THE Central Government has imposed definitive anti dumping duty on import of Cold Rolled Flat Products of Stainless Steel (barring a few exceptions as specified in the Notification) falling under Chapter 7219 of the First Schedule to the Customs Tariff Act, 1975 and originating in, or exported from the People's Republic of China, Korea, European Union, South Africa, Taiwan, Japan, Thailand and United States of America.

The anti-dumping duty imposed shall be levied at the rates specified in this Notification with effect from the date of imposition of the provisional anti-dumping duty i.e. April 22, 2009, and shall be payable in Indian currency. The provisional anti dumping duty was imposed by Notification No. 38/2009-Cus., dated 22-4-2009 and the Notification clearly stipulated that “The anti-dumping imposed under this notification shall be effective upto and inclusive of the 21st day of October, 2009, and shall be payable in Indian Currency.”.

Maybe they forgot about it for four months and they say anti dumping duty is imposed from 22.04.2009. When they can impose this duty retrospectively, why stipulate a condition that it will not be effective after a particular date and then you don't follow your own notification and bring it back to life after a few months of its death. Can't the tax provisions be a little more clear?

NOTIFICATION NO. 14/2010-Cus., Dated: February 20, 2010

CBDT Reconstitutes Dispute Resolution Panels

THE Central Board of Direct Taxes has constituted new Dispute Resolution Panels comprising of three Commissioners of Income Tax/Director of Income Tax at specified places in exercise of its powers under Section 144C of the Income Tax Act, 1961. These DRPs are in supersession of the earlier DRPs constituted vide Order No. 173/2009 dated November 30, 2009.

ORDER NO. 1/FT&TR/2010 Dated: February 10, 2010 further modified by ORDER NO. 2/FT&TR/2010

Central Government Notifies Another Industrial Park

THE Central Government, in exercise of its powers under clause (iii) of sub-section (4) of section 80-IA of Income Tax Act, 1961 read with Rule 18C of the Income Tax Rules, 1962, has notified M/s. Kolte Patil Developers Limited, Pune as an undertaking and the project at Survey No. 198/1B, Lohgaon, Pune, Taluka Haveli, Districti Pune, Maharashtra [(Project Giga Space), (Building Alpha-1, Alpha-2, Beta-1, Beta-2, Gamma & Delta-2)], being developed, maintained and operated by the said undertaking, as an industrial park for the purposes of the said clause (iii) thereof, subject to the terms and conditions specified in the Notification.

NOTIFICATION NO  10/2010 , Dated: February 19, 2010

Team of Officials Designated for Verification of New IEC

DGFT has amended paragraph 2 of Circular No. 94 dated 16.6.2009 which stipulates a team of officials required for physical verification of a new Import Export Code Number.

The paragraph 2 of Circular No. 94 originally read as follows:

2. The physical verification shall be carried out by a team of two officials which shall be led by an officer not below the rank of FTDO.

Now, this paragraph 2 is amended as follows:

2. The physical verification shall be carried out by a team of two officials which shall be led by an officer not below the rank of FTDO. However in exceptional circumstances, and with specific orders of the HOO in RA's a two member team comprising of one FTDO/ Section Head/ LA and one UDC/ Senior LDC may carry out inspection of new IEC numbers, as required in the para (1) of the Policy Circular No. 94 dated 16.6.2009.

DGFT CIRCULAR NO. 25 /2009-2014 Dated: February 22, 2010

Ceiling Rate on Export Credit in Foreign Currency Reduced

THE Reserve Bank of India in consultation with the Government of India has decided to reduce the ceiling rate on export credit in foreign currency by banks to LIBOR plus 200 basis points from the present ceiling rate of LIBOR plus 350 basis points with immediate effect, subject to the express condition that the banks will not levy any other charges viz. service charge, management charge etc except for recovery towards out of pocket expenses incurred. 

Similar changes may be effected in interest rates in cases where EURO LIBOR/EURIBOR has been used as the benchmark. The rates of interest applicable were incorporated in the Annexure to the DBOD.DIR.(Exp).No.75/04.02.001/2009-10 dated February 19, 2010.

Further, in modification of the instructions contained at para 5.1.3(iii)a of the Master Circular on Rupee / Foreign Currency Export Credit dated July 1, 2009, the ceiling interest rate on the lines of credit with overseas banks has also been reduced from six months LIBOR/EURO LIBOR/EURIBOR plus 150 basis points to six months LIBOR/ EURO LIBOR/EURIBOR plus 100 basis points with immediate effect.

DBOD.DIR.(Exp).BC.No.75/04.02.001/2009-10 Dated: February 19, 2010 and

DBOD.DIR.(Exp).No.76/04.02.001/2009-10 Dated: February 19, 2010

Jurisprudentiol – Wednesday's cases

Central Excise

Scrap generated in workshop during manufacture of excisable goods exempted under Notfn. 65/95-CE is chargeable to duty : CESTAT

THE relevant fats of the case are that the appellants are manufacturer of sugar, molasses, etc. They are having a workshop, where they manufacture excisable goods for the maintenance of machines installed in their factory. These goods are exempted under Notification no. 65/95-CE dated 16.3.1995, provided that the goods are used within the factory for repairs or maintenance of machinery installed therein. While manufacturing these excisable goods scrap was generated.

Income Tax

Indo-Canada DTAA - Assessee makes payments to non-resident for acquiring Sponsorship Title of a sports tournament - AO treats it as royalty - Since assessee does not acquire any copyrights or right to use, it does not amount to royalty payment under Article 13(3)(c) of DTAA: Delhi HC

THE revenue is aggrieved by the finding of the Tribunal that the payment of USD 9,24,500 /- by the assessee, as per the agreement dated 10.07.1996, to IMG Canada through IMC India, did not amount to a royalty payment under Article 13(3)(c) of the Double Taxation Avoidance Agreement entered into between India and Canada (hereinafter referred to as 'the said DTAA').

Customs

Pre-shipment condition of the vehicle is now a matter of history and nothing can be done by respondent today to ensure that the motorcycle in its pre-shipment condition, conformed to ‘homologation certificate' issued by manufacturer or to specifications stipulated under Motor Vehicles Act/Rules – Respondent liable to re-export vehicle : CESTAT

HAVING found that the importer had not fulfilled many of the above conditions in respect of the motorcycle, the Additional Commissioner of Customs ordered confiscation of the vehicle under section 111(d) of the Customs Act. However, an option to re-export the vehicle on payment of redemption fine of Rs.30,000/- within a period of one month was also given to the importer. A penalty of Rs.5000/- was also imposed on him under section 112(a) of the Act.

See our columns Tomorrow for the judgements

Until Tomorrow with more DDT

Have a nice day.

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