Assessee directed to file fresh application for stay as earlier request was decided without hearing

IT: Where Commissioner (Appeals), on stay application filed by assessee, passed order without hearing assessee, assessee was directed to file fresh application before Commissioner (Appeals), who would consider same and pass appropriate order

Madras HC declined to entertain writ against sec. 264 order as assessee had an alternate remedy of f

IT: Writ against sec. 264 order need not be entertained in view of alternative remedy of filing appeal

CBDT authorised 13 entities to issue tax-free bonds of 48,000 crores; interest rate linked to G-sec

IT : Section 10(15), Item (h) of Sub-Clause (iv) of The Income-Tax Act, 1961 - Exemptions - Interest on Bonds/Debentures - Specified Companies Authorized to Issue Tax-Free, Secured, Redeemable, Non-Convertible Bonds During F.Y. 2013-14 Subject to Specified Conditions

Recipient not liable to pay ST under reverse charge if it was already discharged by provider

ST: Recipient cannot be asked to pay service tax under reverse charge, if service tax discharged by service provider

Advances treated as unexplained can't be reshaped as deposits to levy penalty for violation of sec.

IT : Once booking advance received by constructor had been assessed as undisclosed income under section 68, same could not be considered as deposit for levy of penalty under sections 271D and 271E

Private schools seek withdrawal of service tax

Tamil Nadu Nursery, Primary, Matriculation and Higher Secondary Schools Welfare Association has appealed to Union Finance Minister P. Chidambaram to take steps for ensuring the withdrawal of service tax imposed on private schools.

The Commissioner of Central Excise had recently issued a circular to such schools asking them to register all auxiliary educational services and pay service tax on the fee collected for these services.

Schools will have to pay service tax for food, transportation, extra-curricular activities, excursions and field trips.

Association general secretary G. Krishnaraj told journalists here on Saturday that the 12 per cent service tax imposed by the Centre would place a huge burden on small and medium schools.

These schools were already facing financial constraints owing to the “low fee levels” fixed by the School Fee Determination Committee headed by retired High Court Judge S.R. Singaravelu.

He also made a plea to Chief Minister Jayalalithaa to remove some of the State taxes on private schools and restore the concessions that were scrapped in recent years.

The association passed a resolution calling upon private schools to join it in a State-wide protest on August 26 to press their demands.

Further, they also requested the committee formed by the Department of School Education to look into land requirements for private schools to consider fixing the norms based on the numbers of students at the schools.

Schools must be given time till the next academic year to implement the committee’s recommendations, the association said.

India to reserve 30 percent of tax free bonds for sovereign funds

India will allow sovereign wealth funds to invest up to 30 percent in the tax free bonds to be sold by state-run infrastructure companies, Finance Minister P Chidambaram said on Monday.

The government has allowed state-run companies to sell about 500 billion rupees worth of tax-free bonds in the current fiscal year 2013/14.

(Reporting by Rajesh Kumar Singh; Editing by Anand Basu)

Rupee Weakens 0.7% Against Dollar

12-Aug-2013

Mumbai: The rupee gave up all its early gains to end weaker against the dollar on Monday as banks covered their positions on the US currency, disappointed by the lack of details in the finance minister’s speech to Parliament on Monday.

The rupee ended at 61.28 per dollar, down 0.68% from the previous close of 60.86. It had earlier opened at 60.51 per dollar and touched a high of 60.49 and a low of 61.30.

Finance minister P. Chidambaram told Parliament that India would seek to reduce imports of gold, silver and “non-essential” imports, while also curbing demand for oil.

The finance minister also proposed to raise funds abroad, allowing public sector financial firms to sell debt to finance long-term infrastructure projects, raising money via deposits targeted at Indians living overseas, and liberalising guidelines for external commercial borrowings.

Chidambaram also vowed to contain the current account deficit at $70 billion for the fiscal year ending in March, or an estimated 3.7% of the gross domestic product (GDP), down from a record 4.8% in the previous fiscal year.

However, dealers bought back dollars sold earlier in the day because the announcement didn’t contain more specific measures.

“He told us what we already knew. The announcements did not say how they are going to act and by when can we expect some action. It was done in a noisy parliament and the market will react positively only when we see some details,” said a dealer with a UK-based bank.

Since January this year, the rupee has weakened 10.25% and has lost the most among Asian currencies after the yen.

The dollar index, which measures the US currency’s strength against major currencies, ended at 81.402, up 0.34% from the previous close of 81.126.

India’s benchmark Sensex ended at 18,946.98 points, up 0.84% from the previous close.

The 10-year bond ended at 8.282%, up 1.73% or 0.141 basis points (bps) from the previous close of 8.141%. It opened at 8.229% and touched a high of 8.288% and a low of 8.187%.

The call money rate ended at 10.25%, up 2.50% or 0.25 bps from the previous close of 10%. It opened at 10.25 and touched a high of 10.50% and a low of 10.10%.

Source:-www.livemint.com

India Initiated 159 Anti-Dumping Cases Against China

12 Aug, 2013

NEW DELHI: India has initiated as many as 159 anti-dumping investigation cases since 1992 against China, with which it has a huge trade deficit, Parliament was informed today.



"The Directorate General of Anti-Dumping and Allied Duties has initiated anti-dumping investigations into 290 cases as on date involving various countries since 1992. Out of these, 159 cases involve imports from China," Commerce and Industry Minister Anand Sharma said in a written reply to the Lok Sabha.



He said the Chinese products on which anti-dumping duty has been imposed include sectors such as chemicals and petrochemicals, pharma, steel, fibres and consumer goods.



Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap imports of any product. As a counter-measure, they impose duties under the multilateral regime of the World Trade Organization.



The duty is aimed at ensuring fair-trade practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters resorting to dumping.



Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from product to product and country to country.



Further, Sharma said that during April-June quarter of the current fiscal, India's trade deficit with China stood at $9.64 billion. It was $40.8 billion in 2012-13.



In 2011-12, the deficit was aggregated at $39.44 billion, up from $27.99 billion in 2010-11.



Major items of Indian exports to China include raw cotton and yarn, iron ore, minerals, plastic, spices, machinery, petroleum. Import products include electric goods, machinery, chemicals, project goods, fertiliser, iron and steel, transport equipment and electric machinery.



In an another reply, Sharma said that recently an 8- member tea delegation from Iran has visited India.



"It is expected that there will be an increase in export of tea to Iran in the months ahead," he said.



In 2012-13, as per provisional figures, India's tea exports to Iran stood at 16.9 million kg (Rs 233.88 crore). In quantity terms, Iran accounts for eight percent of India's total tea exports and 10 per cent in value terms.



India's total production 2012-13 stood at 1,135.07 million kg. Out of this, the country exported 220.46 million kg.

Source:-economictimes.indiatimes.com

India: 40-50% Of Apples Are Imported

12-Aug-2013

European fruits and Chinese apples are a threat to the local fruit industry, Himachal Pradesh Chief Minister Virbhadra Singh said on Sunday.



"There is a need for diversification of fruit cultivation and plantation of new varieties of apples and other fruits to compete in the global market," Singh said at a conference organised by the Himachal Pradesh Horticultural Services Association.



He said horticulture experts and officials should think about meeting the future needs of productivity and quality.



Himachal Pradesh is a major apple-producing State. This season, it is heading towards a bumper production of over 35 million apple boxes of 20 kg each.



Trade representatives say 40-50 percent of the country's apple market is captured by imported ones, mainly from China, US, New Zealand, Australia and Chile.



Singh said the State has diverse agro-climatic zones that facilitate the cultivation of almost all temperate and sub-tropical fruits like apples, pears, cherries, peaches, plums, kiwis, mangos, citrus fruits and strawberry.



He said European fruits and Chinese apples were posing threat to Himachal's apple industry and Y.S. Parmar University of Horticulture and Forestry and the state horticulture department should import new varieties of fruits to compete with global markets.



The chief minister also asked horticulture officers to guide farmers on how to grow flowers as per the demands and the market requirements.



To promote mango cultivation, he said a blanket ban was imposed on cutting of mango trees during his previous tenure but trees were being axed illegally.



Singh said the climate in middle and upper hills was conducive for the production of off-season vegetables and farmers should make use of this.



He said efforts were being made to create and encourage infrastructure for post-harvest handling and processing of horticulture produce.



Apple harvesting has begun in the state and will pick up in the next few weeks. It continues till November.



According to the Directorate General of Commercial Intelligence and Statistics, the import of apples had increased by over 50 percent from 134,576 tonnes in 2010-11 to 199,262 tonnes in 2012-13.



It says China alone exported 73,648 tonnes of apples to India, out of the total Indian import of 188,071 tonnes in 2011-12.

Source:-www.freshplaza.com

Cotton Exports Dip By 31 Pc In 2012-13; Imports Rise

August 12, 2013

Cotton exports dropped by 31 per cent to 9.8 million bales in 2012-13 marketing year that ended last month, but imports rose slightly to 1.47 million bales in the same period, a report said.



The world’s second largest cotton producer is expected to import more natural fibre in the coming months, it noted. “Preliminary data suggests that exports reached 9.8 million bales through the end of July, the final month of the 2012-13 marketing year,” the US Department of Agriculture (USDA) said in its latest report. The outbound shipments stood at 14.17 million bales in the 2011-12 marketing year that runs from August to July.



ALSO READ: Exports likely to revive in second quarter



One bale contains 170 kg of cotton fibre. Major exports markets were China, Bangladesh and Vietnam. On the other side, the country’s cotton imports rose by two per cent to 1.47 million bales in 2012-13 marketing year, as against 499,524 bales in the previous year.



“More than 60 per cent of import shipments in July originated from West Africa suggesting that, as predicted, mills are covering their needs with imports. Imports are expected to continue over the next few months,” the USDA said.



The state-owned Cotton Corporation of India (CCI) has sold nearly 50 per cent of its stocks and higher volumes of cotton imports are expected over the next few months, it said.



CCI has sold 1.2 million bales of cotton so far and has stock around 1.1 million bales. The agency continues to auction stocks on a daily basis and will continue to release stocks in the 2013-14 marketing year, provided there are enough buyers, it added. While India’s overall consumption forecast was 28.81 million bales for 2012-13, the monthly consumption averaged over two million bales since December 2011. Trade sources indicate that domestic consumption will remain strong as small to medium sized mills seek to cover their position till September this year, the report said.



Larger mills are facing fewer liquidity issues and are largely covered with either imports or domestic supplies through October when new-crop cotton arrive, it added. India is estimated to have produced 33.8 million bales in 2012-13 crop year (July-June), slightly lower than last year.

Source:-www.business-standard.com

SAT imposed penalty on Registrar for multiple allotment and delayed redressal of investor's grievanc

SEBI: Where there were innumerable cases of mismatches, multiple allotments made to same person, delayed redressal of grievances by appellant, Registrar to an Issue and Share Transfer Agent, penalty imposed by adjudicating officer was justified

Exclusive accounts to get credit of funds received on sale of shares acquired under portfolio Invest

FEMA/ILT : FEM (Transfer or Issue of Security by A Person Resident Outside India) (Third Amendment) Regulations, 2013 - Amendment in Schedule 3

Transaction at uniform global price can't be assumed to be at ALP unless comparability analysis is d

IT/ILT : Purchase transactions could not be held to be at arm's length where no comparability analysis was done, simply because AE supplied products at global price list

Concealment penalty to be levied when unexplained credit is added to taxable income

IT: Amount having been added under section 69A nonetheless is to be treated as income of assessee and unless assessee prove that there was no concealment, penalty is to be imposed

Amount of excise duty refunded to create employment opportunities was a capital receipt - HC

IT: Where excise duty refund was not a production or operational incentive, it was a capital receipt not chargeable to tax

HC dismissed writ petition against penalty order u/s 271FA as assessee had an alternate remedy

IT: Where an alternative remedy by way of appeal was available to assessee against penalty order under section 271FA, writ petition on issue of penalty was not maintainable

Onus to prove creditworthiness of share applicants isn't on assessee once their identity is establis

IT: Where assessee established identity of share applicant, burden of proving creditworthiness was not on assessee

Sec. 158BD requires filing of return to escape penalty which can't be deemed to fulfilled on filing

IT: An assessee must not file a nil return upon receipt of notice under section 158BD, so as to avoid penalty

Service tax was leviable on repair service provided by manufacturer of transformers to its clients

ST : Extended period is invocable to recover service tax where a true and fair construction of relevant statutory provisions leaves no doubt that assessee was liable to service tax

FORM A-1 New Central Excise Registration form. To fill this form Please see Instruction-1 and Instruction-2

Duplicate Form A-1 APPLICATION FOR CENTRAL EXCISE REGISTRATION (see rule 9 of Central Excise Rules, 2002) New Registration Amendments to information pertaining to existing Registrant Registration Number in case of existing Registrant Part I: Identification of business requiring Registration (Manufacturing, Warehousing, hundred percent Export Oriented Undertaking, Unit in Export Processing Zone , First Stage Dealer, Second Stage Dealer ) 1. Name of the Registrant (Please see instruction No. 5) 2. Details of Permanent Account Number (PAN) (Please see instruction No.6) Whether PAN has been issued by the Income Tax (i) Yes No Department (ii) If yes, the PAN (iii) Name of the Registrant (as appearing in PAN) (iv) If PAN is not available, whether applied for PAN Yes No 3. Category (tick only one box) Manufacturer Warehouse Export Oriented Unit within Export Processing Undertaking Zone Manufacturer's Depot Dealer 4. Constitution of business (tick only one box) (Please see instruction No. 7) Proprietorship Partnership Registered Company Unregistered Company Trust Society Others 5. Address of business premises (i) Name of Premises/Building (ii) Flat/Door/Block No. (iii) Road/Street/Lane (iv) Village/Area/Locality (v) Block/Taluk/Sub-Division/ Town (vi) Post office (vii) City/District (viii) State/Union Territory (ix) PIN (x) Telephone Nos.: (Please see instruction No.8) (xi) Fax No. (Please see instruction No. 8) xii) E-mail Address 6. Define boundaries of the premises to be Registered (Please see instruction No.9) (i) North (ii) East (iii) West (iv) South 7. Details of property holding rights of the Registrant with respect to the premises sought to be Registered (tick only one box) Ownership Lease/Rent If owned whether mortgaged/ hypothecated: Yes No 8. Estimated investment in land, plant and machinery (Rupees in Lakh): 9. Address of Head Office if different from that given at S.No. 5 above (i) Name of Premises/Building (ii) Flat/Door/Block No. (iii) Road/Street/Lane (iv) Village/Area/Locality (v) Block/Taluk/Sub-Division/ Town (vi) Post office (vii) City/District (viii) State/Union Territory (ix) PIN (x) Telephone Nos.: (Please see instruction No.8) (xi) Fax No. (Please see instruction No. 8) (xii) E-mail Address 10. Name, designation and address of the person signing this Application Form and of the authorised person(s): (Please see instruction No.10) (i) Name (ii) Designation (iii) Name of Residential Premises/Building (iv) Flat/Door/Block No. (v) Road/Street/Lane (vi) Village/Area/Locality (vii) Block/Taluka/Sub-Division/ Town (viii) Post office (ix) City/District (x) State/Union Territory (xi) PIN (xii) Telephone Nos.: (Please see instruction No. 8) (a) Office (b) Residence (xiii) Fax No. (Please see instruction No. 8) (xiv) E-mail Address 11. Please see Details of Bank Accounts used for business transactions by the Registrant ( instruction No. 11) (a) Number of Bank Accounts (b) Account 1 (i) Name of the Bank (ii) Name of the Branch (iii) Account No. (c) Account 2 (i) Name of the Bank (ii) Name of the Branch (iii) Account No. Part II: Business Transaction Number obtained from other Government Agencies/Departments 12. Details of Business Transaction Numbers obtained from other Government Agencies/Departments (Please see instructions No. 12 and 13) (i) Customs Registration No. (BIN No.) Yes No If yes, give details Directorate General Foreign Trade's Import (ii) Export Code No. Yes No If yes, give details (iii) Sales Tax Registration Nos. (a) State Sales Tax No. Yes No If yes, give details (b) Central Sales Tax No. Yes No If yes, give details (iv) Registrar of Company's CIN No. Yes No If yes, give details Part III: Proprietor/Partners/Chief Executive Officer /Chairman /Managing Director/Trustee etc. 13. Mode of business (Please see instruction No. 14) (i) Name (ii) Designation (iii) Name of Residential Premises/Building (iv) Flat/Door/Block No. (v) Road/Street/Lane (vi) Village/Area/Locality (vii) Block/Taluk/Sub-Division/ Town (viii) Post office (ix) City/District (x) State/Union Territory (xi) PIN (xii) Telephone Nos.: (Please see instruction No. 8) (a) Office (b) Residence (xiii) Fax No. (Please see instruction No. 8) (xiv) E-mail Address (xv) PAN (issued by the Income Tax Department) PART IV: Major Excisable goods to be manufactured, warehoused or traded/ Major inputs 14 Major excisable goods manufactured, warehoused or traded (description and CETSH) (Please see instruction No. 15 ) (i)______________________ (ii) ____________________ (iii) ____________________ 15. Major excisable goods used in the manufacture of final product (description and CETSH) (Please see instruction No. 15) (i)______________________ (ii) ____________________ (iii) ____________________ DECLARATION I, ________________________________________________ hereby declare that the information given in this Application Form is true, correct and complete in every respect and that I am authorised to sign on behalf of the Registrant. (Please tick appropriate box) (a) For new Registration/Amendment to Registration Certificate I would like to receive the Registration Certificate ­ by mail at the address specified at S. No. ______ of Part-I by Hand (b) For amendments to information pertaining to existing Registrant The above mentioned amendments are with effect from / / (Signature of the applicant/authorised person with stamp) (Please see instruction No. 16 ) Date: Place: ACKNOWLEGEMENT (To be given in the event Registration Certificate is not issued at the time of receipt of Application for Registration) I hereby acknowledge the receipt of your Application Form (a) For new Registration / amendments to existing Registration Certificate As desired, the New Registration Certificate will be sent by mail/ handed over to you in person on / / (b) For amendments to information pertaining to existing Registrant Signature of the Officer of Central Excise (with Name & Official Seal) Date: Instructions for filling up the Application Form for Registration 1) This Application Form should be used for applying for Registration as also for informing any corrections/ changes in the information, subsequent to Registration. Any change in the information subsequent to Registration, except those under Part IV, must be brought to the notice of the Central Excise Department. Such changes should be indicated by ticking the relevant box at the top of the Form, providing the Registration Number and filling up only such information that has undergone change leaving the boxes for information not to be amended blank. 2) The Application Form has to be filled in Duplicate, and submitted to the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, having jurisdiction over the place of business. 3) Export Oriented Units and Units in Export Processing Zones in the Port Towns/cities which are in the jurisdiction of Commissioners of Customs would submit the Application Form to the concerned Deputy Commissioner of Customs or Assistant Commissioner of Customs. 4) After entering the relevant details, extra boxes in a field may be left blank. Also one box may be left empty after completion of each entry. For example more than one telephone number may be given as under: 0 1 1 3 0 9 2 8 2 9 0 1 1 3 0 9 2 8 3 0 5) The name should be the name and style in which the Registrant is likely to carry out business from the premises seeking to be registered. Please do not mention any prefixes such as M/s, Mr., Sh., etc 6) An attested copy of PAN allotted by the Income Tax Department should be enclosed; in case PAN has not been allotted attested copy of the acknowledged application for PAN should be enclosed. 7) A registered company means, a company registered with the Registrar of Companies under the Companies Act, 1956 (1 of 1956) and having a CIN number. Unregistered means a company that is not so registered 8) Telephone and fax numbers to be given with NSD code, without leaving a gap. 9) The description of the boundaries of the premises to be registered, should correspond to the one given in the Land Records. 10) If there are more than one authorized persons, information is to be provided in respect of all in a separate sheet in the same box format. 11) In case the Registrant has more than one Bank Account, for transacting his business, only two accounts with the maximum transactions must be mentioned. 12) The details relevant to the Registrant only are to be filled. The details of businesses carried out from other premises need not be filled. 13) If the status of the company is shown as Registered Company in Part I 4, then the information in Part II 12 (iv) is mandatory. 14) The maximum number of persons, whose details are to be provided, should not exceed seven. In the case of a partnership firm, details of partners are to be provided; in case of Registered /unregistered company, the details of its Chief Executive Officer /Chairman and Managing Director/Managing Director/Chairman/ key Directors as per relevance are to be provided; in the case of Society, the details of its President, key Executive Members, are to be provided; in case of any other type of business, the details of key personnel engaged in management of the business are to be provided. If more names are to be provided the information shall be provided in respect of all in a separate sheet in the same manner. 15) The details of the three major excisable goods/inputs likely to be manufactured/used/traded should be mentioned. 16) The instructions in respect of the person signing the Application for registration are as under: (a) The Application may be signed by the Registrant himself or by his authorised agent having general power of attorney. (b) The person signing the Application must be a holder of Permanent Account Number (PAN) allotted by the Income Tax Department. (c) In case of unregistered partnerships, all the partners should sign the application. (d) In case of registered Partnership the Managing Partner or other partners so authorised in the Partnership Deed may sign the application.";

HC directed parties to maintain status quo it recovery proceedings till disposal of pending stay app

IT : Parties were directed to maintain status quo in recovery proceedings till disposal of pending stay petition

CIT vs. HCIL Kalindee ARSSPL (Delhi High Court)

S. 271(1)(c) penalty is valid even if claim is disclosed and as per CA certificate The assessees claimed deduction u/s 80IA on the ground that it has executed an eligible infrastructure project. A copy of Form No.3CB, 3CD and Form No.10CCB was filed with the return in support of the claim. In the assessment order, the AO denied 80-IA deduction on the ground that the assessee had not executed the work but had given a sub-contract to another party and that it was not eligible u/s 80-IA(13). The assessee accepted the denial of the claim. The AO levied penalty u/s 271(1)(c) for filing inaccurate particulars of income which was upheld by the CIT(A). The Tribunal relied on Reliance Petroproducts 322 ITR 158 (SC) and deleted the penalty on the ground that the claim for deduction u/s 801A was on the basis of a certificate of the CA, was bona fide and all the material facts relevant thereto had been furnished. On appeal by the department to the High Court, HELD reversing the Tribunal: While it is true that the Income-tax Act, 1961 is one of most vexed and complicated legislation and requires highest degree of interpretative skills and there are divergent views on interpretation of its provisions and while it is also true that penalty for concealment cannot be imposed merely because assessee’s interpretation or claim is rejected, such cases have to be distinguished from cases where the claim of the assessee is farcical or farfetched. Dubious and fanciful claims under the garb of interpretation, are a mere pretense and not bona fide. Absurd or illogical interpretations cannot be pleaded and become pretense and excuses to escape penalty. “Bona fides” have to be shown and cannot be assumed. The fact that the claim for deduction u/s 80IA was duly supported by the Chartered Accountant’s Certificate and prescribed forms signed by the CA cannot absolve and protect an assessee who furnishes in-accurate particulars because then in all cases where a form/certificate is furnished by the CA but a wrong claim of deduction is made, no penalty u/s 271(1)(c) can be imposed. Merely because the assessee complies with the statutory procedural requirement of filing the prescribed form and certificate of the Chartered Accountant cannot absolve the assessee of its liability if the act or attempt in claiming the deduction was not bona fide. On facts, the assessee’s claim was not tenable due to the Explanation to s. 80IA (13) which stipulates that benefit is not available to a contractor carrying on a works contract. The assessee has not shown any “tangible material” or basis as to why a clear statutory provision which excludes works contracts was ignored.