Unwanted litigations caused revenue to pay cost to assessee; HC slams revenue for unnecessary litiga

IT: Where assessee was driven to unnecessary litigation even after concluding order had been passed in her case, cost was to be awarded against revenue for such a conduct

Customs Circular No 33/2013 dated 23-08-2013

Government of India

Ministry of Finance

(Department of Revenue)

Tax Research Unit

Circular No. 33/2013-Customs

New Delhi, dated the 23^th August, 2013

To,

All Chief Commissioners of Customs.

All Chief Commissioners of Customs & Central Excise.

All Chief Commissioners of Central Excise.

All Directors General of CBEC.

Sub: - Customs Duty Exemption for Import of Ash Handling Systems, Water Treatment Plant and Coal Transportation Facilities etc. Required for Ultra-Mega/ Mega Power Projects under Heading 9801(Project Imports)-Clarification -Reg.

Sir / Madam,

I am directed to invite your attention to notification No. 12/2012-Central Excise (S. Nos. 337&338), dated 17-03-2012 , which provides exemption to machinery, instruments, apparatus and appliances etc. required for setting up of ultra-mega/ mega power projects. Particular attention is invited to the Explanation, which clarifies that the goods required for setting up of these projects include the goods required for development of facilities such as ash disposal system including ash dyke, water intake including treatment and storage facilities and coal transportation facilities for such a project, notwithstanding the fact that such facilities are set up inside or outside the power plant’s designated boundary.

2. In this connection, representations have been received from the trade and industry that the benefit of exemption is being denied to the afore-cited goods when they are imported for setting up of ultra-mega/ mega power projects. It has been requested that, for removal of doubts, a clarification, on the lines of excise exemption, should be issued by the Ministry that the said goods required for ultra-mega/ mega power projects are eligible for customs duty exemption.


3. The matter has been examined by the Ministry. In Pre Budget 2011-12, representations were received from power producers that limited interpretation of the term power project as facilities inside the plant boundary only, was restrictive in nature and was limiting the scope of exemption of customs and excise duty on goods required for these facilities. It was requested that the benefit of exemption for ultra mega power projects should be extended to the development of facilities both inside and outside the power plant’s designated boundary such as ash pond, water intake, coal transportation within the scope of the term ‘project’. The matter was examined and it was decided to clarify that the benefit of exemption, available for ultra mega power projects, would be available for development of facilities such as ash disposal system including ash dyke, water intake including treatment and storage facilities and coal transportation, both inside and outside the power plant’s designated boundary. Accordingly, an Explanation was inserted at S. Nos. 91A & 91B of notification No 6/2006-CE, dated 1.3.2006 [now S. Nos. 337 and 338 of notification No. 12/2012-CE dated 17-03-2012 ].


4. The explanation clarified, without any ambiguity whatsoever, that the goods specified in paragraph 1 above and required for setting up of ultra-mega/ mega power projects would be eligible for the benefit of excise duty exemption even if the facilities are set up outside the power plant’s designated boundary. No such clarification was issued for the purpose of availing of the customs duty exemption, as it was felt that this exemption would be available to the said goods under project imports.


5. Subsequently, representations were received, seeking clarification in respect of customs duty exemption on the said goods required for setting up of ultra-mega/ mega power projects. The issue was examined in consultation with Ministry of Power (MoP). MoP vide letter dated 13^th October, 2011 clarified that facilities such as ash disposal system including ash dyke, water intake including treatment and storage facilities and coal transport facilities are an integral part of mega power projects and therefore, customs duty should be exempted for import of these goods under the Mega Power Policy. On the basis of this, a clarification dated 29-12-2011 (copy enclosed) was issued to the Commissioner of Customs, Nhava Sheva, stating that these goods are eligible for customs duty exemption.


6. Now, it has been brought to the notice of the Ministry that in the absence of a general clarification, the Customs authorities at certain places are demanding duty on these goods on the ground that the goods are used outside the power plant’s designated boundary. However, the foregoing would make it clear that the intention all along was to grant exemption from Customs duty on these goods.
   

   6.1 For removal of doubts, it is clarified that the goods required for development of facilities such as ash disposal system including ash dyke, water intake including treatment and storage facilities and coal transport facilities required for ultra-mega/ mega power projects are eligible for customs duty exemption, notwithstanding the fact that such facilities are set up inside or outside the power plant’s designated boundary.

   
   


7. Difficulties, if any, faced in the implementation of the instructions may be brought to the notice of the Ministry at an early date.

Encl: As above.

Yours faithfully,

(P.K. Mohanty)

Joint Secretary (TRU)

Telephone: 011 23092687

F.No.354/94/2011 -TRU

Collection of toll charges under 'Built, Operate and Transfer' arrangement isn't liable to ST

ST: Where assessee, providing services of construction of road, was allowed to collect toll charges to finance/compensate cost of construction on BOT basis, such toll charges are collected on assessee's own behalf and for themselves and, therefore, it is not Business Auxiliary Services and is not liable to service tax.

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Concessional rate to tax the dividend isn't available under treaty if it couldn't be taxed in countr

IT/ILT: Where assessee, a resident of India, received dividend from a Singapore based company in which it owned more than 25 per cent shareholding, in view of para 1 of article 10 of India - Singapore DTAA, amount so received was liable to be taxed at normal rate of 30 per cent

Employees' contribution to PF, ESI deductible if paid after respective due dates but before sec. 139

IT: Where assessee had deposited amount received from his employees as contributions in provident fund and ESI fund of employees after due date, i.e., after 15th of next month, but before due date of filing return, Assessing Officer was wrong in adding said amount to income of assessee as per provisions of section 36(1)(va) read with section 2(24)(x)

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Loading, unloading transportation and stacking of goods within factory are 'Cargo Handling Services'

ST: Assessee's activity involving loading, unloading, stacking and incidental transportation of goods within factory premises is, prima facie, 'cargo handling service'

No dep. on sum incurred to get leasehold property; Cap exp. incurred on structural changes is deprec

IT: Assessee was not entitled to depreciation in respect of long-term leasehold properties including lease for perpetuity; it was eligible to depreciation with regard to capital expenditure for structure by way of addition and/or alteration

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IT: Where assessee had a contract for repairing of transformers, tax under section 194C was rightly deducted only on labour charges by excluding value of material used by contractor for repairing of transformers

AO is supposed to be mentor of assessee; should provide correct relief to assessee if wrongly claime

IT: Where due to ignorance wrong section had been mentioned by assessee in return, Assessing Officer was required to advise assessee about correct claim and also to assess tax legitimately

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CL : Debt Recovery Tribunal by itself or through its recovery officer under provisions of Recovery of Debts due to Banks and Financial Institutions Act, 1993 is empowered to sell assets of a company under liquidation at instance of secured creditor without leave of company Court but associating with Official Liquidator since he is deemed to have pari-passu charge of assets under section 529A

FDI in multi-brand retail: Mandatory 30% purchases from MSME; Discretion with State Govt. to allow m

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Customs Notification No 87/2013 (NT) dated 22-08-2013

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

(CENTRAL BOARD OF EXCISE AND CUSTOMS)

Notification No.87/2013 - Customs (N.T.)

Dated the 22^nd August, 2013

31 Shravana, 1935 (SAKA)

S. O…. (E). – In exercise of the powers conferred by Section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs hereby makes the following further amendments in the Notification of the Government of India, Ministry of Finance (Department of Revenue) No. 83/2013-CUSTOMS (N.T.) dated the 14th August, 2013 published in the Gazette Of India, Part-II, Section 3, Sub-Section (ii), Extraordinary vide number S.O. 2467(E) dated, the 14th August, 2013, namely:-

In SCHEDULE-I of the said Notification, for Serial No.2,4,5,6,7,8,14, 16,17,18 and the entries relating thereto, the following shall be substituted, namely:-

SCHEDULE-I

S.No.	Foreign Currency	Rate of exchange of one unit of foreign currency equivalent to Indian rupees
(1)	(2)	(3)
		(a)	(b)
		(For Imported Goods)	(For Export Goods)
2.	Bahrain Dinar	176.85	167.20
4.	Danish Kroner	11.75	11.40
5.	Euro	87.40	85.50
6.	Hong Kong Dollar	8.45	8.30
7.	Kenya Shilling	76.30	72.00
8.	Kuwait Dinar	234.55	221.60
14.	Saudi Arabian Riyal	17.80	16.80
16.	Swiss Franc	71.00	69.35
17.	UAE Dirham	18.15	17.15
18.	U.S. Dollar	65.35	64.30

In Schedule-II for Serial No.1 and the entry relating thereto, the following shall be substituted, namely:-

SCHEDULE-II

S.No.	Foreign Currency	Rate of exchange of 100 units of foreign currency equivalent to Indian rupees
(1)	(2)	(3)
		(a)	(b)
		(For Imported Goods)	(For Export Goods)
1.	Japanese Yen	66.85	65.25

These rates will be effective from 23rd August, 2013.

(M. SATISH KUMAR REDDY)

DIRECTOR (ICD)

Telephone No. 011-2309 3380

[F. No. 468/03/2013-Cus.V]

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