IT : Where show-cause notice issued is on one ground and revisional order is passed on an entirely different ground, order cannot be sustained in law
Sunday 30 March 2014
Commissioner couldn't consider factor other than those statutorily laid down to waive or reduce pena
IT: While considering prayer for reduction/waiver of penalty, Commissioner shall consider factors enumerated in section 18B and no other factor
Special law providing for tax on sale of alcohol is a 'sales tax law' for purpose of CST Act
CST & VAT : 'United Provinces Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939' is a sales tax law within meaning of section 2(i) of CST Act and therefore, if sale of alcohol is liable to tax thereunder, then, it cannot be exempted from CST under section 8(2A) of CST Act
Leather Exports Up 17.5% In April-Jan
Leather exports from the country have increased by 17.5 per cent during the April-January period of this fiscal against the comparable period of the 2012-13 financial year, according to data from the Directorate General of Commercial Intelligence & Statistics.
Shipments increased to $4,861.29 million (? 29,301.6 crore) against $4,138.13 million ( ?22,542.74 crore), bolstered chiefly by leather footwear exports which contributed an increase of $244.53 million.
Germany kept its position as the top importer, buying 13.09 per cent of the goods exported, while the US and the UK bought close to 11.5 per cent each.
Rafeeque Ahmed, President, Federation of Indian Export Organisations, said efforts are on to find buyers in China. “China is now a buyer of top branded products manufactured in India. Now, the effort is to popularise other finished goods manufactured and designed in India.”
China, contributed to only 2.6 per cent of the total exports during the April-January period.
He also said India will meet its target of $6 billion in exports during fiscal 2013-14. “During February-March, exports usually rush to meet deadlines, which lead to a spurt in shipments,” he explained.
Another industry person requesting anonymity said the Tamil Nadu Pollution Control Board’s move to close down tanneries in Tamil Nadu over environmental violations last year has cut back output by close to 20 per cent. He said the industry is recouping, and may scale up production once proper Zero Liquid Discharge Systems are in place.
Source:- thehindubusinessline.com
Indian Iron Ore Imports See Sharp Fall In 2013-14
Business Standard reported that after seeing a record rise in 2012-013, India’s iron ore imports have plunged to a 5 year low so far this financial year.
In the first 11 months of 2013-14, steel mills and sponge iron makers together imported 420,000 tonne of iron ore, primarily lumps, a decline of 86.2% compared with 3.05 million tonnes in 2012-13.
Various factors such as depreciation of the rupee against the dollar, higher prices in the spot market and improved supply in the domestic market contributed to the decline in imports
Source:- steelguru.com
Sum incurred couldn't be disallowed if TDS deducted therefrom was deposited before return filing due
IT: In view of retrospective amendment in section 40(a)(ia), deduction made in last month of financial year would be allowable, if same was deposited before filing of return under section 139(1)
Mere appointment as an agent doesn't entitle him to claim deduction in respect of project of his pri
IT: Concurrent findings of authorities disallowing benefit of deduction to assessee in respect of project of sister concern was to be accepted
Entity engaged in diversified activities excluded from comparable list as its segmental report weren
IT/ILT : Where in course of transfer pricing proceedings, TPO made certain adjustment to assessee's ALP, in view of fact that one of comparables selected by TPO was engaged in diversified activities but segmental reporting was not available, it was to be concluded that said comparable was to be excluded while determining ALP on account of functional difference and, matter was to be remanded back for disposal afresh
Packing of fertilizers not liable to ST under Packing Activity Services as it was integral part of m
Service Tax : Packaging of fertiliser as per Fertiliser (Control) Order, 1985 is an integral part of manufacture, as fertiliser cannot be marketed without it; therefore, said activity could not be regarded as 'service' under Packaging Activity Services
CCI ordered investigation against Western Coalfields Ltd. as it was dominant player in market of non
Competition Law : Where opposite parties were sole and dominant players in market of sale of non-coking coal for power generation in India, their conduct was to be investigated for alleged contravention of Act
Auto Parts Exports From India Up 4.4 Per Cent At $9.7 Bn In 2013
At a time when the Indian auto industry is reeling under a prolonged slump, the component makers have something to cheer as exports grew by 4.4 per cent to touch $9.69 billion in 2013.
Despite a decline in import by five per cent to $12.70 billion last year, the country remained a net importer of components, according to latest data issued by Automotive Component Manufacturers Association of India (ACMA).
Commenting on the rise in exports, ACMA Executive Director Vinnie Mehta told PTI: "80 per cent of our exports are to global original equipment manufacturers (OEMs) and tier I companies. Growing credibility of domestic component makers have led to many global companies setting up their sourcing centres in India."
There are 35-40 international purchasing offices set up by various global entities in India now, he added.
The US remains India's biggest component export market but shipments to the country were down 7.1 per cent last year at $1.98 billion. Exports to Germany, the second largest market, registered 8.6 per cent increase at $780 million, while it was up 3.6 per cent to the UK, the third largest, at 580 million.
On the imports front, Mehta said: "The decline in numbers are largely a reflection of the slowdown in the Indian automobile market."
In 2013, China continued to be the number one country from where maximum components were imported, valued at $2.62 billion, up 10 per cent from the previous year.
Germany was second at $1.86 billion, down 3 per cent, followed by Japan at $1.62 billion, down 14 per cent.
India's components imports are mainly in two categories -- high tech parts which come mainly from Germany, Japan, Korea and Thailand; and aftermarket parts which are usually originating from China.
Annual car sales in India had declined for the first time in 11 years in 2013, posting a 9.59 per cent dip with the auto industry reeling under a prolonged demand slump due to the economic slowdown.
According to the Society of Indian Automobile Industry (SIAM), domestic car sales fell to 18,07,011 units in 2013 from 19,98,703 units in the previous year.
When asked about the prospects in 2014, Mehta said: "It is really difficult to predict but we don't see the market bouncing back soon, as even after the formation of a new government it will take at least six months to stabilise."He, however, hoped that there should be some uptick in the October-December quarter.
Source:- economictimes.indiatimes.com
Needed Devolving In Excise Rules
Last week, the Union government decentralised the power to impose restrictions on certain facilities when a manufacturer or a first-stage or second-stage dealer or an exporter commits certain types of offences. Earlier, only the member (central excise) of the Central Board of Excise and Customs (CBEC) could impose the restrictions. Now, that power has been given to chief commissioners of central excise.
Rule 12CC of the Central Excise Rules, 2002, and Rule 12AA of the Cenvat Credit Rules, 2004, were first introduced on December 30, 2006, empowering an officer authorised by CBEC to impose restrictions on defaulters. Specified as serious offences were removal of goods without the cover of an invoice and without payment of duty, without declaring the correct value for payment of duty, and where a portion of sale price, in excess of invoice price, is received by the assessee or on his behalf but not accounted for in the books of account. Also, taking of Cenvat credit without the receipt of goods specified in the document based on which the said credit has been taken, taking it on invoices or other documents apparently not genuine. Plus, issue of excise duty invoice without delivery of goods specified in the said invoice and claiming of refund or rebate, based on the said invoice or other documents which a person has reason to believe as not genuine.
The deterrent was to withdraw the facility of monthly payment of duties, making it compulsory for the assessee to pay excise duty for each consignment at the time of removal of goods. And, to withdraw the facility for payment of duty by utilisation of Cenvat credit. The restrictions could be imposed only in cases where the duty or Cenvat credit involved in the specified offences exceeded Rs 10 lakh. Time limits for the restrictions to be in force were also laid down.
These restrictions were challenged in courts on technical grounds. In the case of Dhariyal Chemicals [2009 (234) ELT 0208 (Guj.)], the Gujarat high court rejected a challenge to the Constitutional validity of the rules and the notifications. However, in the case of Aryn Ispat and Power Pvt Ltd [2012 (281) ELT 15 (Ori.), the Odisha high court held the Rules 12CC of the CE Rules, 2002, and Rule 12AA of the CC Rules, 2004, notified in the year 2006, were without any authority of law. The government's appeal against that judgment was admitted by the Supreme Court [2013 (295) ELT A22 (SC)]. After the Gujarat HC judgement but before the Odisha one, the government got the necessary amendments made through the Finance Act, 2010, and issued fresh notifications on March 12, 2012.
The recent amendment placing the powers to impose restrictions on facilities in the case of specified offences in the hands of chief commissioners will facilitate personal hearings closer to where the assessee is located and help in quicker decisions. The defaults noticed at the ground level and recommendations to impose the restrictions need not be taken right up to the CBEC. Similarly, an assessee need not go to Delhi to appear in personal hearings to only state one's case.
Source:- business-standard.com
Electronic Data Interchange To Ease Export To Pak Inaugurated
With a view to facilitate trade through Integrated Check Post (ICP) at Attari and to cut down the transaction cost of exporters, custom commissioner Sunil Sawhney inaugurated an electronic data interchange (EDI) on Saturday.
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On the occasion, exporters and senior officials of various concerned agencies like National Informatics Centre (NIC), Land Port Authority of India, Central Warehousing Corporation and Border Security Force (BSF) were also present.
"The latest version of this system called ICES 1.5 (Indian Customs EDI System) is now available at ICP, Attari, which has been successfully launched with the joint efforts of the officers of customs and NIC,"said Sawhney.
"ICES is an automation system for processing of documents submitted for clearance of cargo meant for international trade,"he added.
"Traders sitting at home can file their documents, which is reviewed by various levels of officers at various stages of processing. The interaction between the trades and officers is reduced to the minimum and the traders can view the status of the documents online through IceGate (e-Commerce Portal of Central Board of Excise & Customs) web site 'icegate.gov.in',"he said.
Sawhney said, "While reducing the dwell time for export and cutting transaction costs, this system also enhances the efficiency of the department and reduces the chances of frauds which are often observed during manual operations."
"This system also facilitates the integration of documents with other agencies such as DGFT (Directorate General of Foreign Trade), banks as well as custodian of cargo, making the trade hassle free. After full implementation of the system shortly, the exporters, who are exporting their goods to Pakistan, while availing various export incentives, would directly get the export incentive credited to their bank accounts,"he added.
The customs commissioner said the Amritsar customs commissionerate was planning to extend this system for imports also. "This move of the customs department is also a step forwarded in promoting around the clock trade at the Attari-Wagah border,"he added.
Source:- hindustantimes.com
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