Cenvat Credit : Claim for refund of input credit under rule 5 of CENVAT Credit Rules, 2002/2004 on exports under bond without payment of duty, cannot be rejected on ground that assessee could have exported goods on payment of duty utilizing credit.
Wednesday, 17 September 2014
HC orders partial payment of tax in installments considering the financial condition of assessee
IT : Considering assessee's request that its business was not good and it was not in a position to pay 50 per cent of total demanded tax as directed by Assessing Officer, assessee was directed to pay 25 per cent of total demanded tax in two instalments
India's Plastics Exports Set To Touch Usd 15 Billion By Fy 19
India's plastics exports are set to touch USD 15 billion by FY 2019 from the present USD 8 billion, a senior industry official said here on September 17.
"We see higher export growth in coming years. India's plastics exports are set to touch USD 15 billion by FY 2019. The country exported plastics worth USD 7.9 billion in FY 2014 and hopes to export of USD 9.5 billion in FY 2015," Plastics Export Promotion Council (Plexconcil) Executive Director, R P Kalyanpur told reporters here on September 17.
"Our largest markets for plastics export are European Union and US for processed plastics. We are now looking at entering into exports of houseware and consumer items which has huge demand in the US market," he said.
"We are also pushing for the Technology Upgradation Fund (TUF) and to establish plastic parks to encourage plastic industry in the country," he said. On the 12th edition of the Arabplast 2015, scheduled to be held in Dubai between January 10 and 13, 2015, Al Fajer Information and Services General Manager Satish Khanna said that the trade show would help Indian companies further expand their operations through a global platform. Around 150 Indian companies are expected to participate in the event, he said.
Source:- asianage.com
Indian Gold Imports Are Likely To Pick Up Even Further Ahead Of Festival Season
The world's second biggest bullion consuming nation India's gold imports advanced significantly by 176% year-over-year during August, said HSBC, citing government's trade data.
India's merchandise trade deficit widened to $10.8 billion in August from $10.7 billion last August as gold imports rose to $2.03 billion from $740 million for the same months, respectively.
Tight import restrictions imposed last year by the Reserve Bank of India hampered gold trade. The RBI relaxed some of those import restrictions to allow several private agencies to import metal.
However, the bulk of the restrictions have been kept in place despite optimism from jewelers and industry groups in India earlier this year over (Prime Minister) Narendra Modi's victory in the general elections, which was interpreted as friendly for the gold market. HSBC expects India's appetite for bullion likely to improve ahead of the gold buying holiday, Diwali, on 23 October.
According to Commerzbank, the reported trade deficit is in line with the government's plans – though this also means that the gold import restrictions will probably not be eased for the time being.
Commerzbank concurs with HSBC that "gold imports are likely to pick up even further ahead of the important religious festivals of Dhanteras and Diwali."
Source:- metal.com
Import Duty On Feedstock For Petrochemicals Be Fixed At Zero Rate To Boost Domestic Value Addition
India's trade imbalance with GCC to deteriorate with tariff elimination on petrochemicals under proposed FTA
There is an urgent need to fix import duty on feedstock for petrochemicals including naphtha, natural gas liquids (NGL), propane and butane at zero rate to make investments in this sector financially viable and encourage domestic value addition as currently all these feedstock have higher duty resulting in nil to negative protection to the sector, according to an ASSOCHAM study.
The import tariff for the next level of products can be at a slightly higher level with progressive increase in duty rates to encourage domestic value addition, more so as there are compelling reasons to remove the duty anomaly prevailing in the petrochemical sector so that domestic investment becomes financially viable, suggested a study titled 'Import Dependency of Indian Manufacturing,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Import duty rationalization across petrochemical value chain is imperative for increasing domestic capacities and reducing dependence on imports, said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the study.
The ASSOCHAM study has also warned that tariff elimination on key petrochemicals under the proposed FTA with six nation Gulf Cooperation Council (GCC) would result in massive surge in imports thereby further deteriorating India's existing trade imbalance with GCC countries.
India, owing to its limited production capacity, depends on imports for toluene to meet its demand and its geographical proximity to the GCC makes it vulnerable to threat from GCC imports as it has surplus exporting capacity of toluene and is increasing its capacities to touch about 20 montmorillonite (MMT) by 2015, it added.
In its study, ASSOCHAM has also emphasized upon the need to explore alternative feedstock produced from sources like coal, biomass and others as most of the petrochemicals like ethylene, propylene and aromatics are currently produced via conventional routes utilizing naphtha (derived from crude oil) and ethane (derived from natural gas).
The study has further suggested the domestic producers to price their products in line with prices prevailing in the Southeast Asia (SEA) as imports are relatively free. As end-product prices are market driven, most producers irrespective of their cost of production have to maintain the selling prices in line with market prices and this results in varying margins for producers having different feedstock thereby affecting the investment prospects.
India's import duty structure provides for nil incremental tariff protection between key petrochemical inputs (naphtha, liquefied natural gas and propane) and their end products (building stocks like ethylene, propylene, benzene, and butadiene) as well as major petrochemical products like polymers, further noted the study.
Besides, the tariff protection is even negative for many products such as polymers vis-vis preferential duty for countries that have signed free trade agreement (FTA) with India, it added.
India is a net exporter of naphtha, the basic feedstock, while it imports large quantity of petrochemical products and this has been discouraging value addition within the country, highlighted the ASSOCHAM study.
An accelerated reduction in import tariff on polymers from 40 per cent in 2001-02 to five per cent in 2007-08 has resulted in increased flow of imports, the study added.
Besides, the five per cent import duty on naphtha feedstock for production of polymers has reduced the differential between upstream and downstream (polymers) to zero in India, while in other countries in the region and even in developed economies, this differential is 6.5 per cent.
India's five per cent import duty is much lower than that of Malaysia (20-30 per cent), Philippines (15 per cent), Indonesia (20 per cent) and China (6.5-8.4 per cent), noted the ASSOCHAM study. This disparity is affecting the competitive viability of the domestic investment in petrochemical sector.
Import tariff on other key petrochemical inputs like propane, catalysts, capital goods and others further reduces the competitiveness of domestic petrochemical industry, the study added.
Source:- business-standard.com
Department Of Revenue, New Delhi Announces Recruitment Notification For Various Vacant Posts
The Department of Revenue (DOR) New Delhi has recently announced recruitment for vacant positions of 48 Assistant Director posts, inviting interested and eligible candidates to fill up the positions. The Department of Revenue is operated under the overall direction and control of the Secretary (Revenue).
It exercises control in respect of matters relating to all the Direct and Indirect Union Taxes through two statutory boards namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC).
Source:- indiatoday.intoday.in
Rupee Jumps 13 Paise Vs Dollar Ahead Of Us Fed Policy Meet Outcome
The Indian rupee appreciated for the second day in a row and ended 13 paise higher at 60.92 against the Greenback following sustained dollar selling by exporters ahead of a decision on US interest rates by Federal Reserve .
A weak dollar overseas also aided the rupee rise while fresh sell-off by foreign funds in domestic stocks capped the currency's gains, forex dealers said.
Dealers added that they are awaiting the outcome of Federal Open Market Committee two-day policy meet, which began Wednesday. Consensus expectations are that Fed will keep interest rates low for a while.
At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced strong at 60.95 a dollar from last close of 61.05. It moved in a narrow range between 60.8750 and 61.03 before settling at 60.92, showing a rise of 13 paise or 0.21 per cent. Wednesday, it had gained 8 paise or 0.13 per cent.
For the seventh straight meeting, the Fed later tonight is expected to taper its bond buying program by $10 billion, bringing QE3 down to only $15 billion per month, experts said.
Meanwhile, the Indian equity benchmark S&P BSE Sensex on Wednesday recovered by 138.78 points, or 0.52 per cent, after two days of heavy fall. FPIs/FIIs withdrew $ 120.70 million Tuesday, as per Sebi data.
The dollar index was trading down by a mere 0.03 per cent against its major global rivals ahead of Fed outcome.The Bank of England's (BoE) Monetary Policy Committee voted 7-2 at its September meeting to keep rates on hold and its quantitative-easing program unchanged, according to minutes released on Wednesday.
Source:- businesstoday.intoday.in
Courses relating to ‘digital and animation effects’ amounts to ‘vocational training’; exempt from se
Service Tax : Course in "Digital and Animation Effects" involving drawing, clay modelling, Matte Printing, Animation and Visual Effects, Motion Photography and Acting, prima facie, amounts to 'vocational training' and is exempt from service tax
No publication of special notice for removal of Chairman aiming to have publicity and defaming petit
CL : Where special notice issued by respondent for removal of chairman of petitioner company was nothing but to secure needless publicity and defaming company and amounting to abuse of process of law, petitioner company was exempted from publication, circulation, or reading out at forthcoming AGM, said notice
Income arising to NR from activities not related to its PE in India isn’t taxable
IT/ILT : Where revenue did not challenge Tribunal's finding that Indian subsidiary of assessee-company only constituted its service PE in India in first round of litigation, it could not challenge consequential assessment order passed by Assessing Officer raising a new plea that Indian subsidiary constituted not only service PE but also fixed place PE of assessee in India
CBEC appoints Chief Commissioner of ST and Principle Chief Commissioner of ST as Central Excise offi
SERVICE TAX LAWS : Section 2(B) of The Central Excise Act, 1944, read with section 65B(55) of The Finance Act, 1994 - Central Excise Officer – Appointment of Chief Commissioners of Service Tax, Principal Commissioners of Service Tax, Commissioners of Service Tax, Commissioners of Service Tax (Audit), Commissioners of Central Excise (Audit), Commissioners Large Taxpayers Unit, Commissioners of Large Taxpayer Unit (Audit), Commissioner of Central Excise (Appeals) and Commissioners of Service Tax
CBEC appoints Excise Officers in Directorate General of Audit/excise intelligence/service tax
SERVICE TAX LAWS : Section 2(b) of The Central Excise Act, 1944, read with Section 65B(55) of The Finance Act, 1994 – Central Excise Officer – Appointment of Officers in Directorate General of Audit, Directorate General of Central Excise Intelligence and Directorate General of Service Tax
CBEC revises jurisdiction of Central Excise Officers
EXCISE & CUSTOMS LAWS : Jurisdiction of Principal Chief Commissioners of Central Excise, Chief Commissioners of Central Excise, Principal Commissioners of Central Excise, Commissioners of Central Excise, Commissioners of Central Excise (Appeals) or Commissioners of Central Excise (Audit) – Supersession of Notification No. 14/2002-C.E. (N.T.), Dated 8-3-2002
CBEC appoints Principal Director General and Principal Additional General as Central Excise Officers
EXCISE & CUSTOMS LAWS : Section 2(B) of The Central Excise Act, 1944 - Central Excise Officer – Appointment of Specified Officers as Central Excise Officers - Amendment in Notification No.38/2001-C.E. (N.T.), Dated 26-6-2001
CBEC's power to specify jurisdiction of Commissioner of ST(Appeals)/(Audit) delegated to Commissione
SERVICE TAX LAWS : Section 37A of The Central Excise Act, 1944, read with Section 83 of The Finance Act, 1994 - Delegation of Powers – Delegation of Powers to Principal Chief Commissioner of Central Excise or Chief Commissioner of Central Excise or Chief Commissioner of Service Tax
Govt. delegates CBEC's power to specify jurisdiction of CCE(Appeals)/CCE(Audit) to Commissioner of E
EXCISE & CUSTOMS LAWS : Section 37A of The Central Excise Act, 1944 - Delegation of Powers – Delegation of Powers to Principal Chief Commissioner of Central Excise or Chief Commissioner of Central Excise
Angles/TMT bars used in cement factory for erection of raw mill project were eligible for credit as
Cenvat Credit : M.S. Angles, M.S. Beams, M.S. Channels and TMT bars used in erection of raw mill project, additional flyash handling system, crusher etc. in a cement factory are eligible for capital goods credit as 'components and parts'
No disallowance of exp. incurred by trust on international conference/training for advancing objects
IT : Expenditure incurred by a charitable trust on international conference or training could not be disallowed on ground that it was not notified in a circular issued by CBDT
Trade discount wasn’t deductible from turnover on basis of credit notes if it wasn’t shown in tax in
CST & VAT: Where assessee claimed deduction in respect of trade discount as per credit notes issued after end of month, since discount did not find a place in tax invoice, assessee was not entitled to deduction
CIT couldn’t make revisional order merely to change the head of income determined under sec. 68
IT: When in absence of satisfactory explanation about source, unsecured loan was treated by Assessing Officer under head business income, such a view of Assessing Officer being possible, review to assessee loans as income from other sources was unjustified
Development of land for township isn’t taxable under ‘construction of complex’ or ‘works contract’s’
Service Tax : Development of land for township (involving levelling, demarcation of plots, boundaries, underground cabling/pipelining, etc.) is not taxable under 'construction of residential complex services' and 'works contract services
CLB reconstitutes Delhi bench for 'Lok Adalat' to be held in Sep. 2014
COMPANIES ACT, 1956 : Section 10E of The Companies Act, 1956, read with Regulation 4 of The Company Law Board Regulation, 1991 - Constitution of Board of Company Law Administration - Constitution of New Delhi Bench - Amendment in Order of Even Number, Dated 25-9-2013
ITAT deletes penalty as assessee had paid taxes after specifying manner in which undisclosed income
IT: Where Assessing Officer having completed assessment, passed a penalty order under section 271AAA for default of not substantiating manner in which undisclosed income was derived, in view of fact that assessee made statement that he had earned undisclosed income for various transactions of sale/purchase of land which did not face any rebuttal and, moreover, assessee had paid due tax on said income, impugned penalty order deserved to be set aside
ALP of Mofetil drug couldn’t be determined on basis of other drugs without analyzing their profit ma
IT/ILT : Matter remanded to determine ALP of drug Mofetil when Assessing Officer had compared price of other drugs to determine ALP of Mofetil
No excise demand on director’s confession without any evidence indicating clandestine removal of goo
Excise & Customs : Confessional statement may be starting point of investigations but in absence of weighment slips/other evidence indicating clandestine removal, same cannot be held to be conclusive and/or made sole basis for deciding against assessee.
No clandestine removal when duty paid goods returned by customer were directly cleared from premises
Excise & Customs : If duty-paid goods returned by customer are not brought back to factory and are cleared directly from premises of transporter/dealer under commercial invoices, same cannot be regarded as 'clandestine removal' and cannot be charged to duty again
Tribunal condoned delay in filing appeal against order of ED as appellant-Co. took time to retrieve
FEMA : Where company took time to trace out relevant documents for filing appeal against ED order due to considerable time lag between initiations of proceedings and date of order and change of office of company, it was considered to be sufficient cause for condonation of delay in filing appeal
Compounding application had to be rejected if made after expiry of period prescribed under Kerala VA
CST & VAT : Where assessee filed application under section 8 read with rule 11 to remit compounded tax for cooked food after period prescribed, said provisions did not provide any room for statutory authority to condone delay
Non-recovery of advance from affiliates due to security scam held as genuine advance; HC allows bad-
IT: Where assessee could not recover amount advanced to associate company on account of security scam, since said event could not be foreseen, Assessing Officer was not justified in rejecting assessee's claim for write off of said amount under section 36(1)(vii) taking a view that loan was not given in ordinary course of business
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