Appeal of revenue against part of order couldn't be rejected because assessee didn't challenge anoth

Excise & Customs : Where revenue has filed appeal against a part of order Commissioner (Appeals) unfavourable to it, Tribunal cannot dismiss said appeal merely because assessee had not challenged balance part of order of Commissioner (Appeals)

Income from mixing of rubber to manufacture compound rubber would be eligible for sec. 80-IB relief

IT: Income from job work of mixing rubber with chemicals to make compound rubber for tyre manufacturing companies would be eligible for deduction under section 80-IB

Input service credit was available even when service provider had deposited the service tax belatedl

Cenvat Credit : Cenvat credit of input service is available after payment of value of input service (along with tax) and there is no requirement that service tax should have been deposited by service provider before availment of credit; if service provider has not deposited service tax, revenue's remedy lies at end of service provider

Service of show cause notice via speed post is a valid mode of transmission under SEBI norms, says S

SEBI : Transmission of show cause notice by speed post is recognised mode of transmission as per MSSNB Regulations of SEBI

ITAT directs AO to examine agreement with NR agents and ascertain whether services rendered by them

IT/ILT : Where agreement entered into by assessee with foreign agents was not available to determine type of services, matter had to be considered afresh to decide applicability of section 9(1)(vii)

HC directs AO to consider representation filed by assessee for VAT refund alleging illegal collectio

CST & VAT : Where Assistant Commissioner in appeal set aside levy of tax upon assessee and thereupon assessee approached for refund of tax illegally collected from it and finally it had sent a representation on 2-5-2014, which was not considered so far, Assessing Officer was directed to consider representation and pass appropriate order

Sec. 155(15) covers situations in which stamp duty value is revised and not where reference is made

IT : Section 155(15) is invoked only in case of situations covered by section 50C(2)(b) which refers to only values adopted or assessed by stamp valuation authorities; DVO's value is outside scope of section 155(15)

In case of defective appeals Tribunal shall grant opportunity to rectify defects before rejecting it

Excise & Customs : When Tribunal notices defects in appeal, Tribunal must not dismiss appeal; instead, Tribunal should afford an opportunity to appellant to rectify defects in view of powers under rule 11(2) of CESTAT (Procedure) Rules, 1982 by extending time

Holding period of property is to be counted from its allotment date and not from its registration da

IT : In order to determine taxability of capital gain arising from sale of property, it is date of allotment of property which is relevant for purpose of computing holding period and not date of registration of conveyance deed

Sums paid to agent located abroad for services rendered outside India couldn’t be taxed under sec. 6

Service Tax : Payments made to agents located abroad for services rendered outside India cannot, prima facie, be taxed under section 66A, as services are not 'received' in India; hence, pre-deposit was reduced/waived accordingly

Contribution to chit fund isn't an approved mode of investment under sec. 11(5)

IT : Chit fund business is governed by principles of mutuality as contribution to a chit fund is contribution to one self and, hence, it is not an investment as contemplated by section 13(1)(d)

No export rebate if assessee failed to prove that goods were exported using those inputs on which du

Excise & Customs : Only if it is established and proved by assessee that assessee exported goods by using inputs on which duty was paid, then only, assessee shall be entitled to rebate

MCA abolished concept of maximum useful life of asset; allows flexible life supported by technical a

COMPANIES ACT, 2013/AAA : Section 123 of the Companies Act, 2013 - Declaration of Dividend – Amendment in Schedule II

Exp. disallowed by TPO while computing ALP couldn’t be considered for determining operating margin a

IT/ILT : Where assessee company had already deducted tax under section 192 on entire salary including salary reimbursed to parent company, disallowance under section 40(a)(iii) was not proper

HC recalls winding-up order as applicant’s argument regarding repayment of debt wasn’t controverted

CL: Where erstwhile director of company-in-liquidation filed instant application seeking recall of winding up order passed earlier contending that amount due to creditors had been paid, in view of fact that said contention was not controverted by concerned creditors, instant application was to be allowed

Even prior to Sept. 10, 2004, ancillary services of tour operator were liable to service tax

Service Tax : All services provided by Tour Operator in relation to tour (porterage, monuments visit, guide, food and general assistance services etc.) are liable to service tax both prior to 10-9-2004 and subsequent to 10-9-2004; amendment in section 65(115) enlarging definition of tour operator is clarificatory

CBDT directs officials to maintain appointment schedule with taxpayers in spirit of Citizen's Charte

IT/ILT : Section 119 of the Income-Tax Act, 1961 – Income-Tax Authorities – Instructions to Subordinate Authorities – Instructions to Maintain Schedule of Appointments with Tax Payers etc.

HC sets aside rectification order of ITAT as it was made without analyzing disputed issues and relev

IT : Law requires Tribunal to record findings supported by reasons to sustain order

Domestic Rubber Prices See Sharpest Fall In Five Years

The price of local natural rubber fell below Rs 130 a kg for the first time since 2009. Markets on Thursday quoted Rs 129 a kg for the benchmark RSS-4 grade.

In three weeks, the price has eased Rs 8 a kg. There is panic in Kerala's growing areas as the price is likely to fall. In most small- and medium-sized plantations, tapping is not taking place, as wages and other expenses are much higher than returns, according to growers.

The local market is facing a demand slide. Imports are much higher in the current financial year. For industrial users, imports make sense, as the Bangkok market on Thursday quoted Rs 108 a kg for RSS-4. According to experts, industrial users import SMR-20 grade, much cheaper in the world market. For SMR-20, the Bangkok market on Thursday quoted Rs 99 a kg. There is a steep rise in the import of this variety. According to latest data of the Rubber Board, in April to July, 133,789 tonnes were brought into the country. This is for the first time that the import has crossed 100,000 tonnes in four months.

N Radhakrishnan, director, Cochin Rubber Merchants Association (CRMA), told Business Standard the price was likely to go down. According to him, there is a possibility the price would touch Rs 120 a kg. The price saw a peak of Rs 240 a kg in April 2011, but started falling from November 2012.

Meanwhile, the global market faces a grim situation. The Thailand military government has approved a plan to sell its 200,000 tonnes on Monday. This could hit prices in the short term.

Thailand, the world's biggest exporter, normally ships 300,000 tonnes a month. Global prices have fallen 25 per cent this year from a year ago, due to oversupply and worries about a fall in demand from top consumer China.

According to experts, the global market will see a surplus for another three years, causing gluts of 652,000, 483,000 and 316,000 tonnes in 2014, 2015 and 2016, respectively.

China is expected to register a gross domestic product growth rate of 7.5 per cent in 2014, the lowest since 2002. This means a slowdown in rubber demand. This could cast a shadow on prices.

The Tokyo Commodity Exchange quoted a lower price on Thursday and all contracts starting September registered a fall ranging from 0.2 per cent to 1.1 per cent. The global market parameters indicate a low price regime for the next few years.

Source:- business-standard.com

Next Challenge For Modi Govt: Coal Shortage May Lead To Major Power Crisis In India

A sharp fall in output at a large power plant due to a coal shortage may lead to power cuts in some areas, underlining the challenge the new government faces in overhauling the sector and its creaking infrastructure.

Adani Power Ltd has reduced output at its Mundra facility in Gujarat by about 2,300 megawatts due to a shortage of coal, two senior officials at state-owned power transmission utility Power Grid Corp of India Ltd said.

Adani Power declined to comment.As a result of the cut, India's total generation capacity on Thursday was about 9,110 MW less than its potential demand at peak periods of the day. That gap was nearly twice as wide as at the beginning of the week, according to Power Grid data.

"Well I don't know about the possibility of a breakdown ... There is a problem, I think, with many of the coal supplies," Power and Coal Minister Piyush Goyal told reporters in Mumbai on Thursday. He declined to give details.

India, which uses coal to generate more than two-thirds of its electricity, is struggling to provide enough power to meet rising demand. The power sector has not been able to obtain sufficient domestic coal and has become reliant on costlier imports.

"As of now there is no major supply cut, but if the output is not increased soon, we may see outages in some states. We have asked the states not to draw excessive power," one of the officials at Power Grid said.

"We are monitoring the situation and are hopeful that there will not be major disruptions."

The states that could be hit with blackouts include Maharashtra and Haryana, the official said, declining to be named as he was not authorised to speak to the media.

A court this week declared scores of coal block mining allocations made since 1993 unlawful and arbitrary. If it cancels the blocks after a further hearing due to start on Monday, India may have to import even more coal to keep the lights on.

Prime Minister Narendra Modi stormed to office in May on promises to boost the economy and improve basic services for millions of Indians who still lack running water and electricity.

Power generation has been further hit by a 1,600 MW drop in output due to a technical fault on Wednesday at a plant owned by Tata Power Company Ltd, the utility said.

Source:- firstbiz.firstpost.com

No penalty could be levied under rule 96ZO of Central Excise Rules which was declared ultra vires a

Excise & Customs : Procedural machinery under Act can be utilized only to decide disputes that arise under substantive provisions of Act which are not ultra vires; hence, when provisions of rule 96ZO have been declared ultra vires/void, no penalty equal to duty can be levied thereunder in genuine/non-evasion cases

Exp. incurred by jeweller to enhance its brand image was in nature of revenue exp., says ITAT

IT: Expenditure incurred on brand building by assessee, a manufacturer and exporter of jewellery, was to be allowed as business expenditure

Safeguard Duty Imposed On Saturated Fatty Alcohols

The Finance Ministry has imposed provisional safeguard duty of twenty per cent on certain saturated fatty alcohols.Saturated fatty alcohols-- which are only sold for industrial users-- are mainly used for the manufacture of surfactants, personal care, homecare pharmaceutical and agriculture related end applications.

They also find application in processing of articles of paper, petroleum products, leather, textile and fabricated metal products.

Mumbai-based VVF(India) Ltd had filed the petition seeking safeguard duty on certain saturated fatty alcohol imports.

The Finance Ministry has also specified that the provisional safeguard duty--valid for 200 days-- will not apply for imports from developing countries other than Malaysia, Thailand and Indonesia.Godrej Industries, another domestic producer of saturated fatty alcohols, had supported the petition.

Source:- thehindubusinessline.com

Safcol Aims At Exports To China, India To Counter Rising Costs

THE state-run South African Forestry Company (Safcol) aims to start exporting to high-growth countries such as India and China to counteract rising costs and the renewed land claims threat in South Africa.

Despite an 11% rise in timber sales in the year to March, Safcol reported a R24.5m operating loss before fair value adjustments and tax. Net profit was R511m, from R74m previously, though the difference was largely due to re-evaluations of its forests.

The company increased its cash reserves by 45% to R222m.Interim chairman Somadoda Fikeni said that while the rise in revenue and demand for exports were positive, " operational costs are still very high and we will still be working very hard to contain them".

Operating costs were being driven by the rising cost of leasing sawmills, and high transport and labour costs.Safcol supplies mainly the local market but it does also have operations in Mozambique.

Prof Fikeni said timber exports to new markets, and beneficiating Safcol’s products, including with vertical integration businesses such as furniture making, were key aspects of its diversification strategy.

About 61% of Safcol’s land in South Africa is subject to land claims, with some seen as more serious than others.Prof Fikeni said Safcol "has embarked on pre-emptive engagements with the communities, and we have an aggressive community development programme as part of our corporate social responsibility".

Safcol was spending more than R22m on corporate social responsibility each year, with the focus on building schools but ensuring spending was directed at priority areas identified by communities.

Public Enterprises Minister Lynne Brown said despite Safcol’s best revenue performance in five years, its "recent adverse operational performances pose risks" to its sustainability and affect the cost of much-needed funding for projects.

"This is likely to negatively affect the cost of funding projects — which Safcol is in desperate need of."She said the company required "a different way of doing things".

Ms Brown said the reopening of the land claims process until 2019 was likely to put the company under pressure and she advised Safcol to open two-way communication links with communities.

Source:- bdlive.co.za

India’S Soymeal Exports May Hit Decade Low

The nation's soymeal exports are expected to fall to a decade low in the current financial year, as higher local prices have rendered Indian supplies uncompetitive in the international market.

Exports may remain below 2 million tonnes in the year through March 2015, compared with around 2.8 million tonnes in 2013-14, said Raju Choksi, vice president of agriculture commodities at Anil Nutrients.BV Mehta, executive director of the Solvent Extractors Association, said soymeal exports would definitely be lower this year, but his estimate is higher than that of Choksi. "According to our estimate, it will be around 2.5 million tonnes," he said.

"Higher soybean seed prices have made Indian soymeal uncompetitive in the world market. This year the global supply is on the higher side and there is ample supply of soybean and soymeal in the world market,"said. Soymeal, the residue left after extracting oil from soybean, is widely used in animal feed. It has a major share in India's total oilmeal exports, but for the past couple of years, that has declined. Soymeal exports fell 19% in 2013-14, quicker than the previous year's 10% drop.

Soiurce:- articles.economictimes.indiatimes.com

Assessee is entitled to claim refund of unutilized credit on closure of unit, says CESTAT

Cenvat Credit : In absence of any bar, an assessee is entitled to refund of unutilized credit balance lying in his account on closure of his unit

Co. having direct nexus with dispute couldn't be struck off from petition alleging mismanagement

CL : In petition alleging mismanagement, name of a company having direct nexus in respect of determination of dispute could not be struck down from petition

No disallowance of foreign travelling exp. if details given by assessee weren’t opposed either by AO

IT/ILT : Where assessee company had already deducted tax under section 192 on entire salary including salary reimbursed to parent company, disallowance under section 40(a)(iii) was not proper

MCA issues clarification on capitalization of borrowing cost of power plants on lines of AS-10 and A

COMPANIES ACT, 2013/AAA : Section 133 of the Companies Act, 2013 - Central Government to Prescribe Accounting Standards – Clarification on Accounting Standards (AS) 10 – Capitalization of Cost

Admission by sole beneficiary of clandestine removal of goods is sufficient to uphold excise demand

Excise & Customs : In matters pertaining to clandestine removal of goods, an admission made by sole beneficiary of such an activity is itself enough to hold against assessees

Prior to April 1, 2014, surrender value of Keyman Insurance Policy on its assignment was to be taxed

IT: Prior to 1-4-2014, out of total proceeds received by assessee on maturity of policy, a sum equivalent to surrender value of Keyman insurance policy at time of assignment by company in favour of assessee is taxable

No credit for input tax paid on fertilizers and machinery to be used for growing and manufacturing t

CST & VAT : Where assessee-company was engaged in growing of tea/coffee plants and so also in manufacturing of tea/coffee as marketable commodity and it claimed deduction of input tax paid on purchases of fertilizers, agricultural machinery, etc., it was not entitled for deduction of input tax paid

Reassessment could be made beyond four years on basis of bogus transactions unearthed during survey:

IT : Where subsequent to completion of assessment, Assessing Officer received information from a survey that assessee had entered into bogus purchase transactions, he was justified in initiating reassessment proceedings on basis of those bogus invoices issued by supplier even after expiry of four years from end of relevant assessment year

Payments to non-resident for his translation services shall not be deemed as 'fees for technical ser

IT/ILT : Translation services involving translation of text from one language to another were not technical services and, therefore, payment made by assessee to non-resident translators would not fall within scope of 'fees for technical, managerial or consultancy services' as mentioned in Explanation 2 to section 9(1)(vii)

HC denied to further extend time-limit to make pre-deposit as it would tantamount to review of its e

Excise & Customs : Assessee's application seeking further extension of time-limit to make pre-deposit could not be entertained, as it will almost amount to reviewing earlier order under garb of extension which is not permissible

Prolonged outstanding liability taxable under sec. 41(1) if assessee failed to provide creditors’ af

IT : Where trading liability was outstanding for a period of almost six years, no confirmation evidencing existence of liability was furnished at any stage and even no claims with regard thereto were made, same could clearly be said to be unproved, and application of section 41(1) was justified

No rejection of valuation before rejecting agreement of services after adhering to Rule 4

Service Tax : Where consideration charged by service provider appears to be below cost incurred by him, valuation under rule 3 on 'cost basis' can be resorted to only after : (a) agreement showing consideration is rejected under section 67(1)(i) and (b) procedure under rule 4 of Service Tax Valuation Rules is followed

Sum received for supply of equipment with user guide on how to install and use it, couldn't be taxab

IT/ILT: Where contract for supply of equipment and spare parts included stipulations for giving information so as to guide Indian party to install equipment at site and thereafter to use it, payment to assessee-Danish company would not be royalty

HC ordered winding-up of Co. as it raised defense of defective goods merely to debar claim of petiti

CL : Where there was no evidence to show that goods supplied by petitioner were defective, defence raised by respondent as regards loss suffered by it due to defective goods was moonshine

Cenvat credit on transportation of goods by Railways can be taken on basis of certificate issued by

CENVAT CREDIT : Cenvat Credit (Eighth Amendment) Rules, 2014 – Amendment in Rule 9

CESTAT lays down principles for classification of ‘Games’ and ‘Toys’ under Central Excise Tariff Act

Excise & Customs : Eight items classifiable as 'Toys' [Exempt] : (1) City of Games (Paris); (2) City of Games (London); (3) Games of States (USA); (4) Games of States (India); (5) Match & Move Memory; (6) Mould & Paints; (7) Game of Games and (8) Go to the Head of Class

HC denied to admit appeal as issue relating to valuation of assets made by ITAT was question of fact

WT : Where Tribunal relying upon its orders passed in earlier assessment years, reduced valuation adopted by Departmental valuer in respect of beneficial interest of assessee in jewellery held by a trust on account of various factors such as joint ownership, cumulative burden of tax liabilities, hazard and risk of litigation etc., said question relating to valuation of asset being a pure question of fact, impugned order passed by Tribunal did not require any interference.

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F. No.437/90/2014-Cus IV

Government of India

Ministry of Finance

Department of Revenue

(Central Board Excise & Customs)

*****

New Delhi, dated 25 th August, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002

(as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of

1962), the Board hereby assigns the Show Cause Notice DRI F.No.109/KOL/APP/

2012/6314-6341,6344-6345 dated 06.12.2013 and Corrigendum DRI F.No.109/KOL/

APP/2012/1210-1214 dated 26.03.2014 issued by Additional Director General,

Directorate of Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s

Gayson & Co. (P) Ltd., 18-D Everest, 46C Chowringhee Road, Kolkata and others to

the Commissioner of Customs (Port), 15/1, Strand Road, Custom House, Kolkata for the

purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Kolkata

Zonal Unit, 8, Ho Chi-Minh Sarani, Kolkata-700071

2. The Additional Commissioner of Customs (Preventive), Custom House, 15/1,

Strand Road, Kolkata-700001

3. The Additional Commissioner of Customs, (Port), 15/1, Strand Road, Kolkata-

700001

4. The Additional Commissioner of Customs, Custom House, Near Balaji Temple,

Kandla-370210

5. The Additional Commissioner of Customs (Sea Port-Import), Custom House, 60

Rajaji Salai, Chennai-600001

6. The Additional Commissioner of Customs (Port-Import), Jawaharlal Nehru Custom

House, Nhava Sheva, Taluka-Uran, Dist-Raigad, Maharashtra-400707

7. The Additional Commissioner of Customs (Preventive), Sarda House, Bedi Bandar

Road, Opp-Panchavati, Jamnagar-361002

8. The Additional Commissioner of Customs, Custom House, New Harbour Estate,

Tuticorin-628004

9. The Additional Commissioner of Customs (Muland CFS & General), New Custom

House, Ballard Estate, Mumbai-400038

10. The Additional Commissioner of Customs (ICD), Customs, Central Excise &

Service, Noida, C-56/42, Renu Tower, Sector-62, NOIDA-201307

11. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F. No.437/91/2014-Cus IV

Government of India

Ministry of Finance

Department of Revenue

(Central Board Excise & Customs)

*****

New Delhi, dated 25 th August, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002

(as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of

1962), the Board hereby assigns the Show Cause Notice DRI F.No.66/KOL/

APP/2012/53-100 dated 03.01.2014 issued by Additional Director General, Directorate of

Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s Rohit Ferro Tech

Ltd., SKP House, 132A, S.P. Mukherjee Road, Kolkata and others to the Commissioner

of Customs (Port), 15/1, Strand Road, Custom House, Kolkata for the purpose of

adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Kolkata

Zonal Unit, 8, Ho Chi-Minh Sarani, Kolkata-700071

2. The Commissioner of Customs (Port), Custom House, 15/1, Strand Road, Kolkata-

700001

3. The Additional Commissioner of Customs, Custom House, Kolkata-700001

4. The Additional Commissioner of Customs, Inland Container Depot -Patparganj,

New Delhi-110020

5. The Additional Commissioner of Customs, Custom House, Port Area,

Visakhaptnam -530035

6. The Additional Commissioner of Customs (Import & General) New Custom House,

Near IGI Airport, New Delhi-110037

7. The Additional Commissioner of Customs (Port-Import), Jawaharlal Nehru Custom

House, Nhava Sheva, Taluka-Uran, Dist-Raigad, Maharashtra-400707

8. The Additional Commissioner of Customs (Sea Port-Import), Custom House, 60

Rajaji Salai, Chennai-600001

9. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F. No.437/12/2014-Cus IV

Government of India

Ministry of Finance

Department of Revenue

(Central Board Excise & Customs)

*****

New Delhi, dated 25 th August, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002

(as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of

1962), the Board hereby assigns the Show Cause Notice DRI F.No.23/34/2013-

DZU/5383 to 5393 dated 08.11.2013 issued by Additional Director General, Directorate

of Revenue Intelligence, Delhi Zonal Unit, New Delhi in the case of M/s Sun Infonet (P)

Ltd., 3/31 West Patel Nagar, New Delhi and others to the Commissioner of Customs,

Inland Container Depot, Tughlakabad, New Delhi for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal

Unit, B-3 & B 4, 6 th Floor Paryavaran Bhawan, C.G.O. Complex, Lodhi Road,

New Delhi.

2. The Commissioner of Customs, Inland Container Depot, Tughlakbad, New Delhi.

3. The Commissioner of Customs, Inland Container Depot, Patparganj, Near Gazipur

Bus Depot, Delhi, having its office at Inland Container Depot, Tughlakbad, New

Delhi.

4. The Joint/Additional Commissioner of Customs (Import), Air Cargo Complex,

Near IGI Airport, New Custom House, New Delhi.

5. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/98/2014-Cus IV

Government of India

Ministry of Finance

Department of Revenue

(Central Board Excise & Customs)

*****

New Delhi, dated 25 th August, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002

(as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of

1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/GRU-

60/2013(Vidres India)154-155 dated 10.04.2014 issued by Additional Director General,

Directorate of Revenue Intelligence, Zonal Unit, Ahmadabad in the case of M/s Vidres

India Ceramics Private Limited, 306, Sarthik Square, Nr. Pizza Hut, S.G. Road,

Ahmadabad, Gujarat and others to the Commissioner of Customs, Ahmadabad for the

purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

(i) The Additional Director General, Zonal Unit, Ahmedabad, Rupen Bungalow, near

Jain Merchant Society, Paldi, Admedabad-380007.

(ii) The Commissioner of Customs, Custom House, Near All India Radio, Navrangpura,

Ahmedabad-380009

(iii) The Additional Commissioner of Customs (Import), Air Cargo Complex, Sahar,

Andheri (East), Mumbai-400099

(iv) The Additional Commissioner of Customs (Import), Jawaharlal Nehru Custom

House, Nhava Sheva, Tal- Uran, Distt.- Raigad, Maharashtra-400707

(v) webmaster.cbec@icegate.gov.in

Cenvat reversal: ‘Exempted’ services to cover all services exempted by notifications and non-taxable

Cenvat Credit : Expression 'exempted service' in Cenvat rule 2(e) covers taxable services but fully exempted by notification, and also non-taxable services; therefore, inter-connecting usage charges (IUC) collected by telecom service provider was to be regarded as 'exempted services', for period prior to it became taxable for first time

Only deductible expenditure could be subjected to sec. 40(a)(ia) disallowance for TDS default, says

IT : In order to fall within ambit of section 40(a)(ia), it is sine qua non that assessee should have been otherwise eligible for deduction of sum which is sought to be disallowed by invoking provisions of section 40

BIS standard can’t be followed for classification of items unless prescribed in Custom’s Tariff

Excise & Customs: Where any issues were not raised by assessee before lower authorities and also not raised in grounds of appeal before Tribunal, same cannot allowed to be raised at time of final hearing before CESTAT for first time

Proceedings for dishonour of cheque couldn’t be initiated against director if Co. itself wasn’t part

Negotiable Instrument Act : In absence of company as a party in complaint under section 138, proceedings against its director could not be continued

ITAT directs afresh examination as TPO denied chance of hearing to assessee and failed to examine it

IT/ILT: Where TPO in making transfer pricing adjustment had not afforded any opportunity of being heard to assessee and even failed to examine contentions and arguments of assessee in this regard; approach adopted by TPO was not justified, matter was to be remanded for fresh adjudication

RBI removes stipulations regarding manner of acquisition of Govt. securities by eligible foreign inv

FEMA/ILT : Purchase and Sale of Securities other than shares or Convertible Debentures of an Indian Company by a Person Resident Outside India

CBDT constitutes committee to approve any action proposed by AO to tax indirect transfer due to retr

IT/ILT : Section 119 of the Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities - Constitution of A Committee for Proper Administration of Certain Clarificatory Amendments Introduced in Clauses (14) and (47) of section 2, section 9(1)(I) and section 195 Vide Finance Act, 2012

Cotton Seen At 2009 Low By Gap’S Indian Partner On China

Cotton is set to fall to the lowest in five years as demand slows in China, the world’s biggest consumer, and India heads for a record crop, Arvind Ltd. (ARVND) said. Futures declined for the first time in three days.

Prices are poised to retreat to a range of 55 cents to 60 cents a pound by December, said Sanjay Lalbhai, chairman of India’s biggest denim maker, which retails Gap Inc. and Tommy Hilfiger Corp. brands. The harvest in the South Asian nation, the world’s second-largest grower, may jump to a record 40 million bales of 170 kilograms (375 pounds) each in the 12 months starting Oct. 1 from 37 million bales this year, he said.

Futures slumped 21 percent in New York this year, making it one of the worst performers on the Bloomberg Commodity Index of 22 raw materials, as global stockpiles increase to a record high. Lower prices would help reduce costs for Gap and Levi Strauss & Co. as the U.S. government predicts the country’s inventories will expand at the fastest pace in three decades.

“Cotton has an oversupply situation both in the global market as well as the domestic market,” Harish Galipelli, head of commodities and currencies at Inditrade Derivatives and Commodities Ltd., said by phone from Hyderabad. “The demand dynamics are also weakening as countries like China have got a lower appetite.”

Futures have declined 31 percent from a two-year high of 97.35 cents reached on March 26 and traded at 67.13 cents on ICE Futures U.S. today. October-delivery contract on the Multi Commodity Exchange of India Ltd. declined 0.4 percent to 18,280 rupees per bale.

China’s imports fell 39 percent to 1.67 million tons in the first seven months from a year earlier, according to data from the General Administration of Customs. The country holds more than half of the global inventory, the U.S. Department of Agriculture estimated on Aug. 12.

Slowing demand from China would reduce India’s exports next year even as the harvest increases, Lalbhai said in an interview in Mumbai on Aug. 22. Shipments are estimated at 11.4 million bales this year, he said.

“It’s going to be a challenge to export the same amount of cotton next year,” Lalbhai said. Prospects for yarn exports, mostly shipped to China, may also be hurt by weakening demand in the Asian country, he said.

Stockpiles in the U.S., the world’s biggest exporter, will probably more than double to 5.6 million bales of 480 pounds each by July 2015, the biggest increase since 1986, the USDA said Aug. 12. Global reserves are poised to reach an all-time high of 105 million bales, the USDA estimates.

Declining cotton prices are “good news” for Gap and will benefit the company, Chief Financial Officer Sabrina Simmons said in an earnings call on Aug. 22.

Futures will probably find support in a range of 55 cents to 60 cents which equals the rate at which Chinese traders can import without government quota restrictions, according to Paul Reinhart AG. The price is equivalent to 65 cents including shipping and insurance at Chinese ports, Thomas Paul Reinhart, who is head of sourcing and marketing China, said in an interview on Aug. 5.

Source:- bloomberg.com

Framework To Boost Exports

The new NDA government’s first annual Foreign Trade Policy (FTP) statement will be unveiled soon. Normally presented after the Union Budget, the FTP has usually concentrated on measures to boost exports and reduce transaction costs.

It cannot explicitly reduce import or export duties — which are in the domain of the budget. However, the incentives for exporters have indirect implications for the exchequer. Employment generation in India through exports of manufactured goods has been a key objective of the FTP, which remains despite the change in nomenclature from the previous Exim Policy that was focussed on exports.

A proactive policy on imports is equally necessary in a scenario where India is integrating with the rest of the world. Within the country there are minimal import restraints. A consistent policy framework is necessary to deal with items such as imports of gold and petroleum. Recently, the FTP has outlined ambitious plans for the diversification of exports, both in terms of the range of products and the destination countries. These commendable efforts have, however, not improved India’s export performance which, like world trade itself, remains below par.

The new government’s orientation to trade cannot be really different from that of its predecessor. The Prime Minister, while inaugurating a port-based special economic zone, urged manufacturers to join in export promotion. In his Independence Day speech he called for a “make in India” movement, which has the potential to turn India into a global manufacturing hub. The emphasis in the FTP will naturally vary depending on current circumstances.

Multilateral trade as embodied by the WTO received a setback with India holding out against a previously agreed Trade Facilitation Agreement. While India has its own reasons — preserving the norms for domestic food security — the fact is that the failure in Geneva has spurred moves towards free trade agreements (FTAs), regional pacts, bilateral agreements and so on. These are inferior to rule-based multilateral trade, irrespective of any short-term gains they might confer.

The Commerce Minister’s call for a comprehensive review of the performance of all FTAs is noteworthy. India already has 14 agreements in force, including one with the ASEAN grouping of 10 countries, and is negotiating several others. Both India and China have free trade agreements with ASEAN, and unless cumbersome procedures relating to country of origin are scrupulously followed, India might face a flood of duty-free Chinese goods. Besides, FTAs have not exactly delivered on their promise of larger trade between signatories. These factors will surely weigh, even as India prepares to renegotiate stalled issues of the Doha round.

Source:- thehindu.com

Subvented Loan Scheme For Sugar Industry To End This Season

The government has decided to not to extend the financial assistance to sugar undertakings through interest subvented loan beyond this current season.

According to official sources, it was only meant for payment of arrears for the current season 2013.In fact even if loan applications are pending with the banks, the disbursements have tapered off since payments of arrears are already through in many parts except for Uttar Pradesh mostly.

The sugar industry had demanded to extend the scheme beyond this current season and increase the amount of loan by linking to last two sugar seasons and not three which is the current norm.

In December 2013, the centre had doled out Rs 6600 crore to the sugar industry to enable it to pay cane arrears to farmers. The loans were subsidized up to 12% interest subvention which worked out to around Rs 2750 crore to be met from the Sugar Development Fund under the Food Ministry.

As per official data, the sugar industry has paid Rs 47,852 crore to cane farmers till July 31 of the current marketing year ending September. The outstanding amount of sugarcane farmers of the country on sugar mills is Rs 9,252 crore which is about 16.20% of total amount payable during the current sugar season 2013-14.

Out of Rs 9,252 crore arrears, Uttar Pradesh millers owe maximum to cane farmers at Rs 5,741.74 crore followed by Karnataka mills at Rs 1,794.68 crore and Tamil Nadu mills at Rs 504.40 crore.

The Sugarcane (Control) Order, 1966 stipulates payment of cane price within 14 days of supply, failing which interest at the rate of 15% per annum on amount due for the delayed period is payable. The powers for enforcing this provision lie with the States/UTs.

In order to ensure payment of arrears, states have even resorted to coercive measures under essential commodities Act. In Uttar Pradesh, various districts appointed controller in private sugar mills for monitoring the stock of manufactured sugar and payment of cane arrears on regular basis.

The production of sugar in the country during last three sugar seasons as well as estimated production during current sugar season 2013-14 has been more than the domestic demand/consumption.

India's sugar production is estimated to rise by 4% to 25.3 million tonnes during 2014-15 marketing year starting October, despite a drop in cane area by 2%, according to industry estimates.

Sugar production of India, the world's second largest producer, is estimated at 24.3 million tonnes in the 2013-14 marketing year.

The annual demand is about 24 million tonnes. Keeping in view the estimated availability and demand/consumption of sugar, prices of sugar in the domestic as well as international market, the Government allowed export under Open General Licence (OGL).Thereafter, export of sugar is free subject to prior registration of quantity with the Directorate General of Foreign Trade (DGFT).

Source:- business-standard.com

Product is to be considered as such and not after addition of accessories for purpose of exemption u

Excise & Customs: Where exemption was only in respect of machines capable of laying bituminous pavement of 7 meters or more, Electronic Sensor Pavers designed for laying 3 to 6 meters pavement could not be exempt and fact that they could lay pavement of 7 meters or more after addition of accessories was irrelevant

Infrequent share dealings with intent of capital appreciation leads to taxation of resultant profit

IT: Where investment in shares was made with an objective of capital appreciation, there was infrequent-handful of transactions and dividend was also earned, profit from sale/purchase of shares was treated as capital gain

Freight agents are liable to service-tax on sum of brokerage from shipping and air lines except ocea

Service Tax : Prima facie, freight forwarders : (a) are not liable to service tax on profit earned on Ocean Freight Charges on exports and imports under 'Business Auxiliary Service'; but (b) are liable to service tax on brokerage from shipping/air lines

Assessee shall get interest on refund arising out of excess tax paid on estimation basis before fili

IT : Where assessee paid tax prior to date of filing return, tax paid by assessee was nothing but self assessment tax for purpose of section 140A and thus, assessee was entitled for interest on refund under section 244A

SEBI raises anchor investor's share in public issue under book building process to 60%

SEBI/INDIAN ACTS & RULES : SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014 – Amendment in Regulations 26, 41, 43, 76 & Schedule XI and Insertion of Regulation 71A, 76A & 76B

SEBI releases norms of 'Core Settlement Guarantee Fund' for Clearing Corporations

SEBI : Core Settlement Guarantee Fund, Default Waterfall and Stress Test

RBI simplifies procedure of refinancing of ECBs

FEMA/ILT : Refinancing of ECB at Lower All-In-Cost – Simplification of Procedure

Tribunal had no jurisdiction to hear appeals on issues relating to remission of duty on goods destr

Excise & Customs : Tribunal does not have jurisdiction to hear appeals against order of Commissioner (Appeals) dealing with remission of duty on loss/destruction of goods during storage due to fire, etc.

No reassessment by AO to deny sec. 36(1)(viii) relief on basis of material considered during origina

IT: Where Assessing Officer allowed assessee's claim for deduction under section 36(1)(viii) in assessment framed under section 143(3), subsequently on basis of same material on record, he could not initiate reassessment proceedings taking a view that excess benefit was granted to assessee in terms of provisions of Act

Review order by Committee of Commissioners ruling no further appeal couldn’t be further reviewed

Excise & Customs : Where once legality and propriety of order passed by lower authorities has been reviewed and same is found to be legal and proper, no subsequent further review order can be passed to direct filing of appeal.

Operating ratio couldn't be basis of comparison if assessee was doing trading and not agency busines

IT/ILT : Where assessee entered into transactions of sales and purchases of goods with its AE located abroad on principal to principal basis which were akin to trading transactions, authorities below were justified in rejecting assessee's contention that while determining ALP appropriate ratio to be considered for comparing with other entities would be ratio of net revenue to operating costs

Services completed prior to June 1, 2007 not classifiable as works contract service

Service Tax : If a task/service is completed prior to 1-6-2007 and if part of consideration was received before 1-6-2007 and part thereafter, for part received after 1-6-2007, works contract composition scheme could not be claimed, as task/service completed prior to 1-6-2007 cannot be classified as works contract service

Petitioner director to get arrears of salary and perquisite for period he continued as director as p

CL : Where petitioner continued to act as director pursuant to CLB order until his shares were valued and payments were offered thereafter, he was entitled to get arrears of salary and perquisites for said period

Procedural lapse by assessee couldn’t lead to denial of unutilized credit of amalgamating Co.

Cenvat Credit : Credit lying in account of amalgamating company cannot be denied to be utilized by amalgamated company merely because of non-filing of declaration, when all facts were otherwise supplied, though not in prescribed form

Sec. 80-IB benefit is available to manufacturer even on income earned from job work

IT : Where after section 80-IB deduction, effective tax rate in hands of assessee became less than that of sister concern to whom sale at a price less than market price was allegedly made, no addition was to be made enhancing GP rate of such transactions

Department couldn’t raise excise demand on different grounds after abandoning allegations made in SC

Excise & Customs : Adjudicating authority, after having abandoned or let go of allegations made in show cause notice, cannot confirm demand on assumptions or presumptions

Security deposit was to be taxed as income from house property if it was circumventing real rent fro

IT: Where it did not come out from facts that payment of security deposit was to circumvent real rent, same could not be considered for computing income from house property

ITAT deletes TP adjustment as it was made by TPO without applying any prescribed method

IT/ILT : Where TPO did not accept TP analysis made by assessee without giving any reasons and made TP adjustment without applying any prescribed method, TP adjustment was to be deleted

Parallel and Regular Colleges preparing students for obtaining recognised educational degrees aren't

Service Tax : Since parallel colleges and self financing colleges (just like regular colleges) are preparing students for acquiring University degrees, diploma certificate, etc. which is approved by law, they are not liable to tax

HC ordered publication of advertisement of winding-up petition as appellant didn't avail opportunity

CL : Publication of advertisement of admission of winding up petition was to be ordered when appellant company had not availed of opportunity granted to it by Division Bench to move an application for deferment of advertisement of petition

UP Govt. levies cess on sale of petrol and diesel; sets liability for wrong use of certificate or de

CST & VAT/Indian Acts & Rules : Uttar Pradesh Value Added Tax (Amendment) (Second) Ordinance, 2014 – Amendment in Sections 2, 3, 3a, 4, 6, 13, 17, 28, 29, 33, 42, 50, 54, 57; Substitution of Section 70 and Insertion of sections 3B and 8A

Jharkhand Govt. curtails min. time-limit to be provided in notice for producing books of accounts to

CST & VAT/Indian Acts & Rules : Jharkhand Value Added Tax (Amendment) Rules, 2014 – Amendment in rules 24 and 59

Govt. allows 100% FDI in specified areas for construction, operation and maintenance of Railway infr

FDI/FEMA/ILT : Policy for Private Investment in Rail Infrastructure through Domestic and Foreign Direct Investment – amendment In FDI Circular 2014 Effective From 17-4-2014

Rice Basmati Rises On Exports Deman

Rice basmati prices firmed up to Rs 200 per quintal at the wholesale grains market today on increased offtake by stockists driven by rising export demand.

However, other grains including wheat moved in a tight range in scattered deals and settled around previous levels.

Traders said increased offtake by stockists to meet rising demand from exporters, mainly influenced rice basmati prices.

In the national capital, rice basmati Pusa-1121 and basmati common variety rose by Rs 200 and Rs 100 to Rs 7,300-9,800 and Rs 9,000-9,700 per quintal respectively.

Wheat MP (deshi) 2,245-2,445, Wheat dara (for mills) 1,570-1,575, Chakki atta (delivery) 1,575-1,580, Atta Rajdhani (10 kg) 220, Shakti bhog (10 kg) 220, Roller flour mill 815-825 (50 kg), Maida 930-945 (50 kg) and Sooji 980-1,000 (50 kg).

Basmati rice (Lal Quila) 10,400, Shri Lal Mahal 10,000, Super Basmati Rice 9,500, Basmati common new 9,000-9,700, Rice Pusa- (1121) new 7,300-9,800, Permal raw 2,100-2,150, Permal wand 2,200-2,300, Sela 2,700-2,800 and Rice IR-8-1,900-1,950, Bajra 1,220-1,225, Jowar yellow 1,400-1,420, white 2,325-2,525, Maize 1,220-1,230, Barley 1,460-1,465.

Source;- business-standard.com

$8-Bn Export Orders At Risk As Companies Struggle To Get Insurance Cover

Export orders worth $8 billion are at risk as Indian companies are struggling to raise money due to absence of insurance cover.

"We have more than 50 corporates which have secured $8 billion project export orders in 25 countries. While the Indian companies have already secured these orders, we are not able to meet the loan disbursement (demand) as we also need insurance cover," Yaduvendra Mathur, chairman and managing director of Export-Import Bank of India (EXIM Bank), said on Wednesday.

"These orders could reinvigorate the manufacturing process in the country. But if the companies fail to get the insurance cover, they will probably lose those orders," he added. Mathur was speaking to reporters on the sidelines of a banking seminar organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in Kolkata.

The limited capital base of Export Credit Guarantee Corporation of India (ECGC) has added to the problem. ECGC is a government enterprise that provides export credit insurance facilities to exporters and banks in the country.

"ECGC itself has got a small equity base... Unfortunately, development finance institutions in India has taken a back seat. Our ability to leverage is also small compared to other export-import banks. If both ECGC and EXIM Bank are strengthened we can finance more project exports. The government is aware of this situation and examining this issue closely," Mathur said.

EXIM Bank in India was allowed to lend 10 times its equity base. While the bank wanted to increase this cap to 15 times, the Reserve Bank of India (RBI) has permitted it to lend only 11 times its equity base till March, 2015. Compared to this, export-import bank in China can lend 70 times its equity base while the Korean export-import bank can leverage up to 30 times.

The government has infused Rs 1,300 crore in EXIM Bank during the current financial year taking its total equity base to Rs 5,000 crore. "The authorised equity capital for EXIM Bank is Rs 10,000 crore. Hence, we have requested the government to inject another Rs 5,000 crore in two tranches in the next couple of years," Mathur said.

Project development company

Separately, Mathur said EXIM Bank will partner Infrastructure Leasing & Financial Services (IL&FS), State Bank of India (SBI) and African Development Bank to create a project development company. The proposed joint venture will offer consultancy services to Indian corporates and facilitate exports to Africa.

"We are also talking to Bank of Baroda. Ideally, we want to have five partners with each of us investing $5 million. We have not yet identified a location for the headquarters. But hopefully we will set up this company during the current financial Year.

Source:- business-standard.com

India Earned Rs 86,822 Crore In Apr11-Jun14 On Steel Exports

The country earned a revenue of Rs 86,822 crore from steel exports during April 2011 to June 2014, the government said on Monday.



“The revenue earned through exports of alloy, non-alloy and semis between April 2014 and June 2014” stood at Rs 7,971 crore, Minister of State for Steel and Mines Vishnu Deo Sai told the Lok Sabha in a written reply.



Sai said the revenue on account of steel exports stood at Rs 29,994 crore in 2013-14, Rs 26,912 crore in 2012-13 and Rs 21,946 crore in 2011-12, respectively.



On high prices of steel in the domestic market, Sai said, “As the prices are essentially market driven, government has no role in fixation of prices.”



He, however, added that the government has taken a number of steps for corrective measures that include formation of an inter-ministerial group in the Ministry of Steel for expediting investment projects in the sector.



“To increase domestic value addition and improve iron ore availability for domestic steel industry at reasonable prices, duty on export of iron ore has been increased to 30 per cent. Recently the government has imposed export duty of 5 per cent ad valorem on export of iron ore.

Source:- ahmedabadmirror.com

Charges of clandestine removal of goods couldn’t be confirmed merely on basis of input-output ratio

Excise & Customs : Charges of clandestine removal cannot be upheld on basis of theoretical productions calculated on basis of chemical formula; there may be various factors directly or indirectly affecting production and, therefore, without any physical experiment to arrive at actual production, demand is invalid

Trust could claim sec. 80G relief even when it was not eligible to claim benefit of secs. 11 and 12

IT: Where assessee was denied exemption under section 11, income of assessee to be computed under general provisions of Income-tax Act

Sugar Export Rebound At Risk From Rising Domestic Prices

Sugar prices in India are firming on fears of short-term supply constraints and seasonal demand even as global prices are sliding, posing a threat to a recent recovery in exports from the world's second-biggest producer of the sweetener.

A raised sugar import duty in India, festival demand and an expected delay in cane crushing in a key producing state have helped push domestic prices to a $70 a tonne premium to international prices, making it more lucrative to sell domestically. A year ago the premium was just $20 a tonne.

Lower exports from India could provide short-term support to global sugar prices that hit a seven-month low on Monday and give leading sugar exporters such as Brazil and Thailand an opportunity to take more of the market.

India last week raised the import duty on the sweetener to 25 percent from 15 percent to help mills, which are struggling with overflowing warehouses due to bumper crops over the past few years. Government-set prices for sugar cane are also hurting them.

"The import duty hike has isolated the Indian market from global price trends. Local prices won't fall due to global surplus," said Ashok Jain, president of the Bombay Sugar Merchants Association.

Thailand is offering white sugar at around $430 per tonne, but Indian mills won't offer below $500 due to relatively higher local prices, said a Mumbai-based dealer, who declined to be named as he is not authorised to talk to media.

India's local prices have risen 10 percent so far in 2014, while global prices have fallen 4.3 percent.

"Exports are not possible unless local prices drop by at least 15 to 20 percent," said the dealer with a global trading firm that has been one of the top sugar exporters this season ending September. "I don't see that happening in 2014."

India celebrates the religious festivals of Dussehra and Diwali in the next two months, when sugar demand goes up and prices rise.

Since the start of the 2013/14 sugar marketing year last October, Indian mills have aggressively exported to reduce surplus sugar. India usually produces white sugar, but this year it also produced raw sugar, especially to cater to demand from the growth of refining capacity in Asia and Africa.

Exports are likely to swell to 2.5 million tonnes in the current year ending Sept. 30, compared with just 35,000 tonnes a year earlier. But in 2014/15 India is likely to ship much less than the current year as mills are not interested in producing raw sugar, industry executives say.

"Mills are not keen to produce raw sugar as they are getting a higher price for white sugar (in the domestic market) than the realization for raw sugar from exports," said a senior official at the Maharashtra State Cooperative Sugar Factories federation.

Sugar mills in India's second-biggest sugar producing state of Uttar Pradesh have threatened to not crush cane in the new season starting in October, saying they will not be able to pay a high state-set cane price to farmers.

The mills suspended crushing this sugar year too for two months and had halted operations in earlier years as well.

"If crushing gets delayed, it will obviously support sugar prices. But it is unlikely to lead to shortfall due to ample carry-forward stock," said Ashwini Bansod, a senior analyst at Phillip Commodities India Pvt Ltd.

India is likely to start the new sugar year with an opening stock of 7.5 million tonnes, down from 9.3 million tonnes a year ago.

Source:- in.reuters.com

Nepal Blowing Earnings On Imports

Nepal has been spending almost all of its foreign currency earnings on importing goods, said Nepal Rastra Bank (NRB). In the last fiscal year, the country’s combined income from remittance, grants, pensions and exports amounted to Rs 723.47 billion while its import bill came to Rs 708.76 billion, said the central bank.

According to NRB’s annual report on the country’s macro economy, remittance inflow reached Rs 543.29 billion, export revenues came to Rs 90.29 billion, grants totalled Rs 48.51 billion and pensions totalled Rs 41.37 billion.

Due to runaway growth in imports, the country’s trade deficit jumped 28.9 percent to Rs 618 billion. The trade deficit with India and third countries soared 30.8 percent and 25.3 percent respectively, said NRB. Posh Raj Pandey, executive chairman at South Asia Watch on Trade, Economics and Environment (Sawtee), blamed a weak supply capacity for the massive trade deficit. He said that poor government policies failed to channelise remittance into investments leading to low exports.

The government had projected exports of Rs 100 billion in the last fiscal year, but shipments fell short of the target.

The government has set the same export goal for the current fiscal year. “The government should think of providing incentives to potential investors of remittance in productive sectors to improve the situation.”

In the last fiscal year, Nepal’s imports from India soared 28.8 percent to Rs 472.73 billion. The figure represented 66.69 percent of the country’s total imports.

Petroleum products were the largest import with a bill totalling Rs 131.33 billion. Similarly, vehicles and spare parts, MS billet, machinery and parts, medicines and rice were the major imports.

Meanwhile, the country’s imports from third countries leapt 24.4 percent to Rs 236.03 billion. Gold came at the top of the list with imports valued at Rs 24.79 billion. Crude soybean oil, telecommunication equipment and parts, silver, machinery and parts and electrical goods were the other major imports from overseas countries.

NRB records show that exports to India increased 16.5 percent to Rs 59.41 billion, representing 65.79 percent of the country’s total exports. Zinc sheet, textiles, polyester yarn, cardamom, juice, jute products and GI pipe were the major exports to India.

Similarly, the country’s exports to overseas countries rose 19.1 percent to Rs 30.87 billion. Woollen carpets stood first among the products that were exported to third countries with revenues totalling Rs 7.36 billion. Other major export products were readymade garments, pashmina products, pulses and hides.

Source:- ekantipur.com

Apex Court Order May Alter Coal Import Dynamics

Power, mining, and banking stocks fell on Tuesday, as companies in each of the sectors wait for a 1 September verdict in which the Supreme Court, which ruled on Monday that all coal block allocations since 1993 are illegal, could actually cancel the assignments.

Meanwhile, international coal traders immediately downed a gear in talks for supply contracts with Indian companies because a cancellation could mean they could command higher prices from customers in the country. If that happens, global coal prices could increase, say experts, as could shipping rates.

While power and mining companies will be directly affected by the cancellation, banks could see the volume of bad loans on their books increasing with the viability of power and steel projects they have funded coming under question.

Shares of power and banking stocks fell for the second consecutive day on Tuesday, following the verdict. The S&P BSE Power index fell 1.32%, the S&P BSE Bankex index lost 0.24% and the BSE Metal Index rose 0.75%.

At stake are around 289 coal blocks given out to companies of all sizes individually or in consortiums, of which around 21 are producing mines with an output of about 35 million tonnes (mt) a year, according to a Macquarie report.A cancellation could mean more imports. India imported around 160mt of coal in 2013-14.

Foreign traders have been quick to spot the opportunity in the court’s ruling.“Indonesian miners are delaying any long-term negotiations…They are trying to assess the impact (of the ruling),” said Prakash Duvvuri, head of research at natural resources website OreTeam.

The ruling comes at an opportune time for them.Global coal prices have slipped over the past year. Premium hard coking coal from Australia was priced at $113 a tonne on Tuesday, free-on-board (without freight charges) at the east coast, down 19% from a year ago, data from Bloomberg showed.

“It is too early to say if prices will move but there will be an increase in demand of imported coal if running mines are cancelled,” said Vinay Prakash, chief executive officer (coal and carbon credit) at Adani Enterprises Ltd, one of the largest coal importers in India.

“If mass deallocations do happen, both coal prices and freight rates will shoot up on an expected increase in import volumes,” added Punit Oza, vice-president and head of Supramax Pacific at ship operator Torvald Klaveness Group in Singapore.

A top government official, requesting anonymity, said, “Clarity will only emerge after 1 September.”

Banks that have exposure to metals and power companies are vulnerable in the wake of the Supreme Court’s verdict, and may see their bad loans rise, UBS said in a report on Tuesday.

“We believe a portion of banks’ exposure to metals/power would be vulnerable to becoming NPLs (non-performing loans) if the process of reallocation of coal blocks extends beyond six months,” UBS said.

A Morgan Stanley report said the development could have a serious impact on the economy.

“Near-term coal deficit in the country may deepen and dependence on Coal India Ltd may grow for coal supplies,” the Morgan Stanley report said.

Analysts attributed the sharp fall in stock prices to fears of a spurt in their cost of production if the apex court imposes a penalty or cancels allocations.

In a note on Monday, Macquarie Capital Securities (India) Pvt. Ltd termed the move “really harsh.”

“We believe that, in the case of operational coal blocks, possible options could be penalties to regularize the coal blocks or a hand-over to Coal India. Unopened coal blocks could face deallocation. It is difficult to imagine that all this could be done quickly,” Macquarie analysts Rakesh Arora and Sumangal Nevatia said in the note.

According to Karvy Stock Broking Ltd, banks have an exposure of Rs.5.01 trillion to the power sector, and exposure to the sector has grown from 4.3% of the non-food credit in March 2008 to 8.83% in the June 2014.

Bankers fear the worst if the coal blocks are deallocated.

“Not only bank assets, coal is such an important item for practically everything, and if a sizeable share of the private producers shut suddenly, the impact on economy will be unimaginable,” said a senior banker who did not wish to be named.

According to the Reserve Bank of India, state-run banks’ gross bad debts as a percentage of total loans was 4.7% in March 2014.

Analysts say power, steel, and infrastructure, so-called core sectors, will be hit hard. These sectors, along with textiles and aviation, account for 24% of the money loaned by banks, but half of the bad loans on the books of lenders.

As on 30 June, 16 cases involving loans worth Rs.20,253 crore in the power sector were being restructured, according to information available on the website of the corporate debt restructuring (CDR) cell.

“We expect part of this exposure to turn into NPAs (non performing assets) over the next 18 months as many of these projects will become unviable. We maintain our cautious view on the sector, specially on the public sector banks, which have relatively higher exposure to the sector,” Karvy analyst Asutosh Kumar Mishra said in a note.

Source:- livemint.com

Indian Rupee Opens Lower At 60.48 Per Dollar

The Indian rupee opened lower at 60.48 per dollar on Wednesday, down 5 paise compared to previous day's closing value of 60.43 a dollar.

The dollar hovered just under a 13-month peak against a basket of major currencies early with the euro still struggling amid expectations of further policy easing from the European Central Bank.

Also Read - Rupee to outperform Asian peers in near-term: StanChart

Himanshu Arora, Currency Analyst at Religare said, "USD-INR pair is expected to trade higher today. Mass de-allocation of coal blocks could probably push imports higher leading to widening of the trade deficit given the impact on domestic production."

"Rupee may also weaken ahead of the GDP data for the April-June quarter expected on Friday. Expect USD-INR to trade in the range of 60.22-60.75/dollar," he added.

According to Emkay report, SPOT USDINR prices have crucial support at 60.30 and as far as prices are holding this support, prices are expected to trade sideways to higher. Immediate resistance at 60.60. A breakdown below 60.3 0 can take prices further lower towards 60.10.

Source:- moneycontrol.com

Maharashtra Govt. increases VAT audit limit to Rs one crore

CST & VAT : Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2014 - Amendments in Maharashtra Value Added Tax Act, 2002

Jharkhand Govt. hikes interest rate for return related defaults and penalty for turnover escaping as

CST & VAT : Jharkhand Value Added Tax (Amendment) Act, 2013 – Amendment of Sections 4, 26, 30, 35, 37, 40, 72 and 80

Specified dealers have to furnish details of sales/purchases alongwith each VAT return under Maharas

CST & VAT : Maharashtra Value Added Tax (Third Amendment) Rules, 2014 - Amendment in Rules 17 and form 101

Maharashtra Govt. extends limitation period of assessment for specified dealers

CST & VAT : Maharashtra Value Added Tax (Amendment) Act, 2014 – Amendment in Section 23

Delay in filing appeal due to transmission of order at various offices of assessee was condonable

Excise & Customs : Where delay in filing appeal had occurred due to transmission of impugned order of to various offices of assessee, same was condonable; Tribunal must condone said delay based on sufficiency of reasons, even if same is not highlighted by assessee's counsel in hearing

Construction cost on leasehold land disallowed as assessee had been holding land after expiry of lea

IT : Where assessee had been in possession of property after expiry of lease period, benefit of written down value of cost of construction could not be allowed

Pre-operative exp.won’t form part of capital investment while deciding eligibility for VAT exemption

CST & VAT: Where assessee had established a new unit for manufacturing and sale of C.R. Strips and it was issued an eligibility certificate under section 4A of U.P. Trade Tax Act, 1948, preoperative expenses incurred by assessee would not form part of additional fixed capital investment for purposes of computing exemption under section 4A; but transformer/CVT installed in factory premises would fall within meaning of expression fixed capital investment for purposes of computing exemption under s

No question of law arises when ITAT had allowed payments to sub-contractor for job work after examin

IT : Where Tribunal after considering totality of facts allowed payment made by assessee to sub-contractors for carrying out job work contracted out to assessee, no question of law did arise from Tribunal's order

Brand name assigned to assessee after family settlement to be deemed as his own brand; SSI exemption

Excise & Customs : Brand/trade name assigned in favour of assessee after family settlement becomes assessee's own brand/trade name even if, in trademark records, same is shown in name of family members; therefore, goods bearing said brand name are eligible for SSI-exemption

Income generated from sale of carbon credits won't be eligible for sec. 80-IA relief

IT/ILT : Where assessee deputed some of its employees to AE to render services of commercial value, TPO was justified in making addition to assessee's ALP holding that a markup of 5 per cent should have been charged in addition to reimbursement of salary expenses by AE

CLB rejects arbitration application as shareholder's agreement required mutual consent of parties

Arbitration Act: Where respondent No. 2 filed instant application for referring parties to arbitration, since in terms of SHA referral to arbitration was possible only by mutual consent of parties which was absent, instant application was to be rejected

No interest if block return was filed belatedly due to delay on part of revenue to supply copy of se

IT: Where income was computed by applying GP rate, section 40A(3) could not be invoked

No appeal lies before Tribunal against pre-deposit order of Commissioner (Appeal)

Service Tax : No appeal lies against pre-deposit order of Commissioner (Appeals); further, if pre-deposit order is not challenged in appropriate proceedings, same continues to be valid and non-compliance therewith would lead to dismissal of appeal, which also cannot be challenged before Tribunal

Excise demand couldn’t be enforced on ground that process of converting raw materials wasn’t economi

Excise & Customs : Demand cannot be confirmed on conjectures and surmises and, therefore, ground that process claimed to have been adopted by assessee is not economically viable cannot lead to confirmation of demand

Penalties to be waived off if there was uncertainty as to levy of ST on commission received by auto

Excise & Customs : Where defective finished goods are returned back to assessee and used in process of re-manufacture, said goods are eligible for credit as input

Business losses can be set off against undisclosed income under sec. 68, says ITAT

IT: Set off of business loss against addition under section 68 to be allowed

Govt. notifies 49% FDI cap in defence sector

FDI/FEMA/ILT : Review of The Policy on FDI in Defence Sector – Amendment in Consolidated FDI Policy Circular 2014 effective from 17-4-2014

Cenvat credit available for event management services availed for meeting of dealers even if organis

Cenvat Credit : Event management services availed to facilitate organisation of a dealer/retailer meet for promotion, marketing, advertisement and promotion of products are eligible for credit, even though event is held in temple premises

Payment of interest by Indian branch to its overseas head-office wasn’t taxable on grounds of mutual

IT/ILT : In case of assessee, a non-resident bank, interest paid by Indian branch to Head Office and overseas branches was not taxable in India on principles of mutuality and, therefore, tax was not required to be deducted at source while making said payments

HC ordered winding up of Co. as it failed to pay salary to its CEO after losing its commercial subst

CL : Where even after publishing date of final hearing and notice having been served respondent-company had not responded to same, respondent company was not a going concern and had lost its commercial substratum which lead to only one conclusion that respondent company was not in a position to pay dues of petitioner employee and, therefore, respondent company was to be wound up

CCI imposes Rs 2,500 crore penalty on Car Cos for indulging in unfair trade practices in spare parts

Competition Act : Each original equipment manufacturer (OEM) is a 100 per cent dominant entity in aftermarket for its genuine spare parts and diagnostic tools and correspondingly in aftermarket for repair services of its brand of automobiles

Shipping Cost Of Indian Exports Twice As High Vs China

Shipping costs incurred by Indian exporters is twice as high compared to those of China and thrice of Singapore, putting the country at a disadvantage in global trade, a study has found.

The study by industry body Assocham observed that the high cost of logistics could hit India's competitiveness."Shipping a container from India costs close to USD 1,200 while from China, it is in the range of USD 600 and Singapore about USD 400," the Assocham study said, citing World Bank data.

Likewise, the turnaround time at India's best port, JNPT in Mumbai that handles over 50 per cent of the country's containers, is 1.1 days (36 hours) while it is less than 12 hours in Singapore, Dubai, Shanghai and Colombo.

"If we want to become an exporting nation with a strong manufacturing base, Indian logistics infrastructure be it ports, airports, roads or rail network, these must be of international class, built seamlessly through the entire system," Assocham President Rana Kapoor said.

According to the study, India's port handling charges are much higher while its logistics systems are under-performing compared to China, Thailand, South Korea, Malaysia and OECD (Organisation for Economic Co-operation and Development) countries.

Delay in transporting goods is a major irritant for businesses engaged in trade within India as well as those exporting abroad from the country. Presently, there are 177 inter-state checkposts and 268 toll plazas across national highways, leading to costly delays, the study said.

"Technological solutions like smart cards for toll payments and pre-paid state taxes through online mode are required without delay. In fact, the success of the much awaited Goods and Services Tax (GST) will also depend on having an efficient inter-state transport system," it said.

Source:- business-standard.com

India's Jeera Exports Up 15% During April-July

India's jeera (cumin) exports has crossed 50,000 tonnes in the first four months of 2014-15, a rise of 15 per cent from the corresponding period of the previous year, industry sources said.

While, country's total jeera exports in 2013-14 (Apr-Mar) rose by 42 per cent to 121,500 tonnes from 85,602 tonnes in 2012-13.

Industry sources said export of Jeera from April to July this year would exceed 51,000 tonnes as against 44,000 tonnes in same period of 2013.

"Other jeera producing countries like Turkey, Syria and Iran have short crop. Moreover, geo-political tension in these countries have diverted demand to India over the last two years and consequently, we have witnessed good export demand," said Girish Brahmbhatt, chairman, Indian Spice and Foodstuff Exporters Association (ISFEA).

Demand for jeera has increased from across the world. There was good demand from West Asian countries before Ramzan. Also, there has been good demand from western countries which have ignored to buy jeera from Syria and Iran owing to geo-political tension.

"India is providing superior quality jeera than other producing countries at lower price which has attracted the international market. Right now, export demand is not much but it is expected to increase from next month," said Jitendra Adani, a leading trader and exporter from Rajkot.

Despite strong export demand from other countries, price of jeera has more or less remained stable because of high production. Traders and exporters expected 357,500 tonnes jeera production in 2013-14. However, it was around 302,500 tonnes. Over the last few months, jeera prices have traded between Rs 1,800 and Rs 2,400 per 20 kg in Unjha market. Presently, jeera price is ruling between Rs 1,755 and Rs 2,200 per 20 kg.

Source:- business-standard.com

Erection/installation of storage tanks not covered under BAS if its fabrication amounted to manufact

Service Tax : Fabrication of storage tanks and structures amounts to manufacture and their erection and installation is, therefore, not covered by Business Auxiliary Service

HC directs AO to verify undisclosed bank transactions of assessee for determining his undisclosed in

IT : Where Commissioner gave a number of opportunities of being heard to assessee, revision order could not be assailed for not following principle of natural justice

Rupee Strengthens Marginally Against Dollar To 60.52 Per Dollar

The Indian rupee strengthened from its previous close on Tuesday afternoon, tracking other Asian currencies.At 2.35pm, the home currency was trading at 60.5225 a dollar, up 0.07% from its previous close of 60.565.

The local unit opened at 60.535 and strengthened as much as 60.4737 in morning trades.The dollar index, which measures the US currency’s strength against major currencies, was trading at 82.544, down 0.01% from the previous close of 82.549.

Since the beginning of this year, the rupee has gained 2.12%, while foreign institutional investors have bought $12.77 billion during the period from local equity markets.

The 30-share benchmark S&P BSE Sensex slipped for the first time in four days, falling 0.32% to 26,353.15 points while the National Stock Exchange’s broader 50-share Nifty lost 0.39% to 7,963.30 points.

The yield on India’s 10-year benchmark bond was trading at 8.557%, compared with its Monday’s close of 8.559%. Bond yields and prices move in opposite directions.

The government will issue gross domestic product (GDP) data for the June quarter on 29 August. According to analysts estimates, GDP growth will touch 5.5% for the June quarter from 4.6% in March quarter. The Controller General of Accounts will release fiscal deficit data for July on 28 August.

Source;-livemint.com

‘Servo Steerol C-6’ used as cooling and friction reducing product is a ‘lubricating preparation’, sa

Excise & Customs : 'Servo Steerol C-6' used as cooling and friction reducing product during cold rolling and mild and medium carbon steels is a 'lubricating preparation' and eligible for concessional rate of duty under Notification No. 12/94-CE

ITAT couldn’t set aside sec. 69A disallowance for bogus transaction without considering statements o

IT : Where Assessing Officer having found that transaction of purchase and sale were bogus, made addition under section 69A, Tribunal was not justified in deleting addition without going into evidence on record

Now Govt. can impose restrictions on service providers as well to prevent misuse of Cenvat credit

CENVAT CREDIT : Cenvat Credit (Seventh Amendment) Rules, 2014 – Amendment in Rule 12AAA

Govt. prescribes exchange rate under service taw law on basis of GAAP; applicable from 1-10-2014

ST LAWS : Service Tax (Second Amendment) Rules, 2014 – Insertion of Rule 11

Levy of ST on radio taxis/sale of space for advertisement other than in print media to be effective

ST LAWS : Finance (No.2) Act, 2014 - Enforcement of Provisions of – Notified Date on Which Specified Provisions of Section 114 of the Said Act Shall Come Into Force

Sale of Patasa, harda and sakaria doesn’t fall in category of sugar; their sales are exempt from VAT

CST & VAT: Where assessee dealt in patasa, harda and sakaria, said items were not sugar and sales of same were exempted from payment of tax

ITAT allows depreciation on intangibles transferred on succession of business of a Co. on going conc

IT : Where assessee had taken over business of a company as a going concern and trademark of such company was continuously used by assessee, depreciation on such intangible assets to be allowed to assessee

Govt. hikes minimum public shareholding limit from 10% to 25% for listed Public Sector Cos

SEBI : Securities Contracts (Regulation) (Second Amendment) Rules, 2014 – Amendment in Rule 19A

SEBI releases revised format for continual disclosures under Acquisition and Takeover regulations

SEBI : Formats for Disclosure under Regulation 30 of SEBI (Substantial Acquistion of Shares and Takeovers) Regulations, 2011

Income from resale of goods bought from holding co. not taxable if its subsidiary won’t constitute i

IT/ILT : Where assessee, purchased raw materials and spares from its holding company located abroad, in view of fact that assessee did not constitute agency PE of holding company in India, no taxable income accrued to holding company on account of sales in India and, thus, assessee was not liable to deduct tax at source while making payments to holding company

HC directs builder to repay booking sum with interest on his failure to deliver possession of flat i

CL : In a winding up petition developer was directed to pay booking amount with interest on its failure to deliver possession of flat to allottee

Payment to group company for use of intranet facility is 'royalty', Karnataka HC says

IT/ILT: Where assessee, engaged in rendering information technology solutions to companies within CGI Group and other global customers, entered into an agreement with CGI Group Inc., a Canada based company, whereby assessee got a right to use intranet facilities belonging to Canadian company for rendering aforesaid services, payment made by assessee for utilising those facilities amounted to royalty liable to tax in India

Assisting clients in executing export orders and marketing of products weren’t Management Consultanc

Service Tax : Mere helping a client in executing export orders or in selecting granite blocks is not covered by Management Consultancy Service, as there is no element of any consultancy with objective of management, etc.

Calcutta HC rejects appeal against order of Bangalore ITAT which was appealable before Karnataka HC

IT : Appeal against order of Appellate Tribunal, Bangalore can be filed only in Karnataka High Court

Revenue had to refer matter to licensing authority on violating Foreign trade policy than taking act

Excise & Customs : Where assessee has violated any terms and conditions of advance authorisation/licenses, revenue should refer matter to Licensing Authority/DGFT for appropriate action rather than taking action suo motu

No sec. 69C disallowance if assessee had explained source of exp. and furnished PAN and TDS certific

IT : Where assessee had explained source of expenditure and had furnished complete details of expenditure such as name of parties to whom payment had been made, their address, PAN, amount paid, copy of TDS certificate etc., no disallowance could be made under section 69C

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F. No.437/94/2014-Cus IV

Government of India

Ministry of Finance

Department of Revenue

(Central Board Excise & Customs)

*****

New Delhi, dated 25 th August, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as

amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of

1962), the Board hereby assigns the Show Cause Notice DRI F.No.65/KOL/APP/

2012/1396-1421 dated 04.04.2014 issued by Additional Director General, Directorate of

Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s Vedika Metals

Private Ltd., 201, Annapurna Building, Shyam Kunj Complex, 12A, Lord Sinha Road,

Kolkata and others to the Commissioner of Customs (Port), 15/1, Strand Road, Custom

House, Kolkata for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Kolkata

Zonal Unit, 8, Ho Chi-Minh Sarani, Kolkata-700071

2. The Commissioner of Customs, (Port), Custom House, 15/1, Strand Road, Kolkata-

700001

3. The Additional Commissioner of Customs (Port), Custom House, 15/1, Strand

Road, Kolkata-700001

4. The Additional Commissioner of Customs (Airport), Custom House, 15/1, Strand

Road, Kolkata-700001

5. webmaster.cbec@icegate.gov.in.