issue came to an end with decision on stay application by

IT : Once application for stay of recovery of tax had been decided by Commissioner (Appeals) in appeal against assessment, writ petition could not be maintained for same cause of action

Chartering aircrafts is a supply of tangible goods for use service

ST : Chartering of aircrafts, where aircrafts are provided on time charter basis and charges are levied according to use and distance travelled and not on basis of number of passengers, is, prima facie, supply of tangible goods for use service

Employees training exp. to run an extended unit of an existing business is an allowable expenditure

IT : Training expense on new manufacturing unit which was extension of existing business were allowable as revenue expenditure

HC sets aside reassessment as AO initiated it without considering reasonings given by assessee

IT : Where revenue rejected elaborate written objection filed by assessee against reasons recorded by Assessing Officer for initiating reassessment for disallowing claim of deduction under section 10B by merely saying that reasons already attributed were just and reasonable, reassessment would be unsustainable

Investors shouldn't be in a hurry to exit

It may be Diwali time, but the firecrackers will still have to wait for the average investor. With the rally skewed completely in favour of select stocks and sectors, investors haven't benefited in a big way because of the sensex rally. They would have to tread cautiously and it would be difficult to reap handsome gains.

Here are five points that investors can consider while navigating the swift changes in the market environment:

Invest in diversified funds: Diversified equity funds haven't done well in the current rally. But they present a good investing opportunity as they are yet to recover lost ground, say experts. "Investors can opt for diversified funds and value-oriented themes," says Rupesh Nagda, senior VP and head (investment advisory), Alchemy Capital Management. "There are a large number of stocks that are undervalued. When the (real) revival happens, they would offer superior returns," he says.

Don't quit equity with measly gains: For all those who are seeing profits from equity investments after nearly three years, the urge to exit would be irresistible. Advisers, however, caution that investors should not exit equity funds in a hurry after making small returns.

"When the markets turn around, the feel good (factor) comes back. But many lay individual investors exit with 5-10% returns and come back at higher levels," says Sumeet Vaid, founder and CEO, Ffreedom Financial Planners. These investors lose out when the markets make a strong recovery. But the rally offers investors with short-term goals a good window to make profits, say experts.

Keep asset allocation intact: This cardinal principle of investing holds good both in times of crises and when the markets are on a strong wicket. "Keep your broad asset allocation intact as different asset classes would do well at different points of time," says Suresh Sadagopan, founder, Ladder7 Financial Advisories. "Investors can do a tactical rejig or reallocation in their portfolio but should not dramatically change their asset allocation," he says.

'Beaten-down' doesn't mean 'value': Several sectors that have taken a beating haven't recovered in any significant manner. But beaten-down sectors and stocks don't necessarily offer value for investors, say advisers. For instance, the fundamentals for the infrastructure sector, which is one of the worst performers in the last three years, have not changed, they say. "Investors should look at companies with positive cash flows, low debt and good business model," says Nagda.

Don't get carried away: Lastly, investors should not get carried away by the current rally as it is being driven by liquidity, say experts. "It is not a broad-based rally and is not driven by fundamentals. The economy is still not in a great shape," Sadagopan says.

Exp. of earlier years allowable in current year if crystallized during that year; re-assessment quas

IT : Expenses of earlier years allowable in current year if crystallized during that year; re-assessment quashed

Sum paid to NR for canvassing business abroad isn’t taxable in India even after amendment to sec. 9(

IT/ILT : Sum paid to NR for canvassing business abroad is not taxable in India even after amendment to section 9(2) by Finance Act, 2010

Exp. incurred on marble flooring in a factory premise isn't allowable as current repairs, rules HC

IT: Expenditure for laying/fixing marble flooring of entire factory building cannot be allowed as current repairs

Asia's Iran Oil Imports Fall 11.5 Pct In Jan-Sept

Iran's top four crude buyers cut their purchases by 11.5 percent in the first nine months of the year, with oil shipments set to remain under pressure from sanctions despite tentative signs of better relations between Tehran and Washington.



Western sanctions have forced China, India, Japan and South Korea to reduce their reliance on Iranian oil, more than halving the OPEC nation's exports since early 2012 and costing it billions of dollars a month in lost revenue.



The four major Asian buyers between January and September imported 953,567 barrels per day (bpd) of Iranian crude, down 11.5 percent from the same nine months in 2012, according to government statistics and oil tanker arrival schedules.



In the month of September, they imported 1,161,304 bpd of Iranian oil, a 30.2 percent jump from a year ago.



The European Union and the United States believe Iran is developing nuclear weapons, while Iran says its programme is for power generation.



Since the beginning of 2012, U.S. and European sanctions have cut Iran's oil exports in half to about 1 million bpd.



Iran and six big powers began expert-level talks on Wednesday, building on diplomatic momentum created by a pragmatic shift in Tehran towards negotiating a peaceful solution to the dispute over Iranian nuclear ambitions.



However, despite much friendlier contacts between the sides since Hassan Rouhani took office as Iranian president with a pledge to reduce tension with the West, major differences remain to be overcome for any breakthrough deal to be reached.



Top White House administration officials have been pushing U.S. lawmakers to hold off on new sanctions over Iran's nuclear programme, but some key lawmakers said on Wednesday they had not been convinced to support a delay in putting in place new measure aimed at Tehran.

Source:- reuters.com

Rubber ‘Capital’ Goes On Hartal Seeking Ban On Imports

30-Oct-2013

A Left Democratic Front-backed rubber farmers’ hartal in Kerala’s Kottayam district, the nerve-centre of rubber production and trade in the country as well as the seat of the Rubber Board, left several businesses and offices closed and sent most of the public transport off the road on Wednesday.



The hartal, which was against the backdrop of the sharp fall in the prices of natural rubber, was to ask the Centre to wind down rubber imports and impose 20 per cent import duty as had been decided earlier this year.



The hartal, called by the farmers’ wings of the Opposition CPI (M) and its partners in the Left Front, was enforced only in Kottayam district. Most shops and businesses remained closed in the district headquarters and key towns, while in the interior areas, it partially impacted public life. While inter-district buses run by the Kerala State Road Transport Corporation were allowed to run, those operating within the district stayed off. Most government offices reported thin attendance.



Mahatma Gandhi University, which has its headquarters in Kottayam, cancelled all examinations scheduled for Wednesday.



M.T. Joseph, the front’s convenor in Kottayam district, told Business Line that the hartal was near-total. He said that rubber prices had fallen by around Rs 40 a kg within a month and over the last one year by about Rs 100. He said that the fall was due to the pro-tyre-lobby import policy of the Centre. Imports had risen to unprecedented levels, thus dipping domestic prices.



Joseph said that while the domestic prices had fallen, the tyre industry, the main consumer of rubber, had jacked up the prices of tyres.



He also said that the Centre had, in February, decided to impose 20 per cent duty on rubber imports, but was yet to enforce the increased duty rate. He wanted the Government to immediately enforce the duty.



He claimed that rubber farmers can meet up to 93 per cent of the demand of the Indian industry and hence, there was no need for imports.



The current domestic price is below Rs 160 a kg (for RSS-4), and because global prices are lower, the tyre industry prefers to import.

Source:- thehindubusinessline.com

U.S. Says Germany's Export Dependence Hurts Global Economy

The United States reprimanded Germany on Wednesday, saying its exporting prowess was hampering economic stability in Europe and also hurting the global economy.



The U.S. Treasury Department said Germany should focus more on boosting domestic growth in order to make the European economy more stable.



"Germany's anemic pace of domestic demand growth and dependence on exports have hampered rebalancing (of the euro zone economy)," the Treasury said in a congressionally mandated semi-annual report.



"The net result has been a deflationary bias for the euro area, as well as for the world economy," it said in the report.



Deflation is one of the most worrisome forces in economics and refers to persistent drops in wages and prices.



For years, the currency report has been an occasion for the U.S. government to publicly criticize China's foreign exchange practices, but this time Germany appeared to eclipse the Asian giant in terms of prominence within the report.



The Treasury noted, for example, that Germany's net exports of goods, services and capital exceeded those of China in 2012. The policy recommendations for Germany also topped the list of actions Washington feels are necessary to make the global economy more stable.



As has been customary for over a decade, the Treasury stopped short of formally labeling China as a currency manipulator. It retained its description of the yuan currency as "significantly undervalued" - a perennial complaint among U.S. politicians and companies because a weak yuan makes Chinese exports cheaper in the United States at the expense of American factories.



However, the Treasury also noted that the recent appreciation of the yuan was "good for the U.S. economy," and called on China to allow the yuan to appreciate more quickly.



The Treasury also said it was closely following Japanese economic policies to determine whether they are geared toward boosting domestic demand.

Source:- reuters.com

Volkswagen Commences Vento Exports To Mexico

30-Oct-2013

Volkswagen India Pvt. Ltd. will export the Vento sedan to Mexico, making it the single largest export market for Volkswagen India, the company said in a statement on Wednesday.



Volkswagen India began exporting cars manufactured at its Pune plant in 2011 with shipments to South Africa and entered the left-hand drive market in 2012 with exports to West Asia.



The next big step in its growth strategy is the expansion of exports of the left-hand drive Vento to the Mexican market, the company said. In a full production year, every second car from the export volumes manufactured at the Pune plant will go to Mexico, making it the single largest export market for Volkswagen India, the company said.

The production of the left-hand drive Vento for the Mexican market has begun and the first lot of cars has already been despatched. It will go on sale in November.

“The Vento was specifically designed and built for Indian customers. However, its success in a competitive market like India has opened up doors for exporting this car to various other markets,” said Mahesh Kodumudi, president and managing director at Volkswagen India.



In the absence of any new model and with increasing competition, Volkswagen’s sales in the domestic market have been under pressure. In the five months from April to August, sales declined 3% to 24,582 units, according to the Society of Indian Automobile Manufacturers. However, exports rose four-fold—albeit on a low base—to 9,528 units in the same period.

Source:- livemint.com

Wheat Export Floor Price Cut By $40/Tonne

To enable swifter movement of wheat stocks from state warehouses, the Cabinet decided on Wednesday to reduce the export floor price from $300 a tonne at present to $260 a tonne. And, to allow export till June 31, 2014, instead of March 31, 2014.



It also okayed a new Pharmaceutical Purchase Policy for central public sector units , for 103 drugs from state-run companies to be used in hospitals and through its welfare programmes at a discounted rate. The list of medicines may be reviewed and revised by the department as needed.



In wheat export tenders floated by state-owned MMTC, STC and PEC last month for export of 160,000 tonnes, global buyers had offered only $260-267 a tonne against the government's floor of $300 a tonne. This floor was approved in August by the Cabinet Committee on Economic Affairs (CCEA); it okayed export up to two million tonnes from Food Corporation of India godowns in this financial year, through STC, MMTC and PEC. As on October 1, Food Corporation of India had a wheat stock of 36 mt, against a requirement of only 21.2 mt.



The CCEA also approved a new Integrated Processing Development Scheme for the textile sector, with a total cost of Rs 500 crore in the 12th Plan. This is to address environmental issues faced by textile processing units.



Also, the cabinet decided to confer international airport status to those at Bhubaneswar and Imphal.



Post facto approval was also given to some amendments in the Food Security Bill, including extension of the deadline for implementing the law to one year from the earlier six months.

Source:- business-standard.com

Govt May Reconsider Miners’ Demand For Export Duty Cut

30-Oct-2013

The Government may reconsider domestic miners’ demand for a cut in export duty on iron ore with exports of the metal continuing to decline.



The Commerce Ministry plans to compile fresh data for iron ore exports over the last two months and revisit the matter with the Finance Ministry since the advantage of a weak rupee, which exporters enjoyed in the previous months, has been neutralised, a senior official told Business Line.



Last month, the Finance Ministry had turned down a proposal forwarded by the Commerce and Mines Ministries favouring a cut in export duty of 30 per cent on iron ore to boost shipments.



Exports of iron ore have been severely hit over the past two years due to the Supreme Court ordering probes into alleged cases of illegal mining in Karnataka and Goa.



Exports of iron ore fell from a high of 117.4 million tonnes in 2009-10 to 18 million tonnes in 2012-13.



When the Finance Ministry had considered the proposal for export duty cut some months ago, it had argued that there was no need for the move as exporters were already benefiting from a depreciating rupee, the official said.



“Since the rupee had already devalued by about 15 per cent from 58-59 to a dollar when miners’ had forwarded their request to about 68-69 to a dollar when the Finance Ministry considered it, it therefore reasoned that there was no need for a cut in export duty,” the official explained.



Depreciation in the value of the rupee against the dollar helps exporters as their realisation goes up when they convert the dollar payments received into rupees.



Moreover, the Steel Ministry had also lobbied against a reduction in import duty, claiming that it would lead to an increase in raw material prices for domestic steel producers.



However, now that the rupee has appreciated over the last couple of months and is hovering between 61 and 62 to a dollar, the Commerce Department feels that there may be a case again for reduction in export duties on iron ore.



“We are in the process of collecting export data over the last two months to make a fresh case for export duty reduction,” the official said.



India’s iron ore exports have declined 54 per cent to 6.8 million tonnes for the six months (April-September) of the current fiscal. In the corresponding period last fiscal, India exported 14.65 million tonnes.

Source:- thehindubusinessline.com

Stc To Import 6 Tonnes Of Gold To Meet Festival Demand

30-Oct-2013

State-run STC will import six tonnes of gold to boost supply of the precious metal in the domestic market during the festival season, an official said.



"There is supply crunch (in India) and demand is also higher because of the festival season. ...we have have been allocated to import 6 tonnes of gold in two tranches to meet the rising demand," a senior STC official told PTI.



The allocation order has been issued by the Directorate General of Foreign Trade (DGFT), he added.



Gold in the domestic market is being sold at a high premium as there is a supply crunch due to import curbs imposed by the government. India is the world's largest consumer of gold.



State Trading CorporationBSE 2.26 % (STC) is one of the gold import agencies in the country. It has been allowed to import the metal with a condition that it will supply 20 per cent of the shipment to exporters.



STC said said it will import gold worth Rs 15,000 crore this fiscal, the same as last year.



In order to contain current account deficit, the government has imposed several restrictions on gold imports in the past few months. In August, import duty was raised to 10 per cent from 8 per cent. It also banned import of gold bars, coins and medallions.



The country has imported 393.68 tonnes of the yellow metal during the April-September period of this year, as per official data.

Source:- economictimes.indiatimes.com

Rupee Edges Lower Tracking Broad Dollar Gains After Fed Meet

The rupee is trading at 61.43/44 versus its close of 61.2350/2450, hurt by broad gains in the dollar following the U.S. Federal Reserve's decision to keep its massive bond-buying stimulus in place.



The dollar trading at around two-week highs against a basket of six major currencies.



The BSE Sensex trading down 0.2 percent.



Traders expect the pair to hold in a 60.90 to 61.80 range until the end of next week.



Budget deficit data for April-September due at 1600 IST will be watched closely by dealers.

Source:- reuters.com

No abuse of dominance on failure to deliver possession of residential unit in time

Competition Act: In absence of dominance of opposite party (OP) in relevant market, its failure to deliver possession of residential unit within specified time would not amount to abuse of dominance by OP

RBI cuts penal interest rates on shortfall in reserve requirements

BANKING : Revised Bank Rate

RBI asks commercial banks to carry out due diligence even if they offer ‘at par’ facility to co-oper

BANKING : Due Diligence in Correspondent Banking Relationship

Salary paid to seconded employees doesn’t ‘make available’ any technology; No FTS arises under India

IT/ILT: Expatriation of employees under seconded agreement without transfer of technology would not fall under term make available as per article 13(4)(c) of Indo-UK DTAA, and therefore, payment made by assessee towards salary expenditure of employees deputed to assessee under seconded agreement could not be considered as fees for technical services

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/INQ-63/2013 dated 30.09.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Apollo Tyres Ltd., 7 Institutional Area, Sector 32, Gurgaon-122001 to the Commissioner of Customs, Ahmedabad for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/87/2013-Cus-IV

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad-380007.


2. The Commissioner of Customs, Custom House, Ahmedabad, Near all India Radio, Income Tax Circle, Navrangpura, Ahmedabad-380009


3. The Commissioner of Customs, Cochin Sea Port, Custom House, Willingdon Island, Cochin-682009.


4. The Commissioner of Customs(Export), Chennai Sea Port, Custom House, 60, Rajajisalai, Chennai-600001.


5. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/INQ-64/2013 dated 23.09.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Balkrishna Indistries Ltd., “BKT House”, C/15, Trade World, Kamla Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai-400012 to the Commissioner of Customs, (Export), Jawaharlal Nehru Custom House, Nhava Sheva, Raigad for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/86/2013-Cus-IV

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad-380007.


2. The Commissioner of Customs, Custom House Kandla, New Customs Building, Nr. Balaji Temple, Kandl, Kutch, Gujarat-370210.


3. The Commissioner of Customs, (Export), Jawaharlal Nehru Custom House, Nhava Sheva, Raigad.


4. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/MZU/ GRU/INV/04/2012 dated 03.09.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Mumbai. Zonal Unit, Mumbai in the case of M/s BGH Exim Ltd., 213, 2nd Floor, T.V. Ind. Estate,52, S.K. Ahire Marg, Worli, Mumbai-400030 to the Commissioner of Customs , Central Excise & Service Tax, Plot No.6, ICE House, EDC Complex, Patto Panaji-403001 for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/85/2013-Cus-IV

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Mumbai Zonal Unit, UTI Building, 13, Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020.


2. The Commissioner of Customs , Central Excise & Service Tax, Plot No.6, ICE House, EDC Complex, Patto Panaji-403001.


3. The Additional Commissioner of Customs, Custom House, Near Balaj Temple, Kandla-370210.


4. The Additional/Joint Commissioner of Customs, Central Excise & Service Tax, C.R. Building Kannavari Thota, Guntur -520004.


5. The Commissioner of Customs, Custom House, Port Area Vasakhpatnam-530035


6. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/INQ-66/2013 dated 29.08.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Indian Farmers Fertilizer Cooperative Ltd., IFFCO Sadan, C-1, Distt. Centre, Saket Place, New Delhi-110017 to the Commissioner of Customs, Kandla for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/83/2013-Cus-IV

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.


2. The Commissioner of Customs, Custom House Kandla, New Customs Building, Nr. Balaji Temple, Kandla, Kutch, Gujarat-370210.


3. The Commissioner of Customs, New Custom House, Panambur, Mangalore-575010.


4. The Commissioner of Customs (Preventive), Jamnagar, “Sarda House”, Bedi Bandar Road, Opp. Panchvati, Jamanagar-361002.


5. The Commissioner of Customs, Visakhapatnam, Custom House, Port Area, Visakhapatnam, Andhra Pradesh-530035.


6. The Commissioner of Central Excise & Customs, Visakhapatnam-II, Central Excise Building, Port Area, Visakhapatnam, Andhra Pradesh-530035.


7. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F. No. 23/61/2011-DZU/2245 to 2251 dated 03.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, New Delhi in the case of M/s Indian Oil Corporation Ltd., Panipat Refinery, Post Office-Panipat Refinery, Panipat, Haryana-132140 and M/s Samsung Engineering Co. Ltd., Korea at Lot No.7, Advant Navis Business Park, Level 12-15, Tower A, Sector 142, Expressway Noida,UP-201305 to the Commissioner of Customs, New Custom House, Ballard, Estate, Mumbai for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/52/2013-Cus-IV

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, B-3 & B-4, 6th Floor Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi-110003.


2. The Commissioner of Customs,(Port), Nhava Sheva, Mumbai;-400707.


3. The Commissioner of Customs (I&G), New Custom House, IGI Airport, New Delhi–110037.


4. The Commissioner of Customs, New Custom House, Ballard Estate, Mumbai.-400038.


5. The Commissioner of Customs, Air Cargo Complex, Sahar, Mumbai-400099.


6. Webmaster.cbec@icegate.gov.in

DGFT Public Notice No.34/(RE 2013)/2009-14 dated 29-10-2013

35

Novatech Inspection Services LLC Head Office, UAE Post Box: 96149, Damascus Street, Dubai, UAE Tel:+971-52 8630284 E Mail: novatech.uae@gmail.com Branch Office, Saudi Arabia Al Nuzaha District Sixteen, Near Mall of Arabia, Box: 21462, Jeddah, Saudi Arabia Tel:+966 552357963 Branch Office, Bahrain Road No. 3911, Riffa, Block 939, P.O. Box:24239, Bahrain. Tel: +973 33917677 Branch Office, Qatar Sanaiyya, Gate No.84, Street No.39, Industrial Area, Doha, Qatar. Tel: +974 55157552 Branch Office, Kuwait Saud Al –Shallahi Complex Jleeb Shoukyh, Kuwait. Tel: +965 69938000 Branch Office, Oman Near Al Harthy Complex Mabaila Industrial Area, Muscat, Oman. Tel: +968 99829570 Branch Office, Jordan 14 Sufian Bn Oyayna Street, AQABA, Jordan. Tel: +962 785565208 Branch Office,Yemen Al Mowsalaat Street, Opp Teleyemen, Sana’a, Yemen. Tel: +967 711712008 Branch Office, USA 4800 Sugar Grove Blvd, Ste 475 Stafford, TX 77477, USA. Tel: +1-281-4944940 Branch Office, Mexico 1876, Pinal, Ciudad Juarez, Chihuahua, Mexico, Pin code: 31-3384578. Tel: +52-656-6837296 Branch Office, Canada 926, Fluteway, Mississauga, Ontario, Canada, Pin code-L4T 0A1. Tel: +190-56-709839 Branch Office, Japan SS3-6-5 Matsuzaki-cho, Abeno-ku, Osaka, Japan, Pin code – 5340013. Tel: +81-6-6624-2388 Branch Office, Kenya Pegant Godowns, No.2,3,4,5,6, Airport North Rd., Nairobi, Kenya. Tel: +254-733-393200 Branch Office, Tanzania Plot No.111, Upanga, Dar-es-Salaam, Tanzania. Tel: +255-713 703609 Branch Office, Uganda Plot 3, Berkeley Road, Old Kampala, Kampala, Uganda. Tel: +256-772 873694

UAE Saudi Arabia Bahrain Qatar Kuwait Oman Jordan Yemen USA Mexico Canada Japan Kenya Tanzania Uganda

37

Trans Border Safety Control Inspection Services LLC Head Office 20C, Trolley Square, Wilmington, Delaware, 19806 U.S.A. Tel: +1-6462334839 E Mail: info@transborderinspection.com Branch Office, South Africa Transnet Yard, Kennis Street, Elandsfontein, 1406 Gauteng, Johannesburg, South Africa Tel:+27-797632759 E Mail: girish@transborderinspection.com Branch Office, UAE (Dubai) 2305 Grosvenor House, Sheikh Zayed Road, Dubai, UAE Tel: +971-503591955 E Mail: rajendra@transborderinspection.com Branch Office, West Africa BP.3901, Nouakchott, Mauritania Tel: +222-52448725 E Mail: naresh@transborderinspection.com Branch Office, European Union SpaldingstraBe 160 – Hamburg, Germany Tel: +49-46903265 E Mail: debbie@transborderinspection.com

USA South Africa UAE (Dubai) West Africa European Union

Order dated 29-10-2013

Government of India Ministry of Finance (Department of Revenue) Central Board Excise & Customs ***** ORDER New Delhi, dated the 29th October, 2013 In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notices mentioned in column (2), issued by the authorities mentioned in column (3) in the case of parties mentioned in column (4) of the Table below, to the Commissioner of Customs, New Delhi for the purpose of adjudication. Sl.No. Show Cause Notice No. and dated Issuing Authorities Parties (1) (2) (3) (4) 1. S/IV/32/2011 ACC, Chennai dated 12.04.2013 Additional Director, Directorate of Revenue Intelligence, Bangalore M/s Sony India Private Limited 2. S/IV/32/2011 ACC, Kolkata dated 12.04.2013 Additional Director, Directorate of Revenue Intelligence, Bangalore -do- 3. S/IV/32/2011 ACC, Mumbai dated 12.04.2011 Additional Director, Directorate of Revenue Intelligence, Bangalore -do- 4. S/IV/32/2011 Chennai Sea dated 15.04.2013 Additional Director General, Directorate of Revenue Intelligence, Bangalore -do- 5. S/IV/32/2011 SONY/NDLS dated 15.04.2013 Additional Director General, Directorate of Revenue Intelligence, Bangalore -do- 6. S/IV/32/2011 Nhava Sheva dated 12.04.2013 Additional Director, Directorate of Revenue Intelligence, Bangalore -do- 7. S/IV/32/2011 Dadri dated 12.04.2013 Additional Director, Directorate of Revenue Intelligence, Bangalore -do 8. S/IV/32/2011 ACC, B’lore dated 15.04.2013 Deputy Director, Directorate of Revenue Intelligence, Bangalore -do- 9. S/IV/32/2011 / Kochi dated 15.04.2013 Deputy Director, Directorate of Revenue Intelligence, Bangalore -do- 10 S/IV/32/2011 / Kolkata Sea dated 15.04.2013 Deputy Director, Directorate of Revenue Intelligence, Bangalore -do- (M.V. Vasudevan) Under Secretary to the Government of India F.No.437/41/2013-Cus-IV Copy to:- The Additional Director General, Directorate of Revenue Intelligence, Bangalore. The Commissioner of Customs, Port-Import, Chennai. The Commissioner of Customs (Import & General), New Delhi. The Joint/AddI Commissioner of Customs (Import), Nhava Sheva. The Joint/AddI Commissioner of Customs, ACC, Group 5, Mumbai. The Joint/AddI Commissioner of Customs, ACC, Kolkata. The Asst/Deputy Commissioner of Customs, Port-Import, Kolkata. The Asst/Deputy Commissioner of Customs, Cochin. The Joint/AddI Commissioner of Customs, ICD Dadari, Noida. The Asst/Deputy Commissioner of Customs, ACC, Bangalore. The Joint/AddI Commissioner of Customs, Airport & Air Cargo, Chennai.. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.718(ii)10/Seiz/PRU/2013-14/379-382 dated 23.05..2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Lucknow in the case of M/s ABB Limited, Khanija Bhawan, 2^nd floor, East Wing, 49, Race Course Road, Bangalore-560001 to the Commissioner of Customs, C.R. Buillding, Queens Road, Bangalore-560001 for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/62/2013-Cus-IV

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Lucknow Zonal Unit, 2/31, Vishal Khand, Gomti Nagar, Lucknow-226010.


2. The Commissioner of Customs, C.R. Building, Queen Road, Bangalore-560001.


3. The Additional/Joint Commissioner of Customs, ICD CONCOR, Kanakpura, Jaipur at New Central Revenue Building, Statue Circle, ‘C’ Scheme, Jaipir-302005.


4. The Deputy/Assistant Commissioner of Customs at O/o of Commissioner of Customs (Port-Import), Jawaharlal Nehru Custom House, Nhava Sheva, Talulka-Uran, Dist- Raigad, Maharashtra-400707.


5. Webmaster.cbec@icegate.gov.in

Declaration as to inputs used for export of services is a procedural compliance; delay thereof can b

ST: As regards rebate claim on input/input services used for export of services, requirement of filing of declaration under Notification No. 12/2005-ST is of procedural nature and delay, if any, can be condoned.

Lower profits display entity’s performance and not quality of its books; rejection of books on this

IT: Profit being low could not be a ground for rejection of books of account

Stay granted by Supreme Court against a Sec. 133 notice applies to notice issued subsequently to ano

IT: Order of Apex Court staying notices issued under section 133 to various societies in similar matters would be applicable to notice in case of assessee-society

Concealment penalty can be levied even if assessed income is a loss, rules HC

IT: Penalty under section 271(1)(c) can be imposed even in a case where assessed income is a loss

Converting a leasehold property into freehold improves title of asset; holding period reckoned from

IT: Conversion of rights of lessee in property from leasehold right into freehold only results in improvement of his/her rights over property and it would not have any effect on taxability of gain from such property, which is related to period over which property is held

M/s Natural Bio Organic Product B/2, Golden Plaza, Ankur Char Rasta, A.K. Road, Surat. Vs. Income Tax Officer (OSD), Range 9, Surat

1 ITA No 2399/Ahd/2009 . A.Y. 2006-07 IN THE INCOME TAX APPELLATE TRIBUNAL " B " BENCH, AHMEDABAD (BEFORE SHRI G.C.GUPTA VICE PRESIDENT & SHRI ANIL CHATURVEDI, A.M.) I.T. A. No. 2399/AHD/2009 (Assessment Year:2006-07) M/s Natural Bio Organic Product Vs. Income Tax Officer (OSD), B/2, Golden Plaza, Ankur Char Range 9, Surat Rasta, A.K. Road, Surat. (Appellant) (Respondent) PAN: AAFFN5752M Appellant by : Shri M.J. Shah Respondent by : Shri P.L. Kureel, Sr. D.R. ( )/ORDER Date of hearing : 08-10-2013 Date of Pronouncement : 18 -10-2013 PER SHRI ANIL CHATURVEDI,A.M. 1. This appeal is filed by the Assessee against the order of CIT(A)-V, Surat dated 29.05.2009 for A.Y. 2006-07. 2. The facts as culled out from the order of lower authorities are as under. 3. Assessee is a firm engaged in the business of manufacturing and sale of Bio Organic Fertilizer. It filed its return of income for A.Y. 06-07 on 04.10.2006 declaring total income of Nil after claiming deduction of Rs. 2 ITA No 2399/Ahd/2009 . A.Y. 2006-07 28,42,041/- under Section 80JJA of the Act. The case was selected for scrutiny and thereafter the assessment was framed u/s. 143(3) vide order dated 31.12.2008 and the total income was assessed at Rs. 61,76,377/-. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A). CIT(A) vide order dated 29.09.2009 dismissed the appeal of the Assessee. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us and has raised the following grounds:- 1.1 The CIT(A) erred in upholding the addition of Rs. 33,34,336/- on account of unexplained cash credit under section 68 of the I.T. Act, 1961. 1.2 The CIT(A) ought to have appreciated the overall facts and circumstances of the case and should have deleted the addition of Rs. 33,34,336/- made on account of unexplained cash credit under section 68 of the I.T. Act, 1961. 2.1 The CIT(A) further erred in not appreciating the facts and legal submissions and in the process erred in confirming the addition of Rs. 28,42,041/- on the pretext of rejection of deduction claimed under section 80JJA of the I.T. Act, 1961. Ground no. 1.1 and 1.2 are in connection with addition made u/s. 68 and interconnected and both the grounds are considered together. 4. During the course of assessment proceedings, A.O. noticed that Assessee has shown receipt of unsecured loan of Rs. 33,34,336/- which was claimed to have received from OM Textiles and Elegant Diamond Company. To verify the genuineness of transaction and the creditworthiness of the persons, notice under section 133(6) was issued to the parties and they were also asked to confirm the transaction by producing the copy of contra account, bank statement, return of income, proof of identity etc. 3 ITA No 2399/Ahd/2009 . A.Y. 2006-07 5. In the case of OM Textiles, A.O. noticed that the bank account furnished pertained to period 1.04.2006 to 23.05.2006 and the same was not covered under the period of scrutiny. He also observed that in the statement that there were some entries of cash amounting to Rs. one lac but as the bank account for the period was not provided of the persons who had advanced the money to the Assessee, A.O. was of the view that the genuineness of the transaction and creditworthiness of the person advancing the fund left unproved. With respect to Elegant Diamond Company, A.O. noted that the information called from Elegant Diamond Company was not received from Elegant Diamond Company till the date of finalization of assessment order but however the Assessee had submitted the copy of confirmation statement, acknowledgement of return of income, copy of bank account which it had claimed to have been received directly from Elegant Diamond Company. The submission of the Assessee was not found acceptable by the A.O. for the reason that (i) none of the documents were original and were merely photo copies bearing no date of issue/preparation. (ii) The signature on the copy of confirmation of account and on the copy of acknowledgement of return of income of Shri Rikhab Chand Jain did not tally. (iii) The acknowledgement of the return of income did not establish any relation between Shri Rikhab Chand Jain and Elegant Diamond Company, in whose name the notices were issued. (iv) The return of income of Elegant Diamond Company was filed at Gandhidham despite the fact that the address given by the Assessee was of Mumbai. (v) The income shown in the return of income was only Rs. 1,30,028/- which according to A.O. creates a doubt about the capacity to loan Rs. 30 lacs. (vi) The bank statement of Elegant Diamond Company did not carry the name and the 4 ITA No 2399/Ahd/2009 . A.Y. 2006-07 branch of the bank in which the account was maintained. In view of these facts, the A.O. considered that the Assessee has failed to prove the genuineness of transaction. He accordingly considered the amount received from both the parties as unexplained cash credit under section 68 and made an addition of Rs. 33,34,336/-. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A), CIT(A) upheld the order of A.O. by holding as under:- "I have gone through the assessment order and also through the submissions made and judgments relied upon by the appellant. The appellant's main contention is that when the payments are routed through banks the genuineness of transaction is proved. In this regard the appellant enclosed the bank statement of M/s Elegant Diamond Co. along with the copy of the acknowledgement of the return filed by the said party. The bank statement so attached does not bear the name and address of the person to whom that bank account belong. Further the confirmation filed by the appellant of the said party bears the signature which differs from the signature of the said party on the return filed by him. The appellant did not file any supporting document like affidavit from the said party affirming that the signature on the confirmation and on the return of income are of the same person. Merely the transactions are routed from bank is not sufficient compliance. The circumstantial evidence too play very important role. Here the documents attached in support of appellant's claim are against his claim, therefore, I hold that the addition made by the AO as unexplained cash credits is correct. As regard loan received from M/s Om Textiles the appellant has filed confirmation and acknowledgement of return and the bank statement of year not relevant to the year under consideration. In this regard, I disagree with the appellant's contention that there is no scope for doubting the same just because subject depositor has by mistake provided the bank statement for subsequent period. The appellant in his support did not produce the bank statement of the period under consideration even before me. Without verifying the entries in appellant's bank account with that of the depositor I am not is position to accept the appellant's submissions. Therefore, addition as unexplained cash credit from M/s OM Textile made by the AO stands confirmed. Therefore, the appeal of the appellant against the addition of Rs.33,34,336/- of unsecured loans treated as unexplained cash credits u/s 68 of the Act is rejected." 6. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us. Before us, with respect to Elegant Diamond Company it was submitted that it was a proprietory concern of Shri Jain. Assessee placed on paper book, the copy of confirmation from Elegant Diamond 5 ITA No 2399/Ahd/2009 . A.Y. 2006-07 Company which contained in PAN number and Address. He also placed at page 73 of the paper book, the confirmation of balance as on 31.03.2006 and pointed to the fact that it contains the telephone number of Elegant Diamond Company and further submitted that the Assessee has also deducted TDS. He also placed on record, the copy of return of income of Shri Jain for A.Y. 06-07 at page 74of the paper book and the copy of his bank account showing the payment of Rs. 30 lacs by cheque. With respect to OM Textile, he placed on record the copy of the ledger account at page 79 of the paper book. He also placed on record at page 80, the copy of return of income of Shri Jaysukhbhai Lathia. He therefore submitted that the Assessee has discharged the initial onus cast upon the Assessee and therefore no addition was called for. The ld. D.R. on the other hand submitted the Assessee has not proved the genuineness of the transaction and he pointed to the finding of CIT(A) and thus supported the order of A.O. and CIT(A). 7. We have heard the rival submissions and perused the material on record. It is an undisputed fact that Assessee has received loan from two parties namely Elegant Diamond Company and OM Textile. With respect to Elegant Diamond Company, Assessee has placed on record the copy of confirmation of accounts which contains the Telephone number of the creditor. The ld. A.R. has also placed on record the copy of return of income and the bank book of Elegant Diamond. We also find that during the course of assessment proceedings, the Assessee has furnished these materials but no enquiry was made by the A.O. He has simply rejected the submissions of the Assessee for the reasons listed in his order. We are of the view that in the present case, with respect to Elegant Diamond 6 ITA No 2399/Ahd/2009 . A.Y. 2006-07 Company, the Assessee has duly discharged the initial onus cast upon it and thus no addition is required on that count. 8. With respect to OM Textile, we find that Assessee has filed copy of the return of income and has also filed the copy of his pass book. However, no copy of the confirmation has been filed before us. Considering the totality of the facts, we are of the view that in the interest of justice and fair play one more opportunity be granted to the Assessee to substantiate its stand before the A.O. We therefore remit the matter with respect to OM Textiles to the file of A.O. and direct him to verify the submissions made by the Assessee and thereafter decide the issue in accordance with law and after giving a reasonable opportunity of hearing to the Assessee. Thus this ground of Assessee is partly allowed. Ground no. 2 is with respect to rejection of claim of deduction of Rs. 28,42,041/- under Section 80JJA. 9. A.O. noticed that Assessee had claimed deduction of Rs. 28,42,041 under 80JJA. The Assessee was asked to submit documentary evidence to confirm that it has fulfilled the condition laid down in the section for claiming the deduction. A.O. also noticed that most of the bills/ invoices for sale of Vermin Compost was issued in the name of Shri Narsibhai Savalia. A.O. issued letter u/s. 133(6) to the party for confirmation of transaction but the letter was returned unserved. Thereafter A.O. issued commission under Section 131(1)(d) to ITO, Amreli assigning inquiry for confirmation of transaction with Shri Narsibhai Savalia. A.O. noted that ITO, Amreli vide letter dated 22.12.2008 has reported that Shri Narsibhai 7 ITA No 2399/Ahd/2009 . A.Y. 2006-07 Savalia had in his statement which was recorded on oath had shown his ignorance about any transaction with the Assessee firm. The Assessee was thereafter asked to explain the mismatch in the information, but no satisfactory explanation was given by the Assessee. Thus in the absence of satisfactory explanation, Assessee disallowed the claim of deduction under 80JJA. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A). CIT(A) after considering the submissions of the Assessee upheld the order of A.O. by holding as under:- "I have gone through the assessment order and also through the submissions made and judgments relied upon by the appellant. Except from the argument of the appellant that the general project information consists of the date of commencement of business as 2005 I disagree with all the other arguments of the appellant. But merely the date of commencement of business in the said report does not prove that the business was actually commenced in the year 2005. From the documents submitted before me it could be seen that the appellant's claim that statement given by Shri Narsibhai is not correct, is absolutely not acceptable. The signatures on the statement recorded and that on the delivery challans produced by the appellant do not match. Further the test reports of M/s Pollucon Laboratories Pvt. Ltd submitted by the appellant appears to be fabricated as there is printing as well as signature difference in all the four test reports. The condition for claiming deduction under section 80JJA is, "a deduction of an amount equal to the whole of such profits and gain for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which such business commences". In the appellant's case from the documents submitted before me it is not proved that the business has actually been commenced during the year under consideration. Therefore, I do not find any reason to interfere with the decision of the AO and hence confirm the addition of Rs. 28,42,041/- made by the AO by disallowing the deduction u/s. 80JJA. 10. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us. Before us, at the outset, the ld. A.R. submitted that the statement of Shri Narsibhai Savalia was recorded at the back of the Assessee and the Assessee was not granted any opportunity to cross-examine him. He further submitted that the Assessee be granted an opportunity to cross- examine. Shri Narsibhai Savalia and therefore the matter may be remitted 8 ITA No 2399/Ahd/2009 . A.Y. 2006-07 to the file of A.O. with necessary directions. The ld. D.R. on the other hand supported the order of A.O. 11. We have heard the rival submissions and perused the material on record. We find commission under Section 131(1)(d) of the Act was issued to ITO, Amreli who was assigned to make enquiry with Shri Narsibhai Savalia about the transaction of alleged sale by with the Assessee. A.O. in his order has noted that ITO, Amreli vide order dated 22.12.2008 has reported about ignorance of any transaction by Shri Narsibhai Savalia with the Assessee firm. The A.O. has relied on the aforesaid statement to deny deduction. A.O. has also noted that the majority of sales by the Assessee was to Shri Narsibhai Savalia. We further find that Assessee was not granted an opportunity to cross-examine Shri Narsibhai Savalia. 12. In the case of CIT vs. Eastern Commercial Enterprises (1994) 210 ITR 103 (Cal) Hon. Calcutta High Court has held as under:- "As a matter of fact, the right to cross examine a witness adverse to the Assessee is an indespensible right and the opportunity of such cross examination is one of the corner stones of natural justice. It has further held that it is trite law that cross examination is the sine qua non of due process of taking evidence and no adverse inference can be drawn against a party unless the party is put on notice of the case made out against him. He must be supplied the contacts of all such evidence, both oral and documentary, so that he can prepare to meet the case against him. This necessarily also postulates that he should cross examine the witness hostile to him." 13. In view of the aforesaid facts, and to meet the ends of justice, we are of the view that the Assessee be granted an opportunity to cross-examine Shri Narsibhai Savalia. We therefore remit the matter to the file of A.O. and direct him to allow the opportunity to cross-examine of Shri Narsibhai Savalia to the Assessee and after considering the submissions 9 ITA No 2399/Ahd/2009 . A.Y. 2006-07 of Assessee decide the issue in accordance with law and after giving reasonable opportunity of hearing to the Assessee. Thus this ground of Assessee is allowed for statistical purposes. 14. In the result, the appeal of the Assessee is partly allowed for statistical purposes. Order pronounced in Open Court on 18 -10 - 2013. Sd/- Sd/- (G.C.GUPTA) (ANIL CHATURVEDI) VICE PRESIDENT ACCOUNTANT MEMBER Ahmedabad. TRUE COPY Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) ­ 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER Deputy/Asstt.Registrar ITAT,Ahmedabad

M/s Sanraj Engineering P. Ltd. A-4/B-1, Mohan Co-op Industrial Estate Mathura Raod, New Delhi. Vs. ITO Ward-7(3) New Delhi.

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Coal Blocks Auction May Be Delayed Further To March

29-Oct-2013

The auction of coal blocks to private firms may get further delayed to March next year as the Coal Ministry has sought from consultancy firm CMPDIL a report on reserves of four more mines.



Coal Minister Sriprakash Jaiswal had earlier said that auction of mines would begin in December.



"The auction of mines is likely by March next year," an official source said.



The Coal Ministry has asked CMPDIL, the mine planning and consultancy company of Coal IndiaBSE 0.94 %, to assess the reserves of four more mines and submit its report by next year, the official added.



The government which was initially planning to auction six mines in the first tranche is targeting to auction 10 blocks now, the official said.



The Cabinet had earlier approved the methodology for auctioning coal blocks, providing for upfront and production -linked payments and benchmarking of coal sale prices.



Coal blocks will be put up for auction after environment ministry reviews them and bidders have to agree to a minimum work programme, an official statement had said recently.



The policy provides for production-linked payment on a rupee per tonne basis, plus a basic upfront payment of 10 per cent of the intrinsic value of the coal block.



The government had earlier said that exploration activities in identified blocks are at an advanced stage and are likely to be completed soon.



The government had earlier allocated 14 coal mines to central and state public sector units, including four to NTPCBSE 0.38 %, in July.



It had earlier planned to auction 54 coal blocks with total estimated reserves of about 18 billion tonnes.

Source:- economictimes.indiatimes.com

Dollar At One-Week High As Markets Priced For Fed To Hold Policy

The dollar touched a one-week high against a basket of major currencies on Wednesday as investors further trimmed bearish positions ahead of the outcome of the Federal Reserve policy meeting.



Investors had sold the greenback heavily in the run up to the Oct 29-30 meeting on growing expectations the U.S. central bank will maintain its massive bond-buying stimulus program through to early next year.



The dollar index inched up 0.1 percent to 79.648.DXY, having touched a high of 79.692 earlier on Wednesday, its highest level since October 22. Just last Friday, the dollar index had plumbed a nine-month low at 78.998.



"Fed meetings have not been friendly to the USD this year, with the dollar weakening following every meeting in 2013 with the exception of June," analysts at BNP Paribas wrote in a client note.



"However, with markets already having adjusted to a much more dovish view on the Fed outlook heading into today's meeting, we think the USD is likely to hold up better this time."



The euro held steady at $1.3741, having backed off from a 23-month peak of $1.3833 set just a few days ago.



Traders said the currency's repeated failure to cleanly break above $1.3800 had made it vulnerable to a correction. Since September, the common currency has gained roughly 7 U.S. cents.



Against the yen, the dollar held steady at 98.17 yen, clinging close to a one-week high around 98.28 yen set on Tuesday.



"It's basically some short covering of the dollar, which had been sold earlier," said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.



Market players will probably hold off from aggressive dollar buying, given the uncertainty about the U.S. economy's outlook in the wake of this month's 16-day partial government shutdown, Okagawa said.



The lack of clarity may also help limit dollar selling versus the yen in the next few months, he said.



"Even if you get one or two strong figures, or weak numbers... I think it will be hard to tilt positions too heavily," Okagawa said.



Economic indicators due later on Wednesday include a reading on U.S. private sector employment in October from payrolls processor ADP, which comes ahead of the closely watched nonfarm payrolls data for October due on November 8.



A majority of U.S. primary dealers polled by Reuters last week said the Federal Reserve would not start cutting its monthly bond purchases until March of next year and said the recent government shutdown and standoff over raising the U.S. debt ceiling had significantly impacted on the Fed's timing.



The Australian dollar touched a 2-1/2 week low after having fallen the previous day following the Reserve Bank of Australia's latest attempt at talking down the currency.



The Aussie held steady at $0.9477. It fell to $0.9459 earlier on Wednesday, its lowest level since October 14.

Source:- reuters.com