Bizsol June 2012 · Flex Film, falling under Chapter 39 of the First Schedule to the Customs Tariff...

• ISSUE - IX • VOLUME - VII • JUNE - 2012

UPDATE

www.bizsolindia.com

1

June - 2 012

It is that time of the year when the IPL widows

reach for the remote to change channels to mundane

soaps as is their normal wont. For them it is now

time for analysis of the game of cricket or whatever

left of it. But then, is IPL all about cricket? The

answer will depend on whom you ask. Like in the

past after every season the experts would be trying

their best to define IPL. It is the story of the five

blind men trying to describe an elephant. Till the other

day it was all about Cricket, Entertainment and

Business. However, the fifth season of IPL seems

to have reinvented itself once again. All these years

there was something missing in the event. The

recipe was there sans the spices. IPL 5 has added

the condiments in good measure. If Mamta Banerjee

added a political touch to the game by owning and

celebrating the Kolkata team with just four Bengali

players in the side, there was Kirti Azad trying to

dive into troubled waters to resurrect himself in the

name of maintaining the glory of cricket! Who says

IPL is about cricket? It is akin to a derivative product

in the capital market with some underlying asset

which in this case happens to be cricket. In fact

Kirti Azad should not have raised any objection to

IPL as it provides livelihood for a motley crowd of

old players, officials and their cronies who have

suddenly found a new source of annual income. In

a way IPL 5 was a watershed in the history of this

event. This season the brand underwent a sea

change. If politics was the spice, sleaze was the

sauce. The three Ms – match-fixing, money

laundering and molestation were all there. Who is

complaining? BCCI is making money, the team

owners are having a ball and the cheer leaders are

E D I T O R I A L

dancing all the way to the bank. As the saying goes,

if you cannot cure it, endure it – a minor change –

enjoy it. Whether you like it or not IPL is here to

stay. The only one who could be complaining is

BCCI. They are bound to complain to ICC against

this man called Chris Gayle for his audacity. He is

treating cricket like a game!

When everyone thought that our Prime Minister

was incapable of uttering a word here comes the

breaking news that he not only broke his silence but

also betrayed an emotion called anger. When Team

Anna found fault with him for the corruption in the

ministry of coal under his watch he returned fire by

promising to quit politics if his involvement is proved

in any corrupt deal. The PM perhaps forgot that you

have to be in politics to quit politics. But then, whom

are you kidding? At this ripe old age when people

are already asking him why he is just warming the

chair and little else what is the great sacrifice he is

making in quitting. It is time that someone reminded

him that if he quits he would be applauded for the

contribution he is making to bring the country out of

a state of suspended animation. As someone aptly

put it, his is the world of the undead. Finally team

Anna has managed to contr ibute something

constructive.

History is replete with inane and at times

mundane happenings turning out to be major events

and thus becomes tipping points. Here is one more.

A humble, probably stinking toilet in the Planning

Commission has made news. A whopping Rs. 35

lakhs has been spent on the renovation of the toilets

in the office of this white elephant. People are aghast

that such a huge sum of money has been spent on

a government department. I see things slightly

differently. Look at it. This information was the result

of the enactment of the Right to Information Act. In

the good old days you would not have known that

there existed a toilet in the office of the Planning

Commission. Thanks to this Act today we get a

glimpse of government functioning. Give the devil

2

June - 2 012

its due. Probably the Act saw the light of day

because of Dr. Manmohan Singh. Today this Act has

become a tool to unearth the wrong doings in the

government departments. Let us hope one day it

becomes a deterrent to misgovernance. Thanks to

the toilet episode people have star ted asking

questions about the Planning Commission itself!

What India needs is an Execution Commission and

not a Planning Commission, so goes the argument.

Be that as it may, it appears that people have started

protesting the profligacy of the ruling elite, especially

since they perceive that they are at the rough end of

the stick. Their patience is wearing thin and they

are in no mood to put up with the inequalities and

inequities in the system. The writing is on the wall.

I t would only be a shor t whi le before the

establishment realises that the phrase ‘tax payers’

money’ have ring of truth. In this season of criticisms

against the Planning Commission here is another

one. The Commission is filled with people who have

no grass root support and thus no stake in their fate.

This may be a bit unfair to the economists serving

on the Commission. Then the same logic could apply

to the professional managers in the corporate sector.

They, as well as the economists in the Planning

Commission bring with them their professional

expertise. When they have no personal stake of

any kind they still do bring in what is popularly known

as ‘detached excellence’ in their field of activity. In

our haste to condemn the Planning Commission let

us not lose our objectivity, lest it would be a case of

throwing out the baby with the bathwater.

As we go to the press there is this strike of Air

India employees continuing with no glimmer of hope

in the horizon. The Minister of Civil Aviation has gone

to the extent of threatening to privatise the airline.

Years ago when Dr. Datta Samant led a strike of the

mill workers in Bombay (now Mumbai), it looked as

if everyone lost out in the strife. That was not to be.

When the strike petered out after a couple of years

it unlocked the value of real estate of the mills to the

benefit of the owners and the workmen still continue

to struggle when night clubs, malls and casinos do

brisk business on the mill land. Perhaps a similar

fate awaits the national carrier. It is pretty clear that

the government cannot run any business efficiently.

The reason is that they conduct businesses of the

people by the bureaucrats and for themselves. There

is a distinct possibility of the people of this county

benefiting from the confrontation. After all it is tax

payers’ money!

While discussing contemporary developments,

it would be an injustice if a mention is not made of

the hugely popular TV serial “Sathyameva Jayathe”.

For someone interested in the intel l igence

associated with emotions the content as well as the

form of the serial provides rare insights on the power

and use of emotions. The serial is popular not

because of the charisma of Aamir Khan, the anchor.

It is not also because of Reliance Foundation

bankrolling the slick project backed up with huge ad-

spend. It is popular because it deals with feelings of

real people in real time notwithstanding some

orchestrated display of emotions here and there.

Feelings are real and it matters. Feelings are who

you are. Moreover, at least in the healthcare

associated issues it has started a national dialogue

which can only result in beneficial outcomes, for the

serial has succeeded at tugging at the collective

conscience of the nation.

Thank you

Venkat R Venkitachalam

n n n

3

June - 2 012

l Anti-dumping duty on imports of ‘White Cement’,falling under sub-heading 2523 21 of the FirstSchedule to the Customs tariff Act 1975, originatingin, or exported from, UAE and Iran, had beenextended for a further period of one year and it willbe effective till 11th Apr 2013. [Notification No.

28/2012-CUS (ADD) Dated 21.05.2012.]

l Anti-dumping duty on imports of Zink Oxide, fallingunder heading 2817 or subheading 3812 30 of theFirst Schedule to the Customs Tariff Act 1975,originating in or exported from China PR, had beenextended for a further period of one year and it willbe effective till 6th May 2013. [Notification No. 27/

2012-CUS (ADD) Dated 18.05.2012.]

l Six Day Light Curing Press for curing bi-cycletyres, originating in or exported from China PR,had been excluded from the ambit and scope ofthe anti-dumping duty imposed vide notification No.01/2010-Customs, dated the 8th January, 2010.

[Notification No. 26/2012-CUS (ADD) Dated

14.05.2012.]

l Anti-dumping duty on imports of Dry Cell Batteries,falling under heading 8506 of the First Scheduleto the Customs Tariff Act, 1975, originating in orexported from China PR, had been extended fora further period of one year and it will be effectivetill 12th Apr 2013. [Notification No. 25/2012-CUS

(ADD) Dated 14.05.2012.]

l Definitive Anti-Dumping duty on the imports of PVCFlex Film, falling under Chapter 39 of the FirstSchedule to the Customs Tariff Act, 1975,originating in, or exported from, the People’sRepublic of China into India has been imposed.Further M/s Haining Tianfu Wrap Knitting Co Ltd,of People’s Republic of China ( Producer) and M/s Manna, of Korea RP (Exporter) have requestedfor review in terms of rule 22 of the Customs Tariff

CUSTOMS

Anti Dumping

(Identification, Assessment and Collection of Anti-dumping Duty on Dumped Ar ticles and forDetermination of Injury) Rules, 1995, in respect ofexports of the subject goods made by them, andthe designated authority, has recommendedprovisional assessment of all exports of thesubject goods made by the above stated party tillthe completion of the review by it. [Notification

No. 24/2012-CUS (ADD) Dated 14.05.2012.]

Safeguard Duty

l No new notification..!!

Tariffl “Compression-type combined refrigerator-

freezers, fitted with separate external doors,household type”, falling under the heading84181090, of the First Schedule to the CustomsTariff Act, 1975 is exempted if imported fromThailand. [Notification NO. 38/2012-CUS Dated

29.05.2012]

l Sea Por t KARAIKAL (Union territory ofPuducherry) is included in the list of ports permittedfor exports and imports under Export PromotionSchemes. [Notification NO. 37/2012-CUS Dated

24.05.2012]

l The Customs duty rate has been reduced to 6.67%for all Goods, falling under the heading 96190010,of the First Schedule to the Customs Tariff Act,1975 if imported from Singapore. [Notification NO.

36/2012-CUS Dated 14.05.2012]

l Effective rate of duty if imported from Singapore

has been revised in accordance with India-Singapore (CECA) treaty..[Notification NO. 36/

2012-CUS, 35/2012-CUS and 34/2012-CUS all

Dated 14.05.2012]

l Exemption of Special Additional Duty (SAD) wasgranted to the importers vide notification no. 21/2012CUS. Now for claiming such exemption

following conditions have been imposed.

4

June - 2 012

(i) the State of destination namely the Statewhere the goods are intended to be takenimmediately after importation whether forsale or for distribution on stock transferbasis; and

(ii) his VAT (Value Added Tax) registration number

or Sales Tax registration number or Central

Sales Tax registration number, as the case

may be, in the said State.;

Moreover, exemption of SAD will be also available

to Solar Thermal Power instead ‘Thermal

Power’.[Notification NO. 32/2012-CUS Dated

08.05.2012]

l In the exemption notification 12/2012-CUS Dated 17th Mar 2012, the following amendments have been done.

187 2905 All 20 - - 2905 All 20 - - Chapter

4300 Good 4300 40 items

2905 2905 are

4400 4400 removed

3301 3301 from the

3501 3501 exemption

3502, 3502 list

3503 3503 Chapter

3504 3504 38 items

3505 3505 are made

3809 3809 more

1000 1000 specific

3823 3823 for the

11, 11 11 exemption

3823 3823

1200 11 12

38231 3823

300 11 19

3823

19 00

38246

0,

4001

2100

4001

2200

4001

29

Before Amendment After Amendment

S. No. Chapter Description Stan- Addi- Condi- Chapter Description Stan- Addi- Condi- Remarks

of the or Heading of dard tional tion or heading of dard tional tion

Noti- or sub- goods rate duty No. or sub- goods rate duty No.

fication heading rate heading rate

or tariff or tariff

item item

234 39,72 The Nil - 5 39,72 The

and 81 following and 81 following

goods, for goods, for

the manu- the manu-

facture of facture of

orthopaedic orthopaedic

5

June - 2 012

implants implants

falling falling

under sub- under sub-

heading heading

9021 10, 9021 10,

namely:- namely:-

i) Special i) Special Nil Nil 5

grade grade

stainless stainless

steel, steel,

ii) Titanium ii) Titanium Nil Nil 5

alloys, alloys,

iii) Cobalt- iii) Cobalt- Nil Nil 5

chrome chrome

alloys, alloys,

iv) High- iv) High- Nil Nil 5

density density

polyethylene polyethylene

260 47 Pulp of Nil - 5 & 47 Pulp of

wood or of 25 wood or of

other fibrous other fibrous

cellulosic cellulosic

(excluding (excluding

rayon rayon

grade grade

wood wood

pulp) pulp) when

used for

the manu-

facture of

the following,

namely:-

i)

Newsprint, Nil - 5

& 25

ii) paper

and paper

board, Nil - 5

iii) adult

diapers Nil - 5

300 64 or The following 64 or The following Exemption

any goods for any goods for benefit is

other use in the other use in the increased

Chapter leather Chapter leather

industry, industry,

Before Amendment After Amendment





or tariff or tariff

item item

6

June - 2 012

namely:- namely:-

1) Parts, 20% - 1) parts 20% - -

consumables consumables

and other and other

items items

specified specified

in List 8 in List 8

2) Other 20% - 31 2) Other 10 - 31

parts, parts,

consumables consumables

and items and items

specified specified

in List 9 in List 9

319 28, 29 Goods - Nil 5 These

38, 39 specified goods are

70, 74, at S. Nos. covered

76 7 and 18 even in

of the IGCRD,

notification still the

of India in Govt has

the Ministry covered in

of Finance this exem-

(Department ption

of Revenue), notification

No. 25/1999

Customs,

dated the 28th

February, 1999

(G.S.R. 161 E)

432 8529 LCD Nil - - 8529 LCD Nil - - Now LCD

(Liquid (Liquid and LED

crystal crystal of 19

display) display) inches

and LED and LED and above

(Light (Light will also

Emitting Emitting be

Diode) TV Diode) TV available

Panels of Panels of for

20 inches 19 inches exemption

and above and above

123 27011 steam Nil 1% - 27011 Steam Nil 1% - The sunset

920 Coal 920 Coal clause upto

1.04.2014

has been

removed by

deleting its

proviso.





or tariff or tariff

item item

[Notification NO. 31/2012-CUS Dated 08.05.2012]

7

June - 2 012

l Exemption on the following goods imported by

Defence and Internal Security Forces has been

removed and will be liable for duty “(i) Hand held

Metal detector (ii) Postal Bomb detector (iii)

Explosive Container (iv) Portable or Fixed Door

frame Metal detector, (v) Deep search Metal or

Mine detector, (vi) Mine impactor, (vii) Mine

prodder (non-magnetic) and (viii) Under - Vehicle

search Mirrors” [Notification NO. 30/2012-CUS

Dated 08.05.2012]

Non-Tariff

l Tariff value for Brass Scrap (all grades), Poppy

Seeds, Gold & Silver has been revised.

[Notification No. 47/2012-CUS (N.T.) Dated

31.05.2012 & Notification No. 42/2012-CUS

(N.T.) Dated 15.05.2012]

l The rates of All Industry rate of Drawback for

“Articles of jewellery and parts thereof made of

gold”, “Articles of jewellery and parts thereof made

of silver” and “Others” of the CETH 7113 has been

amended as “Rs.100.70 per gram of net gold

content (0.995 or more purity) in the jewellery”,

“Rs. 2590.80 per Kg of net silver content (0.999

purity) in the jewellery” and “NIL” respectively.

[Notification 46/2012-CUS (N.T.) Dated

24.05.2012]

l Provisions of The Handling of Cargo in Customs

Areas Regulation 2009 has been amended

[Notification 43/2012-CUS (N.T.) Dated

15.05.2012]

l Kattupalli in the State of Tamil Nadu has been

notified as Customs Port for unloading of Imported

Goods in the container for trans-shipment and

loading of goods trans-shipped in containers for

export. [Notification 41/2012-CUS (N.T.) Dated

11.05.2012]

Circularsl Permitting import of original / genuine products (not

counterfeit or pirated) which are sold / acquired

legally abroad and imported into the country, by

persons other than the intellectual property right

holder without permission / authorisation of the IPR

holder, does not relate to all infringements rights

of the IPR holder under the IPR (Imported Goods)

Enforcement Rules, 2007 [Circular NO. 13/2012-

CUS Dated 08.05.2012]

Instructions

l The CBEC has instructed the Field formations to

take assistance of the concerned registration

authorities, expert views and test results (based

on the nature of the product), as is done in case

of implementation of many other allied laws where

the final determination is made by Customs in

consultation with the concerned authorities/

agencies and experts help, in determination of

IPR infringements including that of patents,

designs and Geographical Indications of imported

goods. [Instruction No. 26000/1/2012-OSD(ICD)

Dated 27th Mar 2012]

CENTRAL EXCISE

Tariffl Now, no certificate from the Deputy Secretary to

the Government of India, shall be insisted before

the clearances goods from factory and CEO of

the project has to give undertaking to the

jurisdictional Deputy /Assistant Commissioner for

initial setting up of a solar power generation project

or facility.[Notification No. 26/2012-CE Dated

08.05.2012]

l Value Limit of hawai chappal has been enhanced

from Rs. 250 to Rs. 500 for claiming exemption

under Notification 10/1996 CE as

amended.[Notification No. 25/2012-CE Dated

08.05.2012]

8

June - 2 012

Particulars New Rate

all goods falling under Chapter 2710 12 11, 2710 12 12, 2710 12 13,

2710 12 20, 2710 12 90 & 2710 20 00 other than Petrol 14%

Eye makeup preparations under chapter 3304 20 00 and Sindur, Bindi,

Kumkum falling under 3304 99 40. NIL

Polyester staple fibre or polyester filament yarn, manufactured from plastic

scrap or plastic waste including waste polyethylene terephthalate bottles NIL

hawai chappal under chapter 64 MRP not exceeding more than Rs. 500 NIL

Motor chassis for vehicles of heading 8704 (petrol driven) fitted with engines,

whether or not with cab under chapter heading 8706 00 49 and all goods falling

under Chapter heading 8706 00 29, 8706 00 42 14%

Articles of jewellery falling under Chapter 7113, NIL

Parts of railway or tramway locomotives or rolling stock under Chapter 8607,

if intended for used by the department of Central Government NIL

[Notification NO. 24/2012-CE Dated 08.05.2012] [Notification NO. 23/2012-CE Dated 08.05.2012]

Non-Tariff

68 Window room air-conditioners “All goods except 25 35

and split air conditioners of 841520”

capacity upto 3 tonnes

69 8418 84181090, 84182100, 35 35

Refrigerators 84182900, 84183090,

84186920

71 8422 11 00 or No Change 30 35

8422 19 00

Dish washing machines

87 Telephone sets including “Telephones sets including 35 No

telephones with cordless telephones with cordless Change

handsets; video phones; handsets and for cellular

networks or for other wireless

networks; videophones”

90 8519 All goods 35 No

All goods, other than MP3 Change

Player or MPEG 4 Player

Sr No. of Existing Description of Amendment in Existing New rate

Notification goods & Chapter heading Description or rate of of

No. 49/2008 - Chapter heading as abatement abatement

Central Excise the case may be

(N.T.) dated

24.09.2008

9

June - 2 012

91 8521 All goods 35 No

All goods, other than MP3 Change

Player or MPEG 4 Player

92 85 Entry omitted 30 35

MP3 Player or MPEG 4

Player

93 8523 “All goods except 85232100, 35 No

Unrecorded audio cassettes, 85232960 to 85232990, Change

recorded or unrecorded video 85234120 to 85234150,

cassettes, recorded or unrecorded 85234930, 85234950 to

magnetic discs 85235210, 852359, 85238020,

85238030 and 85238060”

94 8527 “All goods except 85279912, 30 35

Pagers 85279919 and 85279990”

95 & 96 8527

Radio sets including transistors sets, having the facility of receiving radio signals

and converting the same into audio output with no other additional facility like sound

recording or reproducing or clock in the same housing or attached to it Reception

apparatus for radio-broadcasting, whether or not combined, in the same housing, with

sound recording or reproducing apparatus or a clock (other than goods covered at S.

No. 95)

97 8528 “All goods” 30 35

Television receivers (including video

projectors) whether or not incorpo-

rating radio broadcast receivers or

sound or video recording or

reproducing apparatus

98 & 99 8528

Monitors of a kind solely or principally used in an automatically data processing

machine 8528 71 00 Set top boxes for television sets

101 8539 “All goods except lamps 35 No

The following goods, other than for automobiles” Change

lamps for automobiles, Namely:-

i) Compact Fluorescent Lamp (CFL)

falling under tariff item 8539 3110

ii) All other goods





(N.T.) dated

24.09.2008

Entry

Omitted

Entry

Omitted

10

June - 2 012

101 A New entry Chapter 84 to 85 New 35

Goods capable of performing entry

two or more functions of items

specified at Sl. No. 67 to 101

and 140 to 142

143 8523

Recorded audio compact discs (CDs); Recorded video compact discs (VCDs);

Recorded digital video discs (DVDs) & Recorded audio cassettes





(N.T.) dated

24.09.2008

Entry

Omitted

l When the common inputs are utilised in exempted

goods and excisable goods the exclusionprovided under Rule 6(6) of Cenvat Credit Rules,2004 has been amended so as to include suppliesmade for setting up of solar power generationprojects or facilities”; and also wherevernotification No. 06/2006 CE appears notification12/2012 CE should be read. [Notification No. 25/

2012-CE(NT) Dated 08.05.2012]

Circular

l CBEC clarified CENVAT Credit is available in

respect of parts of Boiler, the same is notadmissible in respect of the structural componentsused for laying of foundation or making ofstructures for support of capital goods/ Boiler. Thisis in line with Supreme Court Decision Circular

No. 966/09/2012-CX dated 18.05.2012 ]

Instructions

l No new Instructions

SERVICE TAX

Notifications

l Service Tax (Determination of Value) Rules, 2006

has been amended and shall be applicable w.e.f.1st July, 2012, so as to change the valuation to bearrived in the Works Contract Service / Activityand also certain provisions where earlier definition

under section 65(105) were mentioned thosereferences have been omitted on account ofamendment in the Finance Act 2012. Moreovervaluation method when supply of food or any otherarticle of human consumption or any drink in arestaurant or as outdoor catering has beenspecified.The amount realized as demurrage or by any othername whatever called for the provision of a servicebeyond the period originally contracted or in anyother manner relatable to the provision of servicewill be included in the taxable value of the service,Whereas, following will not be included in thetaxable value: subsidies and grants disbursed bythe Government, not directly affecting the value ofserviceInterest on delayed payment of any considerationfor the provision of services or sale of property,whether moveable or immoveableAccidental damages due to unforeseen actions notrelatable to the provision of service..Moreover,Rule 7 of the said Rules has been omitted onaccount of Provisions of Section 66A of theFinance Act, 1994 has been made inapplicable.[Notification no. 24/ 2012 ST dated 06.06.2012.]

Please read the article in this bulletin on the

subject.

l Provisions of Finance Act 2012 amending

provisions of Finance Act, 1994 has been notifiedwhich will be applicable w.e.f. 1st July, 2012[Notification no. 18 to 23/ 2012 ST dated

05.06.2012.]

11

June - 2 012


subject.

l The provisions of Compounding of Offences are

made applicable to the service tax also in theBudget 2012 hence the Service Tax(Compounding of Offences) Rules, 2012 aremade and Application form is also prescribedtherein. [Notification No. 17/2012- ST dated

29.05.2012],


subject.

l The provisions of settlement of cases are made

applicable to the service tax also in the Budget2012 hence Service Tax (Settlement of Cases)Rules, 2012 are made and Application form is alsoprescribed therein. [Notification No. 16/2012- ST

dated 29.05.2012]

Circular

l No new circular

Foreign Trade policy

Notifications

l Amendment to provisions of Foreign Trade Policy,

2009-14 and Handbook of Procedures, 2009-14,has been notified. Highlights of the AnnualSupplement has been separately given in thisbulletin.[Notification no. 1 (RE -2012/2009-14)

dated05.06.2012]

l Registration certificates for export of cotton (Tariff

Codes 5201 and 5203) have been started atdesignated Regional Authorities. Earlier, the issueof Registration Certificates for export of cottonwas suspended on 12.03.2012. This suspension

has been withdrawn. [NOTIFICATION NO. 113/

2010, DT. 04/05/2012]

l Certain conditions regarding export of cotton have

been relaxed for The Cotton Corporation of IndiaLtd., a Public Sector Undertaking under Ministryof Textiles, during the current cotton season 2011-12 [NOTIFICATION NO. 114/2010, DT. 04/05/

2012]

l Supply of marble in Domestic Tariff Area by EOUs

against Advance Authorization / EPCG / Suppliesto organisations which are entitled for duty freeimport will not be considered for fulfillment of NFE.Only inter-unit supplies like supplies to anotherEOU/SEZ will be counted towards NFE.[NOTIFICATION NO. 115/2010, DT. 07/05/2012]

l Export of onions will be allowed without any

MEP(Minimum Export Price) for the period upto2nd July 2012. [NOTIFICATION NO. 116/2010,

DT. 08/05/2012]

l Export Licensing requirement for export of sugar

has been dispensed. The exports will be subjectto registration of quantity with DGFT. However forexport against Advance Authorisation Scheme theexport licensing requirement will be required to befulfilled. [NOTIFICATION NO. 117/2010, DT. 14/

05/2012]

l 73 MTs of pulses for the year 2012-13 and 80 MTs

of pulses for the year 2013-14 to the Republic ofMaldives would be permitted to be exportedthrough MMTC Ltd. [NOTIFICATION NO. 118/2010, DT. 30/05/2012]

Public Notices

l ITC (HS) Code of 6 existing products which are

eligible for VKGYU or FPS have been revised. Thedetails of the same are mentioned under,

Table 1 F: Minor Forest Produce & Value Added Variants

Sr. No. VKGUY Existing ITC Revised ITC Description Effective

Product Code HS Code HS Code Date

1. 1 13011010 13019099 Other: Shellac 02.03.2009

2. 2 13011020 13019099 Other: Seed Lac 02.03.2009

VKGUY Products

12

June - 2 012

Table 1

Sr. No. FPS Existing ITC Revised ITC Description Effective

Product HS Code HS Code Date

Code

VKGUY Products

32 32 53051140 53050040 Coir Pith, Processed in 08.07.2010

value added forms like

briquette, coins, neo

disc, grow bags, organic

manure and in loose

form for use in horticulture

or agriculture.

62 62 85281218 85287218 Liquid Crystal Display 02.03.2009

Television Set of screen

size below 63 cm

85281219 85287219 Other: Liquid Crystal 02.03.2009

Display Television Set

of screen size above

63 cm

Table-4:

98 98 63026000 63026010 Toilet linen and kitchen 20.05.2010

63026090 linen, of terry toweling

or similar terry fabric,

of cotton.

63029900 63029900 Toilet linen and kitchen ----

linen, of other textiles

materials.

PUBLIC NOTICE NO. 109/2010, DT. 03/05/2012

l 5 new items of import Readymade Garments; Shoes; Quilt/ Blankets; Carpets; Local Herbal Medicine & 7new items of export Processed Food Items; Flowers; Fruits and Spices; Religious Products such as beads,prayer wheels, incense sticks and butter oil lamps; Readymade Garments; Handicraft and HandloomProducts; Local Herbal Medicine have been added to the existing list of tradable items under Indo – China

Border Trade. [PUBLIC NOTICE NO. 110/2010, DT. 07/05/2012]

l SION for Tubular Bags (Gauntlet) in the Textiles Product (Product Code:J) is being notified.

S.No. Export Product Export Import ImportQuantity item Quantity

J-375 Tubular Bags (Gauntlet) made 1 Kg. High Tenacity 1.08 Kg.from High Tenacity Polyester PolyesterFilament Yarn Filament Yarn

13

June - 2 012

[PUBLIC NOTICE NO. 111/2010, DT. 10/05/2012]

l Import of Areca nut (i.e. Betel nut) as an inputwould be permitted only when it is by an actualuser; or by anybody (including the actual user) if itis specifically mentioned in the SION of the exportproduct. [PUBLIC NOTICE NO. 112/2010, DT. 15/

05/2012]

Policy Circulars

l It is re-clarified that provision of revalidation of RCs

by RAs for export of cotton and cotton yarn has

l Port codes for following SEZs have been notified.

been withdrawn vide Public Notice No. 102 dated16.03.2012 and accordingly no revalidation will begranted to RCs for cotton and cotton yarn.

[POLICY CIR NO. 61/2010, DT. 01/05/2012]

l Conditions and Modalities for registration ofcertificate for export of with Regional Authorityhave been notified. [POLICY CIR NO. 62/2010,

DT. 14/05/2012 and POLICY CIR NO. 63/2010,

DT. 16/05/2012]

1 FRESH HPL SEZ/GURGAON(M/s Dr. Fresh Healthcare Private Ltd.) IN GGF 6 HARYANA

2 DLF SEZ/GURGAON(M/s DLF Ltd.) IN GGD 6 HARYANA

3 DLF CYBERCITY SEZ/GURGAON(M/s DLF Cyber City Pvt. Ltd.) IN GDL 6 HARYANA

4 SELECTO SEZ/FARIDABAD(M/s Selecto Systems Pvt. Ltd.) IN FBS 6 HARYANA

5 LUXOR SEZ/GURGAON(M/s Luxor Cyber City Pvt. Ltd.) IN GGL 6 HARYANA

6 ORIENT CRAFT SEZ/GURGAON(M/s Orient Craft Infrastructure Ltd.) IN GGO 6 HARYANA

7 GHI SEZ/GURGAON(M/s GHI Finalease & Investments Pvt. Ltd.

(formerly M/s Assotech Realty Pvt. Ltd.)) IN GGG 6 HARYANA

8 METRO SEZ/GURGAON(M/s Metro Valley Business Park Pvt. Ltd.) IN FBM 6 HARYANA

9 SUNCITY SEZ/GURGAON(M/s Suncity Haryana SEZ Developers Pvt. Ltd.) IN GGS 6 HARYANA

10 GIL SEZ/GURGAON(M/s Gurgaon Infospace Ltd.) IN GGI 6 HARYANA

11 RELIANCE SEZ/GURGAON(M/s Reliance Haryana SEZ Ltd.) IN GRN 6 HARYANA

12 CANTON SEZ/GURGAON(M/s Canton Buidwell Pvt. Ltd.) IN GHC 6 HARYANA

13 SUNWISE SEZ/GURGAON(M/s Sunwise Properties P. Ltd.) IN GGP 6 HARYANA

14 ANSAL SEZ/SONEPAT(M/s Ansal Kamdhenu Engineering SEZ Ltd) IN SNA 6 HARYANA

15 ANSAL SEZ/GURGAON(M/s Ansal SEZ Projects Ltd.) IN GAS 6 HARYANA

16 GPRL SEZ/GURGAON(M/s G.P. Reators (P) Ltd.

(formerly M/s IREO Investment Holding (I) Ltd.)) IN GRL 6 HARYANA

Sl. Location code / Name of new LOCODE State

No SEZ Port (SEZ Port

Codes)

14

June - 2 012

17 UNITECH REALITY SEZ/GURGAON(M/s Unitech Reality Projects Ltd.) IN GGU 6 HARYANA

18 MIPPL SEZ/GURGAON(M/s Mohan Investments and Properties Pvt. Ltd.) IN GGM 6 HARYANA

19 MIDPL SEZ/GURGAON(M/s Mayar Infrastructure Development Pvt. Ltd.) IN GMI 6 HARYANA

20 MID Pvt. Ltd. SEZ/GURGAON(M/s Mayar Infrastructure Development Pvt. Ltd.) IN GID 6 HARYANA

21 RAHEJA SEZ/GURGAON (M/s Raheja SEZs Ltd.

(formerly Raheja Haryana SEZ Developers Pvt. Ltd.)) IN GRS 6 HARYANA

22 MITTAL SEZ/PANIPAT(M/s Mittal Infratech Pvt. Ltd.) IN PNI 6 HARYANA

23 SBPL SEZ/GURGAON(M/s Sohna Buildcon Pvt. Ltd.) IN GGB 6 HARYANA

24 AEPL SEZ/GURGAON(M/s Ascendan Estates Pvt. Ltd.) IN GGE 6 HARYANA

25 PERPETUAL SEZ/FARIDABAD(M/s Perpetual Infracon Pvt. Ltd.) IN FBP 6 HARYANA

26 ANANT SEZ/SONEPAT(M/s Anant Raj Industries Ltd.) IN SNR 6 HARYANA

27 PROGRESSIVE SEZ/GURGOAN(M/s Progressive Buildestate Pvt. Ltd.) IN GPB 6 HARYANA

28 MIKADO SEZ/GURGAON(M/s Mikado Realtors Pvt. Ltd.) IN MKD 6 HARYANA

29 ESPIRE SEZ/FARIDABAD(M/s Espire Infrastructure Corporation Ltd. (EICL)) IN FBE 6 HARYANA

30 ORIENT/SEZ/GURGAON(M/s Orient Craft Infrastructure Ltd.) IN GGC 6 HARYANA

31 QUARKCITY SEZ/MOHALI(M/s Quarkcity India Pvt. Ltd.) IN CDQ 6 PUNJAB

32 RANBAXY SEZ/MOHALI(M/s Ranbaxy Laboratories Ltd.) IN CDR 6 PUNJAB

33 MAHINDRA SEZ/JAIPURM/S Mahindra World City (Jaipur) Ltd. IN JPM 6 RAJASTHAN

34 SOMANI SEZ/BHIWADI(M/s Somani Worsted Ltd.) IN AWS 6 RAJASTHAN

35 VATIKA SEZ/JAIPUR(M/s Vatika Jaipur SEZ Developers Ltd.) IN JPV 6 RAJASTHAN

36 GENPECT SEZ/JAIPUR(M/s Genpact Infrastructure (Jaipur) Pvt. Ltd.) IN JGI 6 RAJASTHAN

37 RNBIPL SEZ/BIKANER(M/s RNB Infrastructure Pvt. Ltd.) IN BRI 6 RAJASTHAN

38 MAHINDRA SEZ/SANGANER(M/s Mahindera World City (Jaipur) Ltd.) IN JPW 6 RAJASTHAN

39 MWCL SEZ/JAIPUR(M/s Mahindera World City (Jaipur) Ltd.) IN JPC 6 RAJASTHAN

40 MAHINDRA WORLD SEZ/JAIPUR(M/s Mahindera World City (Jaipur) Ltd.) IN JMW 6 RAJASTHAN

41 ANSAL IT CITY SEZ/NOIDA(M/s Ansal IT City and Parks Ltd.) IN DIT 6 UTTAR PRADESH

42 MOSERBAER SEZ/NOIDA(M/s Moser Baer India Pvt. Ltd) IN DEM 6 UTTAR PRADESH



Codes)

15

June - 2 012

43 NIIT SEZ/NOIDA(M/s NIIT Technologies Ltd.) IN DEN 6 UTTAR PRADESH

44 WIPRO SEZ/NOIDA(M/s Wipro Ltd.) IN DEW 6 UTTAR PRADESH

45 HCL SEZ/NOIDA(M/s HCL Technologies Ltd.) IN DEH 6 UTTAR PRADESH

46 OSE SEZ/NOIDA(M/s OSE Infrastructure Ltd) IN NGO 6 UTTAR PRADESH

47 SEAVIEW SEZ/NOIDA(M/s Seaview Developers Ltd.) IN DES 6 UTTAR PRADESH

48 UNITECH INFRA SEZ/NOIDA(M/s Unitech Infra Con SEZ) IN DEU 6 UTTAR PRADESH

49 PERFECT SEZ/NOIDA(M/s Perfect IT SEZ Pvt. Ltd.) IN PSN 6 UTTAR PRADESH

50 JUBILANT SEZ/NOIDA(M/s Jubilent Infracon Pvt. Ltd) IN DEJ 6 UTTAR PRADESH

51 GALLANT SEZ/NOIDA(M/s Gallant Infrastructure Pvt. Ltd.) IN DGI 6 UTTAR PRADESH

52 AACHIVS SEZ/NOIDA(M/s Aachvis Softech Pvt. Ltd) IN DEA 6 UTTAR PRADESH

53 UNITECH HI-TECH SEZ/NOIDA(M/s Unitech Hi-Tech Projects Pvt. Ltd.) IN DET 6 UTTAR PRADESH

54 SMRTPL SEZ/NOIDA(M/s Sarv-Mangal Real Tech Pvt. Ltd.) IN DSM 6 UTTAR PRADESH

55 IVR SEZ/NOIDA(M/s IVR Prime IT SEZ Pvt. Ltd) IN DEI 6 UTTAR PRADESH

56 GOLDEN SEZ/NOIDA(M/s Golden Tower Infotech Pvt. Ltd.) IN DGT 6 UTTAR PRADESH

57 HARI SEZ/VARANASI(M/s Hari Fertilisers Ltd.) IN BCH 6 UTTAR PRADESH

58 RCIPL SEZ/NOIDA(M/s R.C.Infosystems Pvt. Ltd.) IN DRC 6 UTTAR PRADESH

59 MIDC SEZ/AURANGABAD(Maharashtra Industrial Development Corporation) IN AWM 6 Maharashtra

60 MIDC SEZ/NANDED(Maharashtra Industrial Development Corporation) IN DID 6 Maharashtra

61 MIDC SEZ/PUNE(Maharashtra Industrial Development Corporation) IN PUM 6 Maharashtra

62 NMSPL SEZ/RAIGAD(Navi Mumbai SEZ Pvt. Ltd.) IN KLE 6 Maharashtra

63 MIDC SEZ/KESURDE(Maharashtra Industrial Development Corporation) IN STU 6 Maharashtra

64 IIIL SEZ/SINNAR(Indiabulls Industrial Infrastructure Ltd.) IN NKI 6 Maharashtra

65 MIDC PHALTAN SEZ/SATARA(Maharashtra Industrial Development Corporation) IN STM 6 Maharashtra

66 MSFPL SEZ/PUNE(Manjri Stud Farm Pvt. Ltd.) IN PNU 6 Maharashtra

67 WIDL SEZ/AURANGABAD(Wockhardt Infrastructure Development Ltd.) IN AWW 6 Maharashtra



Codes)

16

June - 2 012

[POLICY CIR NO. 64/2010, DT. 16/05/2012 and

POLICY CIR NO. 66/2010, DT. 31/05/2012]

l It is clarified that Capital Goods sourced from SEZare treated as ‘imported goods’. Hence, EPCGScheme-under Para 5.2A is available for importof spares for such imported Capital Goods (i.e.sourced from SEZ) with reduced EO. [POLICY

CIR NO. 65/2010, DT. 18/05/2012]

INCOME TAX

Notifications

l M/s. Intime Properties Pvt. Ltd. have developedan Industrial Park in Madhapur, Hyderabad and ithas been notified as an Industrial park u/s 80IA.[NOTIFICATION NO. 17/2012 DATED 11/05/

2012]

l “International Business Unit of Japan FinanceCorporation” is removed from the list of “CentralBank” and “Financial Institution wholly owned bygovernment” in the case of Japan which wasexempt from Tax in respect of the interest arisingto it in India. It is substituted by “Japan Bank forInternational Cooperation”. [NOTIFICATION NO.

19/2012 DATED 24/05/2012]

l Methods other than those prescribed in Section92C (1) for determination of Arms Length Price inInternational Transaction shall take into accountthe price which has been charged or paid, or wouldhave been charged or paid, for the same or similaruncontrolled transaction, with or between non-associated enterprises, under similarcircumstances, considering all the relevant facts.[NOTIFICATION NO. 18/2012 DATED 23/05/

2012]

l Any amount paid by any assessee to the Instutionsspecified in Notification 32/2012 for the purposesspecified thereon and upto the limit specifiedthereto will be entitled to deductions u/s 35AC.

[NOTIFICATION NC. 32/2012 DATED 07/05/

2012]

INCOME TAX

Circulars

l CBDT have clarified that the allegation byVodafone that they have not received anycommunication from Income tax Department inIndia about chargeability of tax in India is wrong.[PRESS RELEASE DATED 02/05/2012]

l Government’s “White Paper on Black money” hasbeen released vide Press Release dated 16/05/2012. However conclusion on reports quantifyingmagnitude of black money in the country is

missing.

l Members list for “Advisory Group for International

taxation and Transfer pricing” would be as follows:

l Revenue Secretary to the Government of India-

Head of the Advisory Group

l Chairman, Central Board of Direct Taxes,

Department of Revenue- Member

l Director General of Income-tax (International

Taxation), New Delhi- Member

l Joint Secretary (FT&TR-I), Department of

Revenue- Member Secretary

l Joint Secretary (FT&TR-II), Department of

Revenue-Member

l Joint Secretary (TPL-I), Department of

Revenue, Member

l Shri Som Mittal, NASSCOM, Member

l Shri P.Y. Gurav, CII, Member

l Shri Dinesh Kanabar, FICCI, Member

l Mr. Ved Jain, ASSOCHAM, Member

l Shri Mahesh P. Sarda, ICAI, Member

l Shri T.P. Ostwal, IFA India, Member

l Shri Mukesh Butani, ICC India, Member.

[OFFICE MEMORANDUM [F.NO.500/54/2012-FTD.I]

DATED- 03/05/2012]

MVAT

Notifications

l Raisins and currants will be continued to be taxedat Nil rate under MVAT till 31st May 2013.

[NOTIFICATION NO. 1512/C.R.62/TAXATION-1]

17

June - 2 012

l Geographical limit of distinct tax rate i.e. 23% (21%for others)for people having business of HighSpeed Diesel Oil and any other kind of motor spirithave been extended from Thane and Navi Mumbaito any other places notified by the StateGovernment from time to time. [NOTIFICATION

NO. 1511/C.R.62/TAXATION-1]

Company Law updates May 2012:

Circulars:

l EOUs & SEZ Units are exempted from the CostAudit Report Rules,2011 but they will have t omaintain Cost Records in accordance with CostAccounting Record Rules, 2011 and furnishCompliance Report and also to be submittedwhenever Depar tment Of Any Governmentrequires. [MCA Circular no.11/2012 dated

25.05.2012]

l From the financial year 2011-12 onwards (includingthe overdue reports relating to any previous year)it is mandatory to file the Cost Audit Report(Form-I) and Compliance Report Form-A) in ExtensibleBusiness Reporting Language Mode (XBRL), inthis respect all cost auditors and companies whichare liable to file cost audit reports and compliancereports are requested to file these reports after30th June 2012 in XBRL Mode, vide [General

Circular No.08/2012 dated 10th May 2012]

l Earlier as per General Circular No.33/2011 dated01/06/2011 and 63/2011 dated 06.09.2011 inrespect of defaulting companies, it was decidedthat no request whether oral or written or throughe-forms for recording any event based informationor changes shall be accepted by ROC unlessthese defaulting companies file their updatedbalance sheet and annual returns to ROC, but noww. e. f. 20.05.2012, on request it is allowed to acceptfollowing forms from defaulting companies also:

a) Form No.8 and Particulars of modification ofForm No.10 charge(s) under Securitization

and Reconstruction ofFinancial Assets andEnforcement of Securitynterest Act, 2002.

b) Form 17 Particulars of Satisfaction of

Charge(s) from defaulting

companies also.

Vide [General Circular No.09/2012 dated 15th May

2012]

l For declaring a Financial Institution as PublicFinancial Institutions, any Financial Institutionapplying for declaration as Public FinancialInstitution shall fulfill the following criteria:

a) A company or corporation should beestablished under a special act, or theCompanies Act, 1956 being a central act;

b) Main business of the company should beindustrial / infrastructural financing;

c) The company must be in existence for at least3 years and its financial statements shouldshow that its income from industrial /infrastructural financing activities exceeds50% of its total income;

d) The net worth of the company should beminimum of Rs.1000 Crore;

e) Company is registered as a InfrastructureFinance Company (IFC) with RBI or as aHousing Finance Company with NationalHousing Bank;

f) NOC from RBI / NHB in the case of IFC/HSBwith regard to supervisory concerns if anymust be obtained and enclosed with theapplication;

g) Such IFCs/HFCs, after being declared asPFIs are required to disclosed in their auditedfinancial statements that they are complying

with the directions and conditions laid down

by the Ministry

Further in respect of Central Public SectorUndertakings / State Public Sector Undertakingsno restriction shall apply in respect of c) and d)above. Vide [General Circular No.10/2012 dated

21st May 2012]

l There is partial modification of para (b) (iii) of theGeneral Circular No.67/2011 dated 30th Nov 2011for extend exemption from mandatory cost auditto all units located in specified zones as SEZs,EPZs, FTZs and also to EOUs subject to followingconditions:

18

June - 2 012

a) Exemption from mandatory cost audit will beavailable only to those units of a company thatare either located in the specified Zones or qualifyas 100% EOUs and not to all other units of thesame company.

b) There will be no exemption from maintenance ofcost accounting records and filling of compliancereport with the MCA in compliance with theapplicable Cost Accounting Record Rules.

c) In case any regulatory body seeks cost data inrespect of exempted units of any industry, then allrelevant units of such industry would be subjectto cost audit in accordance with the provisions ofapplicable rules / orders.

d) The DTA sales in all such exempted units for eachyear shall not exceed the permissible limits as perthe policy in force. In case their DTA sales for anyyear exceeds the permissible limits, then theexemption from cost audit available to the unit shallstand withdrawn and the unit would be subject tocost audit in accordance with the provisions ofapplicable rules / orders starting with the year inwhich exemption stood withdrawn and for everysubsequent year thereafter.

e) If any such exempted unit either relocates outsidethe specified Zones or lose 100% EOU status,then the mandatory cost audit would becomeapplicable from the year in which such changehas taken place and for every subsequent yearthereafter.

Vide [General Circular No.11/2012 dated 25th May

2012]

Notifications:

l In schedule XIV to the Companies Act, 1956 afterserial No. IV relating to Ships and entries theretofollowing serial number and entries are inserted:

“V- Intangible Assets

1. Intangible assets (Toll Road) created under Build,Operate and Transfer, Build, Own, Operate andTransfer or any other form of Public PrivatePartnership Route.

Amortization Amount X 100

Amortization Rate = —————————————

Cost of Intangible Asset (A)

Amortization Amount =

Actual Revenue for the year (B)

Cost of Intangible Asset (A) X ————————

Projected revenue

from the intangible asset

(Till the end of the concession period) (C)

2. Meaning of particulars are as under:

Cost of Intangible Asset (A) = Cost incurred bythe Company in accordance with the AS.

Actual Revenue for the year (B) = Actual Revenue(Toll charges) received during the accounting year.

Projected revenue from the intangible asset (C) =Total projected revenue from the intangible assetas provided to the project lender at the time offinancial closure / agreement

The amortization amount or rate should ensurethat the whole of the cost of the intangible asset isamortized over the concession period.

Total revenue shall be received on the end of eachfinancial year and the projected revenue shall beadjusted to reflect any changes in the estimatewhich will lead to the actual collection at the endof the concession period. [Notification dated 17th

April 2012]

l Central government makes the rules called as“Investor Education and Protection Fund(Uploading of information regarding unpaid andunclaimed amounts lying with companies) Rules,2012”. These rules are come into force w. e. f. 20thMay 2012 vide [Notification dated 10th May

2012]

l Further Amendment in the Companies (DirectorIdentification Number) Rules, 2006 in respect ofAnnexure I to DIN 1, Form DIN-4 and Annexure IIto DIN-4, these amended rules are called asCompanies (Director Identification Number)Amendment Rules, 2012 and are come into forcew. e. f. 29th May 2012 vide [Notification dated

28th May 2012]

19

June - 2 012

Way forward : Finance Bill becomes

Finance Act, 2012

Hon’ble Finance Minister has presented the budget through Finance Bill 2012 on 17th March, 2012 and alsoproposed certain amendments in the parliament.

Hon’ble President of India has given the assent to the Finance Bill, 2012 and got enacted as Finance Act,2012 (23 of 2012) on 28th May, 2012.

We give below the gist of the amendment to the Finance Bill as proposed by Hon’ble Finance Minister andnow is the part of the Finance Act, 2012

A. Service Tax

1. We give below the effective date of implementation of changes relating to Service Tax based on NegativeList of Services:

1 Section 65 - Proviso has been inserted after Earlier definition under Section 65Insertion of explanation so as to give effect that (105) will be applicable onlyProviso definitions specified under Section 65 of upto 30th June, 2012.

Finance Act, 1994 covering serial 1 to 121will be applicable from the date to be notifiedby Central Government

2 Section 65A (3) - Rules of interpretation of classification of The said Rules will not be applicableNew Provision services will not applicable from the date to be from 1st July, 2012

notified by Central Government

3 Section 65B - New definition has been inserted from the date New Definition mainly to cover Era ofNew Provision to be notified by Central Government. Negative List will be applicable w.e.f. 1st

July, 2012. There are some other minorchanges in the definitions based on thewidespread feedbacks and suggestions

4 Section 66 - Proviso has been inserted after explanation Earlier provisions of Section 66 will be noInsertion of so as make earlier section not applicable from longer applicable w.e.f. 1st July, 2012Proviso the date to be notified by Central Government

5 Section 66A - New provision has been inserted after explanation This section will be no longerNew Provision so as make earlier section not applicable from the applicable w.e.f. 1st July, 2012

date to be notified by Central Government

Sr. Section Particulars Effective Date

No. and Comments

CHANGES IN THE PROVISIONS AND EFFECTIVE DATE THERETO:

By CMA A. B. Nawal

20

June - 2 012

6 Section 66B - Charging section has been inserted and rate of Though rate of service tax is changedNew Provision service tax has been notified at 12% on the value @ 12% w.e.f. 1st April, 2012 now, new

of all services except for services provided in the provision in totality w.e.f. 1st July, 2012negative list provided or agreed to be provided inthe taxable territory by one person to another andcollected in such manner as may be prescribed

7 Section 66C - Central Government has been provided with the This provision is applicableNew Provision power to determine the place where such services w.e.f. 1st July, 2012

are provided or deemed to have been provided oragreed to be provided or deemed to have beenagreed to be provided for nature and descriptionof various services and the said provision cannotbe invalid nearly on the ground that either serviceprovider or service receiver or both are located ata place being outside territory.

8 Section 66D - Negative list of service has been provided with The New list indicating negative list ofNew Provision definitions. services which will not come under the

ambit of service tax has been madeeffective from 1st July, 2012. Thedefinition of Agricultural produce,Agricultural extension services, Deemedsales and Activity of Works contractrelating to immovable property has beenchanged.

9 Section 66E - Declared Services has been notified. Declared Services has been inserted soNew Provision as to remove the conflict of defining the

services and constitutional authoritiesthereof. In other words if Government isempowered to declare any activity asservices under “Declared Services’Definition of Works Contract has beenchanged so as to include immovableproperty. Provisions of this section willbe applicable w.e.f. 1st July, 2012

10 Section 66F - Rules of interpretation which was provided under This provision will be applicableNew Provision earlier section 65A has been removed and new w.e.f. 1st July, 2012

section 66F has been inserted to read as under(1)Unless otherwise specified, reference to a service(herein referred to as main service) shall not in-clude reference to a service which is used forproviding main service.(2) Where a service iscapable of differential treatment for any purposebased on its description, the most specificdescription shall be preferred over a more generaldescription.(3) Subject to the provisions of sub-section (2), the taxability of a bundled serviceshall be determined in the following manner,


No. and Comments

21

June - 2 012


No. and Comments

namely:––(a) if various elements of such serviceare naturally bundled in the ordinary course ofbusiness, it shall be treated as provision of thesingle service which gives such bundle its essentialcharacter;(b) if various elements of such serviceare not naturally bundled in the ordinary course ofbusiness, it shall be treated as provision of thesingle service which results in highest liability ofservice tax. Explanation.— For the purposes of sub-section (3), the expression “bundled service” meansabundle of provision of various services wherein anelement of provision of one service is combinedwith an element or elements of provision of anyother service or services.’;

11 67A New Rate of service tax, Value of Taxable service This provision is applicableProvision and Rate of Exchange will be in force as applicable w.e.f. 28th May, 2012. In other words,

at the time when taxable service has been provided for the purpose of arriving value ofand agreed to be provided and Rate of exchange export of services or determination ofmeans customs exchange rate. liability under reverse charge mechanism

for import of services, the foreignexchange rate as notified by Customs,has to be adopted w.e.f. 28th May, 2012

12 68 (2) (II) New Powers has been given to Government to notify This provision is applicableProvision the services for which payment of service tax

partly either by service availer or partly byservice provider

13 72A New Special Audit by Practicing Chartered Accountant This provision is applicableProvison and Cost Accountants can be ordered by w.e.f. 28th May, 2012.

Commissioner of Central Excise if assessee failsto declare or determine value of taxable servicescorrectly or Cenvat availment and utilisation arenot in the normal limit or availed by fraud/ collusion/ suppression of facts / willful misstatement orwhere operation of the company are spread outat multiple locations.Audit report is required to besubmitted with the specified period and materialgathered on the basis of audit and payment ofservice tax thereon will be only after opportunityof personal hearing to the assessee.

14 73 (1) Recovery of service tax not levied or paid or This provision is applicableAmendment short levied or short paid or erroneously w.e.f. 28th May, 2012.

refunded Show Cause notice is required to beissued within period of 18 months.

15 73 (1A) New Deeming provision for issuance of Show Cause This provision is applicableProvisions Notice for subsequent period has been introduced w.e.f. 28th May, 2012.

if grounds relied upon remain the same for theearlier period. Limitation of 18 months will notapply in such cases.

22

June - 2 012

16 73 (4A) Provision of payment of service tax, interest and This provision is applicableAmendment penalty equal to 1% each month maximum to w.e.f. 28th May, 2012.

25% will not be applicable in the case whereservice tax not levied or paid or short levied orshort paid or erroneously refunded will not beapplicable if it is on account of fraud/ collusion /suppression of facts / willful misstatement.

17 80 (2) New No Penalty under Sec 76, 77 and 78 can be This provision is applicableProvision imposed on the service provider rendering w.e.f. 28th May, 2012.

service of renting of immovable property if the It means before 27th November, 2012 ,service tax is paid within 6 months along with if Service Tax renting ofinterest from the date of which Finance immovable property along withBill 2012 receives the assent from President. Interest then no interest will be payable.

18 83 Provision of Central Excise sections 12E, 14, This provision is applicableAmendment 15, 31, 32, 32A to 32P, 33A, 34A, 35EE, 35F w.e.f. 28th May, 2012.

will be applicable for the service tax.

19 85 (3) Appeal to the Commissioner Appeals to be made This provision is applicableAmendment within a period of 2 months instead of 3 months. w.e.f. 28th May, 2012.

This provision will be applicable from the date ofassent to the Finance Bill by Honorable President.

20 85 (3A) Condonation of delay can be granted by This provision is applicableNew Provision Commissioner of Appeals only for further period w.e.f. 28th May, 2012.

of 1 month instead of 3 months.

21 86 (1) Appeal against the order of the Commissioner or This provision is applicableAmendment Commissioner Appeals to be made within the w.e.f. 28th May, 2012.

period of 3 month before CESTAT by theassessee and with a period of 4 months from thedate of order which is received from Committee ofChief Commissioners / Commissioners by theDepartment.

22 88 Word “duty” has been substituted by the word “tax” This provision is applicable Amendment w.e.f. 28th May, 2012.

23 89 (1) (a) Offences and Penalties for “Knowingly evades the This provision is applicableAmendment payment of service tax under this chapter” have w.e.f. 28th May, 2012.

been replaced with earlier clauses which were fornon-issuance of invoices.

24 93A Rebate on goods or services can be granted only This provision is applicablrAmendment if input or input services are used in the goods or w.e.f. 28th May, 2012.

services on removal or export of such goods. This provision is applicable

25 93 B New Rules made under Sec 94 to be applicable also This provision is applicableSection to the services other than taxable services i.e. w.e.f. 28th May, 2012.

Negative List of services / Exempted Services


No. and Comments

23

June - 2 012

26 94 (ee) Input Services – Powers to make rules for credit This provision is applicableOmission on input services for the same category of the w.e.f. 28th May, 2012.

services has been omitted.

27 94 (hhh) Government is empowered to make rules for This provision is applicableAmendment provision of taxable service under Sec 66C has w.e.f. 28th May, 2012.

been inserted.

28 94 (i) New Government is empowered to make rules so as This provision is applicableprovision to provide the amount to be paid for compounding w.e.f. 28th May, 2012.

and manner of compounding of offences

29 94 (j) New Government is empowered to make rules for This provision is applicableProvision settlement of cases w.e.f. 28th May, 2012.

30 95 (1I) New Power are given to the Government to make This provision is applicableProvision retrospective amendment within period of 2 w.e.f. 28th May, 2012.

years for removing inconsistencies relation toinsertion of Sec 65B, 66B, 66C, 66D,66E and 66F

31 96C Advance Ruling Provisions are made applicable This provision is applicableAmendment to admissibility of credit of duty or tax in terms w.e.f. 28th May, 2012.

of rules made in this regard.

32 97& 98 New Special provision for exemption and refund has This provision is applicableProvisions been made applicable for Management, w.e.f. 28th May, 2012.

Maintenance or Repair of Road and in respectof non-commercial Government Building for theperiod 16th Jun 2005 till 26th July 2009 for roadsand 16th Jun 2005 till date for Government building


No. and Comments

EXEMPTED SERVICES notified under Notification 12/2012-ST dated 17th March 2012 effective from 1st July,

2012

EXEMPTION ON ACCOUNT OF PAYMENT OF RESEARCH & DEVELOPMENT CESS notified under

Notification 14/2012-ST dated 17th March 2012 effective from 1st July, 2012.

TAXABILITY UNDER REVERSE CHARGE notified under Notification 15/2012-ST dated 17th March 2012 effective

from 1st July, 2012.

Reverse Charge Mechanism has been introduced and service availer / receiver will be liable to pay servicetax

24

June - 2 012

Services of Insurance Agent to Nil 100% No Changeperson carrying Insurance Business

Transport of Goods by Road by GTA Nil 100% No Change

Sponsorship Nil 100% No change

Services provided or agreed to be provided Nil 100% Newby an arbitral tribunal in Taxable Territory change

to any business entity

Service of Individual Advocates provided to Nil 100% New

any business entity in Taxable Territory

Service Provided by way of Support service Nil 100% Newby Government or local authority to Business

Entity within Taxable Territory

Renting or hiring any motor vehicle designed to Nil 100% Newcarry passenger on abated value provided by

Individual, HUF and Partnership firms toCompanies or Body Corporate

Renting or hiring any motor vehicle designed to 60% 40% New - It is

carry passenger on unabated value provided difficult toby Individual, HUF and Partnership firms to establishCompanies or Body Corporate control. It will

un-necessarilyincreaselitigation

Supply of Manpower for any purpose provided 25% 75% It is difficult toby Individual, HUF and Partnership firms to establishCompanies or Body Corporate control. It will

un-necessarilyincreaselitigation

Works Contract Service provided by 50% 50% NewIndividual, HUF and Partnership firms to

Companies or Body Corporate

Import of Services Nil 100%

Services Tax to be payable Tax to be paid by Bizsolby Service Service availer / AnalysisProvider receiver

Service Tax (settlement of cases) Rules, 2012 has been notified vide Notification no. 16/2012 ST dated29.05.2012, wherein, Form and Manner of Applications, Disclosures, Provisions regarding attachment of propertyand Fees have been specified. Procedure is almost the same in line with Central Excise and Customs.

Service Tax (compounding of offence) Rules, 2012 has been notified vide Notification no. 17/2012 ST dated29.05.2012, wherein, Form and Manner of Applications, Procedure on receipt of Application, Powers for grantingimmunity from prosecution and Withdrawal of immunity from prosecution are specified. Moreover, compoundingof fees have been fixed and stipulated under Rule 5 of the said Rule which is reproduced below:

25

June - 2 012

Fixation of the compounding amount. - For the purpose of compounding of offences under the provisions ofthe Act, the compounding amount shall be as provided in the following Table, namely:-

Provided that if a person has committed offences

falling under more than one category specified above

and where the amount of service tax evasion or amount

of CENVAT Credit wrongly taken or utilised is the same

for all such offences, the compounding amount, in such

cases, shall be the amount as determined for the

offence for which a higher compounding amount has

been prescribed.

To conclude, Government has issued most of the

notifications for implementation of new provisions of

Finance Act, 1994 w.r.t. Era of Negative List of

Services. However, certain amendments under

CENVAT Credit Rules, 2004 are expected. Now,

Assessees have to gear up and change their existing

system to be 100% Statutory Compliant.

8. Key Income Tax amendments in Finance Bill

2012

1. Capital gains

l Benefit of reduced tax rate of 10 percent on long

term capital gain arising from sale of unlisted

securities has been extended to all non-residents

in parity with Foreign Institutional Investors.

S. Offence Compounding amount No. (1) (2) (3)

1. Offence specified under section 89 Up to fifty per cent. of the amount of service tax(1) (a) of the Act evasion, subject to minimum of ten per cent. of

amount of tax evaded

2. Offence specified under section 89 Upto fifty per cent. of the amount of CENVAT(1) (b) of the Act Credit wrongly taken or utilised, subject to minimum

of ten per cent. of said amount.

3. Offence specified under section 89 Rupees fifty thousand for the first offence and to be(1) (c) of the Act increased by hundred per cent. of this amount for

each subsequent offence

4. Offence specified under section 89 Upto twenty five per cent. of the amount of service(1) (d) of the Act tax not deposited subject to a minimum of two percent.

for each month for which the amount has not beenso deposited.

l Benefit of capital gains tax exemption has been

extended to sale of unlisted securities in an initial

public offering. However, a securities transaction

tax at the rate of 0.2 percent will be payable on

such a transaction.

2. Measures to prevent generation and

circulation of unaccounted money

l In the Finance Bill 2012, the FM had proposed

levying tax on consideration received by adomestic company which is in excess of fairmarket value of its shares. With a view of addressthe concerns raised by ‘angel’ investors, exclusionhas been granted from levy of such tax to certainnotified category of persons.

3. Venture Capital Funds (“VCF”)

l Exemption from applicability of DividendDistribution Tax and tax withholding provisions ondistr ibution of income by VCFs has beenreinstated.

4. Return of Income

l The Finance Bill 2012 had proposed that everyresident having any asset (including financial asset

in any entity) located outside India or signing

authority in any account located outside India shall

26

June - 2 012

mandatorily file a return of income irrespective of

whether or not the taxpayer has taxable income.

l Under the amended Finance Bill 2012 , these

provisions shall not be applicable to the individuals

who are not ordinarily resident in India (may be,

perhaps, pressure from outside).

5. Minimum Alternate Tax (“MAT”)

l The amended Finance Bill 2012 provides an option

to certain companies for preparing their profit and

loss account either in accordance with the

provisions of the Companies Act, 1956 or in

accordance with the provisions of the law

governing such company for the purpose of

computation of book profits under MAT.

l Tax payers having income from life insurance

business would be exempt from MAT provisions.

6. Tax incentive on conversion of Indian branch

of a foreign bank into a subsidiary

l With a view to promote the scheme of Reserve

Bank of India (“RBI”) for subsidiarisation of Indian

branches of foreign banks to ring fence Indian

capital and Indian operations from economic

shocks external to the Indian economic scenario,

special provisions have been inserted for foreign

banks having operations in India.

l No tax will be levied on capital gains arising on

conversion of the Indian branch of a foreign

company, carrying out banking business in India,

to an Indian company in accordance with the

scheme framed by RBI and notification issued by

the Government in this regard.

l Treatment of unabsorbed depreciation, set off of

losses and carry forward and set off of losses,

tax credit in respect of taxes paid on deemed

income and computation of income of foreign

company and Indian subsidiary would apply

subject to notification issued by the Government.

l Non-compliance of any of the conditions specified

in the scheme or notification to result in denial of

benefits granted to the foreign company or the

Indian subsidiary.

7. Provisions relating to withholding of taxes

l With the view to augment long-term low cost funds

from abroad for the infrastructure sector, tax

withholding rate has been reduced to 5 percent

on interest payable on foreign currency borrowing

from July 1, 2012 upto June 30, 2015, provided

the loan agreement and rate of interest is approved

by the Central Government. In his Finance Bill

2012, the FM had earlier proposed a specified list

of sectors to which the lower rate would be

applicable. In the amendment to Finance Bill 2012,

this benefit has been extended to all Indian

companies.

l The FM had introduced a tax withholding of 1

percent on consideration paid for transfer of any

immovable property. To reduce the additional

compliance burden, provision for tax withholding

on consideration received on transfer of

immovable property has been now withdrawn.

However, while this amendment was stated in the

FM’s speech, it does not find place in the actual

text of the amendment to Finance Bill 2012.

l With the intention to reduce the compliance burden

on the jewellery industry, the threshold limit for tax

collection liability on cash purchase of jewellery has

been increased to INR 0.5 million as compared to

the earlier limit of INR 2 Lakh and cash purchase of

coin or other articles weighing 10 grams or less have

been specifically excluded from these provisions.

8. General Anti-Avoidance Rule

l In order to give taxpayers as well as tax

administration time to gear up for the new General

Anti Avoidance Rules (“GAAR”), implementation

of the GAAR legislation has been postponed by

one year. Apart from the changes described below,

the substantial provisions of the GAAR remain

unchanged.

l The earlier GAAR provisions required the taxpayer

to discharge the heavy burden of proving that the

main purpose of the arrangement or a step in or a

part thereof was not to obtain a tax benefit. This

provision is deleted, thus the Revenue may now

27

June - 2 012

have to discharge this onus, based on the rules

of natural justice.

l An additional independent member from Indian

Legal Service has been added to the Approving

Panel to ensure objectivity and transparency. The

Approving Panel will now include this independent

member alongwith two Commissioners of Income

Tax and its role will be to pass directions with

respect to taxability of the transaction under the

GAAR legislation.

l Both resident as well as non-resident taxpayers

can approach the Authority for Advance Ruling to

obtain a ruling as to whether an arrangement to

be undertaken is permissible under the GAAR

provisions. This provision will provide certainty to

the taxpayer and avoid prolonged litigation.

l A Committee has been constituted under the

Chairmanship of the Director General of Income

Tax (International Taxation) to give

recommendations for formulating the rules and

guidelines for implementation of the GAAR

provisions and to suggest safeguards so that

these provisions are not applied indiscriminately.

The Committee is expected to submit its

recommendations by May 31, 2012.

n n n

28

June - 2 012

New Era of Negative List of Services, concepthas been notified under Finance Act, 2012 which willbe effective from 1st July, 2012 and some of theprovisions of Finance Act, 2012 will be effective from28th May, 2012.

Consequent to such changes in the concept therewas need to amend Service Tax (Determination ofValue) Rules, 2006 and the same has been amendedby the Service Tax (Determination of Value) SecondAmendment Rules, 2012.vide notification no. 24/2012ST dated 06.06.2012 and made effective from01.07.2012.

Accordingly, valuation of Works’ Contract Service/ Activity needs to be made as follows:

Determination of value of service portion inthe execution of a works contract.- Subject to theprovisions of section 67, the value of service portionin the execution of a works contract , referred toin clause (h) of section 66E of the Act, shall bedetermined in the following manner, namely:-

(i) Value of service portion in the execution of aworks contract shall be equivalent to the gross amountcharged for the works contract less the value ofproperty in goods transferred in the execution of thesaid works contract.

Explanation.- For the purposes of this clause,-

(a) gross amount charged for the works contractshall not include value added tax or sales tax, as thecase may be, paid or payable, if any, on transfer ofproperty in goods involved in the execution of the saidworks contract;

(b) value of works contract service shall include,-

(i) labour charges for execution of the works;

(ii) amount paid to a sub-contractor for labour andservices;

(iii) charges for planning, designing and architect’sfees;

(iv) charges for obtaining on hire or otherwise,machinery and tools used for the execution of theworks contract;

(v) cost of consumables such as water, electricity,fuel used in the execution of the works contract;

(vi) cost of establishment of the contractor relatableto supply of labour and services;

(vii) other similar expenses relatable to supply oflabour and services; and

(viii) profit earned by the service provider relatable tosupply of labour and services;

(c) Where value added tax or sales tax has been

paid or payable on the actual value of property in goods

transferred in the execution of the works contract, then,

such value adopted for the purposes of payment of

value added tax or sales tax, shall be taken as the

value of property in goods transferred in the execution

of the said works contract for determination of the

value of service portion in the execution of works

contract under this clause.

(ii) Where the value has not been determined under

clause (i), the person liable to pay tax on the service

portion involved in the execution of the works contract

shall determine the service tax payable in the following

manner, namely:-

(A) in case of works contracts entered into for

execution of original works, service tax shall be

payable on forty per cent. of the total amount charged

for the works contract;

(B) in case of works contract entered into for

maintenance or repair or reconditioning or restoration

or servicing of any goods, service tax shall be payable

on seventy percent. of the total amount charged for

the works contract;

(C) in case of other works contracts, not covered

under sub-clauses (A) and (B), including maintenance,

repair, completion and finishing services such as

glazing, plastering, floor and wall tiling, installation of

electrical fittings of an immovable property , service

tax shall be payable on sixty per cent. of the total

amount charged for the works contract;

Service Tax (Determination of Value)

Rules, 2006 – After effect of Finance Act, 2012

By CMA A. B. Nawal

29

June - 2 012

Explanation 1.- For the purposes of this rule,-

(a) “original works” means-

(i) all new constructions;

(ii) all types of additions and alterations to abandonedor damaged structures on land that are requiredto make them workable;

(iii) erection, commissioning or installation of plant,machinery or equipment or structures, whetherpre-fabricated or otherwise;

(d) ”total amount” means the sum total of the grossamount charged for the works contract and the fairmarket value of all goods and services supplied in orin relation to the execution of the works contract,whether or not supplied under the same contract orany other contract, after deducting-

(i) the amount charged for such goods or services,if any; and

(ii) the value added tax or sales tax, if any, leviedthereon:

Provided that the fair market value of goods andservices so supplied may be determined in accordancewith the generally accepted accounting principles.

Explanation 2.—For the removal of doubts, it isclarified that the provider of taxable service shall nottake CENVAT credit of duties or cess paid on anyinputs, used in or in relation to the said works contract,under the provisions of CENVAT Credit Rules, 2004.”.

Similarly, when supply of food or any other

article of human consumption or any drink in arestaurant or as outdoor catering, valuation of suchservice needs to be determined as under: Subject tothe provisions of section 67, the value of serviceportion, in an activity wherein goods being food orany other article of human consumption or any drink(whether or not intoxicating) is supplied in any manner

as a part of the activity at a restaurant or as outdoorcatering, shall be the specified percentage of the totalamount charged for such supply, in terms of thefollowing Table, namely:-

Explanation 1.- For the purposes of this rule,“total amount” means the sum total of the gross amountcharged and the fair market value of all goods andservices supplied in or in relation to the supply of foodor any other article of human consumption or anydrink(whether or not intoxicating), whether or notsupplied under the same contract or any other contract,after deducting-

(i) the amount charged for such goods or services,if any; and

(ii) the value added tax or sales tax, if any, leviedthereon:

Provided that the fair market value of goods andservices so supplied may be determined in accordancewith the generally accepted accounting principles.

Explanation 2.- For the removal of doubts, it isclarified that the provider of taxable service shall nottake CENVAT credit of duties or cess paid on any goodsclassifiable under Chapters 1 to 22 of the CentralExcise Tariff Act, 1985 (5 of 1986).”.

The value of the telecommunication service shallbe the gross amount paid by the person to whomtelecommunication service is actually provided.

The amount realized as demurrage or by any othername whatever called for the provision of a servicebeyond the period originally contracted or in any othermanner relatable to the provision of service will beincluded in the taxable value of the service,

Whereas, following will not be included in thetaxable value: subsidies and grants disbursed by theGovernment, not directly affecting the value of service

Sl. Description Percentage ofNo. the total amount(1) (2) (3)

1. Service portion in an activity wherein goods, being food or any 40other article of human consumption or any drink(whether or notintoxicating) is supplied in any manner as a part of the activity, at a restaurant

2. Service portion in outdoor catering wherein goods, being food or any 60other article of human consumption or any drink(whether or notintoxicating) is supplied in any manner as a part of such outdoor catering

30

June - 2 012

Interest on delayed payment of any considerationfor the provision of services or sale of property,whether moveable or immoveable

Accidental damages due to unforeseen actions notrelatable to the provision of service..

Moreover, Rule 7 of the said Rules has beenomitted on account of Provisions of Section 66A of theFinance Act, 1994 has been made inapplicable.

Rule 2A of Service Tax Valuation Rules, asamended on 17-3-2012, had made provision for payingservice tax on 25% of total amount when the total

amount charged by builders included value of land. Thisprovision has been omitted vide amendment dated 17-3-2012. Let up hope that this scheme is included in theabatement scheme.

Service tax on Annual Maintenance Contracts(which include value of material) will be payable on 70%of total amount.

Interest on deposits, loans, advances, debenturesetc. will be exempted service and will be consideredfor reversal of Cenvat Credit under rule 6 of CenvatCredit Rules.

n n n

31

June - 2 012

1. Marine 1B.1 Marine products are incentivized at Deleted No more higher rates underSector (iv)(e) special higher rate under VKGUY VKGUY for specified Marine

scheme. products.

2. Exports & 2.1 Exports and Imports shall be free, Exports and Imports shall be ‘Free’, Now export and ImportImports except where regulated by FTP or except when regulated. Such regu- regulation strictly as perfree any other law in force. lation would be as per FTP FTP and/ or ITC (HS).unless and/or ITC (HS).regulated

3. Prohibition 2.1.4 NA Direct or indirect import of charcoal New Insertionon Import of is prohibited from Somalia,Charcoal irrespective of whether or not suchfrom charcoal has originated in SomaliaSomalia [United Nations Security Council

Resolution 2036 (2012)]. Importersof Charcoal shall submit a declar-ation to Customs that the consign-ment has not originated in Somalia.

4. Interpreta- 2.3 If any question or doubt arises in (a) The decision of DGFT shall be New committee will betion of respect of interpretation of any final and binding on all matters established for advice toPolicy provision contained in FTP, or relating to interpretation of Policy, DGFT in interpretation

classification of any item in ITC or provision in HBP v1, HBP v2 or of policy matters.(HS) or HBP v1 or HBP v2, or classification of any item for import/Schedule of DEPB Rates (including export policy in the ITC (HS). (b)content, scope or issue of an A Policy Interpretation Committeeauthorization there under) said (PIC) may be constituted toquestion or doubt shall be referred aid and advice DGFT.to DGFT whose decision thereonshall be final and binding.

5. Actual User 2.16 Capital goods, raw materials, Goods which are importable Authority for dispensingCondition intermediates, components, freely without any ‘Restriction’ may with actual user condition

consumables, spares, parts, be imported by any person. is shifted from RA to DGFT.accessories, instruments and other However, if such imports requiregoods, which are importable an Authorization, actual user alonewithout any restriction, may be may import such good(s) unlessimported by any person.However, actual user condition isif such imports require an specifically dispensed withAuthorisation, actual user alone by DGFT.may import such goods unlessactual user condition is specificallydispensed with by RA.

6. DGCI &S 2.45.1 NA DGCI&S has put in place a Data Now one cannot access theCommercial Suppression Policy. Transaction ransaction level data i.e.Trade Data level data would not be made tavailable only statistical

publically available to protect data.privacy.

Sr. FTP / Para Previous Amendments / CommentsNo. HBOP provision

FOREIGN TRADE POLICY ANALYSIS

32

June - 2 012


7. Niryat 2.51 NA A novel ‘Niryat Bandhu’ scheme for New InsertionBandhu mentoring first generation ent-

epreneurs has been conceptualised.The Officer (Niryat Bandhu) wouldprimarily mentor interestedindividuals in the arena of inter-national business. Such hand-holding by officers of DGFT wouldhelp the new exporters / importersby leveraging the knowledge baseof officers and by providing timelyand appropriate guidance

8. e-BRC 2.52 Bank Realization Certificates Welcome step towards(BRCs), evidencing receipt of reducing time and costexport proceeds would be trans- w.r.t. BRC submission.mitted electronically from the res- However at present, BRCpective banks to the DGFT. This will is prepared by thebring down transaction cost to the exporter and signaturesexporters as they will not be are obtained from therequired to obtain physical copies Banker. Now BRC will beof BRCs from the banks and then ` delayed since nosubmit such physical copy to DGFT. Bankers will allow to

have access to onlinsystem for transmittingBRC to DGFT site.

1. Profile of 2.3 Each importer / exporter shall be ANF 1 contains the profile in of IEC holder will be res-Importer/ required to file importer / exporter profile the importer / exporter. ponsible for updating theExporter once with RA in ANF 1. RA shall IEC Holder shall be responsible for information minimum

enter such information in database updating the same as and when a once in year subject theso as to dispense with need for change takes place or in any case provision of updating anyasking information again. In case of at least once in a year. changes within 90 days.any change in information given inANF 1, importer / exporter shallintimate same to RA.

2. Application 2.9 An application for grant of IEC (a) Exporters / Importers shall file No restriction w.r.t. RA forfor Grant Number shall be made by an application in ANF 2A format issue of IEC subject toof IEC Registered Office, in case of for grant of IEC and submit the atleast one permanent

companies and Head Office in same to jurisdictional RA. List of establishment is withincase of proprietorship concerns, RAs, along with their jurisdiction the Jurisdiction of thepartnership concerns and HUFs, is given in Appendix 1. concerned RA.of applicant, except EOUs and (b) Only one IEC would be issuedSEZ units, to concerned RA in against a single PAN.ANF2A with documents prescribedtherein.Only one IEC would beissued / allowed against a singlePAN number.The application (ANF2 A) for issuance of fresh IEC ormodification of IEC shall indicatethe name and designation of theperson whose photograph hasbeen affixed on the Bank Certificate.A photograph of the person along-with his/her name and designationshall also be affixed on the IEC No.to be issued (Appendix 18 B).

33

June - 2 012


3. Modification 2.9.5 NA (a) An application for modification New insertion ofin IEC shall be filed with the RA from modification.

where IEC was originally issued.(b) ANF2A shall be used for modi-fication of IEC details like name,address, constitution etc.Application for modification shouldbe filed within 90 days of themodification, after which a penaltyas per Para 9.1 of HBP v1 shallbe charged as additional applicationfees.(c) If the ownership of a proprietor-firm, who has been issued an IECundergoes any change due to sale,gift, inheritance or any other reason;and it continues to be proprietor-firmeven after such change, then anapplication to incorporate suchdetails of change alongwith PANdetails of the new ownership bemade before the concerned RA.If by such change of ownership, thenature of firm changes fromproprietor-firm to any other type,again necessary application toincorporate the changes shall bemade to the concerned RA.

4. NA However, DGFT may decide to New provision has beenissue Authorization for a longer / inserted empoweringshorter validity period. DGFT to alter the validity

period of Authorisations.

5. Revalidation 2.13. For the purpose of re-credit of Only for the purpose of utilisation ofof Import / 2A 4% Special Additional Duty (SAD) re-credit of 4% Special AdditionalExport of customs in the freely transferable Duty (SAD) of customs, the freelyLicense / Duty credit scrips (including DEPB), transferable duty credit scripsCertificate / revalidation for a maximum period (including DEPB), shall be deemedAuthorization of 6 months from the date of to have been revalidated till/Permissions endorsement, shall be allowed 30.6.2012. No further endorsement

in case the balance period of of such scrips by the respective RAvalidity is less than 6 months on shall be required under thethe date of re-credit following circumstances:-

(a) if the endorsement has beenmade by Regional Authority on orbefore 15.9.2011 but the re-creditremains unutilised;or(b) if the consolidated certificate(Credit Note) have been issued byCustoms between 1.9.2011 to30.4.2012. In such scrips, theamount indicated in the consolidatedcertificate by customs shall bedeemed to have been recredited.

34

June - 2 012


6. Interviews 2.17 NA. (b) Adjudicating Officers shall grantwith Personal Hearing to exporters orauthorised importers, including their authorizedOfficers representatives.

7. Import/ 2.27 Duty free import of samples upto Duty free import of samples upto Reducing the limit of DutyExport of Rs. 3,00,000 for all exporters shall Rs 100,000 for all exporters free import of samplesSamples be allowed as per terms and (Rs.300,000 for gems and jewellery amount and 3,00,000/-

conditions of Customs Notification. sector) shall be allowed as per limits only for gems &terms and conditions of Customs Jewellery.notification. Exports of bonafidetrade and technical samples offreely exportable item shall beallowed without any limit.

8. Recogni- 2.32.2Ation as Pre-shipmentInspectionAgency(PSIA) andissuance ofPre-shipmentCertificate(PSIC)

In case any agency wishes to beenlisted under Appendix- 5, theymay furnish an application to theOffice of Director General ofForeign Trade with the followingdocuments in the format inAppendix-5A, which will beconsidered by an Inter-MinisterialCommittee:(a) A brief on the activities of theagency, its history, membership,organizational structure,manpower, etc.(b) Infrastructural setup, logistics,testing labs etc. for carrying out theinspection of metallic scrap.(c) List of companies/ agencies forwhich testing has been carried out.

Application for recognition in respectof PSIAs have to be made inproforma prescribed in Appendix 5-A.(b) For applicants based in Indiaapplication fee will be Rs.7500/- andfor applicants based abroad theapplication fee will be US $200. Thefees may be amended from time totime by DGFT.(c) The applications will beconsidered by an Inter-MinisterialCommittee.(d) The PSIAs will be issued arecognition certificate valid for threeyears. However, DGFT has the rightto suspend/cancel such a certificateat any time during the 3 year term.At the end of 3 years PSIA has tomake a fresh application for furtherrecognition. (e) PSIA shall issue Pre-Shipment Inspection Certificate(PSIC) in the format given inAppendix 5-B.

9. Responsi- 2.32. NA.bility and 2BLiability ofPSIA andImporter

(a) In case of any mis-declaration inPSIC, PSIA would be liable to pay apenalty upto Rs. 10 Lakhs (if theagency is based in India) or up to US$20,000/- (if the agency is based inforeign country), in addition tosuspension/ cancellation ofrecognition.(b) The importer would also beresponsible for import of any materialin contravention of the declarationas required under Para 2.32.2 ofHBP Vol.I and would be liable to paypenalty upto Rs. 10 Lakhs

35

June - 2 012

10. Application 2.49 Note 4: Exporters are entitled to NA. Deletedfor Grant A.2 apply for a ‘destination licence’ forof Export countries and / or groupings ofAuthori- countries for export to whichsation/ only re-transfer conditionsCertificate / need be imposed.Permission

11. Application 2.49 NA. New Para Added.for Grant A.3of ExportAuthori-sation/Certificate /Permission


No export authorisation is requiredfor supply of SCOMET items fromDTA to SEZ. However, all suppliesof SCOMET items from DTA to SEZwill be reported to the DevelopmentCommissioner of the respectiveSEZ by the supplier in theprescribed proforma [Annexure 1 toAppendix-3 to Schedule 2 of ITC(HS) Classifications of Export andImport Items] within one week of thesupplies getting effected. An annualreport of such supplies from DTA toSEZ shall be sent to SCOMET Cell,DGFT (Hqrs), Department ofCommerce, Udyog Bhawan,Maulana Azad Road, New Delhi-110011, by the DevelopmentCommissioner (DC), SEZ in theprescribed proforma [Annexure 2 toAppendix-3 to Schedule 2 of ITC(HS) Classifications of Export andImport Items]. Report by the DC, SEZis to be filed by 15th May of everyfinancial year for the supplieseffected during the precedingfinancial year. Export Authorisationis, however, required if the SCOMETitems are to be physically exportedoutside the country from SEZ i.e. toanother country (Refer Rule 26 ofthe SEZ Rules, 2006).

12. Time Bound 9.11 Fixation of input output norms – Fixation of input outputDisposal of 90 days norms – 120 daysApplications

36

June - 2 012

(i) AA / DFIA, Replenishment Authorisation 24 Months Minimum 12 months, or Upto

for Gems & Jewellery as per Chapter 4 of FTP. 31.3.2014 from issue date, whichever is more.

(ii) (a) Zero duty EPCG Authorisation(Other than Spares) 9 Months 9 months including spares.

(ii) (b) 3% Duty EPCG Authorisation(Other than Spares) 36 Months 36 months including spares.

(iii) EPCG Authorisation for Spares, refractories, Co-terminus with Deleted

catalyst and consumables Co-terminus with EOP of EPCG

EOP of EPCG Authorisation. Authorisation.

(v) Advance Authorisations (AA)/DFIA for Deemed 24 Months or Coterminus with contracted duration of

Export(including AA for annual requirement) Coterminus with project execution or 12 months

contracted duration whichever is more.

of project execution

whichever is latter.

(iv) Other including CCP and DEPB unless 24 Months 18 months. All other Import Authorisations

otherwise specified. (including for Restricted items and CCP)

(v) Export Licence/Authorisation 12 months No change.

(However, EFC

may decide to issue

Export Authorisation

for a longer duration

in case of R&D

studies based on

recommendation of

technical authority)

Sr. Type of Authorisation Existing ProposedNo.

37

June - 2 012

1. FTP 3.10.4

2. FTP 3.16.1

3. FTP 3.16.3

4. FTP 3.16.3. NA

5. FTP 3.17.5 Allowed only under SFIS.


Privileges of Export and TradingHouse Status Holders :(iv) 100%retention of Foreign Exchange inthe EEFC Account

This clause has been deleted In line with the RBI regu-lations, 100% retention ofForeign Exchange in theEEFC account has beenremoved

Status holder of specified sectorswere entitled for duty free scripequivalent to 1% of FOB value ofexports for the period 2009-10, 10-11 and 11-12

Status holder of specified sectorswere entitled for duty free scripequivalent to 1% of FOB value ofexports for the period 2009-10, 10-11 , 11-12 and 12-13.

FOB Value of exports forthe period 2012-13 willalso be eligible for dutyfree scrip to the extent of1% of the FOB value ofexports

Under Status Holder IncentiveScheme, the duty scrip will besubject to actual user condition

The Status Holders Incentive Scripwill be subject to actual user condi-tion. However transferability will bepermitted amongst status holderssubject to the condition that the trans-feree status holder is a manufacturer.

The scrip can be trans-ferred to another statusholder who is the manu-facturer exporter.

Only in respect of CG imported ear-lier, upto 10% value of the DutyCredit Scrip can be used for importof components, spares/parts of suchCG.

It is now decided that upto 10% of the value ofthese scrips will be al-lowed to be utilized to im-port components andspares of capital goodsimported earlier.

Duty Credit Scrip can also be uti-lized for payment of Excise Duty ondomestic procurement of such itemsas permitted to be imported underrespective scheme.

Domestic procurementwill be against the debitsin duty free scrip which willnot be considered as NILrate of duty and there willbe no applicability ofreversal of CENVATAmount under Rule 6 ofCENVAT Credit Rules,therefore the exporterswhich are not underCentral Excise will bebenefitted .However,provisions of availinginput credit or dutydrawback needs to bemade otherwise it will bethe cost to thee x p o r t e r . S i m i l a r l y,necessary provisions /clarifications needs to beissued so as to enablemanufacturer / outputservice provider to availCenvat Credit andprovisions w.r.t. manner ofpayment in Central ExciseRules, 2002 andutil ization of CenvatCredit under Rule3(4)needs to beamended.

38

June - 2 012

1. FTP 4.1 Duty Entitlement Passbook (DEPB) - Discontinued for exports(b)(i) Scheme made on or after 1.10.2011

2. FTP 4.1.1 Goods exported under Advance Goods exported under The intimation to be givenAuthorisation / DFIA / DEPB may Advance Authorisation/DFIA to the RA issuing the AA/be reimported in same or substanti- DEPB may be reported in DFIA/DEPB.ally same form subject to DoR same or substantially samespecified conditions. form subject to conditions as

may be specified by DoR. TheRA which has issued AA/DFIA/DEPB, should also be keptinformed of such re-importationwithin one month of there-importation.

3. FTP 4.1.2 B = CIF value of inputs covered by B = CIF value of inputs covered by Calrity inserted to includeauthorisation, plus any other imported authorisation, pplus value of any for which BDK is notmaterial used on which benefit of other input used on which benefit claimed. Therefore nowDBK is claimed of DBK is claimed or intended to value addition criteria is

be claimed. automatically enhanced.

4. FTP 4.1.13 NA (c) Items reserved for exports by Now export of items(c) & STEs can be exported under advance resered for STEs can (d) Authorisation/DFIA only after also be made under

obtaining a ‘No Objection Certificate’ AA/DFIA subject tofrom the concerned STE. obtaining ‘No Objectiond) Import of restricted items shall be Certificate’ from theallowed under Advance Authorisation/ concerned STE.DFIA. Further, imports of

restricted items underAA/DFIA is allowed.

5. FTP 4.1.14 In case of an advance Authorisation, In case of an Advance Authorisation, Endorsement on Authori-drawback shall be available for any drawback shall be available for any zation by RA is necessaryduty paid material, whether imported duty paid material, whether imported if the Drawback is re-or indigenous, used in goods ex- or indigenous, used in goods exported, quired to be applied forported, as per drawback rate fixed as per drawback rate fixed by DoR, any duty paid material,by DoR, Ministry of Finance Ministry per drawback rate fixed by whether imported or(Directorate of Drawback). DoR, Ministry of Finance (Directorate indigenous.

of Drawback). Drawback shall however,be allowed only for such duty paiditems which have been endorsed onAuthorisation by RA.

6. FTP 4A.2.1 NA Foowing are authorized laboratories Authorized laboratoriesfor certification/grading of diamonds have been specified forof 0.25 carat and above : certification/grading ofi) Indian Dimond Institute, Surat, diamonds of 0.25 caratGujarat, and above(ii) American Gem Society Labora-tories (AGS Laboratories),8917West Sahara Avenue, Las Vegas,Nevada 89117;(iii) Central Gem Laboratory,Miyagi Building, 5-15-14 Ueno


39

June - 2 012


Taito-Ku, Tokyo, Japan;(iv) Diamond Trading Company,Maidenhead, UK;(v) European Gemological Laboratory(EGL), USA;(vi) Gemological Institute ofAmerica (GIA), USA,

(vii) Hoge Road Voor Diamond,

Antwerp, (HRD);(viii) International Diamond LaboratoriesDMCC, Dubai.(ix) The Robert Mouawad Campus,International Gemological Institute (IGI)USA; and(x) World Diamond Centre of DiamondsHigh Council, Antwerp, Belgium.

7. FTP 4A.2.2 An exporter (with annual export turn- Re-import within 3 monthsover of Rs 5 crores for each of the last by specified agencies/three years) may export cut & polished laboratories of exporteddiamond (each of 0.25 carat or more) cut & polished diamondsabroad to any of the above agencies/ (each of 0.25 carat or more)laboratories with re-import facility at are allowed with zero dutyzero duty within 3 months from the payment.date of export. Such facility of exportand subsquent re-import at zero dutywill be subject to guidelines issed byCBEC, Department of Revenue.

8. FTP 4A.8 Such supplies can also be in advance (b) Such supplies can also be in Value addition percentageadvance and involve semi-finished advance and may involve semi- has been reduced.jewellery including findings/ mountings finished jewellery including findings//components for repairs/ re-make mountings components for repairs/ Wastage percentage hasand export subject to minimum value re-make and export subject to been changed ranging from

minimum value addition as prescribed 0.25 to 7%addition of 1 0%. However, if so under para 4A.2.1 of HBP v1.imported semi finished gold/silver/ In such cases of export, wastageplatinum jewellery is exported as norms as per para 4A.2 shall apply.studded jewellery, value addition of15% shall be achieved. In such casesof export, wastage of 2 % may bepermitted.

9. FTP 4A.16 In case of exports through Foreign In case of exports through Foreign Now the value wisePost Office (including via Speed Post), Post Office (including via Speed Post), restriction has beenvalue of jewellery parcels shall not the jewellery parcels shall not exceed removedexceed US$ 75000 and 20 kg. by 20 kg. by weight.weight.

10. HBOP 4.7.1 In cases where NC has already ratified (b) In cases where NC has already Varatified of norm isnorms for same export and import norms for same export and import extended for two yearsporducts in respect of an authorization porducts in respect of an authorizationobtained under paragraph 4.7, such obtained under paragraph 4.7, suchnorms shall be valied for a period of norms shall be valied for a period ofone year reckoned from the date of two year reckoned from the date ofratification. ratification.

40

June - 2 012


11. HBOP 4.12 ---- (c) The export of SCOMET items shall (c) The export of SCOMETnot be permitted against an items will not be permittedAuthorisation application until and without obtaining Advanceunless the requisite SCOMET Authorisation unlike inAuthorisation is issued. case of other items where

exports are permitted on thebasis of file number.

12. HBOP 4.19.2 For imports from Airport / Seaport / ICD For imports from Airport / Seaport / ICD For EDI enabled ports of / LCS other than port of registration, / LCS other than port of registration, imports, the TRA shalla TRA shall be issued by the customs a TRA shall be issued by the customs not be requiredauthority at the port of registration to authority at the port of registration tocustoms authority at port of import customs authority at port of import,

However, this requirement of TRA shallnot be required if the port of registrationand port(s) of imports are EDI enabledand the authorisation holder has

registered its authorisation.

13. HBOP 4.25.5 Notwithstanding provisions of para No clubbing of authorisations issued Clubbing provisions4.20.3 and 4.20.4 above, Clubbing of on or before 31st March, 2004 shall restrictedall expired authorisations may also be be allowed. Further, no clubbing ofpermitted provided all expired authorisations covered underAuthorisations have been issued Appendix 30A of the HBPv1 orduring Exim Policy period 1992-1997 authorisations with less than 18& 1997-2002 i.e., 1st April 1992 to months EOP shall be allowed.31st March, 2002. However clubbingof erstwhile Value Based Advancelicences shall not be allowed.

14. HBOP 4.22 Fulfillment Period of EO under an (a) Fulfillment Period of EO under anAdvance Authorisation shall Advance Authorisation shall commence

commence from Authorisation issue from Authorisation issue date, unless

date, unless otherwise specified. otherwise specified. EO shall be fulfilled

EO shall be fulfilled within 36 months within 18 months except in case of

except in case of supplies to projects / supplies to projects / turnkey projectsturnkey projects in India / abroad in India / abroad under deemedunder deemed exports category, exports category where EO must bewhere EO must be fulfilled during fulfilled during contracted duration.contracted duration.EO period for (b) RA may consider a request ofAdvance Authorizations issued with Advance Authorisation holder for one

input (s) as mentioned in Appendix extension of EO upto six months from

30A shall be as per the period stipu- the EO expiry date subject to payment

lated against each entry therein. of composition fee of 0.5% of the

Facility of extension of EOP shall not shortfall in EO. (c) EO period for

be allowed in case of Advance Advance Authorizations issued withAuthorisation issued for these inputs. input (s) as mentioned in AppendixRA shall make an endorsement in 30A shall be as per the periodAdvance Authorisation to this effect. stipulated against each entry therein.

Facility of extension of EOP shall not beallowed in cases of Advance Authori-sations issued for these inputs ortransferable DFIA. RA shall make anendorsement in Advance Authorisation

EO period is reduced from36 month to 18 month.Further one time extensionof EOP is allowed onpayment of fee of 0.5% onshortfall in EO.

41

June - 2 012


to this effect. However, RegionalAuthority may grant extension of theExport Obligation Period beyond sixmonths on case to case basis afterensuring the conformity of imported teakept in stock for its re-export to thestandard of quality of tea stipulated inthe Tea (Distribution and Export)Control Order, 2005.

15. HBOP 4.24A(v)

Ad-

vance

Authori-

sation

for

Annual

Require-

ment

16. HBOP 4.29 On receipt of such documentary On receipt of such documentary Now intimation of paymentevidence from Authorisation holder, evidence from Authorisation holder, of duty can also be givenRA shall intimate details of recovery/ RA shall intimate details of recovery/ to Commissioner ofdeposits made to Customs Authority at deposits made to Customs Authority at Central Excise havingport of registration under intimation to port of registration or Commissioner of jurisdiction over theJoint Secretary (Drawback), as the case may be, under intimation factory of theDepartment of Revenue, Ministry of to Joint Secretary (Drawback), Depart - Authorisation holderFinance, Jeevan Deep Building, ment of Revenue, Ministry ofNew Delhi. Finance, Jeevan Deep Building,

New Delhi.

42

June - 2 012

1. FTP / 5.1 ofHBoP FTP

& 5.1A ofHBoP


Chaper 5 :

2. FTP 5.1FTP

Zero duty scheme shall also not beavailable for units who are currentlyavailing any benefits underTechnology Upgradation FundScheme (TUFS) administered byMinistry of Textiles, Government ofIndia. Zero dutyEPCG scheme shall also not beavailable to applicants,who avail in that year, the benefit ofStatus HolderIncentive Scheme underParagraph 3.16 of FTP.

Zero Duty Scheme shall also beavailable to such exporters whomay have obtained benefit underTUFS

(i) but the exact line of business inTUFS (say cotton yarn) is differentfrom the line of business underEPCG (say machinery for blastfurnace); or

(ii) if the exporter refunds suchbenefits availed under TUFS withapplicable interest, before availingEPCG

Zero duty EPCG scheme shall notbe available to exporters, who availin that year, the benefit of StatusHolder Incentive Scheme underParagraph 3.16 of FTP. In case theyhave already availed SHIS benefitthey would be eligible for Zero DutyScheme if they surrender or refundSHIS on similar lines as given at (e)(ii) above.

Beneficial for entit ieshaving multiple line ofbusinesses where underthe existing provisionsbenefit under Zero DutyEPCG was denied on theground that benefit underTUFS was availed thoughfor totally differentproduct.Also flexibility has beenbuilt in for businessentities to deal with thechanges in businessplans and expansionplans by allowing theentities to shift to mostbeneficial scheme andpay back the earlierbenefits along withinterest.

Validity of Zero Duty EPCG Schemewas in operation upto 31st March2012

Validity of Zero Duty EPCG Schemewas in operation upto 31st March2012

During the period 1st April2012 to 4th June 12,Authorisations wereissued only under 3%EPCG. As a resultsubstantial investmentsduring this period havetaken place at highercosts. It is necessary tointroduce a circular forremission / refund of theduties paid on suchimports. otherwise theyshould be entitled forequivalent duty creditscrip as introduced in thisForeign Trade Policysubject to willingness tochange the exportobligation under zero dutyscheme.

3. FTP 5.2 AFTP

Spares (including refurbished/reconditioned spares), moulds,dies, jigs, fixtures, tools, refractoryfor initial lining and catalyst forinitial charge; for existing plant and

Spares (including refurbished/re-conditioned spares), moulds,dies, jigs, fixtures, tools, refractoryfor initial lining and catalyst for ini-tial charge as well as catalyst for

Presently under EPCGscheme, catalysts areallowed only once for theinitial charge. It has beendecided to permit a

43

June - 2 012


machinery (impor ted earlier,under EPCG or otherwise), shallbe allowed to be imported underthe EPCG scheme subject to anexport obligation equivalent to50% of the normal exportobligation prescribed in para 5.1and 5.2 above (for import of capitalgoods), to be fulfilled in 8 years (6years for zero duty EPCGscheme), reckoned fromAuthorization issue date. Thiswould however be subject to thecondition that the c.i.f. value ofimport of the above spares etc. willbe limited to 10% of the value ofplant and machinery importedunder the EPCG scheme. In caseof plant and machinery notimported under the EPCGscheme, c.i.f. value of import of thespares etc. will be limited to 10%of the book value of the plant andmachinery.

subsequent charge upto a maxi-mum 2 times during Export Obli-gation Period (EOP); for existingplant and machinery (importedearlier, under EPCG or otherwise),shall be allowed to be importedunder the EPCG scheme subjectto an export obligation equivalentto 50% of the export obligation pre-scribed in para 5.1 and 5.2 above(for import of capital goods), to befulfilled in 8 years (6 years for zeroduty EPCG), reckoned from Autho-rization issue date. This would how-ever be subject to the condition thatthe c.i.f. value of import of theabove spares etc. will be limited to10% of the value of plant and ma-chinery imported under the EPCGscheme. In case of plant and ma-chinery not imported under theEPCG scheme, c.i.f. value of importof the spares etc. will be limited to10% of the book value of the plantand machinery.

second charge of thecatalysts.

Now, catalysts importedsubsequently are allowedto be imported underAdvance Authorizationscheme as well as underEPCG Scheme at theoption of exporter.

It is advisable to considerimport under import ofcatalyst under EPCGscheme for the subsequentcharge rather than underAdvance Authorizationscheme.

4. FTP 5.2 A NA(b)

EPCG Scheme will not beapplicable for import of spares inrespect of capital goods sourcedindigenously.

Specific provision hasbeen inserted in FTP inorder to ensure clarity. Inother words noinvalidation will beallowed for procurementof spares under EPCGfrom domesticmanufacturer.

5. FTP 5.3 (i) EPCG licence to be given tothe Common Service Provider(CSP) should have a clearendorsement giving the details ofthe users and the quantumofExport Obligation (EO) whicheach user would fulfill;(ii) Suchexports will not count towardsfulfillment of other specific exportobligations ; and(iii) Each one ofthe users of the CSP apart fromthe CSP should furnish 100%Bank Guarantee (BG) equivalentto their portion of duty foregoneapportioned in terms of quantumof EO to be discharged by themand the B.G. will be enforced inthe event of the obligation notbeing fulfilled.

(i)Exports by Users of thecommon service, to be countedtowards fulfillment of EO of theCSP shall(i) contain the EPCG

Authorization details of theCSP in the respectiveShipping bills and

(ii)concerned RA must beinformed about the details ofthe Users prior to suchexport;(ii) Such exports willnot count towards fulfillmentof other specific exportobligations; and

(iii) Bank Guarantee (BG) shallnot exceed the duty saved. BGcan be given by CSP or byany one of the users or acombination thereof, at theoption of the CSP.

Requirement giving thequantum of ExportObligation (EO) whicheach user of CSP wouldfulfil has been removed.

Now the user will berequired to give details ofEPCG Authorisation intheir shipping bills.

Requirement of BG to begiven by each user in ratioof EO undertaken hasbeen removed. Now BGcan be given Individuallyor in any combination ofuser or by CSP.

44

June - 2 012


6. FTP 5.8 (i) Minimum time period forapplying for TechnologicalUpgradation of existing capitalgoods imported under EPCG is 5years from Authorization issue-date.

(ii) Minimum exports made underold capital goods must be 40% oftotal export obligation imposed onfirst EPCG Authorization.

(a) Minimum time period forapplying for ‘TechnologicalUpgradation’ is 5 years fromearlier EPCG Authorization issue-date.

(b) Minimum exports made mustbe 40% of total export obligationimposed on earlier EPCGAuthorization(s)..

Logical changeestablishing correlationbetween the items appliedunder TechnologicalUpgradation and therespective original EPCGagainst which the importswere made.

7. FTP 5.8(e) Capital Goods to be imported mustbe new and technologicallysuperior to earlier CG

Capital Goods to be imported mustbe new and technologicallysuperior to earlier CG (to becertified by Chartered Engineer).

CE Certif icate will berequired to justify thatcapital goods are superiorto earlier capital goods.

8. FTP 5.10 NAFTP &5.24ofHBoP

For exporters of Green TechnologyProducts, Specific EO shall be75% of EO as stipulated in Para5.1 or Para 5.2, as applicable.There shall be no change inaverage EO as stipulated in Para5.5, if any. The list of GreenTechnology Products is given inPara 5.24 of HBP v1.

(i) Equipment for Solar Energydecentralized and grid connectedproducts,

(ii) Bio-Mass Gassifier,

(iii) Bio-Mass/Waste Boiler,

(iv) Vapour Absorption Chillers,

(v) Waste Heat Boiler,

(vi) Waste Heat Recovery Units,

(vii) Unfired Heat Recovery SteamGenerators,

(viii) Wind Turbine,

(ix) Solar Collector and Partsthereof,

(x) Water Treatment Plants,

(xi) Wind Mill, Wind Mill Turbine /Engine,

(xii) Other Generating Sets - Windpowered,

(xiii) Electrically Operated Vehicles– Motor Cars,

(xiv) Electrically Operated Vehicles- Lorries and Trucks,

(xv) Electrically Operated Vehicles– Motor Cycles/Mopeds, and

(xvi) Solar Cells.

Concession to the extentof 25% on exportobligation is given toexporter of greentechnology products.

45

June - 2 012


9. FTP 5.11 NA Post Export EPCG Duty Credit

Scrip(s)

(a) EPCG Duty Remission Schemeshall be available to exporters whointend to import / procure capitalgoods on full payment of applicableduties and choose to opt for thisscheme.

(b) Duty paid on Capital Goods(excluding por tion CENVATed /Rebated) shall be remitted in theform of freely transferable dutycredit scrip(s).

(c) Specific EO under this Schemeshall be 85% of the applicablespecific EO, if the imports of suchCapital Goods had taken benefit ofduty exemption. Average EOcontinues to remain unchanged.

(d) Duty remission shall be inproportion to the EO fulfilled.

(e) These Duty Credit Scrip(s) canbe used for payment of applicablecustom duties for imports andapplicable excise duties fordomestic procurement.

(f) All provisions of the existingEPCG Scheme shall apply insofaras they are not inconsistent with thisscheme.

This scheme is a proactivemove to support thebusiness entities to dealwith uncertainties in theGlobal markets due towhich the exporters wereexposed to interest andpenalty for non-fulfilment ofobligation.

This being a post exportscheme, exporter wouldhave scope to decide thebenefits to be availedbased on actual exportsdone instead of projectedexport. The wordings of theprovisions are such thatEOU which are in theprocess of exiting underEOU scheme may not beallowed under Post ExportEPCG Scheme. Necessaryclarification to this extentwould be required toexpedite the process of de-bonding of EOUs.

10. FTP 5.12 NA For units located in ArunachalPradesh, Assam, Manipur,Meghalaya, Mizoram, Nagaland,Sikkim and Tripura, Specific EO shallbe 25% of the EO, as stipulated inPara 5.1 or Para 5.2, as applicable.There shall be no change in averageEO as stipulated in Para 5.5, if any

Units located in North Eastwill get concession of 75%in Export Obligation.

11. HBoP 5.7.6 Certain Categories of exporterssuch as Handicraft, Handlooms,cottage, etc…were not required tomaintain average exports

Three new category of exportersw.r.t carpets, coir and jute are addedto the category list and not requiredto maintain average exports.

12. HBoP 5.23 NA Procedure for Post ExportEPCG duty scrip has beenprescribed.

(a) Exporters can exercise thisoption by filing an application inANF5A with the concerned RA,selecting an option for this Scheme.

(b) For importing or procuringCapital Goods, all applicable dutiesshall be paid by the exporter.

(c) RA shall issue an Authorizationspecifying

46

June - 2 012


(i) “Not for imports” on the body ofthe Authorization;

(ii) Average EO, if any;

(iii) Specific EO @ 85% of theapplicable specific EO, computedas if the imports were to take thebenefit of duty exemption; and,

(iv) EOP, which shall commencefrom the Authorization issue date.

(d) Exporter can file request, inANF5B, for issuance of DutyCredit Scrip(s) in proportion to theEO completed within the specifiedEOP. Only for first such applicationproof of actual duty payments onCapital Goods (including proof ofduty cenvated or otherwise),nexus and installationcertificate(s) of Capital Goodsshall be submitted alongwithproof of fulfi lment of EO.Subsequently, only proof offulfi lment of EO additionallycompleted vis-à-vis specific EOfixed (as in c(iii) above) may besubmitted, unless there has beenany changes in documents /proofs submitted earlier.

(e) RA shall issue freelytransferable duty credit scrip(s)equivalent to proportionate EOfulfilled.

(f) The computation of freelytransferable duty credit scrip(s)will be based on duty paid amount(not cenvated), instead of dutysaved amount.

(g) Duty Paid amount willevidenced from the Bill of Entry/Central Excise Gate Pass (in caseof sourcing under Para 5.6 of FTP)alongwith proof of Cenvatavailment or otherwise.

(h) All provisions of the existingEPCG Scheme shall apply insofaras they are not inconsistent withthis scheme.

47

June - 2 012

To conclude we give below the ready reference for different type of scheme for capital goods and spares.

Sector All sectors except All All(i) Chapters 1, 2, 4 to 24, 25 to 27, 31, 43, 44(except plywood and allied products),45, 47, 68, 71, 81 (metals in primary andintermediate forms only), 89, 93, 97, 98.(ii) ITC(HS) 4011 to 4013, ITC(HS) 7401to 7406, 7501 to 7504, 7601 to 7603, 7801,7802, 7901 to 7903, 8001, 8002 and 8401.However, zero duty EPCG Scheme will beavailable for handicraft exports underChapters 5, 68, 97.(iii)Existing scrip holder under TUFS, SHIS.

Export Obligation 6 years 8 years 8 yearsPeriod

Export Obligation 6 time of duty saved 8 times of duty saved 6.8 times of duty paid andother than Units duty free scrip obtainedlocated in NorthEastern States

Export Obligation 1.5 time of duty saved 2 times of duty saved 1.7 times of duty paidfor Units locatedin North EasternStates

Maintenance of Yes except for Handicraft, Handloom, Cottage Yes except for Hand Yes except for Handicraft,Average Export Sector, Tiny Sector, Agriculture, Aquaculture, icraft, Handloom, Handloom, CottageCondition Horticulture, Viticulture, Poultry, Sericulture, Cottage Sector, Tiny Sector, Tiny Sector,

Carpets, Coir and Jute. Sector, Agriculture, Agriculture, Aquaculture,Aquaculture, Horticulture, Viticulture,Horticulture, Poultry, Sericulture,Viticulture, Poultry, Carpets, Coir and JuteSericulture, Carpets, Coir and Jute

Non fulfillment Payment of duties proportionate to non Payment of duties No such specific conditionof Export fulfiment of Export obligation proportionate to specified since duty freeObligation non fulfiment of scrip is given in

Export obligation proportion of exportfulfillment.

Particulars Zero Duty 3% Duty Post Export EPCG Scrip

48

June - 2 012

1. FTP 8.2 NACateories (d)

Supply


(iii) A list of such Agencies / Funds,as notified by DEA, MoF, is given inAppendix 13 of HBP, Vol. I ;

List of agencies is notifiedfor deciding the eligibilityof deemed export benefitsw.r.t. projects notified bysuch agencies to havebetter clarif ication oneligibility.

2. 8.2 (e) Supply of capital goods,including in unassembled /disassembled condition as wellas plants, machinery,accessories, tools, dies andsuch goods which are used forinstallation purposes till stageof commercial production, andspares to extent of 10% of FORvalue to fertilizer plants

The Notificationmentioned in clauseelsewhere and thereforclause not needed andthe fertiliser plant willcontinue to get thebenefit.

Deleted

3. 8.2 (g) Supply of goods to powerprojects and refineries notcovered in (f) above;

Deleted Restriction on deemedexport benefits for powerprojects and only specifiedpower projects are eligibleas are either under ICB ormega power projects asmentioned

4. 8.2 (j) Supply of goods to nuclearpower projects throughcompetitive bidding as opposedto ICB.

Supply of goods to nuclear powerprojects through competitivebidding as opposed to ICB. Supplyof only those goods required forsetting up any Nuclear PowerProject as specified in list 33, S.No. 511 of Notification No. 12/2012-Customs dated 17.3.2012,as amended from time to time,having a capacity of 440MW ormore, as certified by an officer notbelow rank of Joint Secretary toGovernment of India, inDepartment of Atomic Energy,shall be entitled for deemed exportbenefits, in cases whereprocedure of competitive bidding(and not ICB) has been followed.

Restriction w.r.t. goods onwhich deemed exportbenefits would be eligiblefor supplies to nuclearpower projects

5. FTP- Supplies 8.6.2

to be made by

the main/

sub-

contractor

Supplies made by an Indiansub-contractor of an Indian orforeign main contractordirectly to the designatedprojects / Agencies, shall alsobe eligible for deemed exportbenefits provided sub-contractor is indicated eitheroriginally or subsequently inthe contract, and payment

Supplies made by an Indian sub-contractor of an Indian or foreignmain contractor directly to thedesignated projects / Agencies,shall also be eligible for deemedexport benefits provided name ofsub-contractor is indicated eitheroriginally or subsequently in themain contract (but before the dateof supply of such goods) andpayment certificate is issued by

Condition –

Name of the sub-contractor has to beindicated in the contractbefore the date of supplyof such goods.

49

June - 2 012


certificate is issued by projectauthority in the name of sub-contractor as in Appendix 22Cof HBP v1.

project authority in the name of sub-contractor as in Appendix 22C ofHBP v1.

6. 8.8.1 NA On ‘Cement’, deemed expor tbenefits shall be available forsupplies under Para 8.2(d) only.

7. 8.8.2 NA On ‘Steel’, deemed export benefitshall be available only for supply(a) under Para 8.2 (d); or(b) as an input under an AdvanceAuthorization/Annual AdvanceAuthorization/DFIA; or(c) as an input to an EOU for makinggoods.

8. 8.8.3 NA On ‘Fuel’, deemed export benefit isavailable only for supplies to(a) petroleum operations under Sr.No. 356, 358 to 360 of CustomsNotification No.12/2012 – Cusdated 17.03.2012, Para 8.2 (f) ofFTP; or(b) to EOUs; or(c) to Advance Authorization holder/Annual Advance Authorizationholder.

It is welcome provision toreduce cost of export tothe extent of duties onfuel.

9. HBoP 8.2.2 In respect of supplies underparagraph 8.2(b) of FTPandDFIA, deemed exportbenefits may be claimed fromDC orRA concerned

In respect of supplies underparagraph 8.2(b) of FTP, deemedexport benefits may be claimed byan EOU from jurisdictional DC. ADTA unit shall claim benefit from RAconcerned.

Clar ity made w.r.tauthorities for grantingdeemed duty drawbackfor EOUs.

10. HBoP 8.3.1

(ii)

In case of supplies underparagraphs 8.2(a), (b) & (c) ofFTP, claim shall be filed againstreceipt of payment throughnormal banking channel as inAppendix 22B. Claims shouldbe filed within a period of twelvemonths from the date ofpayment. In cases wherepayment is received inadvance, last date forsubmission of application maybe correlated with date ofsupply instead of date of receiptof payment. Claim can be filed‘Invalidation Letter / ARO wise’against individualAuthorisations within the timelimit as specified above. 100%

In case of supplies underparagraphs 8.2(a), (b) & (c) of FTP,claim shall be filed against receiptof payment through normal bankingchannel as in Appendix 22B. Claimsshould be filed within a period oftwelve months from the date ofpayment. In cases where paymentis received in advance, last date forsubmission of application may becorrelated with date of supplyinstead of date of receipt ofpayment. Claim can be fi led‘Invalidation Letter / ARO wise’against individual authorisationswithin the time limit as specifiedabove. Deemed export benefitsmay be allowed after 100%supplies have been made. Grant of

Provision w.r.t T.E.Dpayment on receipt of90% has been removed.

50

June - 2 012


TED refund may be allowedafter 100% supplieshave beenmade physically and paymentreceived at least up to 90%.However, grant of deemedexport duty drawback will belimited to the extent ofpaymentreceived.

deemed export benefit will belimited to the extent of paymentreceived.

11. HBoP 8.3.1

(iv)

In respect of supplies undercategories mentioned inparagraphs 8.2(d), (e), (f), (g),(h), (i) & (j) of FTP, claim may befiled either on the basis of proofof supplies effected or paymentreceived. Claims should befiledwithin a period of twelvemonths from date of receipt ofsupplies by project authority orfrom date of receipt of thepayment as per the option ofapplicant, either against aparticular project or all theprojects. Claims may also befiled where part payments havebeen received. 100% TEDrefund may be allowed after100% supplies have beenmade physically and paymentreceived at least up to 90%.However, grant of deemedexport duty drawback will belimited to the extent of paymentreceived.

(iv) In respect of supplies undercategories mentioned inparagraphs 8.2(d), (f), (h), (i) & (j) ofFTP, claim may be filed either onthe basis of proof of supplieseffected or payment received.Claims should be filed within aperiod of twelve months from dateof receipt of supplies by projectauthority or from date of receipt ofthe payment as per the option ofapplicant, either against a particularproject or all the projects. Claimsmay also be fi led where partpayments have been receivedDeemed export benefits may beallowed after 100% supplies havebeen made. Grant of deemed exportbenefit will be limited to the extentof payment received.

Provision w.r.t T.E.Dpayment on receipt of 90%has been removed.

Other Points:

i. Status holders exporting products under ITC (HS)Chapter 1 to Chapter 24 (both inclusive) areprovided Duty Credit Scrip equivalent to 10% ofFOB value of agricultural products so exported.These scrips are issued for import of CapitalGoods and equipments for Cold Storage Units,Pack-houses etc. Now these scrips will be

eligible for import of 14 specified equipments

for setting up of Pack-houses and which

includes :

The 14 equipments are: Packing gradingequipments for fruits and vegetables, Equipmentsfor ripening of fruits including ethylene generator,Adiabatic humidifies for cold rooms, Gas sensorand controlled system covering CO2, ethylene and

oxygen levels, ethylene scrubbers, CO2Scrubbers, Blast freezers for IQF plants, Doorsfor gastight rooms, applications like CA, Banana/fruit ripening, Nitrogen generators, Gas controllingsystems for CA stores, Bulk bins for CA stores,Reach stakers for cold stores and warehouses,Belt driven conveyors for bulk handling of cargo,Gantry cranes, unloading, mechanized loaders forbulk and break bulk cargo

ii. Export of specified products through notified LandCustoms Stations of North Eastern Region shallbe provided additional incentive to the extent of1% of FOB value of exports. This benefit shall bein addition to any other benefit that may beavailable under Foreign Trade Policy in respect ofthese exports.

51

June - 2 012

In other words, exporters of the North EasterRegion necessarily have to export through LandCustoms Stations of North Eastern Region andnot through any other ports or airports to availadditional incentives.

iii. 3 new towns are being declared as Towns ofExport Excellence (TEE). These are Ahmedabad(Textiles), Kolhapur (Textiles), and Shaharanpur(Handicrafts)

iv. 7 new markets are being added to Focus MarketScheme (FMS). These countries are Algeria,Aruba, Austria, Cambodia, Myanmar, NetherlandAntilles, and Ukraine v. 7 new markets are beingadded to the Special Focus Market Scheme (SpecialFMS). These countries are Belize, Chile, El Salvador,Guatemala, Honduras, Morocco, and Uruguay.

vi. 46 new items are being added to Market Linked

Focus Product Scheme (MLFPS). This would have

the effect of including 12 new markets for the first

time.

vii. Market Linked Focus Products Scheme (MLFPS)

is being extended till 31st March 2013 for export

to USA and EU for the textile sector in respect of

items falling in Chapter 61 and Chapter 62.

viii. 110 new items are being added to the Focus

Product Scheme (FPS) list.

ix. 2 new items are being added to VKGUY. These

are roasted cashew kernel, and protein

concentrates & textured protein substances.

n n n

Other change

1. General

Two per cent Interest Subvention Scheme wasavailable only to Handlooms, Handicrafts, Carpetsand SMEs till 31st March 2012. Now this wouldbe continued till 31st March 2013. It is also beingextended to labour intensive sectors, namely,Toys, Sports Goods, Processed AgriculturalProducts and Ready-Made Garments, in additionto four sectors benefitting from the scheme earlier.

2. Re-writing of FTP / HBP to make it more user-

friendly

DGFT has undertaken a through revision ofForeign Trade Policy / Handbook of Procedures,Vol.1 to make it more user-friendly. Substantialefforts have been made to remove ambiguities inlanguage, delete repetitions and harmonise thetext with amendments to policy and new policyannouncements.

3. Simplification of Procedures

l Exports shipments from Delhi & Mumbaithrough Post, through Courier or through e -

Commerce shall be entitled for export benefitsunder FTP. An Inter-Ministerial Task Forceconstituted by the Ministry of Finance wouldexpeditiously look into various aspects to thefeasibility of enabling shipments through allpostal locations.

l Exporters will be henceforth permitted to givesingle revolving Bank Guarantee for differenttransactions.

4. Export proceeds against specific exports to Iranrealized in Indian rupees are permitted to availexports benefits/ incentives under the ForeignTrade Policy, 2009-14, at par with export proceedsrealized in freely convertible currency. [Para 2.40A]

5. Service Providers in Telecom Sector, ServiceProviders of Airlines / Shipping line ServiceProviders providing services from plying from anycountry x to any country y routes, not touchingIndia can now be eligible for the entitlements ofbenefits under the SFIS Scheme. [Para 3.6.1HBPv1 read with Para 3.12.3 of FTP]

n n n

52

June - 2 012

CENTRAL EXCISE

Ø Cases involving High Stake Revenue : In allthe case where there is high stake revenueinvolved and then High Court imposing cost wherethere is delay on the part of the Department andshould examine the cases on merits and shouldnot dispose of cases merely on the ground of delay.[2012(279)E.L.T. 3 (S.C.)]

Ø Inconsistent interim Orders passed by the

CESTAT Bench : Inconsistent interim Orderspassed by the CESTAT Bench having one membercommon to Bench involving identical issue. OnceOrder passed in the other case and brought tonotice of the CESTAT, then CESTAT should haveinvoked Rule 41 of the Custom, Excise and Gold(Control) Appellate Tribunal (Procedure) Rules,1982 in interest of justice and for securing ends ofjustice. Inconsistent Orders will shake faith of acitizen in impartiality of Tribunal/ Judicial forums.Consistency in rendering judgments or interimOrders is integral element of the legal proprietyand judicial discipline. Therefore, matter remandedback to the CESTAT for fresh consideration [2012(279)E.L.T. 21(H.P.)]

Ø Cenvat credit on damaged inputs : Cenvat crediton inputs, damaged due to fire not available to theassessee as no evidences adduced before theadjudicating authority who completedadjudication. Appeal dismissed in this matter asfresh / new evidences at second appellate stageis not permissible. [2012(279) E.L.T. 109(Tri.Del.)]

Ø Removal of inputs or capital goods as such to

sister units : When inputs or capital goods areremoved as such to assessee’s sister unit andwhere no sale is involved, the cenvat credit availedby the assessee is required to be reversed.Revenue’s contention that assessee should havepaid duty on said inputs by adopting assessablevalue as 115% of cost of production of such goodsis rejected by the Commissioner (Appeals) relying

on C.B.E.C Circular F. No. 643/34/2002 – Cx dated01.07.2002 wherein it has been clarified that thevalue shown in the invoice on basis of which creditwas taken by assessee in the first place is to beadopted. Revenue cannot argue against its ownCircular. [2012(279)E.L.T.68 (Tri.-Ahmd.)]

Ø Cenvat credit not admissible on the raw

material which found unsuitable and cleared

as scrap: Assessee is not entitled for Cenvatcredit on the raw material which found unsuitablebefore being put to use in assessee’s factory andcleared as scrap. Since, such raw material is notused in or in relation to manufacture of the finalexcisable goods Department has rightly deniedthe cenvat credit on such raw material, which wasupheld by the Tribunal. Assessee had filednecessary declaration before clearing of thedisputed goods and intimated to the Departmentby letter regarding clearing thereof as scraptherefore, there is no suppression with intent toevade duty on the part of the aseessee and hence,penalty set aside. [ 2012(279)E.L.T.103(Tri.Mumbai)]

Ø Certificate issued by the Superintendent

without having authority : Deemed creditclaimed under compounded levy scheme on thebasis of certificates issued by Superintendent ofCentral Excise expressing satisfaction aboutpayment of duty on the goods further late paymentof compounded levy duty by input supplier wasnoticed and it was found that superintendent wasnot competent to issue the certificates relied upon,not being an Adjudicating Authority or CentralExcise Officer as statutorily defined. Departmentwas directed to take appropriate action against theofficer. [2012(279) E.L.T. 126(Tri,Del.)]

Ø Tribunal to understand factual scenario before

deciding matter : While deciding any matter,

Tribunal is expected to understand factual scenario

regarding disputed goods before applying law on

53

June - 2 012

the issue. Counter claim made by the Parties also

needs to be considered and dispute decided

without going to core issue merely on the reliance

of precedent decision may not give an appropriate

conclusion. [2012 (279) E.L.T. 161(S.C.)]

Ø No interest payable when wrongly taken credit

reversed before utliization: The assessee had

wrongly availed the Cenvat Credit on capital goods

and before the credit was taken or utilized,

assessee accepted the mistake and immediately

reversed the entry. Since, Assessee had not taken

benefit of wrong entry in their accounts books,

there was no liability to pay interest. Once entry

was reversed it is as if that cenvat credit was not

available or it amounts to not taking credit on

inputs. Without liability to pay duty the liability to

pay interest would not arise. [2012(279) E.L.T. 209

(Kar.)]

Ø Demand raised only on the statement of input

supplier: Department raised demand merely on

the statement of input supplier that he has neither

manufactured the goods nor supplied to assessee.

Department did not bother to investigate in this

matter. Therefore, in the absence of any

corroborative evidence, the case cannot be made

merely on the statement of the input supplier.

[2012(279)E.L.T. 306 (Tri. Del.)]

Ø Input credit taken and utilized on the final

dutiable product: Once the input credit is legally

taken and utilized on the dutiable final product, it

need not be reversed on the final product being

exempted subsequently. [2012(279)E.L.T.

194(H.P.)]

Ø Cenvat credit allowable on the strength of

invoice not bearing mode of transport/ vehicle

Number: As per Rule 9(2) of the Cenvat Credit

Rules, 2004 if concerned officer is satisfied that

the goods have been received in the factory then

for the contravention of non mention of vehicle

number is not to be held as contravention and

therefore, Cenvat credit is admissible. [2012(278)

E.L.T. 505 (Tri. Del.)]

Ø Value of clearances of two units not clubbable

even when under same management and

entire production sold to other unit: Two units

were in existence prior to Notification No. 175/86-

CE therefore there is no reason for the said units

to be considered as dummy units to avail benefit

of SSI exemption. Clubbing of two units cannot be

made on the premise that assessee sold/ cleared

their entire production to other units. [2012(278)

E.L.T. 526 (Tri. Ahmd.)]

Ø Samples drawn only at one branch: Samples

were drawn only in respect of products dealt with,

after repacking by the appellants, at Calicut and

test results of the Chemical Examiner were in the

favour of the assessee in respect of several

products and in respect of two products, the results

were against them. In the absence of any

investigation at other branches, no presumption

could be made that the products cleared from the

said branches would fall under Tarriff heading

3206.90 and therefore the clearances from the said

branches were required to be added to the value

of clearances from Calicut branch for the purpose

of determining the exemption limit under Not. 1/93

dated 28.02.93. The burden to prove the

classification of the product is on the Department.

[2012(278) E.L.T. 500(Tri.Bang.)]

Ø Advocates have no right to go on strike:

Advocates do not have right to abstain from

appearing in court in cases in which they hold

vakalatnama for parties, even if it is in response

to or in compliance with decision of any association

or body of lawyers. All lawyers must boldly refuse

to abide by any call for strike or boycott. Litigant

has fundamental rights for speedy trial of his case

under Article 21 of the Constitution of India.

Advocates are part and parcel of the judicial

system as such they are the foundation of the

justice- delivery system. Hence Hon’ble Supreme

Court has directed that all the Bar Associations

in the country shall implement the resolution dated

29.09.2002 passed by the Bar Council of India and

54

June - 2 012

under section 34 of the Advocates Act, the High

Court would frame necessary rules so that

appropriate action can be taken against defaulting

advocates. [2012 (279) E.L.T. 168 (S.C)]

Ø Illegal raid by the Commissioner conspiring

with Superintendent: Commissioner of CentralExcise conspiring with middleman andSuperintendent to demand bribe frombusinessmen by conducting illegal raid on theirpremises. After verification in this matter no reasonfound to disbelieve, statements recorded undersection 164 of the Code of Criminal Procedure,1973, of the other Superintendent, drivers andmiddleman and transcript of phone conversationbetween accused before and after raid prima facieindicates plan to extort money from businessmenunder fear of raid. Bail is rejected by the Hon’bleHigh Court, Delhi to the accused in this matter, onthe ground that the accused were senior officersof Central Excise Department and if they releasedon bail they would be able to influence thewitnesses. [2012(279) E.L.T. 8(Del.)]

Customs

Ø Correlation between imported material and

exported goods is not required under DFIA :

Once, Joint DGFT passed Order in favour ofimpor ter in respect of Duty Free ImportAuthorization and when revenue did not seekreview by the DGFT, as prescribed under para 9of Handbook of Procedures, then Customs cannot challenge the validity of the DFIA. Once DFIAis transferred, the transferee will import thematerial with the characteristics that importerrequires, subject to other restrictions in licencewithout any burden to verify characteristics ofmaterials used in goods already expor ted.Correlation between imported material andexported goods is not required.[2012(279) E.L.T.113 (Tri.Del.)]

Ø Conspiracy by the Customs Officers :

Conspiracy by the Customs Officers formisappropriation of Rs. 80 lakhs of Governmentfunds for reward for informer. They also fabricatedevidences for payment of reward to informers byshowing payment to non-existing informer.Accused manipulated information slip, payment

vouchers, dispatch registers of officers, destroyedoriginal DRI-I and minutes of final RewardCommittee Meeting.Testimony of informerrevealed game plan of accused to deprive him ofhis legitimate reward amount by pacifying him witha paltry sum. In view of this Collector and two othercustoms Officers (accused) convicted andpunished for offences under Section 120-B, 409,201,467,471 and 477A of Indian Peanl Code, 1860and Section 13(2) read with 13(1)(c) and 13(1)(d)of Prevention of Corruption Act, 1988 andsentenced to imprisonment of two years and fines.[2012(279)E.L.T. 27 (DJ)]

Ø No interest can be recovered in absence of

provision and issue of SCN: Provision for

charging interest is a substantive provision and can

be charged only if the statute makes a substantive

provision in that regard - provisional assessments

are governed by Section 18 of the Customs Act

and at the relevant time i.e. when the assessments

were finalized there was no provision for recovery

of interest therein inasmuch as it was inserted on

13/7/2006 – interest not chargeable u/s 28AA as

no SCN has been issued u/s 28(1) of the Act –

Revenue appeal dismissed: [paras 4, 5, 6] :

BOMBAY HIGH COURT [2012-TIOL-407-HC-

MUM-CUS]

Ø Exemption to supplies made to ICB: CustomsNotification 21/2002-Cus does not provide anycondition that the benefit is available subject to theprovisions of the Exim Policy. prima facie benefitof notfn. 6/2006-CE cannot be denied in respect ofsupplies made under International CompetitiveBidding – Pre-deposit waived of adjudged dues andStay granted - Stay petition allowed:MUMBAICESTAT [2012-TIOL-603-CESTAT-MUM]

Service Tax

Ø Revenue sharing not subject to Service Tax :

BCCI and appellant are jointly undertaking a

business venture where there may be loss or profit,

payment made to appellant in this regard not for

the service but towards share of central receipt

for Media Rights and other income, used Board

Circular no 109/3/2009–S.T., dated 23.2.2009 in

55

June - 2 012

case of film distributor’s and exhibiting films on

revenue sharing arrangement clarified that neither

party is providing service to other and here no case

for pre-deposit from appellants on this made out.

[2012(26) S.T.R. 362 (Tri-Del.)]

Ø Payment to players taxable as Business

Promotion activity: Service Tax on account of

payment made to company in Sri Lanka for signing

up the foreign players, the service is classified as

“Business Auxiliary Service” and for this

classification it is necessary to conclude that

players are providing input services to appellant.

And payment made to players, taxable as

“Business Promotion Activity”, in both matters only

10% of payment made is considered -Direction

for pre-deposit. [2012 (26) S.T.R. 362 (Tri-Del)]

Ø Repair and maintenance of air: conditioning plant

of office /factory eligible for input service credit:

Air-conditioning of the office space and repair and

maintenance services availed for same have

nexus with appellant’s manufacturing business,

eligible for input service credit. [2012 (26) S.T.R.

333 (Tri – Del.)]

Ø Liability to pay Service tax mutually shiftable

from service recipient to service provider: As

per agreement between the parties service

provider accepted liability to pay Service Tax,

since it arose out of discharge of their obligation

under contract, Though amendment of 2000 put

the liability to pay Service Tax on service recipient,

it arose out of services rendered prior to

amendment when liability was on service provider;

There was nothing in law to prevent the parties

from agreeing that burden of tax arising under

contract would be borne was such a clause cannot

be read to mean that service provider was liable

only to honor their own tax liabilities and not those

arising out of the contract also it was accepted

commercial practice to shift such liability to service

provider. [2012(26) S.T.R. 289 (S.C.)]

Ø Service of order by speed post not a valid

mode of service : Sending of order by “Speed

Post” is not a sufficient compliance, Order is to be

served on the assessee or his agent sending it by

registered Post A.D. or by other modes of service

specified in related provisions, Tribunal order

dismissing the appeal by accepting dispatch of

order by Speed post as valid service set aside.

[2012 (26) S.T.R. 299 (Bom)]

Ø Corrigendum to Show Cause Notice not

ignorable by CESTAT: Show Cause Notice not

proposing penalty under Section 78 of Finance

Act, 1994 and same proposed in corrigendum

CESTAT ignoring the corrigendum held that

Deletion of penalty was a mistake, matter

remanded to CESTAT with liberty to assessee to

dispute whether corrigendum was served and

issued after limitation period Section 73 of Finance

Act, 1994. [2012 (26) S.T.R. 306 (Del.)]

Ø Penalty not deletable by CESTAT by merely

relying on a judgment : Sufficient cause for non

imposition, Factual aspect, explanation offered by

assesse, period of default, etc. have to be dealt

with and finding recorded thereon before deletion

of penalty, Merely reliance on a judgement is not

sufficient. [2012 (26) S.T.R. 306 (Del.)]

Ø Pre-deposit can be made by way of debiting

Cenvat Credit account: Pre-deposit can be made

by way of debiting Cenvat Credit account allowed,

Case remanded to decide the issue on merit

without insisting any further deposit. [2012(26)

S.T.R. 354 (Tri-Kolkata)]

Ø Assessee not liable for fault of the Department:

High Court cleared that at any rate for the fault of

Department the assessee can not be made to

suffer. The Excise duty was not paid at the time of

clearances because according to the assessee,

the said goods were not excisable to tax, and the

said stand has been vindicated by the order of the

Appellate Authority. Because of insistence of

Depar tment to gain peace, assessee has

deposited the said amount of tax. Once he has

deposited the amount, he is entitled to avail the

benefit of Cenvat Credit at Sister Unit. Upheld, it

56

June - 2 012

was more so as stand of the assessee that they

were not liable to pay duty was vindicated in

proceedings that had become final, and they not liable

for fault of Department.[2012 (26) S.T.R. 386 (Kar.)]

Ø Interest Not payable if credit reversed without

utilizing: Wrong entry in accounts books for credit

on Capital goods before the credit was taken or

utilized, assessee accepted their mistake and

immediately reversed the entry and since

assessee had not taken benefit of wrong entry in

their account books, there was no liability to pay

interest and it also held that if there is no liability to

pay Tax, there is no liability to pay interest.

[2012(26) S.T.R. 204 (KAR.)]

Ø Refund Adjustment against interest due:

Interest payable can be adjusted out of Refund

amount, Tribunal order upheld demand and duty

paid with in three months of order and High Court

Authorities justified in deducting interest from

amount of refund allowed elsewhere Sec 11 and

Sec 11AB of CEA, 1944. [2012 (26) S.T.R. 264

(KAR)]

Ø Maintenance and Repair service not taxable as

Works Contracts: Maintenance and repair

service being a specified service cannot be treated

as service under the category of “Work contracts”

for the Services tax purposes. [2012(26) S.T.R.

225 (Tri – Chennai)]

Ø Cenvat Credit not deniable for outdoor catering

facility provided under statutory obligation:

When assessee provides Outdoor Canteen

Facilities because of Statutory obligation imposed

on him. It may be a welfare measure but certainly

not a charity provided by employer to the

employees, merely because these services are

not expressly mentioned in the definition of input

service. It cannot be said that they do not constitute

input services and assessee is not entitled to

benefit of Cenvat credit, Service Tax paid on such

services which the assessee utilized directly or

indirectly in or in relation to final product is entitled

to claim the credit. [2012(26)S.T.R. 193 (KAR)]

Ø Refund of Unutilized Cenvat Credit on closure

of unit: Assessee relied on CESTAT Larger

Bench, in Gauri Plasticulture [2006(202) E.L.T. 199

(Tribunal-LB)] which allowed duty debited in RG-

23A Part-II as cash refund when refund was

otherwise due, larger Bench held that if denial of

credit compelled an assesse to pay duty out of

PLA, refund of same was admissible in cash.

Present case not on premise of refund in absence

of express provisions of grant of refund, except in

case of exports. Claim inconceivable. Claim of

Refund not matter of right unless vested in law.

Here refund is not admissible. [2012(26) S.T.R. 270

(TRI – LB.)]

Ø Refund of Service Tax paid under mistake not

rejectable on ground of limitation: Department

did not have legal authority collect Service Tax,

and if they did, it could be challenged as

unconstitutional. Mere payment of amount could

not authorize Department to regularize/ validation

and retain it. Department’s Plea that filing of claim

under Form –R indicated that assessee intended

to claim refund of duty and they could not later

claim that it was not duty and refund could not be

rejected on ground of limitation under Section 11

B Central Excise Act, 1944. [2012(26) S.T.R. 195

( KAR)]

Ø Additional evidences at Appellant stage when

not permissible: Additional evidences at appellate

stage, Application dismissed and held that no right

to any party to produce additional evidences at

appellate stage and sufficient Cause to be shown

for failure to produce such evidence before or

proper justification disclosed to produce such

further evidence at appellate stage. Also assessee

cannot produce such further evidence by same

person, without disclosing justification for such

further evidences. [2012 (26) S.T.R. 267 (Tri –Del.)]

Ø Service Tax paid by head office utilizable by

different units: Service tax paid by head office at

Chennai pertaining to advertisements of product

manufactured by unit at Cuttack. Credit there of

57

June - 2 012

distributed by head office to unit at Malur, such

distribution of credit was permissible under Rule

7 of Cenvat Credit Rules, 2004. Plea that credit

was in respect of products not manufactured in

Malur, rejected.[2012 (26) S.T.R. 100 (Kar)]

Ø Service Tax paid on detention charges levied

on containers by transporters: Service Tax paid

on transportation of empty containers, use of word

“in relation to” in Notification No. 41/ 2007 S.T. would

cover empty containers also. Empty containers

have to be transported and further brought back

to port area or ICD. [2012(26) S.T.R. 120 (Tri-

Ahmd)]

Ø Goods Transport Agency Services : Service Tax

paid on detention charges levied on the containers

in the process of utilization for transportation and

Service Tax paid in relation to transportation

covered under Notification No. 41/ 2007- S.T. not

a case where service tax not paid on gross value

or under head GTA. Refund allowed. [2012(26)

S.T.R. 120 (Tri-Ahmd)]

Ø Service of issuing PAN card on behalf of

Income Tax Department not liable to Service Tax,

being part of sovereign function: Issue of Pan

Cards on behalf of Income Tax department of levy

and collection of income tax, in that view, issue of

PAN Cards is not leviable to Service Tax under

Business Auxiliary Service. [2012(26) S.T.R. 147

(Tribunal- Mum)]

Ø Exemption not deniable for Non filing of a

Declaration prescribed under Board’s Circular:

Under Goods Transport Agency, abatement of

75% in taxable service and here C.B.E. & C.

circular No. B1/6/2005-TRU prescribing service

providers should declare in consignment note itself

whether Cenvat Credit on Input/ Capital goods and

benefit of Notification No. 12/2003-S.T., had been

taken by them, held Such declarations was not

mandatory as it is not specified in notification and

substantive benefit cannot be denied by issue of

a circular prescribing additional conditions.

[2012(26) S.T.R. 154 (Tribunal- Ahmd)]

Ø Order passed before expiry of time given for

reply to show cause Notice not sustainable:

Natural justice violation, Notice issued in this case

on 15-07-2009 and one week period for reply was

to expire on 23-7-2009, Petitioner was to appear

on 20-7-2009 to seek copies of documents but

order passed on 20.7.2009 itself, here opportunity

to make representation rendered illusory as order

passed before expiry of seven days, no effective

opportunity of hearing given and order extending

time for SCN not communicated and Orders on

detention, seizure and confiscation quashed.

[2012(26) S.T.R. 69 (P & H)]

Ø Out of turn hearing grantable when high stakes

of revenue involved: Booking of air tickets,

arrangements for food, local travel, and hotelstay

at places outside India is not liable to Service Tax

as Tour Operator Services, as prescribed by

C.B.E.&C. Instructions F. No. B. 43/10/97/TRU,

dated 22-08-1997, Section 65(115) of Finance Act,

1994. Hearing of it can be granted out of turn where

high stakes are involved.[2012(26) S.T.R. 12 (Tri-

Bang)]

Ø Strictures against Department : Authorities

wasting their time in proceeding against person

who are paying Service Tax with interest promptly,

Authorities are paid salary to act in accordance

with law and not to harass and initiate proceedings

against persons who are paying tax with interest

for delayed payment, Commissioner of large

taxpayers unit to issue proper circular to all

concerned authorities not to contravene. [2012(26)

S.T.R. 3 (Kar)]

Ø Unjust Enrichment: No evidence adduced before

Tribunal that Service Tax had not been collected

from clients, here it has been held that Certificate

of Chartered Accountant produced before Tribunal

was not acceptable, it was more so as it did not

disclose any nexus between Service Tax

mentioned therein and amount claimed as refund,

and it did not refer to relevant period, mere

indication that amount of service tax mentioned

58

June - 2 012

therein was outstanding in books of accounts of

assessee, was not sufficient.[2012(26) S.T.R. 50

(Tri- Mum)]

EOU

Ø Accumulated Cenvat credit not deniable for

supplies to EOU: when the finished goods

manufactured out of cenvat credit availed inputs

have been supplied to 100% EOUs, refund of

accumulated cenvat credit under Rule 5 of Cenvat

Credit Rules, 2004 cannot be denied on the ground

that the supplies to 100% EOU are deemed export

and not real export. [2012(279) E.L.T. 280 (Tri.Del.)]

Ø Factories situated in the same compound to

be treated as one factory: when factories aresituated in the same compound are to be treatedas one factory and therefore, electricity aftergeneration by using fuel oil and supplied to 100%EOU situated in the same compound then cenvatcredit admissible. In this matter sub rule (1), (2)(3) and (4) of Rule 6 of the Cenvat Credit Rules,2004 are not applicable during the relevant periodof demand in view of the provision of Rule 6 (6)ibid. Revenue’s contention that once a portion ofthe electricity generated by using fuel oil is sent to100% EOU, condition that the input should havebeen used within factory of production is not fulfilledand credit is not admissible is overruled by theHon’ble CESTAT.[2012(279)E.L.T. 101(Tri.Bang.)]

INCOME TAX

Ø When there is neither concealment nor furnishing

of inaccurate particulars, then mere erroneous

claim cannot attract penal provisions u/s

271(1)(c). [2012-TIOL-226-ITAT-DEL]

Ø Interest on borrowed fund invested in the

subsidiary company and given as advance to the

subsidiary company cannot be an allowable

expenditure. [AIT-2012-155-HC]

Ø Regularization fee paid by the assesee for the

purpose of regularizing the violations committed

in the course of construction of building is not penal

in nature and can be booked as the cost of the

Building and will be entitled to depreciation also.

[2012-TIOL-215-ITAT-MAD-TM]

Ø Deduction u/s 10A has to be given in the first

instance when the profit and gains under Business

& Profession is computed and not after deductions

of chapter VI A. [2012-TIOL-318-HC-MUM-IT]

Ø Short term capital loss arising from STT paid

transactions can be set off against short term

capital gain arising from non STT transactions.

[2012-TIOL-218-ITAT-MUM]

Ø Unexplained money introduced by a minor partner

in the firm cannot be assessed as income in the

hands of firm on the ground that the partner being

minor, could not be prosecuted. [2012-TIOL-347-

HC-ALL-IT]

Ø When the assessee has deducted tax at source

on payments made to its related party, and there

is no attempt to evade taxes, the AO cannot

disallow such payments questioning the necessity

of availing services from the Associated

Enterprise. Disallowance u/s 40A(2) cannot be

made if the expenditure is not found to be

excessive or unreasonable. [2012-TIOL-263-ITAT-

BANG]

Ø When the assessee receives payments on sale

of property in parts, the piecemeal deposits of the

same under capital gains scheme also entitles the

assessee from Sec 54EC benefits. It is not

necessary for the assessee to make deposit of

the entire sale consideration at one time under the

scheme. The period of six months for making

deposits is to be counted from the date of sale

receipts or the date of agreement. [2012-TIOL-181-

ITAT-MUM]

n n n

59

June - 2 012

CBEC Notified Exchange Rate for Conversion Foreign Currency w.e.f. 8 th Jun 2012

(Notification 49/2012-Customs (NT) dt.07.06.2012)

SCHEDULE-I

S.No. Foreign Currency Rate of exchange of one unit of foreign currency

equivalent to Indian rupees

(For Imported Goods) (For Export Goods)

1. Australian Dollar 55.55 54.15

2. Bahraini Dinar 150.30 142.25

3. Canadian Dollar 54.30 53.00

4. Danish Kroner 9.45 9.20

5. EURO 69.95 68.40

6. Hong Kong Dollar 7.15 7.05

7. Kenyan Shilling 66.35 62.60

8. Kuwait i Dinar 202.60 191.10

9. Newzealand Dollar 43.05 42.00

10. Norwegian Kroner 9.20 8.95

11. Pound Sterling 86.20 84.40

12. Singapore Dollar 43.65 42.75

13. South African Rand 6.85 6.45

14. South Arabian Riyal 15.10 14.30

15. Swedish Kroner 7.80 7.55

16. Swiss Franc 58.30 57.00

17. UAE Dirham 15.45 14.60

18. US Dollar 55.55 54.70

SCHEDULE-II

S.No. Foreign Currency Rate of exchange of 100 units of foreign currency

equivalent to Indian rupees

1. Japanese Yen 70.35 68.60

Exchange Rate wef 8th Jun 2012

60

June - 2 012

l CBI arrests Deputy Commissioner of Customs

Nhava Sheva RK Singh & Appraiser Sanjay

Prasad for taking bribe for clearing container

l Nitco Tiles paid Rs 9 crore as bribe to CESTAT &

ITAT Members, DGFT & Government Officials &

Politicians including a Cabinet Minister

l Austerity Drive: Finance Ministry announces total

ban on creation of new posts-ban on meetings in

5 star hotels & purchase of vehicles-curbs

imposed on foreign travel of Babus-10 per cent

cut in non-plan expenditure of Government

Departments. But planning commission continues

to spend huge money on repairing of Toilets…

l Reebok India fraud becomes serious-case to be

investigated by Serious Fraud Investigation Office.

l FM gives nod to 25 FDI proposals worth Rs 3000

Cr

l Excise Minister of Andhra Pradesh M

Venkatramana arrested by CBI

l CBI arrests one Assistant Commissioner, a

Superintendent and an Inspector of Central Excise

in Pune in bribery case

l Fake Indian Currency worth Rs 25.7 Cr seized in

2011

l Facebook Shares fall below Offer Price..!!

l The Government has appointed three indirect tax

ombudsmen to hear the grievances on Excise

Duty, Custom Duty and Service tax issues. The

Cabinet Committee on Appointment has rejected

the recommendation of the Selection Committee,

for appointment of Mr. H.K.Sharan as an Indirect

Ombudsman at Mumbai because of their doubts

about his integrity.

l CBI team conducted a raid at the house of

Superintendent in Chandigarh and recovered Rs.

8 Lakhs in cash and 50 bottles of Indian Made

Foreign Liquor from his possession and also found

that Mr. V.P. Singh had deposited Rs.1 Crore into

his Bank Account.

l CBI has raided the Central Excise Office in Kundli

and arrested 3 Central Excise Officers and it also

learnt that the officers have hired bribe conduit on

full time basis for the purpose of collecting bribes

from the assessee.

l Delhi High Court dismissed the bail applications

of suspended Commissioner of Central Excise Dr.

Anup Srivastava, Superintendent Mr. Ojha &

Middleman Mr. Gandhi even after 3 month of jail

wherein court held that plea of the accused that

they were in custody from last 3 months and the

charge sheet has also been filed were no ground

for bail.

l The Government has set up a committee to

explore the possibility of a Common Tax Code for

Central Excise and Service Tax that can be

adopted to harmonize the two legislations.

n n n

June - 2012

O U R S E R V I C E S

Bizsolindia Services Pvt. Ltd. Consultancy & Audit in the area of

lDirect & Indirect Taxation,

lFEMA,

lForeign Trade Policy,

lEOU,

lSEZ,

lProject Consultancy SEZ, EOU, STPI,

Industrial Parks, Clusters etc.

lInternal Audit,

lStrategic Management Consultancy.

Bizsolindia Outsourcing Pvt. Ltd. Knowledge Process Outsourcing in the area of

lIndirect Taxation,

lAccounts,

lInventory management,

lFixed Assets Management.

Bizsolindia IT Services Pvt. Ltd. Specialised IT Consulting and Solutions / modules

along with ERP Integration and following ares,

lSpecialized Software for EOUs and SEZs

lExpert in Application programming using Java and

ERP Connectivity / Data Migration

lOffers bucket of Add On Products for EXIM related

solutions for the complete industry needs

lERP Consulting / Implementation

Bizsol HR services Pvt. Ltd. Strategic Consultancy in the area of HR & Soft skills

Training.

Bhagwati Shipping Pvt. Ltd Custom House Agent (11/578)Custom Clearance of

Export and Import consignments.

A B Nawal & Associates, Practicing Cost Accountant, Cost Audit, Central Excise,

Accountants Adjudication matters upto CESTAT, VAT Audit.

Behede Joshi & Associates, Practicing Chartered Accountants, Statutory Audit & Tax

Chartered Accountants Audit, VAT Audit, Transfer Pricing.

R Venkitachalam, Company Practicing Company Secretary.

Secretary.

Cost

Bizsolindia provides consultancy in the following areas through associate companies and professional firms of the director,

June - 2012

Mr. Ashok Nawal lightening the lamp at seminar arranged by Instituteof Cost Accountants of India at Mumbai 02nd June 2012.

Mr. Ashok Nawal Managing Director Bizsolindia, speaker at workshop arranged at Mumbai on 30th May 2012 by Institute of Cost Accountants of India.

Date post:	27-Jun-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

Bizsol June 2012 · Flex Film, falling under Chapter 39 of the First Schedule to the Customs Tariff...

Documents