10 02 2015
Tuesday
AS per the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, an exporter receiving an advance payment for exports (with or without interest) from a buyer outside India shall be under an obligation to ensure that the shipment of goods is made within the stipulated period from the date of receipt of advance payment.
RBI has observed that there is substantial increase in the number and amount of advances received for exports remaining outstanding beyond the stipulated period on account of non-performance of such exports (shipments in case of export of goods).
RBI wants banks to efficiently follow up with the concerned exporters in order to ensure that export performance (shipments in case of export of goods) are completed within the stipulated time period.
RBI further wants banks to exercise proper due diligence and ensure compliance with KYC (Know Your Customer) and AML (Anti Money Laundering) guidelines so that only bonafide export advances flow into India. Doubtful cases as also instances of chronic defaulters may be referred to Directorate of Enforcement (DoE) for further investigation.
Recently Enforcement Directorate is reported to have initiated investigation into such export advances running into over 800 crores in UCO Bank - with no export taking place -maybe another scam in the making; other banks could also be involved.
RBI Circular 74/RBI., Dated: February 09, 2015
CBEC Notifies Hinduan City ICD
CBEC has notified Hindaun City, District Karauli in the State of Rajasthan as Inland Container Depot (ICD)
Notification No.19/2015-Cus., (N.T.), Dated: February 02 2015
Monitoring of Court Cases - CBEC is serious
IN some cases CATs/Courts have imposed penalty on the Government on account of delay in filing or non-filing of reply affidavits in respect of the OAs/CWPs filed in the CATs/Courts despite ample opportunity having been given to the Government to file the reply affidavits. In some cases, the CAT/Court has also issued direction on forfeiture of right to file reply because of undue/prolonged delays in filing reply affidavits.
In such situations what does the Board do? It takes a serious view. And now also the Board has followed the established tradition and taken a serious view.
CBEC also gives certain instructions on how to deal with this problem.
1. All the Chief Commissioners/Directors General will designate a nodal officer for dealing with and monitoring of the court cases, not below the level of Joint Commissioner, who will ensure that timely action in filing reply affidavits is taken in consultation with the Govt. Counsel(s).
2. In case any action is required to be taken on the part of the Board, the same will be communicated to the Board well in advance along with copies of all the relevant documents available with the Commissionerate.
3. All the Chief Commissioners should put in place a mechanism for review and monitoring of action required to be taken in CAT/Court cases on fortnightly basis at the level of Commissioner and Chief Commissioner/DG.
4. Suitable instructions in this regard should be issued by each Chief Commissioner/DG, with a copy to the Board, duly indicating therein the name, address, Telephone No., Mobile No. and Email ID of the nodal Officer designated for the purpose.
5. The designated nodal officers should keep in touch with the concerned officers in the Board dealing with the subject matter of the Court Case so as to ensure that no undue delay/lapse takes place in filing reply affidavits and in effectively defending the interest of the Govt of India before the Court of law.
Board wants a report in a week. They will get it after a couple of reminders.
CBEC Office Memorandum in F.No.FTS(R): 26179/Member(P)/2015, Dated: February 09 2015
Encashment of EL during LTC - Govt Clarifies
THE babus get a Leave Travel Concession to go anywhere in India once in four years and to the Home Town once in two years. They can also surrender 10 days leave and collect the salary for those ten days when they go on LTC. Now, some babus have got a doubt as to how many times they can avail of the encashment within the same block.
The Government clarifies:
Government servants entitled to avail LTC may encash earned leave upto 10 days at the time of availing both types of LTCs, i.e. 'Hometown' and 'anywhere in India'. However, when the one and the same LTC is being availed of by the Government servant and his family members separately in a block year, encashment of leave would be restricted to one occasion only.
DoPT Office Memorandum NO.14028/2/2012-ESTT (L), Dated: February 09 2015
India is the fastest growing economy - How?
THE Indian Economy grew 7.5 per cent in the quarter ending December 2014 beating China's growth rate of 7.3 per cent. The Central Statistics Office of the Ministry of Statistics & Programme Implementation yesterday declared that we will have an annual growth rate of 7.4 per cent in the Financial Year 2014-15.
How did we achieve this amazing miracle?
The method of calculation of GDP and the base year are changed. GDP is now measured by market prices instead of factor cost. The base year has been changed to 2011-12 from 2004-05.
Income Tax - Employee Registration for Aadhar Based Biometric Attendance- Tardy Progress
BASED on the feedback received from different officers the position on the implementation of ABBAS has been reviewed by the Chairperson, CBDT who has observed,
"Very tardy Progress. It appears that field offices have assumed that their work ended with appointment of nodal officers. Please send a self contained advance reminder w.r.t compliance report due on 15.2.2015 "
Board wants action from Chief Commissioners.
CBDT Office Memorandum NO.F.No.Dir(Hqrs.)/Ch(DT)/25(15)/2014/96, Dated: February 09 2015
Live issues in Litigation
YESTERDAY we brought you some live issues with the CBEC offices, which are under litigation and the Board's view seems to be against the assessee in all these cases. Maybe they are waiting for a valuable case to appeal further.
Today we bring you some more.
1. Whether under section 6 of the Coal Mines Act, the authorities had the power to collect only additional duty over and above excise duty on the excisable goods and therefore, any notification issued under section 6 of the Coal Mines Act would not permit the customs authorities to collect any such additional duty on the imported goods and no such Notification issued under Section 7 of the Coal Mines Act.
2. The issue relates to interpretation of Rule 16 of the Drawback Rules, 1995 that prescribe for recovery of drawback paid erroneously. The limited point involved is whether a normal and reasonable period of limitation would apply for invoking action under Rule 16 in the absence of any limitation period prescribed in the Rule.
3. The dispute with the EOU is, whether the Education Cess as well as Secondary and Higher Education Cess could be levied and collected again on the sum total of Basic Customs Duty, Additional Customs Duty and Education Cess and BCD and ACD under proviso to Section 3(1) of the Central Excise Act or not as regards DTA clearance made by EOU.
4. Whether "Extra Charges" (COCO Charges) collected by the assessee from their customers through their Company Owned Company Operated (COCO) outlet (Who received the good from the depot of the Company as Stock Transfer) is includible in the normal transaction value Rule 7 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 for the Purpose of charging duty of Excise.
5. Whether the Tribunal was right in allowing exemption of NCCD under Notification 108/95 dated 28-08-1995. NCCD is not a duty under section 3 of the Central Excise Act, 1944 or under section 3 of the Additional Duties of Excise Act, 1957 as to get entitlement of exemption under the said notification.
6. Whether the value of goods/ consumables used for providing photography services forms a part of value of taxable service or not.
7. Whether the maintenance of Buffer Stock by the taxpayer under the provisions of the Sugar Development Fund Act, 1985 amounts to rendering taxable service of storage and warehousing, as defined under section 65(102) and 65 (105) (zza).
8. Whether the demand for recovery of duty on CENVAT availed HDPE and paper bags used by the assessee in the packing of cement and which got damaged during the course of packing is sustainable or not as claimed by the assessee for the reason that the damaged bags are to be treated as waste and scrap, which is not required to be cleared on payment of duty.
9. Whether the benefit of Notification No. 12/2003-ST dated 20/06/2003 is admissible to materials such as patches etc., consumed while re-treading of tyres and whether to exclude value of such materials while arriving at the value of taxable service under Maintenance and Repair Services for payment of Service Tax.
10. Whether the cost of battery bought out from the local market and cleared as part of UPSS from Branch offices/sales was liable to included in the assessable value.
11. Whether Pre-Delivery Inspection (PDI) Charges paid to third party inspecting agency by the manufacturer and later reimbursed by the buyer is includible in the assessable value after 01.07.2000 or not.
12. Whether the provisions of Notification No. 10/2002-CE dated 01.03.2002 entitles concessional rate of Central Excise Duty are mandatory or not.
13. Whether freight and Insurance charges are includible in assessable value for payment of duty.
14. Whether while calculating the quantum of clearance of the goods in DTA, 50% of the FOB value of exports i.e. physical exports is to be taken into consideration, without taking into account the value of deemed export or otherwise.
15. Whether the cost of ‘Master Tape' and royalty is to be included in the Assessable value of the Audio Cassettes manufactured and cleared by the party.
16. Whether clearances by 100% EOU to DTA against Foreign Exchange were exempt without any proof that consideration for the goods were obtained in foreign exchange.
17. Whether duty is payable as per Section 4 (3) (d) of the Central Excise Act, 1944, read with Rule 6 of the Central Excise Valuation Rules, 2000, on the sales tax collected, but not actually paid to the Sales Tax Department, and which was allowed to be retained by virtue of the packaged incentive scheme given by the Sales Tax Department.
18. Clearance of physician samples on payment of duty by adopting the transaction value of 110% of cost of production instead of clearing the same on the basis of MRP value in terms of Rule 4 of Central Excise Valuation Rules, 2000.
Aam Aadmi sweeps Delhi - and what a broom - I will end bribery
THE frail former IRS officer Arvind Kejriwal has done the impossible - his team has swept Delhi clean. When a reporter said "this is the first non-corrupt party to come to power", somebody asked "which is the other?".
Kejriwal says his first priority is, "I will end bribery"
Until Tomorrow with more DDT
Have a nice day.
Mail your comments to vijaywrite@tiol.in |
Download PDF
