HC of State where first court was situated is correct authority for appeal; situs of Tribunal won't

Excise & Customs : High Court situated in State where first court is located should be considered to be appropriate appellate authority and situs of Tribunal is not determinative factor for said purpose

Does withholding of tax guarantees deduction HC deleted disallowance of exp. as tax was deducted the

IT: Where TDS was deducted on payments made to sub-contractors and other details were also furnished expenditure was to be allowed

HC condoned delay in filing appeal as reasons for delay were explained by revenue and it involved hu

CST & VAT: Where revenue filed appeal before High Court late by 924 day and sought condonation of delay, since not only delay was explained by revenue but monetary impact in terms of tax involved was also considerable, delay deserved to be condoned

Dishonour of post-dated cheque proves fatal; HC admits winding-up petition on ground of failure to p

Banking Laws : Where respondent company issued post dated cheques to discharge its outstanding dues to petitioner-company and same were dishonoured, objections taken on behalf of respondent company were without merit and hence winding up petition was to be admitted

ALP can't be computed on consolidated basis under TNM Method by merging diverse international transa

IT/ILT: While applying TNMM, assessee cannot combine various international transactions for determining ALP on a consolidated basis

Russia's New Crop Wheat Price Seen Down

Russia's wheat export prices are expected to fall by 7 percent from current levels when the new crop starts to arrive on the market in large volumes in July, the Institute for Agricultural Market Studies (IKAR) said in a note on Monday.



Russia, expected to be the world's fifth-largest wheat exporter this season, is shipping modest volumes now after massive supplies in previous months have cut into its stocks. The country shipped more than 16.5 million tonnes of wheat between the start of the 2013/14 season on July 1 and April 20, IKAR said. By the end of the season, Russia will export an additional 1 million tonnes, it added.



Future prices for the new wheat crop with 12.5 percent protein content are quoted by market participants at $270 per tonne on a free-on-board (FOB) basis in the Black Sea now, IKAR said. That is its first estimate for the price of the new crop. Southern Federal District, the country's main wheat-exporting region, usually starts the harvesting campaign in June.



For the old crop, the tension between Russia and Ukraine, which are adding to concerns over supplies from the Black Sea, continued to lend support to prices last week. Prices for old crop wheat with 12.5 percent protein content rose $2 to $291 per tonne last week on the FOB basis in the Black Sea, IKAR said. Russia's spring grains sowing campaign has continued to proceed faster than last year thanks to the dry weather, and farmers expect to sow a larger area for sunflower and maize (corn) this year, agriculture analytical firm SovEcon said.



Farmers had sown 5.3 million hectares as of April 25, or 16.5 percent of the whole planned area for spring grains, which was 1.2 million hectares more than on the same day a year ago, according to data from the Agriculture Ministry. Spring wheat was sown on 498,400 hectares (3.8 percent of the whole planned area), barley - 2.9 million hectares (33.6 percent), maize - 801,000 hectares (30.9 percent) and sunflower - 1.2 million hectares (17.4 percent).



Market participants expect the first new crop grain - winter barley - to arrive on the market in mid-June, earlier than usual and thanks to an early spring, SovEcon said. It estimated that Russian sunflower seed prices declined by 100 roubles to 13,125 roubles ($360) a tonne at the end of last week. IKAR pegged its sunseed price index at $379 per tonne, up $4. Export prices for sunflower oil were flat, at $870-880 a tonne on the FOB basis in the Black Sea, according to SovEcon. The white sugar price index in Russia's South was flat at 27,950 roubles ($780) per tonne last week, IKAR added.

Source:- brecorder.com

Indian Steel Prices In For Windfall Gain On Input Shortage

The splendid run in long and flat steel might be escalating in the coming days. Going by the direction and mood of Supreme Court in recently it seems iron ore production will be curtailed severely after scrapping of all deemed lease after 2007.

Judgment on Goa mining heralding peril today’s observation on Orissa mining inched closer to disaster. SC firmly indicated at Goa-style ban on all mining in Odisha for three months till the state government sorted out all mining illegalities and granted fresh leases.

Suspense remained with the court reserving its order. Of the 56 operating leases in Odisha, 26 fall under second and subsequent renewal. This include six of Tata Steel's iron and manganese leases and three of SAIL's, leases held by Roongta's mines. Aditya Birla group's Essel Mining, a mine owned by KJS Ahluwalia and two mines owned by state-owned PSU Orissa Mining Corporation.

In Goa the permission to mine 20 million tonne will be ineffectual as except for Vedanta-Sterlite most of the other miners will suffer the axe.

If this were to come out true Indian steel mills will be starved of iron ore and sponge iron leading to production shortage as the capacity utilization will decline. Odisha caters to nearly 50% of iron ore production in the country.

The secondary sector contributes nearly 30% of crude steel production but more than 60% of long steel production. This sector is dependent on imported scrap (4.5 million tonnes) and sponge iron about 23-24 million tonne. Moreover the primary sector steel production is solely dependent on iron ore.

Indian steel price have gained 4% since January. Trend remains up as the cost of production has led to hiked conversion cost by INR 1000-1500 per tonne from scrap/sponge iron to ingot and TMT.

Imported Scrap offers from European suppliers have gone upto USD 8-10 per tonne on anticipation of GRI (General Rate Increase) on freight of container transportation from Europe to Asian countries to be implemented in the month of May ’14. Moreover with domestic consumption of scrap going up in European and US market its availability is likely to be restricted in the coming months .Current offers are hovering at USD 385-390/MT CFR Mumbai against USD 380-385/MT CFR last week for HMS 1&2 and USD 405-408/MT CFR Mumbai for Shredded Scrap.

Flat steel price levels despite looming threat from cheap Chinese imports has maintained parity gap of around INR 3000 per tonne and is unlikely to decline in the coming days if shortage becomes reality. Moreover with summer demand from white good sector picking up price will be ascendant.

In all steel market in India is held on tenterhooks by the Supreme Court rather than by market fundamentals of demand and supply. Heady days are ahead for the steel price levels. Moreover with stable government being formed the prospects of economic and monetary reforms becoming brighter demand from construction, auto, white good sector will pick up giving much desired traction.

Source:- steelguru.com

Rental income from business of letting out of commercial property would be treated as business recei

IT: Where assessee carried on business of letting out commercial property rental income therefrom, would be assessable as business income

Existence of prima-facie case isn't enough to waive off pre-deposit in absence of financial hardship

Excise & Customs : Prima facie case is not sole criteria for deciding pre-deposit, but financial hardship has also to be considered side by side and it is wrong to say that financial difficulty is a subordinate criteria

Dream Knitwear Technology Mission Project To Become Reality Next Week

The long awaited Knitwear Technology Mission in nearby Tirupur to promote product and fabric diversification and value addition across the apparel value chain, would become a reality from May six.

The Rs 13 crore Mission Center, under the aegis of Apparel Export Promotion Council, would offer necessary services to trade and industry to develop innovative apparel categories for sports wear, swimwear and varieties of performance wear mainly from man-made fibres like polyester and nylon, A Shaktivel, Chairman, KTM, told reporters last night at Trirupur.

With majority of the countries now going for high fashion wear from man made fibre yarn, as against almost 95 per cent cotton yarn in India, KTM has imported latest version of Tricot Warp knitting machine from Germany, which can be utilised by Indian apparel exporting community for their sampling needs, he said.

As there was huge market for sports wear and swim wear, crossing 75 to 80 billion dollars, Indian exporters can tap these markets, Shaktivel said.

Stating that the Council has recently discussed with the textile ministry the issue of expanding the Centre and also more funds, he said Zohra Chatterji, Secretary, Union textile ministry, will inaugurate the Centre.

KTM Centre would also impart consultancy and training in the fields of knitting, processing, garmenting, CAD/fashion designing, new product development, testing and consultancy for yarn and fabrics, he said, adding, it has a facility to train at least 5,000 personnel every year.

Source:- economictimes.indiatimes.com

Erratic Weather To Trim India's 2014 Tea Output, Exports

Tea output in India's top-producing Assam state is likely to fall by 10 percent in 2014 due to scanty rainfall and a sharp rise in temperatures, hitting exports of premium grade leaf from the world's biggest black tea producer, industry officials said.

A drop in India's production and exports could push up global prices and boost shipments from competing countries like Kenya, Sri Lanka and Vietnam.

India's north-eastern Assam state produced 618 million kg tea in 2013, more-than half of the country's total production of 1,200 million kg.

"We have lost production since the start of the year due to extreme dry weather. There could be a 10 percent drop in production this year," Rajib Barooah, chairman of Assam Tea Planters' Association, told Reuters.

"Higher temperatures are hitting the growth of tea bushes. There is a concern of pest infestation due to erratic weather."

In Assam and West Bengal, the country's second-biggest tea producer, temperatures were hovering 2 to 5 degrees Celsius above normal, the weather department said on Tuesday.

"Tea plantations badly need rainfall. Further dryness will increase crop damage," said Sujit Patra, joint secretary at the Indian Tea Association.

Tea production in West Bengal, centred on Darjeeeling tea gardens known for their superior quality, could drop if adverse weather conditions prevail for next few weeks, Patra said.

From March 1 to April 23, Assam received 69 percent less rainfall than normal, while rainfall in West Bengal was 63 percent below average. The two states accounted for nearly 80 percent of the tea production last year.

Rainfall in March and April determines production in May and June, when Indian tea gardens produce their premier second flush crop.

"Quality-wise second flush is the best and most sought by exporters. If its production and quality goes down, then obviously it will have a negative impact on exports," Barooah said.

India's tea exports rose 2 percent to 212 million kg in 2013 due to higher purchases from Iran.

India exports CTC (crush-tear-curl) tea mainly to Egypt, Pakistan and the UK, and orthodox variety to Iraq, Iran and Russia.

"Early onset of the monsoon and average rainfall could limit the crop damage. But if the monsoon remains patchy as forecast by weather department, then production would suffer in the second half of the year," said a researcher at Tea Research Association.

India usually produces the bulk of its tea in the second half of the year. The country is likely to receive below-average rainfall in 2014, the government's weather office said on Thursday, citing a risk to the June-September monsoon rain season from the El Nino weather pattern.

Adverse weather could trim tea output at the world's biggest tea producer McLeod Russel and Jay Shree Tea and Industries as they have plantations in Assam and West Bengal. But the impact on earnings would be limited due to a likely rise in tea prices.

"On auction platforms we are getting lower supplies than last year and this is being reflected in tea prices," Kalyan Sundaram, secretary of Calcutta Tea Traders Association, said.

Source:- in.reuters.com

Reviving Indian Manufacturing May Not Be Easy

The economic policy discourse in India, which is on the cusp of getting a new government, is considerably devoted to stimulating large-scale manufacturing.

Historically, this has been the route to absorb a vast pool of surplus labour, otherwise engaged in low-productivity agriculture. However, for various reasons, India has leapfrogged the development trajectory—from agriculture to manufacturing and then, services. As such, unlike in the past when agriculture provided bulk of the gross domestic product (GDP), now it is the services sector, which has far lower employment capacity. As manufacturing is capable of generating more jobs per unit of output, hence the focus.

However, going by past trends, this may not be so easy. Consider the five years to 2007-08, a period of India’s strongest ever growth, 8.9% each year. Manufacturing grew at an annual average rate of 10% in real terms. It also contributed to more than half the increase in private investment, which grew by an annual average of 17%, adjusted for inflation; and spending on machinery and equipment, which directly reflects manufacturing demand, grew at a much faster pace, 31%. Despite this spectacular performance, how much did its share of the GDP pie increase? Just one percentage point!

Global demand is critical in uplifting Indian manufacturing to another level altogether. In the aforesaid period, world output growth was unprecedented, an average 5% annually, outstripping the previous record average of 4% over 1984-89. This fuelled robust growth of Indian exports, which grew 22% each year. Even though direct exports account for just 15% of manufacturing output, manufacturing growth correlates very strongly with lagged export growth (over 2000-10 period), reflecting globalization effects.

But the external environment is far less compelling now; the International Monetary Fund forecasts a much slower pace of world output—3.6% in 2014 (from 3% last year) and then inching up to 3.9% in 2015. Foreign demand structures are changing too. Advanced countries are growing more on the strength of their exports to the developing world, whose exports are projected to grow at a relatively slower pace. That’s one reason for concern in the medium-term.

It is hard to reorient manufacturing towards the domestic market in a short while especially at a time when large-scale foreign direct investment into export-oriented industries has completely bypassed India. Moreover, structural and institutional changes, like better infrastructures, labour market flexibility and so on, requires attracting foreign capital, which again takes time.

In the near term therefore, the best strategy is to expand export shares in other directions—from the established markets in the developed countries to emerging economies and other developing countries. Macroeconomic policies must be suitable too; in a world where almost all currencies have weakened equally, the challenge is to preserve competitiveness.

Indian manufacturing has steadily lost competitiveness since the start of the millennium. Losses are comparatively much higher in some areas, e.g., textiles, which exports two-fifths of its output, adds 14% to industrial production and employs nearly 8% of labour force. Such trends must have a bearing upon policy settings to revive manufacturing.

Source:- livemint.com

Testing Firm Tuv Sud Witnesses Surge In Business From Indian Seafood Sector

Certification and testing agency TUV SUD has observed a surge in business from Indian seafood sector in last 12 months. The seafood export industry is showing signs of recovery after initial hiccups in the past few years when the European Union, Japan and US tightened inspection norms for marine products.

With seafood exports growing exponentially, there has been an increasing need for third party testing and inspection agencies who can help businesses adhere to stringent import norms.

With the government setting up a new breeding centre, tiger shrimp aquaculture in India is set to increase by one lakh tonnes annually with an export value of $1 billion. India's seafood exports recently crossed the one million tonne mark for the first time in history, clearly indicating calibrated growth of the marine exports in the country.

While many factors have contributed to this growth, quality assurance is one aspect that has progressively grown in precedence in the past decade. Seafood exporters are therefore increasingly seeking international third party quality assurance providers to improve the global acceptance of their consignments.

US and Japan being the largest importers of Indian shrimps, international third party assurance agencies provide the quality edge to exporters in India.

TUV SUD's services have helped seafood exporters minimise the risk of legal penalties and costly product recalls through globally acclaimed quality assurance services.

"Presence of antibiotics and unhygienic breeding conditions are some of the most common reasons for seafood consignments being rejected. Exporters in India are often found grappling with dynamic import norms in various countries, the most recent one being; Japan objecting to the levels of ethoxyquin, an anti-oxidant used as preservative in shrimp feed. Our services help exporters comply with the most updated import norms and thereby reduce the risk of large scale rejection of consignments. Seafood exports have a very strong potential of become huge foreign exchange earners for the country and the growth of our marine business is a testament of the growing seafood export sector in India." opines Dr. Pankaj Jaiminy, AVP, Food testing Services, TUV SUD South Asia.

Source:- economictimes.indiatimes.com

Indian Consumers Of The Fruit Rejoice, As European Union Bans Mango Imports

There is probably not even a kernel of truth in the importers' fear that the estimated 16 million Indian mangoes usually headed for Europe in the summer — as compared to the mere half-million aam Indians who apply for European visas annually — will be burned by despondent Indian exporters because of the impending EU ban on them from May 1.

Indeed, if El Nino leads to deficient monsoons in India, a bumper consignment of juicy mangoes in local markets courtesy the EU ban would certainly impart seasonal cheer to squeezed exporters and parched local consumers.

While Europeans' fear of desi parasites arriving as illegal immigrants along with the consignments has trumped their greed for mangoes, given India's population and predilection for the fruit, none will be left unconsumed.

However, Britain — and indeed all European governments who will have to implement the ban — should watch out for the rise of local aam aadmis or aficionados, as they are likely to be incensed by this denial of their basic right to access the "king of fruits" because of the Brussels bureaucracy.

Time is ripe for all sorts of revolutions and there is no telling what form this upsurge could take too, provoked by enticing images of their mango-sated counterparts elsewhere. After all, the adage goes, "If you can't lick 'em, join 'em".

Source:- economictimes.indiatimes.com

MCA releases list of new e-forms under 2013 Act alongwith corresponding e-forms under 1956 Act

COMPANIES ACT, 1956/ COMPANIES ACT, 2013 : Mapping of e-forms prescribed under the Companies Act, 2013 with e-forms prescribed under Companies Act, 1956

SEBI specifies requisite infrastructure and controls for proper functioning of FPI regime

SEBI : Infrastructure facilities and submission of periodic reports

Back to basics: Unabsorbed depreciation could be carried forward without fixed limit of 8 years, HC

IT: Unabsorbed depreciation of assessment years 1997-98 to 2001-02 could be allowed to be carried forward and set off even after a period of eight years, in view of amended section 32(2)

Work contracts for fixing metal crash barriers on roads to prevent accidents are liable to VAT at 2%

CST & VAT : Where assessee had undertaken a contract for preparing and installing metal crash barriers on both sides of roads for prevention of accidents, installation of such barriers was basically in nature of civil work of buildings which, in turn, was a part of construction of a road and, therefore, assessee was liable to pay tax at rate of 2 per cent as against 12 per cent demanded by Commissioner

Rupee Strengthens To 60.48 Amid Dollar Sales; Global Factors Weigh

The rupee was trading higher against the US dollar on Tuesday amid dollar sales by exporters in quiet trade as dealers awaited new cues.

At 2.45pm, the home currency was trading at 60.48 per dollar, up 0.27% from previous close. It opened at 60.62 and touched a high and a low of 60.43 and 60.64, respectively.

India’s benchmark index, S&P BSE Sensex, was trading at 22,529.93 points, down 0.45%.Traders were cautious ahead of the two-day US Federal Open Market Committee (FOMC) meeting starting later on Tuesday.

Dollar inflows from exporters supported the rupee.“Overall range-bound movement in the rupee is mainly dictated by global factors such as tensions in Ukraine while locally investors are awaiting the outcome of the elections,” India Forex Advisors, a local foreign exchange advisory firm, said in a note earlier on Tuesday.

Since the beginning of this year, the rupee has gained 2.23%, while foreign institutional investors (FIIs) have bought $5.05 billion during the period from local equity markets.The yield on India’s 10-year benchmark bond was trading at 8.855%, compared with its Monday’s close of 8.857%. Bond yields and prices move in opposite directions.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.632, down 0.06% from the previous close of 79.683.

Source:- livemint.com

New Exim Policy To Promote Exports - Imports Substitution'

The new government's Foreign Trade Policy (FTP) document will vigorously promote export as well as import substitution with equal emphasis and lay greater thrust on engaging the rest of the world with Indian pharma, engineering and other such products, said Sumeet Jerath, Additional DGFT, Centre Licensing Area (CLA).

Presiding over the Interactive Session of Members of PHD Chamber of Commerce and Industry with DGFT CLA on Niryat Bandhu Initiative in New Delhi on Monday, Jerath also disclosed that the DGFT's second committee report on reducing transaction cost was ready for public consumption and suggest a way forward as to how the new government should tackle the issues, relating to higher transaction cost to enable exporters achieve the desired level of exports to both developed and developing economies.

"India being part of WTO cannot only think in terms its export promotion without equally supporting import substitution. Therefore, the focus of the new Export & Import Policy would be to vigorously promote both exports and imports with significantly substantial focus on exports," said Jerath.

However, he assured the Indian industry that while the new government would deepen its external engagements with exploring potential markets, it would also make sure that domestic pharma industry gets a fair deal and not subjected to uncalled for regulations as happened with one of the leading pharma company of India recently. The domestic pharma exports would exceed to an extent of thousand of crores after the new EXIM Policy is put in place by the new government, indicated Jerath.

He also said that age old procedures and regulations, governing exporters would be trimmed and pruned to suit the exports requirements of the modern times so that the realistic targets for exports set from time to time are made achievable to enhance the contribution of Indian exports to its national GDP. In the meanwhile, it would be the attempt of the policy makers to take India’s share in global trade to over 5 percent from current level of 2 percent in next five year period for which the new government will unveil its foreign trade policy after constitution of 16th Lok Sabha.

In his welcome remarks, Alok B Shriram, Sr. Vice President, PHD Chamber demanded fair deal for exporters out of the new foreign trade policy and urged the policy makers to restore some of the export promotion policies that were earlier in vogue.

He also urged the officials of the DGFT present during the occasion that the new policies should be such as could help India deepen its external engagements with the rest of the world so that India makes a mark.

Source:- smetimes.in

ITAT denies sec. 80-IB relief as return was filed by assessee after due date specified under sec. 13

IT: Where assessee had sufficient reasons which prevented it from producing various documents before Assessing officer, documents sought to be admitted as additional evidence

Sugar cess paid as additional duty of customs on imported sugar is excise duty and eligible for cenv

Cenvat Credit : Sugar cess is tax, and to be precise it is 'duty of excise' and not 'fee'; it is a duty of excise on all sugar produced by any sugar factory in India

SC: Once an open offer is made through public announcement it can’t be withdrawn later if it becomes

CL : Whether an open offer voluntarily made through a Public Announcement for purchase of shares of the target company can be permitted to be withdrawn at a time when the voluntary open offer has become uneconomical to be performed. Held- No

Demurrage charges to be excluded from value of closing stock; rules ITAT

IT : Demurrage/detention charges were not liable for inclusion in valuation of closing stock

Pre-deposit requirement to be waived off if same issues were decided by HC in favour of assessee

CST & VAT : Pre-deposit must be waived by Tribunal, if identical issue decided finally by jurisdictional High Court

‘Ready to use’ rig isn’t an Installation PE as per India-USA DTAA; HC denies interpreting term ‘used

IT/ILT: The term'used'as specified in Article 5 of India-USA DTAA does not include 'ready to use' as specified by the Income-tax Act - Held Yes - When 'rig' was lying 'ready for use', it could not be considered as 'used' for purpose of said Article 5 - Held Yes -Whether the Tribunal had rightly concluded that the word 'used' as specified in said DTAA clarifies usage of an installation or structure for exploration of natural resources and if it was so used for a period of 120 days in 12 months, o

Issues concerning levy of custom duty and classification of goods were not appealable before the Hig

Excise & Customs : Where issues involved are levy of customs duty and classification of goods, grievance that 'Tribunal has not given a specific finding with regard to classification of goods' is also appealable before Supreme Court only, not High Court

Sec. 80-IB relief available to assessee manufacturing products which are essential for cigarettes ma

IT: Deduction under section 80-IB cannot be denied to an assessee who is in manufacturer of cigarette filter rods which are used for manufacture of filter cigarettes