Friday, 29 August 2014
Even prior to Sept. 10, 2004, ancillary services of tour operator were liable to service tax
CBDT directs officials to maintain appointment schedule with taxpayers in spirit of Citizen's Charte
HC sets aside rectification order of ITAT as it was made without analyzing disputed issues and relev
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
Exp. incurred by jeweller to enhance its brand image was in nature of revenue exp., says ITAT
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