Place of issuing notice on dishonour of cheque doesn't confer jurisdiction upon Court to take cogniz

Negotiable Instruments Act : Place of issue of a statutory notice cannot constitute a valid ground for conferring jurisdiction upon Court concerned to take cognizance of an offence under section 138

TPO couldn't make consulting company a 'comparable' for marketing company for TP adjustments

IT/ILT : Functionally dissimilar companies cannot be selected as comparables

Transportation charges incurred by supplier of LPG would form part of its sale price under Karnataka

CST & VAT : Where assessee issued credit note to purchaser of goods subsequent to date of invoice and claimed deduction of same from taxable turnover stating that it was discount given to purchaser, since discount was given after completion of sale, assessee was not entitled to deduction

SC : National Tax Tribunal Act held as unconstitutional; CS ineligible to appear before National Tax

IT : SC : National Tax Tribunal Act unconstitutional; Company Secretaries ineligible to represent parties in appeal before NTT

Now the Madras High Court directs CBDT to extend the due date for filing return to November 30, 2014

IT/ILT : Now the Madras High Court directs CBDT to extend the due date for filing return to November 30, 2014

Palm Oil Export Battle To Dominate India Conference

Competing efforts by leading palm oil producers Indonesia and Malaysia to raise exports of the tropical oil and the impact of falling crude oil prices on biodiesel demand will be the primary focus of an industry conference in India this week.



At the Globoil India 2014 meeting that starts in Mumbai on Friday, edible oil traders and analysts are also likely to discuss rising palm oil inventories and an expected bumper US soybean crop, and the combined impact on palm oil prices that dropped to a five-year low early this month.



"The market is oversupplied. Industry officials are keen to know the impact of competition between Indonesia and Malaysia to export more palm oil by reducing export taxes," said B.V. Mehta, executive director of the Mumbai-based industry body Solvent Extractors' Association of India (SEA).



Malaysia, the world's second biggest palm oil producer, has allowed duty free exports of crude palm oil for September and October, and rival top producer Indonesia is likely to respond with the same export incentive from October.



"I don't think anyone would be bullish at the conference," said a Mumbai-based dealer with a global trading firm.



Both Malaysia and neighbour Indonesia set export taxes on a monthly basis. Prior to its announcement, Malaysia's export duty for crude palm oil was set at 4.5 per cent for September, down from 5.0 per cent in August. Indonesia set its September rate at 9 per cent compared to 10.5 per cent in August.



The competition between the producers could depress palm oil prices and make it more attractive over other edible oils like those from soybeans and sunflowers, said the Mumbai-based dealer.



"Indian and Chinese importers ... are getting edible oils at lower prices during their peak consumption period," the dealer said.



India's vegetable oil imports typically peak between August and October when Indians celebrate a number of festivals and consumption of fried and calorie-laden food rises.



Top edible oil importer India shipped in a record 1.3 million tonnes of vegetable oils in August.With Brent crude falling to its lowest in more than two years this week, traders and analysts will also be looking for any clues to the impact on biodiesel demand, said Faiyaz Hudani, associate vice president at Kotak Commodity Services.After hitting a five-year low at 1,914 ringgit on Sept. 2, palm oil futures have climbed back to 2,193 ringgit on Thursday.

Source:- economictimes.indiatimes.com

Norway Sees Potential In Fish Exports To India

With over one billion people and an economy in expansion, the Norwegian Seafood Council sees an increased opportunity for selling fish to India.

"Norway currently has no free trade agreement with India, but we see the potential for it to fall into place," said Ingelill Jacobsen, Norwegian Seafood Council.

From 24 to 31 October, the Norwegian Seafood Council will hold a seminar and reception in New Delhi and Mumbai.

The aim is to inform Norwegian exporters about opportunities in the market but also let the Indian players get better acquainted with Norwegian seafood.

Several regions in Asia are experiencing rapid economic growth as well as population growth. India is the world's second most populous country with a population of about 1.22 billion people.

"There is a market with great potential. It is also a country with many vegetarians, and among these there are many who eat seafood. We therefore believe there are good opportunities in this market," said Mr Jacobsen.

"Foreign retailers have not been allowed to establish themselves here, but we think we will. For the time being we will concentrate on two of the country's most populous cities, New Delhi and Mumbai."Doing business in India requires cultural and social understanding.

"We will therefore leave the Norwegian players to get an analysis of the market, but also to learn from the experiences of others about what is required in this market. We also want them to learn a little about Indian traditions so that they are given the chance to see how the Norwegian seafood can fit in.

Source:- thefishsite.com

SC : Claim of 'BSE', being secured creditor of defaulting member, had priority over income-tax dues

CL : By virtue of lien on securities under rule 43 of Stock Exchange Rules, Stock Exchange, being a secured creditor would have priority over Government dues and, therefore, if a member of a Stock Exchange was declared a defaulter, Income-tax Department would not have priority over all debts owed by defaulter member

HC follows SC's ruling in Sandvik's case; directs revenue to pay compensation if payment of interest

IT : If tax, interest, penalty, etc., has been collected in excess and it is withheld beyond permissible period under Act, Revenue should compensate for same

Rway Sees Potential In Fish Exports To India

With over one billion people and an economy in expansion, the Norwegian Seafood Council sees an increased opportunity for selling fish to India.

"Norway currently has no free trade agreement with India, but we see the potential for it to fall into place," said Ingelill Jacobsen, Norwegian Seafood Council.

From 24 to 31 October, the Norwegian Seafood Council will hold a seminar and reception in New Delhi and Mumbai.

The aim is to inform Norwegian exporters about opportunities in the market but also let the Indian players get better acquainted with Norwegian seafood.

Several regions in Asia are experiencing rapid economic growth as well as population growth. India is the world's second most populous country with a population of about 1.22 billion people.

"There is a market with great potential. It is also a country with many vegetarians, and among these there are many who eat seafood. We therefore believe there are good opportunities in this market," said Mr Jacobsen.

"Foreign retailers have not been allowed to establish themselves here, but we think we will. For the time being we will concentrate on two of the country's most populous cities, New Delhi and Mumbai."Doing business in India requires cultural and social understanding.

"We will therefore leave the Norwegian players to get an analysis of the market, but also to learn from the experiences of others about what is required in this market. We also want them to learn a little about Indian traditions so that they are given the chance to see how the Norwegian seafood can fit in.

Source:- thefishsite.com

Frozen Shrimp Now Accounts For 78% Of The Total Seafood Consignments From India

Global shortage of farmed shrimp continues to boost India's seafood export prospects. After crossing the Rs30,000-crore mark last year, the shipments have shown nearly 30% rise till the end of July with vannamei shrimp bringing in a significant part of the revenue.



Frozen shrimp now accounts for 78% of the total seafood consignments from India, up from 71% in the same period last year. Another notable feature is that exports to the European Union and Middle East have increased during four months.



Frozen shrimp now accounts for 78% of the total seafood consignments from IndiaSeafood exports from India totalled 2,41,600 tonne valued at Rs9,345 crore during the period April-July 2014. Though there is only a marginal increase in quantity, the value is up by 29%, indicating good prices for Indian shrimps.



"Middle East countries have been buying lot of Indian seafood, particularly Egypt, Saudi Arabia and UAE. There has been failure of white shrimp crop in Saudi Arabia," said Anwar Hashim, managing director of Abad Fisheries, a leading exporter. The prices of Indian shrimp, he said, increased from Rs500 to Rs650 per kg , though it has come down in the recent weeks.



Indian aquaculture farms are breeding more shrimps to meet the demand, encouraged by good prices for shrimps in the global market. The shrimp farms in South East Asia are gradually recovering after the early mortality syndrome (EMS) disease attack.



"Last year our production was around 3 lakh tonne. This year it could be 25,000 tonne more as the demand is still good," said L Satyanarayana, president of All India Shrimp Hatcheries Association. The farming is mainly concentrated in the eastern parts of the country mainly in Andhra Pradesh, Tamil Nadu, Orissa and West Bengal. It is also picking up in Gujarat.



Thailand is the main producer of cultured shrimp in the world. But after the disease attack, the production has dropped from an average 6 lakh tonne to 2.6 lakh tonne. "There is still a shortage of around 3.4 lakh tonne," Satyanarayana said.



Globefish, a unit of FAO Fisheries and Aquaculture Department says in its reports that Indian farmers have been holding stocks in their ponds from mid-June onwards following renewed import inquiries from the US and European Union. The farms are moving away from black tiger variety of shrimp in favour of vannamei.According to the report, there has been a 40% reduction in black tiger shrimp production in India in 2013.

Source:- economictimes.indiatimes.com

India Has Potential To Become World's Biggest Car Maker Kenichi Ayukawa, Maruti Suzuki

Stating India has the potential to become the biggest car manufacturer of the world, country's top car maker Maruti Suzuki today hoped factors adversely affecting competitiveness of manufacturing will be removed quickly, in line with Prime Minister Narendra Modi's call to make India a manufacturing hub.



"Costs of production in India increase because of various government policies, procedures, regulations and the way some of the laws are implemented," said Kenichi Ayukawa, Managing Director and CEO, Maruti Suzuki India Ltd, at the 'Make in India' campaign.



Stating that India is not the easiest country to do business in, he said, "We are fully confident that, under the Make in India programme of the Prime Minister, factors that adversely affect the competitiveness of manufacturing will now be removed quickly," he said adding India will then become one of the most competitive manufacturing countries in the world.



Welcoming Modi's call to 'Make in India', he said Maruti Suzuki was amongst the very first multi-national corporation companies to start a major manufacturing operation in India in 1983.



"Over 30 years ago, Osamu Suzuki, Chairman, Suzuki Motor Corporation, recognised the potential of India, both as a market and as a country where high quality manufacturing was possible," he said, adding globally, Maruti Suzuki is the most successful venture of Suzuki group.



He said the cars Maruti Suzuki makes in India are lower in costs than similar products made by it in other parts of the world.



This enabled Maruti to start exporting cars in 1986 to several countries including western Europe. Suzuki Japan made India its manufacturing hub for compact car Zen in 1994 for export to European countries.



Since 1983, Maruti has been making special efforts to develop a vibrant component manufacturing industry in India.



"This, along with the rapidly growing car production and demand, with high local content, and low costs, was largely responsible for all the major car manufacturers of the world establishing production facilities in India," he said.



The growth of the car industry also attracted investments from a large number of global automotive component manufacturers.



"Our experience with Indian managers, engineers and work force, despite an exception in 2012, has been excellent. We have been able to effectively implement work practices based on our Japanese experience, but suitably modified for India, that have resulted in continuous growth of productivity, improvements in quality and lower costs," he said.



India continues to be a major exporter of Suzuki branded cars. Other car manufacturers have also made India one of their manufacturing hubs for exports. Car exports from India have reached the levels of around six lakh units annually."This has been achieved despite the well recognised fact that India is not the easiest country to do business .

Source:-economictimes.indiatimes.com

Rupee Breaches 61 Against Dollar Tracking Weak Stock Market

The Indian rupee was trading weak against the US dollar on Thursday afternoon, as banks sold the local currency noting the weakness in the local stock market and on doubts about the investment sentiment in India following the de-allocation of coal mines by the Supreme Court on Wednesday.

However, dollar sales by state-owned banks likely on behalf of the Reserve Bank of India (RBI) prevented the rupee from falling sharply.

At 1.55pm, the home currency was trading at 61.09, down 0.20% from its previous close of 60.97. It had opened at 60.96 and touched a low of 61.12. India’s benchmark index, Sensex was trading at 26,582.60 points on BSE, down 0.61%.

“The impact is sentimental. Local equities are down and that has spilled over to the rupee. Add to that the fact that the dollar is also stronger overseas has kept the rupee under pressure. If not for dollar sales by state-owned banks, the Indian currency could have fallen more sharply,” said a dealer with a French bank.

The yield on India’s 10-year benchmark bond was trading at 8.476%, compared with its Wednesday’s close of 8.482%. Bond yields and prices move in opposite directions.Since the beginning of this year, the rupee has gained 1.14%, while foreign institutional investors have bought $14.02 billion from local equity markets.The dollar index, which measures the US currency’s strength against major currencies, was trading at 85.395, down 0.42% from the previous close of 85.037.

Source:- livemint.com

Sec. 263 revision was valid if AO had wrongly taken threshold limit for TDS exemption as standard de

IT : Where Assessing Officer passed assessment order taking a view that assessee was not liable to deduct tax at source under section 194C where single payment to transport contractors did not exceed Rs. 20,000, Commissioner, in exercise of revisional power, rightly set aside assessment holding that bifurcation of payments made by assessee was not permissible

Disclosure of income in belated return not to be held as undisclosed even if return was filed after

IT: Where regular return was filed within time prescribed under section 139(4) merely, because it was filed after date of search, income therein could not be treated as undisclosed income

Department can’t initiate penalty proceedings for tax evasions after five years from the relevant da

Excise & Customs : Penalty proceedings must be initiated within a reasonable period and said reasonable period is 5 years from relevant date; thereafter, no penalty proceedings can be initiated

Amendments to sec. 40(a)(ia) allowing deduction on payment of TDS of any month before due date has r

IT : Amendment to section 40(a)(ia) by Finance Act, 2010, which comes into effect from 1-4-2010 is curative in nature and, thus, it has retrospective operation

Steel wire rope, MS plates used directly/indirectly in manufacture of aluminium articles are eligibl

Cenvat Credit : Goods used directly or indirectly in manufacture of final product are eligible for credit; hence, for manufacturer of Aluminium Articles, Alfoc Power; Steel Wire rope; MS Plates and Welding electrodes; Oxygen Gas; Aluminium Welding wire; and PVC Pipes, etc. are eligible for credit

No reassessment if property alleged to have been acquired out of undisclosed income didn’t relate to

IT : Where in course of proceedings relating to reopening of assessment, first respondent passed on order accepting assessee's objection that there was no evidence to connect him with certain properties allegedly acquired out of undisclosed income, he should have dropped reassessment proceedings and, therefore, impugned letter issued by first respondent calling upon assesee to avail of opportunity to cross examine complainant i.e. person, who was author of tax evasion petition, deserved to be qu

Chemicals and dyes used for dying/colouring of fabric under job work weren’t taxable in hands of ass

CST & VAT : Where assessee was also getting job work done on fabric and after processing, which included colouring, dyeing, etc., fabric was returned to customer, chemicals and dyes used in job work were not liable to tax in hands of assessee

Engagement of vendors for e-procurement solutions without bidding process wasn't an abuse of dominan

Competition Law: Engagement of Central Government entities for providing e-procurement solutions in various government departments, PSU's etc., without going through bidding process is not abuse of dominant position by Central Government

CBDT notifies functional jurisdiction of Direct Taxes Regional Training Institutes

IT : Section 120 of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of – Direct Taxes Regional Training Institutes (DTRTIS)

CBDT notifies functional jurisdiction of Ministerial Staff Training Units

IT : Section 120 of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of – Ministerial Staff Training Units (MSTUs)

Tribunal can extend stay after passing speaking order that delay isn’t attributable to assessee

Excise & Customs : Tribunal may extend stay each time only after passing a speaking/reasoned order that delay in disposal of appeal is not attributable to assessee

Donation by one charitable trust to other charitable trust amounts to application of income

IT : In order to obtain approval under section 80G(5), donation made by a charitable trust to other charitable trusts/institutions amounts to application of income within meaning of section 11(1)(a)

HC directs fresh adjudication as assessment order was passed by AO without hearing assessee

CST & VAT : Where Assessing Authority passed assessment order on assessee without affording opportunity of hearing, matter was remitted for fresh adjudication after affording opportunity of hearing to assessee

HC follows SC’s ruling in Savdik’s case; directs revenue to pay compensation if payment of interest

IT : If tax, interest, penalty, etc., has been collected in excess and it is withheld beyond permissible period under Act, Revenue should compensate for same

Assessee couldn’t take Cenvat credit on basis of zerox copy of invoice, rules High Court

Cenvat Credit : A photocopy of invoice cannot be recognised either as an original or duplicate or triplicate or quadruplicate; it is no document at all in terms of rules and, therefore, no credit can be taken on basis thereof

CLB denied relief prayed for by Petitioner Co. as it deliberately withheld facts vital for decision

CL: Where facts regarding pendency of disputes before Arbitral Tribunal in respect of resignation and appointment of directors by petitioner company was deliberately withheld, respondent company could not be directed to file form 32 with ROC in view of Share subscription and shareholders agreements

TPO couldn’t reject a manufacturing comparable ignoring fact that assessee was into trading as well

IT/ILT : Where assessee was engaged in manufacture and marketing of food products but comparables were rejected by TPO on basis that assessee-company was engaged in sale of ready to eat items, matter was to be re-adjudicated

CT scan equipments are entitled to higher depreciation rate of 40%, says ITAT

IT : PET/CT scan equipment is entitled for higher rate of depreciation at 40 per cent

VAT penalty upheld as assessee didn’t obtain endorsement from check post while transporting goods fr

CST & VAT: Where assessee was carrying goods in a lorry from Tamil Nadu to Karnataka and it had not obtained any endorsement from check post of Karnataka, levy of penalty for non-compliance of mandatory requirements of law was justified

Renovation exp. by hotel to facilitate its business was allowable as revenue exp.

IT : Where renovation expenses did not bring any new asset and same merely facilitated assessee's business, same was allowable as revenue expenditure

No sec. 263 revision if taxability of lease rental relating to land developed for business purposes

IT : Where lease rentals were earned from land which were developed for creating film shooting facilities/locations and it was directly, connected with main activity of assessee, i.e., development of infrastructure for shooting locations, such rental income being capital in nature could not be held income

Delay in making pre-deposit condoned as delay occurred due to perusal of appellate remedy before HC

Excise & Customs : Delay in making pre-deposit as directed by Tribunal can be condoned where such delay occurred due to assessee pursuing appeal remedy before High Court against pre-deposit order of Tribunal

Equity investments in AE can’t be deemed as loans/advances; it’s outside the ambit of international

IT/ILT: Investments in nature of equity, cannot be treated as loans and advances and hence cannot be brought within purview of 'international transactions' as defined under section 92B

Respondent-Co gets a final opportunity to pay overdue sum due to director's effort for discharging C

CL : Where respondent company failed to pay sum due under hire purchase agreement and defences raised by it were not bona fide, a final opportunity to make payment was granted to respondent company in view of efforts of its director in discharging burden of defence on behalf of company

AO had to consider exemption for export sales after verifying Form C and Form H available with asses

CST & VAT : Where Assessing Officer had disallowed assessee's claim of exemption for export sales on ground of non production of 'C' forms and 'H' forms, matter was remanded for passing fresh order after considering declaration forms being produced by assessee

Imparting of training in seminary is 'education'; assessee was entitled for registration as a trust

IT : Where assessee was imparting training to students in 'Seminary', training programme undertaken by assessee was also education and, therefore, it was entitled for registration under section 12A

An amendment to by-laws of BSE doesn't restrict powers of its appellate Tribunal to condone delay in

CL: Whether the Appellate bench of Bombay Stock Exchange (BSE) was right in concluding that it had no power to condone delay in filing appeal as amendment to the by-laws of BSE had restricted its powers - Held - No

AO to verify assessee's plea that sec. 69A addition couldn't be made on him as it was already made o

IT: Where assessee challenged addition made on account of unaccounted commission in respect of giving accommodation entries to various parties taking a plea that said addition had already been made in case of his brother, since aforesaid plea required verification at level of Assessing Officer, matter was to be remanded back for disposal afresh

Indian Ports Get Clogged After Rush To Import Coal

India’s power and steel companies are importing shiploads of coal due to a severe shortage at home, leading to heavy congestion in one of the country’s busiest ports that now has twice the number of vessels waiting than its available berths.

The over-crowding at Paradip port in Orissa could derail India’s efforts to prevent a shutdown of more than half of its power plants which are running on stocks of less than a week in the worst deficit since a massive blackout in 2012.

While power and coal minister Piyush Goyal has urged power firms to bring more coal into India, already the world’s No. 3 importer of the fuel, the country’s ports are finding it difficult to deal with the swelling traffic.

“We’re 100 per cent houseful,” said G.P. Biswal, deputy conservator of Paradip port. “We’re not able to cope with the sudden incre-ase in traffic."

Half of the 27 stranded ships at Paradip are carrying up to 90,000 tonnes of coal each and it takes up to six days to offload a ship once it is berthed.

Mr Biswal said rains in the eastern part of the country over the past few days have hampered operations but there could be an improvement in a week.

Some of the ships are to deliver coal for top power and steel firms like Jindal Steel and Power Ltd, Steel Authority of India Ltd, GMR Energy, Tata group and the Adani group run by billionaire Gautam Adani

Source:- porttechnology.org

Service Taxes Set To Get A Big Infrastructure Bump

The service tax net will be cast wider soon to include a wide range of construction-related services, which are currently exempt as “infrastructure services” and form more than a third of the country’s Rs 4.5-lakh-crore construction sector.

A 12% levy on services such as construction and upkeep of highways, bridges, airports, metro rail networks, post-harvest storage infrastructure, mechanised food grain handling systems and possibly even low-cost housing projects would add to the cost of these services, experts said.

Currently, commercial real estate projects are the chief source of service tax revenue from the construction sector for the Centre.

The Centre’s service tax revenue had grown at just 15% in April-August this year compared with the targetted growth of 31% for the full year.

The government’s move to do away with the exemption for a slew of infrastructure services would appear to be at variance with the thrust being given to infrastructure investments, but tax experts said the industries concerned won’t really bear the brunt of the decision. This is because the new tax on their outputs would allow them to more efficiently utilise their input tax credits. It would, however, result in an additional tax burden on users of these infrastructure facilities.

“At present, real estate activities are subject to service tax but not infrastructure development services such as construction of roads, bridges and airports. If infrastructure services are subject to service tax, the real impact for developers would be on the net value addition as they would get credit for the taxes paid on the inputs,” said R Muralidharan, Executive Director, PwC India.

This means the additional tax revenue for the government from the move would be significant but much less than the figure derived from applying the levy on the total value of the output.

Sources privy to the government’s plan said that bringing infrastructure services under service tax would not only widen the base of this levy but also help in keeping exemptions to the minimum to facilitate an easy transition to the proposed Goods and Services Tax (GST). Under GST, businesses could utilise credit for the taxes previously paid on raw materials and services for meeting their final output tax liability, for which it is essential for the output of an industry to be within the tax net.

Besides air and sea ports, railways, metro rail, single residential houses and low cost housing projects, exempted services also include construction of post harvest storage infrastructure and mechanized food grain handling systems. Construction and maintenance of civil structures, roads, bridges, tunnel, terminals and projects under certain welfare schemes like JNNURM and Rajiv Awaas Yojana (RAY) are also exempted from service tax now. The revenue department’s current thinking is to bring

Source:- articles.economictimes.indiatimes.com

Centre To Discuss New Textile Policy With States On Wednesday

Minister of State (Independent Charge) for Textiles Santosh Gangwar will discuss the provisions of the proposed New Textile Policy such as introducing flexible labour laws and setting up integrated textile parks with States in an annual conference of State textiles ministers on Wednesday.

States will give their views on the proposals of a draft report on the New Textile Policy prepared by an expert committee which has already been circulated to them.

“Getting State Governments’ views on labour reforms is important as a number of important changes have been proposed in the textiles sector,” a Government official told BusinessLine.

The proposed reforms include removing restrictions on women working in night shifts, allowing fixed term employment and revising overtime work hours. The Centre has also proposed keeping units employing up to 500 people outside the ambit of the Industrial Disputes Act so that they don’t have the responsibility of providing employment to workers in case a unit winds up.

The proposed policy also suggests giving a blanket exemption to export oriented units to allow contractual labour without any restriction.

Gangwar is also expected to discuss the proposal of partnering with States for reengineering of existing schemes and policies such as the integrated textile parks, Technology Upgradation Fund Schemes and Integrated Processing Development Scheme.

“The State Ministers will also be asked to emphasise on ways to generate productive employment opportunity for the youth through the textile sector. Stress would be laid on inclusive and participative growth, developing skill, scale and speed, targeting zero defect and promoting ‘Make in India’ brand,” an official release said.Textiles exports contribute more than 13 per cent to the country’s total exports.

Source:- thehindubusinessline.com

China’S Move To Cut Cotton Imports To Hurt Growers

China’s decision to reduce cotton imports will hurt Indian farmers more. The latest move of the world’s largest cotton buyer will accelerate the fall in prices that are already headed south on excess supplies.

On Monday, China said it would cut import quota to drawdown on inventories, pressurising prices.“This was expected for quite some time now. They had huge surplus and wanted to exhaust them. It will lead to bearishness in global prices. Though this is a cause for concern, there’s no reason for panic,” said Dhiren Seth, President, Cotton Association of India, the apex body for cotton trade.

Domestic prices reacted on China’s announcement. Price of 29 mm cotton which traded around ?39,900 a candy (355.62 kg each) at the beginning of September ended at ?37,400 on Monday. Trade sources said that prices would come down further on harvest pressure.

“Cotton prices have come down by ?3,000 in the past one month. By the time new arrivals come in by end-October or early November, we expect prices to come down further by another ?3,000/candy,” said MB Lal, Managing Director of Shail Exports and former Chairman of Cotton Corporation of India.

Farmers in India have planted a record 12.57 million hectares under cotton this year as a delayed and truant monsoon prompted many of them to take up the cultivation of the fibre crop considered sturdy and relatively drought-resistant. Cotton output is projected to exceed a record four crore bales (of 170 kg each) this year.

India had exported about 1.25 crore bales each in 2013-14, of which about 70-75 per cent was bought by China. “This year our exports will come down to around 75-80 lakh bales,” Lal added. Seth said Indian exporters need to explore markets in other countries such as Bangladesh, Pakistan, Vietnam and the Far East.

Reuters adds: Beijing will only provide import quotas next year for the 894,000 tonnes that it is required to offer at low duties under commitments with the World Trade Organisation, according to Liu Xiaonan, vice-head of the economy and trade department at the National Development and Reform Commission.

Previously, China has offered another type of quota, in addition to the one compliant with the WTO, but Liu said no additional quota would be made available next year.

Non-quota imports are subject to a 40 per cent tariff, so the restricted availability of import quotas will inevitably dampen Chinese demand for foreign cotton.

In the 2013-14 marketing year, traders estimated that Beijing had issued 600,000-800,000 tonnes through the additional quota that will not be available next year.

“Apart from the 894,000 tonnes of import quota required under WTO entry commitments...we will not issue additional import quota, instead guiding domestic textile companies to use more Chinese cotton,” NRDC’s Liu told reporters.

Source:- thehindubusinessline.com

Alm Oil Imports By India Surge As Prices Slump

Palm oil shipments by India, the world’s biggest buyer, will climb to a record this year as tumbling prices and zero-tax on exports from Malaysia make the oil attractive to refiners, said Ruchi Soya Industries Ltd.

Inbound shipments may increase to 9 million metric tons in the year ending October 31, more than the 8 million tons estimated in July, Dinesh Shahra, managing director of the nation’s biggest importer, said in an e-mail interview. Purchases were at 8.3 million tons in 2012-2013, the highest ever, data from the Solvent Extractors’ Association of India show.

Palm and soybean oils slumped to the lowest in five years this month as forecasts for record supplies threatened to widen a glut in global cooking oils.

Palm will drop in the next few weeks toward the cost at which growers in Asia produce the world’s most-used cooking oil, Dorab Mistry, director at Godrej International Ltd, said September 15.

The decline spurred Malaysia, the world’s second-biggest grower, to scrap export tax on crude palm oil for two months through October to boost shipments.

“We have seen and would see a surge in imports in the nearby month” because of the Malaysian tax cut, Shahra said. “Stockpiles are thinner versus previous years,” he said. Most traders had “hand-to-mouth” stockpiles as longer dated deliveries were cheaper than spot rates, he said.

Futures tumbled to a five-year low of RM1,914 a ton on September 2 and traded at RM2,127 on the Bursa Malaysia Derivatives in Kuala Lumpur. Palm’s discount to soybean oil averages about US$91 a ton this year, compared with US$244 in 2013 as the US harvests a record soybean crop, data compiled by Bloomberg show.

India’s imports of vegetable oils, including those for industrial use, may jump to an all-time high of 13 million tons this year, Shahra said. The country bought 10.7 million tons in 2012-2013, according to the extractors’ association.

“Our oilseed crops are not big and demand will continue to outpace production,” Faiyaz Hudani, associate vice president at Kotak Commodity Services, said by phone from Mumbai. “Palm will have to be at a very good discount to motivate demand and shift people from soybean and sunflower oils.”

Soybean oil shipments will jump to more than 2 million tons and sunflower oil imports may climb to 1.6 million to 1.7 million tons, Shahra said. Soybean oil prices in Chicago have dropped 17 per cent this year, reaching 31.52 cents a pound on September 10, the lowest since 2009.

“The price gap should remain narrow due to ample supply of both oils,” Shahra said. “Though the supply suggests that prices should remain lower to attract demand, however, amid policy driven steps, prices for palm may get underpinned.”

India buys more than 50 per cent of its annual demand, shipping palm oil from Indonesia and Malaysia, and soybean oil from the US, Brazil and Argentina. Imports rose 8 per cent to 9.53 million tons in the 10 months through August from a year earlier, the extractors’ association estimates.

Domestic soybean production may decline to 9.5 million tons to 10.5 million tons in the crop year starting October 1 from 11 million tons predicted in July because of inconsistent monsoon rainfall, lower acreage and some crop losses during the germination stage, Shahra said.

Plantings of oilseeds fell to 17.68 million hectares (43.69 million acres) from 19.25 million hectares a year earlier, the Agriculture Ministry said yesterday. Monsoon rains were 11 per cent less than the 50-year average since June 1, the India Meteorological Department said yesterday.

Source:- themalaymailonline.com

High Court stayed garnishee proceedings as amount of duties weren’t quantified

Service Tax : Where dues/demand was not exactly quantified and figure stated in recovery notice was challenged, High Court stayed garnishee proceedings and directed department to hear assessee for purpose of quantification of exact amount

HC dismissed winding-up of Co. as it merely failed to pay interest amount after paying the principal

CL : Where respondent paid principal amount due towards petitioner but did not pay interest demanded, winding up petition against respondent would not be maintainable

Group Cos negotiating/securing contracts on behalf of foreign Co. would be deemed as service PE in I

IT/ILT : Where assessee, a US based company, entered into contract with an Indian company for supply, installation, testing and commissioning of equipment relating to GSM Cellular Radio Telephone System, in view of fact that a group company namely 'NL' India undertook responsibility for negotiating and securing contracts whereas another group company namely 'NL' Canada supplied aforesaid equipments and its LO in India rendered other services to assessee, those group concerns constituted assessee

SC: No violation of service rules by whistleblower, an IAS officer, on filing of writ petition again

CL: Filing of writ petition by IAS Officer containing allegations that the Government of India is lax in discharging its constitutional obligations of establishing the rule of law can be said to amount to either failure to maintain absolute integrity and devotion to duty or of indulging in conduct unbecoming of a member of the service

Salary paid by overseas HO to expatriate employees working exclusively for Indian branch is fully de

IT/ILT : Where assessee, a bank incorporated in Japan, paid salaries abroad to its expatriates working in Indian branch constituting PE, in view of fact that said expenditure had been incurred wholly and exclusively for Indian branch and, no part of those expenses could be allocated to any other branch by head office, provisions of section 44C did not apply to said expenditure and thus, assessee's claim for deduction of salary expenses was to be allowed

No further addition to be made in survey proceedings if addition was already made in original assess

IT: Where gross receipt of assessee was enhanced in original assessment proceedings, no further addition to be made on basis of survey proceedings

HC advises Commercial Tax Officer to follow set time-limit to take consequential action in case of i

CST & VAT : Where CTO conducted inspection at business premises of assessee on 27-6-2003 and thereafter he passed an order dated 16-6-2014 on assessee, since CTO had failed to follow Circular No. 8/13, dated 18-7-2013 prescribing time schedule, for taking consequential action, matter was remanded back for fresh adjudication

CBDT seeks inputs from officials on its instructions containing allocation of work amongst CIT(Judic

IT : Section 268 of the Income-Tax Act, 1961 - Allocation of Work Amongst CIT (Judicial) and their Jurisdiction – Committee to Review the CBDT Instruction No.4/2002, Dated 7-5-2002 on Work Allocation of CSIT(j) – Suggestions Invited From All Officers Thereon

CBDT reconstitutes DRP panel at Kolkata

IT/ILT : Section 144C of the Income-Tax Act, 1961 – Dispute Resolution Panel (DRP) – Reference To – Reconstitution of DRP at Kolkata

No reassessment on basis of audit report as it couldn’t be regarded as info indicating escaped incom

IT: Audit report could not be regarded as 'information' for purpose of reopening an assessment; hence reassessment proceedings initiated on basis of such audit report were illegal

HC directed revenue to lift attachment of bank accounts as ITAT had already granted stay against tax

IT : Where despite stay granted by Tribunal revenue attached and took away proceeds of assessee's bank account, revenue was directed to lift attachment

CBEC releases guidelines on structure, administrative set-up and functions of Audit Commissionerates

EXCISE & CUSTOMS LAWS : Guidelines on Structure, Administrative Set up and Functions of Audit Commissionerates

Madhya Pradesh Govt. amends VAT Rules; revises Form 10 and forms for work contractors/composition de

CST & VAT : Madhya Pradesh Value Added Tax Rules, 2006 - Amendment in Rule 21 and Forms 4B, Form 5, Form 10, Form 10.1, Form 10.2, Form 10-B

CBEC takes a leaf out of CBDT's book; mandates transfer of refund/rebate claim into bank account of

ST LAWS : Clarification on Payment of Sanctioned Rebate/Refund to Service Provider/Manufacturer Under Electronic Clearing System Through RTGS/NEFT Facility

Revisional proceedings by Joint Commissioner upheld as assessee had misused from XVII for concession

CST & VAT : Where in course of first appeal filed by assessee, revenue pointed out First Appellate Authority that for misuse of form XVII penalty was to levied upon assessee under section 23 and First Appellate Authority rejected revenue's contention and thereafter Joint Commissioner invoked his suo moto revisional powers under section 34 of Tamil Nadu General Sales Tax Act, 1959 and directed Assessing Authority to initiate fresh penalty proceedings under section 23 against assessee, Joint Commi

Order of DRP without considering objections of assessee is a 'non-speaking' order; set aside by ITAT

IT/ILT: Where order passed by DRP was a laconic non-speaking order as it had not given any reason for disposal of assessee's objections and had also not adopted any reasons contained in draft assessment order nor even reasons that were contained in order of TPO; same was to be set aside

Even employee’s contributions to PF are deductible if paid by employer before due date of filing ret

IT: Contribution by employer towards provident fund means both employer's contribution and employee's contributions and if such contributions are paid before due date prescribed under section 139(1), employer shall be entitled to deductions as provided under section 36(1)(iv)

HC sanctioned amalgamation scheme as it was in interest of Co. and IT department didn't raise object

CL : Where income tax department had raised no objection to proposed scheme of amalgamation and same was in interest of company and its members, proposed scheme was to be sanctioned

Manufacturer couldn’t be deemed as job-worker merely due to professional control of buyer over raw m

Excise & Customs : Where assessee manufactures coolers and sells them to buyer, said transaction cannot be regarded as job-work transaction merely because of professional control of buyer over raw material purchases by assessee to ensure quality and timely supply; rule 10A of Valuation Rules, 2000 is inapplicable

MCA tweaks norms for DIN, excludes requirement of PAN in data bank of eligible independent directors

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Appointment and Qualification of Directors) Amendment Rules, 2014 - Amendment in Rules 6, 9, 10, 11, 12; Insertion of Rule 10A, Forms DIR-3A, DIR-3B and DIR-3C; Omission of Form DIR-1 and Substitution of Form DIR-3

Contribution towards approved group gratuity scheme of LIC is a deductible exp. under section 36(1)(

IT: Liability to pay in respect of salary settlement crystallizes in year of approval

Particulars in Form A4 are essential for verifying unfructified sales as well as refund claim on unf

CST & VAT : Particulars prescribed in Form A4 were essential for verifying claim for unfructified sale as well as for refund

SC: HC couldn’t quash complaint against dishonour of cheque merely for want of proof of service of n

Negotiable Instruments Act: Complaint under section 138 cannot be quashed on ground that there was no proof of service of notice as same is matter of evidence

No TDS liability of assessee on fees charged by NR bank for ‘LOC’ if it had privity of contract with

IT/ILT : Where a foreign bank charged certain sum terming it as interest on an Indian bank in process of negotiating letter of credit on behalf of its customer i.e. assessee, and said bank recouped amount from assessee, in view of fact that assessee had privity of contract with Indian bank and amounts were also paid to Indian bank only, transaction in question could not be said to fall within meaning of section 195 and, therefore, assessee was not required to deduct tax at source while making pa

Commission paid to foreign agents for procuring export orders was outside the ambit of 'FTS'

IT/ILT : Commission paid by assessee to its foreign agent for arranging of export sales and recovery of payments could not be regarded as 'fee for technical services' under section 9(1)(vii) and, thus, assessee was not liable to deduct tax at source while making said payment

Electric control panel manufactured by appellant was plant and machinery; eligible for lower rate of

CST& VAT : Where assessee was engaged in manufacture of electric control panel and transformer and same were used in manufacture as plant and machinery, products were covered by Entry No. A-88 of notification issued under section 41 of Bombay Sales Tax Act

HC set aside block assessment proceedings as AO failed to record satisfaction within 2 years of sear

IT: Assessing Officer is bound to record satisfaction within meaning of section 158BD within two-year time period stipulated in section 158BE(1)

Tribunal's order directing penalty is valid from the date when it is passed and not from date of its

Excise & Customs : Where Tribunal gave an option to assessee pay 25 per cent penalty within 30 days from today i.e., from 22-7-2010; payment on 30-8-2010 was not in compliance with direction of Tribunal and, therefore, assessee was liable to full penalty

No denial of TDS credit on its non-appearance in ITD system of department if Form No. 16A was issued

IT: Where deductor having deducted TDS, issued Form No. 16A, credit of same can not be denied to assessee deductee solely on ground that such credit does not appear on ITD system of department and/or same does not match with ITD system of department

CBEC instructs department to appeal against cases involving levy of SAD on imports made under DEPB S

EXCISE & CUSTOMS LAWS : Proposal for Filing of Review Petition Before Supreme Court Against Order Dated 15-02-2013 Passed by Supreme Court in Sld(c) CC No.3741/2013 Filed by Department in Case of Uoi Vs. Gujarat Ambuja Exports Ltd.

Delhi CESTAT lists out instances in which appeals can be admitted for credit adjustment against mand

ST LAWS : Clarification on Registration of Appeals Received on or After 6-8-2014 Subsequent to Amendment in Customs Act, 1962, Central Excsie Act, 1944 and Finance Act, 1994

Goods detained by Commercial Tax officer due to undervaluation to be released subject to payment of

CST & VAT : Where assessee sold goods to various registered dealers and sent same to them in different vehicles and CTO detained goods on grounds of under valuation, CTO was directed to release goods on payment of tax by assessee

Disclosure of additional income in revised return after filing of block return would attract penalty

IT: Undisclosed income disclosed by assessee after filing revised return under section 158BC, would attract penalty under section 158BFA

Technical payments to AEs couldn’t be held as nil if payments under technical agreement were duly ap

IT/ILT: Where TPO made adjustment to assessee's ALP taking a view that value of technical know how fee and royalty paid by assessee to its promoter company was nil, in view of fact that technical service agreement was duly approved by RBI and, moreover, TPO had not analysed payments in question either under TNMM method or under any other method as required by transfer pricing provisions, impugned disallowance made by TPO was to be set aside

Transfer of employees as per circular in force couldn’t be withdrawn due to subsequent change in pol

Excise & Customs : Where petitioner had applied for inter-commissionerate transfer and she had been allowed said transfer as per Circular in force at that time, such transfer could not be withdrawn on subsequent change in policy

No prejudice caused to petitioners on change of BIFR bench as they availed of opportunity to put for

SICA: In proceedings before BIFR, mere change of Bench would not be prejudicial if at every stage of proceedings, petitioners were given full and complete opportunity to put forth their case which they availed

CBDT extends 80% rate of depreciation on windmills and devices running on wind energy installed afte

IT : Income-Tax (Eighth Amendment) Rules, 2014 - Amendment in New Appendix-I

No dismissal of appeal on grounds of delay as assessee became aware of assessment order quite late

CST & VAT : Where against orders of assessment dated 29-7-2007, assessee filed appeals on 23-4-2010 and Appellate Authority dismissed appeals on ground of delay, since assessee came to know about assessment orders on 13-4-2010, dismissal of appeals was erroneous

Disallowance of bogus commission paid to agent in previous year could trigger reopening of cases of

IT : Where in a subsequent year procurement charges were disallowed as no services were found to have been rendered by agents, said fact would be an information for initiating reassessment proceeding of earlier years

Tribunal could extend stay after passing speaking order that delay hadn’t taken place due to fault o

Excise & Customs : Tribunal may extended period of stay even beyond 365 days, but, only after recording satisfaction that delay in not disposing of appeal is not due to fault of assessee and assessee is not resorting to dilatory tactics

No penalty if assessee offers undisclosed income to tax in return filed pursuant to search of anothe

IT : Where pursuant to search proceedings in case of another person, assessee filed a return declaring certain undisclosed income which was duly accepted while framing assessment under section 143(3), read with section 153A, there being no concealment of particulars of income, impugned penalty order passed under section 271(1)(c) was to be set aside

HC directs Assessing Authority to gather info from assessee’s agent regarding alleged concealed purc

CST & VAT : Where Assessing Authority issued on assessee a notice alleging that it concealed purchases of timber and further he disagreed from assessee made addition to its turnover in respect of above purchases, matter was remitted for consideration afresh

CLB quashed applicant’s frivolous plea asking for copy of annual accounts as he had failed to pay re

CL : Where applicant demanded copy of annual accounts of company but cheque of requisite fee could not be encashed due to overwriting, application filed by applicant under section 219 was to be dsimissed

Deductor couldn't be treated as an assessee-in-default if deductee was not liable to pay taxes due t

IT/ILT : If recipient of income has no tax liability as per assessment framed under section 143(3) due to losses, then section 201 cannot be made applicable to assessee payee for non-deduction/delay in deposit of TDS

Tribunal is empowered to extend stay even for delay beyond 365 days after passing speaking order

Excise & Customs : Stay granted by Tribunal may be extended even beyond 365 days, but, for every extension beyond 180 days, Tribunal must pass speaking order and record its satisfaction that delay in disposing of appeal is not attributable to assessee

Receipts of all institutions of one society are to be clubbed together to check limit of 1 crore und

IT: Where receipts of assessee-society from two institution managed and run by it exceeded Rs. 1 crore, in absence of exemption certificate under section 10(23C), receipt exceeding over Rs. 1 crore was rightly brought to tax

Officer-in-charge rightly ordered seizure of goods when certain undeclared goods were found in truck

CST & VAT : Where assessee, a transporter, had sent goods of different consignors from Delhi to Tripura and when truck reached at entrance check post of Tripura State, driver produced Form XXVI and thereafter when officer-in-charge physically inspected truck found therein various goods, which had not been declared, action of officer-in-charge in seizing goods was justified

Share transactions supported by broker's note, share certificate and demat statement couldn't be hel

IT: Where transaction of purchase and sale of shares were supported with broker's note, contract note, copies of share certificates and de-mat statement, transaction of shares could not be treated bogus

Contractee validly reimbursed only ST paid in cash as contract provides for reimbursement on proof o

Service Tax : Where contract provides for reimbursement of taxes only on production of evidence of 'payment', then, view of contractee that only service tax paid in cash will be reimbursed and not that paid through credit, cannot be faulted

ITAT denies depreciation as assessee failed to prove that asset was used in his business operations

IT: Depreciation on factory building and plant & machinery never put to use during year, could not be allowed

ITAT directs TPO to make afresh TP adjustment in accordance with directions issued by it earlier

IT/ILT : Where in pursuance of Tribunal's directions, TPO passed an order wherein addition made to assessee's ALP was reduced, in view of fact that there were variations and inconsistencies while implementing directions of earlier Bench, impugned order was to be set aside with a direction to Assessing Officer/TPO to revise transfer pricing adjustment in accordance with directions issued by Tribunal in letter and spirit

ITAT directs TPO to make afresh TP adjustment in accordance with directions issued by its earlier

IT/ILT : Where in pursuance of Tribunal's directions, TPO passed an order wherein addition made to assessee's ALP was reduced, in view of fact that there were variations and inconsistencies while implementing directions of earlier Bench, impugned order was to be set aside with a direction to Assessing Officer/TPO to revise transfer pricing adjustment in accordance with directions issued by Tribunal in letter and spirit

Penalty under Rule 96ZO can be lesser than duty; mandatory penalty equivalent to duty is unconstitut

Excise & Customs : Rules 96ZO(3), 96ZP and 96ZQ, up to extent of providing for mandatory minimum penalty without mens rea and without any element of discretion, are excessive and unreasonable restriction on fundamental rights and are, accordingly, ultra vires Act and Constitution

Handwritten statements corroborated with other docs couldn’t be said to be obtained under coercion u

FERA : Where statement of appellant was recorded in his own handwriting and was corroborated by other independent statements, statement of appellant could not be said to be obtained under coercion and penalty imposed upon appellant for contravention of section 9 on basis of that statement was justified