Casual vacancy in appellate committees can be filled up by assigning review powers to other Commissi

EXCISE & CUSTOMS LAWS : Section 35B of the Central Excise Act, 1944 – Appeals to the Appellate Tribunal – Constitution of Review Committee of Commissioners of Central Excise – Assignment Of Charge of a Commissionerate where Committee is left with only one member

Uranium May Head To India In 2015

The uranium industry is hoping to make trial shipments to India next year.Prime Minister Tony Abbott and Indian leader Narendra Modi have discussed the supply of Australian uranium for India's nuclear power plants.It follows their signing of a safeguards agreement in New Delhi in September, overturning a long-standing ban on uranium exports to the subcontinent.

In his address to federal parliament on Tuesday, Prime Minister Modi said he saw Australia as a major partner in his country's quest to boost electricity production and address climate change.Advertisement "(We seek) energy that does not cause our glaciers to melt," he said. "Clean coal and gas, renewable energy and fuel for nuclear power."

The pair discussed energy security and what Mr Abbott called Australia's "readiness and willingness" to supply uranium to India for peaceful purposes.

"If all goes to plan, Australia will export uranium to India - under suitable safeguards of course - because cleaner energy is one of the most important contributions that Australia can make to the wider world," Mr Abbott said.

The agreement is now being examined by the parliamentary treaties committee, which will close submissions on November 28. There are also talks between officials on administrative arrangements. Both the treaties process and the administrative arrangements must be finalised before Australian uranium producers can start exports to India.

Minerals Council uranium spokesman Daniel Zavattiero told AAP the industry expected to start shipments next year. "The industry position is things are moving okay," he said. "We expect some point next year it will come into force and become operational, then we can start on shipments and sales."

Initial sales are expected to start on a small scale, but the outlook is strong. The International Energy Agency estimates that while nuclear provides three per cent of India's power today, it will grow to 12 per cent by 2030 and 25 per cent in 2050.

India plans to invest $96 billion in nuclear plants to 2040, with 21 operating now, six under construction and 57 planned or proposed. "It's very positive for us," Mr Zavattiero said.

The agreement stipulates India must only use the uranium for peaceful purposes that adhere to recognised international safety standards. It is controversial because India has refused to sign the Nuclear Non-Proliferation Treaty despite possessing an arsenal of atomic weapons.

Australia has the largest share of uranium resources in the world but currently exports only 8400 tonnes a year, valued at over $820 million. Sydney will host a meeting on Wednesday involving ministers from 12 countries to discuss nuclear non-proliferation.

The Forum for Nuclear Cooperation in Asia is a regional network to promote the peaceful uses of nuclear technology in the Asia-Pacific. Industry Minister Ian Macfarlane, who will host the event, said Australia was committed to the safe and efficient application of nuclear science and technology.

Source: news.theage.com.au

[Indian Customs Circular] : Regarding All Industry Rates (AIR) of Duty Drawback w.e.f. 22.11.2014

Circular No. 13/ 2014-Customs

F. No. 609/118/2014-DBK

Government of India

Ministry of Finance, Department of Revenue

Central Board of Excise & Customs

New Delhi, dated 18 th November, 2014

To

All Chief Commissioners of Customs / Customs (Prev.)

All Chief Commissioners of Central Excise/Customs & Central Excise

All Director Generals under CBEC

All Commissioners of Customs / Customs (Prev.)

All Commissioners of Central Excise/Customs & Central Excise/Service Tax

Subject: All Industry Rates of Duty Drawback effective 22.11.2014 - Reg.

Ma’am/Sir,

The Ministry has notified revised All Industry Rates (AIR) of Duty Drawback vide Notification No. 110/2014- Customs (N.T.), dated 17.11.2014. This notification comes into force on 22.11.2014.

2. Some of the broad aspects, from amongst the changes notified with respect to AIR of duty drawback and entries in the Schedule, are the following –

(a) As before, the drawback rates have been determined on the basis of certain broad average parameters including, inter alia, prevailing prices of inputs, input output norms, share of imports in input consumption, the applied rates of central excise and customs duties, the factoring of incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods, factoring incidence of duty on HSD/furnace oil, value of export goods, etc.

(b) Many items already covered under the Drawback Schedule prior to incorporation of erstwhile DEPB items, shall see a change in the AIR. In continuation of a transitory arrangement, for the items incorporated in the drawback schedule from the erstwhile DEPB Scheme there is a reduction in the AIR.

(c) Drawback caps continue on most tariff items with AIRs above 2%. The caps have been revised. At rates below 2% there is cap with respect to guar gum and frozen marine products.

(d) Further, in the case of project exports, where export product is accompanied with ARE-1 and for which no drawback cap has been prescribed in the Schedule, the Note/Condition (6) in the AIR notification now specifies a cap. It has been provided that such cases shall be declared by the exporter and the maximum amount of drawback that can be availed under the Schedule shall not exceed the amount calculated by applying the ad valorem rate of drawback to one and half times the ARE-1 value. In such cases, before Let Export Order is made, the relevant ARE-1 value (s) are to be recorded in the "Departmental Comments" field which is to be also taken into account at the subsequent stage of drawback processing.

2

(e) Several entries have been rationalized by merging them at respective four digit level or under the respective residuary sub-heading ‘others’. Tariff item numbers have seen a change in many cases.

(f) The hitherto residuary rate of 1% (composite) and 0.3% (Customs) is changed to 1% (composite) and 0.15% (Customs). Further existing residuary rates of 1.3% and 1.7%, have been increased to 1.4% and 1.9%, respectively, with some exceptions.

(g) In chapter 57, the six digit tariff item (TI) under 5705 have been changed to refer to the composition of fibre as is under other four digit tariff items. Further, all caps have been made on the basis of per sq.mtr instead of earlier per kg (for some items) in the chapter.

(h) Several entries have been modified /amended to address issues brought to Ministry’s notice. Laptop bags and shopping bags have been specifically mentioned at six digit level below TI 4202. ‘Cami’ has been included with women’s/girl’s tops in TI 611402 and 621102; ‘three fourth pants’ along with ‘capris’ included in TI 610302, 610402, 620302, and 620402; and ‘leggings" included in TI 610402. An entry for ‘other jackets’ below TI 6114 and 6211 has been made. Mountain terrain bicycles have been specified against TI 871203. Cricket bats made from English willow (TI 9506) have been distinguished from other cricket bats.

(i) Separate entries have been created distinguishing certain export products such as cotton yarn of less than 50 counts or 50 or more counts (Chapter 52); core spun cotton yarn containing 3% or more of lycra /spandex/ elastane (TI 5205); flame retardant fabric treated with organic phosphorous compound (TI 5209); knotted/tufted woolen /fine animal hair carpets containing 15% or more by weight of silk (TI 5701, 5703); embroidery in the piece, in strips or in motifs, of flax/linen (TI 5810); cotton blankets (TI 6301); leather safety footwear with protective toe caps of composite/synthetic material (TI 6403); glass artware/handicraft made out of two or more ply glass with or without metallic fusion (TI 7020); delivery tricycles/cycle rickshaws (TI 8712); specified electrical apparatus, of aluminium (TI 8536) and parts of aluminium for specified electrical apparatus (TI 8538).

(j) AIR has been provided to calcined kaolin packed in HDPE/ LDPE/ PP bags (TI 2507), umbrellas, etc. of Chapter 66 and artificial flowers, etc. (TI 6702). Composite rate of 7% has been provided for all agricultural machinery etc. of TI 8432.

(k) AIR has been fixed as Rs. 219.9/gm for gold jewellery /parts and Rs. 3112.5/kg for silver jewellery /articles. Guar Gum has been provided ad valorem rate (composite) of 0.75% with a cap of Rs. 1270 per MT.

(l) Note/Condition (20) in the AIR Notification specifies that "shirts" shall include "shirts with hoods". Similarly, Note (25) specifies that "vehicles" of Chapter 87 shall comprise completely built unit or completely knocked down (CKD) unit or semi knocked down (SKD) unit.

3. It has been made explicit that where the claim for duty drawback is filed with reference to the rate in the AIR Schedule, an application for fixation of Brand Rate under Rule 7 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 shall not be admissible. For this, para 2 of the Notification and amendment to the said Rule vide Notification No.109/2014-Customs (N.T.) dated 17.11.2014 may be referred. 3

4. In this context, it is also clarified that the exporters opting for claim of brand rate shall declare the figure "9801" as an identifier in the shipping bill under the Drawback Details on basis of which they may subsequently apply to Central Excise for determination of brand rate. The Commissioners of Central Excise shall facilitate such exporters in terms of paras 5A-5C of Instruction No. 603/01/2011-DBK dated 11.10.2013 with, interalia, the grant of provisional brand letters.

5. The Commissioners are expected to ensure that the due diligence is exercised to prevent any misuse. As before, it may be ensured that exporters do not avail of the refund of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods through any other mechanism while claiming AIR. Moreover, there is need for continued scrutiny for preventing any excess drawback arising from mismatch of declarations made in the Item Details and the Drawback Details in a shipping bill. Also, in case of claim of the composite (higher) rate of AIR, the processing at the time of export should specifically ensure availability of ‘ Non-availment of Cenvat certificate ’ etc at that stage itself.

6. It is requested to download the notifications from the Board’s website (www.cbec.gov.in) and carefully peruse them and thereby take note of all the specific changes notified.

7. With trade facilitation in view, tenure of the Drawback Committee constituted by Central Government has been temporarily extended. Therefore, if any inconsistency or error is noticed or difficulty faced, the Board may be apprised so that the appropriate action can be initiated.

8. Suitable public notice and standing order may also be issued for guidance of the trade and officers.

(Rajiv Talwar)

Joint Secretary to the Government of India

CBEC nominates link officers to grant leave to officers in various zones of services tax

EXCISE & CUSTOMS LAWS : Approval of Chain of Nomination (Link Officer) – Partial Modification of Order No. 220/2012, Dated 23-11-2012

Mrls Have Larger Impact On Tea Trade, Feels Fao

At a time when the residue level in Indian teas is being debated, the FAO (Food and Agriculture Organization of the United Nations) Inter-governmental Group on tea has found that, in general, food safety standards might have a deterring effect on trade if exporters fail to comply with regulations.

The implications of MRLs (maximum residue levels) on tea trade were discussed by the Inter-governmental Group at its recent meeting in Indonesia. It is a forum for inter-governmental consultation and exchange on trends in production, consumption, trade and price of tea.

The FAO felt that the MRL standards had a much larger effect on trade than import tariffs, and any cost-related disruption in supply could increase prices, leading to price volatility.

As one of the food safety standards, MRLs set the maximum level of pesticide residue that can be traced in food and food products to ensure food safety.

MRL regulations vary across countries, and there is no international agreement on harmonisation of regulations. The European Union has increased the number of pesticides regulated for tea. The number is now 45.

The FAO study found that China’s export to major European partners decreased significantly after 2000, most likely due to the regulations. The FAO also noted that if the importing country was large enough, prices would rise in that particular import market following the supply-disruption It might also have a negative impact for employment and gender, especially in developing countries.

India recently came under attack from Greenpeace which alleged that Indian teas were laced with banned pesticides.

The Tea Board of India maintains that Indian tea is subject to some of the most stringent standards globally, and 37 Plant Protection Codes (PCC) (chemicals) have been identified as permissible for use in Indian tea growth. MRLs are also in place.

The PPC is a comprehensive document, which lays down the manner in which chemicals are going to be used safely in tea cultivation.

Source: thehindu.com

Mere grant of sec. 12A registration won’t be sufficient to allow registration under sec. 80G as well

IT : Section 80G and section 12A are exclusive and, therefore, in order to get recognition under section 80G, mere registration under section 12A is not sufficient

PVC and HDPE tubes or pipes used in effluent treatment plant are eligible for capital goods Cenvat C

Cenvat Credit : Expression "tubes and pipes" in rule 2(a)(A)(vi) of CENVAT Credit Rules, 2004 covers all pipes and tubes whether of iron and steel or of PVC or HDPE; hence, PVC/HDPE/MS pipes or tubes used in effluent treatment plant are eligible for capital goods credit

Trust promoting India-Japan relationship and not extending its benefits to Japan, eligible for regis

IT: Where assessee-society had been formed to promote relationship between India and Japan without any element of profit and fees collected was utilized only for promotion of its aims and objects, it was entitled to registration under section 12AA

Merchandise Exports Fall As Trade Deficit Widens To $13.3 Bn In October

India’s merchandise exports contracted in October—the first time this fiscal year—exerting pressure on the country’s trade deficit even as gold imports surged, forcing the government and the Reserve Bank of India (RBI) to consider further curbs on imports of the precious metal.

The government and the central bank are in talks to increase curbs on gold imports that almost quadrupled in October, Reuters reported on Monday, quoting RBI deputy governor S.S. Mundra.

“With the surge in gold imports which has been witnessed, it warranted a relook,” Mundra said. Last year, the government increased import duty on gold to 10% and made it mandatory for 20% of all gold imports to be held for exports of jewellery as part of its efforts to reduce the import of the yellow metal and consequently narrow the current account deficit that was spiralling. Some of these curbs were relaxed in May.

Although import growth was subdued, trade deficit widened to $13.3 billion in October from $10.6 billion a year ago, according to data released by the commerce ministry on Monday.

During the month, merchandise exports contracted 5% to $26 billion, mainly on account of sectors such as engineering goods, pharmaceuticals and cotton yarn exports. Imports grew 3.6% to $39 billion, with the growth moderation mainly on account of lower oil imports even as gold imports surged.

Gold imports rose 280% to $4.17 billion from $1.09 billion in the year-ago period. Gold imports have surged in the last two months, mainly on account of the festive season as well as the low prices globally.

Oil imports, however, came in 19% lower at $12 billion, compared with $15.2 billion a year ago as international oil prices fell.

The international crude oil price of the Indian basket has fallen to less than $80 per barrel, giving the government some respite in containing the trade deficit.

Non-oil, non-gold imports were up by 6% to $22.9 billion, mainly on account of iron and steel, electronic goods and vegetable oils.

In the April-October period, trade deficit was at $83.7 billion, as against $87.3 billion in the year-earlier period. A slowing global economy could remain a key risk factor for export growth, analysts say.

“Exports growth in the remainder of 2014-15 is likely to be muted, given sluggish growth in key export markets such as Europe and Japan as well as lower prices of commodity intensive exports,” said Aditi Nayar, senior economist at rating agency ICRA.

“As gold imports normalize post the festive season, we expect the trade deficit to ease materially from the levels seen in September-October 2014, benefiting from lower commodity prices,” Nayar said. “However, low growth of exports remains a key risk.”

Source: livemint.com

India Iron Ore Imports Surge To Record Levels In April-October

India iron ore imports have witnessed a record surge during April-October touching 5 million tonnes as steel makers bought raw material from overseas markets due to domestic supply crunch.

According to industry consultancy SteelMint, India imported 5.06 million tonnes of iron ore in the first seven months of the fiscal year ending in October.

Mining restrictions due to court action against illegal mining have reduced iron ore supply in India. That, along with falling global prices, has prompted rising imports, which topped 2 million tonnes in October alone, said SteelMint, predicting the total for the full year to March could reach up to 11 million tonnes.

India holds vast reserves of iron ore and was once the world’s no. 3 supplier. Global iron ore prices have fallen below $76 a tonne, losing 44 percent of their value this year amid a deep supply glut.

Meanwhile, India’s steel consumption growth during April – October 2014. As per the latest data from the Joint Plant Committee under the Ministry of Steel, the consumption stood at 43.112 million tonnes signalling a slump of 0.5 per cent.

The usage of steel during the corresponding period last year stood at 42.9 million tonnes. In October India consumed 6.53 million tonnes of steel, a drop of 1.3 per cent over the same month last year.

Source: hellenicshippingnews.com

India Said To Take Imminent Steps To Curb Surging Gold Imports

India is likely to announce measures to curb gold imports as early as Tuesday, a senior finance ministry source said, as a surge in inbound shipments threatens to worsen the country’s trade deficit.

“We are working on it. The measures to slow gold imports are almost ready and may be announced today (Tuesday) or tomorrow (Wednesday),” said the source, who declined to be named because of the sensitivity of the matter.

Gold imports into India, the world’s second largest gold consumer behind China, surged nearly fourfold in October to $4.18 billion from a year ago, data showed on Monday.

Although India’s trade deficit has so far been kept in check by lower oil imports, analysts warn that is unlikely to last if inbound gold shipments continue to surge.

Struggling with high current account and trade deficits, India last year raised the import duty on gold to a record 10% and imposed other import restrictions, some of which it relaxed in May.

Imports of the precious metal have risen steadily since August, boosted by jewellery demand for the wedding season, raising concerns among policymakers.

Last Thursday, officials from the Reserve Bank of India (RBI) and the finance ministry met to review the country’s gold import policy, but no decision was taken. Reuters.

Source: livemint.com

Rupee Ends Marginally Lower Against Dollar

The local unit opened at 61.63 per dollar and touched a high and a low of 61.63 and 61.79, respectively. The currency ended at 61.74, down 0.03% from previous close of 61.72, while India’s equity benchmark Sensex closed at 28,177.88 points on BSE, up 0.17%.

“With the local markets performing well, all the cues for therupee were positive. But through the day we saw consistent dollar demand from importers. There might be slight import cover happening and even some commodity hedging,” said Harihar Krishnamoorthy, treasurer, FirstRand Bank.

India’s trade deficit in October narrowed to $13.4 billion as compared to $14.25 billion in September, government data showed on Monday. Merchandise imports up nearly 3.62% year-on-year to $39.50 billion mainly on account of lower oil imports even as gold imports surged. Exports, meanwhile, fell 5.04% on year to $26.1 billion.

Most of the Asian currencies ended higher. South Korean won was up 0.63%, Philippines peso 0.1%, Japanese yen rose 0.08%, Indonesian rupiah up 0.07%, China offshore 0.06%, Singapore dollar 0.05%.

Bond yields fell after both the CPI and WPI inflation fell which boosted the speculations that the Reserve Bank of India may cut the rates in its 2 December policy.

The yield on India’s 10-year benchmark bond ended at 8.183%, compared with its Friday’s close of 8.217%. Bond yields and prices move in opposite directions.

Data released on Friday showed the wholesale price index (WPI)-based inflation for the month of October was at 1.77%, the slowest pace since September 2009. A Bloomberg poll of 37 analysts had estimated that WPI inflation at 2.1% for October.

Data on Wednesday showed India’s index of industrial production (IIP) expanded by 2.5% in September after anaemic growth in the preceding two months and retail inflation moderated to 5.52% in October, compared with 6.46% in September, mainly on account of easing vegetable and fuel prices. A Bloomberg poll estimated consumer price index (CPI) at 5.67%.

Since the beginning of this year, the rupee has gained 0.12%, while foreign institutional investors have bought $15.20 billion during the period from local equity markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 87.647, up 0.14% from the previous close of 87.525.

Source: livemint.com

Loss on assignment of debt wasn’t deductible as assessee was giving loan to affiliate when it was in

IT: Where assessee having assigned amount recoverable from sister concern to another company, claimed deduction of loss incurred on assignment of debt, in view of fact that assessee kept giving loan to sister concern even when it was continuously making loss, Tribunal rightly concluded that transaction of assignment of debt was not entered into normal course of business and, thus, assessee's claim was to be rejected

No ST refund on services used for export unless assessee correlates services with export/import code

Service Tax : In order to claim refund of service tax paid on services used for export goods, it is incumbent upon assessee to produce necessary documents before adjudicating authority alongwith invoices indicating IEC number so that activities of export could be correlated with documents and notifications

'CII' had to be taken of the year in which capital asset was converted into stock-in-trade to comput

IT : To determine capital gains cost inflation index as stood in year of conversion of asset into stock-in-trade has to be applied and not cost inflation index as stood in year of sale taxation

Sales incentives to employees establish LO promotional activities in India; treated as PE of foreign

IT/ILT: Foreign Company established a LO in India - Performance of employees of LO was determined by number of direct orders received by them - Employees were also entitled to sales incentives for these orders - Such incentive plans established that LO was not engaged merely in preparatory or auxiliary activities - Its activities extended to marketing activities as well - Therefore, it would be treated as PE of foreign company and the income attributable to LO activities would be taxable in Indi

AO couldn’t adopt DVO’s report making valuation at CPWD if it exceeds market rate

IT: Where DVO valued construction at CPWD rates which were 30 per cent higher than market rate, no addition could be made over valuation of approved valuer as adopted by assessee

Tribunal can't extend stay beyond 365 days yet HC can extend stay beyond that period by exercising w

Excise & Customs : After insertion of third proviso to section 35C(2A) by Finance Act, 2013, Tribunal may extend stay for period upto 365 days and not thereafter; however, High Court may, in exercise of its writ jurisdiction, pass a protective order provided delay in disposal of appeal is not attributable to conduct of assessee

Profits from sale of shares were business receipts as holding period of half of transactions were of

IT: Where there was huge frequency of share transactions and in most of cases holding period was only upto 7 days and assessee carried out repetitive transactions, income therefrom was business income

No addition due to non-inclusion of excise duty in closing stock as duty was payable on removal of g

IT : Excise duty being payable at time of removal of goods and not at time of manufacture, an addition to income of assessee-company on account of non-inclusion of excise duty in closing stock of finished products was not justified

Credit available on input tax even on generation of exempted by-product during manufacture of produc

CST & VAT : Where assessee was engaged in manufacture of refined sunflower oil from sunflower oil cake by employing solvent extraction process and in extraction process it also obtained de-oiled cake, which was exempted from tax, assessee was entitled to full deduction of input tax paid on purchases of sunflower oil cake

Chief Judicial Magistrate has no role to play in securing assets of secured creditors under SARFAESI

SARFAESI ACT: Secured creditors can approach Chief Metropolitan Magistrate in Metropolitan areas and District Magistrate in Non-Metropolitan areas for seeking assistance to secure their assets; Chief Judicial Magistrate has no jurisdiction in such cases

Remuneration payments to consultant-doctors would attract TDS under sec. 194J and not TDS under sec.

IT: Where appointment of doctors was contract for service classifiable as professional service, assessee had correctly deducted tax at source from payment to doctors under section 194J

Income from share transactions couldn’t be held as business profits due to few instances of sale in

IT : Where assessee was not engaged in business of purchase and sale of shares, merely because in certain instances shares were sold before completion of a year was no reason to treat said income as business income when assessee had duly shown it as short-term capital gain

No reassessment on member on basis of purchase agreement which AO had used against AOP to reassess i

IT : Where Assessing Officer himself had treated agreement relating to purchase of land to belong to AOP of which assessee was member, reassessment made in assessee's individual case on basis of same agreement was not justified

Exp. deductible in ordinary assessment was deductible even when income was determined by AO on estim

IT : If assessee is entitled to deduction of interest and depreciation in ordinary course of assessment, same cannot be denied merely because profit is determined on basis of estimation

If sale is on FOR basis, credit of freight upto customer's premises is available if it form part of

Cenvat Credit : In case of sale at the place of destination (FOR basis), an assessee is only entitled to claim cenvat credit on service tax paid for the Goods Transportation Agency service provided amount paid was integral part of the price of the goods

Resignation of petitioner-director's wasn't oppressive as they remained quiet and non-participative

CL : Where petitioners were not participating in affairs of company, resigned from directorship, and kept quiet for four years, resignation of petitioners was valid and was not oppressive

ITAT orders fresh adjudication as DRP had made TP addition on AMP exp. without considering contenti

IT/ILT: Where DRP had made adjustments on account of advertising, marketing and promotional expenses, without considering contentions raised by assessee-company, matter was to be readjudicated

Indian Cotton Textile Exhibition Opens In Dubai

A two-day exhibition showcasing India's finest cotton products was inaugurated in Dubai, aimed at providing a platform for buyers and sellers, and creating a market base in the UAE and Gulf regions.

Consul General of India in Dubai, Anurag Bhushan, and Joint Director Textile Export Promotion Council (TEXPROCIL), A Ravi Kumar, launched 'The Indian Cotton Textile Show' yesterday.

Some of the leading exhibitors at the show include Birla century, Adnani exports ltd and Aditya exports.

"Such industry specific, stand-alone events foster trade beyond traditional and customary goods between India and the UAE," Bhushan said, adding that the Indian Consulate will support India Trade and Exhibition in conducting many such Industry specific events in future.

Director General of India Trade and Exhibition Centre (ITEC) Sripriyaa Kumaria said the show is a unique platform for buyers and sellers to build up linkages and network with the best of the Indian textile industry.

"The event focuses on one to one prefixed meetings and showcases India's finest cotton products. There is huge interest in the UAE market for Indian textiles and, in particular cotton textiles, cotton yarn, cotton fabrics and cotton madeups," she said.

She said that out of the total textile global exports of over USD 20,939.8 million, the UAE exported over USD 1,623 billion worth of textiles representing a 7.75 per cent share of the global export market. UAE is also the world's third largest exporter of textiles after the US and UK.

The event is organised by TEXPROCIL in association with Indian Embassy and Consulate General in UAE, and is also supported by TEXMAS - Textile Merchants Group in UAE.

Cotton Textile Export Promotion Council - TEXPROCIL, who is the organiser of the event, has been the international face of cotton textiles from India facilitating exports worldwide.

Its membership base of about 3,500 companies spread across major textile clusters in India are well established manufacturers and exporters of cotton textile products like cotton yarn, fabrics and home textiles.

India's textile exports were estimated at USD 40 million in 2013.

UAE is an upcoming market for India in terms of textile and textile products and with a view to further enhance the share of India's export to UAE markets TEXPROCIL is organising the first standalone buyer seller meet in Dubai.

Source: business-standard.com

Us Trade Body Wants India To Drop Plan To Impose 10 Per Cent Customs Duty On Telecom Gear

A powerful US trade body has lobbied the top trade negotiator in the Obama administration to dissuade India from imposing a 10 per cent customs duty on specified telecoms gear. This would flout the South Asian nation's World Trade Organisation (WTO) treaty commitments and possibly weaken the country's ability to implement the Digital India project, it said.

The US-India Business Council (USIBC), in a confidential letter to US Trade Representative Michael Froman seen by ET, said India must "rescind its recent notification that levies a 10 per cent tariff on a broad range of telecom equipment" since the products fall under the "purview of the WTO Information Technology Agreement (ITA), and should therefore, continue to receive duty-free treatment as per India's ITA obligations". The USIBC couldn't be immediately reached for comment. The 10 per cent customs duty was among finance minister Arun Jaitley's 2014 budget proposals. It will primarily apply to 3G and 4G systems, including switches and broadband equipment.

If implemented, it is slated to raise the debt-laden telecom industry's annual capex outflows by at least an additional Rs 1,000 crore, the industry has warned. In its letter to Froman, USIBC warned that the notification harms India's vibrant telecom industry by "debilitating foreign direct investment ( FDI) in the sector" and prevents the most updated telecom products from entering the country. Some of USIBC's leading technology member companies include Cisco Systems, Google, Intel, IBM, AT&T, Qualcomm, Apple, Verizon, Nokia, Juniper Networks, Dell, Microsoft and Texas Instruments.

A top DoT official, however, said much thought had gone into the 10 per cent duty proposal, and the government took care to exclude from its purview all "electronics/telecom items" where India has a zero import duty commitment under WTO's ITA pact. In fact, "the duty will apply to telecom products which were not even invented at the time India inked the ITA back in 1997," he added. The USIBC's letter to US President Barack Obama's top trade negotiator comes at a time when American tech giants, including Google, Facebook, Microsoft and Hewlett-Packard have been swiftly queuing up to get a piece of Prime Minister Narendra Modi's Digital India project that aims to deliver high-speed internet access across the country including remote areas.

Earlier this month, the Department of Electronics & IT (DeiTY) included 'mobile phones' in its expanded Compulsory Registration Order (CRO), which empowers the government to conduct spot checks on imported cellphones to establish validity

of registration.

Source: economictimes.indiatimes.com

No penalty if value of excess stock found during survey had been surrendered by assessee and accepte

IT : No penalty could be levied under section 271(1)(c) with respect to old stock accumulated over years, value of which was surrendered by assessee during current year and accepted by Assessing Officer; no penalty on account of valuation difference when quantity of stock remained same

Sec. 68 addition upheld on huge deposits found in bank account of assessee on his failure to explain

IT : Where assessee received huge amount through banking channels as cash credits in its bank account but failed to render an explanation for same, said amount was to be treated as income in hands of assessee

India's October Iran Oil Imports Rise 60% Y-O-Y

India bought 60 percent more Iranian oil in October than a year ago as refiners held to higher volumes despite signs that world powers and Iran might not reach a final agreement on Tehran's disputed nuclear programme before a Nov. 24 deadline

Six world powers - Britain, China, France, Germany, Russia and the United States - are negotiating with Iran to

clinch a deal that, in exchange for lifting economic sanctions, would ensure Tehran's nuclear activity is not aimed at making bombs. Iran says its nuclear work is for civil power needs only.

A year of negotiations has not resolved deep disagreements between Iran and the major powers, and a final deal is unlikely by the November date, sources told Reuters. Any agreement would likely be followed by a rapid increase in Iran's oil exports at a time when global markets are already under pressure from a supply glut.

India, Iran's top oil client after China, imported about 309,900 barrels per day (bpd) of crude in October from Tehran, tanker arrival data obtained from trade sources shows, the highest since March and up 28 per cent from September.

India's oil imports from Iran rose about 40 per cent over January-October, partly due to a surge in the first quarter as an interim agreement easing Western sanctions went into effect

Growth in Iranian oil imports this year was also due to a bounce off the low base of last year, when shipments were hit hard due to insurance problems triggered by the sanctions, particularly over the April-August period. Private refiner Essar Oil was the biggest buyer of Iranian oil in October followed by state-run Mangalore Refinery and Petrochemical Ltd. The two are India's only regular monthly importers of Iranian crude.

India's overall imports for the month totalled 3.63 million bpd, a decline of about 3.4 per cent from a year ago, the data also showed. India's total crude imports for the January-October period fell 3.1 per cent.

Iran's share of Indian oil imports was about 7.2 per cent in the first ten months of this year compared with 4.9 per cent last year, the data showed.

Purchases from the Middle East overall declined by 8.9 per cent over January-October, while oil imports from Africa and Latin America rose, the data also showed.

Source:economictimes.indiatimes.com

Rpt-India Cbank Deputy Says Talking To Govt On Increasing Gold Import Curbs

The Reserve Bank of India is in talks with the government for a decision on increasing curbs on gold imports, RBI Deputy Governor S.S. Mundra said on Monday.The RBI deputy also said attention needed to be paid to the surge in gold imports at a briefing with reporters in the capital.

October shipments to India, the world's No.2 gold consumer behind China, jumped to about 150 tonnes from less than 25 tonnes a year earlier and 143 tonnes in September, a finance ministry official said last week.

Source:in.reuters.com

Rupee Gains 5 Paise Against Dollar In Early Trade

The rupee strengthened by five paise to 61.67 against the US dollar in early

trade today at the Interbank Foreign Exchange on selling of the US currency by

exporters and banks amid sustained capital inflows.

The rupee

depreciated by 17 paise to end at nearly one-month low of 61.72 against the

greenback on Friday on sustained dollar demand even as domestic equities surged

to new highs.

Traders said besides selling of the American currency by

exporters and banks, continued foreign fund inflows helped the local currency to strengthen, but the

dollar's gains against rivals overseas and a lower opening in the domestic

equity market capped the rupee's rise.

Source:economictimes.indiatimes.com

Availing ineligible credit on inputs backed by prior reversal of equal credit is revenue neutral

CENVAT : Where, before taking ineligible credit on inputs directly supplied to job-worker, assessee had reversed equivalent credit under challans to job-worker, entire exercise was revenue neutral and no action could be taken against assessee

HC directs authority to consider sec. 10(23C) relief as request for approval wasn’t not forwarded to

IT : Where assessee society filed application for approval of exemption, said forms were addressed to prescribed authority and were sent through proper channel, but for some reasons were not forwarded to prescribed authority, writ petition filed by assessee was to be allowed

No extended period of limitation if all facts were disclosed in return and transaction was revenue n

Excise & Customs : In case where all facts have been disclosed in periodical returns and situation is revenue neutral (i.e., duty paid by one unit is available to another unit as credit), extended period of limitation cannot be invoked and evasion penalty cannot be levied

Determination of income in an order passed under sec. 153A would be similar to order passed in reass

IT : Determination of income in order passed in terms of section 153A would be similar to order passed in any re-assessment

Delay in filing return due to late completion of audit not condonable if it occurs on non-supply of

IT: Where assessee society failed to file its return within due date on account of delay in getting audit report, in view of fact that said delay was attributable to assessee as it did not supply necessary statements to auditors in time, Commissioner was justified in rejecting application seeking condonation of delay filed under section 119(2)(b)

Order relieving Dept. officer from job pending inquiry amounts to suspension order and not terminati

Excise & Customs : Where petitioner was relieved from job pending inquiry, High Court directed that relieving order would be construed as suspension order rather than termination order and petitioner would be entitled to subsistence allowance

Time gap of 30 days isn't intended between book closure and record date for declaration of dividend,

CL: As per clause 16 of 'Listing agreement' time gap of 30 days is intended between two book closures and two record dates and not between a book closure and a record date

ITAT disallows premium on Keyman Insurance Policy as it wasn't incurred for business purposes

IT: Where assessee's case failed on basis of an inability to discharge onus to exhibit that premium paid on account of Keyman Insurance Policy was wholly and exclusively for business purpose, deduction claimed under section 37(1) was to be disallowed

Rule 8D rightly invoked as assessee didn’t discharge its onus to prove that no exp. was incurred on

IT : Where assessee had not discharged initial onus under section 14A, revenue was justified in applying rule 8D

No condonation of delay in filing appeal on excuse of following Govt. administrative mechanism

CST & VAT : Delay of 1583 days cannot be condoned taking excuse of following Government administrative mechanism

AO's order couldn't be held as erroneous if he had enquired on vital issues without making detailed

IT: If Assessing Officer allowed assessee's claim after making enquiries during course of assessment proceedings on relevant issues, his decision cannot be held to be erroneous simply because in his order he did not make an elaborate discussion in that regard

Sec. 54F relief denied as assessee didn’t furnish evidence to substantiate construction of new resid

IT : Where assessee claimed benefit of section 54F but he did not adduce any evidence establishing construction of new residential house to justify his claim, his claim was to be declined

Govt Orders Quality Checks On Chinese Steel

Acting on Prime Minister Narendra Modi’s directive to curb needless imports, the finance ministry has directed that specific Chinese steel products must be subjected to stringent quality checks before allowing them to enter the country’s hinterland.

In an order issued to the Central Board of Excise and Customs (CBEC) on November 7, the finance ministry has said that Indian importers buying Chinese steel products like thermo-mechanically treated (TMT) bars, used extensively by the realty sector, will henceforth have to compulsorily secure certification by the Bureau of Indian Standards (BIS) at all entry points to the country.

The move is specifically aimed at Chinese steel makers exporting steel by adding boron in their product mix to bypass the defined quality standards of the steel ministry’s Quality Control Order 2012 and the commerce ministry’s import duty.

The Indian Express had reported on September 18 that steel ministry had expressed serious concerns over the burgeoning steel imports from China which during the second quarter of 2014-15 exceeded “the historic (quarterly) high” of 90 million tonnes.

The Indian Steel Association (ISA), the newly created umbrella body of the country’s leading steel companies, has written to the government on November 4 cautioning that imports of hot rolled coils, sheets and plates are up by 41 per cent in the first half of the current fiscal of which imports from China amounts to 111 per cent.

Of the total imports Boron added steel accounted for 80 per cent imports from China. Imports of colour coated steel from China has surged by 117 per cent in the first half of this fiscal, while wire rod imports have shot up by 110 per cent, the ISA said in its letter.

Source:-indianexpress.com

Jewellers, Bullion Trade Worried About Additional Curbs On Gold Imports

Jewellers and the bullion industry are perturbed that the Reserve Bank of India may consider introducing additional restrictions on gold imports. This follows reports that gold imports rose to 150 tonnes in October from 25 tonnes in the same month last year.

“If additional curbs on gold imports are announced, it will have a huge adverse impact,’’ All India Gem & Jewellery Trader’s Federation (GJF) Chairman Haresh Soni said. “High imports were a one-off owing to Diwali and the fourth quarter traditionally sees the highest demand and high level of imports are a consequence of that.”

In 2013, to address the alarmingly high current account deficit (CAD), the government had hiked the import duty on gold to 10 per cent and introduced the 80:20 scheme, where nominated agencies could import gold provided they exported 20 per cent of the consignment. This was relaxed in May when star and premier export houses were allowed to import gold and the RBI allowed banks and the agencies to provide gold for domestic use to the industry.

“No doubt, the government is concerned about the impact on CAD and the need to contain it,’’ Mr. Soni said. “We will be informing our retailer-members to voluntarily stop sale of coins and bars. Last year, we had resorted to the same measure.”

However, Bhargav Vaidya, bullion analyst and committee member of the India Bullion & Jewellers Association (IBJA), felt it seemed unlikely that new curbs would be imposed. “Last year when restrictions were introduced, gold prices were higher and crude oil prices are now about 30 per cent lower. India’s balance of payments position is thus not uncomfortable and I do not expect any new restrictions.”

An ‘unintended consequence’ of the government’s gold import curbs was the rise in smuggling and the grey market for the precious metal, according to P.R. Somasundaram, Managing Director, India, World Gold Council, “as 10 per cent import duty is a huge arbitrage.” He estimated that gold smuggled into India would total around 200 tonnes in calendar 2014 out of a demand of around 850-950 tonnes.

Source:- thehindu.com

Impact of odd event of amalgamation on profits of Co. to be verified before including it in list of

IT/ILT : Where in exceptional events took place like amalgamation or acquisition comparable company Assessing Officer should verify and check whether amalgamation or acquisition would have any impact on profitability of company and thereafter decide issue of acceptablity of aforesaid company as comparable

Institute providing coaching in mathematics through 'Abacus' was recreational training institute; ex

Service Tax : Imparting coaching in mathematics based on ancient Japanese methods of mathematical calculation with help 'Abacus' amounts to 'recreational training institute' and is exempt from service tax under notification no. 24/2004-S.T., dated 10-9-2004.

Obtaining death certificate of petitioner was sufficient to condone delay in filing plea by his lega

CL : Where on account of petitioner's death substitution application was filed by legal heir after stipulated period of 30 days, application was to be allowed as there were sufficient reasons such as obtaining death certificates, completing religious rites, etc., which resulted in delay in filing application

Rupee Gains 5 Paise At 61.67 Against Us Dollar In Early Trade

The rupee strengthened by five paise to 61.67 against the US dollar in early trade on Monday at the Interbank Foreign Exchange on selling of the US currency by exporters and banks amid sustained capital inflows.

The rupee depreciated by 17 paise to end at nearly one-month low of 61.72 against the greenback on Friday on sustained dollar demand even as domestic equities surged to new highs.

Traders said besides selling of the American currency by exporters and banks, continued foreign fund inflows helped the local currency to strengthen, but the dollar's gains against rivals overseas and a lower opening in the domestic equity market capped the rupee's rise.Meanwhile, the benchmark BSE Sensex fell 44.51 points, or 0.16 per cent, to 28,002.15 in early trade today.

Source:-zeenews.india.com

FinMin notifies 'Depository Receipt Scheme, 2014' wef from December 15, 2014

SEBI/INDIAN ACTS & RULES : Depository Receipts Scheme, 2014

Selection Committee to recommend names of selected panel members of CCI in order of merit

COMPETITION ACT/INDIAN ACTS & RUILES : Competition Commission of India (Term of The Selection Committee and The Manner of Selection of Panel of Names) Amendment Rules, 2014 – Amendment In Rule 5

Sale proceeds of land/bonds aren't annual receipts; excludible in determining monetary limit of sec.

IT: Sale proceeds of land and bonds was not an annual receipt therefore, same should be excluded while considering monetary limit prescribed under section 10(23C)(iiiad)

Co-operative society was entitled to legitimate relief under sec. 80P even if it wasn’t claimed in i

IT : Assessee co-operative society would be entitled for deduction under section 80P(2)(a)(i) even though same had not been claimed in its return of income

Adjudication order can't be reviewed by dept. if same gets merged with order of Commissioner (Appeal

Excise & Customs : Where entire adjudication order was impugned by assessee before Commissioner (Appeals), same stood merged with order of Commissioner (Appeals) and all points with regard thereto became res judicata; therefore, review of adjudication order was impermissible

Assessee couldn't challenge transfer order belatedly at a time when new authority was exercising its

IT : Where assessee did not challenge order of transfer of its case at earliest letting all believe that such transfer was accepted, assessee should be barred from challenging same on exercise of jurisdiction by new authority

Sec. 80-IB: Date of initial approval would be deemed as date of approval of housing plan even after

IT : Area of one acre as prescribed in clause (b) of section 80-IB means area of one acre available for housing project inclusive of amenities as per norms of concerned municipal corporation or local body

Prior to 23-8-2007, sub-contractors weren't liable to ST circular levying ST liability was issued th

Service Tax : Department had, vide Circular dated 23-8-2007, clarified that sub-contractors are also liable to service tax; therefore, prior thereto, prima facie, there was doubt about taxability of services provided by sub-contractors

Mere proposal to carry on commercial activities in future won't lead to denial of sec. 12A registrat

IT: Where assessee-trust had merely proposed to carry on business activity in future to support its charitable purposes, registration under section 12A could not be rejected

No reassessment due to non-filing of return if time-limit to file belated return hadn’t expired, say

IT : Where time to file return is available to assessee, it cannot be said that any income has escaped assessment

HC set aside Tribunal's order as it was passed without giving any cogent and convincing reasons

Excise & Customs : Every authority (whether administrative, quasi-judicial or judicial) is required to pass a reasoned order; hence, where Tribunal has dismissed appeal of assessee without giving any cogent and convincing reasons, said order of Tribunal was set aside and matter was remanded back to Tribunal for decision afresh

Forex losses arising from services provided to foreign AEs are operative in nature; to be part of PL

IT/ILT: While computing margin of assessee in its TP study, issue of segmental information to be considered; TPO should verify whether assessee had maintained separate books of account which were audited by statutory auditors of Software Development Services and, if so, TPO should consider audited segmental information and use only AE segment for computing assessee's PLI.

Provisions of sec. 13 couldn’t be invoked by CIT while considering application for sec. 12AA registr

IT : Provisions of section 13 can be invoked by Assessing Officer while framing assessment and not by Commissioner while considering application for registration under section 12AA

CLB granted interim relief to petitioner as reliefs sought by it couldn't be referred to arbitration

CL: Where prima facie acts of oppression and mismanagement in affairs of company stood proved and reliefs sought for were not capable of being arbitrated by an arbitrator, keeping in mind paramount interest of company and balancing equities between parties, interim reliefs as prayed for were to be allowed

CBDT authorizes Principal CITs to order CITs(A) to exercise powers and perform functions

IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of – Supersession of Notification No. SO 777(E), DATED 11-10-1990

No capital loss on writing off advances given to other cos, as such advances couldn't be construed a

IT : No capital loss on writing off advances given to other cos, as such advances couldn't be construed as capital assets

Assessee couldn't file review application in guise of rectification to criticize the order passed by

IT: Where assessee was seeking a mere review and not rectification of any obvious and patent mistake apparent from record, an application under section 254(2) could not lie against an order passed under section 254(2) rejecting earlier application for rectification of order passed under section 254(1)

Pre-deposit can be waived in strong prima-facie case even if assessee doesn't plea for undue hardshi

Excise & Customs : When a strong prima facie case has been made out by assessee, Tribunal ought to grant an order of stay without condition of pre-deposit, even if 'financial hardship' had not been shown to exist or proved by acceptable evidence.

Existing units which got converted into STP units after fulfilling prescribed conditions would get s

IT: Even existing DTA units which get converted into STP unit could get benefit under section 10A

No revision by CIT due to brief order issued by AO if he had allowed claim after examining materials

IT : Where Assessing Officer allowed assessee's claim for additional depreciation on windmills and machinery after taking into consideration relevant material on record, there being no infirmity in said order, impugned revisional order passed by Commissioner deserved to be set aside

MCA further extends validity of Company Law Settlement Scheme upto December 31, 2014

COMPANIES ACT, 2013 : Section 92 of The Companies Act, 2013 – Annual Return - Company Law Board Settlement Scheme, 2014 – Extension of said Scheme up to 31-12-2014

Operating profit ratio has to be taken as 'PLI' for computing ALP of goods Purchased from AE

IT/ILT : Where assessee entered into controlled transaction of purchase of goods from AE, operating profit to operating revenue be taken as PLI for Transfer Pricing Analysis

Order of Tribunal was set aside as it was passed without considering directions of High Court

Excise & Customs : Where Tribunal had not considered a judgment directed to be considered by High Court, Tribunal order was liable to be set aside and matter was remanded back to Tribunal for consideration afresh

Even if application is pending before DRT, winding-up plea to be dismissed as respondent defended pe

CL: If against winding up petition of creditor there was a substantial defence which required investigation, winding up petition must fail; it makes no difference that petitioning-creditor had a pending application before DRT

Principal Directors General, CITs, Directors General and Chief CITs shall be subordinate to CBDT: Fi

IT : Section 118 of The Income-Tax Act, 1961 - Income-Tax Authorities - Control of - Notified Subordinate Officer - Amendment in Notification No. SO 359, Dated 30-3-1988

CBDT directs DGIT, Principal CITs, Chief CITs and CITs to exercise powers in respect of notified jur

IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Supersession of Notification No. SO 822(E), Dated 23-8-2001

CBDT revises cases or classes of cases in respect of which CIT (Exemptions) can exercise powers

IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Amendment in Notification No. SO 2754(E), Dated 22-10-2014

CBDT reconstitutes jurisdictions of Director General, Principal Directors and DITs (Investigations)

IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Amendment in Notification No. SO 1189(E), Dated 3-12-2001

CBDT empowers Principal Chief CIT, Chief CIT and CIT of International Taxation to distribute work am

IT/ILT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Amendment in Notification No. SO 2816(E), Dated 3-11-2014

CBDT directs ACITs and JCITs to exercise powers and perform functions of AOs in respect of notified

IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Supersession of Notification No. SO 889(E), Dated 17-9-2001

Honda Cars India Eyes Breakeven And Profits Much Before March 2017

Japanese automobile maker Honda Cars India, which had sacrificed short-term profits as it built scale through new products and ramped up manufacturing capacities, now eyes breakeven and profits much before March 2017, indicated its president and chief executive Hironori Kanayama.

Currently, focusing predominantly on the domestic market and exporting less than 4% from two of its India facilities, the company will also explore the option of making India an export hub based on emerging opportunities in the African market.

Honda Cars, which had halved its losses to Rs 479 crore in 2013-14 with accumulated losses at Rs 1,848 crore, is upbeat on the prospects of the Indian market, especially after the encouraging response to its recent new launches. The automobile manufacturer has more than doubled its revenue by posting 83% growth in volumes at 1.3 lakh units during the fiscal to March 2014. It has now set a larger business goal of achieving sale of 3 lakh units a year by March 2017.

Kanayama told ET in Hyderabad on Thursday, that his company bucked the trend and posted over 80% growth in sales last fiscal when the Indian market actually declined. "We are confident that we can achieve growth much faster than the market.

Source:- economictimes.indiatimes.com

Cap on investment in FDs raised to Rs. 1,50,000 to keep it in sync with revised limits of Sec. 80C

IT : Bank Term Deposit (Amendment) Scheme, 2014 – Amendment in Para 3

Capital gain is taxable on completion of transfer of asset and not on receipt of consideration

IT : When transfer of capital asset is complete, sale consideration has to be taken into consideration for purpose of assessment even though payment of consideration deferred till other assessment year

Refund claims can't be denied without granting personal hearing to assessee

Excise & Customs : Refund claims cannot be rejected/denied or an adverse order in that matter cannot be passed without first giving a personal hearing to assessee; hence, order denying personal hearing on pretext of delay was quashed

India Says May Stop Thermal Coal Imports In 2-3 Yrs

India, the world’s third-largest buyer of overseas coal, may be able to stop imports of power-generating thermal coal in the next three years as state behemoth Coal India steps up production, the country’s power and coal minister said.

Prime Minister Narendra Modi’s government has asked Coal India, the world’s largest miner of the fuel, to more than double its output to 1 billion tonnes by 2019 to feed existing and upcoming power plants.

Modi has promised round-the-clock power to all Indians by 2022 and recently announced the nationalised coal industry would be opened up to allow private firms to compete with Coal India, which accounts for 80 percent of the country’s output.

Declining shipments to India would drag on global coal markets grappling with oversupply as top consumer and importer China tries to shift towards cleaner fuels.

“I’m very confident of achieving these targets and am very confident that India’s current account deficit will not be burdened with the amount of money we lose for imports of coal,” Power and Coal Minister Piyush Goyal told a conference on Wednesday.

“Possibly in the next two or three years we should be able to stop imports of thermal coal.”

Coal generates three-fifths of India’s power, but a shortage of the fuel means millions still go without electricity and power cuts are common.

Around 60 of India’s 103 power plants had enough coal for less than a week’s usage as of Nov. 2 due to lower supplies from Coal India.

Imports of coal have been surging as a result, equating to about 1 percent of India’s economy.

Shipments rose to 168.4 million tonnes last fiscal year, and the government estimated earlier this year that the domestic shortage would range between 185 and 265 million tonnes by 2016/17.

And some analysts were sceptical the country would be able to end imports soon.“India’s reliance on imports is not going away anytime soon,” said Prakash Duvvuri, head of research at consultancy OreTeam.

Source:- hellenicshippingnews.com

Skyrocketing Gold Imports In October Prompts Government And Rbi To Review Restrictions

India's gold imports rocketed in October, accelerating the trend in the third quarter of 2014 and prompting the government to consider restrictions on shipments as they have a bearing on the country's current account.

However, the World Gold Council said trade restrictions will encourage smuggling, which is already rising alarmingly. It estimates that about 200 tonnes of the yellow metal would be smuggled into the country this year, which is a huge amount for a country that bought 825 tonnes last year.

October gold imports are estimated to have jumped to 148 tonnes, rising six-fold from less than 25 tonnes in the same month last year. Imports in the September quarter were up 39%.

Top officials of the finance ministry and the Reserve Bank of India met on Thursday to consider tightening import controls on gold. They agreed to meet again in a few days to take a decision, official sources said. "We have not yet taken any decision and will meet in a day or two to continue the discussion," said a finance ministry official.

The government had clamped down on gold imports last year stipulating that nominated agencies could import gold on the condition that 20% of the consignment would be exported.

The scheme, commonly referred to as the 80:20 scheme, was relaxed in May this year when RBI allowed star and premier export houses to import the commodity. Banks and nominated agencies were also allowed to provide gold for domestic use as loans to jewellers and bullion traders. Last year, the government had increased the gold import duty to 10% to check widening current account deficit.

Net gold imports into India stood at 204 tonnes in the third quarter, up 124% from 91 tonnes in the same period a year ago. But last year's figure was artificially low because of government curbs.

Jewellery demand by India during the quarter stood at 182.9 tonnes, 16% higher than the demand from Greater China, including Hong Kong and Taiwan. Demand for bars and coins by the country during Q3 was higher at 42.2 tonnes compared with Greater China's 37.1 tonnes.

The World Gold Council, the global gold miners' lobby, says smuggling is an "unintended" consequence of the government's curbs on imports.

"The demand for gold in the country is not speculative and the restrictions have had unintended consequences, like encouraging smuggling," said Somasundaram PR, MD (India), World Gold Council.

"We estimate that over 200 tonnes of total gold imports this year would be unofficial." Last year, India imported 825 tonnes. In the year through September, imports amounted to 525 tonnes. Demand usually rises in the fourth quarter of the calendar, which coincides with the festive season.

Referring to the 80:20 scheme, Somasundaram said exports of handcrafted jewellery to countries in the Middle East and South-east Asia, which comprise a sizeable portion of the diaspora, were not "visibly" apparent. "If India exports 20%, you should typically see a lot of activity in places such as Dubai and South-east Asia, which does not seem very apparent."

In rupee terms, the average price of gold at Rs 25,452.4 per 10 gm during the quarter was 6% lower than a year ago.

Source:economictimes.indiatimes.com

Share application money couldn't be treated as loan/deposits to trigger provisions of deemed dividen

IT : Merely because shares were issued belatedly in subsequent year, share application money cannot be treated as loan or deposits or advance for invoking provisions of section 2(22)(e)

Department can't adjust unconfirmed demand against refund payable to assessee

Service Tax : While confirmed demand can be adjusted from amount of refund, there is no provision to adjust unconfirmed demand from amount of refund

Gains on renouncement of right of ESOP within 36 months of offer would give rise to short-term capit

IT : Where assessee acquired rights to purchase shares under ESOP which was a capital asset and he transferred said right within 36 months of offer, period of holding of right in question being less than 36 months, gain arising from transfer of said right was to be assessed as short-term capital gain

HC stayed recovery proceedings as appeal for condonation of delay was pending before Tribunal

Excise & Customs : Where assessee's applications seeking condonation of delay and stay of demand were still pending before appellate authorities viz. Tribunal as well as Commissioner (Appeals), High Court stayed recovery proceedings

A brief assessment order couldn’t be held as erroneous even if there was legal requirement to give d

IT : Writing an assessment order in detail may be a legal requirement but order not fulfilling this requirement cannot be said to be erroneous and prejudicial to interest of revenue

No penalty on claiming deduction of unpaid leave encashment exp. if full disclosure was made in retu

IT : Where assessee-society treated unpaid leave encashment and gratuity as liability and claimed deduction of same and full particulars of income given in return were not found to be incorrect, penalty was to be deleted

Distributors buying and selling lottery tickets on principle-to-principle basis aren't liable to ST

Service Tax : Sale and purchase (including 'on sale or return') of lottery tickets, which are actionable claims does not amount to service, if distributor was not acting as agent of Government and therefore, said activity was not liable to service tax

SEBI’s AO has to follow earlier order of other AOs unless facts/circumstances of impugned case are d

SEBI : Unless facts and circumstances set out in order passed by adjudicating officer are materially different from facts and circumstances of case in hand, it would be just and proper for adjudicating officer to follow earlier order so that there is uniformity in quasi-judicial orders passed by adjudicating officers of SEBI

CBEC reconstitutes committees for Appellate Tribunals in India

EXCISE & CUSTOMS LAWS/ST LAWS : Section 86 of The Finance Act, 1994 - Appeals to Appellate Tribunal - Constitution Of Review Committee of Chief Commissioners of Central Excise & Chief Commissioners of Service Tax - Corrigendum to Office Order No. 4/2014-St, Dated 15-10-2014

IRDA lays down guidelines for underwriters for pricing a risk on policies issued to commercial entit

INSURANCE : Further Guidelines on Pricing of Risk