Us Needs To Keep Pushing India, China To Reduce Iranian Oil

04-Oct-2013

The US needs to keep pressing countries like India and China to reduce their dependence on Iranian oil, a top American diplomat has told lawmakers.

At the same time, the US official acknowledged the challenges being faced by these countries, which have galloping energy needs and so tough to reduce the imports from the oil-rich country.

“We agree that we need to keep pressing China, India, Turkey, South Korea, Japan, and there are small amounts of oil that still to go Taiwan that we need to keep pressing,” Under Secretary of State for Political Affairs Wendy Sherman, told lawmakers at a Congressional hearing on Iran held by the Senate Foreign Relations Committee, yesterday.

All 23 importers of Iranian oil have either eliminated or significantly reduced purchases from Iran and we are left with only five major customers of oil, she said.

The top five are China, India, Turkey, South Korea and Japan.

She said that countries like India and China are willing to further reduce their dependence on Iranian oil if the US exports natural gas to them.

“Without a doubt, though I would note, particularly probably for China and India, it becomes more and more difficult to do because their demands are growing exponentially even as they are reducing,” Sherman said.

“A given percentage reduction from China, which is currently the largest purchaser of oil from Iran, would be approximately equal to a volume reduction twice as large as the same percentage reduction from India, three times as large as the same percentage reduction from South Korea, and four times bigger than the same percentage reduction from Turkey.

So even a one per cent decline in Chinese purchases is double what anybody else’s reduction is because their volumes are so great,” she said.

Senator Ben Cardin said that China is still buying a significant amount of oil from Iran.

“Some of our closest allies in Asia are buying oil from Iran. We had our rebalance to Asia. It seems to me that we could be more effective in having greater help from those countries,” he said.

Source:- thehindubusinessline.com

India's Wheat-Export Proposal Sees Poor Response

05-Oct-2013

India's state trading companies received a poor response to their tenders to export wheat, raising doubts over the success of New Delhi's plan to ship out two million metric tons of wheat to help reduce the pressure on overflowing state granaries and raise $600 million for the government.

Three trading companies in mid-September floated tenders for the immediate shipment of 160,000 tons of wheat from the two million tons India's government wants to export.

They received nine bids. The highest bid at $267 a ton was way short of the government's minimum export target price of $300, according to company executives Friday.

The bids were on expected lines as prices have come down in the international market because of abundant supplies from major wheat-producing regions. Wheat comparable to the Indian variety, from Eastern Europe countries such as Russia and Ukraine, is available 20% cheaper than India's minimum export price, a New Delhi-based trader said.

"This kind of price bids were hardly a surprise. We expect this round to be canceled," said a Mumbai-based trader with an international commodity trading firm, which was among the bidders.

India had set the minimum export price a year-and-half ago.

It is likely to decide on future minimum price for exports based on the response to this tender offer, an official at state-run grain-procurement agency Food Corporation of India said.

India had emerged as one of the biggest wheat exporters over the past year-and-a-half following a global shortage. During this period, it sold 4.2 million tons of the grain at an average price of $311 a ton, about $10 above the cost it incurred for procuring it from farmers.

The strong run that India has enjoyed is beginning to wear thin. World wheat production in 2013-14 is projected at a record 708.9 million tons, according to a report from the U.S. Department of Agriculture.

Source:- online.wsj.com

Rupee Gains Against Dollar

While stock indices ended flat on bourses, the rupee gained against the dollar in anticipation that more inflow of foreign funds would come to the country over the next two months.



The rupee closed at 61.44 a dollar, up 29 paise compared to its previous close of 61.73. It touched a high of 61.25 intra-day.



The S&P BSE Sensex closed at 19915.95 with a marginal gain of 13.88 points.



Realty stocks gained the most, up by 1.65 per cent, followed by automobile at 0.94 per cent, metal by 0.63 per cent and oil & gas by 0.46 per cent.



While other sectoral indices gained marginally, power, capital goods, banks, information technology, technology and healthcare stocks ended in the red.



On the National Stock Exchange (NSE), the 50-share Nifty closed at 5907.30 with a marginal gain of 2.40 points.



“After two days of successive rise, Nifty was seen spending the entire session in a narrow range of 5890-5950 on Friday but remained quite volatile,” said Jayant Manglik, President-Retail Distribution, Religare Securities Limited.

Source:- thehindu.com

'Govt Restriction Fuelling Illegal Import Of Gold'

Oct 4, 2013

PUNE: Director (jewellery) of the World Gold Council Vipin Sharma has urged the Centre to take a long-term and holistic view to ensure gold does not lose its lustre in the Indian market.



Sharma, who was in the city to launch a new bridal collection, said that import restrictions are fuelling illegal entry of the yellow metal into the country where demand continues to remain robust despite steep hike in price of the precious metal in the domestic market.



Sharma also expressed the need to strike a balance between consumer demand and the country's economic reality. "Recent government schemes, like the option of monetizing personal gold reserves to help tackle the issue of the country's current account deficit are good, but considering that gold is still the preferred form of investment for a lot of Indian families, there is a need for relook at the policies, because the present scheme of things is naturally encouraging its entry into India via the unofficial channels," he said.



With more than 567 tonne gold already traded in the first two quarters of the current year, Sharma said he expects the demand to remain strong even in the last quarter. "Compared to the same period in 2012, there has been an increase in the demand this year, a trend which came in the wake of a price correction which was seen in the months of April and May this year. With the onset of the festive and wedding season, we expect the gold market to remain just as robust," he said, citing a recent study done by the WGC which found that among 13,000 people surveyed across the country, more than 50% bought gold during the wedding season.



Sharma also pointed at a shift in the buying trend. "While the demand for the traditional designs remains constant, we are now seeing more and more buyers going for easy-to-wear everyday jewellery in contemporary styles which need not remain confined to bank lockers. Newly-crafted styles - which offer the flexibility of breaking down a single big piece of jewellery into smaller ones for regular use, are also much in demand, as are those which use a combination of precious stones and pearls with gold, pendant sets, statement pieces etc," he said.



The increased prices of gold mean the metal has to work that much harder to continue to find favour among buyers, which has reflected in the changing styles that are being demanded, Sharma said.



According to Sharma, Maharashtra continues to remain a major market for gold. "Pune is a very interesting market, which has a couple of very strong regional chains. The demand in the smaller towns, and even the rural areas is increasing. While gold consumers in Pune remain rooted in traditional designs, there is an equally big market for modern styles which offer value for money," he said.



Gold facts



In 2013 (Jan-June), 567 tonne gold was purchased in India, up from 383 tonne in the same period in 2012



India and China together account for more than 55% of the global gold consumption, which totalled 864 tonne in 2012. The US too has registered an increase in demand in the last 2-3 years



In India, 50% of gold purchases happen during the wedding season



The annual gold market in India has been in the excess of 700 tonne over the last 7-8 years, despite gold price rising from an average of Rs 5,500 per 10g in 2004 to more than Rs 28,000 per 10g in 2013



Gold worth Rs 247 thousand crore was sold in the country in 2012, up 6% from 2011



Gold trends



Light-weight pieces in contemporary designs



Pendant sets



Statement pieces



Bead-based designs (e.g. gold shaped into ghunghroos)



Textured surfaces



Combination pieces using coloured and precious stones and pearls with gold



Enamelling techniques



Use of classic motifs like leaves, flower petals, peacock designs



Flexible and detachable styles that allow big pieces to be used as smaller separates.

Source:-timesofindia.indiatimes.com

Garment Exports To Get Boost From Slide, Bangladesh Concerns

COIMBATORE: After stagnating for three years, garment exports from Tirupur have started to grow at a fast clip. Garment exports, which have been Rs 12,500-13,000 crore a year for the last three years, are expected to grow by a robust 18% in the current financial year.



With the order book starting to improve since the beginning of 2013, exporters had said in April that shipments would increase by 10% for 2013-14. "The vibrancy is coming back. The rupee depreciation is helping us get more orders. So, we expect 18% growth in the current (financial) year," said A Sakthivel, president, Tirupur Exporters' Association ( TEA). "The response has been good both in traditional and non-traditional markets," he said.



Raja M Shanmugham, MD of Tirupur-based export house Warsaw International, said, "Buyers are giving preference to India while placing new orders." Premal Udani, MD of garment export house Kaytee Corporation, said, "The American market has revived."



Incidentally, readymade garment exports from the country have registered a 14% increase in dollar terms to $6 billion in April-August. The poor safety record of Bangladesh, a key competitor, is working to the advantage of garment exporters. "The (retail) chain stores in the European Union are also under pressure not to buy from countries where the compliance record is poor," senior industry officials said.



Sakthivel said, "Disney and Gap (leading retailers) have already given directions not to buy from Bangladesh."

Source:-timesofindia.indiatimes.com

Delay in furnishing of TP report condoned as assessee had belief that transaction was not covered un

IT/ILT: Where assessee gave a reasonable cause for his failure in furnishing report as required under section 92E, penalty imposed under section 271BA would be deleted

Nothing wrong if medical allowance is paid before incurrence of exp. and tax deducted on non-product

IT : Nothing wrong if medical allowance is paid before incurrence of expenditure and tax deducted on non-production of bills

Central Excise INSTRUCTION dated 01-10-2013

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

*******

New Delhi, the 1^st October,2013

To

(i) The Chief Commissioner of Central Excise (All),

(ii) The Chief Commissioner of Central Excise & Customs (All),

(iii) The Chief Commissioner of Customs (All),

(iv) Directors General (All)

Madam/ Sir,

Subject: Request of Federation of Indian Chambers of Commerce and Industry (FICCI) for reduction of time period from 90 days to 30 days for settlement of rebate claims on exports – reg.

Representations have been received from Trade bodies that field formations are not promptly sanctioning the rebate claims due to them. A suggestion has been made that the time limit prescribed in Section 11BB of the Central Excise Act, 1944 may be reduced from 3 months to 30 days.

2. The matter has been examined. It is seen that while the 90 days prescribed under Section 11BB of the Central Excise Act, 1944 is the outer limit after which interest becomes payable, there is nothing to prohibit processing & disposal of claims much earlier.


3. I am directed to inform that all efforts should be made to ensure that the claims of rebate are disposed of within 30 days from the date of receipt of the claim complete in all respect, except those requiring preaudit. Further, claims requiring preaudit may also be processed expeditiously.


4. Chief Commissioners are requested to put in place a monitoring mechanism to carry out these instructions.

Yours faithfully,

(Vikas Kumar)

Director (CX-8)

F. No. 267/39/13-CX.8

DGFT Public Notice No.29/(RE 2013)/2009-14 dated 01-10-2013

GOVERNMENT OF INDIA

MINISTRY OF COMMERCE & INDUSTRY

DEPARTMENT OF COMMERCE

DIRECTORATE GENERAL OF FOREIGN TRADE

PUBLIC NOTICE NO. 29 / (RE-2012)/2009-2014

NEW DELHI: DATED: 01/10/2013

Subject:- Amendment in the description of Import Item No. 2(b) of SION H – 427 of Plastic Product Group.

In exercise of the powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 2009-14, the following amendments are made in the Handbook of Procedure, Vol. II (as stated in paragraph 1.1 of Vol. I):

2. In SION No. H-427 of Plastic Product Group (Product Code H) relating to export product “PVDC coated PVC film (containing 0.900 kg PVC film and 0.100 kg PVDC coating)”, the description of Import Item No. 2(b) ‘Aqueous Dispersion of Vinylidene Chloride (Total solid content 60+/-1%)’ is amended to read as “Aqueous Dispersion of Polyvinylidene Chloride (Total solid content 60+/-1%)”.


3. The Item Vinylidene Chloride is the Monomer and Polyvinylidene Chloride is the Polymer of Vinylidene Chloride. The Polyvinylidene Chloride Polymer is to be used for the coating of PVC Film in the manufacturing process and is the correct nomenclature of the import item. That is why this amendment was necessitated.

Effect of Amendment:

The Import Item No. 2 (b) of SION H-427 has been amended by replacing ‘Aqueous Dispersion of Vinylidene Chloride (Total solid content 60+/-1%)’ by “Aqueous Dispersion of Polyvinylidene Chloride (Total solid content 60+/-1%)”. There is no change in description of the Export Product and rest of the Import Items. Further, there is no change in quantity allowed for any import item.

Sd/-

(Anup K. Pujari)

Director General of Foreign Trade

E-mail: dgft@nic.in

(Issued from F. No. 01/87/162/00015/AM14/DES-VII)

Order dated 30-09-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 30^th September, 2013.

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No. DRI/MZU/ E/13/2012/5518 to 5523 dated 23.07.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Mumbai. Zonal Unit, Mumbai in the case of M/s Sun TV Network Ltd., Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai-600028 to the Commissioner of Customs (Imports & General), IGI, Airport, New Delhi for the purpose of adjudication.

F.No.437/66/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Mumbai Zonal Unit, UTI Building, 13, Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020.


2. The Commissioner of Customs (Imports & General), IGI, Airport, New Delhi


3. The Commissioner of Customs (Import), Cargo Unit, AI Airport, Chennai.


4. The Commissioner of Customs (Import), Air Cargo Complex, Sahar, Andheri (E), Mumbai.


5. Webmaster.cbec@icegate.gov.in

Order dated 30-09-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 30^th September, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F. No. 50D/50/2012C.I dated 16.08.2013 issued by Additional Director General, Directorate of Revenue Intelligence, (Hqrs), New Delhi in the case of M/s Nikhaar Associates, 1484, Sector-16, Faridabad, Haryana and others to the Commissioner of Central Excise, (Adjudication), New Custom House, New Delhi for the purpose of adjudication.

F.No.437/75/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, 7th floor, I.P. Estate, New Delhi-110002.


2. The Commissioner of Custom, ICD, Tughlakabad, New Delhi


3. The Commissioner of Customs(Prev.) New Custom House, near IGI Airport, New Delhi4.


4. Webmaster.cbec@icegate.gov.in.
   

Order dated 30-09-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 30^th September, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.718(ii)20/Seiz/PRU/2013-14/444 dated 04.06.2013 issued by Assistant Director , Directorate of Revenue Intelligence, Regional Unit, Patna in the case of M/s Larsen & Toubro Limited, L&T House, N.M. Marg, Ballard Estate, Mumbai, Maharashtra to the Commissioner of Customs (Port-Import), Chennai at Custom House, 60 Rajaji Salai Chennai-600001 for the purpose of adjudication.

F.No.437/68/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Lucknow Zonal Unit, 2/31,Vishal Khand, Gomti Nagar, Lucknow-226010.


2. The Commissioner of Customs (Port-Import), Chennai at Custom House, 60 Rajaji Salai, Chennai-600001


3. The Additional /Joint Commissioner of Customs (Port), at Custom House, 15/1, Strand Road, Kolkata-700001


4. The Deputy/Assistant Commissioner of Customs (Import), Air Cargo Complex, Sahar, Andheri (East), Mumbai-400099


5. The Deputy/Assistant Commissioner of Customs (Port-Import), Mumbai Customs Zone-II, Jawaharlal Nehru Customs House, Nhava Sheva, Taluka-Uran, Dist-
   
   Raigad-400707.


6. The Deputy/Assistant Commissioner of Customs, Custom House, New Harbour Estate, Tuticorin-628004


7. The Deputy/Assistant Commissioner of Customs, (Airport & Air Cargo), Integrated Air Export Complex, Chennai-600027


8. The Deputy/Assistant Commissioner of Customs, ICD, Patparganj, New Delhi-110092


9. Webmaster.cbec@icegate.gov.in

Order dated 30-09-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 30^th September, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F. No. S/IV/03/2013 BZU dated 19.07.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Bangalore in the case of M/s Laxmi Fabrics, 11/2, Sanjeeva Naik Lane, Avenue Road Cross, Bangalore-560002 to the Commissioner of Customs, Seaport-Import, Chennai for the purpose of adjudication.

F.No.437/64/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Bangalore


2. The Commissioner of Customs, Sea Port-Import, Custom House, 60, Rajaji Salai Chennai-600001


3. The Commissioner of Customs, Central Revenue Building, Queen’s Road Bangalore 560001


4. Webmaster.cbec@icegate.gov.in

Order dated 30-09-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 30^th September, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No. DRI/AZU/INV-13/2011 dated 20.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Everflow Petrofils Limited, 11, Ovalwadi, Vithalwadi, 3rd Floor, Room No. 50, Kalbadevi Road, Mumbai Maharashtra-02 and others to the Commissioner of Customs (Imports), Jawaharlal Nehru Custom House, Nhava Sheva, Tal: Uran, Dist.- Raigad, Maharashtra-400707 for the purpose of adjudication.

F.No.437/55/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.


2. The Commissioner of Customs (Imports), Jawaharlal Nehru Custom House, Nhava Sheva, Tal: Uran, Dist.-Raigad, Maharashtra-400707


3. The Additional /Joint Commissioner of Customs(Imports), Custom House , 60 Rajaji Salai, Chennai-600001.


4. Webmaster.cbec@icegate.gov.in

No ST penalty if ST was not paid due to reasonable belief

ST : Where assessee did not pay service tax on storage/handling of empty containers on reasonable belief that it was not liable to service tax i.e., assessee did not have any mala fide intention to avoid/evade Service Tax, penalties levied under section 76 were to be waived by virtue of section 80.

Exp. incurred on issue of secured, redeemable non-convertible bond is an allowable deduction

IT: Expenditure for issue of bond is allowable as revenue expenditure

Deposits in bank held as unexplained as assessee couldn't prove sale of ancestral gold as source of

IT : Where assessee failed to prove that cash deposits in his bank was out of sale proceeds of alleged gold gifted to him by his parents, such deposits were rightly treated as unexplained cash credits

Abatement of proceedings before BIFR if joint action is initiated by three-fourth't of secured credi

CL: Action initiated by secured creditors representing three-fourths in value of total amount outstanding, in terms of section 13(4) of Securitization Act, would result in automatic abatement of proceedings before BIFR

When reassessment proceedings held invalid, the consequential assessment order would also be invalid

IT : Where reassessment proceedings initiated against assessee had been held to be invalid, consequential assessment order passed by Assessing Officer in remand proceedings was of no consequence and, thus, same also deserved to be set aside

Research projects undertaken by universities for consideration can't be deemed as education services

ST/ECJ: Undertaking of research projects for consideration by State universities cannot be regarded an educational service under section 66D(1)(ii) and is, accordingly, liable to service tax