TIOL-DDT 1844 26.04.2012 Thursday DIRECTOR General (Systems) has accorded SEZ port codes to 53 SEZs. Applicants may file applications using these codes in DGFT server wherever required under the provisions of Foreign Trade Policy 2009-14 / SEZ Act and Rules. DGFT Policy Circular No. 59/(RE-2010) /2009-14 Dated: April 24, 2012 Olga Case Not Closed - CBI REPORTS have been published in a section of the Media indicating that CBI is likely to close a case against five senior officers of the Indian Customs and Central Excise, who were charge-sheeted for alleged clandestine silk imports in collusion with Senior Customs & Central Excise officials. CBI clarifies that there is no move by CBI to close the case. In fact, the matter is pending before the High Court of Delhi. In case you don't remember Olga, here is a brief background. Olga Kazireva, a beautiful young girl from Uzbekistan was arrested by the Customs officers on 28.8.2000 at Indira Gandhi International Airport, New Delhi while smuggling 27 bags of Chines silk worth 1.56 crores. It was a Custom made case - involving dollars, Chinese silk, sexy (phoren) women and Customs Officers. It was all smooth (silky) operation with women passengers landing in Delhi airport with yards and yards of fine Chinese silk in their baggage, seduce their way through Customs and disappear into the crowded bylanes of Paharganj near New Delhi Railway Station. In ten months, Olga made 68 silky trips to India. She was said to have connections with many Customs officers including the top boss. 48 Customs officers were suspended. CBI charge sheeted 27 Customs officers (including five Group A officers) in 2006. Some newspapers have recently reported that the Revenue Secretary has written to the CBI Director to apply to the trial court judge for closure of the case against five senior officers of Indian Customs and Central Excise. Though compared to present standards, Olga was smuggling peanuts, what was disturbing was that a young lady could smuggle in goods weighing more than 2200 kgs at a time and there were apprehensions that after all, what she was smuggling might not have been just silk, for silk smuggling can't be that lucrative. Was she smuggling drugs and arms too? WTO Reviews Anti Dumping Duty THE WTO Committee on Anti Dumping Practices reviewed 30 semi-annual reports of anti-dumping actions taken during the second half of 2011. Turkey expressed concern about the Indian anti-dumping measure on soda ash from Turkey, adding that such measures should not be used as disguised protectionism. Norway said that India's anti-dumping action on caustic soda from Norway was the first time India has initiated such an action against Norway. It maintained that Norwegian companies did not export caustic soda to India during the period under investigation. India said that its anti-dumping procedures were consistent with the WTO. Retrospective Taxation - Foreign Investors will abandon India? THE Brisbane Times reported today that foreign investors will abandon India if a proposed law to retrospectively tax deals with Indian companies is passed; The Paper further reports: The law is designed to target one company, and one transaction - Vodafone's 2007 purchase of Hutchison Essar Telecom from which the Indian government wants to claim nearly USD 2 billion in capital gains. But governments and trade groups have asked India's Finance Minister to scrap the tax, saying investment would be diverted from India at a time when the country desperately needs it. The lustre of India has been dimmed by stymied efforts to liberalise India's economy. India's growth rate, hampered by high interest rates and inflation, as well as weak foreign investment, fell to 6.1 per cent last quarter, the seventh consecutive quarterly slowdown. Are we Going Back to Pre 1991 Days? WHAT is really happening? Supporters of retro tax laws (and there are many in India) would shout, 'who is Vodafone or UK or USA to tell us how we should tax? Who are they to interfere in our sovereign functions? We don't need foreign investment on their terms - in any case they are coming here to make money.' Standards & Poor has downgraded us from stable to negative. Tax Laws are made draconian - this budget proposes minor offences in Customs non-bailable. Babudom has become powerful and all sorts of discretion vest with them. Remember the idealistic days of our socialistic economy? Industrialists were penalised for excess production; there used to be a chief controller of exports; Income Tax used to be 98%; anyone contributing to the economy were considered traitors and anyone who helped in perpetuating poverty, were the patriots. In 1991, an Economics professor became the Finance Minister and he changed the whole scene. Now, under the same professor as Prime Minister, are we driving fast in the reverse gear? Anyway, according to the wise men in the Planning Commission, all that you need, to be called rich in India, is thirty rupees a day. To ensure that every Indian does not go beyond that level, you can do all your experiments. Jurisprudentiol – Friday's cases Central Excise SSI Exemption - Value of clearances under Deemed Export - Clubbing of - ¶Deemed Exports¶ cannot be equated as ¶exports¶ for each and every purpose. Benefits available for ¶deemed exports¶ shall be only those specifically provided under the EXIM Policy. Value of ¶Deemed Exports¶ is to be included in the calculation of aggregate value of clearances for extending the benefit of exemption in terms of Notification No.1/93-CE.: CESTAT THE respondent assessee, who is an SSI unit and availing the benefit of Notification No 1/93 CE, supplied goods under Notification No 49/94 CE(NT) dated 22.09.1994 for ultimate export by the buyer (MRF Ltd). However, since the assessee had not followed the Chapter X procedure under Central Excise, duty was demanded on the said goods and the same was paid by the assessee without protest. Consequently, for computation of value of goods cleared for home consumption in the preceding financial year, which at the material period was Rs 3 crores, department sought to include the value of the said deemed exports also for extending the benefit of exemption under Notification No 1/93 CE. Income Tax Income tax - Whether when AO by mistake fails to examine a particular entry in the return or overlooks the same, it can be said that there was no application of mind and it is a fit case for re-assessment - Matter referred to Larger Bench: Delhi HC THE issues before the Bench is - Whether when AO by mistake fails to examine a particular entry in the return or overlooks the same, it can be said that there was no application of mind and it is a fit case for re-assessment and Whether change of opinion necessarily postulates and requires application of mind and formation of opinion at the first instance in the original proceedings. And the matter is referred to the Larger Bench. Service Tax Tour Operator - Providing buses for transportation of ONGC officers - Not rent a cab service - CESTAT by Majority THE assessee had an agreement with ONGC for the purpose of giving vehicles to transport the employees of ONGC to various places. The said agreement is between ONGC and the assessee and is for transportation of personnel and their delegates under the instructions and direction from the officials of ONGC. The appellant is in possession of vehicles and is only hiring out the vehicles to ONGC for a stipulated period or as per the agreement. Whether the hiring out of vehicle is for a day or a month does not mean anything, as the said vehicle is still in the possession of the appellant assessee or his driver during the entire period. See our columns Tomorrow for the judgements Until Tomorrow with more DDT Have a Nice Day Mail your comments to vijaywrite@taxindiaonline.com |