IT : Where subsidy received under West Bengal Industrial Promotion Scheme, 1994 was treated as Capital receipt in revisional proceedings taken under sec. 263 in earlier year, Assessing Officer could not reopen assessment during relevant year taking a view that amount in question was revenue receipt
Wednesday, 19 November 2014
Assessment in name of deceased person is void-ab-inito, says ITAT
IT: Assessment made in name of deceased person is non est and void ab initio
Any transaction involving acquisition of immovable property under FEMA norms shall be subject to Ind
FEMA/ILT : FEM (Acquisition and Transfer of Immovable Property In India) (Amendment) Regulations, 2014 – Insertion of Regulation 9
SC transfer various appeals pending before CESTAT benches to full bench to ensure uniform order
Service Tax : Supreme Court directed that various cases pending at Bangalore, Hyderabad and other places, be heard together by a Full Bench, presided over by President CESTAT so that in ultimate eventuate, uniform order is passed
No deemed seizure of agricultural land as it wasn’t a valuable article of which physical possession
IT : Unless valuable article or thing found as a result of search is of a nature that it is not possible or practicable to take physical possession of same, seizure of petitioner's immovable properties would not be necessary
No sec. 153A addition in respect of completed assessment when no incremental material was found duri
IT: No addition can be made in respect of assessments concluded on date of search unless some incriminating material is found during course of search
No penalty if there was no intent to evade tax and assessee had failed to mention invoice no. in dec
CST & VAT : Where Assessing Authority imposed penalty upon assessee under section 54(1)(14) of U.P. VAT Act on plea that column No. 6 of Form 38 had been left blank, since there was no intention to evade payment of tax, levy of penalty was not justified
No reference to Valuation Officer to ascertain undisclosed investment unless AO had rejected books o
IT : Where Assessing Officer made a reference to Valuation Officer without rejecting books of account of assessee, addition under section 69B was to be deleted
Appeal was not maintainable as it was signed and verified by the ex-Managing director of a company
IT : Where 'S' was neither Managing Director nor director of assessee company when appeal was filed before Tribunal, therefore, he was not an authorised person to sign and verify appeal filed on behalf of assessee company
ROC restores Co.'s name on an undertaking that it will comply with all statutory requirements therea
CL: Where petitioner-company had undertaken that statutory compliances shall be made and requisite statutory records and accounts will be filed with ROC once name of company is restored, name of petitioner-company was to be restored subject to payment of costs
Tuesday, 18 November 2014
ITAT directs AO to examine revised TDS return for deciding issue of sec. 40(a)(ia) disallowance
IT : Where revised TDS return was filed by assessee during appellate proceedings, matter was restored to Assessing Officer to examine same
Matter remanded by Tribunal without any observation on merits couldn't be challenged before HC
Excise & Customs : Where Tribunal has : (a) neither opined on quality of material, (b) nor held that it should necessarily be admitted and examined etc., but, has merely thought it proper that it should be examined by adjudicating authority rather than by Tribunal, said remand order could not challenged in appeal before High Court
Penalty upheld as source of deposits wasn’t explained and income wasn’t disclosed in pursuance of se
IT : Where assessee did not explain cash deposits and did not disclose income in response to notice issued under section 153C and did not give details as to how he would fall within explanation 1 to section 271(1)(c), penalty would be levied
Prior to 1-4-2005, no denial of sec. 80-IB relief even if space for commercial establishment exceede
IT : Where approval to housing project was given prior to 1-4-2005, deduction of section 80-IB could not be denied on ground that commercial establishments exceeded 2000 sq. feet
ITAT set-aside TP addition as some of the comparables chosen by TPO were functionally different
IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering research and development support services to its AE, in view of fact that some of comparables selected were inappropriate on account of functional difference, regarding, impugned addition was to be set aside and matter was to be remanded back for disposal afresh
Interest on refund to be calculated from date of filing of first application and not from date of re
Excise & Customs : Where assessee had applied for refund on 4/11-2-2003, but, had re-submitted same in June 2004 after having won on merits before Commissioner (Appeals), interest on refund would be granted with reference to 4/11-2-2003
MMTC couldn't be said to be in dominant position as other players in market were also trading in gol
Competition Act: Where not only OPs, i.e., government nominated agencies for import and allocation of gold, but also other dealers, Jewellery, manufacturers and retailers were engaged in trading of gold, it could not be said that OPs were in a dominant position
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
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