15 06 2015
Monday
DOUBTS were raised with the DGFT as to whether or not supply of a 'service' by unit(s) located in DTA to SEZ unit(s) is eligible for rewards under SEIS. (Services Exports from India Scheme)
DGFT notes that as per Para 3.08 of the FTP 2015-2020, "Only Services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of this policy shall be eligible" and as per Para 9.51(i), "Service Provider" means a person providing:(i) Supply of a 'service' from India to any other country; (Mode1- Cross border trade).
So, DGFT clarifies that 'supply' of a service to any other country only is eligible for SEIS benefits. Since SEZ is 'Indian Territory' supply of a service to SEZs is not eligible for rewards under SEIS. Supply of a 'service' by units located in DTA to SEZ units was and shall continue to remain ineligible for rewards under SEIS.
DGFT Policy Circular No.01/2015-20, Dated: June 11, 2015
Clearance of goods after expiry of Nominated Agency Certificate - DGFT Clarifies
THE Doubt: whether or not import consignments which started by ship during validity of the Nominated Agency Certificate (NAC) in March, 2015 can be allowed clearance, irrespective of the fact that the consignments arrived in India after 1.04.2015, when the NAC was no longer valid.
DGFT Clarification: if any importer has a valid Nominated Agency Certificate on the date of import i.e date of shipment/dispatch of goods from supplying country, as evidenced by Bills of lading, then such shipments shall be eligible for clearance, regardless of actual date of arrival of the consignment in India.
DGFT Policy Circular No.02/2015-20, Dated: June 12, 2015
Augmenting Tax Collections - CBDT asks CCs to submit suggestions
DURING the Conference of Pr. Chief Commissioners of Income Tax/ Chief Commissioners of Income Tax held on 25th & 26th May 2015, the Minister of State (Finance) had desired that participants furnish three suggestions each on significantly augmenting tax collections.
It seems except from Pr. CCIT-Bihar & Jharkhand, Pr. CCIT-Odisha, CCIT-Indore/Bhopal/Raipur and Pr. CIT (OSD) and DIT (Vig.) North Zone, suggestions in this regard are yet to be received in the Board.
Board wants the participants of the Conference to furnish their three suggestions each expeditiously to the Board.
CBDT Office Memorandum in F.No.401/7/2015-ITCC., Dated: June 12, 2015
Anti-dumping duty on NTCF - Re-imposed - No retro
THE ADD on import of Nylon Tyre Cord Fabric originating in or exported from the People's Republic of China was originally imposed by notification No. 72/2004-Customs, dated the 26th July 2004 provisionally and confirmed by Notification No. 36/2005-Cus, dated 27.04.2005. (The provisional notification expired on 25th January 2005 and was retrospectively validated three months later). The validated definitive notification which would have expired on 26.07.2009 was rescinded by notification 42/2009-Cus.dated 29th April, 2009. Inasmuch as the Government re-imposed the anti-dumping duty much before its expiry by a fresh notification 41/2009-Cus dated 29th April, 2009.
This notification 41/2009-Cus dated 29th April, 2009 lost steam after five years on 28th April, 2014. Perhaps everyone in the Board was too busy to notice this. So, after more than a fortnight, an amending notification 21/2014, dated 16.05.2014 was issued which simply extended the validity till the 28th day of April, 2015.
On 28th April, 2015, obviously they forgot again and now they have re-imposed the duty, but thankfully there is no retrospective imposition.
Maybe a new welcome culture has started in the Board of not imposing the tax retrospectively. Let us hope it continues.
Notification No.30/2015-Customs (ADD)., Dated: June 12, 2015
India loses WCO Election
THE 125th Annual Sessions of the World Customs Organization's Council - the Organization's highest decision-making body - took place in Brussels from 11 to 13 June 2015.
Elections to three posts of Directors were held during the sessions. The Indian Customs lost to Brazil.
The Chinese Customs campaigned vigorously for its candidate Liu Ping who won. Liu started his career as a Superintendent of Customs and is currently the Chairperson of WCO Technical Committee on Rules of Origin. His minister wrote letters to all the governments seeking support for him. Even the US Customs Commissioner released a video seeking support for the US candidate Anna Hinojosa. She also released a video explaining her vision.
India seems to have maintained absolute silence about its candidate Sandeep Bhatnagar.
Ten years ago India lost the election when the then CESTAT Member Chittaranjan Satpathy was our official candidate and five years before that AM Prasad was defeated.
Sudan wins WCO Photo Competition 2015
SUDAN Customs administration "Border ahead":
The photo shows goods trucks ready to cross the border between Sudan and Egypt. Since April 2015, the Askeit border post is the first and only border crossing point in Sudan benefiting from a Single Window environment, with all relevant authorities gathered under one roof. The volume of trade exchange between Sudan and Egypt through this post amounts to about 185 million US dollars per year, a figure which is expected to increase twofold, or even threefold, over the next few years .
Prosecution of Central Excise Assistant Commissioner under IPC and PC Act - Validity of sanction to prosecute - Supreme Court orders trial
IN 2004, the CBI registered a case against a Commissioner and an Assistant Commissioner of Central Excise for demanding and accepting a bribe. The CBI submitted a report recommending launching of prosecution against both the Officers under different provisions of the Indian Penal Code, 1860 (IPC) as well as the Prevention of Corruption Act, 1988.(PC Act). Sanction for prosecution of the Commissioner was received in 2007 and the CBI filed a complaint in the Trial Court showing the Assistant Commissioner also as an accused. The trial court discharged the Assistant Commissioner as, admittedly, at that point of time there was no sanction accorded for his prosecution.
Subsequently, the matter concerning sanction for prosecution of the Assistant Commissioner was taken up and eventually sanction was accorded in the File by the Finance Minister on 8th August, 2009 on the basis of which a formal order granting sanction was issued on 12th August, 2009. It also appears that on 14th September, 2009 a Corrigendum was issued to effect certain corrections in the sanction order dated 12th August, 2009 whereafter another sanction order (revised sanction) was issued on 21st October, 2009.
The Delhi High Court on consideration of the matter took the view that the grant of sanction in the instant case by the Competent Authority was at the behest of the CBI and the same does not disclose a fair and independent application of mind. The High Court also took the view that the subsequent Sanction Order dated 21st October, 2009 was without the approval of the Sanctioning Authority. On these two grounds, the High Court thought it proper to interdict the order dated 21st October, 2009 granting sanction for prosecution of the Assistant Commissioner.
The CBI is in appeal before the Supreme Court.
The Supreme Court observed that the validity of a Sanction Order, if one exists, has to be tested on the touchstone of the prejudice to the accused which is essentially a question of fact and, therefore, should be left to be determined in the course of the trial and not in the exercise of jurisdiction either under Section 482 of the Code of Criminal Procedure, 1973 or in a proceeding under Article 226/227 of the Constitution. High Court was not at all justified in passing the impugned order and in interfering with the sanction order.
High Court order is set aside and trial ordered.
The trial court was directed to complete the trial within an outer limit of 12 months.
2015-TIOL-138-SC-MISC
Taxpayer has a right to Know who will be a Judge - AG
THE Attorney General told the Constitution Bench of the Supreme Court hearing the National Judicial Appointments Commission case, "A taxpayer may say that I pay your salaries, I have a right to know who is going to be a judge."
He further told the court:
- A judge who has given not more than 50 judgments in 15 years during his stint with various high courts can't be elevated to the top court.
- It is collegium that gave him laurels after laurels and brought him here (Supreme Court) and sent him to NHRC.
- It is a case of nepotism.
- The shroud of mystery that the collegium system had can only be lifted by the NJAC.
GST - Promise of Article 301
THE fundamental objective of GST is to redeem the promise of Article 301 in Part XIII of the Constitution of India: “Subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free., Mr. P. Chidambaram wrote in the Indian Express yesterday.
But reality is different: He added, "The history of inter-state trade and commerce in India is a sordid story of discriminatory taxes, undue preferences, trade and non-trade barriers, entry tax, octroi, and check posts. A newcomer would have thought that India was not one republic but a continent that consisted of many independent republics. The Central government and the state governments used their powers of taxation to the hilt. They may have had a good reason to do so, but they failed to see that fewer and lower taxes would actually yield more revenue than numerous stiff taxes."
Yoga Day
I got this mail from Mr. BB Prasad, Retired Chief Commissioner of Customs:
 GOI has ambitious plans to celebrate first IYD, which is on 21st June. However, I am not aware whether CBEC has issued any guidelines for observing IYD in the field formations. If not, the CBEC ought to take urgent steps. I believe, the objective, in line with Govt emphasis, is that the awareness has to spread and flow down. Its base must widen. Yoga camps can be organized in offices at different levels: Ranges to the Commissionerate (hqr). Experts can be invited to teach Yoga and demonstrate as well. I am sure there are many departmental staff who are teachers in their own right. Internal talent is no less useful. Furthermore, such staff will be readily available for future demonstration. They may be paid suitable honorarium.
Following extracts from an article are relevant:
"Spiritual quotient is human beings intelligence or capacity to link them closer to spiritual characteristics and manifestations such as compassion, meaning and purpose, consciousness (self awareness), vision and values. Spiritual quotient motivates the people to balance their work and life. An employee with high spiritual quotient might serve in a selfless way. He imbibes values essential and practice it in day to day life, and encourages others to follow it. Spiritual quotient in an individual will help him to look beyond himself and support others. Individuals with spiritual quotient create a conducive work environment".
"In this context top level executives trained in the area of spirituality, can have the spread effect on the organization, further at different levels and policy frame works will have to be moulded with spiritual values for the desired results. This creates an enabling atmosphere for workplace spirituality"
I would request you to post the above in TIOL for the desired result.
Mr. Prasad used to teach Yoga in his office while in service. A lady Chief Commissioner, who was very beautiful at 59, told me yoga was the secret of her beauty and youthful looks.
Until Tomorrow with more DDT
Have a nice day.
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