Non-appearance of assessee due to demise of counsel's father is condonable

Service Tax : Where assessee could not appear in hearing of stay application due to demise of father of assessee's counsel, said non-appearance was due to genuine reason and hence, matter was remanded back to Tribunal for hearing afresh

Capital introduced by partners in the firm couldn't be deemed as loan to invoke provisions of sec. 2

IT : Provisions of section 269SS would not be violated when money is exchanged inter-se between partners and partnership firm in spite of fact that partnership firm and individual partners are separate assessees

Rebate on export of service is allowable even if declaration is filed after the export

Service-tax : Rebate on export of services cannot be denied merely because declaration under para 3.1 of Notification 12/2005-ST was filed after export and not prior to export; filing of declaration is a procedural formality and contents of declaration can be verified even after export from records maintained

SAT: Penalty imposed on applicant for not making timely disclosure under takeover code and Insider t

SEBI : Where appellant made delay in making disclosures as required under regulation 29 of SAST Regulations and regulation 13 of PIT Regulations, penalty was to be imposed upon appellant

No TDS on export commission paid to NR agent for rendering services abroad in absence of his PE in I

IT/ILT : No TDS on export commission paid to NR agent for rendering services abroad in absence of his PE in India

No clubbing of interest-free loan given by ‘Shahrukh Khan’ to his wife from whom she had purchased a

IT : 'Shahrukh Khan' gave interest-free loan to his wife, Gauri Khan, who in turn, purchased a residential house and jewellery from said loan amount. The department clubbed the value of loan amount in the net wealth of 'Sharukh Khan'. Extending cash loan, to wife does not come within the definition of asset as provided under Section 2(ea) of the wealth tax Act, thus, it could not be said that there was a transfer of asset; the impugned loan amount was not includible in net wealth of assessee

ITAT invokes MFN clause to import make available clause from India-Portugese DTAA into the India-Swe

IT/ILT : Swedish company can claim Fee for Technical Services ('FTS') received from its Indian subsidiaries as tax-exempt if 'make available' condition is not satisfied on the basis of Indo-Portugese DTAA even though Indo-Sweden DTAA makes no reference to 'make available' condition. In view of the Most Favoured Nation clause ("MFN clause") in the protocol to the Indo-Sweden DTAA, a Swedish company can claim beneficial provisions for FTS contained in a later treaty such as Indo-Portugal treaty

Direct Grape Imports From India

So far the European market has responded well to Thompson Seedless as there is a small window between South African and Egypt. The season for Indian Grapes normally starts from November and then ends mostly end of March beginning of April, depending on the arrival of winter and other weather conditions. Thompson Seedless normally starts at the mid or end of January and lasts till end of March, beginning of April.

The grapes have been strong in demand, particularly in Germany, Holland, Poland and in Sweden. Outside the European Union, Russia is a really good market for Indian Grapes. At this moment Don-Limon is shipping Indian Grapes directly to Russia with regular interval. Indian grapes are normally packed either in 4,5 Kg loose, 9 x 500 grams per carton or in punnets for the super markets 10 x 500 grams and 5 kgs per carton. They are packed in well designed, Don-Limon boxes.

The State of Maharashtra is the main area for Indian Grape production, where fluctuations in weather condition and temporary heavy rainfall are the main challenges of Indian Grapes. The Indian Thompson Seedless grape producers involved have Global Gap certificates, while laboratory analysis is supervised by the Indian Government by means of its laboratory and spraying list. This creates the needed trust to build new partnerships Europe. On top of that, the standard screening for residues of pesticides (LCMS/MS and GCMS) upon arrival further secures the safety of the fruit.

The situation was bad in 2010 when Indian Grapes were banned as there were residues of unregistered pesticides in it. The problem lay not as much in the level of residue as in the fact that the particular agent wasn’t registered and approved by the EU. Since then the India and German governments have worked together and registered and approved the product so that European sales could be retaken from 2012. Since then Indian grapes have regained a really good position of trust.

Source:freshplaza.com

200% Rise In Mmf Fabric Export From Surat To Pakistan

The export of man-made fibre (MMF) fabrics from Surat to Pakistan has seen an increase of 200 per cent since 2011-12, a welcome development considering the strained relations between the two countries.

Surti traders, mostly Muslims and Sindhi and Punjabi Hindus, exported dress materials, saris, fabrics worth Rs 1,300 crore to Karachi, Peshawar and Lahore via Mumbai, Delhi, Dubai and Bangladesh from April 2014 to January 2015-an increase of 30 per cent over previous year.

The total export from India to Pakistan from April 2014 to January 2015 witnessed 20 per cent increase at Rs 2,400 crore compared to the same period in previous year, according to Synthetic and Rayon Textile Export Promotion Council (SRTEPC). The fabric export to Pakistan is predicted to touch Rs 3,000 crore by the end of this financial year.

While the export of fabric to the USA and UAE has remained unchanged at $500 million and $400 million per annum respectively, to Pakistan it has witnessed a phenomenal growth from $169 million in 2012-13 to $400 million in 2014-15. Interestingly, 60 per cent of it was exported from country's biggest man-made fibre industry in Surat.

SRTEPC assistant director Tejal Mewar told TOI, "After the USA and UAE, Pakistan is an important destination for MMF export from India. As Surat happens to be the largest MMF hub, the export of fabrics has witnessed a tremendous growth here over the last few years. Four years ago, the export to Pakistan was just below $100 million, but now it is likely to cross $450 million by March 2015."

Mewar added, "The direct export from Surat to Pakistan would be in the range of Rs 400 to Rs 500 crore per annum. A huge quantity of Surti fabric is exported via Dubai and Bangladesh. However, there is no record available with the council for such exports."

Official sources said export of MMF fabric increased after trade was allowed from Wagha border in October 2013. Still Pakistan has kept around 78 textile items, mostly manufactured in Surat, in the negative list.

Devkishan Manghani, chairman of textile committee of Southern Gujarat Chamber of Commerce and Industry, said, "Pakistan's textile industry is cotton based. Thus, it depends heavily on China and India for MMF imports. Surti fabrics are in huge demand in Pakistan as they are used for value-addition in burqas, sherwanis, suits, salwars etc."

Source:timesofindia.indiatimes.com

While exercising appellate powers High Court cannot review factual findings of lower authorities

Excise & Customs : High Court, exercising its appellate power, cannot review factual findings based on evidence considered by lower authorities; it can only correct an order if it is based on irrelevant or manifestly incorrect construction of facts or if based on mis-appreciation of law or on non-application of mind

Prior to 1-4-1997, banks could recognize sticky loans on cash basis while accounting on mercantile b

IT : Prior to amendment to section 145 with effect from 1-4-1997, there was nothing wrong in accounting sticky loans on cash basis while following mercantile system of accounting generally

No denial of set-off losses of amalgamating Co. against book profit of assessee due to change of opi

IT: Where Assessing Officer allowed assessee's claim for set off of loss of company amalgamated with it against its book profits while determining MAT liability, he could not initiate reassessment proceedings subsequently merely on basis of change of opinion that aforesaid loss was wrongly set off

Sugar Mills Owe Rs 16,334 Cr To Cane Farmers As Of Feb-End

Sugar mills owed Rs 16,364 crore to sugarcane farmers till February of the current marketing year, starting October 2014, due to low prices of sweetener in retail markets.

"The outstanding sugarcane dues are mainly on account of low realisation from sale of sugar," Food Minister Ram Vilas Paswan said in a written reply to Lok Sabha.

Out of the total sugarcane arrears, Uttar Pradesh-based sugar mills owed maximum at Rs 7,870.57 crore, followed by Maharashtra at Rs 2,532.49 crore. Cane arrears in Karnataka stood at Rs 2,154.97 crore as on February 28 of 2014-15 marketing year (October-September).

Bihar millers owed Rs 581 crore, while mills in Tamil Nadu, Haryana and Punjab had an outstanding cane price payment to the tune of Rs 521.9 crore, Rs 516.11 crore and Rs 507.24 crore, respectively. Uttarakhand millers owe Rs 473.37 crore to sugarcane farmers.

In order to facilitate clearance of cane price arrears, Paswan said the government had recently approved subsidy of Rs 4,000 per tonne on export up to 1.4 million tonnes of raw sugar in the ongoing 2014-15 marketing year.

"There have been some budgetary constraints in disbursement of export incentive for the export of raw sugar undertaken under the scheme during the sugar season 2013-14. "However, corrective measures have been taken to remove such constraints to facilitate early disbursal," Paswan said.

Sugar production of India, the world's second-largest producer, is estimated at 26.5 million tonnes in the 2014-15 marketing year as compared to 24.55 million tonnes in the previous year, according to government data.

In first six months of 2014-15 marketing year, production has increased by over 14 per cent to 22.18 million tonnes, according to industry body ISMA. The domestic demand is pegged at 24.8 million tonnes in the current marketing year, ending September.

Source: business-standard.com

India: Mining Halt Fuels Iron Ore Imports

There has been a sudden spurt in import of iron ore in Odisha this year apparently due to shortage of raw material from local sources due to slowdown in mining activities.

According to recent written reply submitted by steel and mines minister Prafulla Mallik in the assembly, various companies imported 9.49 lakh million tonne of ore in 2014-15 compared to no import in 2013-14 and 1,404 MT in 2012-13. There was no iron ore import in 2011-12, 2010-11, 2009-10. Similarly, 1.32 lakh MT iron ore pellets were imported in the year compared to just 296 MT in 2013-14.

Mallik said the import depends on number of factors such as prices of raw material, demand of end-products, marketability and market price of end products.

Operational steel mills such as Tata Steel and Visa Steel were among the largest importers of iron ores while Jindal Steel and Power Limited and Simec Indus Resources are importing pellets.

Official sources said the situation has arisen because mining has stopped in several big mines thanks to expiry of statutory clearances.

Sources said during 2013-14, 77.84 MT of iron ore was produced in the state. However, only 16.925 MT were consumed domestically. The domestic consumption of iron ore was less than 30 per cent of total iron ore production during the last three financial years. In a separate written reply, the minister said of the 200 mining lease holders involved in excess mining, 140 lease holders had approached the re-visional authority.

Of them, 44 mining lease holders got interim stay. He said the case pertaining to excess mining was sub-judice in the Supreme Court. The government would take next course of action after the SC verdict.

The minister said after the recent MMDR ordinance the state government has started accessing the minerals for e-auction in tune with the central government norms.

The government is taking help of the Geological Survey of India, Mineral Exploration Corporation, Orissa Mining Corporation and directorate of geology for estimating the minerals, he added.

Source:hellenicshippingnews.com

Indian Refineries Step Up Oil Imports From Newer Geographies Like Mexico, Iraq

Indian refineries have consistently reduced imports from traditional markets like Saudi Arabia and Iran and have stepped up purchases from other geographies such as Mexico, Iraq and Venezuela while building inventories, as crude prices remain weak due to lower demand.

Availability of cheaper crude variants and softening of shipping cost have encouraged Indian companies to look at different sources to buy crude oil for refining, and has therefore helped them achieve a more diversified portfolio. India has also significantly cut imports from Iran, which stood at its lowest in almost 18 months in February, to keep it within the limits allowed as per the deal aimed at curtailing the latter's nuclear programme.

"Indian companies are increasingly importing from Mexico and Venezuela. The cost of transporting from these countries is higher than from the Middle East, but they are able to buy cheaper heavy crude," said Nitin Tiwari, vice president - institutional research, Religare Capital Markets.

The change in imports by Indian companies is helping the country move closer to its long pending target of diversifying its energy sources. Industry officials said while the share of imports from the Middle East would change, given the higher imports from other countries, the volume imported from OPEC may not fall drastically.

"It has been India's ambition to have a prudent mix of energy sources but the success of it depends on price dynamics and the diversification strategy.

Now with the transport costs coming down and other countries, some of which are facing slowdown internally, offering certain and steady prices, it is possible for companies to buy from them," said Anil Razdan, energy expert and former additional secretary of Ministry of Petroleum & Natural Gas.

While the companies do not share their import data, Thomson Reuter's data, which is based on tanker arrivals, revealed a significant drop in imports from Iran which is facing sanctions.

According to Thomson Reuter's data, India bought 102,200 barrels per day (bpd) of crude and condensate from Iran in February, down 63% from January and 62% from a year ago. Essar Oil, which was the biggest importer of oil from Iran, shipped in 38.5% lower in January and is expected to reduce it further.

"Reliance Industries is buying more heavy crude from Latin America as it comes out $7-10 per barrel cheaper than the Middle Eastern oil. Their high complexity refinery can run very well even with the cheaper heavy crude," said Dhaval Joshi, research analyst, Emkay Global Financial Services.

According to Platts, India's imports from Saudi Arabia in January this year dropped 8.85% to 3.19 million metric tonnes. While imports from Iraq have seen a sharp increase in January, rising 56% to 2.48 million tonnes. Industry data suggests that Reliance Industries has been consistently increasing imports from Latin America, and in January alone, its imports grew 30% year-on-year.

Source:economictimes.indiatimes.com

Rbi Further Restricts Gold Imports

The Reserve Bank of India yesterday late evening asked the banks not to sell gold imported on consignment basis to jewellers on outright basis. The clarification is expected to tighten gold imports.

On 18th February the central bank allowed banks to import gold on consignment basis and also allowed them to provide gold metal loans to jewellers. However, banks were found importing gold on consignment basis and selling that to jewellers against full payment. This has increased imports as jewellers were buying gold virtually off the shelf. Banks were also considering gold imported on consignment basis to provide gold metal loans to jewellers.

Now RBI has said that gold imported on consignment basis, where payment is to be made after realisation of money after sale, can be used only for providing gold metal loans to jewellers. The loan is for a tenure of 180 days. Prithviraj Kothari of RiddhiSiddhi Bullion said, "The move could tighten supply of gold as jewellers will have to place order for import with importing agency and wait for delivery."

Open market premium, which fell to $2-3 per ounce, may also inch up. However, an industry veteran said that banks will now try to increase gold metal loans by importing gold on consignment basis.

Imports in March have been rising after import duty cut on gold didn't materialise in budget and jewellers were out of stock and was expected to touch 90 tonnes. The latest clarification by the RBI through an email sent to importing banks would restrict import flow, said a jeweller. Import of gold in February was estimated at 52 tonnes on gross basis.

Sudheesh Nambiath, Senior Analyst- Precious Metals, GFMS Thomson Reuters said: "In February 2015 India imported 52.59 tonnes of gold compared to 32.75 tonnes in February last year. Duty- free imports for the purpose of exporting jewellery, medallions and coins were at 12.67 tonnes. Switzerland continued to retain its dominance by exporting 10.59 tonnes to India in February."

Meanwhile gold market has remained under pressure because of a possibility of an end to zero interest rate policy by the US as its Federal Reserve is slated to meet later today.

Source:business-standard.com

Indian Rupee Opens Marginally Higher At 62.77 Per Dollar

The rupee has been a relative outperformer moving in 62.50-63.00/dollar range. We expect the rupee to continue trading in this range with a weakish bias, says Ashutosh Raina of HDFC Bank.

The Indian rupee opened marginally higher at 62.77 per dollar on Tuesday versus 62.81 Monday.

The dollar fell across the board, as investors worry that the greenback's rapid rise could prompt the Federal Reserve to be a little more cautious about raising interest rates this year.

The dollar is up 24 percent against a basket of currencies since May and it could become a key issue at this week's Fed monetary policy meeting.

Ashutosh Raina of HDFC Bank said, "The dollar continues to remain the theme with the dollar index hovering around the 100 mark. The rupee has been a relative outperformer moving in 62.50-63.00/dollar range. We expect the rupee to continue trading in this range with a weakish bias."

Source:moneycontrol.com

Director couldn't be prosecuted for violating CIS norms as he had resigned from Co. before CIS norms

SEBI : Where petitioner was not a Director of accused company during relevant time in year 1999, when Regulation came into force, prosecution of petitioner in a complaint filed against company for violation of CIS Regulations was not sustainable

Revenue couldn't demand Sec. 220 interest without showing any reason for not initiating any action f

IT : Where revenue had not placed any material to show that as to why no action was initiated for 27 years and genuine hardship to assessee was also not considered, demand of interest under section 220(2) was not justified

Credit on capital goods can be availed of even before their installation

Cenvat Credit : Credit on capital goods is allowed in financial year of receipt and balance in subsequent financial year(s), there is no requirement that capital goods must have been installed; hence, credit availed and utilised before installation of capital goods is valid

HC upheld disallowance as assessee failed to give reason for increase in conversion charges paid to

IT : Where assessee could not give satisfactory reason for increase in conversion charges paid to its sister concern, part of such conversion charges was disallowed under section 40A(2)

Payment of entire ST with interest before issuance of show cause notice saves assessee from clutches

Service-tax : Since service tax law itself permits filing of belated return and payment of tax belatedly, every delay in payment cannot attract penalties; section 73(3) regarding non-issuance of notice if entire tax and interest is paid before notice, cannot be rendered redundant

At the time of Sec. 80G approval object of trust needs to be examined without considering applicatio

IT: At time of granting approval under section 80G, only object of trust is required to be examined

HC accepts cash method of accounting in respect of money retained by customers for fulfilment of war

IT : Where assessee was consistently following system of accounting of crediting money retained by customers from sale proceeds as and when received and Assessing Officer accepted such method in earlier years, there was no need to disturb method of accounting followed by assessee

No working capital adjustment in TP proceedings if assessee neither pay any interest nor bear workin

IT/ILT : Where assessee did not pay interest on working capital loans and did not bear any working capital risk, revenue authorities were not justified in making negative working capital adjustment in course of transfer pricing proceedings

Proceedings quashed against bank officials for violating FERA as ED had already dropped allegation a

FEMA: Where Enforcement Directorate had dropped allegations of consent and connivance on part of appellant - bank officials in show cause notice alleging contravention of sections 6 and 49 of FERA, complaint levelling allegations of consent and connivance by appellants was to be quashed

No reversal on inputs issued from section to be used in manufacture of final product

Cenvat Credit : Inputs issued from store section to be used in manufacture of final product, have to be treated as inputs used in manufacture and no Cenvat credit reversal is required even if WIP is destroyed by fire; however, loss by fire of inputs lying in store as such is ineligible for credit

Indian Refiners Restock With West African Oil Ahead Of Strategic Reserve Launch

India has nearly doubled the amount of West African oil it will import in the first half of April, traders said, in a buying spree aimed at refiners building stocks ahead of purchases to fill the country's new strategic petroleum reserve (SPR).

The world's fourth-largest energy consumer has stepped up purchases of the Nigerian and Angolan crude for March and April, sparking interest from a market that is watching for stockpiling after oil prices crashed by more than 60 per cent between last June and January 2015.

Traders said Indian state-backed refiners, led by Indian Oil Corp, booked roughly 15 million barrels of West African oil to arrive in the first part of April - double what they usually import.

The stream of bookings has continued; in the past week, state-controlled oil refiners have booked a further 5 supertankers as part of a fleet of vessels that will load in West Africa in early April.

"We have heard many things - filling storage, buying less Iranian and coming out of (refinery) maintenance during April," one trader said. "IOC has done the bulk of the buying."

Indian refinery sources said they were forced into the current buying frenzy due to stock drawdowns at the end of the financial year. While these are normal moves, state refiners this year, caught out by the plunge in crude prices, have lost at least Rs 30,000 crore ($4.76 billion) on oil inventories.

"We are buying oil for our own use and not for SPR," said IOC's head of finance A.K. Sharma. State-controlled refiners Bharat Petroleum and Hindustan Petroleum have also been buying West African crudes, booking several vessels over the past few weeks.

Sources at the refineries said their lifting plans for March and April were as per schedule. A drive to virtually eliminate Iranian imports in March also made West African grades more attractive.

India is building SPRs at three locations that together can hold more than 36 million barrels of crude to help protect the energy import-reliant economy from supply disruptions and price volatility.

While the first underground storage cavern at Vizag on the east coast, with space for 9.75 million barrels of oil, is ready to be filled, sources said none of the barrels booked now will end up there. The other two SPR facilities will be ready by October.

India has provided about $388 million (Rs 2,400 crore) to buy crude for the reserve in this budget year, enough to purchase approximately 6.5 million barrels at current prices, but the buying has not yet begun. The International Energy Agency in its monthly report on Friday said that cheaper oil with help encourage India, as well as China and South Korea, to beef up strategic storage.

Any effort to fill India's strategic reserves, which will amount to roughly one-third of daily global oil demand, would absorb some of the global glut of oil and could help shore up benchmark prices. Already, the spring purchases have boosted West African crude oil differentials versus the benchmark dated Brent price.

Grades popular among Indian refineries, such as Bonny Light and Qua Iboe, have seen their differentials rise to their highest level since the oil price started its near 60 percent slide in June last year.

Source:thehindubusinessline.com

Coffee Prices Decline On Good Crop Prospects In Brazil

Coffee growers are once again facing sleepless nights as bean prices are on the downward curve in the last few weeks. As the news that Brazil would harvest a better than expected crops for 2015-16 spread, prices have started falling and in the last two months, Arabica prices have declined 30%.

Currently, Arabica bean prices are ruling at 125 cents per lb compared to 180 cents per lb in October 2014. Since February 9, prices have declined 15% compared to 148 cents per lb. The ICO Composite Indicator prices stood at 127.97 cents per lb on March 12, the last trading session, the lowest price in the current month.

LIFFE Robusta coffee futures extended losses to a 13-month low on March 12, on fund and technical selling. LIFFE May Robusta coffee futures closed down $52, or 2.9%, at $1,768 per tonne, after touching $1,756, the lowest level since February 2014, the Coffee Board said.

"The long dry weather prevailing in Brazil last year had led to a belief that the country would harvest shorter crop in 2015-16. However, good rains in January and February in that country has now changed the outlook and it is expected to harvest a better crop than expected. This resulted in price fall everywhere," Ramesh Rajah, President, Coffee Exporters' Association told Business Standard.

The news of improved weather in Brazil added to the selling pressure. Farm gate prices in Karnataka, which contributes 70% of India's coffee output, have crashed by 20-22% since early January. Arabica prices have declined to Rs 8,750 per bag (each bag is 50 kgs) from Rs 11,000 per bag, showing a decline of 20%. Robusta prices have also declined by 20% to Rs 2,800 per bag from Rs 3,500 a bag in December and January. The harvesting for the current crop is nearing completion in major growing regions of South India including Karnataka.

"We expect the bearish sentiment will continue through the rest of this year and prices will move sideways in the coming months. The situation may slightly change once Brazil starts its harvest in June this year," Rajah said.

The Coffee Board, in its post-monsoon estimates, projected 331,000 tonnes of bean production for 2014-15, about 8.7% higher than the last year's production of 304,500 tonnes. This comprises of 231,400 tonnes of Robusta and 99,600 tonnes of Arabica. Coffee exports, during January 1, 2015 to March 12, 2015, declined 18.2% to 61,142 tonnes as against 74,741 tonnes.

Despite the downward pressure on prices, world production is expected to come to 142 million bags in crop year 2014-15, about 3.2% less than 2013-14 and its lowest level in three years. This puts the coffee market into a deficit for the current year, although stocks in exporting countries have so far allowed exports to continue at a strong pace, International Coffee Organisation (ICO) said in its latest report.

Source:business-standard.com

India Keen On Service Exports To China For Balanced Trade

There is a need for India to expand its presence in Chinese markets so as to overcome the issues of trade imbalance with China, without interrupting the bilateral trade flow between the two economies.

In a move towards bridging a widening trade deficit with China, the Government of India (GoI) is keen on promoting its services in China, so as to fill the existing trade gap between the two economies.

In this regard, the Ministry of Commerce & Industry, GoI, is focusing on promoting services from key Indian sectors like information technology, pharmaceuticals, tourism, textiles and agricultural products, in the Chinese markets.

The Indian government is also keen on setting up a joint working group with Beijing, to discuss growth prospects and further plan a strategy to market Indian services in China.

India is seeking to fill the gap that occurred due to decrease in service exports from China, which was a result of the latter’s tilt towards high-end technology products, said an official, according to the sources.

India is further mulling to boost the tourism cooperation with China, with an aim to make the nation a most favoured tourism destination for Chinese, added the official, while also pitching for higher export market scope for Indian generic products in China, which lags significance in the sector compared to that of India.

According to Reserve Bank of India (RBI), while China ascended to become largest trading partner of India from 2008, its exports to India increased so sharply that, it is inflicting an unsustainable trade deficit on India.

According to RBI, the total bilateral export potential of India to China was estimated at $ 28.4 billion in 2008 and it reached to $ 53.3 billion in 2012.

The export potential of India was nearly three times than that of actual bilateral export with China in 2008 and increased further to three and half times in 2012, due to the decline of bilateral exports in 2012, the RBI said.

In this regard, the RBI says there is a need for India to expand its presence in Chinese markets so as to overcome the issues of trade imbalance with China, without interrupting the bilateral trade flow between the two economies.

Earlier in February 2015, the Reserve Bank of India (RBI) had said in its annual survey report on ‘Computer Software and Information Technology Enabled Services Exports: 2013-14’ that the exports of the computer services and ITES services registered a growth of 14.6% in dollar terms, over the exports during previous financial year.

The RBI 2015 report also said that in the current year, engineering design and product development stood as the fastest growing segments, driven by value-added solutions from existing players and newer global in-house centres being established in India.

Expressing his dissatisfaction over 15% decline in India’s trade in February 2015, M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) also said on Friday, that ‘Indian exporters are losing out particularly in the case of China, which has fixed exchange rate against Euro and other currencies, while Indian Rupee is fast fluctuating except against the US dollar. This partly explains 48% growth in China’s exports in February, 2015.’

The FIEO president urged the government to implement the Foreign Trade Policy, may be effective from April 1, 2015, so as to provide a long term stable regime for exports and asked to immediately introduce Interest Subvention for the exporters.

Source:thedollarbusiness.com

Mining Halt Fuels Iron Ore Imports

There has been a sudden spurt in import of iron ore in Odisha this year apparently due to shortage of raw material from local sources due to slowdown in mining activities.

According to recent written reply submitted by steel and mines minister Prafulla Mallik in the assembly, various companies imported 9.49 lakh million tonne of ore in 2014-15 compared to no import in 2013-14 and 1,404 MT in 2012-13. There was no iron ore import in 2011-12, 2010-11, 2009-10. Similarly, 1.32 lakh MT iron ore pellets were imported in the year compared to just 296 MT in 2013-14.

Mallik said the import depends on number of factors such as prices of raw material, demand of end-products, marketability and market price of end products.

Operational steel mills such as Tata Steel and Visa Steel were among the largest importers of iron ores while Jindal Steel and Power Limited and Simec Indus Resources are importing pellets.

Official sources said the situation has arisen because mining has stopped in several big mines thanks to expiry of statutory clearances.

Sources said during 2013-14, 77.84 MT of iron ore was produced in the state. However, only 16.925 MT were consumed domestically. The domestic consumption of iron ore was less than 30 per cent of total iron ore production during the last three financial years. In a separate written reply, the minister said of the 200 mining lease holders involved in excess mining, 140 lease holders had approached the re-visional authority.

Of them, 44 mining lease holders got interim stay. He said the case pertaining to excess mining was sub-judice in the Supreme Court.The government would take next course of action after the SC verdict.

The minister said after the recent MMDR ordinance the state government has started accessing the minerals for e-auction in tune with the central government norms.

The government is taking help of the Geological Survey of India, Mineral Exploration Corporation, Orissa Mining Corporation and directorate of geology for estimating the minerals, he added.

Source:timesofindia.indiatimes.com

Use of MS pipes/angles to manufacture capital goods is eligible for credit as they are used within t

Cenvat Credit : 'MS pipes/channels/angles, girders, bars, structures, plates, shapes and sections' used in manufacturing capital goods being 'cefixime, sterile, new solvent recovery, new pipe rack, etc.' are eligible for credit as capital goods, as they are used within factory

Credit of outward transportation is available upto customer's premises if goods to be delivered on F

Cenvat Credit : Where purchase order shows that goods are to be delivered on FOR basis and assessee had complied with other conditions of Circular, dated 23-8-2007, assessee is entitled to credit of 'outward transportation' upto customer's premises

CBDT notifies Rules for rollback of an Advance Pricing Agreement

IT/ILT : Income-Tax (Third Amendment) Rules, 2015 – Amendment in Rules 10F, 10H, 10-I, 10K, 10M, Form 3CEC & 3CED and Insertion of Rules 10MA, 10RA & Form 3 CEDA

Department can't raise demand on basis of actual production if duty is paid on basis of production c

Excise & Customs : In case of duty based on capacity of production, it is deemed production rather than actual production, which is relevant for calculation of duty; hence, actual production, even if higher than capacity, cannot be used to raise demand

Exp. incurred on expansion of existing business is allowable as revenue exp.

IT : When certain profit is to be excluded from claim of deduction under sections 80HH, 80-I and 80HHC, it is not gross profit but net thereof, that is gross profit minus expenditure incurred for earning such profit, which should be excluded

TPO has to accept price charged by assessee on his failure to find a comparable under CUP method

IT/ILT: Where TPO has expressed his inability in finding a comparable under CUP method, there is no other choice left to TPO but to accept price charged by assessee as ALP

NI Act: Order of Magistrate was to be set-aside as it took cognizance of complaint without verifying

Negotiable Instruments Act : Where Magistrate had taken cognizance of complaint without prima facie establishing fact as to whether power of attorney existed in first place and whether it was in order, order passed by Magistrate was to be set aside

Consideration received by apex co-operative for monitoring/ guiding its member co-operatives wasn't

Service Tax : Consideration received by apex co-operative for monitoring/guiding its member co-operatives is classifiable under 'club or association' service and does not amount to 'Management Consultancy Service' and not liable to service tax

ITAT isn't precluded from considering additional ground raised by assessee even if it isn't raised b

IT : Even if Commissioner (Appeals) may or may not have rendered any view on issue raised, does not mean that Tribunal is precluded in law from considering same after it is specifically raised by assessee before it

Phosphate and potassium components of fertilizer ‘NPK’ exempt from UP VAT

CST & VAT : U.P. VAT - Where assessee was engaged in business of manufacture and sale of chemical fertilizers [NPK], which contained nitrogen, phosphate and potassium components in ratio of 10:26:26 and during year it sold NPK, assessee was entitled to exemption from payment of tax on phosphate and potassium components of NPK

'Served From India Scheme' is applicable to all Indian service providers including subsidiaries of f

FTDR : 'Served From India Scheme' is applicable to all Indian service providers including subsidiaries of foreign Companies

Uniform allowance paid to employees wouldn't be deemed as perquisite; not liable to TDS under sec. 1

IT : Uniform allowance paid by assessee to its employees could not be regarded as additional salary in form of allowance within meaning of section 17(1)(iv) attracting provisions of section 192

Commission for sales promotion isn’t analogous to selling commission; former is eligible for credit

Cenvat Credit : Commission paid to foreign agents for 'sales promotion' is different from 'selling commission'; sales promotion commission is eligible for input service credit, while 'selling commission' is not so eligible

[Indian Customs SG Notification] : Seeks to levy definitive safeguard duty on import of saturated fatty alcohol, for a period of two years and six months from the date of levy of provisional safeguard duty i.e. 28th August, 2014

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,

SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Notification

No. 1/2015-Customs (SG)

New Delhi, the 13th March, 2015

G.S.R. (E). - Whereas, in the matter of import of “Saturated Fatty Alcohols with carbon

chain length of C8,C10,C12,C14,C16 and C18 including single, blends and unblended (not

including branched isomers) which includes blends of a combination of carbon chain lengths,

C12-C14, C12-C16, C12-C18, C16-18 and C14-C16 (commonly categorized as C12-C14)”

(hereinafter referred to as the subject goods), falling under tariff item 2905 17 00 or sub-heading

3823 70 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred

to as the Customs Tariff Act), the Director General (Safeguard), in his preliminary findings,

published vide number G.S.R. 357 (E), dated the 26th May, 2014, in the Gazette of India,

Extraordinary, Part II, Section 3, Sub-section (i), dated the 26th May, 2014, had come to the

conclusion that increased imports of subject goods into India has caused and threatened to cause

further serious injury to the domestic producers of subject goods, thereby necessitating the

imposition of provisional safeguard duty on imports of the subject goods into India;

And, whereas, on the basis of the aforesaid findings of the Director General (Safeguard),

the Central Government had imposed provisional safeguard duty on import of the subject goods

into India for a period of two hundred days from 28th August, 2014 vide notification of the

Government of India in the Ministry of Finance (Department of Revenue), No. 03/2014-Customs

(SG), dated the 28th August, 2014, published in the Gazette of India, Extraordinary, Part II,

Section 3, Sub-section (i), vide number G.S.R. 623(E), dated the 28th August, 2014;

And, whereas, the Director General (Safeguard) in its final findings vide number G.S.R.

712(E), dated the 9th October, 2014, published in the Gazette of India, Extraordinary, Part II,

Section 3, Sub-section (i), has recommended imposition of safeguard duty on subject goods

excluding Saturated Fatty Alcohols with carbon chain length of pure C8, falling under tariff item

2905 17 00 or sub-heading 3823 70 of the First Schedule of the Customs Tariff Act, for a period

of two years and six months from the date of levy of provisional safeguard duty;

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 8B of

the Customs Tariff Act, read with rules 12, 14 and 17 of the Customs Tariff (Identification and

Assessment of Safeguard Duty) Rules, 1997, the Central Government after considering the said

final findings of the Director General (Safeguard), hereby imposes on subject goods excluding

Saturated Fatty Alcohols with carbon chain length of pure C8, falling under tariff item 2905 17

00 or sub-heading 3823 70 of the First Schedule to the Customs Tariff Act, when imported into

India, a safeguard duty at the following rate, namely:-

(a) twenty per cent. ad valorem when imported during the period from 28th August,

2014 to 27th August, 2015 (both days inclusive);

(b) eighteen per cent. ad valorem , when imported during the period from 28th August,

2015 to 27th August, 2016 (both days inclusive); and

(c) twelve per cent. ad valorem , when imported during the period from 28th August,

2016 to 27th February, 2017 (both days inclusive).

2. Nothing contained in this notification shall apply to imports of subject goods excluding

Saturated Fatty Alcohols with carbon chain length of pure C8, from countries notified as

developing countries under clause (a) of sub-section (6) of section 8B of the Customs Tariff Act,

other than Malaysia, Thailand and Indonesia.

3. The safeguard duty imposed under this notification shall be levied with the effect from the

date of the imposition of provisional safeguard duty, that is, the 28th August, 2014, and shall be

payable in Indian currency.

[F No. 354/108/2014-TRU]

(Akshay Joshi)

Under Secretary to the Government of India

Income of slot charterer is includible in tonnage income even if its operations carried out in non-q

IT : Income from slot charter operations of a tonnage tax company is liable to be included while determining tonnage income under tonnage tax scheme even if such operations are carried on in ships which are not qualifying ships in terms of provisions of Chapter XIIG of Act

[DGFT Notification] : Addition of two new ports for import of new vehicles.

To be Published in the Gazette of India Extraordinary

Part-II, Section-3, Sub-Section (ii)

Government of India

Ministry of Commerce & Industry

Department of Commerce

Udyog Bhawan

Notification No.117 (RE-2013)/2009-2014

New Delhi, Dated the 13th March, 2015

Subject: Addition of two new ports for import of new vehicles.

S.O.(E) In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.3 and 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby amends the Import Policy Condition 2 to Chapter 87 of ITC(HS) 2012, Schedule 1 (Import Policy) as under:

2. Kattupalli Port and APM Terminals, Pipavav Port are added to the existing list of 12 ports / ICDs through which import of new vehicles is permitted under Policy Condition 2(II) (d) of Chapter 87 of ITC(HS) 2012, Schedule 1 (Import Policy). Accordingly, Policy Condition 2(II) (d) of Chapter 87 is revised to read as under:

"The import of new vehicles shall be permitted only through the following Customs Ports:

Seaports - (i) Nhava Sheva, (ii) Mumbai, (iii) Kolkata, (iv) Chennai, (v) Ennore, (vi) Cochin, (vii) Kattupalli, (viii) APM Terminals Pipavav;

Airports - (ix) Mumbai Air Cargo Complex, (x) Delhi Air Cargo, (xi) Chennai Airport; and

ICDs - (xii) Telegaon Pune, (xiii) Tughlakabad & (xiv) Faridabad."

3. Effect of this notification:

Two new Customs Ports, Kattupalli Port and APM Terminals, Pipavav Port are being added to the list of 12 existing ports/ICDs, thereby taking the total number of ports/ICDs to 14, for importing new vehicles.

(Pravir Kumar)

Director General of Foreign Trade

E-mail: dgft[at]nic[dot]in

[Issued from 01/89/180/29/AM-09/PC-2(A)]

[DGFT Notification] : Specifying documents required for Export and Import.

To be published in the Gazette of India Extraordinary Part II

Section 3, Sub Section (II)

Government of India

Ministry of Commerce and Industry

Directorate General of Foreign Trade

Udyog Bhavan

Notification No. 114 (RE-2013)/2009-2014

New Delhi, the 12th March, 2015

Subject: Specifying documents required for Export and Import

S.O.(E) In exercise of the power conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby inserts a new Para 2.53 of Foreign Trade Policy, 2009-14:

2. Para2.53: The following mandatory documents are prescribed for exports and imports of goods from/into India:

(a) Mandatory documents required for export of goods from India:

1. Bill of Lading/Airway Bill

2. Commercial Invoice cum Packing List*

3. Shipping Bill/Bill of Export

(b) Mandatory documents required for import of goods into India

1. Bill of Lading/Airway Bill

2. Commercial Invoice cum Packing List*

3. Bill of Entry

[Note: *(i) As per CBEC Circular No. 01/15-Customs dated 12/01/2015.

(ii) Separate Commercial Invoice and Packing List would also be accepted.]

(c) For export or import of specific goods or category of goods, which are subject to any restrictions/policy conditions or require NOC or product specific compliances under any statute, the regulatory authority concerned may notify additional documents for purposes of export or import.

(d) In specific cases of export or import, the regulatory authority concerned may electronically or in writing seek additional documents or information, as deemed necessary to ensure legal compliance.

(e). This Notification shall come into effect from 1 st April, 2015.

3. Effect of this Notification: Only three documents each {as in para 2.(a) & (b above} would be mandatory for exports and imports.

(Pravir Kumar)

Director General of Foreign Trade

E-mail: dgft@nic.in

[Issued from (01/93/180/23/AM-15/PC-2(B)]

CESTAT waived of penalty as taxability of services was prone to different interpretations

Service Tax : Where taxability of service was disputed and prone to different interpretations, no motive can be assigned to assessee to evade any service tax and same constitutes a reasonable cause for waiver of penalties under section 80

Waiver of loan wasn't taxable as business income when such loan wasn't treated as business transacti

IT : Where in earlier years revenue did not accept loan transaction as business transaction, waiver of said loan could not be considered as business income under section 28(iv)

PWD of Haryana, being a Govt. body, couldn't be considered as an enterprise under Competition Act

Competition Act: PWD of Haryana is not an 'enterprise' under section 2(h) of Competition Act, 2002

SAT quashes SEBI’s order barring DLF from accessing capital markets for 3 years

.

Tribunal cannot decide upon issue of constitutionality or legality of a Rule, rules Bombay High Cour

CST & VAT : Maharashtra VAT - Where Assessing Authority had disallowed assessee's claim for set off under rule 41E and Tribunal upheld claim of assessee by concluding that rule 41E was 'to the extent the same imposing a condition of user within State' liable to be ignored, issue of constitutionality and legality of rule 41E could not have been decided by Tribunal

Mere report of Valuation Officer isn’t sufficient to reopen an assessment of builder

IT : Report of Valuation Officer would not constitute any additional information; therefore, re-opening of assessment under section 147 was not valid

No penalty on disallowance of capital gains if disclosure was made to identify investment and stock-

IT : Where assessee had disclosed all particulars relating to capital gain on sale of shares in return and balance sheet, no penalty could be levied under section 271(1)(c) merely because Assessing Officer treated such capital gain as business income of assessee

Unexplained delay in passing and serving of detention order without any exceptional circumstances wa

COFEPOSA : Where there was unexplained delay in passing and serving detention order without any exceptional circumstances to justify delay, detention order was unsustainable

CBDT issues instructions for CsIT related to non-migration of PAN due to pending refund caging

IT : Section 139A of the Income-Tax Act, 1961 – Permanent Account Number – Non-Migration of Pans Due to Pending Refund Caging

Refund on service used for export can be claimed within 1 year if refund claim is filed on or after

Service Tax : In case of services used for export of goods, service tax paid on or after coming into force of Notification No. 17/2009, may be claimed as refund as per new Notification No. 17/2009 within 1 year from export, even if goods were exported during earlier period

No denial of credit on capital goods even if they aren't owned by assessee at the time of their rece

Cenvat Credit : There is no requirement that capital goods, at time of receipt, must be owned by manufacturer or that same would cease to be capital goods, if they are installed in factory and become fixed to earth; hence, credit cannot be denied on ground that they are not owned by assessee at time of receipt or after installation, they become fixed to earth

AO rightly rejected books of timber trader as he didn't mention quality of timber on sales vouchers:

IT : Where assessee, engaged in trading of timber, did not mention quality of timber on sale vouchers, even though it had purchased timber at different rates according to quality of timber, Assessing Officer rightly rejected assessee's books of account holding that stock register was not maintained properly

Writ jurisdiction can't be invoked when alternative statutory remedy is already barred by limitation

Service-tax : Once statutory remedy is 'barred by limitation', remedy comes to an end and same cannot be entertained invoking writ jurisdiction; hence, writ petition was to be dismissed when same was filed after expiry of time-limit of filing appeal

Compounding of offence by CLB is quasi-judicial function; it is properly discharged only if order is

CL: Function of Company Law Board, while acting under section 621A is quasi judicial in nature and same could be said to have been properly discharged only if it passes an order in writing as mandated by regulation 29

Govt. notifies 'IIT, Varanasi' as scientific research association under Sec. 35(1)(ii)

IT : Section 35(1)(ii) of the Income-Tax Act, 1961 - Scientific Research Expenditure - Approved Scientific Research Associations/institutions - Indian Institute of Technology (BHU), Varanasi

Bombay High Court felt the need for performance evaluation of members of Tribunal; sets aside order

Excise & Customs : Where Tribunal neither followed, nor distinguished and not even considered its earlier order passed in respect of same/similar process, matter was remanded back to Tribunal for consideration afresh

Assessee was liable to penalty as it availed of credit on purchases made from a fictitious firm

Excise & Customs : Where it was found that assessee-dealer had made purchases from a fictitious firm and had availed/passed-on credit, assessee-dealer was liable to penalty under CENVAT credit Rules

Income unearthed during search isn't undisclosed income of block period if it is duly reflected in b

IT: Where all items of cash credits alleged against assessees were reflected in books of account, an exercise under section 158BB by Assessing Officer was not justified

Co. engaged in advisory and software support services isn't comparable to High end KPO service provi

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering advisory and software support services to its AE, in view of fact that some of comparables selected were improper on account of turnover, brand value and functional difference as they rendered high end KPO services, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh

Tribunal has power to decide upon provision applicable for levying penalty even if not called upon t

Service Tax : Even if department has not appealed against adjudication/appellate orders levying penalty under section 78, then also, on assessee's appeal against penalty under section 78, Tribunal has power to decide appropriate section applicable for levy of penalty and therefore, levy of penalty under section 76 by Tribunal was valid

RBI eases account opening norms for proprietary concerns

BANKING : Know Your Customer (KYC) Guidelines - Accounts of Proprietary Concerns

Penalty reduced as assessee had paid tax instantly on demand after wrongly availing of input tax cre

GST & VAT: Tamil Nadu VAT - Where assessee was carrying on business in food and drinks and it wrongly availed input tax credit on purchase of said items, penalty was rightly levied at 50 per cent under section 27(4)(i)

Arbitrators have to give reasons for arbitral award even if arbitral proceedings are initiated under

Arbitration Act: Where arbitrator's award was unsupported by any reason, same was to be set aside even though arbitral proceedings were initiated under old Act, i.e., Arbitration Act, 1940

ITAT couldn't pass order without considering objections of assessee relating to non-compliance of se

IT/ILT : Order of remand based by Tribunal without considering assessee's objection relating to non-compliance of section 144C by authorities below was to be set aside with a direction for de novo consideration

No new FDI can be brought in construction sector if minimum capitalization isn't achieved within 6 m

FDI/FEMA/ILT : Consolidated FDI Policy Circular 2014 - Review of Foreign Direct Investment (FDI) Policy on Construction Development Sector - Amendment in Paragraph 6.2.11 – Clarification on Press Note No. 10 (2014 Series), Dated 3-12-2014

No provisional attachment of wife's property to recover VAT dues from her husband

CST & VAT : Gujarat VAT - Where neither owner nor purchaser was dealer, attachment of property on ground that husband of owner had tax arrears, was unjustified

Recovery can't be initiated during pendency of adjudication

Service Tax : Prima facie, when demand of tax is yet to be adjudicated, it cannot be said as tax payable, for which recovery powers of section 87 may be available

Winding up petition wasn't maintainable when debt was seriously disputed by respondent-Co.

CL: Winding up petition wasn't maintainable when debt was seriously disputed by respondent-Company

Bajra seeds after processing with poisonous chemicals became new article; eligible activity for Sec.

IT: Where bajra seeds after treatment with poisonous chemicals got rendered unfit for human consumption and, was a different article or thing than raw bajra fit for human consumption, said activity would be an activity of manufacturing

On finalization of provisional assessment demand to be made after adjusting excess duty against shor

Excise & Customs : While finalizing a provisional assessment, excess payment of duty for some period must be adjusted against short payment for different period and only net duty payable must be demanded

No surcharge on works contract when assessee had paid exemption fee to avail of exemption on works c

CST & VAT : Rajasthan VAT - Where State Government vide notification dated 30-4-1993 issued under Rajasthan Sales Tax Act, 1954 exempted from tax transfer of property in goods involved in execution of works contract on condition that contractor undertakes to pay exemption fee at rate of 1 per cent on total value of contract and assessee paid such amount to avail exemption, Assessing Authority was wrong in holding that assessee was also liable to pay surcharge thereon under section 13 of Rajastha

House constructed by builder on behalf of assessee has to be considered for granting sec. 54F relief

IT: Investment of consideration received on transfer, in a flat constructed by builder within 3 years would amount to construction of a residential house for purpose of claiming deduction under section 54F

Sum paid to consultant-doctor without any stipulation of working hours or leave would attract sec. 1

IT: Where from contracts, no stipulations regarding working hours, academic leave or attachments had been found which would reveal that consultant doctors were employees of assessee, Tribunal was right in holding that there existed no relationship of employer and employee between assessee and consultant doctors and accordingly, TDS under section 194J would be applicable on doctors remuneration and not under section 192

Trust's object of paying pension to employees or their dependents isn't an object of general public

IT : Where assessee trust's object was to pay pension to employees of GCDA or their dependents from corpus created out of contributions made by said employees itself, such an object could not be an object of general public utility, hence, registration under section 12AA could not be granted

Goods rightly seized from unregistered godown as assessee failed to produce any records during surve

CST & VAT: U.P. VAT - Where Assistant Commissioner conducted a survey at godown of assessee and having found that godown was not registered with department and assessee had not produced any records before him seized stock of goods, seizure of goods was justified and assessee was directed to deposit certain amount for release of goods

Deptt. had to refund sum retained by it as it failed to decide on objections of assessee within stip

CST & VAT: Where assessee's objection was not decided in stipulated 8 months and ultimately matter was remanded by Supreme Court, amount retained by department was to be refunded to assessee

No reassessment after 4 years without obtaining sanction of CIT original assessment was made under s

IT : Where original assessment was made under section 143(3), issuance of notice under section 148 after four years from end of relevant assessment year without sanction of Commissioner was invalid

Set Com may dismiss settlement application on false statement being made by assessee before Set Com

Excise & Customs : Where an application was allowed to be proceeded with by Settlement Commission on a false statement by assessee that section 123 was not applicable and later department informed that section 123 was invoked, dismissal of said application by Settlement Commission was valid

Prior to 26-5-2010, credit couldn't be denied on that inputs which used in exempted goods exported u

Excise & Customs : In case of export under bond of exempted goods prior to 26-5-2010, credit of inputs used therein cannot be denied and said credit can be used to pay duty on any other products as well

Evasion penalty waived off on plea of ignorance even though extended period wasn't challenged by ass

Service tax : Where assessee claimed that he was not aware of liability to pay service tax under reverse charge and had belief that service tax is to be paid by service provider, Tribunal waived evasion penalty on ground of said 'ignorance' despite fact that department had invoked extended period, which was not challenged

Presence of other suppliers in relevant market of switch software in India rules out dominance of op

Competition Act : Where there were other suppliers such as ECS, BPC, FIS, Euronet and YCS in relevant market of EFT Switch/switch software in India apart from ACI , dominance of ACI was not established and, therefore, issue of abuse of dominant position did not arise

Sum advanced to subsidiary out of borrowed sums due to commercial expediency won't attract disallowa

IT : Disallowance should not be made under section 36(1)(iii), if loans had been advanced by assessee due to commercial expediency to sister concerns

Import Duty On Rubber Likely To Be Raised To 25 Percent: Sitharaman

Government plans to hike import duty on rubber to 25 per cent while a slew of other steps are under way to protect the interest of rubber growers, hit hard by declining prices, Commerce and Industry Minister Nirmala Sitharaman said today.

A methodology was also being evolved to monitor the usage of imported rubber to push domestic demand while an expert committee was examining the concerned issues in-depth, she said in Rajya Sabha in response to a calling attention motion on the plight of rubber farmers.

A proposal to enhance "the existing import duty on dry forms of natural rubber from the existing 20 per cent or Rs 30 per kg to bound-level duty of 25 per cent, has been forwarded with my recommendation to the Ministry of Finance and is under consideration," Sitharaman said.

These measures, she said, would regulate imports and "may have a salutary effect on domestic prices", as she promised enhanced subsidy of Rs 35,000 per hectare, up from existing Rs 25,000, to the growers by the Rubber Board.

"The concern among rubber growers caused by the downward movement in domestic prices of rubber has been noted. ... The government has reduced the period of utilisation under advanced licensing scheme for import of rubber from 18 months to six months," Sitharaman said.

While motivating the rubber consumers to exhaust stocks and push up demand, the government was also working to evolve methods to monitor usage of rubber imported under advance license to ensure that existing stocks are consumed, she said.

Sitharaman said the fall in rubber prices to Rs 118 in November last from Rs 176 in 2012-13 was due to "slump in international consumption" and the resultant decline in global prices. This was aggravated by a relatively low growth in domestic demand for specific forms of natural rubber.

To boost the segment, she said, the government intended to expand production as a long-term strategy and was promoting plantation development programmes in non-traditional regions like the North East.

"Currently, rubber is produced in 7.57 lakh hectares in the country", she said adding, "During the 12th Plan, an area of 36,300 hectares is proposed to be covered under fresh rubber plantation for which an outlay of Rs 726.99 crore has been provided."

Source:- economictimes.indiatimes.com

Indian Coal Imports To Touch 265 Million Tonnes In Fy'17

Mr Piyush Goyal, Coal Minister, said that a slew of steps like removal of regulatory hurdles are underway to enhance India's coal output in a bid to curb rising imports that may touch 265 million tonnes in 2016-17.

Mr Goyal said that "In the 12th Plan projections, the gap between demand and domestic supply in 2016-17 is estimated to be in the range of 185-265 million tonne."

He said that imports touched 168.4 million tonnes in 2013-14 from 28.9 million tonnes in 2005-06.He added that "In order to minimise import deficiency, the focus of the government is on facilitating environment and forest clearances expeditiously, pursuing with state government for assistance in land acquisition and coordinated efforts with railway for movement of coal."

Source;-steelguru.com

Compulsory Registration Rule Relaxed For Groundnut Exports

The Union Commerce ministry has abolished the compulsory registration rule for groundnut shelling units to export to countries outside the European Union (EU).The move, industry sources say, may increase groundnut shipments from India.

Till now, exporters had to buy groundnut from shelling units registered with the Agricultural and Processed Food Products Export Development Authority (APEDA) while shelling units had to get themselves registered through Indian Oilseed and Produce Export Promotion Council (IOPEPC). This rule was made applicable in 2013.

However, many shelling units from Gujarat and Andhra Pradesh had opposed this rule and were engaged in several discussions with Commerce ministry and APEDA pressing for its removal.

“We met Union Commerce minister, commerce secretary and APEDA chairman few times and informed them that compulsory registration is not necessary and export is going good without it. Thankfully, the officials agreed and removed the rule,” said Mukund Shah, president, Gujarat Oilseeds Processors Association (GOPA).

GOPA has been against compulsory registration since the beginning.Shah said, “Many shelling units are doing business seasonally and for them, registration process is costly. Moreover, because of this rule, many illegal transactions were being undertaken to match export requirements.”

As per the department of commerce letter to APEDA and IOPEPC, exporters would be allowed to purchase from unregistered shelling units or open market for exporting to countries outside the EU. Raw material, however, has to be mandatorily processed from APEDA grading, shelling-cum-grading and processing units.

According to the letter, if any unit wants to get registered, they need not go to IOPEPC and can get directly registered with APEDA.Kishore Tanna, chairman, IOPEPC said, "The rule was created to ensure quality but many players were not ready to register themselves. Number of registered shelling units is very low and looking at the demand of shelling units seeking removal of compulsory registration, IOPEPC held discussions with the concerned authority."

About 250 shelling units out of 4,000 are presently registered with IOPEPC.“Rise in export depends on production and demand but new rules will definitely benefit small shelling units in India,” said Vikram Duvani, managing director of Junagadh-based Rachana Seeds.India exported about 512,000 tonne of groundnut in 2013-14 and in the current financial year, shipments are estimated to touch 700,000 tonne.

Shah said, "Due to compulsory registration, exporters purchase only from registered units but now the market is open and this is expected to boost groundnut exports from India. But, it is too early to predict about rise in exports as it depends on the demand and supply scenario.”

Source:- business-standard.com

Weak Brazilian Real Thwarts India's Efforts To Boost Sugar Exports

A sharp drop in the Brazilian real has thwarted India's efforts to step up raw sugar exports despite New Delhi's decision to give an incentive to boost shipments, industry officials said.

Lower exports from India, the world's biggest sugar producer behind Brazil, could help to revive benchmark New York prices that touched a six-week low on Wednesday.

The Brazilian real has dragged down global sugar prices but the Indian rupee has not fallen by the same proportion to boost Indian exports, Yatin Wadhwana, managing director of Sucden India, told Reuters on the sidelines of the India Sugar Forum conference.

On Wednesday the Brazilian real fell to a 10-year low against the dollar.The lower real raises returns for Brazilian exporters because sugar is priced in dollars, but the currency's weakness and lower global sugar prices have dented Indian export plans.

"When subsidy was announced (by India) there was a lot of optimism, but the subsequent fall in the real has made exports difficult," said a Mumbai-based dealer with a global trading firm.

After months of wavering, India decided in February to give mills a subsidy of Rs 4,000 ($64) a tonne for exports of up to 1.4 million tonnes in an effort to reduce stockpiles after five years of surplus output.

Indian mills have been contracted to export an extra 20,000 tonnes of sugar, a number of dealers said.Though mills sealed deals to export 50,000 tonnes of sugar since the subsidy was agreed, dealers expect the annual figure to be less than 500,000 tonnes.

Indian raw sugar prices have fallen to $330-$340 a tonne from $465 a few weeks ago.As a result, very few mills are producing raw sugar, the Mumbai-based dealer said.

So far Iran, India's biggest buyer last year with purchases accounting for almost half of the country's total raw sugar exports of more than 1 million tonnes, has not placed an order.

Source:- economictimes.indiatimes.com

Bullion Giant Rsbl Files Rs 500 Cr Defamation Suit Against Dgft Officer

Two months after the Directorate General of Foreign Trade (DGFT) imposed a penalty on Riddhi Siddhi Bullion Limited (RSBL), the city-based bullion trader has filed a defamation suit against the agency’s officer and sought damages of Rs 500 crore.

Kavita Gupta, Additional Director General, Foreign Trade, Mumbai, had imposed a penalty of Rs 100 crore on RSBL and cancelled its nominated agency certificate (NAC), a document needed for direct imports of gold, for “violation” of RBI norms.

“RSBL has filed a defamation suit against Gupta in the Bombay High Court,” the trading firm’s spokesperson said.

According to DGFT, in FY14 RSBL imported 550 kg of gold and as per the RBI circular, this entire quantity should have been exported back. The norm had been introduced to curb the gold imports.

However, it shipped only 350 kg while remaining 200 kg were supplied to the domestic market, DGFT said.

The show-cause notice stated that RSBL’s request for renewal of NAC for FY15 could not be considered as it had not complied with the conditions.RSBL claimed that it had no prior information about the new norms of RBI.

Source:- freepressjournal.in

Pressure On Rupee Continues On Dollar Strength; Here's Why Rbi Will Not Let It Depreciate

The Indian currency continued to weaken against the US dollar for the third straight day in a row on Wednesday. Analysts see intense volatility in the currency markets in the near term, but assure investors that the Reserve Bank of India (RBI) will not let it depreciate beyond a point.

The rupee is likely to inch closer to 63 per dollar in the near term as the US Federal Reserve is expected to maintain its view on interest rates, but RBI may not let it weaken beyond 64/USD, say experts.

"In case the rupee falls sharply below 63, expect the Reserve Bank of India to intervene and curb volatility. The rupee looks unlikely to go below the 64 level," said Manisha Gupta, Commodities & Currency Editor, ET Now.

The rupee fell by six paise to a fresh two-month low of 62.82 in early trade. Forex dealers attributed the fall in the rupee to the dollar's strength against other global currencies, as well as sustained capital outflows, but a higher opening in the domestic stock market capped the rupee's fall, reports PTI.

But from a long-term perspective, analysts see the rupee appreciating against the US dollar and other currencies as economic fundamentals remain intact.

"The rupee at this point in time looks to be slightly getting weakened against the dollar, but if you compare the rupee vis-a-vis non-dollar currencies, it has appreciated a lot," says BP Singh, ED & CIO Equities, Pramerica MF.

"One data which came out on Tuesday was very interesting, which highlighted that in the month of January, the RBI ended up purchasing dollar to the extent which is equivalent to what it did last time in January 2008 - they purchased close to $12 billion plus of dollars," he adds.

A careful analysis indicates that the pressure on the rupee to appreciate is very high, though the central bank is keen to ensure that the rupee does not appreciate at this point in time.

Singh says if we take a medium to long-term view, the currency is likely to appreciate from here, and that obviously will have some amount of impact on the export oriented companies or those who are sensitive to the currency going forward.

The rupee was at 60.85 levels against the US dollar exactly a year ago. But against currencies like euro it has appreciated sharply to the current levels of 67.44/euro from 84.45 a year ago, said media reports.

"In the immediate run, I do not see it (rupee) going much lower. It can go much lower only if this turns into a major global trauma. Well, nobody knows that. So chances are, while the RBI on one hand did not want to get much stronger than let us say 61.50, clearly they do not want to get too volatile and go below 63.50 in my view," says Jamal Mecklai of Mecklai Financial Services.

"So, the RBI will be intervening right now. And I do not think that the rupee is going to collapse. We have to really wait and see what is happening," he adds.

Forex dealers are of the view that we do need a much more competitive exchange rate, because the growth and employment are to be optimised. We need a much more competitive economy that no other economy in the world has grown at 9%-10% per annum consistently without a globally competitive manufacturing sector and booming exports.

"The exchange rate would depends on the central bank and how seriously it takes the issue of the exchange rate in relation to growth and what the Prime Minister wants, Make in India and Finance Minister is saying we need 9-10% growth for an indefinite future and so on and so forth, so that is sort of one side of it," says AV Rajwade, Director, A.V. Rajwade and Co. Pvt. Ltd.

"I am bearish on rupee and in my view the fair value would be of the order of 70," he adds.

The dollar index is gaining strength against a basket of currencies, including the rupee. However, experts feel that the rupee is likely to appreciate against a basket of currencies rather than depreciate in the long run. Here's why:

Rashesh Shah, Chairman & CEO, Edelweiss Group.

It is actually very hard to say whether the rupee has actually weakened or not, because the rupee has appreciated significantly and we have seen the implications in a few of the IT results and of the cross currency as well.

The rupee is weakening vis-a-vis the dollar, but is strengthening vis-a-vis the euro, vis-a-vis the yen, and quite a few other major currencies. Compared to all other emerging markets, the rupee is still a lot stronger.

I do not think we should look at only the rupee-dollar as an indicator of the rupee strength. We should look at a composite basket, and on that count we think the rupee has actually strengthened a little bit in the last year.

And, as long as the US dollar keeps on strengthening, the headline rupee-dollar rate will keep on showing some weakness as you go forward.

Source:- economictimes.indiatimes.com

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