Income from sale of bonus share can’t be treated differently if original shares were taxed as capit

IT : Where Assessing Officer treated income from sale of shares as short-term capital gain, he was not justified in holding that a part of said income arising from sale of bonus shares purchased by assessee subsequently was to be regarded as business income without assigning any justifiable reasons therefor

Instruction specifying minimum tax effect to admit an appeal is applicable to pending cases as well

IT : Where tax effect in appeal filed by revenue before Tribunal was less than amount prescribed by relevant CBDT circular, revenue should not have filed appeal; circular is applicable to pending cases also

Goods deemed to have been sold within State if no endorsement was made on transit pass on exit of ve

CST & VAT : Where there was no endorsement on transit pass at time of alleged exit of vehicle, Department could presume that goods had been sold within State and levy tax and penalty, as assessee had failed to prove otherwise

Income from deposits couldn’t be added to Sahara's income as it was only a custodian of such deposit

IT: Where assessee-firm received deposits from public under some financial schemes, in view of fact that assessee was merely a custodian of deposit and income arose from deposits in form of dividend, interest etc., Tribunal was justified in holding that deposits themselves could not amount to income chargeable to tax

Matter remanded as AO rushed to conclude assessment without waiting for CBDT's decision on related m

IT: Where Assessing Officer in violation of Tribunal's direction to wait for decision of CBDT on assessee's application filed under section 10(23C)(vi), passed assessment order, order so passed was to be set aside and, matter was to be remanded back for disposal afresh

Interest and penalty both were to be levied even if duty was paid prior to issuance of show cause no

Excise & Customs : Interest and penalty can be levied even if assessee has paid duty prior to issuance of show-cause notice

Issue as to levy of Ed. cess on tax payable as per treaty can't be decided in an intimation under se

IT/ILT: In view of order passed in case of Sunil V. Motiani v. ITO (International Taxation) [2013] 59 SOT 37/33 taxmann.com 252, Commissioner (Appeals) rightly held that scope of adjustment under section 143(1) was limited and, therefore, Assessing Officer in terms of said provision could not levy educational cess and surcharge on interest income offered by assessee in accordance with provisions of article 11(2)(b) of India - Singapore DTAA

Respondent-co. couldn’t demand reopening of CLB’s order; HC upheld winding-up of co.

CL : Where division bench in review petition had held that findings and prima facie observations of Company Judge in his order warranting admission of company petition would stand, it was not open to respondent-company to re-agitate or try to reopen order passed by Company Judge insofar as it admited winding up petition

[Indian Customs Non-Tariff Notification] : Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

Pressing of loose cotton into cotton bales amounts to manufacture; entitled for section 80-IB deduct

IT : Activity of pressing loose cotton into cotton bales is manufacturing activity entitled to deduction under section 80-IB

Removal of unwanted plant and garbage at residence of manufacturer was not liable to ST as cleaning

Service Tax : Cutting of unwanted grass, plants, etc. in respect of jungle area nearby storehouse and removing of garbage from roads as well as de-silting and checking sewage lines etc. in township and residential premises cannot be charged to service tax under 'cleaning activity services'

Block assessment annulled as allegation of non-disclosure of transaction couldn't be substantiated b

IT : Where entries disclosing transactions were there in books of account which were audited, signed and forwarded to Board of Directors, it was difficult to hold that transactions had not been disclosed to department; entire block assessment was to be annulled

HC rejects liquidator's complaint against directors alleging misfeasance as they resigned prior to w

CL : Where ex-directors of company-in-liquidation had resigned much prior to its winding up, complaint filed against them for acts of misfeasance on basis of truncated annual report was to be dismissed

AO can't use material disclosed in return filed prior to search to make additions in undisclosed inc

IT : For computing undisclosed income, Assessing Officer cannot rely upon material disclosed by assessee in regular return filed prior to search

Cenvat reversals to be made as per due date specified in Rule 8 of CCR

Cenvat Credit : Reversals under rule 3 of CENVAT Credit Rules, 2002 on removal of inputs as such are not to be made on 'date of removal' but on due date specified in rule 8(1) of Central Excise Rules, 2002 and no interest can be demanded if payment is made by such due date

Excess sum paid to sister concern held allowable as both concerns were paying tax at same rate

IT : Where assessee purchased superior quality goods from sister concern at a higher rate but third parties purchased same at a more higher rate, excess payment would be allowable

CLB dismissed petitioner's request for forensic test of allotment docs as he was aware of such allot

CL: Where during pendency of petition filed under sections 397 and 398 of 1956 Act, petitioner sought forensic examination of some documents filed by respondents relating to allotment of shares, in view of fact that allotment of shares had been done over a period of nineteen years and, moreover, respondents had filed statutory reports from time to time as per provisions of Act, it had to be presumed that it was very much in notice of petitioners as and when share allotments were made, and, thus,

Withdrawal over a period of 3 years to redeposit it in bank a/c isn't valid argument; HC affirms sec

IT : Where Assessing Officer issued on assessee a notice under section 142(1) on 30-8-2007 calling upon him to furnish return for assessment year 2005-06, in view of insertion of proviso in clause (i) of section 142(1) by Finance Act, 2006, with retrospective effect from 1-4-1990, said notice was issued well within period of limitation

No promissory estoppel, if grant of export rebate for earlier period was contrary to law

Excise & Custom : Where export rebate was available only in respect of 'cotton quilts', same could not be allowed for 'quilt covers' even if same was allowed contrary to law for earlier periods, as there cannot be estoppel as to contravention of law

HC upheld disallowance of 80% of exp. paid to holding co. under sec. 40A(2) as it failed to furnish

IT : Where assessee-company paid certain amount to its holding company towards services rendered by it and claimed deduction of same, since assessee had not furnished calculation and other material in terms of section 40A(2), disallowance of 80 per cent of expenditure under section 40A(2) was justified

Income from sale of shares treated as capital gain even when it witnessed higher frequency of transa

IT : Where assessee had shown income arising from sale of shares as long-term capital gain and she had treated purchase and sale of shares as investment, Assessing Officer was wrong in treating said income as business income on plea that assessee was indulged in frequent purchase and sale of shares and magnitude of some transactions was very high

Penalty can't be levied without first issuing show cause notice to that effect

CST & VAT : Penalty levied under Section 34(12) of Gujarat VAT set aside, when show-cause notice had proposed penalty only under Sections 12(7) and 34(7) and not under Section 34(12), as said penalty was violative of principles of natural justice

Reserve and surplus acquired on amalgamation is not revenue receipt; held not taxable under sec. 28(

IT : Where nine companies had amalgamated with assessee-company and as a result of amalgamation assessee acquired from amalgamating companies reserve and surplus, benefit accruing to assessee could not be considered for taxation under section 28(iv)

Rubber Imports To Go Up 47 Pc To 3.2 Lakh Tonnes In Fy'14

Natural rubber imports are likely to rise by 47 per cent to touch a new all-time high of 3.2 lakh tonnes in the current financial year on back of lower prices in the global market.

"Till last week, the inward shipments of natural rubber were at 2.9 lakh tonnes and as per our estimates the total imports by the end of 2013-14 fiscal will be around 3.2 lakh tonnes," a senior rubber board official said.

According to Rubber Board data, India's natural rubber imports in the financial year 2012-13 were at 2.17 lakh tonnes -- all time high so far.

Imports have increased notwithstanding the Centre raising import duty on natural rubber to Rs 30 per kg or 20 per cent, whichever is lower, in December. The basic customs duty on natural rubber earlier stood at Rs 20 a kg or 20 per cent whichever was lower.

"Imports have gone up as bulk of contracts for import of natural rubber were made in the period June to October before the import duty was raised. At that time, prices in the international market were down by Rs 35 per tonne as compared to domestic prices," official added.

During April-January period of this fiscal, consumption of natural rubber has marginally come down to 8.11 lakh tonnes from 8.18 lakh tonnes in the year ago period.

Production of natural rubber during April-January period in the current financial year has also dropped by 9 per cent to 7.23 lakh tonnes against 7.98 lakh tonnes in the same period previous fiscal.

The impact of decline in rubber production was visible in export trend, as outward shipments have fallen 66 per cent to 5,357 tonnes against 15,632 tonnes during the period under review.

Source:- business-standard.com

Successor gets depreciation on sum paid in acquisition towards goodwill comprising copyright, patent

IT : Where assessee-company acquired running business of a company for a lump sum consideration of Rs. one crore and it had recorded book value of net tangible assets in balance-sheet as Rs. 38 lakhs and balance part of Rs. 62 lakhs was allocated in balance-sheet as goodwill, assessee was entitled to depreciation on goodwill

Tribunal Finds Meal Vouchers Subject To Service Tax As Business Auxiliary Service

The Customs, Excise and Service Tax Appellate Tribunal recently determined the applicability of service tax in relation to Sodexo meal vouchers sold by the appellant under the taxing entry for business auxiliary services.(1)

The tribunal observed that it was the employer that had purchased the meal vouchers, not the employee. The tribunal further noted that under the voucher scheme, the user of the voucher (ie, the employee) was required to buy goods and services only from affiliates of the appellant. The tribunal argued that this restriction imposed on employees when redeeming the voucher was tantamount to promotion of the goods and services of the affiliates, and therefore the appellant provided business auxiliary services to its affiliates.

The appellant had contended that the meal vouchers were similar to credit or debit cards, but this argument was rejected by the tribunal on the grounds that with a debit or credit card, the cardholder can buy goods or services from almost any business establishment and is not restricted to selected affiliates, as is the case with vouchers. The meal vouchers were further distinguished from debit or credit card transactions on the basis that the appellant retained the entire amount, even in respect of unutilised vouchers.

The decision will have implications for other transactions of a similar nature (eg, issuance of gift vouchers by retail chains or e-commerce entities).

Source:- internationallawoffice.com

India Is Largest Shrimp Exporter To Us

Last year, India was the largest exporter of shrimps to the US, a first. Shrimp exports to the US, which stood at 94,000 tonnes (about half India’s overall shrimp exports), were valued at $1 billion. India is now the eighth-largest exporter of food items to the US.

Speaking to Business Standard, AJ Tharakan, president of the Seafood Exporters Association of India, said Thailand, the previous largest shrimp exporter to the US, had recorded low production last year, owing to the outbreak of a disease called the Early Mortality Syndrome (EMS). Aquaculture production in Thailand fell about 50 per cent due to the outbreak of EMS.

Thakaran said globally, shrimp prices had increased substantially, adding further increase was unlikely. In India, raw material costs for shrimp exports had increased to Rs 600 a kg. “So, further rise in export prices might affect our business with the US. The consumer resistance is already strong in markets such as the US and Europe,” he said.

Thakaran said the premium quality of Indian shrimps attracted importers in the US market. During her recent visit to India, Margaret Hamburg, the US Food and Drug Commissioner, said US authorities were largely happy with the quality of seafood India shipped to that country.

In a discussion with Tharakan, US Food and Drug Administration (FDA) officials accompanying Hamburg said through the years, the Indian seafood sector made various efforts to comply with US FDA import requirements. "Our seafood exports to the US are being treated fairly by the FDA, and we have no major issues on the inspection procedures followed by FDA for seafood imports," Thakaran said.

He, however, told the US FDA delegation when consignments were sampled for inspection, it sometimes took up to 60 days for the results to be known and containers to be released. This caused substantial financial stress for both the exporter, as well as the US importer concerned.

Between 2005 and 2010, exports to US had been hit by the imposition of anti-dumping duty. Imposition of countervailing duty (CVD) worsened matters. Thakaran said though CVD had been done away with and anti-dumping duty was low, he was concerned about CVD, as an appeal had been filed in this regard against the decision of US Department of Commerce.

Source:- business-standard.com

Energy Imports Will Rise To 84% In 2047 If Policy Not Changed: Planning Commission

India will have to import 84.4% of its energy demand in 2047 against 36% as of now, if the government and industry maintain a status quo on the policy and technology front across six major energy-consuming sectors in the country, the Planning Commission has warned.

India is the fifth-largest energy consumer in the world today, importing in excess of $100 billion worth of fuel per annum. However, the country's import dependence can be significantly brought down to 21% over the next 33 years if India achieves the highest level of production of coal, oil and gas as well as reduces its dependence on fossil fuel by moving to renewable energy sources, the commission says in its mediumterm projections for energy scenarios in the country.

The commission has pegged India's energy demand in 2047 at 23,679 TWh in the least-effort scenario and this is estimated to come down by nearly 40% to 14,732 TWh if there is greater usage of alternate fuels in the country.

"The energy scenarios projected for 2047 call for urgent action to ensure that we do not end up importing huge quantities of fuel as this would significantly impact India's current account deficit and put a question mark on the country's energy security," a senior Planning Commission official told ET.

According to the official, the projections made by the Planning Commission for India's energy demand and supply under four levels also suggest that going forward India's availability of oil and gas will shift in favour of gas, which is likely to constitute 60% of the total production against 40% now. "This would mean that the policies and efforts of the government as well as industry will have to be directed towards higher usage of CNG-run or electric vehicles if the transport sector continues to grow," the official quoted above said.

Planning Commission deputy chairman Montek Singh Ahluwalia will officially launch the Indian Energy Security Scenarios 2047 Tool on Friday.

Source:- economictimes.indiatimes.com

Coal Imports To Rise Just 3.4% In Fy14

In 2012-13, India’s burgeoning coal imports was among the finance ministry’s key concerns. This financial year, imports were seen rising at a worrisome 40%, owing to a domestic shortage, further increasing the country’s current account deficit (CAD). But 10 months into the current financial year, it appears the fears were grossly exaggerated.

Belying expectations, India’s coal imports rose a mere 16% to 131 million tonnes (mt) between April 2013 and January 2014. For the entire financial year, imports are likely to grow a subdued 3.4% to 150 mt, a stark contrast to the 42% growth registered in 2012-13.

The sharp drop in coal imports is due to rupee’s depreciation, as well as a slump in demand. These two factors offset the impact of depressed global prices.

While the 16% rise in imports in the April-January period led to a total foreign exchange outgo of Rs 56,588 crore, 27% more than Rs 44,539 crore in the year-ago period, this was lower than initial expectations. The calculation of the value of imports is based on an average price of Rs 4,300 a tonne (5,500 kilocalorie Indonesian coal, landed at the Visakhapatnam Port) this financial year, 8.9% more than Rs 3,945 a tonne in 2012-13.

“Last year, the rupee had touched 65/dollar. Since then, the rate has stabilised to about 62, which is still high for imports to pour in. The impact was already visible, as January 2014 imports stood at just 9.16 mt, a 33% fall year-on-year. For 2013, imports were just shy of 158 mt, 11% higher than in the previous year,” said Kalpit Dubey, analyst at commodities research firm OreTeam.

He added the lower growth in imports might not have any significant impact on the CAD, as this continued to be dominated by oil shipments. “India’s CAD is overburdened by crude oil imports; coal accounts for less than two% of the total imports, in terms of dollars.”

Last financial year, coal production in India rose a sluggish 3.3% to 557 mt, owing to delayed environmental clearances for new mines and the failure of captive miners to boost output. The supply gap had to be bridged by a 42% rise in imports at 145 mt.

From 73 mt in 2009, coal imports have almost doubled, leading to foreign exchange outgo of Rs 2,44,000 crore since then. However, due to a fall in imports, analysts expect imports this financial year to be just 3.4% more than 145 mt in 2012-13.

Coal is among the top five items in India’s import bill of about $415 billion a year. A weak rupee raises the bill, leading to higher inflation and a wider current account deficit. This strains the country’s foreign reserves and further strains growth in gross domestic product, which fell to a decade-low of 5% last financial year.

Source:- business-standard.com

Dollar Remains Flat Vs Rupee

The dollar remained flat against the rupee in the interbank market, dealers said on Thursday. It started the day’s trading at Rs 104.70 for buying and closed at Rs 104.70 for buying as compared to the previous trading session and Rs 104.90 for selling.

The euro shed strength against rupee as it started the day’s trading at Rs 143.87 for buying, fell Rs 56 paisas as compared to previous trading session and closed at Rs 143.31 for buying and Rs 143.59 for selling. The pound sterling weakened against the local currency as it initiated the day’s trading at Rs 174.60 for buying, decreased 3 paisas and closed at Rs 174.57 for buying and Rs 174.91 for selling.

Open market: The dollar dropped against the rupee, dealers said. It started the day’s trading at Rs 105.65 for buying, slumped 5 paisas and closed at Rs 105.60 for buying and Rs 105.85 for selling. The euro shed 75 paisas against the rupee as it started the day’s trading at Rs 144.50 for buying and closed at the rupee 144.25 for buying as compared to the previous trading session and Rs 144.50 for selling. The pound shed 50 paisas against the rupee as it started the day’s trading at Rs 176 for buying, declined 50 paisas and closed at Rs 175.50 for buying and Rs 175.75 for selling.

Source:-dailytimes.com.pk

Notification No. 91/2008 clarifying expression 'may be taxed' in context of DTAA shall have retro ef

IT/ILT: In pursuance of power conferred by sub-section (3) of section 90 with effect from 1-4-2004, Notification No. 91/2008 dated 28-8-2008 issued by Central Government clarifying phrase 'may be taxed' in context of DTAAs, is clarificatory in nature and, thus, it will have retrospective effect from assessment year 2004-05

Adda fees for bus parking is statutory fees, not liable to ST under business support services

Service Tax : Adda fees collected for bus parking is collected as a statutory fees and is not liable to service tax under Business Support Services; furthermore, land used for parking stands specifically excluded from 'renting of immovable property' services

SC raps HC for setting aside auction and depriving purchaser of legitimate purchased property at pub

Banking Laws: Where auction purchaser was a bona fide purchaser who had purchased property in furtherance of a duly publicized public auction, interference by High Court was uncalled for

RBI seeks to revive distressed assets; releases guidelines on refinancing of project loans and sale

BANKING : Framework for Revitalising Distressed Assets in The Economy - Refinancing of Project Loans, Sale of NPA and Other Regulatory Measures

RBI issues guidelines on formation of ‘joint lenders forum’ and adoption of corrective action plan

BANKING : Framework for Revitalising Distressed Assets in The Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP)

HC slams AO for referring matter to Valuation Officer even when high market rate of land was taken b

IT : To make reference under section 55A, Assessing Officer has to form an opinion that value claimed by assessee is less than fair market value

Delay in filing appeal due to lack of knowledge of impugned order is condonable, rules HC

CST & VAT : Where there was some serious confusion with regard to date of hearing fixed before Assessing Authority, which resulted in non-appearance of assessee and order passed by Assessing Authority was not immediately known to assessee, consequent delay in filing appeal further aggravated by assessee's illness is condonable

New auditor was not guilty of misconduct if ex-auditor couldn't prove outstanding undisputed audit f

CA Act : Where complainant CA failed to produce statutory required documents signed by both auditee and auditor indicating undisputed audit fee, it could not be alleged of professional misconduct on acceptance of assignment by other CA

Legal procedure to take over fractional shares can't be challenged if consolidation of shares made a

CL : Where consolidation of shares done by company was in accordance with Companies Act and Articles of Association, procedure adopted to take over fractional share of appellant-shareholder was legally sustainable

Appeal filed before issue of instruction delegating min tax effect for admitting an appeal shall be

IT: Appeal filed before issuance of circular dated 9-2-2011 having tax effect less than Rs. 10 lakh was allowed with a direction that order would not be treated as precedent in other matters

Basis of cost for PLI under TNM method is ‘total operating cost’ and not its fraction such as ‘direc

IT/ILT : PLI for TNMM computed w.r.t. 'costs incurred' should use total operating costs and not just direct costs

Cutting of carpet rolls and stitching its linings at edges to make mats would not amount to manufact

Excise & Customs : Cutting of carpet rolls into smaller sizes and subjecting them process of stitching linings at edges to make 'mats' does not amount to manufacture

Even stock revaluation loss was a 'speculative loss' if assessee was not carrying any business activ

IT : Revenue is fully entitled to rely on reports of its investigation wing which entailed serious doubt with regard to genuineness of share application money; however, assessee is to be given opportunity to confront those materials

Agricultural land confiscated as it was bought with foreign remittance received in contravention of

FEMA : Where appellant company had purchased agricultural land by utilizing foreign remittances obtained under Automatic Route, company had contravened section 6(3)(b) of FEMA

Revisionary powers of CIT are wide enough to rectify bonafide errors subject to compliance with othe

IT : Power under section 264 is wide enough to include rectification of a 'bona fide' error committed by an assessee, while claiming exemptions under section 54B

Commission agent's services are ineligible for input credit

Cenvat Credit : Services of commission agents (whether foreign agents or domestic agents) are ineligible for input service credit

Appearing in I-T proceedings won’t stop assessee from demanding a reasoned order transferring its ca

IT : Order of transfer of assessee's case should be well reasoned, passed after hearing assessee and same should be communicated to assessee

Forfeiture of sum paid in course of business for acquisition of tenancy right is a capital loss

IT: Where assessee paid a sum towards transfer of sub-tenancy of premises, but said deal did not materialize and advance could not be recovered, said sum be treated as capital loss since said transfer would have enabled assessee to use said premises as source of income

Jn Port Clears Psa’S Price Bid For New Terminal

The trust that runs the Union government-owned Jawaharlal Nehru port near Mumbai on Wednesday approved the highest price bid placed by Singapore’s PSA International Pte Ltd for building a Rs.8,000 crore container loading facility at the port that handles more than half of India’s container volumes.

The price bid by PSA Bharat Investments Pte. Ltd, a wholly- owned company formed by PSA International, was approved by the board of trustees of JN port on Wednesday, at least two trustees who attended the meeting said on condition of anonymity.

A spokesman for Jawaharlal Nehru port confirmed the decision taken by the board of trustees.

Last week, PSA emerged as the highest bidder for the project by quoting the highest revenue share price bid of 35.79%.

Ports contracts at union government-controlled ports are decided on the basis of revenue share—the bidder willing to share the most from its annual revenue with the government-owned port gets the contract, according to the port privatization policy of the government.

“JN port will now issue a letter of award to PSA for the project,” one of the two trustees cited above said on condition of anonymity because he is not authorized to speak to the media.

The bidding schedule for public-private partnership projects framed by the Union government mandates that the successful bidder has to sign the concession agreement within 30 days of getting the letter of award from the port authority.

PSA International, the world’s biggest container port operator by volumes, is fully-owned by Temasek Holdings Pte Ltd, the Singapore government’s investment company. PSA handled 61.81 million standard containers in calendar year 2013, according to its website.

PSA International could not be reached immediately for comment.The new project, the fifth at India’s busiest container port, is key to its capacity expansion plans.The new terminal, which will be designed to load 4.8 million standard containers a year, involves the biggest single foreign direct investment yet in an Indian port project, estimated about Rs.2,670 crore.

In the year to March 2013,Jawaharlal Nehru port loaded 4.26 million standard containers, operating at more than its designed capacity of 3.6 million standard containers a year.

Jawaharlal Nehru port currently has three container loading terminals while a fourth one is under construction by Dubai’s DP World Ltd.The port, one of the 13 owned by the union government, is expected to handle 11 million standard containers by 2016 and 23 million standard containers by 2020, according to a 10-year plan for ports unveiled by the shipping ministry in 2011.

The project will be the first to utilize the new guideline for tariff setting at ports owned by the union government that was announced in July 2013.

The new rules grant flexibility to cargo handlers to raise their rates every year based on market conditions subject to a cap of 15% if they comply with certain performance standards.

In the earlier rule, cargo handlers had to seek approval for rate increases from the regulator once in three years, which was either granted or rejected.

Source:- livemint.com

No fees leviable on appeals relating to refund or rebate of service tax, excise and customs duty

Service Tax : No fees is payable on appeals relating to refund/rebate of Service Tax, Excise Duty or Customs Duty

HC teaches basics to AO; asks to allow depreciation as per IT Act and not as per Companies Act

IT: In assessment, depreciation to be provided as per Income-tax Act; and not as provided under Companies Act

Punj Lloyd Faces Rs 61 Crore Service Tax Evasion Charges

Infrastructure and engineering major Punj Lloyd has come under the scanner of the central excise department over alleged pending Service Tax liability of Rs 61 crore.

Punj Lloyd voluntarily deposited Rs 1.06 crore on the spot through challans when excise officials visited them during an investigation in the matter. They have also submitted post-dated cheques of Rs 10 crore as part of their pending Service Tax liability, official sources said.

A Punj Lloyd spokesperson, when contacted for their reaction, said in an emailed response that "routine general investigations" were being carried out against them by the Directorate General of Central Excise Intelligence (DGCEI).

"Neither has the DGCEI issued any show cause notice to the company. Routine general investigations, as they are done for several companies, are being carried out by them and Punj Lloyd is fully cooperating and submitting the required information," the spokesperson said in a statement.

The DGCEI has not found any shortfall in the deposit of Service Tax by Punj Lloyd Limited. "We have been paying Service Tax dues since April 2013. In fact, the last payment was made in January 2014," the company said.

Acting on information that the firm was collecting Service Tax but not depositing it with the exchequer, an investigation through summons proceedings was initiated against Punj Lloyd by DGCEI, the sources said.

They claimed to have found that Punj Lloyd, engaged in business of engineering and construction, was not filing ST-3, a mandatory form for filing Service Tax returns, since April last year.

After registration of preliminary enquiry, a team of DGCEI officials visited the firm's headquarters in Gurgaon.

The officials recorded the statement of Rajesh Goel, Assistant General Manager of the company, as part of their investigation. Goel admitted to pending tax liability of the company to be around Rs 61 crore before the tax officials, the sources said.

Goel has also undertaken to deposit the balance outstanding amount of the firm's tax dues by March 31, 2014, the sources said.

Actual quantification of alleged Service Tax evasion and further investigations are in progress, they said.

Meanwhile, the DGCEI have also sought relevant information from other financial intelligence agencies on Punj Lloyd, they said.

Service Tax has been a "focus area" for the Finance Ministry to increase its revenue from indirect taxes.

The DGCEI officials are taking strict action against all evaders after a first-of-its-kind amnesty scheme for Service Tax defaulters ended in December last year.

The Voluntary Compliance Encouragement Scheme (VCES), which was implemented from May 10 last year, was announced by Finance Minister P Chidambaram to allow a Service Tax defaulter to pay dues without any penalty or late payment charges.

Under the scheme, a person was to make a declaration to the designated authority on or before December 31, 2013.

Source:- economictimes.indiatimes.com

More Investments Needed In Farm Sector: Gulati

More investments, including private ones, are needed in the agriculture sector so as to achieve 5 per cent farm growth, Commission for Agricultural Costs and Prices (CACP) Chairman Ashok Gulati said today.

He stated this at a seminar on 'Accelerating Agricultural Growth-Role of Policy and Technology' at the Punjab Agricultural University here.

"We need to bring changes in farming to accelerate growth and reduce rural poverty," he added.At present, the agriculture growth rate is nearly 4 per cent and in 2013-14, it is likely to be 4.6 per cent, Gulati said.

Stating that farm technology alone could not do wonders, Gulati said high-value produce like fruits, vegetables, poultry and fish would govern the country's farm sector in future.

"In 2012-13, India exported 22 million tonnes (MT) of cereals and we are likely to export 18 MT of wheat, rice and maize in 2013-14," he said.

In 2007-08, when global food prices went up, India had banned the export of wheat and rice.During the period of five years from 2006-07 to 2011-12, food production increased by 42 MT. As the production was going up and export was banned, the surplus touched 80 MT in 2011-12, he said.

In September 2011, the central government opened up the export of wheat and rice.Stating that the country has witnessed cotton revolution in the past few years, Gulati said India is producing 36 million bales of cotton and exporting 10-13 million bales and has become the second largest exporter of the commodity.

Source:- business-standard.com

Sugar Producers Seek Import Protection

THE sugar industry’s application for protection from cheap imports is unlikely to hurt consumers and will safeguard an important and empowered industry, an analyst says.

In contrast, the poultry sector — which was recently granted protection from Brazilian imports but is now seeking similar buffers against European imports — has faced criticism that its push for help will weigh on consumers’ pockets.

The sugar industry is protected through a dollar-based reference price tariff system that is based on the long-term average world price of sugar. However, this tariff system comes into effect only when the world price drops below this reference price.

A variety of factors affects the tariff, but it is roughly the difference between the world price — which early yesterday was quoted just above 17c/lb — and the set reference price, which is currently 15c/lb. But a world price that is only slightly lower than the reference price means local producers do not benefit meaningfully from the tariff.

The South African Sugar Association has applied to the International Trade Administration Commission of South Africa (Itac) for a higher dollar-based reference price on imports in order to give teeth to the tariff. Investec Securities investment analyst Anthony Geard says the move against cheap imports, which are almost entirely from Brazil, "should be positive for the (local) sugar sector" without having a material effect on prices.

If the tariff protection is not implemented, "jobs could be at risk at black-owned millers and cane growers", given that the sector is a highly empowered one.

While sugar prices in the domestic market are well above those in the world market at the moment, Mr Geard says it seems sugar importers are absorbing most of the import margin, which means consumers have not benefited much from lower world prices. South African producers were dealing with surging Brazilian imports, which was likely to reduce their domestic sales.

However, while excess supply would need to be exported, world sugar prices are below the marginal cost of production because of "four consecutive years of global surpluses". This has been worsened by export subsidies, particularly in India.

The average selling price achieved by South African producers, including both domestic sales and exports, has reduced over the past two years as the mix has shifted towards lower-priced export sales. "At present, I judge that the South African industry — growers and millers — would be running at a meaningful loss at current world prices," Mr Geard says.

Furthermore, the application for tariff protection "is not unusual in the world of sugar", which is likely the most protected major soft commodity in the world. The expected new reference price of about 30c/lb "should extinguish imports completely", he says.

Itac has finalised its investigation of the sector’s application "and a final decision will be made by the minister of trade and industry in due course", Itac spokesman Thembinkosi Gamlashe says.

Illovo Sugar MD Gavin Dalgleish says the move to raise the dollar-based reference price on sugar imports is aimed at preventing independent traders from importing sugar that is being sold at prices "below the cost of production of even the most efficient producers on the world market". Illovo, a member of the South African Sugar Association, contributed to the application for a review of the existing tariff mechanism.

Mr Dalgleish says that 160,000 tonnes of sugar was imported into South Africa during the past two months of this year alone.

The domestic sugar market is about 1.6-million tonnes annually, with local producers exporting about 400,000 tonnes each year.

"The imports currently entering South Africa almost match its total exports — in effect forcing the industry to export its own sugar onto the low-priced world sugar market and in the process taking significant losses in revenue," Mr Dalgleish says.

He says the South African sugar industry is an important contributor to economic and development growth, with about 1-million people directly and indirectly dependent on the industry for their income.

Meanwhile, also on the hunt for import protection is the embattled poultry sector, which was granted import tariff hikes in September last year on imported chicken products. The hikes were aimed largely at curbing Brazilian imports, but as was widely expected, the industry has reported that imports have since shifted to European chicken products.

South Africa does not impose duties on members of the European Union because of a trade and co-operation agreement it has with the 28-member bloc.

The industry is now seeking antidumping duties on various European imports, but has come under fire for an expected material rise in chicken prices should it be granted further protection.

Source:- bdlive.co.za

When term 'manufacture' wasn't defined in Act, it included all processes generating new article with

IT : In absence of specific definition of term 'manufacture' in section 10B as well as in section 2(29BA) during year 2003-04, term 'manufacture' would include every process, which would ultimately result in production of new article having a different character

India-Us Relations Strain Against Trade Differences

US business groups are lobbying for strong action against India which they say is a serious violator of intellectual property rights.On top of the bitter diplomatic row over the arrest of an Indian diplomat last year it risks a further deterioration in bilateral ties.

Speakers: Shekhar Gupta editor-in-chief of The Indian Express newspaper; Dr Amitendu Palit, visiting senior research fellow, National University of Singapore

SNOWDON: Some US business groups are very unhappy with India.

Their anger is often directed at India's generic drug industry which provides affordable medicines outside of patents.

They say India is one of the worst offenders for pirated software. Its domestic content rules for the solar industry and its steel exports threaten US jobs.

US Manufacturers want India designated as a Priority Foreign Country and that could lead to trade sanctions.

Dr Amitendu Palit, visiting senior research fellow, at the National University of Singapore says India has been on the watch list for some time and wont be worried.

PALIT: In fact you would find not only India there but also China and a country like Thailand and several other countries.

SNOWDON: Shekhar Gupta editor-in-chief of The Indian Express newspaper says India's growing export clout is the reason for US disquiet.

GUPTA: Because when the relationship was much smaller these things did not matter that much. Or when the relationship was more onesided these things did not matter. But India is now a sizeable exporter of skilled services or of value added products so there are tensions.

SNOWDON: It's unlikely the issues of trade will be sorted out soon.

Amitendu Palit says India won't back down and disagreements will be a feature of the relationship.

PALIT: Some of these are going to be very difficult to wash under the carpet and I think the issues like intellectual property on which there have been long differences between India and the US is going to remain there for a considerable period of time.

SNOWDON: Even with the signing of the historic nuclear accord in 2006 US industry was unhappy over the restrictions against it.

Over several years the two trading partners have lodged 14 cases with the World Trade Organisation. They also don't agree on climate change.

But dire predictions that the important strategic partnership between Washington and New Delhi are shaky are probably exaggerated.

Amitendu Palit says the relationship will withstand the stresses.

PALIT: So when we look at the larger geopolitical spectrum I think both India and the US will obviously take note of the fact that this is a relationship that's important not only for the two of them but also for the greater stability of the region and the rest of the world. So to that extent they will obviously work on ensuring that their relationship does not under any circumstances gets to a point where it creates greater instability or brings in a sense of disharmony that kind of upsets the geopolitical equilibrium. But at the same time I think its pretty clear at least as far as India is concerned, there are certain areas where India is not willing to budge as easily as it might have done in the past.

SNOWDON: As to the latest trade dispute, and the possibility of India being listed as the worst of intellectual property offenders Shekhar Gupta thinks there's a lot of hot air around the issue.

GUPTA: I think some of what's happening in Washington is bullshit. It's bullshitting also for the sake of their own domestic industry, their pressure groups there. So I think this will be resolved through negotiation I think Indian companies are very strong now. They also have lobbying power in New Delhi, so this is lobbying power verses lobbying power.

Source:- radioaustralia.net.au

General Motors Bets Big On Exports From India

General Motors India, which has two plants with a combined capacity of 2.82 lakh units per annum, is betting big on export of cars from the country.

The company would start export of cars late this year. "Export out of India is an attractive proposition. India has a skilled workforce, strong supplier base and strong engineering skills," president and MD of GM India Lowell Paddock said.

"The countries earmarked for exports are yet to be firmed up," he told reporters here last night.Paddock said GM has a plant in South Korea, which functions as an export hub.So far, GM India had been selling cars to Nepal and Bangladesh in a limited way.

Besides exports, the company is also willing to have a strong domestic presence."We want to have a strong domestic market. To have that, there is a need to increase the level of localisation. As dependence on imports will make us vulnerable to foreign exchange fluctuations," Paddock said.

Amid downturn in the automotive sector, GM India's sales in 2013 showed a de-growth of 6 per cent at 86,000 units.Paddock said the cut in excise duty as announced in the interim budget would stimulate the industry.He said GM India had refreshed its entire portfolio last year with the launch of SAIL hatchback, SAIL sedan and Enjoy MPV.

Source:- economictimes.indiatimes.com

Gold Imports To Drop 35% This Fiscal

India’s gold imports this fiscal are likely to drop 35% from a year before to 550 tonne as restrictive measures by the government and the central bank choked supplies from overseas, All India Gems and Jewellery Trade Federation chairman Haresh Soni said on Wednesday.

The country has so far imported 515.65 tonnes of gold this fiscal, he said, of which 300 tonnes were purchased from overseas in just April and May. Concerned over the impact of high gold imports on CAD, the government raised the import duty on gold periodically to 10% from 4% in the beginning of last year and the central bank mandated that at least 20% of the imported gold be kept aside for re-exports, leading to a crash in purchases from overseas.

In value terms, bullion imports dropped almost 40% to roughly $27 billion during the April-January period of this fiscal, industry data showed.

However, the plunge in raw material imports drove down exports of gold jewellery, medallions and coins by a half to to $15.60 billion in the April-January period.

This has led to renewed demand by the industry to lower the import duty on gold to 2% from the current 10% and scrap the 80:20 rule imposed by the RBI, especially when the country's current account deficit is expected to drop by almost a half to $45 billion in 2013-14 from a record $88.2 billion a year before."Gold can't be treated as the only villain in the whole CAD saga, as there are other commodities and finished products, too, which contribute to the widening CAD. As many as six crore people are dependent on the jewellery-making business for a livelihood and putting their lives to risk is not a sensible decision," said Soni.

India, which was dethroned by China last year as the world's biggest bullion consumer, barely produces gold and depends on imports to cater to both domestic and export demand. It purchases gold from overseas and exports value-added products such as jewellery, medallions and coins.The industry executives said the government must clarify its stand on how much of imports it can allow while ensuring.

Source:- financialexpress.com

Indian Rupee Loses 4 Paise Against Us Dollar

Snapping three days of gains, the Indian rupee lost 4 paise to end the day at 61.98 against the dollar on fresh US dollar demand from importers, including oil firms.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 61.96 a dollar from previous close of 61.94.

It traded in a narrow range of 61.90 and 62.06 before concluding at 61.98, down 4 paise from its last close.

In the previous three days, the rupee had jumped 29 paise or 0.47 per cent.

"It was a mixed session for the rupee, as locally and globally there was absence of cues. Positive closing of the stock markets and weak dollar index is seen consistently supporting the rupee," said Abhishek Goenka, Founder & CEO of India Forex Advisors.

Month-end dollar demand from importers, including oil firms, however, was seen putting pressure on the Indian rupee, he added.

The US dollar index was up by a modest 0.04 per cent against its major global rivals.

Pramit Brahmbhatt, CEO, Alpari Financial Services, (India), said: "After strengthening for three consecutive days, today Indian rupee depreciated against the US currency on renewed dollar demand from importers and banks though the fall

was capped by the strong local equity markets."

The BSE Sensex today spurted by 134.52 points or 0.65 per cent. FIIs picked up shares worth Rs 423.41 crore yesterday, as per provisional data with stock exchanges.

Forward dollar premium softened on stray receipts from exporters. The benchmark six-month premium payable in July declined to 224.5-226.5 paise from 227-229 paise.

Far forward contracts maturing in January 2015 eased to 471-473 paise from 471.5-473.5 paise previously.

The RBI fixed the reference rate for dollar at 61.97 and for the euro at 85.14.

The Indian rupee fell against the pound to 103.37 from 103.30, while recovered to 85.14 per euro from 85.29. It also regained to 60.52 per 100 Japanese yen from 60.64.

Source:- financialexpress.com

Case remanded as comparables chosen by TPO were not appropriate due to functional differences and hi

IT/ILT : Where in course of in respect of transfer pricing proceedings of assessee-company engaged in providing software development services to its AE located abroad, TPO made certain adjustment to assessee's ALP, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference, high turnover and brand value, impugned adjustment was to be set aside and, matter was to be remanded back for disposal afresh

ST abatement won't be included in 'aggregate value' for small service provider's exemption

Service Tax : Since 'aggregate value' for purposes of Small Service Providers/Threshold Exemption does not include 'exempted' services and abatement is allowed vide 'exemption notifications', said abatement shall not, prima facie, form part of aggregate value under Small Service Providers/Threshold Exemption

SAT reduced penalty on appellant-co. as it furnished docs relating to private placements though bela

SEBI: Where appellant company furnished documents relating to issuance of debenture belatedly, since issue was to employees and their relatives/associates on private placement basis, penalty was to be restricted

Exp. held genuine by appellate authorities in absence of any adverse material; HC denies to interfer

IT : Where there was a concurrent finding of facts from Commissioner (Appeals) and Tribunal that payment regarding Transportation charges was genuine and revenue had no adverse material, there was no reason to interfere order of both appellate authorities

'Liquidated damages' are deductible in determining transaction value

Excise & Customs : "Liquidated damages" deducted by buyer as compensation for delay in supply of goods by assessee shall be allowed as deduction in determining transaction value even if they are termed as "penalty" in contract

Matter remanded as ITAT didn't deal with cases cited by assessee while confirming order of CIT(A)

IT : Where in course of appellate proceedings, Tribunal confirmed addition made by authorities below under section 68 without dealing with any case law cited by assessee in support of its case, said order of Tribunal was to be set aside and, matter was to be remanded back for disposal afresh

CLB directs respondent-co. to convene GM to consider notice of appellant proposing director's appoin

CL: Where respondent-company had failed to perform their obligation in considering notice issued under section 257 by applicant proposing appointment of director, respondent-company was to be directed to consider same by convening general meeting

Refund of excise duty couldn't be taxed under sec. 41(1) if it was never claimed as deduction in ear

IT : Since excise duty collected by assessee was neither offered as income nor claimed as deduction in earlier year, provision of section 41(1) was not applicable

Purchase tax isn't refundable unless doctrine of unjust enrichment is proved

CST/VAT : Refund of purchase tax cannot be granted if it results in unjust enrichment i.e., if tax paid forms part of final price and is passed on to purchaser, then assessee is not entitled to unjustly enrich himself by getting refund of such tax

HC asks for disposal afresh as ITAT overlooked the fact that order it relied upon was also remanded

IT: Where Tribunal relying upon its earlier order, allowed assessee's claim for depreciation on aircrafts, in view of fact that said earlier order was subject matter of appeal in which High Court had remanded proceedings back, impugned order of Tribunal was to be set aside

CLB bans audio or video recording of proceedings by parties

COMPANIES ACT, 1956/INDIAN ACTS & RULES : Company Law Board (Amendment) Regulations, 2014 - Insertion of Regulation 51

It's an obligation of company to file Form 32 on acceptance of resignation of a director

CL : Resignation of a director being accepted and acted upon, company should file statutory Form No. 32 showing his cessation as director from board of company

No concealment penalty if assessee offers to tax actual consideration instead of sec. 50C deemed con

IT : Where assessee had offered actual amount received on sale of property for taxation, revenue authorities were not justified in passing penalty order under section 271(1)(c) by adopting higher sale consideration under section 50C on basis of stamp duty valuation of said property

Employees health insurance services and fire insurance services at staff quarters are eligible for i

Cenvat Credit : Service tax paid on employee health insurance services and staff residential fire insurance services is eligible for input service credit

Exports subjected to minimum export price or export duty are to be considered for fixing FMS entitle

GST : Section 93 of The Finance Act, 1994 - Exemptions - Exemption to Services Provided to Exporters Against Debit to Focus Market Scheme Duty Credit Scrip (FMS Scrip) - Amendment in Notification No.6/2013-ST, Dated 18-4-2013

No concealment penalty for a disallowed claim if income of assessee was otherwise exempt from tax

IT : Where income to be assessed in hands of assessee was itself exempt, levy of penalty was not warranted

Dismissal of appeal be ITAT for non-prosecution of assessee shall be subject to revision under sec.

IT : Where Tribunal dismisses assessee's appeal for non-prosecution, it constitutes an error apparent on face of record which can be rectified under section 254(2), however, in such a situation, prescribed period of limitation to file an application seeking rectification of order within four years from date of passing order would apply

In case of stock transfer no penalty leviable under Rajasthan Sales Tax Act if form ST-18A was found

CST & VAT : There was no requirement of carrying declaration form No. ST-18A in case of stock transfer, branch transfer/depot transfer and SOS transfer; therefore, penalty levied under Rajasthan Sales Tax Act set aside

CBDT's order to admit a belated claim is an administrative order under sec. 119 which isn't appealab

IT: Order passed by Commissioner under section 119(2)(b) is an administrative order against which appeal before Tribunal under section 253 will not be maintainable

India Essar's Oil Imports From Iran Jump Sharply

Essar Oil, a key buyer of Iranian oil, in January sharply raised imports from the Islamic state and also became the first Indian refiner to ship in the Brazilian heavy grade Polvo, tanker arrival data showed.

India's oil imports from Iran more than doubled in January from a month earlier after sanctions on Tehran were eased due to an interim deal on its nuclear programme.

Essar received 141,900 barrels per day (bpd) of oil from Iran last month, up from 54,200 bpd in December, according to the data obtained by Reuters. Shipments last month were about 31 percent higher than a year ago.

Essar officials declined to comment.

During the first 10 months of the fiscal year ending March 31, Essar imported 91,500 bpd oil, a decline of about 6 percent from the same period the year before, the data showed.

Essar purchased Polvo from Brazil as it has been testing new heavy grades to improve refining margins.

In the December quarter, Essar met as much as 98 percent of its oil needs through heavy and ultra heavy grades, it said in a statement earlier this month.

Essar's total crude imports in January rose 81.5 percent from a low base in December, when it drew from inventory and cut purchases.Following are details of Essar's crude and condensate imports in January, according to the data. Volumes are in 1,000 bpd.

Source:- uk.reuters.com

Rice Basmati Declines On Subdued Demand

Rice basmati prices declined by Rs 100 per quintal on the wholesale grains market today owing to subdued demand against adequate supplies.

However, other grains after moving in a narrow range in limited deals and settled around previous levels.

Traders said subdued demand against adequate supplies from producing regions mainly kept pressure on rice basmati.

In the national capital, rice basmati common and Pusa-1121 variety eased by Rs 100 each to Rs 8,200-8,900 and Rs 7,400-9,000 per quintal respectively.

The following were today's quotations per quintal:

Wheat MP (deshi) 2,070-2,270, Wheat dara (for mills) 1,625-1,630, Chakki atta (delivery) 1,630-1,635 Atta Rajdhani (10 kg) 220, Shakti bhog (10 kg) 220, Roller flour mill 870-890 (50 kg), Maida 950-970 (50 kg) and Sooji 990-1,020 (50kg).

Basmati rice (Lal Quila) 10,400, Shri Lal Mahal 10,000, Super Basmati Rice, 9,500, Basmati common new 8,200-8,900, Rice Pusa-(1121) new 7,400-9,000, Permal raw 2,050-2,150, Permal wand 2,200-2,225, Sela 2,800-2,825 and Rice IR-8- 1,825-1,850, Bajra 1,245-1,250, Jowar yellow 1,470-1,500, white 2,275-2,300, Maize 1,400-1,405, Barley 1,395-1,400, Rajasthan 1,080-1,090.

Source:- business-standard.com

Interest on refund is allowable on all tax payments and not only in case of tax paid on demand

IT : Interest on refund is allowable on all kinds of tax payment; it is not confined only to tax paid on demand

Proposal Would Expand Eligibility For Service Tax Credit

Organizations that provide technical education services would be eligible for $4.1M pool.There was no dissent voiced Tuesday for a legislative proposal to extend eligibility for a community service tax credit program to organizations that provide youth technical education training and apprenticeships.

State law currently allows individuals and businesses to claim a tax credit for donating to approved community service non-profits. Senate Bill 295 would add technical education organizations to that list.

“In my mind one of the most important things we can do for our young people is get them technical training and teach them the value of entrepreneurship," said Sen. Les Donovan, R-Wichita, chairman of the Senate Assessment and Taxation Committee.

Donovan said the bill has no cost to the state because the community service tax credit pool is capped at $4.13 million.

He asked Chris Harris from the Kansas Department of Commerce how much in demand that money is and Harris said the department receives about $16 million worth of applications in recent years.

Donovan said the technical education groups carved in would have to compete with those already eligible for the dollars.“You just have to kind of get in line and first-come, first-serve is the way it works,” Donovan said.

Harris said his department is for the bill, adding that he believes the projects it has funded such as improvements to critical access hospitals and shelters, have returned $1.44 to their communities for every $1 spent.“The tax credit has been very effective for non-profits across the state,” Harris said.

Source:- cjonline.com

IT : Interest on refund is allowable on all kinds of tax payment; it is not confined only to tax pai

IT : Interest on refund is allowable on all kinds of tax payment; it is not confined only to tax paid on demand

Jsw Increases Steel Prices By Rs 500 A Tonne

JSW Steel, India's biggest private sector steel producer, has decided to increase steel rates yet again.This time the quantum of increase has been kept between Rs 500 and Rs 750 per tonne for both flat and long products and will be effective from March 1. This is in contrast to the first two hikes of Rs 1,500 per tonne in January and Rs 1,250 per tonne in February. Other companies too are expected to follow suit once JSW increases the price.

“If we see the April-May 2012 rates, the price of flat steel today is at that level but the price of long steel is still less by Rs 3,500 per tonne. However, in this period, the input costs have gone up and there is a scope to increase the prices,” said JSW Steel marketing and commercial director Jayant Acharya.

He said in spite of increase in prices by almost Rs 3,000 per tonne since January, India is still lagging its peers in the international market by almost $200 per tonne, which also justifies a hike in the price. The import equivalent of Europe's hot rolled coil is at $625 per tonne and the United States is over $700 per tonne. In China, the important equivalent stands at around $570 per tonne.

However, analysts term it as a “market testing” tactic of JSW as the year is coming to a close and all steel companies would like to achieve their targets. “Considering current demand scenario in India and the emerging trends of a downward correction in international steel prices, any price hike in India will not be sustainable,” said an analyst with a domestic brokerage.

He said JSW would “test the waters” to see if a price hike is possible as internationally prices are still high compared with the domestic market, although they are expected to come down slowly.

“Steel mills are optimistic of another round of price increases in March 2014, though we are not sure if such increases will be accepted by the markets. We expect softening in domestic steel prices in the course of next three months,” said analysts with domestic.

Source:- financialexpress.com

ITAT sets aside order of TPO as it made huge additions in rectification proceedings without assignin

IT/ILT : Where in transfer pricing proceedings, TPO computed working capital adjustment by taking figure of trade receivables at 'nil' which was subsequently enhanced to a very high positive figure in rectification proceedings without assigning any reason, said rectification order of TPO was to be set aside and matter was to be remanded back for disposal afresh

Depart. to consider period-wise price indicated in contract to fix valuation of goods under Excise,

Excise & Customs : Where a single contract fixes separate prices for separate time-periods, those separate prices would be taken into account for valuation purposes during those separate time-periods

Allotment of fresh shares to petitioner in breach of family settlement order was void

CL: Where consent order passed in terms of memorandum of family settlement contemplated achieving object of equality of shares to each party by inter se transfer of shares, fresh allotment of equity shares to themselves by petitioners in board meeting, being in blatant violation of MFS was illegal, and did not give to petitioners status of a member of company competent to maintain petition under section 397 and, therefore, proper remedy available to petitioner would be to seek enforcement of con

Either annual or quarterly turnover is relevant for distribution of credit by ISD on pro-rata basis

GST : Cenvat Credit (Third Amendment) Rules, 2014 - Amendment in Rule 7

Gold Price Holds Near Four-Month High On China Growth, Ukraine Worries

Gold ticked lower on Tuesday but held near its strongest level in four months, underpinned by concerns about economic growth in China and nervousness over Ukraine after acting President Oleksander Turchinov warned that his country was close to default.

An increase in holdings on bullion-backed exchange-traded funds also could also reflect renewed interest from investors, although bullion will have to crack key technical resistance levels before it can move higher.

Gold eased 0.28 percent to USD 1,332.80 an ounce by 0322 GMT after rising as high as USD 1,338.60 on Monday, its strongest since late October. Gold has risen more than 10 percent this year.

"I think we are now pushing up against some pretty key technical barriers around USD 1,340 and up then around USD 1,350 as well. I think it`s going to be hard to break given Chinese exchange premiums are very low now," said Victor Thianpiriya, an analyst with ANZ in Singapore.

"Having said that, if we get continued ructions out of Ukraine, I think that`s one of the key things that can support gold and the market may continue to rally on safe-haven demand."

Premiums for 99.99 percent purity gold on the Shanghai Gold Exchange over cash gold was around 50 U.S. cents a ounce to USD 1 on Tuesday, down from a high around USD 11 last week.

U.S. gold was USD 1,333.00 an ounce, down 0.37 percent. It jumped to a four-month high of USD 1,339.20 on Monday.

Ukraine`s fugitive president was indicted for "mass murder" on Monday over the shooting of demonstrators, as new leaders in Kiev sought urgent Western aid to make up for a loss of funding from Russia, which is angry at the overthrow of its ally.

Gold is often seen as a safe haven in times of political and economic turmoil

SPDR Gold Trust, the world`s largest gold-backed exchange-traded fund, said its holdings rose 0.41 percent to 801.61 tonnes on Monday from 798.31 tonnes on Friday.

In the physical sector, Indian and Indonesian buyers purchased small amounts of gold bars, keeping premiums against the spot London prices steady at USD 1.20 to USD 1.50 an ounce in Singapore.

Gold demand in India is expected to be robust in 2014 and is likely to lead to increased smuggling so long as curbs on bullion imports remain, the World Gold Council.

"We are seeing some buying, and there are purchases from India. Other clients are still buying some quantity, about 20 to 30 kilos each time," said a dealer in Singapore. "Thailand is quiet because of the political situation there. The market has died down a lot."

Thai Prime Minister Yingluck Shinawatra, the target of anti-government protests in Bangkok, has been staying outside the capital and on Monday ruled out resigning despite a series of deadly attacks heaping pressure on her administration.

Source:- zeenews.india.com

Ndia Essar's Oil Imports From Iran Jump Sharply

Essar Oil, a key buyer of Iranian oil, in January sharply raised imports from the Islamic state and also became the first Indian refiner to ship in the Brazilian heavy grade Polvo, tanker arrival data showed.

India's oil imports from Iran more than doubled in January from a month earlier after sanctions on Tehran were eased due to an interim deal on its nuclear programme.

Essar received 141,900 barrels per day (bpd) of oil from Iran last month, up from 54,200 bpd in December, according to the data obtained by Reuters. Shipments last month were about 31 percent higher than a year ago.

Essar officials declined to comment.

During the first 10 months of the fiscal year ending March 31, Essar imported 91,500 bpd oil, a decline of about 6 percent from the same period the year before, the data showed.

Essar purchased Polvo from Brazil as it has been testing new heavy grades to improve refining margins.

In the December quarter, Essar met as much as 98 percent of its oil needs through heavy and ultra heavy grades, it said in a statement earlier this month.

Essar's total crude imports in January rose 81.5 percent from a low base in December, when it drew from inventory and cut purchases.Following are details of Essar's crude and condensate imports in January, according to the data. Volumes are in 1,000 bpd.

Source:- uk.reuters.com

Pakistan In Talks With Its Industry To Allow Import Of All Goods From India

Pakistan’s Commerce Ministry is trying to persuade the country’s four key sectors — automobiles, pharmaceuticals, agriculture and polyester — to support its proposal to remove all existing bans on Indian products.

Extending India non-discriminatory market access, which basically means allowing all Indian items to be sold in Pakistan, is a key condition that New Delhi has laid down before Islamabad for re-starting the bilateral trade dialogue that has been stalled for the past year. Pakistan disallows 1,209 items from India.

“We are in talks with representatives of the automobiles, pharmaceuticals, polyester and agriculture sectors to convince them that allowing imports of these items from India will not necessarily result in loss of business for them. We could put in place a number of safeguards to prevent that,” a senior official from Pakistan’s Commerce Ministry told Business Line.

The number of Indian goods banned by Pakistan was much higher, at around 6,000, when the two countries started the two-way trade liberalisation talks in February 2012. Since then, Pakistan has increased the number of permitted items around three-fold.

However, a number of Indian items, mostly from the agriculture, automobile and auto parts, pharmaceutical and chemicals and the polyester sectors, are still not allowed access into Pakistani markets despite the country promising to do away with such bans by December 31, 2013. It had also promised that it would allow trade of all products through the land route, instead of the expensive sea-route.

The Indian Commerce Ministry, in a letter to the Pakistani Government last month, said it would hold further talks with the country only after it gives strict timelines for extending it non-discriminatory market access (by removing import bans) and allowing trade through the land route.

India’s automobile industry, especially the two-wheeler segment, pharmaceuticals producers and polyester makers are likely to find a ready market in Pakistan for their goods once the import restrictions go, as they are more competitive in a number of categories. India has no ban on Pakistani products and allows all imports.

The Pakistani industry, too, stands to gain substantially from the move, as it would then prompt India to bring down duties on a large number of Pakistani goods, including all kinds of textiles and garments, in line with what it offers to other South Asian countries. India-Pakistan bilateral trade is at present just above $3 billion, but, according to industry estimates, has the potential to touch $20 billion if normal relations are established. Pakistani Trade Minister Khurram Dastgir Khan recently put the blame on the two Foreign Ministries for the stalemate in talks. The talks got suspended last year following violence at the Line of Control.

Source:- thehindubusinessline.com

Mines Ministry Examining 5 Per Cent Export Duty On Iron Ore Pellets

The Mines Ministry is examining the recently levied 5 per cent export duty on iron ore pellets following representations from various manufacturers opposing its imposition, and would write to the Finance Ministry on the matter soon.

The Mines Ministry was not consulted by the Central Board of Excise and Customs (CBEC) or by the Finance Ministry when the duty was imposed on January 27, said a senior official. He said the Mines Ministry has received several representations opposing imposition of the duty.

When asked about this, Mines Minister Dinsha Patel said: "We will give whatever representation is required to the Finance and Commerce Ministries. This is an issue concerned with the Finance Ministry, they have done it as per their own way. We will soon give our own report on it."

Speaking to reporters after presenting National Geo- science Awards-2012, he also said that domestic pellet manufacturers need to be encouraged as it will help in removing the scarcity of iron ore.

Pellets are value-added products of leftover material or low grade iron ore and are used in steel-making. In recent times, they have emerged as a major product for iron and steel industry in the country due to scarcity of ore in some regions following mining bans in Karnataka and Goa.

Opposing the duty, various pellet manufacturers and their industry associations have given representation to the government, crying foul and terming the move "retrograde". They had said in past that the move would lead to closure of many units and the country will be deprived of valuable foreign exchange.

According to industry estimates, India's pellet production capacity is currently at about 60 million tonne and has risen manifold since 2010-11 as government then encouraged value addition of iron ore fines.

Opposing the imposition of duty, Pellet Manufacturers Association of India (PMAI) had said that the decision was based on "erroneous facts" and of the total pellet production, current exports is over 1 MT only and accounts for 1.2 per cent of the installed capacity.

Moreover, the current capacity utilisation of pellet industry is less than 50 per cent owing to lower off-take by the steel industry, the PMAI had said. Export of raw iron ore or fines and lumps already attract an export duty of 30 per cent.

Source:- economictimes.indiatimes.com

Failure to initiate scrutiny assessment won't stop AO from re-assessment if sec. 147 ingredients are

IT: So long as ingredients of section 147 are fulfilled, Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render Assessing Officer powerless to initiate reassessment proceedings even when intimation under section 143(1) has been issued

Extended period of 6 years not available for reassessment unless AO gets info to show escaped income

IT : Extended time limit of 6 years under section 149(1)(b) requires data for prima facie computation of income escaping assessment

No invocation of extended period if exemption was availed due to general practice prevailing in mark

Central Excise: Where there was a trade practice packing materials bearing brand name of another person were eligible for SSI-exemption, same belief could not have entertained bona fide in respect of printed catch covers also and, hence, invocation of extended period of limitation was incorrect

No question of law was involved if ITAT ruled that sum received by assessee had nexus with family se

IT: Where in course of appellate proceedings, Tribunal recorded a finding that there was no transfer of assets and amount received by assessee was a part of family arrangement which did not give rise to liability of capital gain tax, said finding being a finding of fact, no substantial question of law arose therefrom

Prosecution on dishonour of cheque can't be extended to all director disregarding their duty and fun

Banking Laws : In prosecution under section 138 of NI Act, vicarious criminal liability cannot be extended to all directors of company irrespective of their duty and function in company

Purchases by account-payee cheque held sufficient to allow claim even if recipient couldn't be produ

IT-I : Where assessee, a builder, purchased cement from one party by account payee cheques at rates which were reasonable as compared to rates paid to other parties, assessee's claim for deduction in respect of said expenses was to be allowed under section 37(1)

Extended period was invocable only if misstatement was wilful

Service Tax : When assessee avails certain benefits/Cenvat credit claiming to be covered by statute and when it is found that such benefits are not available, surely assessee can be stated to have made misstatement, but, for invocation of extened period of limitation and levy of penalty, such misstatement must be shown to be wilful

Seized amount already disclosed in sec. 139 return can't be added back to income during block assess

IT : Where prior to initiation of block assessment proceedings, assessee filed his return under section 139 wherein amount seized from him had already been disclosed, in view of provisions of clause (b) of sub-section (1) of section 158BB, amount so disclosed could not be added to assesse's undisclosed income while completing block assessment

Refund of duty under compounded levy scheme was not hit by doctrine of unjust enrichment

Central Excise : Provisions of section 11B are not applicable for refund of excess duty paid under compounded levy scheme and, therefore, said refund cannot be denied on ground of principle of unjust enrichment

Deeming fiction of sec. 50 can't be extended further to disallow exemptions available for long-term

IT : Deeming fiction of a long-term capital gain to be treated as short-term capital gain is restricted only to section 50 and it would have no application to other provisions such as section 54EC

Delay in filing of appeal under FEMA to be condoned in absence of malafide intention of appellants

FEMA : Where delay in filing appeal was not deliberate and mala fide, delay was to be condoned

Assessment of a person other than searched person can only be made under section 158BD and not under

IT : In pursuance of search proceedings initiated against a company in which assessee was an employee, block assessment proceedings, if any, were to be initiated against assessee, said proceedings could be initiated only under section 158BD and not under section 158BC

No question of law involved in whether sum incurred on water proofing and pest control is current re

IT : Where Tribunal having noted that hotel building was severely affected by heavy damage and it also needed pest control, water proofing etc., allowed assessee's claim for repairs, said finding being a finding of fact, no substantial question of law arose thereupon

Excise, Service Tax Collections Cross Rs 10K Cr In State

Central Excise (Ahmedabad zone) has collected revenue more than Rs 10,000 crore in the period April 2013 to January 2014. The zone covers north, central and Saurashtra regions of Gujarat.

The zone collected revenue of Rs 6,559 crore in excise duty and Rs 3,941 crore in service tax during the current fiscal year. In 2012-13, the excise duty collections were Rs 8,535.84 crore while the service tax collections stood at Rs 4,691.80 crore.

For the current fiscal ending March 2014, the central excise department has kept the target of Rs 9,400 crore for excise duty collection and Rs 6,386 crore for service tax.

The department celebrated 'Central Excise Day' on Monday with a cultural programme at Tagore Hall. IIM-A director Ashish Nanda was the chief guest on the occasion. Chief commissioner, central excise, Ahmedabad zone, R K Singh said that the department had to find deviant behaviour in trade without being intrusive.

Singh also said that the department is facing staff shortage and is in the process of cadre restructuring. Top performing officers from different zones of the department were awarded certificates of appreciation by Nanda and Singh during the ceremony.

Source:- indiatimes.com

No debate over probate granted by Court for transmission of shares jointly held under sec. 59 of Com

CL : No debate over Probate granted by court for transmission of jointly held shares u/s 59 of the Companies Act, 2013

HC sets aside best judgment assessment as it was based on assumption of sales made during a particul

CST & VAT : Where best judgment assessment was based on interpolations/ assumptions as per sales made during a particular period of a particular day, such assessment was liable to be set aside

Exp. and depreciation claim pertaining to inoperative unit held allowable by Kolkata ITAT

IT : Where director of assessee-company on an invitation had gone on foreign tour in capacity of President of India Chemical Council and he also explored prospects of export of assessee's products abroad, expenditure incurred on this tour was allowable as business expenditure

Coal Stocks At Indian Ports Rise 5% On Week To 7.9 Mil Mt: Interocean

Stocks of imported coal at 16 major ports in India rose 5% week on week to 7.9 million mt as of February 21, according to data released late Friday by Indian shipbroker Interocean Group.

Of the total, thermal coal accounted for 5 million mt, down 7% week on week, while coking coal stocks jumped 38% to 2.9 million mt, the data showed.

Paradip port on India's east coast had the highest level of coal stocks as of February 21, at around 1.6 million mt, up 6.6% from the previous week, the data showed.

Krishnapatnam port, also on the east coast, had the highest level of coking coal stocks, at 1.1 million mt, up from 241,218 mt a week ago.

The 16 ports surveyed by Interocean were Mangalore, Tuticorin, Kakinada, Paradip, Kandla, Gangavaram, Vizag, Krishnapatnam, Muldwarka, Bhavnagar, Pipavav, Goa, Dahej, Magdalla, Hazira and Haldia.

Source:- platts.com

Why Corn Rallied Last Week

Corn (industrial maize) was one of the top five gainers last week, rising 4.26 per cent. Though the coarse grain has gained 7.43 in the past month, it has shed 37 per cent in the last 12 months.

The decline to multi-year lows since June last year has been mainly on the heels of estimates of a record global production during the current season to August.

From trying to keep its head above $4 a bushel during November-December, corn futures are currently steady above $4.50. Prices had run to a record $8.49 a year-and-a-half ago. On Monday, corn futures maturing for delivery on the Chicago Board of Trade pared some of their gains to rule at $4.55.

According to the US Department of Agriculture , global production is estimated at 966 million tonnes (mt) against 862 mt last season. Though consumption is seen rising by 0.8 mt to a record 943 mt, carryover stocks will be higher than last year at 157 mt (133 mt).

Why should prices rally then? There are a couple of reasons for corn’s current rally that is seen unsustainable. Corn prices have been rising in the last few weeks primarily due to cold weather affecting shipments in the US. Most of corn for exports is moved through barges on river to the nearest port. The weather has affected the movement. On the other hand, once weather clears up rivers will be flooded again posing a hurdle in transportation. Corn production in Argentina, a major exporter, is projected lower this year at 23.5 mt against 27 mt last year. And corn yield in Brazil is seen hit by the drought prevailing there. The unrest in Ukraine leading to fears of delay in shipments has also aided the bullish trend.

Changing preferences

Besides these developments, there are other reasons too. Some countries have found the lower corn price a boon to change their feed preferences. For example, Europe has begun exporting more wheat and to meet feed demand, it is importing more corn.

South Korea is buying more corn and less wheat for its feed requirement. Mexico, Vietnam, Saudi Arabica and Chile all have gone for higher imports of corn in view of lower prices. Though fund managers, hedge funds and investors were expecting fears of lower plantings to push up corn prices, things are not panning out exactly the same way.

USDA projections

During the weekend, the USDA pegged corn plantings at 92 million acres, lower than initial market expectations of 93.5 million acres. But the lower-than-expected projection of plantings has been offset by estimates of a higher yield. Besides, 92 million acres is the fourth largest in the last six decades.

Corn yields this year may increase 4.1 per cent to help production rise to a record 13.985 billion bushels. That is likely to leave a carryover stock of 2.111 billion bushels (each of 25.4 kg) in the US at the end of the next season (August 31, 2015).

This means, the average price that a corn farmer will earn will drop to $3.90 a bushel or $162.5 a tonne against $4.50 ($177a tonne) projected for this year, according to the USDA. This obviously means that corn’s rally is temporary and prices could come under pressure again.

Indian scenario

In the Indian scenario, production of maize is estimated at 21.06 mt this season to June against 21.76 mt last season. Exports are expected to be lower at three mt, though domestic use may increase on higher demand from the poultry sector. Prices are likely to rule below the minimum support level of ?1,310 a quintal.

On the National Commodities and Derivatives Exchange, maize May contracts were down at ?1,159 a quintal. Spot prices at Davengere, an important growing centre, are ruling at ?1,260 a quintal.

Source:- thehindubusinessline.com

India’S Rice, Wheat Exports To Reach 18M Tonnes

India is likely to export about 18 million tonnes of rice and wheat in 2013/14, the government’s adviser on farm prices said, as the world’s second-biggest producer of these grains looks for ways to handle another record crop.

Ashok Gulati also suggested India should release 15-20m tonnes of the grains for open market sales to cut massive mounds of stocks and help ease food inflation.

India, the world’s biggest rice and wheat producer after China, exported 22m tonnes of the grains in the last fiscal year to March 31, 2013 after New Delhi lifted a four-year-old ban on overseas shipments of the staples in late 2011.

“Exports of 2012/13 and likely exports this year mean 40m tonnes of shipments. You look at whatever historical data you have, India has never ever done that,” said Gulati, chairman of the Commission on Agricultural Costs and Prices.

Gulati has advocated regular exports of rice and wheat from India. Rising rice exports helped India replace Thailand as the world’s top rice exporter and wheat shipments picked up at the expense of rival suppliers Russia and Ukraine.

Unlike wheat, India does not export rice from government warehouses but shipments totalled about 10m tonnes in 2012/13 and Gulati said they may be 11m tonnes this year.

Global wheat prices fell 25.6 per cent to $6.05 a bushel in 2013 due to oversupply, with benchmark Chicago futures still hovering around that level.

Global rice supplies are seeing a sharp increase as the embattled government of Thailand rushes to liquidate its stockpiles in order to pay farmers and avoid further protests.

Benchmark Thai rice prices fell as much as 15pc last week.

Despite its export push, India sits on huge stocks of grains, thanks to bumper harvests since 2007. It took steps to boost production after unfavourable weather conditions hit the2006 wheat harvest, forcing India to import large quantities from Australia at sky-high prices.

Stocks at government warehouses are still 2.25 times more than targets and lack of storage means much rots away even though India tries to provide cheap food to about 800m.

“We have been recommending to the government to immediately liquidate 15-20m tonnes of rice and wheat. Holding on to such high stocks is unnecessary,” said Gulati, who is about to leave office after a nearly three-year term as the adviser.

The government buys rice and wheat from local farmers at a fixed price which is raised every year to encourage production, build stocks to supply subsidised food and meet any emergency needs such as a sudden spike in prices.

Hefty production and higher purchases by the government inflate the subsidy bill, which the government has pegged at1.15 trillion rupees ($18.53 billion). Food Minister K.V.

Thomas has said the subsidy could touch 1.3tr rupees, a major worry for the government as it tries to rein in public finances.

Stocks are going to swell further as India’s harvest from the current crop year to June 2014 is forecast to be a record 263.2m tonnes of grains.

Despite rising production, local prices of grains have jumped because government purchases leave only a small surplus in the market.

Domestic prices of rice and wheat combined rose 11.42pc in January from a year ago, helping to push up food inflation to 9.90pc, government data showed.

Source:- dawn.com

Decommoditisation Of Steel To Underpin Success

The Indian steel market cannot but remain flat, as growth continues to elude the commodity's principal consumption points such as construction, automobiles and machinery-building. Braving resistance from buyers, steel makers raised prices by Rs 1,000-1,200 a tonne in the past three months, across long and flat products, to defray cost rises.

In the current environment, resistance to price revision is understandable. In the first three quarters of this financial year, demand for steel increased a piffling 0.5 per cent to 53.789 million tonnes (mt). Where will steel prices stand in the coming months? Steel Authority of India Ltd Chairman Chandra Shekhar Verma says, "Prices appear to have stabilised at current levels. Customarily, as the country goes into an election mode, it sees a slowdown in government sector spending. Delays in the launch of infrastructure projects and the general lull in investment should be over once a new government is in place in a few months. At this stage, I would venture to say the worst appears to be over for the steel sector."

The economy's growth, as well as raw material prices, is the principal determinant of steel prices. Globally, high idle capacity is not allowing steelmakers to post prices that give them decent margins.

Through the past few years, leading steelmakers, including Tata Steel, SAIL and JSW, are investing heavily to manufacture auto-grade flat and long steel, in an endorsement of global belief that India and China are the last two bastions of the automobile sector's growth. Wasn't that belief somewhat weakened in the wake of sales in Indian falling 6.7 per cent to 1.9 million cars in 2012-13, and 5.2 per cent to 1.45 million units between April and January 2013-14? In China, where the economy is slowing and anti-pollution and austerity campaigns gaining ground, deliveries of passenger vehicles are estimated to rise 10 per cent this year, against 14 per cent in 2013. An official of the Society of Indian Automobile Manufacturers says, "We have to wait for a new government before any demand revival."

Verma says the decelerating car sales are a "blip. Lowering of excise duty on cars of all sizes and SUVs (sports utility vehicles) in the interim Budget is what the automobile industry needed for demand improvement. Similarly, duty relief will give a push to sales of white goods. All this should result in automobile and white goods manufacturers requisitioning larger volumes of steel. Hopefully, the new government will stay the course laid down in the interim Budget".

In recent periods, large investments in flat steel products, particularly Tata Steel's investment in a three-mt project at Jamshedpur, will be justified once demand in the automobile and white goods market rebounds. But how did companies such as Tata Steel (for its Indian operations) and SAIL manage to record good results in the past two consecutive quarters of 2013-14, overcoming the challenges of an extended heavy monsoon and weak economic conditions? In fact, their working has been ahead of the median production and profit forecasts of sector experts. Incidentally, both the groups are engaged in ramping up capacity. They are, therefore, under increasing pressure to push more material into the market, amid a subdued demand environment.

"Despite a flat market, SAIL deliveries of finished steel rose seven per cent to 2.94 mt in the December quarter on a year-on- year basis. Production of saleable steel rose four per cent to 3.17 mt, partly aided by new capacity progressively coming on stream from our simultaneous modernisation and expansion programme. Defying market blues, SAIL recorded impressive growth in turnover and profit, thanks to the best quarterly production of 1.35 mt of value-added steel," says Verma. In an oversupplied market, the success of a producer will be underpinned by "decommoditisation of steel and branding of products".

At the same time, capacity expansion should be seen as an opportunity to induct new technologies, allowing production in an energy-efficient, environment-friendly and cost-efficient manner. This is being demonstrated at Tata Steel's Jamshedpur complex, where new flat steel capacity of three mt, based on an integrated thin slab caster and a rolling mill using compact strip processing technology, was put to use last year. The phase-wise commissioning of flat capacity at the new mill will boost Tata Steel's turnover and profits quarter-on-quarter.

Verma claims for "SAIL, the best will start happening in the next two-three years. That is the time our Rs 70,000-crore investment in expansion and modernisation will fully mature". What holds good for SAIL will also be the case with Tata Steel, which will start producing steel at its greenfield plant at Kalinganagar in Odisha in the second half of 2014-15. The three-mt first phase of the six-mt plant will further reinforce Tata Steel's position in the flat steel market by "augmenting the product range that will take care of changing customer needs". Unlike Tata Steel, which must acquire land to build new steel plants, SAIL has about 21,000 acres of surplus land at its five integrated mill sites for an additional 26 mt of hot metal in the next round of its $26-billion expansion.

Source:- business-standard.com

Cotton Prices Under Pressure

Cotton prices came under pressure on Monday where buyers were conspicuous by their absence and underlying sentiment also remained easy.

The dwindling demand for cotton yarn in domestic market is causing cash flow problem for entire textile industry and it was also adversely affecting exports, brokers said.

They said the market is lacking trading interest as spinners were generally reluctant to enter into big deals. The shortage of quality lint is yet another factor which is restricting trading activity, they added.

Trade circles said that India is giving 5 per cent rebate on cotton yarn and fabric exports to Pakistan but has imposed 26 per cent duty on imports from Pakistan. This is encouraging dumping of both the commodities from Indian exporters.

The much-expected high demand for cotton yarn from China also could not materialise and spinners are presently faced with high inventory problem, brokers maintained. Besides, very little cotton stocks are left in the country as the current season is near fag end.

The Karachi Cotton Association (KCA) reduced its spot rates by Rs50 to Rs6,900 per maund and trading activity on ready counter was extremely slow.

The following deals were reported to have transpired on ready counter: 200 bales, station Bahawalnagar, at Rs6,875; 400 bales, Bahawalnagar, at Rs6,900, 1,500 bales, Haroonabad, at Rs6,900 and 1,500 bales, Faqirwali, at Rs6,900.

Source:- dawn.com

Sum paid on production of TV serial would attract TDS under sec. 194C instead of under sec. 194J

IT : Provisions of section 194C which specifically cover activity of production of television serial programmes will prevail over section 194J which is general in nature

India's Gold Imports May Bounce Back To 1,000 Tons Level This Year: Wgc

Former top gold importing nation India's yellow metal imports may bounce back to 1,000 ton level this year as demand remains firm despite an official crackdown , as per World Gold Council.

According to WGC, for the first time India lost its tag of the world's largest gold consumer to China, which lapped up 1,065.8 tons of the precious metal in 2013. India's demand came down to 974.8 tonnes following wide- scale curbs imposed by the government to tame hunger for the precious metal.

After a drop last year, India's gold demand is expected to remain in the level of 900-1,000 tons in 2014, said Somasundaram PR, Managing Director (India) at World Gold Council, via FE.

He, however, didn't offer any precise forecast on imports in 2014, saying that official import data don't factor in supplies through illegal channel and, therefore, don't reflect the correct picture. But analysts say imports in this calendar year could hit at least 900 ton in 2014, up 9% from last year.

Source:- metal.com

Cbec To Fill Up Vacancies Through Promotions By June

The Central Board of Excise and Customs (CBEC) aims to fill up vacancies through promotions by mid-2014 as well as expedite the process of direct recruitment.

This is a part of its cadre restructuring programme, as approved by the Cabinet in December, which envisages creation of 18,067 additional posts to be filled up through internal promotions and direct recruitment.

CBEC Chairperson JM Shanti Sundharam said the board had shortened the time line for internal promotions. It is now expected that all six Departmental Promotion Committees (DPC) will complete their exercise by June 30, she said while addressing Central Excise Day and Investiture Ceremony here on Monday. Under the proposal, 989 additional posts will be for Group ‘A’ officials, such as Chief Commissioner, Commissioner and Assistant Commissioners. The remaining will be for Group B, C and the other category consisting of superintendents, inspectors, havaldars and field staffs. Currently, the sanctioned strength of CBEC is 66,808. After restructuring, it will reach 84,875.

It has also been decided to create 2,118 temporary posts for five years. This will enable superintendent-level personnel to get promoted to Group A as assistant commissioner, which will help remove stagnation at this rank. Creation of additional posts will involve an expenditure of approximately ?774 crore, and will help collect around ?68,000 crore annually.

Tax mop-up

Finance Secretary (who is also Revenue Secretary) Sumit Bose said that indirect tax collection in December and January showed an upsurge. Indirect taxes include customs duty, excise duty and service tax.

“I am happy to report that December and January tax collections show a very positive trend; we have overcome the negative flows into central excise in previous months to report moderate progress in December and even better progress in tax collection in January,” he said.

Indirect tax collections in December were up 16.6 per cent at ?48,000 crore, while service tax collections grew 45.6 per cent to ?18,196 crore, custom mop-up in December stood at ?14,441 crore showing a growth of 4.4 per cent, whereas Central excise collection in December was ?15,367 crore, registering a growth of 3.6 per cent.

Source:- thehindubusinessline.com

Bhutan To Cut Fossil Fuel Imports 70%, Embrace Electric Cars

Africa isn't the only continent where clean energy could leapfrog fossil fuels. In Asia too, where economic growth has brought major air quality and pollution issues, there are signs that a new paradigm could be emerging. From India's proposed 4000 megawatt solar power plant to China's efforts to curb smog, renewables, alternative fuel vehicles and energy efficiency are moving firmly into the mainstream.



The small, mountainous nation of Bhutan is getting in on the act too. The same country that has made headlines for measuring Gross National Happiness (there are some legitimate questions for how GNH is calculated) and aiming for 100% organic agriculture recently announcing a partnership with Nissan to supply electric vehicles (EVs) to government and taxi fleets, as well as electric vehicle chargers, as part of a broad scale effort to cut fossil fuel imports by a whopping 70%, eventually aiming to become a zero emissions nation.



There are a number of reasons why this is important, most notably because while Bhutan is a net exporter of hydroelectric energy, it also imports all of the gasoline and diesel used for transportation. Much like Richard Branson's recent efforts to encourage energy independence for island nations, a country like Bhutan serves to benefit disproportionately from cutting the cord from fossil fuels.



Here's how the press release from Nissan describes the opportunity:



The country currently only uses 5% of the clean power it produces, exporting the majority to India. But almost all of the revenue earned from selling electricity is spent on fuel imported from India to run the nation's existing vehicles, which number some 36,000 vehicles in Thimphu alone.



According to Sandy Dechert over at Cleantechnica, the government fleet and taxi purchases already contracted make up 10%-15% of the vehicles in Bhutan, and the taxi fleet alone would represent 3.5% of all the EVs Nissan has sold worldwide so far. So this is a significant announcement purely on a numbers basis. Dechert also notes that Bhutan's commitment to EVs offers a testing ground for EV performance at high elevations, where internal combustion engines face compromised propulsion, while battery electric vehicles may face challenges of their own—most notably steep terrain and extreme weather.



The other challenge, of course, is that Bhutan remains a relatively poor nation. Most citizens can't afford a vehicle of any type, and many have no access to electricity. (Although the economic benefits of reducing fuel imports could mark a shift in this regard.) Ultimately, though, initiatives like this serve as an important symbolic marker. When entire nations pin their development hopes firmly to clean tech, it sends a sign to the rest of the world as to where the future is headed. Especially if Bhutan gets serious about fixing cities too.



Bhutan's larger neighbors will no doubt be watching closely.

Source:- treehugger.com