AS per Section 7 of the Customs Act, 1962, the Board may, by notification in the Official Gazette, appoint -

(a) the ports and airports which alone shall be customs ports or customs airports for the unloading of imported goods and the loading of export goods or any class of such goods;

(aa) the places which alone shall be inland container depots for the unloading of imported goods and the loading of export goods or any class of such goods;

(b) the places which alone shall be land customs stations for the clearance of goods imported or to be exported by land or inland water or any class of such goods;

(c) the routes by which alone goods or any class of goods specified in the notification may pass by land or inland water into or out of India, or to or from any land customs station from or to any land frontier;

(d) the ports which alone shall be coastal ports for the carrying on of trade in coastal goods or any class of such goods with all or any specified ports in India.

By Notification No. 12/97 Cus (NT) dated 02.04.1997, the Board has notified several places in various States as ICDs. By the latest amendment to this notification, Tondiarpet (TNPM), Chennai, is added to the list of ICDs for Unloading of imported goods and the loading of export goods .

Notification No. 8/2012 - Cus., (NT.), Dated: January 30, 2012

Exchange Rates for February Notified

CBEC has notified the Exchange Rates for imported goods and export goods for February 2012.

Notification No. 09/2012-Cus.,(N.T.), Dated: January 30, 2012

Implementation of The Pneumatic Tyres and Tubes for Automotive Vehicles (Quality Control) Order 2009 – CBEC Clarifies

IN continuation of CBEC instructions in F.No.528/109/2011 – STO (TU) dated 29.11.2011 and 15.12.2011, Board clarifies that the following types of tyres are not covered under the Quality Control Order, 2009

(i) Commercial Vehicle tyres – Certain types of tyres identified by Speed Symbols corresponding to speed below 80 km/h marked with speed Symbols as A (A1 to A8), B, C, D or E.

(ii) Off The Road Tyres – Certain types of tyres used for Off The Road (OTR) vehicles carrying Tyres Tread Code marking such as C (C1, C2), E (E1 to E4, E7), G(G1 to G4), L(L2 to L5, L3S to L5S), IND or NHS.

(iii) Run Flat Tyres – Tyres marked RF or similar marking and carrying the Symbol

(iv) Collapsible Mini Tyres

Other than exempted pneumatic tyres, no person shall by himself or through any person on his behalf, import, store for sale, sell or distribute imported pneumatic tyres (which include pneumatic tubes) that do not conform to the specified standards and that do not bear the BIS Standard Mark.

CBEC F.No. 528/109/2011-STO (TU)., Dated: January 30, 2012

Instructions governing money changing activities

IN view of the recent measures adopted to provide more flexibility to the Authorised Persons in selecting the location for their branches, it has now been decided to remove the criteria relating to increase in outreach and locational advantage while considering the applications for issuance of fresh licenses for Full Fledged Money Changers (FFMC).

AP (DIR Series) Circular No. 71/RBI., Dated: January 30, 2012

Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts

WITH a view to give more operational leeway to the AD Category-I banks, it has been decided to dispense with the requirement of prior approval of the Reserve Bank for opening and maintaining each Rupee Vostro account in India of non-resident Exchange Houses in connection with the Rupee Drawing Arrangements (RDAs) that banks enter into with them. Accordingly, AD Category-I banks may take approval of the Reserve Bank the first time they enter into the above arrangement with non-resident Exchange Houses from Gulf countries, Hong Kong, Singapore and Malaysia. Subsequently, they may enter into RDAs, subject to the prescribed guidelines and inform the Reserve Bank immediately.

AP (DIR Series) Circular No. 72/RBI., Dated: January 30, 2012

Convention on Mutual Administrative Assistance in tax matters

ON 26th January 2012, India has signed a Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The Convention was signed by Sanjay Kumar Mishra, Joint Secretary, Foreign Tax & Tax Research Division, CBDT in the presence of Deputy Secretary-General of OECD Mr. Rintaro Tamaki.

By signing the Convention, India and the other 31 signatories encourage more countries to join, sending a strong signal that countries are acting together to ensure that individuals and multinational enterprises pay the right amount of tax, at the right time and in the right place. Many more countries are expected to sign the Convention in future. This provides for a wider network of countries co-operating in Exchange of Information, Assistance in Tax Collection etc.

This instrument is multilateral and a single legal basis for multi-country cooperation as against the DTAAs/TIEAs which are bilateral. It provides for an extensive network and there will be consistent application of provisions leaving limited scope for deviation.

The information received under the Convention can also be used for other purposes besides those related to tax co-operation, for example to counter money laundering with the approval of the supplying state.

Selection for Members in Settlement Commission

THE Revenue Department has invited applications for the post of Members in the Customs & Central Excise Settlement Commission. Only serving Chief Commissioners are eligible to apply. Last date for application is 23 February 2012.

MF DOR F.No.A.12026/2/2012-Ad.I , Dated: January 24, 2012

International Customs Day – In India on 02.02.2012

“THE Customs Act, 1962 was notified on 13th December 1962 and came into force with effect from 1st February 1963. Therefore, the 50th year of Customs Act begins on 2nd February 2012. Accordingly, and in consideration of the significant role that Customs has been playing in nation building through revenue collection, trade facilitation and safeguarding the economic integrity of the country, it is proposed to celebrate the above milestone, starting from 2nd February 2012 and culminating on 1st February 2013”, states a letter from the International Custom Division of the CBEC. The letter further says that the International Customs Day 2012 celebration, will now be celebrated in India on 02.02.2012

CBEC (ICD) F.No. 21000/9/2011-Cus/ICD , Dated: January 06, 2012

Yet another IAS Officer arrested by CBI

YESTERDAY morning, he was the Principal Secretary, Home Ministry in the Government of Andhra Pradesh – by afternoon, he was arrested and produced before a CBI court and he spent last night as an accused in CBI custody. If he does not get a bail tomorrow, he will have to be in a jail for sometime – a jail, which was under his control as Home Secretary. This is the sad story of BP Acharya, a 1983 batch IAS officer. The CBI registered a case against him under Sections 120B, 420, 409, 420, 477A of Indian Penal Code and Sec. 13(2), 13(1) (c) & (d) of the Prevention of Corruption Act on the allegation of execution of a real estate project at Manikonda in Hyderabad with the connivance of certain public servants of the Govt. of Andhra Pradesh.

The accused IAS officer was posted as Vice Chairman & Managing Director/CMD of Andhra Pradesh Industrial Infrastructure Corporation (APIIC), Hyderabad during the period 2005-2009 and the integrated project was being executed by the Hyderabad based private Real Estate Company under his supervision.

Y. Srilakshmi, another senior IAS officer of the State is already in jail in another case.

It's Now Fuel Laundering

WE know money laundering, but fuel laundering? Three fuel-laundering plants discovered last week demonstrated the risks fuel fraud present to the public. HM Revenue & Customs (HMRC) officers investigated a building destroyed by fire, unsafe fuel tanks transported on roads and half a tonne of dangerous waste indiscriminately dumped.

Graeme Anderson, Assistant Director Specialist Investigations, HMRC said:

“Before buying cheap fuel, motorists need to consider the real costs of laundered fuel. Safety features for handling any type of fuel are there for good reasons. Buying illicit fuel not only funds organised crime but supports and encourages these dangerous activities within our communities. The only winners are the criminals, profiting at the expense of honest businesses and costing us all, as taxpayers, millions of pounds every year.”

Laundered fuel is red (or green) diesel, which has been filtered through chemicals or acids to remove the government marker. The chemicals and acids remain in the fuel and damage fuel pumps in diesel cars.

Red diesel is marked gas oil or a rebated fuel for use in agricultural machinery and not for use in road vehicles. Green diesel is the Republic of Ireland equivalent of the UK's red diesel.

Jurisprudentiol – Wednesday's cases

Customs

Detention of imported goods without assessment and without issue of Notice - Strictures by High Court - Excuse by department for not issuing notice is just like excuse given by a person who does not know dancing, but who blames stage for his failure to perform: HC

THE High Court came down heavily on the department and remarked that the department did not wake up from slumber even after wake up call by petitioner. Also, the High Court observed that the excuse given by the respondents for not issuing a notice under Section 124(a) is just like the excuse given by a person who does not know dancing, but who blames the stage for his failure to perform. The High Court ordered the goods to be released within one week and further directed the department to issue notice in two weeks.

Income Tax

Whether when NRI's properties remained vacant during year, it is to be assessed as NIL or ALV is to be worked out as per deeming provisions of Sec 23(1)(a) - ruled in favour of assessee by ITAT

THE assessee is a non-resident Indian owning eight properties in India. The assessee had shown income from house property and offered annual letting value for taxation from four properties, claimed an exemption on one property for self-occupation and offered three properties in Mumbai for NIL income as these had remained vacant and could not be let out during the year as these were inhabitable. All these three Mumbai properties had yielded income and been taxed in earlier assessment years. The assessee had filed a digital return of income declaring taxable income. The return was processed under section 143(1) and later selected for scrutiny.

Central Excise

Taking of suo moto credit - As appeal against LB decision in BDH Industries Ltd. has been admitted by the Bombay High Court balance of convenience lies in applicant's favour - Stay granted and pre-deposit waived: CESTAT

THE issue of whether an assessee is entitled to take suo moto credit without sanction by the proper officer or not is pending before the Bombay High Court in the case of BDH Industries Ltd. vs. Commissioner and hence the applicant has made out a case for waiver.

See our columns Tomorrow for the judgements

Until Tomorrow with more DDT

Have a Nice Day.