-COPY
OF- CUSTOMS CIRCULAR NO.15/2010-Cus Dated: June 29, 2010 Subject:
Fraudulent claim of 4% SAD by unscrupulous importers - reg.
Attention
is invited to Notification No. 102/2007-Cus dated 14.09.2007 which provides exemption
in the form of refund of 4% SAD paid on goods imported and subsequently sold on
payment of VAT/ST.
2. Instances have come to notice of the Board where some importers of ‘timber
logs' have undertaken certain processes and subsequently sold ‘sawn' or ‘cut
logs' after payment of VAT. These importers are claiming the refund of 4% SAD
paid at the time of importation of goods in terms of Notification No.102/2007-Customs
dated 14.09.2007. As per the said Notification , refund of SAD is available only
in case the imported goods are subsequently sold on payment of VAT, without carrying
out any process. However, at the time of claiming refund of 4% SAD, these importers
have manipulated the facts by showing that goods sold were imported timber logs
only and not ‘sawn' or ‘cut logs'. In terms of the classification of
the First Schedule to Customs Tariff Act, 1975, round logs/round squares are classified
under the heading 4403 whereas the ‘sawn' woods are classified separately
under heading 4407. Thus, there is distinct classification for the imported and
the final products that are sold in the market on which VAT is paid. Hence, since
the goods imported and subsequently sold were different goods falling under different
tariff headings, the benefit of Notification No.102/2007-Customs dated 14.09.2007
by way of refund of 4% SAD is not available to importers. 3. In certain other
cases, refund claims have been filed with the department wherein forged documents
were submitted for availing the refund envisaged in the notification No.102/2007-Customs
dated 14.09.2007. In such cases, it is reported that the importers were preparing
duplicate set of invoices of the same serial number. Scrutiny of these two sets
of invoices establishes that the invoice submitted to the department shows description
of goods as ‘Malaysian round logs' whereas the invoices obtained from the
buyer shows the description of goods as ‘imported timber'. The other difference
is that in the invoice submitted to the department the quantity of goods in number
/ pieces are not mentioned whereas in the invoices of the buyer the quantity in
number/pieces is clearly mentioned. This fact of preparing duplicate invoices
is further substantiated by the other documents such as related transit passes
and lorry receipt. These importers are thus defrauding the government revenue
by resorting to this modus operandi of submitting the forged documents for claiming
refund fraudulently. 4. It is apprehended that above mentioned modus-operandi
may have all India ramifications and may be prevalent in other field formations
and are not limited only to a few cases. In view of the above, all field
formations are directed to be alert and vigilant to ensure that unscrupulous importers
do not avail fraudulent refunds of 4% SAD in terms of Notification No.102/2007-Customs
dated 14.9.2007 by resorting to the above-mentioned modus operandi.
F.
No.401/73/2010-Cus.III (Vikas) Under Secretary (Cus.III)
-COPY OF- CUSTOMS
CIRCULAR NO.16/2010-Cus Dated: June 29, 2010 Subject:
Examination under Regulation 8 of the ‘Customs House Agents Licensing Regulations
(CHALR), 2004' – Clarification – regarding.
Attention
is invited to regulation (6) (a) of ‘Customs House Agents Licensing Regulations
(CHALR), 2004' which specifies certain professional qualification such as MBA
from any institute or University recognised by the Government to be possessed
by an applicant or his employee referred to in clause (b) of the sub regulations
(2) and (3) of regulation 5 of CHALR, 2004 to appear in examination under regulation
8 of the said Regulations. However, in this regard, it was clarified vide Board's
Circular No.42/2004-Customs dated 10.6.2004 that, no degree holders equivalent
to MBA are entitled to appear in the said examination. However, references have
been received in the Board from field formation pointing out that some well known
institutes like Indian Institute of Management are not awarding MBA degree rather
such institutes are awarding PGDM which is equivalent to MBA. It is represented
that these PGDM holders should be allowed to appear in regulation 8 examinations
under CHALR, 2004. 2. The issue has been examined in the Board. It has been
decided by the Board that MBA degree or the equivalent degree PGDM, granted by
an institute or university recognised by Government / AICTE under Ministry of
Human Resource Development shall be acceptable qualification for degree holders
to appear in the examination under CHALR, 2004. 3. The Board Circular No.42/2004-Customs
dated 10.6.2004 stands modified to above extent. 4. These instructions may
be brought to the notice of the field officers by issuing suitable Standing orders/instructions.
Difficulties faced, if any, in the implementation of the Circular may please be
brought to the notice of the Board, at an early date. F. No.502/3/2010-Cus.VI
( Vikas ) Under Secretary (Cus.VI
-COPY
OF- Customs Notification No. 50/2010 - Customs (N.T.) DATED THE 28th
June 2010
S.O. (E). – In exercise of the powers conferred
by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the
notification of the Government of India in the Ministry of Finance (Department
of Revenue) No.42/2010 CUSTOMS (N.T.), dated the 26th May, 2010 vide number S.O.1239
(E), dated the 26th May, 2010, except as respects things done or omitted to be
done before such supersession, the Central Board of Excise and Customs hereby
determines that the rate of exchange of conversion of each of the foreign currency
specified in column (2) of each of Schedule I and Schedule II annexed hereto into
Indian currency or vice versa shall, with effect from 1st July, 2010 be the rate
mentioned against it in the corresponding entry in column (3) thereof, for the
purpose of the said section, relating to imported and export goods.
SCHEDULE-I
S.No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent
to Indian rupees (1) (2) (3) (a) (b) (For
Imported Goods) (For Export Goods) 1. Australian Dollar 40.70 39.60 2.
Canadian Dollar 45.25 43.95 3. Danish Kroner 7.85 7.55 4. EURO 58.10 56.50
5. Hong Kong Dollar 6.05 5.90 6. Norwegian Kroner 7.25 7.05 7. Pound
Sterling 70.40 68.55 8. Swedish Kroner 6.05 5.90 9. Swiss Franc 42.75
41.65 10. Singapore Dollar 33.80 32.95 11. US Dollar 46.95 46.00
SCHEDULE-II
S.No. Foreign Currency Rate of exchange
of 100 units of foreign currency equivalent to Indian rupees (1) (2) (3)
(a) (b) (For Imported Goods) (For Export Goods) 1.
Japanese Yen 52.65 51.15
[F.No.468/8/2010-Cus.V]
(M.
Satish Kumar Reddy) DIRECTOR TO THE GOVT. OF INDIA TELE: 2309 3380
-COPY
OF- CUSTOMS CIRCULAR NO.18/2010-Cus Dated: July 8, 2010 Subject:
Refund of 4% Additional Duty of Customs (4% CVD) in pursuance of Notification
No.102/2007-Customs dated 14.9.2007 – Special Drive for clearance of pending
4% SAD refund claims - reg.
Your
kind attention is invited to the Notification No.102/2007-Customs dated 14.9.2007
and Board's C irculars No.6/2008-Customs dated 28.4.2008 and No.16/2008-Customs
dated 13.10.2008 regarding refund of 4% Additional Duty of Customs (4% CVD). Attention
is also invited to the Board's Circulars No.24/2007-Customs dated 2.7.2007, No.22/2008-Customs
dated 19.12.2008 and No.7/2008-Customs dated 28.5.2008 which relate to general
refund cases. 2. In this regard, several representations from the trade and
industry, associations continue to be received in the Board complaining about
the delay in refund of 4% CVD or denial of the refund on one pretext or the other,
causing them great hardship. 3. In view of the fact that all the doubts of
the field formations had been clarified by the Board vide above mentioned Circulars,
it is viewed that there may not be any difficulty in timely disposal of refund
claims. However, on review of the pending refund claims as on 31.3.2010 at major
Custom Houses, it has been noticed that more than 80% of pending claims relate
to 4% CVD cases. Hence, the Board has decided to further simplify the procedure
for claiming 4% CVD refund in the following manner. 4.1. In respect of Accredited
Clients registered with Customs in terms of Circular No.42/2005-Customs dated
24.11.2005 (ACP clients), the amount of 4% CVD refund shall be sanctioned in full,
on preliminary scrutiny of the following documents: (a) TR-6 Challans (in original)
for CVD payment; (b) VAT/ST payment Challans (in original); (c) summary of sale
invoices; and (d) certificate of statutory Auditor / Chartered Accountant, for
correlating the payment of ST/VAT on the imported goods with the invoices of sale
and also to the effect that the burden of 4% CVD has not been passed on by the
importer to the buyer. The procedure for pre-audit for ACP clients shall be done
away with and detailed scrutiny should be done only at the stage of post-audit.
The refund claims shall be sanctioned within the maximum time period of 30 days
in all such cases. 4.2. Submission of sale invoices shall be required only
in electronic form (CD or other media) in respect of 4% CVD refund cases and submission
of paper documents is accordingly dispensed with. 5. In order to enable timely
payment of refund in case of 4% CVD, a system of optional facility of directly
crediting the applicant's bank account, through RTGS (Real Time Gross Settlement)
or NEFT (National Electronics Funds Transfer) System is being prescribed. This
facility is already functioning in Mumbai Customs Zone-II and has been found useful
for the trade. Hence, Board has decided to extend this facility on optional basis
to all other Customs formations also. Necessary authorisation for payment of refund
amount directly to Bank Account may be taken in such cases from the importer/
authorised signatory of the importer in the form annexed. (Annexure-I) 6.
Some field formations have also raised certain doubts whether the audited Balance
Sheet and Profit and Loss Account have to be examined in respect of the current
financial year for scrutiny of unjust enrichment aspect. It is stated that a large
number of refund claims relating to the current year were held up for want of
such verification. In this regard, the issue has been examined by the Board and
it has been decided that the field formations shall accept a certificate from
Chartered Accountant for the purpose of satisfying the condition that the burden
of 4% CVD has not been passed on by the importer to any other person. Further,
the importer shall also make a self-declaration along with the refund claim to
the effect that he has not passed on the incidence of 4% CVD to any other person.
Hence, there is no need for insisting on production of audited Balance Sheet and
Profit and Loss Account in these cases. It may also be noted that recently the
Board has also notified the list of documents required to be filed by the applicant
along with the refund claim (Annexure-II) which is also displayed in the departmental
website. Hence, other than these aforesaid documents, no other document would
be required in the normal course of granting 4% CVD refund. 7. Board also
desires that the Commissioner of Customs shall personally monitor all cases of
4% CVD refund claims pending for more than 30 days so as to ensure that these
are disposed of within the overall time limit of three months. 8. A suitable
Public Notice and Standing Order may be issued for the guidance of the trade and
staff. Difficulties faced, if any, in implementation of this Circular may
be brought to the notice of the Board at an early date. F. No. 401/46/2008-Cus.III
(R. P. Singh) Director (Customs) Annexure - I
Authorization
for payment of refund amount directly to Bank Account I.E.C. No. _______________
PAN No. _________________. M/s ______________________________
Address:
__________________________
__________________________________
__________________________________ E-mail address: Bank Account No.:
__________________ Bank Name: ______________________ Bank Address: ______________________
11 digit alphanumeric IFS Code : ________________ I declare that the above
particulars are correct. I authorize payment of refund amount for my refund claims
filed at ______________________ Custom House to my above mentioned Bank Account
through NEFT / RTGS after deduction of Bank's service charges at the rate of 0.09%
and applicable NEFT / RTGS charges as per RBI guidelines. Name of the Authorised
signatory / Representative of the Importer
Signature :
Date: Place:
Certified that the above details are correct.
Signature of Bank Branch Manager along with the official Seal Annexure
- II
Sl.No. Type of refund claim Section / notification under which filed
Illustrative list of documents to be filed by applicant along with Application
for refund claim in prescribed form (Customs Series Form No.102 as given in Part
5 of Customs Manual) 3 Refund of 4% SAD Notification No. 102/2007-Customs
dated 14.9.2007 1. Document evidencing payment of the Special Additional Duty
(SAD). 2. Invoices of sale of the imported goods in respect of which refund
of the said SAD is claimed. 3. Documents evidencing payment of appropriate
sales tax or value added tax, as the case may be, by the importer, on sale of
such imported goods. 4. Certificate from a statutory auditor / CA who certifies
the final accounts in respect of correlation of VAT payment, payment of 4% SAD
amount and unjust enrichment as prescribed in Board's circular No.6/2008-Customs
dated 28.4.2008 and 16/2008-Customs dated 13.10.2008. 5. Copy of the Consignment
Sale Agreement. (in case of sale through consignment agents / stockists). 6.
Self-declaration / Affidavit (for e.g. in case of submission of invoice in soft
form in lieu of paper documents, in case of fulfillment of the doctrine of unjust
enrichment to the effect that the applicant has not passed on the incidence of
4% SAD to any other person). 7. Any other document considered necessary in
support of the claim.
CBEC
extends anti-dumping duty on DTPC import from China Whereas, in the matter
of import of Diethyl Thio Phosphoryl Chloride (hereinafter referred to as the
subject goods), falling under Chapter 28 or 29 or 38 of the First Schedule to
the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the said
Customs Tariff Act), originating in, or exported from, People's Republic of China
(hereinafter referred to as the subject country) and imported into India, the
designated authority in its preliminary findings vide notification No.14/18/2008-DGAD,
dated the 25th May, 2009, published in the Gazette of India, Extraordinary, Part
I, Section 1, dated the 25th May, 2009, had come to the conclusion that- (a)
the subject goods had been exported to India from subject country below its normal
value, thus resulting in dumping of the product; (b) The domestic industry
had suffered material injury due to dumping of the subject goods; and (c)
The material injury had been caused by the dumped imports from subject country;
And had recommended imposition of provisional anti-dumping duty on the imports
of subject goods, originating in, or exported from, the subject country; And
whereas, on the basis of the aforesaid findings of the designated authority, the
Central Government had imposed provisional anti-dumping duty on the subject goods
vide notification of the Government of India in the Ministry of Finance (Department
of Revenue), No. 73/2009-Customs, dated 22 nd June, 2009, published in the Gazette
of India Extraordinary, Part II, Section 3, Sub-section ( i ) vide number G.S.R.
437(E), dated the 22 nd June, 2009; And whereas, the designated authority
in its final findings vide notification No. 14/18/2008-DGAD dated the 6 th May,
2010, published in the Gazette of India, Extraordinary, Part I, Section 1, dated
the 6 th May, 2010, had come to the conclusion that- (a) the subject goods
had been exported to India from subject country below its normal value, thus resulting
in dumping of the subject goods; (b) the domestic industry had suffered material
injury due to dumping of the subject goods; (c) the material injury had been
caused by the dumped imports from subject country; and had recommended the
imposition of definitive anti-dumping duty on imports of the subject goods originating
in, or exported, from the subject country; Now, therefore, in exercise of
the powers conferred by sub-section (1), read with sub-section (5) of section
9A of the said Customs Tariff Act and rules 18 and 20 of the Customs Tariff (Identification,
Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination
of Injury) Rules, 1995, the Central Government, on the basis of the aforesaid
final findings of the designated authority, hereby imposes on the subject goods,
the description of which is specified in column (3) of the Table below, falling
under Chapter of the First Schedule to the said Customs Tariff Act as specified
in the corresponding entry in column (2), originating in the country as specified
in the corresponding entry in column (4), and produced by the producers as specified
in the corresponding entry in column (6), when exported from the country as specified
in the corresponding entry in column (5), by the exporters as specified in the
corresponding entry in column (7), and imported into India, an anti-dumping duty
at the rate equal to the amount indicated in the corresponding entry in column
(8), in the currency as specified in the corresponding entry in column (10) and
per unit of measurement as specified in the corresponding entry in column (9),
of the said Table. Table
Sl No. Chapter Description of goods Country
of origin Country of export Producer Exporter Duty amount Unit Currency (1)
(2) (3) (4) (5) (6) (7) (8) (9) (10) 1 28 or 29 or 38 Diethyl Thio Phosphoryl
Chloride People's Republic of China People's Republic of China Yangxin Chentian
Chemical Industry Co., Ltd. Yangxin Chentian Chemical Industry Co., Ltd. 1.024
Per Kg US Dollar 2 28 or 29 or 38 Diethyl Thio Phosphoryl Chloride People's
Republic of China People's Republic of China Lianyungang Liben Agro-chemical Co.,
Ltd. Lianyungang Liben Agro-chemical Co., Ltd. 0.754 Per Kg US Dollar 3
28 or 29 or 38 Diethyl Thio Phosphoryl Chloride People's Republic of China People's
Republic of China Xingtai Pesticides Co., Ltd. Xingtai Pesticides Co., Ltd. 0.516
Per Kg US Dollar 4 28 or 29 or 38 Diethyl Thio Phosphoryl Chloride People's
Republic of China People's Republic of China Zhejiang Xinnong Chemical Co., Ltd.
Zhejiang Xinnong Chemical Co., Ltd. 0.798 Per Kg US Dollar 5 28 or 29 or 38
Diethyl Thio Phosphoryl Chloride People's Republic of China People's Republic
of China Any combination of producer and exporter other than the above 1.157 Per
Kg US Dollar 6 28 or 29 or 38 Diethyl Thio Phosphoryl Chloride People's Republic
of China Any country other than People's Republic of China Any Any 1.157 Per Kg
US Dollar 7 28 or 29 or 38 Diethyl Thio Phosphoryl Chloride Any country other
than People's Republic of China People's Republic of China Any Any 1.157 Per Kg
US Dollar 2. The anti-dumping duty imposed shall be levied for
a period of five years (unless revoked, superseded or amended earlier) from the
date of imposition of the provisional anti-dumping duty, that is, 22nd
June, 2009 and shall be payable in Indian currency. Explanation: For the purposes
of this notification, rate of exchange applicable for the purposes of calculation
of such anti-dumping duty shall be the rate which is specified in the notification
of the Government of India, in the Ministry of Finance (Department of Revenue),
issued from time to time, in exercise of the powers conferred by section 14 of
the Customs Act, 1962 (52 of 1962), and the relevant date for the determination
of the rate of exchange shall be the date of presentation of the bill of entry
under section 46 of the said Customs Act. F.No.354/127/2009 –TRU (
Prashant Kumar) Under Secretary to the Government of India
[To
be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(ii)] Government of India Ministry of Finance (Department of Revenue) Notification
No. 65/2010-Customs (N.T.) New Delhi, dated the 7th July , 2010. Ashada,
1932 Saka. S.O. (E). – In exercise of the powers conferred by sub-section
(1) of section 4 of the Customs Act, 1962 (52 of 1962), the Central Board of
Excise and Customs hereby appoints the Joint Commissioner of Customs or Additional
Commissioner of Customs (Sea Port-Import), Chennai to exercise the powers and
discharge the duties conferred or imposed on the Joint Commissioner of Customs
or Additional Commissioner of Customs (Sea Port-Import), Kolkata, for the purpose
of adjudicating the matters relating to Show Cause Notice pertaining to M/s
Eastern Equipment Enterprises, No. 6D, Land Mark (Opp. Minto Park), No. 228A,
AJC Bose Road, Kolkata-20 and others, issued vide F.No. VIII/48/28/2009-DRI
dated the 1st June, 2010, by the Additional Director, Directorate General of
Revenue Intelligence, Chennai Zonal Unit, Chennai. [F.No. 437/36/2010-Cus.IV] (Navraj
Goyal) Under Secretary to the Government of India
CUSTOMS
CIRCULAR NO.19/2010-Cus Dated: July 13, 2010 Subject: Display at
Airports - LCS about prohibition of import - export of Indian currency notes of
denomination of above Rs.100 in India and in Nepal – regarding As you
may be aware, the export and import of currency notes of Government of India and
Reserve Bank of India notes (other than notes of denominations of above Rs.100
in either case) is not allowed to and from Nepal and Bhutan in terms of Notification
No. FEMA 6 / RB-2000 dated 3.5.2000 issued under Foreign Exchange Management (Export
and Import of Currency) Regulations, 2000 by the Reserve Bank of India. Similarly,
the Indian currency notes in the denomination of Rs.1000 and Rs.500 are not permissible
for exchange for banking transaction in Nepal in terms of guidelines issued by
Ministry of Finance, Government of Nepal and Nepal Rashtra Bank. In fact, the
current legal provisions in Nepal provide that notes of these denominations are
liable for seizure and the persons carrying them are to be fined or imprisoned
for upto three years. 2. Instances have come to the notice of the Board that
many Indian nationals travelling to Nepal by Air or by land routes and carrying
Indian currency notes of Rs.500 and Rs.1000 denomination primarily due to ignorance
of the law, are not only violating the RBI regulations issued in this regard but
also get entangled in legal proceedings for possession of these notes in Nepal,
like criminal prosecution along with confiscation of such currency notes. 3.
The matter has been examined in the Board. In order to check such illegal import
/ export of currency notes of denomination of above Rs.100 and to prevent harassment
and avoidable legal issues, it is felt necessary to educate / sensitize the people
travelling between Nepal and India through Air or land routes regarding aforementioned
legal provisions. Accordingly, since the import and export of Indian currency
notes of denomination of above Rs.100/- (in either case) is prohibited as per
Indian law and the use of Indian currency notes of denomination of Rs.500 and
Rs.1000 is also prohibited in Nepal, Board hereby desires that at prominent places
at the Airports and Land Customs Stations in India from where the passengers depart,
to put up a display / notice board mentioning that “Import / export of Indian
currency notes of the denomination of above Rs.100 from / to Nepal is prohibited
and would attract penal provisions. The use of such currency notes of the denomination
of Rs.1000 and Rs.500 is also prohibited in Nepal. Therefore, these notes are
liable to be seized and the persons carrying them are liable to be fined or imprisoned
for upto three years in Nepal.” 4. The concerned airlines can also be
requested to sensitize the passengers at the time of departure by displaying such
advisory at their Check-in Counters. F.No.520/23/2010-Cus.VI
R
. P. Singh Director (Customs)
PUBLIC
NOTICE NO.74/2009-2014 Dated: June 8, 2010 Subject: Amendment of SION
A-1667
In
exercise of the powers conferred under Paragraph 2.4 of the Foreign Trade Policy,
2009-14 and Paragraph 1.1 of the Handbook of Procedures (Vol.1), the Director
General of Foreign Trade hereby makes the following amendments/corrections in
the Handbook of Procedures, Vol.II, 2009-2014, as amended from time to time. 2.
In the statement of Standard Input Output Norms (SION) as contained in the Handbook
of Procedures (Vol.II), 2009-2014, as amended from time to time, amendments/corrections
are made against SION entry at A-1667 as mentioned in ANNEXURE "A" to
this Public Notice. This issues in public interest. F. No. 01/87/171/00001/AM11/DES-VII) (R.
S. Gujral) Director General of Foreign Trade and ex-officio Special Secretary
to the Government of India ANNEXURE "A" to Public Notice No. 74/2009-2014
Dated: 08.06.2010 EXPORT ITEM QTY IMPORT ITEM QTY Automobile Tyres reinforced
with Nylon tyre-cord Warp-sheet or rayon tyre cord warp-sheet 100 kg 1 (a) Natural
Rubber 44 kg 1 (b) Synthetic Rubber (PBR/SBR - 1502/1712/1723/1783) 8.6 kg
1 (c) V.P.Latices 0.4 kg 2. Carbon Black 23 kg 3. Nylon/ Tyre Yarn/ Cord/
Warp Sheet/Fabric(both dipped and undipped) 13 kg 4. Bead wire 4 kg 5.
Pigments/ chemicals the following :- (a) Rubber chemicals (Antioxidants,
Acelerator, Antiozonant, Retarders and Peptizers). (Import of antioxidants however,
shall not exceed 1 kg for each 2 kgs of Rubber chemicals allowed) 2.00 kg
(b) Zinc oxide 2.00 kg (c) All other Miscellaneous materials/ chemicals viz.,
microcrystalline wax, paraffin wax, pigments and softeners, stearic acid solvents,
plasticisers synthetic resins, bonding/ coupling agents, activatorsand fillers
Dip Chemicals (excluding resorcinol) mould release agents, tackifiers and catalysts
and syloff 7.40 kg (d) Resorcinol 0.10 kg (e) Insoluble Sulphur 0.50 kg
6. Furnace Oil/ L.S.H.S. 23.8 Litres Note: 1. In case of Bus/Truck Tyres, out
of the total quantity 8.6 kgs. the quantity of SBR allowed is up to 3 kgs (maximum)
and the quantity of PBR allowed is 5.6 kgs. 2. The above norm is also applicable
for Tubeless Tyres with Natural Rubber Inner Liner. 3. If the firm import Dipped
fabric, items allowed for dipping i.e. Resorcinol and V.P. Latex shall not be
allowed but a weight of 0.61 kg may be added.
PUBLIC
NOTICE NO.73/2009-2014 Dated: June 8, 2010
Subject:
Amendment in Para 5.1A of HBP Vol.I, 2009-2014 In exercise of the powers conferred
under Paragraph 2.4 of the Foreign Trade Policy, 2009-14 and Paragraph 1.1 of
the Handbook of Procedures (Vol.1), the Director General of Foreign Trade hereby
makes the following amendments in the Handbook of Procedures, Vol.I, 2009-2014,
as amended from time to time. 2. The words "Imports under " appearing
in the first line of sub-para 4 of Para 5.1A of HBP Vol.I stand deleted. This
issues in public interest. F. No. 01/36/218/68/AM-10/Pol.V/EPCG.II
(R.
S. Gujral) Director General of Foreign Trade and ex-officio Special Secretary
to the Government of India
RE
NOTICE NO.68/2009-14 Dated: May 26, 2010
In
exercise of powers conferred under paragraph 2.4 of Export and Import Policy,
2002-07(RE2003) and Foreign Trade Policy, 2004-09, Director General of Foreign
Trade hereby makes the following amendments in the Handbook of Procedures (Vol.
I) (RE2003); Handbook of Procedures (Vol. I) (RE2004) and Handbook of Procedures
(Vol. I) (RE2005): 1. In the Para 3.2.6A (VI) of Handbook of Procedures (Vol.
I) (RE2003) and Para 3.2.5 - VII of Handbooks of Procedures (Vol. I) (RE2004 &
RE2005) , the following is added at the end. "The Certificates / Scrips
, which are valid as on the date of issue of this Public Notice, shall have an
extended validity for a further period of 12 months from the date of issue of
this Public Notice, and there shall be no requirement of endorsement of this extended
validity on the Certificate/Scrip from the concerned regional authority. "
This issues in Public interest. F.No.01/91/180/153/AM11/PC-3
(R.S.GUJRAL)
DIRECTOR GENERAL OF FOREIGN TRADE Ex-officio Special Secretary to Government
of India
-COPY
OF- RE NOTIFICATION NO.47/2009-14 Dated: May 26, 2010 Subject: Import
policy of radial tyres. In exercise of powers conferred under section 5 of
the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 2.1
of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes the
following amendments in Schedule -1 of the ITC(HS) Classifications of Export and
Import Items. 2. After amendment the following entry would read as under:-
Exim Code Item description Policy 4011 20 10 Radials Free 3. This
issues in public interest. File No. 01/89/180/46/AM09/ PC2( A)Pt1
Renting
Immovable Property - Are We headed for more confusion Delhi
High Court decision on Renting of Immovable Property_ More Developments
The
Delhi High Court in a Writ Petition filed by Home Solutions Retail Ltd has granted
a stay from recovery of Service tax under the recently amended entry of Renting
of Immovable Property service, where an amendment was made vide the Finance Act
2010 with retrospective effect from June 1, 2007.
Background
The
Finance Act, 2007 had introduced Renting of Immovable Property service with effect
from June 1, 2007. The taxable service was defined under Section 65(105)(zzzz)
as:
(zzzz) to any person, by any other person in relation to renting
of immovable property for use in the course or furtherance of business or commerce
Upon introduction of the above service, Writ Petitions were filed in
various High Courts challenging the levy on the following main grounds: (i)
Merely allowing use of land/ building does not amount to provision of a service.
(ii) Service tax is on a service provided along with the renting of immovable
property and not on renting per se. (iii) Levy of Service tax on Renting of
Immovable Property amounts to levy of tax on land / buildings, which fall within
the State List and is not within the purview of the Central Government. Post
the above Writ Petitions, the Supreme Court transferred all the Writs to the Delhi
High Court for appropriate disposal. The Delhi High Court in Home Solutions Retail
India Ltd. & Ors. v. Union of India [2009 (237) ELT 209 (Del.)], held as under:
35Consequently, the renting of immovable property for use in the course
or furtherance of business of commerce by itself does not entail any value addition
and, therefore, cannot be regarded as a service. Of course, if there is some other
service, such as air conditioning service provided alongwith the renting of immovable
property, then it would fall within Section 65(105)(zzzz).
36. In view
of the foregoing discussion, we hold that Section 65(105)(zzzz) does not in terms
entail that the renting out of immovable property for use in the course or furtherance
of business of (sic) commerce would by itself constitute a taxable service and
be exigible to service tax under the said Act. The obvious consequence of this
finding is that the interpretation placed by the impugned notification1 and circular2
on the said provision is not correct. Consequently, the same are ultra vires the
said Act and to the extent they authorise the levy of service tax on renting of
immovable property per se, they are set aside.
Post the above decision,
Revenue went to appeal before the Supreme Court, where the honble Supreme Court
did not grant stay to the Delhi High Courts order.
Recent Amendment in
the Finance Bill, 2010
The Finance Bill 2010 (which became the Finance
Act, 2010 on May 8, 2010) had proposed to amend the taxing entry of Renting of
Immovable Property services with retrospective effect from 01.06.2007, inter alia,
as under:
to any person, by any other person, by renting of immovable
property or any other service in relation to such renting, for use in the course
of or, for furtherance of, business or commerce.;
In this regard, the
Circular issued by the TRU dated February 26, 2010 clarified as under: Amendments
are being made in the definition of the taxable service Renting of immovable property
[section 65 (105) (zzzz)] to (i) provide explicitly that the activity of renting
itself is a taxable service. This change is being given retrospective effect from
01.06.2007; With the above retrospective amendment, renting of immovable property
became taxable with effect from June 1, 2007 and therefore, the Delhi High Court
decision was nullified.
Recent Developments
The Delhi High Court
while granting the stay has considered the decision of the Division Bench of Delhi
High Court in Home Solutions Retail India Ltd. & Ors. v. Union of India [2009
(237) ELT 209 (Del.)], wherein it was held that renting of real estate by itself
cannot be by any stretch of imagination be regarded as a service. It was also
observed that the renting by itself did not entail any value addition, and therefore,
cannot be regarded as a service. The Delhi High Court has also acknowledged
that on the basis of aforesaid decision, which is presently pending adjudication
before the Supreme Court, that the present amendment has been introduced to Section
65 (105)(zzzz) by virtue of the Finance Act, 2010 and in particular to Section
76 thereof.
It
was argued by the petitioner that the amendment sought to be introduced, puts
the petitioner in a worse position than the original provision which has already
held not to have any element of service so as to be exigible to Service tax. The
Honble Delhi High Court, while granting the stay under the amended taxing entry
of Renting of Immovable Property service has stated as under:
Prima
facie, it appears that renting of immovable property itself has been regarded
as a service by virtue of the recent amendment even though this Court by virtue
of the said decision on 18.04.2009 had categorically concluded that renting of
immovable property by itself cannot be regarded as a service.
The
respondents shall file the counter-affidavits within four weeks and the petitioner
shall file the rejoinder / affidavits thereto within two weeks thereafter. In
the meanwhile, there shall be no recovery of Service tax from the petitioner in
respect of renting of immovable property alone. No such service tax would be recovered
from respondents 5-10 in the meanwhile. It is made clear that in the event
the writ petition is dismissed, the liability to pay Service tax along with any
other liability as a result of demand made will solely be that of the petitioner.
We make it clear that there is no challenge in this writ petition to the second
part of the aforesaid provision, namely, any other service in relation to such
renting and consequently, if there is any other such service, the service provider
would be liable to pay service tax on such service and in respect of this portion
of the provision there is no stay. Conclusion
The
Delhi High Court in its erstwhile Order dated April 18, 2009 had held that renting
of immovable property by itself cannot be regarded as a service. The proposed
amendment vide the Finance Bill 2010 in the definition of taxable service was
sought to bring within the Service tax net the activity of renting of immovable
property per se. The proposed amendment thus, seeks to nullify the position settled
by the decision of the Honble High Court of Delhi in Home Solutions Retail India
Ltd. The above in fact has also been observed by the Delhi High Court in its Stay
Order dated May 18, 2010. It is important to note that the above stay order
shall be applicable only to the petitioner, i.e., Home Solutions Retail India
Ltd and not to any other party.
However, what remains unclear is whether
something which is not a service per se can be deemed to be a service and whether
Service tax can be levied on the same. Further, whether the Central Government
is competent under the legislation to tax immovable property, which is the subject
area of taxation for the State Governments is a matter left unanswered By:
Nimish Goel
COPY
OF- PUBLIC NOTICE NO.67/2009-14 Dated: May 25, 2010 Subject:
Amendment in Appendix 13, Appendix 22 C and Appendix 27.
In
exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy,
2009-14, the Director General of Foreign Trade hereby makes the following amendments
in the Handbook of Procedures (Volume 1). 2.1 The entries in Appendix 13 shall
be substituted by the following: "Agencies/Funds notified by the Government
of India, Ministry of Finance, Deptt . of Economic Affairs vide their Public Notice
No.1(FT)/DEA/2010 dated 5 th May, 2010 for the purpose of Deemed Export benefits:-
1. International Bank of Reconstruction and Development (IBRD) and International
Development Association (IDA) 2. International Fund for Agricultural Development
(IFAD) 3. Asian Development Bank (ADB) 4. Organization of Petroleum Exporting
Countries (OPEC) Fund 5. Yen credit channelised through Japan International
Cooperation Agency (JICA). [Development component only]. 6. Swedish International
Development Agency (SIDA) 2.2.1 Paragraph (e) of Form 1-A and Para 2 (e) of
Form I-B of Appendix 22C, as amended vide Public Notice 39 dated 8 th February
2010, shall be substituted as under : "(e) ( i ) The supply of goods
under the contract made to power project in India is under the procedure of international
competitive bidding in accordance with the provisions of Paragraph 8.2(g) and
8.4.4 (iv) of the Policy, and the import content of the order is Rs .(Figures
and words…………) (ii) That supply of goods under the contract
made to mega power project in India is under the procedure of ICB or requisite
quantum of power has been tied up through tariff based competitive bidding or
project has been awarded through tariff based competitive bidding in accordance
with the provisions of paragraph 8.2 and 8.4.4(iv) of FTP, and the import content
of the order is Rs …………… …( Figures and words)."
2.3 Paragraph (e) of Appendix 27, as amended vide Public Notice 39 dated 8
th February 2010 , shall be substituted by the following: "(e) ( i )
That supply of the goods under the contract to be made to power project in India
is under the procedure of international competitive bidding in accordance with
the provisions of paragraph 8.2(g) and 8.4.4 (iv) of the Policy and that the import
content of the order is Rs . (figures and words…….). (ii) That supply
of goods under the contract made to mega power project in India is under the procedure
of ICB or requisite quantum of power has been tied up through tariff based competitive
bidding or project has been awarded through tariff based competitive bidding in
accordance with the provisions of paragraph 8.2 and 8.4.4(iv) of FTP, and the
import content of the order is Rs …………… …( Figures
and words)." This issues in public interest. F.No . 01/92/180/ 162/AM08/PC
6
R.S.
Gujral Director General of Foreign Trade and Ex- officio Special Secretary
to the Government of India
No. G.S.R. /P.A.8/2005/S.70/Amd.( )/2010.-In exercise of the powers conferred
by sub-section (1) of section 70 of the Punjab Value Added Tax Act, 2005 (Punjab
Act No. 8 of 2005), and all other powers enabling him in this behalf, the Governor
of Punjab is pleased to make the following rules, further to amend the Punjab
Value Added Tax Rules, 2005, namely;-
RULES
1. (1) These rules may be called the Punjab Value Added Tax (__Amendment) Rules,
2010. (2) They shall come into force on and with effect from the date of their
publication in the Official Gazette. 2. In the Punjab Value Added Tax Rules,
2005, in rule 36,- (a) in sub-rule (1), for the second and third provisos,
the following provisos shall be substituted, namely:- "Provided further
that a taxable person whose annual tax liability during the previous year was
rupees two lakh or more, shall determined his tax liability for every month, and
shall pay tax by the 20th day of the month, if paid through the crossed cheque
or draft, and by the 30th day of the month, if paid through the treasury receipt,
and shall submit the same to the designated officer, alongwith the information
as required in Form VAT-16; and payment for the last month of each quarter shall
be made on the 20th day or the 30th day of the close of quarter, as the case may
be, alongwith with quarterly return. The return in Form VAT-15, shall be accompanied
by photocopies of the treasury receipt, evidencing the payment of tax for the
previous two months also: Provided further that if the annual tax liability
of a person exceeds rupees two lakh as stated in the second proviso, the taxable
person shall continue to pay tax and furnish information as required in Form VAT-16
during all the subsequent year irrespective of the fact that his tax liability
decreases from rupees two lakh."; and (b) after sub-rule(1), the following
sub-rule shall be inserted, namely:- "(1-A) Notwithstanding anything contained
in sub-rule (1), the Commissioner may, for the reasons to be recorded in writing,
specify such categories of persons, who will deposit tax payable by them as per
provisions of sub-rule (1). However, such persons shall file consolidated return
in such Form, as may be specified by the Commissioner from time to time."
SHIVINDER SINGH BRAR, Financial Commissioner, Taxation and Secretary to
Government of Punjab, Department of Excise and Taxation.
GOVERNMENT
OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION II BRANCH) COPY
OF- CUSTOMS NOTIFICATION (N.T.) NO.44/2010-Cus.,(N.T.) Dated: May 31,
2010
CBEC
notifies rules of origin of goods for two ASEAN members - Vietnam & Myanmar
In exercise of the powers conferred by sub-section (1) of section 5 of the Customs
Tariff Act, 1975 (51 of 1975), the Central Government hereby makes the following
rules further to amend the Customs Tariff [Determination of Origin of Goods under
the Preferential Trade Agreement between the Governments of Member States of the
Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules,
2009, namely:- 1. (1) These rules may be called the Customs Tariff [Determination
of Origin of Goods under the Preferential Trade Agreement between the Governments
of Member States of the Association of Southeast Asian Nations (ASEAN) and the
Republic of India] Second Amendment Rules, 2010. (2) These rules shall come
into effect on the 1st day of June 2010. 2. In the Customs Tariff [Determination
of Origin of Goods under the Preferential Trade Agreement between the Governments
of Member States of the Association of Southeast Asian Nations (ASEAN) and the
Republic of India] Rules, 2009, in Annexure IV, after S.No. 3, the following S.
No. and entries shall be inserted, namely:- "S.No. Name of the Country 4.
The Socialist Republic of Viet Nam 5. The Union of Myanmar" F. No.
467/68/2004-Cus.V/ICD (M. SATISH KUMAR REDDY) Director to the Government
of India Note. - The principal rules were published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 937(E),
dated the 31st December, 2009 and was subsequently amended vide number G.S.R.
41(E), dated the 19th January, 2010.
-COPY
OF- CUSTOMS NOTIFICATION (N.T.) NO 42-2010 (N.T.) Dated- May 26- 2010
Exchange
Rate wef 1st June 2010 In exercise of the powers conferred by section 14 of
the Customs Act, 1962 (52 of 1962), and in supersession of the notification of
the Government of India in the Ministry of Finance (Department of Revenue) No.32/2010-CUSTOMS
(N.T.), dated the 28 th April, 2010 vide number S.O.984(E), dated the 28th April,
2010, except as respects things done or omitted to be done before such supersession,
the Central Board of Excise and Customs hereby determines that the rate of exchange
of conversion of each of the foreign currency specified in column (2) of each
of Schedule I and Schedule II annexed hereto into Indian currency or vice versa
shall, with effect from 1 st June, 2010 be the rate mentioned against it in the
corresponding entry in column (3) thereof, for the purpose of the said section,
relating to imported and export goods. SCHEDULE-I S.No . Foreign Currency
Rate of exchange of one unit of foreign currency equivalent to Indian rupees (1)
(2) (3) (a) (b) (For Imported Goods) (For Export Goods) 1. Australian
Dollar 39.60 38.50 2. Canadian Dollar 44.80 43.65 3. Danish Kroner 7.95
7.70 4. EURO 59.10 57.50 5. Hong Kong Dollar 6.15 6.00 6. Norwegian Kroner
7.30 7.10 7. Pound Sterling 69.15 67.25 8. Swedish Kroner 6.05 5.90 9.
Swiss Franc 41.35 40.30 10. Singapore Dollar 34.00 33.15 11. US Dollar 47.85
46.95
SCHEDULE-II
S.No . Foreign Currency Rate of exchange of 100 units of foreign currency
equivalent to Indian rupees (1) (2) (3) (a) (b) (For Imported Goods)
(For Export Goods) 1. Japanese Yen 53.25 51.80
(M.
Satish Kumar Reddy) Director to the Govt. of India
-COPY
OF- CUSTOMS NOTIFICATION (N.T.) NO .43/2010 - Cus.,(N.T.) Dated: May
31, 2010
Revises
tariff value of poppy seeds and brass scraps
In
exercise of the powers conferred by sub-section (2) of section 14 of the Customs
Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient
so to do, hereby makes the following further amendment in the notification of
the Government of India in the Ministry of Finance (Department of Revenue), No.
36/2001-Cus (N. T.), dated, the 3 rd August 2001, namely: - In the said notification,
for the Table, the following Table shall be substituted namely:- "TABLE
S. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff
value US $ (Per Metric Tonne ) (1) (2) (3) (4) 1 1511 10 00 Crude Palm
Oil 447 (i.e. no change) 2 1511 90 10 RBD Palm Oil 476 (i.e. no change) 3
1511 90 90 Others - Palm Oil 462 (i.e. no change) 4 1511 10 00 Crude Palmolein
481 (i.e. no change) 5 1511 90 20 RBD Palmolein 484 (i.e. no change) 6
1511 90 90 Others - Palmolein 483 (i.e. no change) 7 1507 10 00 Crude Soyabean
Oil 580 (i.e. no change) 8 7404 00 22 Brass Scrap (all grades) 3895 9
1207 91 00 Poppy seeds 3228" F. No. 467/4/2010-Cus.V (Abhinav Gupta) Under
Secretary to the Government of India Note: - The Principal notification was
published in the Gazette of India, Extraordinary, vide Notification No. 36/2001
- Customs (N.T.), dated, the 3 rd August, 2001 (S. O. 748 (E), dated, the 3 rd
August, 2001) and was last amended vide Notification No. 37/2010-Customs (N.T.),
dated, the 14 th May, 2010 (S. O. 1112 (E) dated 14 th May, 2010).
-COPY
OF- PUBLIC NOTICE NO 69-2009-14 Dated- May 28-2010
Sub:
Amendment in PN No. 56 Sch of DEPB Rates In exercise of powers conferred under
Paragraph 2.4 of the Foreign Trade Policy, 2009-2014 and Paragraph 1.1 of the
Handbook of Procedures (Vol. I), the Director General of Foreign Trade hereby
makes the following amendments in the "Schedule of DEPB Rates" ( as
modified vide PN No. 56 dated 20.4.2010 ) with immediate effect. 1. Product
Group: Fish and Fish products Product Group: 66 Sl.No . Description DEPB Rate
Value Cap 1 Fish, Crustaceans, Molluscs , Aquatic, Invertebrates and any Aquatic
Animal product of marine or fresh water origin in live or chilled or dried form,
including Ornamental Fish and any Aquatic Animal product of marine or fresh water
origin not covered under S.No . 2 below. 4 Rs . 131 per Kg. (when in dried form)
This issues in the public interest. (R. S. Gujral ) Director General
of Foreign Trade and Ex-Officio Special Secretary to the Government of India
RE
NOTIFICATION NO. 46 /2009-14 DATED 24th MAY 2010
DGFT-Amendments
in Notification No. 44 -09-14 dated 21.5.2010
S.O. (E) In exercise of
the powers conferred by Section 5 of the Foreign Trade (Development & Regulation)
Act, 1992 (No.22 of 1992) read with Para 1.3 and 2.1 of the Foreign Trade Policy,
2009-14, and also read with Notification No. 26 (RE 2008)/2004-09 dated 22.7.2008,
the Central Government hereby makes the following amendments in Notification No.
44 /2009-14 dated 21.5.2010.
2. With immediate effect, Para 2.1 is inserted
at the end of Para 2 of the Notification No. 44 /2009-14 dated 21.5.2010, as follows:
"2.1 Transitional arrangements allowed under Para 1.5 of the Foreign
Trade Policy, 2009-2014, shall, in public interest, not be applicable to the restrictions
imposed as above vide this notification."
3. This issues in public
interest.
Sd/- (R.S.
Gujral) Director General of Foreign Trade And Ex-officio Special Secretary
to the Govt. of India
PUBLIC
NOTICE NO 61-2009-2014 Dated- May 13- 2010
Subject:
New Office address of Regional Authority Puducherry .
In
exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy 2009-2014,
the Director General of Foreign Trade hereby makes the following amendment in
the List of Regional Authorities and their Jurisdiction given under Appendix 1
of Handbook of Procedure (Vol. I) 2009-2014: S. No. Name & address Telephone
No./ Fax No./ E-mail Territorial Jurisdiction 32. The Joint Director General
of Foreign Trade, No. 19-C, II Cross Street, Jawahar Nagar , Boomianpet , Puducherry
- 605005 Tel: 0413 - 2203238 Fax: 0413 - 2206994 Email:jdgft.pon@nic.in
Union Territory of Puducherry , Karaikal , Mahe , Yanam and Districts of Ramasamy
Padayatchiar ( Villupuram ) and South Arcot ( Cuddalore ) of Tamilnadu This
issues in public interest.
(R.S.
Gujral) Director General of Foreign Trade and Ex-Officio Special Secretary
to the Govt. of India
PUBLIC
NOTICE NO 62-2009-2014 Dated- May 13-2010
Subject:
Deletion of para 2.33.1 of HBP Vol.1, 2009-2014
In
exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy,
2009-2014, the Director General of Foreign Trade hereby makes the following amendment
in the Handbook of Procedures( Vol.1 ) 2009-2014:- "Paragraph 2.33.1
hereby stands deleted". 2. This issues in public interest.
(R.S.Gujral) Director
General of Foreign Trade and Ex-officio Special Secretary to the Government
of India
PUBLIC
NOTICE NO 63-2009-14 Dated- May 13- 2010
In
exercise of powers conferred under paragraph 2.4 of Foreign Trade Policy, 2009-14,
Director General of Foreign Trade hereby makes the following amendments in the
Handbook of Procedures (Vol. I): 1. In Appendix 37A, the following Note is
added against the VKGUY entry No. 6 of Table 1A, and entry No. 18 of Table 2.
"For the purpose of claiming VKGUY benefit, the admissible FOB value
for export products covered by ITC HS Code '0305' (falling under this VKGUY entry)
shall be the same as admissible in terms of the Public Notice No. 56/2009-14 dated
20.04.2010 " This issues in Public interest.
(R.S.GUJRAL) DIRECTOR GENERAL OF FOREIGN TRADE Ex-officio Special Secretary
to Government
CUSTOMS
NOTIFICATION (N.T.) NO.36/2010-Cus, (N.T.) Dated: May 5, 2010 In
exercise of the powers conferred by section 157 of the Customs Act, 1962 (52 of
1962), the Central Board of Excise and Customs hereby makes the following regulations,
namely:- 1. Short title and commencement. - (1) These regulations may
be called the Courier Imports and Exports (Electronic Declaration and Processing)
Regulations, 2010. (2) They shall come into force on the date of their publication
in the Official Gazette. 2. Application. - (1) These regulations shall apply
for assessment and clearance of imported or export goods, carried by an Authorised
Courier by air, on behalf of a consignee or consignor at such Customs airports
and in such form and to such extent, as the Board may, by notification, declare
for the purposes of these regulations in this behalf. (2) These regulations
shall not apply to: (a) the following imported goods requiring testing of
samples thereof or reference to the relevant statutory authorities or to experts
before their clearance, namely:- (i) animals and parts thereof, plants and
parts thereof; (ii) perishables; (iii) publications containing maps depicting
incorrect boundaries of India ; (iv)precious and semi-precious stones, gold
or silver in any form; (b) import or export of goods under any export promotion
scheme other than Export Oriented Unit (EOU) scheme and similar schemes referred
to in Chapter 6 of the Foreign Trade Policy 2009-14. (c) the following export
goods, namely:- (i) the goods which are subject to levy of any duty on their
exports; (ii) goods where the value of the consignment is above rupees twenty
five thousand and transaction in foreign exchange is involved: Provided that
the limit of rupees twenty five thousand as provided in this sub-clause shall
not apply to such export consignments where the G.R. Waiver or specific permission
has been obtained from the Reserve Bank of India . 3. Definitions. - (1)
In these regulations, unless the context otherwise requires - (a) "Act"
means the Customs Act, 1962 (52 of 1962); (b) "Authorised Courier",
in relation to imported or export goods, means a person engaged in the international
transportation of time-sensitive documents or goods on door-to-door delivery basis
and is registered in this behalf by a Commissioner of Customs in charge of a Customs
airport; (c) "Customs airport" means the airport declared by the
Board as Customs airport under sub-regulation (1) of regulation 2 of these regulations;
(d) "documents" includes any message, information or data recorded
on paper, cards or photographs and of no commercial value which is for the time
being not liable to any customs duty or subject to any prohibition or restriction
on their export out of or import into India; (e) "electronic declaration"
means the declaration of the particulars relating to the imported or export goods,
lodged in the Customs Computer System at the Customs airport, either through the
data-entry facility provided at the service centre or through the data communication
networking facility provided from the computer system of the Authorised Courier;
(f) "Form" means the Form appended to these regulations; (g)
"gifts" means any bonafide gifts of articles for personal use of a value
not exceeding twenty five thousand rupees per consignment in case of export goods
and ten thousand rupees per consignment in case of imported goods, which are not
subject to any prohibition or restriction on their export out of or import into
India and for which no transfer of foreign exchange is involved; (h) "samples"
means any bonafide commercial samples and prototypes of goods supplied free of
charge of a value not exceeding fifty thousand rupees per consignment for exports
or ten thousand rupees per consignment for imports, which are for the time being
not subject to any prohibition or restriction on their export out of or import
into India and for which no transfer of foreign exchange is involved; (i)
"service centre" means the place specified by the Commissioner of Customs
where data entry, for the purpose of lodgement of declaration or submission of
any information, is carried out; (2) The words used and not defined in these
regulations but defined in the Act shall have the meanings respectively assigned
to them in that Act. 4. Packing of goods to be imported or exported by courier.
- (1) For the purposes of these regulations, the imported or export goods shall
be packed separately for documents and goods. (2) Imported or export goods
shall bear a declaration from the sender or consignor regarding the contents of
each of the packages and the total value thereof. 5. Clearance of imported
goods. - (1) The Authorised Courier or his agent shall file, in an electronic
form, a manifest for imported goods prior to its arrival, with the proper officer
the Express Cargo Manifest - Import (ECM-I) in Form A; (2) (a) The Courier
packages containing the imported goods shall not be dealt with in any manner except
as may be directed by the Commissioner of Customs; (b) No person shall, except
with the permission of proper officer, open any packages of imported goods. (3)
The Authorised Courier or his agent who has passed the examination referred to
in regulation 8 or regulation 19 of the Customs House Agents Licensing Regulations,
2004 shall make entry of goods imported by him, in an electronic declaration,
by presenting to the proper officer the Courier Bill of Entry-XI (CBE-XI) for
documents in Form B or the Courier Bill of Entry-XII (CBE-XII) for free gifts
and samples in Form C or the Courier Bill of Entry-XIII (CBE-XIII) for low value
dutiable consignments in Form D or the Courier Bill of Entry-XIV (CBE-XIV) for
other dutiable consignments in Form E. (4) The Authorised Courier shall present
imported goods brought by him or by his agent, in such manner as to the satisfaction
of the proper officer or as per instructions issued by the Board or Public Notice
issued by Commissioner of Customs, from time to time, for inspection, screening,
examination and assessment thereof. (5) Any imported goods which are not taken
clearance after the expiry of a period of thirty days of its arrival, shall be
detained by proper officer and shall be sold or disposed of by the person having
custody thereof, after issuing a notice to the Authorised Courier and to the declared
importer, if any, and the charges payable for storage and holding of such goods
shall be payable by the Authorised Courier. 6. Clearance of export goods.
- (1) Notwithstanding anything contained in these regulations, the Authorised
Courier or his agent shall, on or after such date as the Board may specify, by
notification in the Official Gazette, file in an electronic form, a manifest for
export goods before its export with the proper officer the Courier Export Manifest
(CEM) in Form F. (2) (a) The courier packages containing the export goods
shall not be dealt with after presentation of documents to the proper officer
in any manner except as may be directed by the Commissioner of Customs; (b)
No person shall, except with the permission of proper officer, open any package
of export goods, brought into the Customs area, to be loaded on a flight. (3)
The Authorised Courier or his agent who has passed the examination referred to
in regulation 8 or regulation 19 of the Customs House Agents Licensing Regulations,
2004 shall make entry of goods for export, in Courier Shipping Bill-III (CSB-III)
for documents in Form G or, as the case may be, in the Courier Shipping Bill-IV
(CSB-IV) for goods in Form H, before presenting it to the proper officer. (4)
The Authorised Courier shall present the export goods to the proper officer, in
such manner as to the satisfaction of the proper officer or as per instructions
issued by the Board or Public Notice issued by Commissioner of Customs, from time
to time, for inspection, screening, examination and assessment thereof. (5)
Any export goods brought into customs area for export purpose and have not been
exported within seven days of arrival of such goods into such area or within such
extended period as permitted by the proper officer in case of delay due to such
reasons which the proper officer considers to be beyond the control of the concerned
Authorised Courier and declared exporter, may be detained by the proper officer
and sold or disposed off by the person having custody thereof, after issuing notice
to the concerned Authorised Courier and declared exporter provided the charges
payable, for storage and handling of such goods are paid by such Authorised Courier.
7. Application for registration of Authorised Courier. - (1) Every person
intending to operate as an Authorised Courier shall make an application in the
Form-I to the Commissioner of Customs having jurisdiction over the Customs airport
where the goods are to be imported or exported, for registration in this behalf.
(2) The Commissioner of Customs may dispose of the application under sub-regulation
(1) within forty five days of the receipt of the application. 8. Conditions
to be fulfilled by the applicant. - (1) The person applying for registration as
an Authorised Courier shall disclose to the satisfaction of the Commissioner of
Customs that he is financially viable and in support thereof he shall produce
to the said Commissioner of Customs a certificate issued by a scheduled bank or
such other proof acceptable to the Commissioner of Customs evidencing possession
of assets of a value not less than twenty five lakh rupees. (2) The electronic
declaration for clearance of imported or export goods shall be made by the persons
who has passed the examination referred to in regulation 8 or regulation 19 of
the Custom House Agents Licensing Regulations, 2004. Provided that a transition
period of six months from the date of publication of these Regulations shall be
allowed for fulfillment of the condition mentioned in sub-regulation (2) by an
authorised courier. (3) The applicant shall undertake to comply with the provisions
and abide by all the provisions of the Act and rules, regulations, notifications
and orders issued thereunder. 9. Scrutiny of application. - On receipt of
application for registration under regulation 7, the Commissioner of Customs,
may make enquiries for verification of the particulars set out in the application
and also such other enquiries as the Commissioner of Customs may deem necessary
for such registration including enquiries about the identity, bonafides and reputation
of the applicant. 10. Registration. - (1)If on scrutiny of the application
filed by a person under regulation 7, the Commissioner of Customs is satisfied
that the applicant fulfils the requirements of the registration, the said applicant
may be registered as an Authorised Courier. (2)The registration granted under
sub-regulation (1) shall be valid for an initial period of two years, but may
be renewed from time to time, in accordance with the procedure provided in sub-regulation
8. (3) An Authorised Courier who is already registered under Courier Imports
and Exports (Clearance) Regulations, 1998 on or before the date of coming into
force of these regulations in a Customs airport, shall be considered as an Authorised
Courier registered for the purpose of these regulations only on compliance of
the conditions stipulated in regulation 8. (4) The Authorised Courier referred
to in sub-regulation (3) shall comply with the conditions within a period which
shall not exceed a period of three months: Provided that the Commissioner
of Customs may extend the said period which shall not exceed a period of nine
months. Provided further that nothing contained in this sub-regulation shall
apply in respect of condition prescribed under sub-regulation (2) of regulation
8. (5) The registration granted under sub-regulation (3) shall be valid for
a period of ten years. (6) The Commissioner of Customs may, if he finds that
the applicant has been convicted in any court of law, or any criminal proceedings
are pending before any court of law against the applicant, reject an application
filed for registration of Authorised Courier. (7) The Authorised Courier,
who is registered under sub regulation (1) or sub regulation (3), shall transact
business in other Customs airports within the country subject to an intimation,
as specified in Form - J, to the Commissioner of Customs having Jurisdiction over
the Customs airport where he intends to transact business. (8) The Commissioner
of Customs may, on application made before the expiry of the validity of the registration
under sub-regulation (2) or sub-regulation (5), renew the registration for a period
of ten years from the date of expiration of the original registration or the last
renewal of such registration, as the case may be, if the performance of the Authorised
Courier is found to be satisfactory with reference to the absence of any complaints
of misconduct including non-compliance of any of the obligations specified in
regulation 12. (9) The Commissioner of Customs may, for reasons to be recorded
in writing, by order, review the registration granted under sub-regulation (1)
or sub-regulation (3) before the expiry of the ten years. 11. Execution of
bond and furnishing of security. - (1) The Commissioner of Customs shall require
the applicant to enter into a bond with a security of ten lakhs rupees in case
of major international airports of Mumbai, Delhi, Calcutta and Chennai and five
lakhs rupees in case of other airports in the form of cash deposit or bank guarantee
in the name of the Commissioner of Customs for complying with the provisions of
the Act, rules and regulations made thereunder and the condition of the said bond
shall also be that the applicant shall agree to pay the duty, if any, not levied
or short levied, with interest if applicable on any goods taken clearance of by
the Authorised Courier if in the opinion of the Assistant Commissioner of Customs
or Deputy Commissioner or Customs the same cannot be recovered from the importer
or the exporter. (2) The Authorised Courier who has been granted a registration
under regulation 10 or who has intimated in the Form J to the Commissioner of
Customs having jurisdiction over the Custom airport from where he has to transact
the business, shall furnish the bond and security as specified under sub-regulation
(1) for each of the Customs airports 12. Obligations of Authorised Courier.
- (1)An Authorised Courier shall - (i) obtain an authorisation, from each
of the consignees or consignors of the imported goods for whom or from whom such
Courier has imported such goods; or consignees or consignors of such export goods
which such Courier proposes to export, to the effect that the Authorised Courier
may act as agent of such consignee or consignor, as the case may be, for clearance
of such imported or export goods by the proper officer; (ii) file electronic
declarations, for clearance of imported or export goods, through a person who
has passed the examination referred to in regulation 8 or regulation 19 of the
Customs House Agents Licensing Regulations, 2004 and who are duly authorised under
section 146 of the Act; Provided that a transition period of six months from
the date of publication of these regulations shall be allowed to the Authorised
Courier for fulfillment of the obligation. (iii) advise his consignor or consignee
to comply with the provisions of the Act, rules and regulations made thereunder
and in case of non-compliance thereof, he shall bring the matter to the notice
of the Assistant Commissioner of Customs or Deputy Commissioner of Customs; (iv)
verify the antecedent, correctness of Importer Exporter Code (IEC) Number, identity
of his client and the functioning of his client in the declared address by using
reliable, independent, authentic documents, data or information; (v) exercise
due diligence to ascertain the correctness and completeness of any information
which he submits to the proper officer with reference to any work related to the
clearance of imported goods or of export goods; (vi) not withhold information
communicated to him by an officer of customs, relating to assessment and clearance
of imported goods as well as inspection, examination and Clearance of export goods,
from a consignor or consignee who is entitled to such information; (vii) not
withhold any information relating to assessment and clearance of imported goods
or of export goods, from the Assessing Officer; (viii) not attempt to influence
the conduct of any officer of Customs in any matter pending before such officer
or his subordinates by the use of threat, false accusation, duress or offer of
any special inducement or promise of advantage or by the bestowing of any gift
or favour or other thing or value; (ix) maintain records and accounts in such
form and manner as may be directed from time to time by an Assistant Commissioner
of Customs or Deputy Commissioner or Customs for a period of five years and submit
them for inspection to the Assistant Commissioner of Customs or an officer authorised
by him, wherever required; and (x) abide by all the provisions of the Act
and the rules, regulations, notifications and orders issued thereunder. 13.
Suspension or revocation of registration of authorised courier. - (1) The Commissioner
of Customs may revoke the registration of an Authorised Courier and also pass
an order for forfeiture of security on any of the following grounds namely:- (a)
failure of the Authorised Courier to comply with any of the conditions of the
bond executed by him under regulation 11; (b) failure of the Authorised Courier
to comply with any of the provisions of these regulations; (c) misconduct
on the part of Authorised Courier whether within the jurisdiction of the said
Commissioner or anywhere else, which in the opinion of the Commissioner renders
him unfit to transact any business in the Customs airport: Provided that no
such revocation shall be made unless a notice has been issued to the Authorised
Courier informing him the grounds on which it is proposed to revoke the registration
and he is given an opportunity of making a representation in writing and a further
opportunity of being heard in the matter, if so desired: Provided further
that, in case the Commissioner of Customs considers that any of such grounds against
an Authorised courier shall not be established prima facie without an inquiry
in the matter, he may conduct an inquiry to determine the ground and in the meanwhile
pending the completion of such inquiry, may suspend the registration of the Authorised
Courier: Provided also that if no ground is established against the Authorised
Courier, the registration so suspended shall be restored. (2) Any Authorised
Courier or the officer of the Customs authorised by the Chief Commissioner of
Customs in this behalf, if aggrieved by the order of Commissioner of Customs passed
under sub-regulation (1), may represent to the Chief Commissioner of Customs in
writing against such order within sixty days of communication of the order to
the Authorised Courier, and the Chief Commissioner of Customs shall, after providing
the opportunity of being heard to the parties concerned, dispose of the representation
as expeditiously as may be possible. 14. Penalty. - An Authorised Courier,
who contravenes any of the provisions of these regulations or abets such contravention
or who fails to comply with any provision of these regulations with which it was
his obligation to comply, shall be liable to a penalty which may extend to fifty
thousand rupees. F. No. 450/54/2008-Cus.IV
(Navraj
Goyal) Under Secretary to the Government of India FORM - I
[see
regulation 7(1)] To
The
Commissioner of Customs, ……………………………
(Address)
Subject:
Application Form for registration / renewal of authorised courier under the Courier
Imports and Exports (Electronic Declaration and Processing) Regulations, 2010
issued under Section 157 of the Customs Act, 1962 (52 of 1962). Sir / Madam,
I/we, the undersigned hereby submit the following details for registration
as an authorised courier under the Courier Imports and Exports (Electronic Declaration
and processing) Regulations, 2010 : This application is for (i) New registration
(ii) For new PAN based Registration No. for existing registrants. (iii)
Amendment to information pertaining to existing registrants. (1 )Name of the
Authorized Courier: (2)Name of Customs House where registration is required:
(3) Existing Authorized Courier Registration No.(s), date & Customs Airport,
if any: (4) Permanent Account No. (PAN No.): (5) Constitution of Business:
(Specify whether Proprietorship, Partnership, Public Ltd. / Private Ltd. Company
Others.) (6) Registered Office address: (Complete details of the following
to be provided: Flat /Building/Plot No., Name of premises / Building, Road / Street
Name, Locality, City, State, Pin code No., Telephone Nos., Fax No., Email Address)
(7) Name and Residential Address of the Proprietor, Partners of the partnership
firm, of Directors of the Company or the persons in charge in case of other category,
as the case may be: (Complete details of the following to be provided: Flat
/Building/Plot No., Name of premises / Building, Road / Street Name, Locality,
City, State, Pin code No., Telephone Nos., Fax No., Email Address). (8) Name,
designation, residential address and educational qualification / knowledge of
Customs law & procedure of duly authorized signatory and employees who will
actually be engaged in work of Authorized courier: (Complete details of the
following to be provided: Flat /Building/Plot No., Name of premises / Building,
Road / Street Name, Locality, City, State, Pin code No., Telephone Nos., Fax No.,
Email Address) (9) In case, it is desired to appoint employees, Name, designation
residential address and educational qualification / knowledge of Customs law &
procedure of the employees, as the case may be: (Complete details of the following
to be provided: Flat /Building/Plot No., Name of premises / Building, Road / Street
Name, Locality, City, State, Pin code No., Telephone Nos., Fax No., Email Address)
(10) Particulars of the No. of consignments, value of cargo cleared and duty
paid as Authorized Courier during last three financial years: (11) Details
of Bank Accounts used for business transaction by the Registrant: (Bank Account
No., Name of Bank, Name of the Branch & address to be provided.) (12)
Details of Service Tax Registration: (Service Tax Registration No., date of
Issue, Commissionerate, Division, Range). (13) Whether the registration as
Authorized Courier held under these Regulations was cancelled or suspended: (14)
Whether the applicant or any of the persons proposed to be employed by him have
been penalized, convicted or prosecuted under any of the provisions of the Customs
Act,1962 (52 of 1962) or any other law for the time being in force: (15) Declaration:
I am / we are authorized to make the following declarations: I / We declare
that all particulars given herein are true and correct. I / We hereby affirm
that I/we have read the Courier Imports and Exports (Electronic Declaration and
Processing) Regulations, 2010 and agree to abide by them. I / We hereby undertake
to intimate any change in respect of the information provided in the aforesaid
application within a period of 30 days. Signature and name of the applicant(s)
or authorised signatory Date: Place: FORM - J [see regulation
10 (4)] FORM FOR INTIMATION OF AUTHORISED COURIER To The Commissioner
of Customs, ……………………………
(Address) Subject: Application Form for intimation of authorised courier under
the Courier Imports and Exports (Electronic Declaration and Processing) Regulations,
2010 issued under Section 157 of the Customs Act, 1962 (52 of 1962). Sir /
Madam, I/we, the undersigned hereby intimate the following details for functioning
as an authorised courier under the Courier Imports and Exports (Electronic Declaration
and Processing) Regulations, 20109 : This application is for (i) Form
of Intimation for working as Authorised Courier at a Custom House other than Customs
House of Registration (ii) Amendment to information pertaining to Existing
Intimations (1) Name of the Authorized Courier: (2) Custom House where
PAN-based Registration of Authorised Courier was issued under Regulation 7(1)
(Name and place): ( 3) Name of Customs House where intimation is required:
(4) Existing Authorized Courier Registration Nos, date & Customs Airport,
if any: (5) Permanent Account Number (PAN No.): (6) Constitution of Business:
(Specify whether Proprietorship, Partnership, Public Ltd / Private Ltd. Company
Others.) (7) Registered Office address: (Complete details of the following
to be provided: Flat /Building/Plot No., Name of premises / Building, Road / Street
Name, Locality, City, State, Pin code No., Telephone Nos., Fax No., Email Address).
(8) Name and residential address of the Proprietor, Partners of the partnership
firm, of Directors of the Company or the persons in charge in case of other category,
as the case may be: (Complete details of the following to be provided: Flat
/Building/Plot No., Name of premises / Building, Road / Street Name, Locality,
City, State, Pin code No., Telephone Nos., Fax No., Email Address). (9) Name
and Residential address of duly authorized signatory and employees who will actually
be engaged in work of Authorized courier at Custom House of Intimation. (Complete
details of the following to be provided: Flat /Building/Plot No., Name of premises
/ Building, Road / Street Name, Locality, City, State, Pin code No., Telephone
Nos., Fax No., Email Address) (10) In case, it is desired to appoint employees,
name, designation residential address and educational qualification / knowledge
of Customs law & procedure of the employees, as the case may be: (Complete
details of the following to be provided: Flat / Building/Plot No., Name of premises
/ Building, Road / Street Name, Locality, City, State, Pin code No., Telephone
Nos., Fax No., Email Address) (11) Particulars of the No. of consignments,
value of cargo cleared and duty paid as Authorized Courier during last three years:
(12)Details of Bank Accounts used for business transaction by the Registrant:
(Bank Account No., Name of Bank, Name of the Branch& address to be provided.)
(13) Details of Service Tax Registration: (Service Tax Registration No.,
date of Issue, Commissionerate,Division, Range). (14) Whether the registration
as Authorized Courier held under these Regulations was cancelled or suspended:
(15) Whether the applicant or any of the persons proposed to be employed by
him have been penalized, convicted or prosecuted under any of the provisions of
the Customs Act,1962 (52 of 1962) or any other law for the time being in force:
DECLARATION: I am / we are authorized to make the following declarations:
I / We declare that all particulars given herein are true and correct. I
/We hereby affirm that I/we have read the Courier Imports and Exports (Electronic
Declaration and Processing) Regulations, 2009 and agree to abide by them. I
/ We hereby undertake to intimate any change in respect of the information provided
in the aforesaid application within a period of 30 days. Signature and name
of the applicant(s) or authorised signatory Date: Place: FORM
- 'A' [see regulation 5(1)] EXPRESS CARGO MANIFEST - IMPORT (ECM-I ) (Electronic
Filing) Sl. No. Description Details 1. Courier Registration Number 2.
Name and address of the Authorized Courier 3. Name and address of the on-board
courier, wherever applicable. 4. Import General Manifest Number 5. Name
of the airlines 6. Airport of arrival 7. Flight No. 8. Date of arrival
9. Time of arrival 10. Airport of shipment 11. Shipment/Consignment-wise
Details:
(a) MAWB No. (i) HAWB No. (1)Consignment Reference Note
(CRN) No., where applicable (ii) Number of packages / pieces / bags / ULDs (iii)
Weight (in Kgs.) (iv)Descriptionof goods (v)Name and address of the Consignor
Shipment/Consignment-wise Details (Continued): (vi) Name and
address of the Consignee (vii) Invoice value (viii) Invoice Currency (ix) Shipment
to be transshipped, if Yes/ No (x) If Shipment to be transshipped, Place of transshipment
DECLARATION I / we declare that all statements and particulars contained
in this form and other documents presented herewith are complete, correct and
true, in every respect. Signature and name of the authorised courier Date:
Place: NOTE: Upon submission of the ECM, the Customs Department serial
number along with the date would be generated. FORM - 'B' [see regulation
5(3)] COURIER BILL OF ENTRY - XI (CBE-XI) FOR DOCUMENTS (Electronic Filing)
S. No. Description Details 1. Express Cargo Manifest Reference No. 2.
Courier Registration Number 3. Name and address of the Authorized Courier
4. Name of the airlines 5. Airport of arrival 6. First port of arrival,
wherever applicable. 7. Flight No. 8. Date of arrival 9. Time of arrival
10. Airport of shipment 11. Total No. of consignments / HAWB 12. Number
of bags DECLARATION I / we declare that the authorization from each of
the consignees or consignors relating to the above mentioned consignments have
been obtained by me / us to act as an agent for the clearance of the goods. I
/ We hereby declare that goods imported as per this Bill of Entry include only
document of no commercial value and do not include goods which are prohibited
or restricted for import into India under any law for the time being in force.
Signature and name of the authorised courier Place: Date: FORM
- C [see regulation 5(3)] COURIER BILL OF ENTRY - XII (CBE-XII) FOR SAMPLES
AND GIFTS (Electronic Filing) S. No. Description Details 1. Courier
Registration Number 2. Name and address of the Authorized Courier 3. Name
of the airlines 4. Airport of arrival 5. First port of arrival, wherever
applicable. 6. Flight No. 7. Date of arrival 8. Time of arrival 9.
Airport of shipment 10. Country of exportation 11(i) . HAWB No. 11(ii).
CRN No., if applicable. 12. Unique Consignment reference No. 13. Name
and address of the consignor 14. Name and address of the consignee 15.
IEC Code 16. IEC Branch Code 17. No. of items included in HAWB
18.
Item-wise Details:
CTH Nature of shipment (Gifts / Samples) Country of
origin Description of goods Name & address of manufacturer (I) (II) (III)
(IV) (V)
Item-wise Details (continued): No. of packages
Marks and number of packages, wherever applicable Unit of measure Quantity Invoice
No. (VI) (VII) (VIII) (IX) (X)
Item-wise Details (continued):
Invoice value Invoice currency rate of exchange Assessable value in Rs. (As
per section 14 of the Customs Act, 1962) Notification
DECLARATION
I / we declare that the authorization from each of the consignees or consignors
relating to the above mentioned consignments have been obtained by me / us to
act as an agent for the clearance of the goods. I / We hereby declare that
goods imported as per this Bill of Entry include only bonafide commercial samples,
prototypes of goods and bonafide gifts of articles for personal use of value not
exceeding Rs.Ten thousand and which are for the time being not subject to any
prohibition or restriction on their import into India. I / We enclose herewith________(number)
of Airway bills and _________ (Number) of Invoices for the aforesaid consignments
with this Bill of Entry. I / we hereby declare that the contents of this Bill
of Entry are complete, correct and true, in every respect and are in accordance
with the airway bills, the invoices and other documents attached herewith. Date: Place:
Signature and name of the authorised courier NOTE: Uploading images
of HAWB and invoices shall be optional in CBE-XII while filing through bulk upload
or otherwise. FORM - D [see regulation 5(3)] COURIER BILL OF ENTRY
- XIII (CBE-XIII) FOR NON-DOCUMENTS (LOW VALUE DUTIABLE SHIPMENTS) (ELECTRONIC
FILING) S. No. Description Details 1. Courier Registration Number 2.
Name and address of the Authorized Courier 3. Name of the airlines 4.
Airport of arrival 5. First port of arrival, wherever applicable. 6. Flight
No. 7. Date of arrival 8. Time of arrival 9. Airport of shipment 10.
Country of exportation 11(i) . HAWB No. 11(ii). CRN No., if applicable.
12. Unique Consignment reference No. 13. Name and address of the consignor
14. Name and address of the consignee *15. IEC Code *16. IEC Branch
Code 17. Special requests 18. No. of items included in HAWB
19.
Item-wise Details:
Licence Type Licence No. CTSH CETSH Country of origin
(I) (II) (III) (IV) (V)
Item-wise Details (continued): Description
of goods Name and address of manufacturer No. of packages Marks and No. of packages,
wherever applicable Unit of measure (VI) (VII) (VIII) (IX) (X)
Item-wise Details (continued): Quantity Invoice No. Invoice value Currency
for invoice Rate of exchange RSP per unit in INR. Invoice terms (FOB / CIF/
C&F / C&I) (XI) (XII) (XIII) (XIV) (XV) (XVI) (XVII)
Item-wise Details (continued): Insurance Item-wise details of other charges
as per section 14 of the Customs Act, 1962 (XXIII) (XXIV) Charge type
Charge amount
Item-wise Details (continued): Notification used per item (XXV) (A)
(B) (C) (D) (E) Notification type Notification No. Sl. No. in notification
List No. List Sl.No. DECLARATION I / we declare that the authorization
from each of the consignees or consignors relating to the above mentioned consignments
have been obtained by me / us to act as an agent for the clearance of the goods.
I / we hereby declare that I / we have not received any other documents or
information showing a different price, value, quantity, or description of the
said goods and that if at any time hereafter I / we receive any documents from
the importer showing a different state of facts I / we will immediately make the
same known to the Commissioner of Customs. I / we hereby declare that the
contents of this Bill of Entry are complete, correct and true, in every respect
and are in accordance with the airway bills, the invoices and other documents
attached herewith. I / We enclose herewith________(number) of Airway bills
and _________ (Number) of Invoices for the aforesaid consignments with this Bill
of Entry. Date: Place: Signature and name of the authorised courier
NOTE: (i) Uploading images of HAWB and invoices shall be mandatory in CBE-XIII
while filing through bulk upload or otherwise. (ii)* Details relating to Sl.No.15
and 16 shall be mandatory in CBE-XIII after completion of transitional period
of six months from the date of publication of Courier Imports and Exports (Electronic
Declaration and Processing) Regulations, 2010. FORM - E [see Regulation
5(3)] COURIER BILL OF ENTRY - XIV (CBE-XIV) FOR DUTIABLE GOODS (ELECTRONIC
FILING) Courier Registration Number (1) Name and address of the Authorized
Courier (2) PARTICULARS OF CUSTOM HOUSE AGENT (3) Licence Number
(i) Name (ii) Address (iii) PARTICULARS OF IMPORTER (4) IEC
Code (i) IEC Branch Code (ii) Name (iii) Address (iv) Category
of Importer ( Govt. Depts, Govt. Untertakings, Diplomatic/UN, others) (v)
If others, please specify (vi) Type of Importer (100 % EOU or not, please
specify) (vii) Authorised dealer code of the Bank (5) Category of
the Bill of Entry (Home Consumption, Warehouse,Ex-Bond) (6) Bill of Entry
Number and date (7) Class Code (CC) ( New, Split, Post, Part) (8)
Type of Bill of Entry ( Normal, Prior, Advance) (9) High Sea sale
(10) Seller particulars in case of High Sea sale (11) IEC Code
(A) IEC Branch Code (B) Name (C) Address (D) Use of the first
proviso under section 46(1), Customs Act,1962: (12) Special Requests (13)
Reason in case of extension of Time Limit is Requested (14) Airlines (15)
Flight Number (16) Airport of Arrival (17) Date of Arrival (18)
Airport of Shipment (19) Country of Origin (if same for all goods of the
consignment, otherwise declare item-wise) (20) Country of Consignment (21)
IGM details (22) MAWB No. (23) MAWB date (24) HAWB No. (25)
IGM No. (A) Date of entry Inward (B) CRN No., if applicable. (A)
HAWB date (26) Marks & Numbers (27) Number of Packages (28)
Type of Packages (29) Unit of measure for gross weight Gross weight (30)
Gross weight (31) Additional information for clearance of goods at
Inland Container Depots (ICDs) (32) Name of Gateway Port (A) Gateway
IGM Number (B) Date of Entry Inwards of Gateway Port (C) Container
details (In case of clearance at ICDs and Sea Ports), wherever applicable (33)
Container No. (A) Seal Number (B) FCL / LCL (C) Bond details
(34) Whether Clearance of imported goods is sought against any type of
bond already registered with Customs? (A) BOND TYPE (Provisional Duty
Bond, Re-Export Bond, Letter of Guarantee, Warehouse Bond, Project Bond, EOU Bond(B-17
Bond), End use Bond, Test Bond, Undertaking ITC Bond, Cash Deposit, Jobbing etc.)
(A - 1) Bond Number (A - 2) DETAILS OF PROCUREMENT CERTIFICATE, IF
ANY (35) Procurement Under 36/96 Customs ? (i) Procurement Certificate
Number (ii) Date of Issuance of Certificate (iii) Location Code of
the Central Excise Office issuing the Certificate (iv) Commissionerate (v)
Division (vi) Range (vii) IMPORT UNDER MULTIPLE INVOICES (36)
If Imports are affected under multiple invoices (i) Number of Invoices
(i) - 1 Total Freight (i) - 2 Total Insurance (i) - 3 DETAILS
OF EACH INVOICE (37) Invoice Number (i) Date of Invoice (ii) Purchase
order Number (iii) Date of Purchase Order (iv) Contract Number (v)
Date of Contract (vi) Letter of Credit (vii) Date of letter of Credit
(viii) Details of Items and Related Information for each Invoice (ix)
Invoice Number (ix) - 1 Supplier Details (ix) -2 Name of the Supplier
(ix) -2(a) Address of the Supplier (ix) -2(b) Country (ix) -2(c) If
Supplier is not the seller (ix) -3 Name of the Seller (ix) -3(a) Address
of the Seller (ix) -3(b) Country (ix) -3(c) Broker / Agent Details
(ix) -4 Name of the Broker / Agent (ix) -4(a) Address of the Broker/Agent
(ix) -4(b) Country (ix) -4(c) Nature of Transaction (Sale, Sale on
consignment basis,Hire/rent, Replacement, Gift, Sample, Free of Cost, others (ix)
-5 If others, Please specify (ix) -5(a) Terms of Payment (LC,DP/TA,FOC,
Others) (ix) -6 If others, Please specify (ix) -6(a) Conditions or
Restrictions, if any Attached to sale (ix) -7 Method of Valuation (ix)
-8 Terms of Invoice (ix) -9 Invoice Value (ix)-10 Invoice Currency
(ix) -11 Freight, Insurance and Other Charges (ix) -12 Freight
(ix) -12(a) Rate (ix) -12(a)(i) Amount (ix) -12(a)(ii) Currency (ix)
-12(a)(iii) Insurance (ix) -12(b) Rate (ix) -12(b)(i) Amount (ix)
-12(b)(ii) Currency (ix) -12(b)(iii) Loading, Unloading and Handling Charges
as per Rule 9(2)(b) of the Customs Valuation Rules, 1988 (ix) -12(c) Rate
(ix) -12(c)(i) Amount (ix) -12(c)(ii) Currency (ix) -12(c)(iii) Other
Charges Related to the Carriage of goods (ix) -12(d) Rate (ix) -12(d)(i)
Amount (ix) -12(d)(ii) Currency (ix) -12(d)(iii) Cost and Service
Not Included in the Invoice and Other Miscellaneous Charges (ix) - 13 Brokerage
and Commission (ix) -13(a) Rate (ix) -13(a)(i) Amount (ix) -13(a)(ii)
Currency (ix) -(13)(a)(iii) Cost of containers (ix) -13(b) Rate (ix)
-13(b)(i) Amount (ix) -13(b)(ii) Currency (ix) -(13)(b)(iii) Cost
of Packing (ix) -13(c) Rate (ix) -13(c)(i) Amount (ix) -13(c)(ii)
Currency (ix)-(13)(c)(iii) Dismantling, Transport and handling in the
Country of Export or any other Country (ix)-13(d) Rate (ix) -13(d)(i)
Amount (ix) -13(d)(ii) Currency (ix) -(13)(d)(iii) Cost of Goods and
Services Supplied by Buyer (ix) -13(e) Rate (ix) -13(e)(i) Amount (ix)
-13(e)(ii) Currency (ix)-(13)(e)(iii) Documentation (ix) -13(f) Rate
(ix) -13(f)(i) Amount (ix) -13(f)(ii) Currency (ix) -(13)(f)(iii)
Country of Origin Certificate (ix) -13(g) Rate (ix) -13(g)(i) Amount
(ix) -13(g)(ii) Currency (ix) -(13)(g)(iii) Royalty and Licence Fees
(ix) -13(h) Rate (ix) -13(h)(i) Amount (ix) -13(h)(ii) Currency (ix)-(13)(h)(iii)
Value of Proceeds which accrue to seller (ix) -13(i) Rate (ix) -13(i)(i)
Amount (ix) -13(i)(ii) Currency (ix)-(13)(i)(iii) Cost of Warranty
of Service, if any, Provided by the seller or on Behalf of the seller (ix)
-13(j) Rate (ix) -13(j)(i) Amount (ix) -13(j)(ii) Currency (ix) -(13)(j)(iii)
Other Costs or Payments, if any, to Satisfy the Obligation of the seller (ix)
-13(k) Rate (ix) -13(k)(i) Amount (ix) -13(k)(ii) Currency (ix) -(13)(k)(iii)
Other Charges and Payments, if any (ix) -13(l) Rate (ix) -13(l)(i)
Amount (ix) -13(l)(ii) Currency (ix)-(13)(l)(iii) Discount Amount
(ix) - 14 Discount Currency (ix) - 15 Additional charges, if any,
for purchase on High Seas (In Rs.) (ix) - 16 Rate (%) (ix) - 16 (a)
Amount (in Rs.) (ix) - 16 (b) Any other Information which has a bearing
on Value (ix) - 17 Details of Special Valuation Branch (SVB) Loading wherever
Applicable (at Invoice Level) (Fill only if same for all goods of the consignment
else declare at item level) (ix) - 18 Are the Buyer and Seller Related?
YES / NO (ix) - 18 (a) If the buyer and Seller are Related, has the Relationship
been examined Earlier by the SVB (yes / No) (ix) - 18 (b) If examination
earlier by the SVB (ix) 18 (b) (i) SVB Reference Number (ix) 18 (b) (i)(1)
SVB Date (ix) 18 (b) (i)(2) Indication for Provisional/Final (ix) 18 (b)
(i)(3) Item-wise Information under each Invoice (ix) - 19 Case of
Re-Import (ix) - 19(a) Import against Licence (ix) - 19(b) Serial Number
of Invoice (ix) - 19(c) Item Description (ix) - 19(d) General Description
(ix) - 19(e) Currency for Unit Price (ix) - 19(f) Unit Price (ix)
- 19(g) Unit of Measure (ix) - 19(h) Quantity (ix) - 19(i) Accessories,
if any (ix) - 19(j) Name of Manufacturer (ix) - 19(k) Brand (ix) -
19(l) Model (ix) - 19(m) Grade (ix) - 19(n) Specification (ix)
- 19(o) End Use of Item (ix) - 19(p) Manufacturing (ix) - 19(p)(i)
Trading (ix) - 19(p)(ii) Self Consumption (ix) - 19(p)(iii) Country
of Origin (ix) - 19(q) Assessable Value (ix) - 19(r) Details, in case
of previous Imports (ix) - 19(s) Bill of Entry Number (ix) - 19(s) (i)
Date (ix) - 19(s) (ii) Currency (ix) - 19(s) (iii) Unit Value (ix)
- 19 (s)(iv) Custom House (ix) - 19(s)(v) Classification Details (ix)
- 19(t) RITC (ix) - 19(t)(i) CTSH (ix) - 19(t)(ii) CETH (ix) -
19(t)(iii) Currency of Retail Sales Price (ix) - 19(t)(iv) Retail Sales
Price per Unit (ix) - 19(t)(v) EXIM Scheme Code, if any (ix) - 19(t)(vi)
Para. No. / Year of EXIM Policy (ix) - 19(t)(vii) Details of Special Valuation
Branch (SVB) Loading wherever Applicable (at Item level) (ix) - 19 (u) Are
the Buyer and Seller Related ? YES / NO (ix) - 19 (u) (i) If the buyer
and Seller are Related, has the Relationship been examined earlier by the SVB
(yes / No) (ix) - 19 (u)(ii) If Examined earlier by the SVB (ix) -
19 (u)(ii)(1) SVB Reference Number (ix) - 19 (u)(ii)(2) SVB Date (ix)
- 19 (u)(ii)(3) Indication for Provisional/ Final (ix) - 19 (u)(ii)(4) Notifications
Used for the Item (Customs and Excise) (ix) - 19 (v) Notification Type
(ix) - 19 (v)(i) Notification Number (ix) - 19 (v)(ii) Serial Number in
Notification (ix) - 19 (v)(iii) List Number (ix) - 19 (v)(iv) List
Serial Number (ix) - 19 (v)(v) Shipping Bills Details in case of Re- Import
(ix) - 19 (w) Shipping Bill Number (ix) - 19 (w)(i) Shipping Bill
Date (ix) - 19 (w)(ii) Port of Export (ix) - 19 (w)(iii) Invoice Number
of Shipping Bill (ix) - 19 (w)(iv) Item Serial Number in Shipping Bill (ix)
- 19 (w)(v) Payments made for Export on a Pro-Rata Basis (In Rupees) (ix)
- 19 (w)(vi) Freight (ix) - 19 (w)(vi)(1) Insurance (ix) - 19 (w)(vi)(2)
Details Relating to Duty Exemption based on EXIM Schemes and Licence Particulars
(ix) - 19 (x) Additional Duty Exemption Requested (ix) - 19 (x)(i)
Notification Number (ix) - 19 (x)(ii) Serial Number in Notification (ix)
- 19 (x)(iii) Licence Registration Number (ix) - 19 (x)(iv) Licence Registration
Date (ix) - 19 (x)(v) Debit Value (Rs.) (ix) - 19 (x)(vi) Unit of
Measure for Quantity to be Debited (ix) - 19 (x)(vii) Debit Quantity (ix)
- 19 (x)(viii) Item Serial Number in Licence (ix) - 19 (x)(x) Declaration
(For the CoURIER Bill of Entry-XIV for Home Consumption) DECLARATION (Declaration
to be signed by the Courier / Customs House Agent) 1. I / We declare that
the contents of this Bill of Entry for goods imported against Airway Bill Number
dated are in accordance with the invoice number dated and other documents presented
herewith 2. I / We declare that I / we have not received any other documents
or information showing a different price, value, quantity or description of the
said goods and that if at any time hereafter I / we receive any documents from
the importer showing a different state of facts, I /we will immediately make the
same known to the Commissioner of Customs (Declaration to be signed by an
Importer) (With Customs House Agent / Courier) 1. I / We declare that the
contents of invoice (s) no. (s) dated of M/s and of other documents relating to
the goods covered by the said invoice (s) and presented herewith are true and
correct in every respect 2. I / We declare that I / we have not received and
do not know of any other documents or information showing a different price, value
(including local payments, whether as commission or otherwise), quantity or description
of the said goods and that if at any time hereafter I / we discover any information
showing a different state of facts, I /we will immediately make the same known
to the Commissioner of Customs 3. I / We declare that the goods covered by
the bill of entry have been imported on outright purchase / consignment account
4. I / We am / are not connected with the suppliers / manufacturers as - (a)
Agent / Distributor / Indentor / Branch / Subsidiary / Concessionaire, and (b)
Collaborator entitled to the use of the trade mark, patent or design, (c)
Otherwise than as ordinary importers or buyers 5. I / We declare that the
method of invoicing has not changed since the date on which my / our books of
accounts and / or agreement with the suppliers were examined previously by the
Customs House (s) (Declaration to be signed by an Importer) (Without Customs
House Agent / Courier) 1. I / We declare that the contents of this Bill of
Entry for goods imported against Airway Bill number dated are in accordance with
the invoice number dated and other documents presented herewith. I / We also declare
that the contents of the above mentioned invoice(s) and documents are true and
correct in every respect 2. I / We declare that I / we have not received and
do not know of any other documents or information showing a different price, value
(including local payments, whether as commission or otherwise), quantity or description
of the said goods and that if at any time hereafter I / we discover any information
showing a different state of facts, I /we will immediately make the same known
to the Commissioner of Customs 3. I / We declare that the goods covered by
the bill of entry have been imported on outright purchase / consignment account
4. I / We am / are not connected with the suppliers / manufacturers as - (a)
Agent / Distributor / Indentor / Branch / Subsidiary / Concessionaire, and (b)
Collaborator entitled to the use of the trade mark, patent or design, (c)
Otherwise than as ordinary importers or buyers 5. I / We declare that the
method of invoicing has not changed since the date on which my / our books of
accounts and / or agreement with the suppliers were examined previously by the
Customs House (s) DECLARATION (FOR THE BILL OF ENTRY FOR WAREHOUSING) (Declaration
to be signed by the Courier / Customs House Agent) 1. I / We apply for leave
to deposit the goods covered by this Bill of Entry in the warehouse being public
/ private warehouse appointed / licensed under the Customs Act, 1962. 2. I
/ We declare that the contents of this Bill of Entry for goods imported against
Airway Bill Number dated are in accordance with the invoice number dated and other
documents presented herewith 3. I / We declare that I / we have not received
any other documents or information showing a different price, value, quantity
or description of the said goods and that if at any time hereafter I / we receive
any documents from the importer showing a different state of facts, I /we will
immediately make the same known to the Commissioner of Customs (Declaration
to be signed by an Importer) (With Customs House Agent / Courier) 1. I / We
apply for leave to deposit the goods covered by this Bill of Entry in the warehouse
being public / private warehouse appointed / licensed under the Customs Act, 1962.
2. I / We declare that the contents of invoice (s) no. (s) dated of M/s and
of other documents relating to the goods covered by the said invoice (s) and presented
herewith are true and correct in every respect 3. I / We declare that I /
we have not received and do not know of any other documents or information showing
a different price, value (including local payments, whether as commission or otherwise),
quantity or description of the said goods and that if at any time hereafter I
/ we discover any information showing a different state of facts, I /we will immediately
make the same known to the Commissioner of Customs 4. I / We declare that
the goods covered by the bill of entry have been imported on outright purchase
/ consignment account 5. I / We am / are not connected with the suppliers
/ manufacturers as - (a) Agent / Distributor / Indentor / Branch / Subsidiary
/ Concessionaire, and (b) Collaborator entitled to the use of the trade mark,
patent or design, (c) Otherwise than as ordinary importers or buyers 6.
I / We declare that the method of invoicing has not changed since the date on
which my / our books of accounts and / or agreement with the suppliers were examined
previously by the Customs House(s) (Declaration to be signed by an Importer)
(Without Customs House Agent / Courier) 1. I / We apply for leave to deposit
the goods covered by this Bill of Entry in the warehouse being public / private
warehouse appointed / licensed under the Customs Act, 1962 2. I / We declare
that the contents of this Bill of Entry for goods imported against Airway Bill
Number dated are in accordance with the invoice number dated and other documents
presented herewith. I / We also declare that the contents of the above mentioned
invoice(s) and documents are true and correct in every respect. 3. I / We
declare that I / we have not received and do not know of any other documents or
information showing a different price, value (including local payments, whether
as commission or otherwise), quantity or description of the said goods and that
if at any time hereafter I / we discover any information showing a different state
of facts, I /we will immediately make the same known to the Commissioner of Customs
4. I / We declare that the goods covered by the bill of entry have been imported
on outright purchase / consignment account 5. I / We am / are not connected
with the suppliers / manufacturers as - (a) Agent / Distributor / Indentor
/ Branch / Subsidiary / Concessionaire, and (b) Collaborator entitled to the
use of the trade mark, patent or design, (c) Otherwise than as ordinary importers
or buyers 6. I / We declare that the method of invoicing has not changed since
the date on which my / our books of accounts and / or agreement with the suppliers
were examined previously by the Customs House(s)
Declaration
(For the Bill of Entry for Ex-Bond Clearance) Declaration to be signed by
the importer / Courier / Customs House Agent 1. I / We declare that the particulars
given in this Bill of Entry are true 2. I / We apply for permission to clear
the goods from the Customs Bonded Warehouse subject to the provisions of the Customs
Act, 1962 Signature of Importer ------------------ FORM - F [see regulation
6(1)] COURIER EXPORT MANIFEST (CEM-I ) (Electronic Filing) S. No.
Description Details 1. Courier Registration Number 2. Name and address
of the Authorized Courier 3. Export General Manifest Number 4. Name of
the airlines 5. Airport of departure 6. Flight No. 7. Date of departure
8. Time of departure 9. Airport of destination 10. Shipment/Consignment-wise
Details: MAWB No. HAWB No. Number of Packages/Pieces/ Bags/ULDs Weight (in
kgs.) (1) (2) (3) (4)
Shipment/Consignment-wise Details
(Continued):
Description of Goods Name and address of the Consignor Name
and address of the Consignee Value (in Rs.) (5) (6) (7) (8)
DECLARATION
I / we declare that all statements and particulars contained in this form
and other documents presented herewith are complete, correct and true, in every
respect. Date: Place: Signature and name of the authorised courier
FORM - G [See regulation 6(3)] COURIER SHIPPING BILL - III (CSB -
III) FOR DOCUMENTS (Electronic Filing) S. No. Description Details 1.
Courier Registration Number 2. Name and address of the Authorized Courier
3. Name of the airlines 4. Airport of departure 5. Flight No. 6.
Date of departure 7. Time of departure 8. Airport of destination 9.
Expected date of landing at destination 10. Airway Bill-wise information:
(a) MAWB No. (b) No. of HAWBs included in this MAWB (c) Number of
bags / packages / pieces / ULD
11. Shipment / consignment-wise information:
HAWB No. Name and address of the consignor Name and address of the consignee
(1) (2) (3) DECLARATION I / we declare that the authorization from
each of the consignors relating to the above mentioned consignments have been
obtained by me / us to act as an agent for the clearance of the goods described
above. I / We hereby declare that the goods exported as per this Shipping
Bill include only document of no commercial value and do not include goods which
are liable to duty or which are prohibited or restricted for export from India
under any law for the time being in force. Date: Place: Signature
and name of the authorised courier FORM - H [See regulation 6(3)]
COURIER SHIPPING BILL- IV (CSB - IV) FOR GOODS (Electronic Filing) S.
No. Description Details 1. Courier Registration Number 2. Name and address
of the Authorized Courier 3. Name of the airlines 4. Airport of departure
5. Flight No. 6. Date of departure 7. Time of departure 8. Airport
of destination 9. Airway Bill-wise information: (a) MAWB No. (b)
No. of HAWBs included in this MAWB (c) Number of bags / packages / pieces
/ ULD
10. Shipment / consignment-wise information: HAWB No. Value
Description of the Goods (1) (2) (3) Name and address of the consignor
Name and address of the consignee Weight (In KGs) (4) (5) (6)
DECLARATION
I / We hereby declare that I/we have obtained the authorization from each
of the consignors mentioned above to act as an agent for the clearance of the
goods described above. I / We hereby declare that the goods for export as
per this Shipping Bill include only bonafide commercial samples, prototypes of
goods and bonafide gifts of articles for personal use within the value limits
prescribed in the relevant exemption Notification and which are for the time being
not subject to any prohibition or restriction on their export from India and no
transfer of foreign exchange is involved. I / We enclose herewith __________(number)
of airway bills and ________ (number) of invoices for the aforesaid consignments
with this shipping bills. I / We hereby declare that the contents of this
shipping bill are true and correct in every respect and are in accordance with
the Airway Bills, the invoices and other documents attached herewith. Date:
Place: Signature and name of the authorised courier
Service
Tax Circular No. 122/03/2010-ST Dated 30-4-2010
Clarification
regarding availment of CENVAT credit on input services Representations have
been received by Board regarding denial of CENVAT credit on input services in
certain cases. Some of the cases where doubts have been raised by field formations
are given below: 2. As per Rule 4 (7) of the CENVAT Credit Rules, 2004, the
CENVAT credit on input services is available only on or after the day on which
payment of the value of input service and service tax is made. The section 67
(4) of the Finance Act, 1994, provides that gross amount charged includes payment
made by issue of credit / debit notes or by entries in the books of account, where
the transaction is with any associated enterprise. A doubt has arisen as to
whether CENVAT credit can be taken by "Associate Enterprises" when debit
is made in book of accounts or when book adjustments/ debit or credit in accounts
is made, or if the CENVAT credit of the service tax paid on input service is available
only after the actual payment of the value of input service has been made in money
terms. 3. As per sub-rule (7) of Rule 4 of the CENVAT Credit Rules, 2004, "Credit
in respect of input service shall be allowed, on or after the day on which payment
is made of the value of input service and the service tax paid or payable as is
indicated in invoice, bill or as the case may be, challan referred to in Rule
9". A doubt raised is as to whether the receiver of input service can
take credit only after the full value that is indicated in the invoice, bill or
challan raised by the service provider, and also the service tax payable thereon,
has been paid. It has been represented that in many cases, after the invoice is
issued by the service provider, the service receiver does not make the full payment
of the invoiced amount on account of discount agreed upon after issuance of invoice;
or deducts certain amount due to unsatisfactory service; or withholds some amount
as security to be held during contract period. Due to these reasons the value
paid may not tally with the amount indicated in the invoice, bill or challan.
In such cases the department has raised objections to the taking of credit as
it does not meet the requirement of the said sub-rule (7). 4. Thus the following
issues relating to availment of CENVAT credit need clarification,- Whether
CENVAT credit can be claimed (a) when payments are made through debit/credit
notes and debit/credit entries in books of account or by any other mode as mentioned
in section 67 Explanation (c) for transactions between associate enterprises;
or (b) where a service receiver does not pay the full invoice value and the
service tax indicated thereon due to some reasons. 5. Matter has been examined
and clarification in respect of each of the above mentioned issues is as under,- (a)
When the substantive law i.e. section 67 of the Finance Act, 1994 treats such
book adjustments etc., as deemed payment, there is no reason for denying such
extended meaning to the word 'payment' for availment of credit. As far as the
provisions of Rule 4 (7) are concerned, it only provides that the CENVAT credit
shall be allowed, on or after the date on which payment is made of the value of
the input service and of service tax. The form of payment is not indicated in
the same and the rule does not place restriction on payment through debit in the
books of accounts. Therefore, if the service charges as well as the service tax
have been paid in any prescribed manner which is entitled to be called 'gross
amount charged' then credit should be allowed under said rule 4 (7). Thus, in
the case of "Associate Enterprises", credit of service tax can be availed
of when the payment has been made to the service provider in terms of section
67 (4) (c) of Finance Act, 1994 and the service tax has been paid to the Government
Account. (b) In the cases where the receiver of service reduces the amount
mentioned in the invoice/bill/challan and makes discounted payment, then it should
be taken as final payment towards the provision of service. The mere fact that
finally settled amount is less than the amount shown in the invoice does not alter
the fact that service charges have been paid and thus the service receiver is
entitled to take credit provided he has also paid the amount of service tax, (whether
proportionately reduced or the original amount) to the service provider. The invoice
would in fact stand amended to that extent. The credit taken would be equivalent
to the amount that is paid as service tax. However, in case of subsequent refund
or extra payment of service tax, the credit would also be altered accordingly. 6.
The contents of this circular may be suitably brought to the notice of the field
formations. In case any difficulty is faced in implementing these instructions,
the same may be brought to the notice of the undersigned F. No. 137/71/2009
- CX.4
Himanshu
Gupta Commissioner (Service Tax)
Service
Tax Circular No. 122/03/2010-ST Dated 30-4-2010
Clarification
regarding availment of CENVAT credit on input services
Representations
have been received by Board regarding denial of CENVAT credit on input services
in certain cases. Some of the cases where doubts have been raised by field formations
are given below:
2.
As per Rule 4 (7) of the CENVAT Credit Rules, 2004, the CENVAT credit on input
services is available only on or after the day on which payment of the value of
input service and service tax is made. The section 67 (4) of the Finance Act,
1994, provides that gross amount charged includes payment made by issue of credit
/ debit notes or by entries in the books of account, where the transaction is
with any associated enterprise. A doubt has arisen as to whether CENVAT credit
can be taken by "Associate Enterprises" when debit is made in book of
accounts or when book adjustments/ debit or credit in accounts is made, or if
the CENVAT credit of the service tax paid on input service is available only after
the actual payment of the value of input service has been made in money terms. 3.
As per sub-rule (7) of Rule 4 of the CENVAT Credit Rules, 2004, "Credit
in respect of input service shall be allowed, on or after the day on which payment
is made of the value of input service and the service tax paid or payable as is
indicated in invoice, bill or as the case may be, challan referred to in Rule
9". A doubt raised is as to whether the receiver of input service can
take credit only after the full value that is indicated in the invoice, bill or
challan raised by the service provider, and also the service tax payable thereon,
has been paid. It has been represented that in many cases, after the invoice is
issued by the service provider, the service receiver does not make the full payment
of the invoiced amount on account of discount agreed upon after issuance of invoice;
or deducts certain amount due to unsatisfactory service; or withholds some amount
as security to be held during contract period. Due to these reasons the value
paid may not tally with the amount indicated in the invoice, bill or challan.
In such cases the department has raised objections to the taking of credit as
it does not meet the requirement of the said sub-rule (7). 4. Thus the following
issues relating to availment of CENVAT credit need clarification,- Whether
CENVAT credit can be claimed (a) when payments are made through debit/credit
notes and debit/credit entries in books of account or by any other mode as mentioned
in section 67 Explanation (c) for transactions between associate enterprises;
or (b) where a service receiver does not pay the full invoice value and the
service tax indicated thereon due to some reasons. 5. Matter has been examined
and clarification in respect of each of the above mentioned issues is as under,- (a)
When the substantive law i.e. section 67 of the Finance Act, 1994 treats such
book adjustments etc., as deemed payment, there is no reason for denying such
extended meaning to the word 'payment' for availment of credit. As far as the
provisions of Rule 4 (7) are concerned, it only provides that the CENVAT credit
shall be allowed, on or after the date on which payment is made of the value of
the input service and of service tax. The form of payment is not indicated in
the same and the rule does not place restriction on payment through debit in the
books of accounts. Therefore, if the service charges as well as the service tax
have been paid in any prescribed manner which is entitled to be called 'gross
amount charged' then credit should be allowed under said rule 4 (7). Thus, in
the case of "Associate Enterprises", credit of service tax can be availed
of when the payment has been made to the service provider in terms of section
67 (4) (c) of Finance Act, 1994 and the service tax has been paid to the Government
Account. (b) In the cases where the receiver of service reduces the amount
mentioned in the invoice/bill/challan and makes discounted payment, then it should
be taken as final payment towards the provision of service. The mere fact that
finally settled amount is less than the amount shown in the invoice does not alter
the fact that service charges have been paid and thus the service receiver is
entitled to take credit provided he has also paid the amount of service tax, (whether
proportionately reduced or the original amount) to the service provider. The invoice
would in fact stand amended to that extent. The credit taken would be equivalent
to the amount that is paid as service tax. However, in case of subsequent refund
or extra payment of service tax, the credit would also be altered accordingly. 6.
The contents of this circular may be suitably brought to the notice of the field
formations. In case any difficulty is faced in implementing these instructions,
the same may be brought to the notice of the undersigned F. No. 137/71/2009
- CX.4
Himanshu
Gupta Commissioner (Service Tax)
-COPY
OF- CENTRAL EXCISE CIRCULAR NO .919/09/2010-CX Dated: March 23, 2010
Sub.:
Procedure for electronic filing of Central Excise and Service Tax returns and
for electronic payment of excise duty and service tax.
Attention
is invited to Circular No. 791/24/2004 dated 01.06.2004 and No. 52/1/2003 dated
11.03.2004 (modified by Circular No. 71/1/2004-ST dated 02.01.2004) prescribing
the procedure for electronic filing of Central Excise and Service Tax returns.
Attention is also invited to Notification No. 04/2010-Central Excise (NT) and
No. 01/2010-ST both dated 19.02.2010 providing for mandatory electronic filing
of Excise and Service Tax returns and payment of excise duty and service tax by
all the assessees who have paid central excise duty or service tax of Rs. 10 Lakhs
or more (including payment by utilisation of Cenvat credit) in the previous financial
year. 2. DG (Systems) has prepared comprehensive instructions outlining the
procedure for electronic filing of excise and service tax return and electronic
payment of taxes under ACES. The same is enclosed. The said instructions outline
the registration process for new assessees , existing assessees , non - assessees
and for Large Taxpayers Unit assessees , steps for preparing and filing of return,
using of XML Schema for filing dealers' return, procedure for obtaining acknowledgement
of E-filed return, procedure for E-payment etc. It is requested to sensitise concerned
officers and trade and industry regarding the instructions. 3. As a large
number of taxpayers would be required to file Excise and Service Tax return and
to pay the taxes electronically, it is requested that trade and industry may be
provided all assistance so as to help them in adopting the new procedure. 4.
Field formations and trade/industry/service provider may also please be informed
suitably. 5. Hindi version will follow. F.No . 201/20/2009-CX 6
V.P.Singh Under
Secretary (C.X.6)
Encl.:
As above
Procedure
for Electronic filing of Central Excise and Service Tax returns and Electronic
Payment of Taxes In continuation of its efforts for trade facilitation, CBEC
has rolled-out a new centralized, web-based and workflow-based software application
called Automation of Central Excise and Service Tax (ACES) in all 104 Commissionerates
of Central Excise, service Tax and large Tax Payer Units (LTUs) as on 23rd December,
2009. ACES is a Mission Mode project (MMP) of the Govt. of India under the national
e-governance plan and it aims at improving tax-payer services, transparency, accountability
and efficiency in the indirect tax administration in India. This application has
replaced the current applications of SERMON, SACER, and SAPS used in Central Excise
and Service Tax for capturing returns and registration details of the assessees
and hence, in supercession of the CBEC Circular No.791/24/2004-CX. dated 1.6.2004
and CBEC Circular No. ST 52/1/2003 dated 11.03.2003, this revised circular is
being issued. II. Modules The ACES application has interface for: ++
Central Excise Assessees ++ Service Tax Assessees ++ Central Excise Departmental
Officers and ++ Service Tax Departmental Officers. It has automated the
major processes of Central Excise and Service Tax - registration, returns, accounting,
refunds, dispute resolution, audit, provisional assessment, exports, claims, intimations
and permissions. It is divided into the following modules: 1.Access Control
of Users ( ACL ) 2.Registration ( REGN ): Registration of assessees of Central
Excise & Service Tax including on-line amendment. 3.Returns (RET): Electronic
filing of Central Excise & Service Tax Returns 4.CLI : Electronic filing
of claims, intimations and permissions by assessees and their processing by the
departmental officers 5.Refund ( REF ): Electronic filing of Refund Claims
and their processing 6.Provisional Assessment (PRA): Electronic filing of
request for provisional assessment and its processing by the departmental officers.
7.Assessee Running Account 8.Dispute Settlement Resolution (DSR): Show
Cause Notices, Personal Hearing Memos, Adjudication Orders, Appellate and related
processes. 9.Audit Module 10.Export Module for processing export related
documents III . Benefits to the Assessees 1. Reduce Physical Interface
with the Department 2. Save Time 3. Reduce Paper Work 4. Online Registration
and Amendment of Registration Details 5. Electronic filing of all documents
such as applications for registration, returns [On-line and off-line downloadable
versions of ER 1,2,3,4,5,6, Dealer Return, and ST3], claims, permissions and intimations;
provisional assessment request, export-related documents, refund request 6.
System-generated E-Acknowledgement 7. Online tracking of the status of selected
documents 8. Online view facility to see selected documents 9. Internal
messaging system on business-related matters IV. Registration Process: To
transact business on ACES a user has to first register himself/herself with ACES
through a process called 'Registration with ACES'. This registration is not a
statutory registration as envisaged in Acts/Rules governing Central Excise and
Service Tax but helps the application in recognizing the bonafide users. Described
below are steps for taking registration by a new assessee , existing assessee
, non- assessee and a Large Tax Payer Unit (LTU). (a) New Assessee 1.
The user needs to log onto the system, through internet at http://www.aces.gov.in
2. He/she chooses the Central Excise/Service Tax button from the panel appearing
on the left of the webpage. 3. Clicks the button "New Users Click here
to Register with ACES" in the Log-in screen that appears after clicking Central
Excise/Service Tax button. 4. Fills in and submits the form "Registration
with ACES", by furnishing a self-chosen user ID and e-mail ID. User ID, once
chosen is final and cannot be changed by the assessee in future. 5. The system
will check for availability of the chosen User ID and then generate a password
and send it by e-mail, mentioned by him/her in the Form. 6. ACES provides
assistance of 'Know your location code' for choosing correct jurisdictional office.
7. The user then re-logs-in and proceeds with the statutory registration with
Central Excise/Service Tax, by filling-in the appropriate Form namely A-1, A-2
or ST-1 etc. by clicking the " Reg " link in the Menu bar that appears
on the top of the screen. For security reasons, the password should be changed
immediately. 8. The system instantaneously generates an acknowledgement number
after which the registration request goes to the jurisdictional Assistant or Deputy
Commissioner (AC/DC). Depending on the instructions in force, assessees may be
required to submit certain documents to the department for verification. After
due processing, the AC/DC, in case of Central Excise and Superintendent /Commissioner
(for centralized registration only), in case of Service Tax, generates Registration
Certificate (RC) and a message to this effect is sent to the assessees electronically.
The assessee can view this and take a print-out of this. 9. Depending on the
option chosen by the assessee , the signed copy of the RC can be sent by post
or can be collected by assessee in person. 10. While submitting registration
form, if the assessee makes a mistake in choosing a wrong jurisdiction ( Commissionerate
/Division/ Range), ACES provides a facility to the AC/DC to forward the application
to the correct jurisdictional officer to issue registration and a message to this
effect is sent to the assessee for information. 11. The registration number
will be same as the current 15-digit format with minor change such as For-PAN
based Assessees 1-10 digits - PAN of the Assessee 11-12 digits-EM (Excise
Manufacturer), ED (Excise Dealer), SD (Service Tax) 13-15-Systems generated
alphanumeric serial number For non-PAN based assessees 1-4 digits TEMP
5-10 Systems generated alpha numeric number 11-12 EM (Excise Manufacturer)
or ED (Excise Dealer), SD (Service Tax) 13-15-Systems generated alphanumeric
serial number (b) Existing Assessee 1.The existing assessees will not
have to take fresh registrations. They will have to only register with the ACES
application. This can be done in the following manner : ACES application will
automatically send mails to the e-mail IDs of the assessee , as available in the
existing registration data base, indicating a TPIN number, and password. The mail
will contain a hyperlink to the website. ++ Assessee clicks on the hyperlink
and is taken to ACES application ++ Assessee submits the form after filling
the requisite information including the password provided in the e-mail, a new
User ID and new password. User ID, once chosen is final and cannot be changed
by the assessee in future. ++ On successful registration with ACES, the assessee
can transact business through ACES. 1. Existing assessees should note that
they should register with ACES by following the procedure at (1) above and they
should not register with ACES through the direct method, meant for new assessees
, as discussed under (a) above. They should also not fill-in registration forms
again as it will lead to allotment of new registration numbers by the system.
2. Assessees should ensure that their contact details in the department's
registration data base are updated to include their valid and current e-mail ids,
otherwise they will not receive any such mail. Those assessees who have not yet
furnished their email IDs to the department or even after furnishing the ID have
not received the TPIN mail from ACES are advised to contact the jurisdictional
Range Officers or LTU Client Executives and furnish their email IDs in writing.
The officer will thereafter incorporate the email ID in the ACES registration
database of the assessee and arrange to send the TPIN mail to the assessee's email
ID. (c) Non- Assessee 1.This category of registration is given in ACES
to any individual, firm or company which requires to transact with the Central
Excise or Service Tax Department, though not an assessee such as (a) merchant
exporter, (b) co- noticee , (c) refund applicant, (d) persons who have failed
to obtain CE/ST registration as required under the law and against whom the Department
has initiated proceedings and (e) persons who are required to tender any payment
under CE/ST Act /Rules. The Non- assessees are not required to file any tax returns.
2. Where such persons desire to seek non- assessee registration they follow
same steps as in case of new assessee except that while choosing the registration
form in step (vii) they have to choose and fill in the Non- assessee form. 3.
In case the assessee is taking such registration for claiming any refund or rebate
it is mandatory to furnish his/her valid PAN. 4. A Non- assessee registration
can also be done by the designated officer of the Commissionerate , on behalf
of the non- assessee . (d) Large Tax Payer Unit (LTU) Assessee /Client 1.
The consent form will have to be submitted manually by the New LTU assessees to
the jurisdictional LTU office which will be processed off line 2. The approved
consent form will be uploaded by the competent officer of the Group LTU (GLTU)
into ACES 3. Any new unit of an existing LTU, which applies for registration
with ACES will be automatically attached with the LTU Commissionerate based upon
PAN details in the registration form 4. As soon as the new or existing unit
is attached with the LTU Commissionerate , a suitable intimation will be automatically
sent by the ACES to the existing jurisdictional Commissionerate and the pending
items of work will be transferred to the LTU Commissionerate 5. For existing
LTU assessees , the process of registration is same as explained in Sub Para (b)
above. IMPORTANT: i. The user ID once selected will be permanent and cannot
be changed. However, it is desirable to frequently change passwords ii. The
User ID should be of 6-12 alphanumeric characters, no special character such as
! @#$%*&( )+ or spaces except underscore '-' shall be allowed. iii. New
assessee seeking registrations in Central Excise and Service Tax will also submit
to the jurisdictional Range officer, a printout of the application form submitted
online duly signed by the authorized signatory along with required documents.
iv. Assessees should note that the e-mail ID is furnished to the department
in writing, and they will be responsible for all communications to and from this
email ID. Currently, ACES provides for communication to one email ID only. After
registration with the ACES, assessees , on their own, can modify their registration
details online, including their e-mail ID. v. In the interest of security
and data protection, assessees are advised to change their passwords regularly
and not to share it with unauthorized persons. In case of any dispute, the person
whose user ID and Password has been used to access the application will be held
liable for the action and any other consequences. V. E-filing of Returns The
assesses can electronically file statutory returns of Central Excise and Service
Tax by choosing one of the two facilities being offered by the department at present:
(a) they can file it online, or (b) download the off-line return utilities which
can be filled-in off-line and uploaded to the system through the internet. a.
Steps for preparing and filing returns (i) Returns can be prepared and filed
on line by selecting the 'File Return' option under RET module after logging into
the ACES. (ii) All validations are thrown up during the preparation of the
return in this mode and the status of the return filed using the online mode is
instantaneously shown by ACES. (iii) Returns can also be prepared and filed
off-line. Assessee downloads the Offline return preparation utility available
at http://www.aces.gov.in (Under Download) (iv) Prepares the return offline
using this utility. The return preparation utility contains preliminary validations
which are thrown up by the utility from time to time. (v) Assessee logs in
using the User ID and password. (vi) Selects RET from the main menu and uploads
the return. Instructions for using the offline utilities are given in detail in
the Help section, under 'Download' link and assessees are advised to follow them.
(vii) Returns uploaded through this procedure are validated by the ACES before
acceptance into the system which may take up to one business day. Assessee can
track the status of the return by selecting the appropriate option in the RET
sub menu. The status will appear as "uploaded" meaning under process
by ACES, "Filed" meaning successfully accepted by the system or "Rejected"
meaning the ACES has rejected the return due to validation error. The rejected
returns can be resubmitted after corrections. (viii) Once the Central Excise
returns are filed online in ACES or uploaded to the system using the off-line
utility, the same can not be modified or cancelled by the assessee . The Service
Tax returns, however, can be modified once as per rules up to 90 days from the
date of filing the initial return. (ix) Self-assessed CE returns, after scrutiny
by the competent officer, may result into modification. Both the 'Original' and
the 'Reviewed' return can be viewed by the assessee online. b. Using XML Schema
for filing Dealers Return Currently, the ACES Application allows on-line filing
of Quarterly Returns by the Registered Dealers accessing the site www.aces.gov.in
by using the excel utility. Some assesses who use their own software application
in their offices find the process of manual entry of data in the excel format
of Returns as a time consuming and avoidable exercise. A new feature of XML schema
has now been introduced. Now using the schema, assessees , after making necessary
modifications in their own software application, can generate their return from
their application. Below mentioned steps elaborate the process to prepare, validate
and upload the Dealer's Return. Steps to prepare the XML Step 1: ACES
application accepts the return in XML format. Prepare the Dealer return XML and
validate it against the schema ACES_DLR.xsd provided. Step 2: Login to the
ACES application and upload the XML for processing. XML will be again validated
against same XSD again before processing. XML File only will be considered
valid if it satisfies the requirements of the schema (predefined XSD) with which
it has been associated. These requirements typically include such constraints
as: Elements and attributes that must/may be included, and their permitted
structure The structure as specified by regular expression syntax Instructions
for using the schema are given in detail in the Help section, under 'Download'
link. Assessees are advised to follow them. c. Filing of Returns and other
documents through the ACES Certified Facilitation Centres (CFCs) Very soon,
CBEC will be setting up ACES Certified Facilitation Centres (CFCs) with the help
of professional bodies like Institute of Chartered Accountants of India (ICAI),
Institute of Cost and Works Accountants of India (ICWAI) etc. These CFCc will
provide a host of services to the assessees such as digitization of paper documents
like returns etc. and uploading the same to ACES. Assessees requiring the services
of the CFCs may be required to pay service fees to the CFCs. CBEC will approve
the maximum rates at which CFCs can charge their customers for the services rendered
by them. For this purpose, assessees are required to write to the department authorizing
one of the CFCs, from the approved list, to work in ACES on their behalf. They
have to furnish the name and other details of the CFCs, including the registration
No issued by the ICAI/ICWAI etc. At any given time, one assessee can authorize
one CFC, while one CFC can provide services to more than one assessee throughout
India. In case the assessee wants to withdraw the authorization, it can do so
by intimating the department. However, an assessee will be held liable for all
actions of omission or commission of the CFC, during the period they are authorized
by him/her to work in ACES. d. Validation of the entries made while filling
return 1.At the time of making entry in the electronic format of the relevant
return, the software does some preliminary validation for ensuring correctness
of data, either concurrently or at the time of saving / submitting the return.
This validation process is automated. The user is prompted by the application
software to correct the particulars entered wherever required. In respect of certain
entries, although the application alerts the assessee about any entry found erroneous
or inconsistent, as per the automated validation process, the assessee is still
allowed to proceed further to complete data entry of the return and finally submit
it electronically. But in some cases the assessees are not allowed to proceed
further unless the error indicated is corrected. 2.A return filed electronically
is subject to automatic verification process by the application and defective
returns are marked to the departmental officer for review and correction. While
reviewing the return the officer may seek some clarification from the assessee
, call for some information, records or documents which should be furnished by
the assessee . In case of review and correction of returns by the departmental
officers, assesses will receive a message from the application and they can log
in to the application to view the reviewed returns online. 3. Returns, captured
off-line using the Downloadable utility and uploaded later on, are further subjected
to certain validation checks. Processing of uploaded returns, using the off-line
versions, is done at the end of one business day and the status can be viewed
by the assessees under the 'VIEW STATUS' link under 'RET' module. Status is described
as 'UPLOADED', 'FILED' or 'REJECTED' and they denote as follows: ++ UPLOADED
denotes that return is uploaded and under processing ( assessees are advised to
view the status after the end of a business day). ++ FILED denotes that uploaded
return is accepted by system. ++ REJECTED denotes that return is rejected
due to errors. (The assessees are required to correct the return and upload it
again.) 1.There is no provision in ACES application to allow assessees to
make corrections to the returns filed by them. Once the return is accepted by
the system as successfully 'filed', no modification can be made by the assessee
. However, if the return is rejected, the assessee can correct the errors and
upload it again. The assessees are, therefore, advised to take utmost care while
fill-in in the returns. They may, however, bring it to the notice of the departmental
officers. e. Acknowledgement of E-Filing of the return In the case of
a Central Excise or service Tax return filed on-line, ACES application software
acknowledges it by displaying an Acknowledgement message. A unique document reference
number is generated which consist of 15-digit registration number of the assessee
, name of the return filed, the period for which return is filed etc. This is
also automatically communicated to the email id of the assessee by the application.
In the case of an uploaded Central Excise return, using offline utility, similar
acknowledgement is generated and sent after the acceptance of the return by the
system as a valid return i.e. when the status changes to 'FILED'. f. Class
of Assessees for whom e-filing of returns and e-payment is mandatory with effect
from 1 st April, 2010 : 1.In terms of Notification No 04/2010-Central Excise
(N.T.) dated the 19th February, 2010, an assessee , who has paid total duty of
rupees ten lakhs or more including the amount of duty paid by utilization of CENVAT
credit in the preceding financial year, is required to file the monthly or quarterly
return, as the case may be, electronically, under sub-rule (1) of Rule 12 of the
Central Excise Rules, 2002 and deposit the duty electronically through internet
banking under sub-rule (1) of Rule 8 of the Central Excise Rules, 2002. 2.Similarly,
in terms of Notification No. 01/2010 - Service Tax dated the 19th February, 2010,
an assessee who has paid a total Service Tax of rupees ten lakhs or more including
the amount paid by utilization of CENVAT credit, in the preceding financial year,
is required to file the return electronically under sub-rule (2) of Rule 7 of
the Service Tax Rules, 1994 and deposit the service Tax liable to be paid by him
electronically, through internet banking under sub-rule (2) of Rule 6 of the Service
Tax Rules, 1994. 3. The earlier facility of e-filing on the website ( http://excise
andservicetax.nic.in ), as provided in the CBEC Circular No.791/24/2004-CX. Dated
1.6.2004 is no more available and the assessees are required to file their returns
online or by uploading the downloadable off-line return utilities to the new ACES
website ( http://www.aces.gov.in ). Data structure for writing programmes to cull
out the required return data (currently available for Dealer return) from the
assessees's computers in XML format has also been provided. Such schema for ER
2 and ER 1 returns will be published in due course. For complete details and instructions,
assessees can visit the aforesaid website. Assessees who are required to or opted
to file returns electronically but are unable to file electronically, for any
technical difficulty in filing the returns, on account of difficulties at the
department's end viz. server/application is down or due to some defect in the
software, should file their returns manually within the due date. g . e-payment
1. For e-payment, assessees should open a net banking account with one of
the authorized banks (currently there are 28 banks, list of which is available
on the EASIEST (Electronic Accounting System in Excise and service Tax) website
of CBEC, maintained by NSDL ( https://cbec.nsdl.com/EST/ ). P ayment through ICICI
Bank, HDFC Bank and Axis Bank can be done by assesses for select Commissionerates
only, list of which is published in the aforesaid EASIEST website. Payment through
all other authorized banks can be made for all Commissionerates . 2. For effecting
payment, assessees can access the ACES website ( http://www.aces.gov.in/ ) and
click on the e-payment link that will take them to the EASIEST portal ( https://cbec.nsdl.com/EST/
) or they can directly visit the EASIEST portal. 3. Procedure for e-Payment:
1.To pay Excise Duty and Service Tax online, the assessee has to enter the
15 digit Assessee Code allotted by the department under erstwhile SACER/SAPS or
the current application ACES. 2. There will be an online check on the validity
of the Assessee Code entered. 3. If the Assessee code is valid, then corresponding
assessee details like name, address, Commissionerate Code etc. as present in the
Assessee Code Master will be displayed. 4. Based on the Assessee Code, the
duty / tax i.e. Central Excise duty or Service Tax to be paid will be automatically
selected. 5. The assessee is required to select the type of duty / tax to
be paid by clicking on Select Accounting Codes for Excise or Select Accounting
Codes for Service Tax, depending on the type of duty / tax to be paid. 6.
At a time the assessee can select up to six Accounting Codes. 7. The assessee
should also select the bank through which payment is to be made. 8. On submission
of data entered, a confirmation screen will be displayed. If the taxpayer confirms
the data entered in the screen, it will be directed to the net-banking site of
the bank selected. 9. The taxpayer will login to the net-banking site with
the user id/ password, provided by the bank for net-banking purpose, and will
enter payment details at the bank site. 10. On successful payment, a challan
counterfoil will be displayed containing CIN , payment details and bank name through
which e-payment has been made. This counterfoil is proof of payment made. h.
Responsibility of the Assessee 1. It is the legal responsibility of the assessees
, who are required to file returns, to file it within the due date as prescribed
under law. The electronic filing of returns is mandatory for select class of Central
Excise and Service Tax assessees , as mentioned in Notification No 04/2010-Central
Excise (N.T.) dated the 19 th February, 2010, and Notification No. 01/2010 - Service
Tax dated the 19 th February, 2010 respectively. Other assessees can also use
ACES and file their returns electronically. It may, however, be noted that merely
uploading the returns will not be considered as returns having been filed with
the department. A return will be considered as filed, when the same is successfully
accepted by the application as 'Filed' and the relevant date for determining the
date of filing of return will be the date of uploading of such successfully 'filed'
returns. In case a return is 'rejected' by the application, the date of uploading
of the rejected return will not be considered as the date of filing, rather the
date of uploading of the successfully 'filed', return (after the assessee carries
out necessary corrections and uploads it again) will be considered as the actual
date of filing. 2. In case the assessee experiences any difficulty in transacting
in ACES such as filing of return, the assessees may lodge a complaint with the
ACES Service Desk or the department by e-mail and/or by telephone, details of
which are given below and obtain a ticket no. as an acknowledgement from the department.
However, mere lodging of complaints with the ACES service desk will not be a valid
ground to justify late filing of returns. If the difficulty is not on account
of problems at the assessee's end, and can be clearly attributed to the department's
IT infrastructure such as problems in accessing CBEC's ACES application due to
server, network or application being down, proportionate time will be deducted
from the date of uploading of successfully 'filed' returns to ascertain the actual
date and time of filing of the return. Since the department maintains logs of
such technical failures, in case of any dispute, the decision of the department
will be final. VI. Digital Signatures The ACES application is designed
to accept digitally signed documents. However, in the beginning this functionality
is not going to be activated. Pending its activation the electronic returns will
be filed into ACES without digital signatures. Hence, wherever the returns are
submitted through ACES there will not be any requirement to submit signed hard
copy separately. VII . System Requirements for ACES To use ACES following
systems requirements are recommended: ++ Processor: Intel Pentium III and
higher ++ RAM : 256 MB and higher ++ HDD : 80 GB and more ++ Web Browser:
IE 6.0 and above, Netscape 6.2 and above ++ MS Excel 2003 and above for using
offline utilities ++ Sound Card, Speakers/Headphones, Colour Monitor for using
Learning Management Systems ( LMS ) VIII. Help for Assessees CBEC has
set up a Service Desk with National toll-free No. 1800 425 4251, which can be
accessed by between 9 AM to 7 PM on all working days (Monday to Friday). Besides,
e-mails can be sent to aces.servicedesk@icegate.gov.in. All the calls/e-mails
will be issued a unique ticket number, which will be attended to by the Service
Desk agents for appropriate response. A Learning Management Software ( LMS
) has been provided on the ACES website, which is a multimedia-based self-learning
online tutorial guiding the aseesees in a step-by-step processes to use ACES.
The downloadable version of Learning Management Software is also provided on the
website. Besides, User Manuals, Frequently Asked Questions (FAQs), Power Point
Presentation, and a Brochure have also been provided on the website to help the
assessees use ACES
-COPY
OF- RE-NOTIFICATION NO.38/2009-14 Dated: April 9, 2010 Subject:
Compulsory registration of cotton yarn export contracts
- regarding In exercise of the powers conferred by Section 5 of
the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read
with Para 1.3 and 2.1 of the Foreign Trade Policy, 2009-14, and also read with
Notification No. 26 (RE 2008)/2004-09 dated 22.7.2008 the Central Government hereby
makes the following amendments in the Schedule 2, Table B of ITC HS Classifications
of Export and Import Items by inserting S.No.161 B, in Chapter 52, immediately
after 161 A, with immediate effect, as under: - S. No. Tariff Item Code Unit
Item of Description Export Policy Nature of Restriction 161 B 5205 Cotton
yarn (other than sewing thread), containing 85% or more by weight of cotton not
put up for retail sale Free The contracts for export of cotton yarn shall be registered
with the Textile Commissioner prior to shipment. Clearance of cotton yarn consignments
shall be given by Customs after verifying that the contracts have been registered.
5206 Cotton yarn (other than sewing thread), containing less than 85% by
weight of cotton not put up for retail sale 5207 Cotton yarn (other than
sewing thread), put up for retail sale 2. This issues in public interest.
File No.01/91/180/1194/AM10/Export Cell
(R.S.
Gujral) DIRECTOR GENERAL OF FOREIGN TRADE AND EX-OFFICIO SPECIAL SECRETARY
TO THE GOVT. OF INDIA
----------------------------- -COPY OF- RE-NOTIFICATION NO.37/2009-14 Dated: April 9, 2010
Amendment in the ITC(HS) Classification of Export and Import items. In
exercise of the powers conferred by Section 5 of the Foreign Trade (Development
& Regulation) Act, 1992 (No.22 of 1992) read with Para 1.3 and Para 2.1 of
the Foreign Trade Policy, 2009-2014, the Central Government hereby makes the following
amendments in the ITC(HS) Classifications of Export and Import items, as amended,
from time to time. 2. With immediate effect, entry at Sl . No. 48 A of Notification
No. 57(RE-2007)/2004-09 Dated 21.11.2007, read with Notification No. 110 (RE-2008)/2004-2009
dated 9.6.2009, stands substituted as follows:- Sl . No. Tariff Item HS Code
Unit Item Description Export Policy Nature of Restriction 48A 1202 10 10 Kg
Groundnut (of Seed Quality) Free (a) Export to EU permitted subject to Compulsory
registration of contracts with APEDA, alongwith controlled Aflatoxin level certificate
given by agencies/laboratories nominated by APEDA; (b Exports to Russian Federation
permitted subject to pre-shipment quality certification issued by (1) Insecticide
Residue Testing Laboratory. (2) Geo- Chem Laboratories Pvt. Ltd. (3) Reliable
Analytical Laboratory (4) Arbro Pharmaceuticals Ltd. (5) Shri Ram Institute
for Industrial Research, Delhi (6) Shri Ram Institute for Industrial Research,
Branch Office Bangalore (7) Delhi Test House; and (8) Vimta Labs. or
any other agency as may be notified from time to time. 1202 10 19 Kg Groundnut
(Other) 1202 10 91 Kg Groundnut (Other of Seed Quality) 1202 10 99 Kg
Groundnut (Other) 1202 20 10 Kg Groundnut (Kernels, H.P.S.) 1202 20
90 Kg Groundnut (Other) 4. This issues in Public Interest. F. No.01/91/180/923/AM08/EC (R.S.
GUJRAL) Director General of Foreign Trade And Ex-Officio Special Secretary
to the Govt. of India
-COPY
OF- CUSTOMS CIRCULAR NO.9/2010-CUS Dated: April 8, 2010 Subject:
Issue of Custom House Agent License-Reference from field
formations - regarding. It has been brought to the notice of the
Board by certain field formations that they are facing difficulties in issuance
of Custom House Agents (CHA) License for eligible persons and in implementation
of the Custom House Agents Licensing Regulations (CHALR), 2004. 2. These issues
were examined by the Board in consultation with customs field formations and in
the Board meeting. Further, a meeting was also held with the Chief Commissioners
of Customs having jurisdiction over major Custom Houses. Accordingly the following
decisions have been taken on the issues listed below:- (i) Minimum number
of CHAs required in a Customs station: 3. Regulation 4 of the CHALR, 2004
provides the process of issue of CHA licences whereby the Commissioner of Customs
may invite applications for the grant of such number of licences as assessed by
him, to act as Customs House Agents in a customs station. The CHALR, 2004 do not
provide for any restrictions on the number of CHAs. Board is of the view that,
ideally, no restriction should be placed on the number of CHAs operating in the
Custom Houses and the market forces should govern the number of proficient and
qualified persons required to carry out the job of CHA commensurate with the volume
of import / export cargo. The Board also did not find any justification in prescribing
a turnover based criteria for ascertainment of the number of CHA licenses required
to be issued at a particular Custom House / Station, in as much as the practice
of undertaking CHA services on the basis of Form 'C' intimation was already in
vogue and would render such exercise meaningless. The Board, therefore, has decided
against fixing a numeric criterion governing the number of CHA licenses being
issued. Board has also decided that the examination under Regulation 8 shall be
conducted on an annual basis instead of twice a year, by suitably amending the
sub-regulation (1) to Regulation 8. (ii) Employment of person by a CHA: 4.
In the present scheme of CHALR, 2004 under regulation 19(1), the Custom House
Agent may employ any person who shall have a minimum educational qualification
of 10+2 School education. However, appointment of such person shall be made only
after obtaining approval of the Deputy Commissioner / Assistant Commissioner (DC/AC)
designated by the Commissioner of Customs, who shall take into consideration the
antecedents and character of the person as provided in regulation 19(2) of CHALR,
2004. In this regard, Board has decided that the DC/AC concerned, may ensure that
individuals involved in any fraudulent activity (i.e., individuals suspended or
blacklisted or denied permission to work in any section of the Custom House) shall
not be allowed to be employed by a CHA for transacting business with Customs.
Necessary undertaking in this regard may also be taken from the CHA at the time
of submission of application giving details of the person who are proposed to
be employed by them. 4.2. CHALR, 2004 do not provide for any restriction on
the number of persons a CHA can employ as it would depend upon the workload and
requirements of a CHA. However, under the regulation 19(3), any person employed
by CHA is required to appear through an examination conducted by DC/AC designated
or a Committee of officers to ascertain the adequacy of the knowledge of such
persons about the provisions of the Customs Act, 1962 before they are granted
'G' Card. Hence, it is reiterated that it is only those persons who have qualified
themselves in the examination conducted under regulation 19(3) and who have been
authorized by CHA in terms of regulation 19(5) alone are allowed to sign the declarations
filed before Customs for transacting the work at any Custom station. Those persons
who have not qualified in the examination but who are still in employment with
CHA are being given 'H' card for assisting the CHA in his work. However, the Commissioner
of Customs in a Custom House / Station shall undertake an annual review of such
'H' Cardholders with each CHA to ensure that discredited individuals are not being
allowed to work as 'H' Cardholders. The examination under Regulation 19(3) shall
also be conducted by Commissionerate of Customs on annual basis. (iii) Suspension
or revocation against CHAs operating on 'C' form intimation basis: 5.1. CHALR,
2004 provide a facility for the CHAs who have been issued a license from a particular
customs station to operate under Form 'C' intimation at another customs station.
In case of such CHAs, who are found to have violated any provision of the CHALR,
2004 at any customs station, it is clarified that the suspension action against
CHA's operations may be taken by the Commissioner of Customs at the station who
issued the CHA license and such action would either be limited to a particular
customs station where a violation has been noticed or action against the CHA in
general, applicable at all customs stations where the CHA operates, depending
upon the gravity and seriousness of the violation. Where the CHA licence is suspended,
all 'G' and 'H' cards issued in respect of that licence would become non-operational.
5.2. Further, it is also clarified that the Commissioner of Customs at a customs
station who had authorised a CHA to operate on 'C' form intimation, should inform
the details of violations to the Commissioner of Customs at the customs station
from where the CHA licence was issued for such CHA, so that necessary action for
suspension or revocation of CHA licence, could be initiated by him. This would
avoid duplication and ensure uniformity in adjudication of a case against a CHA
in suspension or revocation proceedings by the Customs field formations. However,
the Commissioner of Customs, who had authorised a CHA to operate on 'C' form intimation
at a customs station, may take action in deserving cases under regulation 21 of
CHALR, 2004 for prohibiting the working of such defaulting CHA in any section
of the Custom House/Customs Station. (iv) Know Your Customs (KYC) norms for
identification of clients by CHAs: 6. In the context of increasing number
of offences involving various modus-operandi such as misuse of export promotion
schemes, fraudulent availment of export incentives and duty evasion by bogus IEC
holders etc., it has been decided by the Board to put in place the " Know
Your Customer (KYC)" guidelines for CHAs so that they are not used intentionally
or unintentionally by importers / exporters who indulge in fraudulent activities.
Accordingly, Regulation 13 of CHALR, 2004, has been suitably amended to provide
that certain obligations on the CHAs to verify the antecedent, correctness of
Import Export Code (IEC) Number, identity of his client and the functioning of
his client in the declared address by using reliable, independent, authentic documents,
data or information. In this regard, a detailed guideline on the list of documents
to be verified and obtained from the client/ customer is enclosed in the Annexure.
It would also be obligatory for the client/ customer to furnish to the CHA, a
photograph of himself/herself in the case of an individual and those of the authorised
signatory in respect of other forms of organizations such as company/ trusts etc.,
and any two of the listed documents in the annexure. (v) Time limit for completion
of suspension proceedings against CHA licensee under regulation 22: 7.1. The
present procedure prescribed for completion of regular suspension proceedings
takes a long time since it involves inquiry proceedings, and there is no time
limit prescribed for completion of such proceedings. Hence, it has been decided
by the Board to prescribe an overall time limit of nine months from the date of
receipt of offence report, by prescribing time limits at various stages of issue
of Show Cause Notice, submission of inquiry report by the Deputy Commissioner
of Customs or Assistant Commissioner of Customs recording his findings on the
issue of suspension of CHA license, and for passing of an order by the Commissioner
of Customs. Suitable changes have been made in the present time limit of forty
five days for reply by CHA to the notice of suspension, sixty days time for representation
against the report of AC/DC on the grounds not accepted by CHA, by reducing the
time to thirty days in both the cases under the Regulations. 7.2. In cases
where immediate suspension action against a CHA is required to be taken by a Commissioner
of Customs under regulation 20(2), there is no need for following the procedure
prescribed under Regulation 22 since such an action is taken immediately and only
in justified cases depending upon the seriousness or gravity of offence. However,
it has been decided by the Board that a 'post-decisional hearing' should be given
in all such cases so that errors apparent, if any, can be corrected and an opportunity
for personal hearing is given to the aggrieved party. Further, Board has also
prescribed certain time limits in cases warranting immediate suspension under
Regulation 20(2). Accordingly, the investigating authority shall furnish its report
to the Commissioner of Customs who had issued the CHA license (Licensing authority),
within thirty days of the detection of an offence. The Licensing authority shall
take necessary immediate suspension action within fifteen days of the receipt
of the report of the investigating authority. A post-decisional hearing shall
be granted to the party within fifteen days from the date of his suspension. The
Commissioner of Customs concerned shall issue an Adjudication Order, where it
is possible to do so, within fifteen days from the date of personal hearing so
granted by him. (vi) CHA licenses in respect of individuals who had passed
the examination under CHALR, 1984: 8.1. The issue of granting CHA license
in respect of persons who had already passed the written and oral examinations
held under Regulation 9 examination of Customs House Agents Licensing Regulations
(CHALR), 1984 and are yet to be considered for issue of CHA license, was examined
by the Board. On this issue, the Board in its earlier meeting had held that with
the introduction of CHALR, 2004, there was no generalized case for grant of CHA
licence to such applicants having passed Regulation 9 examination under CHALR,
1984 as the requirements of educational qualification and also examination curriculum
were different in the two regulations. Considering the hardships experienced by
such persons and in order to remedy the situation by providing one time opportunity
to qualify them for grant of CHA license, It has been decided by the Board to
conduct written examination for these persons on the following additional subjects:
(a) The Patents Act, 1970 and Indian Copy Right Act; 1957 (b) Central Excise Act,
1944 (c) export promotion schemes (d) Procedure on appeal and revision petition
(e) Prevention of Corruption Act, 1988 and (f) online filing of electronic Customs
declarations, (g) Narcotic Drugs and Psychotropic Substances Act, 1985 and (h)
Foreign Exchange Management Act, 1999. The aforesaid examination would be conducted
by the Directorate General of Inspection after giving due notice to these candidates.
Accordingly, persons who qualify in the aforesaid examination shall be deemed
to have passed under the Regulation 8 of Customs House Agents Licensing Regulations,
2004, and would be considered for grant of CHA license in terms of Regulations
9 of CHALR, 2004 by the concerned Commissionerate from where they had earlier
passed the CHA examination held under CHALR, 1984. 8.2. Board also took note
of the fact that these candidates had passed the CHA examination held under CHALR,
1984 based on the qualification prevailing at that relevant point of time, and
that a precedent existed wherein a dispensation was prescribed vide Board's Circular
No.48/2000-Customs dated 22.5.2000 for a specific period. Accordingly it was also
decided by the Board that in case of Regulation 9 examination passed candidates
under the CHALR, 1984, the relaxation provided in respect of educational qualifications
vide Board's Circular No. 48/2000-Customs shall be extended on similar basis.
9. The aforesaid decisions of the Board involving change in the CHALR, 2004,
has been implemented by issue of Notification No.30/2010-Customs (NT) dated 8.4.2010.
10. These instructions may be brought to the notice of the trade by issuing
suitable Trade / Public Notices. Suitable Standing orders/instructions may be
issued for the guidance of the field officers. 11. Difficulties faced, if
any, in implementation of this Circular, changes made in the CHALR, 2004 may be
brought to the notice of the Board immediately. F.No.502/5/2008-Cus.VI
(M.M.
Parthiban) Director (Customs)
Annexure Client/
Customer Identification Procedure Features to be verified and documents to
be obtained from clients/ customers S.No Form of organisation Features to
be verified Documents to be obtained 1 Individual (i) Legal name and any other
names used (ii) Present and Permanent address, in full, complete and correct.
(i) Passport (ii) PAN card (iii) Voter's Identity card (iv) Driving
licence (v) Bank account statement (vi) Ration card Note: Any two
of the documents listed above, which provides client/ customer information to
the satisfaction of the CHA will suffice. 2 Company (i) Name of the company
(ii) principal place of business (iii) mailing address of the company
(iv) telephone, fax number, e-mail address. (i) Certificate of incorporation
(ii) Memorandum of Association (iii) Articles of Association (iv)
Power of Attorney granted to its managers, officers or employees to transact business
on its behalf (v) Copy of PAN allotment letter (vi) Copy of telephone
bill 3 Partnership firm (i) Legal name (ii) Permanent address, in full,
complete and correct. (iii) Name of all partners and their addresses, in full
complete and correct. (iv) telephone, fax number, e-mail address of the firm
and partners. (i) Registration certificate, if registered (ii) Partnership
deed (iii) Power of Attorney granted to a partner or an employee of the firm
to transact business on its behalf (iv) Any officially valid document identifying
the partners and the person holding the Power of Attorney and their addresses
(v) Telephone bill in the name of firm/ partners 4 Trusts, Foundations
(i) Name of trustees, settlers, beneficiaries and signatories (ii) Name and
address of the founder, the managers, Directors and the beneficiaries, in full,
complete and correct. (iii) Telephone and fax number, e-mail address of the
trust, founder and trustees. (i) Certificate of Registration, if registered (ii)
Power of Attorney granted to transact business on its behalf (iii) Any officially
valid document to identify the trustees, settlers, beneficiaries and those holding
the Power of Attorney, founders/ managers/ directors and their addresses (iv)
Resolution of the managing body of the foundation/ association (v) Telephone
bill
STax
of Rs10 lakh and above must be paid by e-mode Service tax payment by big taxpayers
enters electronic Era
In this era of information technology, business is bound to be at the speed
of thought and the government does not wish to lag behind. Manual payments through
bank challans and other conventional methods have experienced the hurdles of cheque
clearances and difficulties faced by the finance department at the time of reconciliation
of figures. Information technology, no doubt, has fostered all areas.
However,
it is a double-edged sword as it makes payment procedures easy to execute but
difficult to rectify the mistakes. Electronic payment, popularly known as e-payment,
is an additional mode of paying Service tax to the government, apart from the
conventional methods offered by banks to their customers. This scheme facilitates
assessees by using the concept of "anytime anywhere". Payment can be
made through this facility even after normal banking hours.
Such flexibility
is not available in the conventional method of tax payment. Nonetheless, the public
at large still has some inhibitions regarding the online method of payment, which
still requires to win the trust and reliability of tax-payers. People prefer manual
dealings as sometimes servers are down or due to heavy traffic connections are
very slow. Insecure payment gateways also cause failure of transactions. E-tax
payment has been made mandatory with effect from October 1, 2006 for the assessee
who has "paid" Service tax of Rs50 lakh (old) or more in the current
financial year or the previous financial year. Recently, vide notification no.
01/2010-S.T. dated February 19, 2010, this limit has been reduced to Rs10 lakh.
Here, for considering the limit of Rs10 lakh, the word "paid"
includes payment through cash as well as CENVAT credit. When tax is required to
be paid electronically, failure to do so would lead to penalty under Section 77
of the Finance Act, 1994, which may extend to Rs5,000. There are many advantages
of e-payment, including ease of operation and convenience.
The facility
is available 24x7 and there are no queues and waiting. Minimum fields of the challan
need to be filled and an auto fill lends a helping hand. Moreover, you get an
Instant Cyber receipt with the bank's transaction number along with the acknowledgement
of the challan, which can be retrieved again at any time as per your need.
As this is a 24x7 facility, it is operated through a system known as OLTAS
(On-Line Tax Assessment System). All payments effected up to 8 pm will be treated
as that day's receipt. Payments effected after 8 pm will be accounted as the next
working day's receipt. Certain doubts have also been raised as regards the
interpretation of qualifying amount of Service tax of Rs10 lakh paid by the assessee.
For a person providing taxable service from more than one premises, where each
such premises is separately registered with the department for payment of Service
tax, the criterion of Rs10 lakh would apply to each registered premises individually,
as each registered premises is separately an assessee in terms of law.
If
a person providing taxable service also receives taxable services on which he
is liable to pay Service tax, and has single registered premises, the Service
tax amount of Rs10 lakh would be the total amount of Service tax paid by him,
i.e. Service tax paid on taxable service provided from and Service tax paid on
taxable service received in such registered premises would be taken into account
for the purposes of satisfaction of criterion of payment of Service tax amount
of Rs 10 lakh. For illustration, if a person provides taxable service as well
as receives Goods Transport Agency (GTA) service, then for considering the Rs10
lakh criterion total of taxable services provided as well as GTA services received
should be considered.
For e-payment, assessees should open a net banking
account with one of the authorised banks (currently there are 28 banks), list
of which is available on the EASIEST (Electronic Accounting System in Excise and
Service Tax) website of CBEC, maintained by NSDL (https://cbec.nsdl.com/EST/).
Payment through ICICI Bank, HDFC Bank and Axis Bank can be done by assessees
for select commissionerates only, list of which is displayed in the aforesaid
EASIEST website. Payment through all other authorised banks can be made for all
commissionerates. One has to follow a simple procedure for e-payment: To pay Service
tax online, the assessee has to enter the 15-digit PAN-based Assessee Code. Instantly,
there will be an online check of the validity of the Assessee Code entered. If
the Assessee Code is valid, then corresponding assessee details like name, address,
commissionerate code etc as present in the Assessee Code Master will be displayed,
and based on the Assessee Code,
Service tax to be paid will be automatically
selected. The assessee is required to select the type of tax to be paid by clicking
on Select Accounting Codes for Service tax. The best part is that at a time the
assessee can select up to six Accounting Codes. The assessee should also select
the bank through which payment is to be made. On submission of data entered,
a confirmation screen will be displayed. If the taxpayer confirms the data entered
in the screen, it will be directed to the net-banking site of the bank selected.
The taxpayer has to login to the net banking site with the user id/ password,
provided by the bank for net-banking purpose, and enter payment details at the
bank site.
On successful payment, a challan counterfoil will be displayed
containing CIN, payment details and bank name through which e-payment has been
made. This counterfoil is proof of payment made. The procedure is much simpler
and easier than waiting for the bank clerk for long hours and at the end not getting
a proper receipt. The Service tax department has already entered the e-era; now
it's time that the service providers do not lag behind
CUSTOMS
NOTIFICATION NO.41/2010-Cus Dated: April 01, 2010
Custom
duty on import of goods required for medical, surgical, dental or veterinary use
lowered to 5 %
In
exercise of the powers conferred by sub-section (2A) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 21/2002- Customs, dated the 1st March, 2002 , published
in the Gazette of India, Extraordinary vide number G.S.R.118 (E) , dated the 1st
March, 2002, namely:- In the said notification, in the Table, for S. No. 357A
and the entries relating thereto, the following shall be substituted, namely:-
(1) (2) (3) (4) (5) (6) "357A 9018, 9019, 9020, 9021
or 9022 Goods required for medical, surgical, dental or veterinary use
Explanation - For the purposes of this exemption, the term "Goods"
refers to medical instruments / appliances required for medical, surgical, dental
or veterinary use only and does not refer to Parts and spares thereof. 5% - -".
F. No. 354/44/2010-TRU
Prashant
Kumar Under Secretary to the Government of India
Note:
The principal notification was published in the Gazette of India, Extraordinary,
vide notification No. 21/2002-Customs, dated the 1st March, 2002 [G.S.R. 118(E),
dated the 1st March, 2002] and was last amended vide notification No. 40/2010-Customs,
dated the 31 st March, 2010, [G.S.R. 275(E), dated the 31 st March, 2010].
PN-51-09-Import
authorizations for a restricted item, if so directed by the competent authority,
shall be issued for import through one of the seaports or airports or ICDs or
LCS, as per the option indicated, in writing, by the applicant
PN-52-2009-Colour
TV Sets, Audio Systems & Sub Systems, Power Supplies- Electrical Transformers,
Telephone Sets, CD, DVD and Solid Non-Volatile Storage Devices, Unpopulated PCBs,
Semiconductor Devices, Aerial and Aerial Reflectors, Data Cables, Lan Cables,
Category Cables, Printed Circuits, ICs, LED, Public Transport Type Passenger Motor
Vehicles, Empty LPG Cylinders, Desktops and Notebooks, Agrochemicals & Pesticides,
Bicycles Mirrors, Dynamo Lighting Sets, Copper Cathodes, Petro Products notified
as New Market Linked Focus Products for benefits on exports made on or after 1st
Jan 2010
PN-53-09-Readymade Garments notified under New Market Linked
Focus Products for benefits on exports made from 1.4.2010 till 30-09-2010
POLCIR-28-09- Drawing of export samples of basmati rice for variety identification
purposes-Reg.
POLCIR-29-09- Invitation for applications for Import licences
for Rough Marble Blocks - Issue of quota for the financial year 2010-11 as per
Policy Notified vide Notification No. 36/2009-14 dated 31-3-2010.
CUSTOMS
NOTIFICATION NO.40/2010-Cus Dated: March 31, 2010
Raw
sugar imported by bulk consumer exempted from Cus duty
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 21/2002-Customs, dated the 1 st March, 2002 which
was published in the Gazette of India, Extraordinary, vide number G.S.R.118 (E),
dated the 1 st March, 2002, namely:- In the said notification,- 1. in
the preamble, in the proviso, (i) in clause (f), for the figures, letters
and words "1st day of April, 2010", the figures, letters and words "1st
day of April, 2011" shall be substituted; (ii) after clause (ha), the
following clause shall be inserted, namely:- " (haa) the goods specified
against S.No . 38CC of the said Table on or after the 1 st day of January 2011";
Changes
in Tariff value in Brass Scrap & poppy seeds
In
exercise of the powers conferred by sub-section (2) of section 14 of the Customs
Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient
so to do, hereby makes the following further amendment in the notification of
the Government of India in the Ministry of Finance (Department of Revenue), No.
36/2001-Cus (N. T.), dated, the 3 rd August 2001, namely: - In the said notification,
for the Table, the following Table shall be substituted namely:- "TABLE S.
No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value
US $ (Per Metric Tonne ) (1) (2) (3) (4) 1 1511 10 00 Crude Palm Oil
447 (i.e. no change) 2 1511 90 10 RBD Palm Oil 476 (i.e. no change) 3
1511 90 90 Others - Palm Oil 462 (i.e. no change) 4 1511 10 00 Crude Palmolein
481 (i.e. no change) 5 1511 90 20 RBD Palmolein 484 (i.e. no change) 6
1511 90 90 Others - Palmolein 483 (i.e. no change) 7 1507 10 00 Crude Soyabean
Oil 580 (i.e. no change) 8 7404 00 22 Brass Scrap (all grades) 3898 9
1207 91 00 Poppy seeds 4070" F. No. 467/4/2010-Cus.V (M. Satish Kumar
Reddy) Director to the Government of India Note: - The Principal notification
was published in the Gazette of India, Extraordinary, vide Notification No. 36/2001
- Customs (N.T.), dated, the 3 rd August, 2001 (S. O. 748 (E), dated, the 3 rd
August, 2001) and was last amended vide Notification No. 20/2010-Customs (N.T.),
dated, the 15 th March , 2010 (S. O. 590 (E) dated 15 th March, 2010).
SERVICE
TAX NOTIFICATION NO.22/2010 - Service Tax Dated: March 30, 2010 In exercise
of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994
(32 of 1994) (hereinafter referred to as the Finance Act), the Central Government,
on being satisfied that it is necessary in the public interest so to do, hereby
makes the following amendment in the notification of the Government of India in
the Ministry of Finance (Department of Revenue) No.09/2010-Service Tax, dated
the 27 th February, 2010, published in the Gazette of India, Extraordinary, vide
number G.S.R. 153 (E), dated the 27 th February, 2010, namely:- 2. In Para
3 of the said Notification, for the word 'April', the word 'July' shall be substituted.
[F. No. B-I/2/2010-TRU] (Prashant Kumar) Under Secretary to the Government
of India. Note.- The principal notification No. 09/2010-Service Tax, dated
the 27 th February, 2010, was published vide number G.S.R. 153(E), dated the 27
th February, 2010 ---------------------------------
SERVICE TAX NOTIFICATION
NO.21/2010 - Service Tax Dated: March 30, 2010 In exercise of the powers
conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994)
(hereinafter referred to as the Finance Act), the Central Government, on being
satisfied that it is necessary in the public interest so to do, hereby makes the
following amendment in the notification of the Government of India in the Ministry
of Finance (Department of Revenue) No.08/2010-Service Tax, dated the 27 th February,
2010, published in the Gazette of India, Extraordinary, vide number G.S.R. 152
(E), dated the 27 th February, 2010, namely:- 2. In Para 2 of the said Notification,
for the word 'April', the word 'July' shall be substituted. [F. No. B-I/2/2010-TRU]
(Prashant Kumar) Under Secretary to the Government of India Note.-
The principal notification No. 08/2010-Service Tax, dated the 27 th February,
2010, was published vide number G.S.R. 152(E), dated the 27 th February, 2010.
-----------------------------------
SERVICE TAX NOTIFICATION NO.20/2010
- Service Tax Dated: March 30, 2010 In exercise of the powers conferred
by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter
referred to as the Finance Act), the Central Government, on being satisfied that
it is necessary in the public interest so to do, hereby makes the following amendment
in the notification of the Government of India in the Ministry of Finance (Department
of Revenue) No.07/2010-Service Tax, dated the 27 th February, 2010, published
in the Gazette of India, Extraordinary, vide number G.S.R. 151 (E), dated the
27 th February, 2010, namely:- 2. In Para 2 of the said Notification, for
the word 'April', the word 'July' shall be substituted. [F. No. B-I/2/2010-TRU]
(Prashant
Kumar) Under Secretary to the Government of India
Note.-
The principal notification No. 07/2010-Service Tax, dated the 27 th February,
2010, was published vide number G.S.R. 151(E), dated the 27 th February, 2010.
CUSTOMS
CIRCULAR NO.8/2010-Cus. Dated: March 26, 2010
Subject:
Import of Cosmetics under the Drugs and Cosmetics Act, 1940 and Rules made thereunder
- regarding .
I
am directed to invite your attention to the Board's Instructions vide F.No . 450/08/2007-Cus.IV
dated 22 nd January, 2007 regarding import of drugs under Chemical or generic
name and permitting its clearance through specified places under the Drugs and
Cosmetics Rules, 1945.
2.
In terms of Rule 133 of the Drugs and Cosmetics Rules, 1945, no cosmetics shall
be imported into India except through the points of entry specified in Rule 43A
of the said Rules. Further, under Schedule "D" to the said Rules read
with Rule 43, an exemption has been provided to certain categories of substances
from the restrictions under Chapter III of the Drugs and Cosmetics Act, 1940 relating
to import of Drugs and Cosmetics. Therefore, a doubt has arisen as to whether
import of cosmetics could be permitted through any port in the country under the
Drugs and Cosmetics Rules, 1945. The matter was taken up with the Drugs Controller
General of India (DCGI) for obtaining necessary clarification.
3.
The DCGI has clarified the aforesaid issue. It is stated by them that Rule 133
of the Drugs and Cosmetics Rules limits the import of cosmetics through the points
of entry specified under Rule 43A. However, under Schedule "D" to the
said Rules, an exemption has been provided for substances not intended for medical
use from the provisions of Chapter III of the Drugs and Cosmetics Act and Rules
made thereunder . The Act provides for separate definition for 'cosmetic' and
'drug' under Sub-Section 3( aaa ) and 3(b), respectively. Hence, they have stated
that the phrase 'substances not intended for medical use' would only relate to
substances which would otherwise fall under the definition of the term 'drug'
under section 3(b) of the Act, but are being imported not for medicinal use or
for some other purposes or are of commercial quality and are being labelled indicating
that they are not for medicinal use. Accordingly, they had clarified that this
exemption does not extend to other categories of products defined under the Act
including cosmetics. For the purpose of import of cosmetics, provision of Rule
133 therefore remains applicable.
4.
Accordingly, import of cosmetics at points of entry / places other than those
specified under Rule 43A may not be permitted as per the provisions of the Drugs
and Cosmetics Rules, 1945. The points of entry have been specifically mentioned
in Rule 43A such as Chennai, Kolkata, Mumbai, Nhava Sheva , Cochin, Kandla , Delhi,
Ahmedabad, Hyderabad and Ferozepur Cantonment, Amritsar, Ranaghat , Bongaon and
Mohiassan Railways Stations. If the imports are noticed through Customs stations,
other than the one notified as mentioned above, then necessary action may be taken
for non-compliance of the Drugs and Cosmetics Rules in respect of such imports.
5.
Board's Instructions vide F.No.450/08/2007-Cus.IV dated 22.1.2007 shall apply
for import of drugs. In case of import of drugs noticed at places other than those
that have been notified under the above Rules, the instruction communicated by
Drugs Controller General of India, Directorate General of Health Services vide
No.16/6-DC dated 15.6.2007 (copy enclosed) may be followed. 6. These instructions
may be brought to the notice of all concerned by way of issuance of suitable Public
Notice / Standing Order.
7.
Difficulties, if any, in implementation of the Circular may be brought immediately
to the notice of the Board. F. No.450/182/2009-Cus.IV
PUBLIC
NOTICE NO 50-2009-2014 Dated: March 29,2010
PN-50-10-Notifies new Aayat Niryat Form 2EE
In
exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy,
2009-14, the Director General of Foreign Trade hereby makes, with immediate effect,
the following amendments to Handbook of Procedures (Volume 1)(2009-14):
2.
Aayat Niryat Form 2EE (ANF 2EE), as given in Annexure to this Public Notice, shall
be inserted after ANF 2E in the Handbook of Procedures (Volume 1) ( Appendices
and Aayat Niryat Forms). 3. In Para 2.49 of the Handbook of Procedures (Volume
1), following shall be inserted below Note 6 : " PROCEDURE /G UIDELINES
F OR F ILING /E VALUATION O F A PPLICATIONS F OR E NTERING I NTO A N A RRANGEMENT
O R U NDERSTANDING F OR S ITE V ISITS, O N -S ITE V ERIFICATION A ND A CCESS T
O R ECORDS /D OCUMENTATION An application for entering into an arrangement
or understanding involving site visit, on-site verification or access to records/documentation
by a foreign government or a foreign third party either acting directly or through
an Indian party as mentioned in Appendix 3 of Schedule 2 of ITC(HS) shall be made
in ANF 2EE to DGFT(Hqrs.), New Delhi along with documents prescribed therein.
These applications shall be considered by an Inter-Ministerial Working Group
(IMWG) in DGFT based on following guidelines/general criteria:
I.
Following factors, among others, will be taken into account in the evaluation
of applications for entering into an arrangement or understanding for site visits,
on-site verification and access to records/documentation: (a) Purpose for
which arrangement / understanding is proposed under which site visit or on-site
verification or access to records/documentation is to be undertaken. (b) Credentials
and details of the parties involved. (c) Credentials of end-user, credibility
of declarations of end-use of the items or technology, the integrity of chain
of transmission of the item from the supplier to the end-user, and on the potential
of the item or technology, including the timing of its export, to contribute to
end-uses that are not in conformity with India's national security or foreign
policy goals and objectives, the objectives of global non-proliferation, or its
obligations under treaties to which it is a State party. (d) The assessed
risk that the arrangement/understanding could lead to dual-use items and technology
falling into the hands of terrorists, terrorist groups and non-State actors. (e)
In case site visit, on-site verification or access to records/documentation is
to be carried out by a foreign government or its representative(s), the following
shall be taken into consideration :- i. Export control measures instituted
by the foreign government; ii. Capabilities and objectives of programs of
the foreign government relating to weapons and their delivery. (f) Applicability
of relevant bilateral and multilateral agreements to which India is a party (g)
Assessment of any threat that such site visit, on-site verification or access
to records/documentation may pose to India 's national security, and relations
with any other country. (h) Assessment of possible links of the foreign parties
with terrorist organizations and non-state actors within their own country or
in any other country. II. Permission for arrangement or understanding involving
site visit, on-site verification or access to records/documentation will be subject
to the following conditions:- (a) Site visit, on-site verification or access
to records/documentation will be confined to the purpose, sites and activity for
which permission given/which have been mentioned in the authorization. (b)
Site visit, on-site verification or access to records/documentation will be allowed
only to individuals mentioned in the authorization. (c) Site visit, on-site
verification or access to records/documentation shall be concluded during the
period mentioned in the authorization. (d) Exporter/Importer will keep a record
of site visit, on-site verification or access to records/documentation alongwith
detail of individuals who visited the premises during this visit and produce the
same as and when required to do so by the GOI. (e) No exchange of goods, services
and technologies and any documentation including drawings, specification sheets
etc. will take place during the visit. (f) Exporter/importer may be required
to give any additional assurance that the Government of India may require. (g)
Any other condition that may be stipulated in the permission. III. Provisions
of Weapons of Mass Destruction Act, 2005 shall also apply to an arrangement or
understanding that involves site visit, on-site verification or access to records/documentation.
IV. Any violation of any condition of the license shall invite civil/ criminal
prosecution as per law." 4. This issues in public interest. File
No.01/91/171/14/AM-06/Export Cell)
(R.S.
Gujral) Director General of Foreign Trade and Ex Officio Special Secretary
to the Government of India
ANNEXURE
to Public Notice No… ANF 2EE Application Form for Request for Entering
into an Arrangement or Understanding that Involves Site Visit, On-Site Verification
or Access to Records / Documentation as mentioned in Appendix 3 of Schedule 2
of ITC (HS) Classification of Export and Import Items [Please see guidelines
(at the end) before filling the application] 1. IEC Number * *IEC should
not be under DEL on the date of application. 2. Applicant Details : i.
Name ii. Address
3.
Jurisdictional Regional Authority :
4.
Detail of activities and operations:
5.
Details of the provisions of the arrangement or understanding involving site visits
/ on-site verification / access to records / documentation ( e.g. nature of documentation,
mode of verification, nature and frequency of site visits etc.) Please include
all details and attach the draft of relevant declaration / arrangement / MOU etc.
*
*
Enclose additional sheet if required 6. Purpose of arrangement/understanding
involving site-visit / on-site verification / access to record / documentation
(please tick and give clarification, if any) : i. Export of SCOMET Items ii.
Import of SCOMET Items
7.
In case purpose is export / import of SCOMET Items, following details may be provided
: (a). Details of SCOMET items in Appendix 3 of Schedule 2 of ITC(HS) Classification
of Export & Import Items: Sl. No. Description of export / import items
SCOMET Category i.e. 1B, 1C, 2,3,4,5 and 7 SCOMET Item No. ITC (HS) Code No. (if
available) Quantity
(b) End user Details : i. Name ii. Address
iii. Telephone No. iv. Fax No. v. Location (Country) of end user vi.
End product for which the item of export will be used by the end user vii.
Purpose for which the end product will be utilized viii. Is end user an entity
of Government of destination country? ix. Manufacturing / Business / other
activity of the end user
8
. Details of export / import of SCOMET items in the preceding 3 licensing years
: Sl. No. Export / Import Licence/Authorization Details Category & Description
of items Exported / Imported Qty. exported / imported Date of Shipment FOB Value
of Exports / Imports (US $) Country to/ from which exported / imported Name of
the End User No. Date Qty Value (US $)
9.
Details of the Foreign Government / Foreign Third Party** i. Name ii.
Address iii. Telephone No. iv. Fax No. v. Is the party, an entity of Govt.
of that country? ** Detailed profile to be enclosed. 10. If the visit
/ verification / access to records will be through an Indian Party, details of
the Indian Party : i. Name ii. Address iii. Telephone No. iv. Fax
No. v. Address of Corporate Office.
11.
(a) Period of arrangement or understanding that involves site visit, on-site verification
or access to records / documentation: (b). Proposed number of visits:
12.
Detail of sites and activities which will be covered by the arrangement / understanding
# (I) i. Address ii. Telephone No. iii. FAX No. iv. Nature of
Unit : Corporate Office / Registered Office / Branch Office /Manufacturing unit
/ Laboratory. (v) Activity. (II) i. Address ii. Telephone No.
iii. FAX No. iv. Nature of Unit : Corporate Office / Registered Office / Branch
Office /Manufacturing unit / Laboratory. v. Activity. # Enclose additional
sheet, if required. 13. Details of persons / individuals who shall visit during
site visit / on-site verification etc. ## (I) i. Name ii. Address
iii. Nationality iv. Position / Designation in the foreign government
/ foreign third party / Indian Party v. Telephone No. vi. Fax No. (II)
i. Name ii. Address iii. Nationality iv. Position / Designation
in the foreign government / foreign third party / Indian Party v.
Telephone No. vi. Fax No. ## Enclose additional sheet, if required. 14.
If applied for permission for entering into arrangement / understanding that involves
site visit, on-site verification or access to records / documentation on repeat
basis during last five (5) licensing years for the same purpose, please furnish:
Reference Number and date vide which earlier permission granted
15.
Foreign Collaborator Details (As registered with GOI/RBI) (If No foreign
collaboration exists, please state 'None') i. Name ii. Address DECLARATION/UNDERTAKING
1. I / We hereby declare that the particulars and the statements made in this
application are true and correct to the best of my / our knowledge and belief
and nothing has been concealed or held there from. 2. I / We fully understand
that any information furnished in the application if found incorrect or false
will render me / us liable for any penal action or other consequences as may be
prescribed in law or otherwise warranted. 3. I / We undertake to abide by
the provisions of the FT (D & R) Act, 1992, the Rules and Orders framed there
under, FTP, HBP v 1 and HBP v2 and ITC (HS). 4 a. I / We hereby certify
that the firm / company for whom the application has been made has not been penalized
under Customs Act, Excise Act, FT (D & R) Act 1992 and FERA / FEMA. b.
I / We hereby certify that none of the Proprietor / Partner(s) / Director(s) /
Karta / Trustee of firm / company, as the case may be, is / are a Proprietor /
Partner(s) / Director(s) / Karta / Trustee in any other firm / Company which has
come to adverse notice of DGFT. c. I / We hereby certify that the Proprietor
/ Partner(s) / Director(s) / Karta / Trustee, as the case may be, of the firm/company
is / are not associated as Proprietor / Partner(s) / Director(s) / Karta / Trustee
in any other firm / company which is in the caution list of RBI. d. I / We
hereby certify that neither the Registered Office / Head Office of the firm/company
nor any of its Branch Office(s) / Unit(s) / Division(s) has been declared a defaulter
and has otherwise been made ineligible for undertaking import / export under any
of the provisions of the Policy. 5. I / We hereby declare that I / We have
not obtained nor applied for such benefits (including issuance of an Importer
Exporter Code Number) in the name of our Registered / Head Office or any of our
Branch(s) / Unit(s) / Division(s) to any other Regional Authority. 6. I /
We solemnly declare that I / We have applied for / obtained a RCMC to the EPC
which pertains to our main line of business. In case we have applied to any other
council, the application has been made within the purview of the provisions of
Para 2.67 and Para 2.67.1 of the HBP v1. 7. a. I / We further undertake
to maintain record of site visit, on-site verification or access to records /
documentation and produce the same as and when asked to do so by the Government
of India. b. I/We also hereby inform that we have complied with the conditions
of all previous permissions issued to us for entering into an arrangement or understanding
that involves site visits, on-site verification or access to records / documentation.
8. I hereby certify that I am authorized to verify and sign this declaration
as per Paragraph 9.9 of the Policy. Place: Signature of the Applicant Name
Designation Date: Official Address Telephone E-mail Address
GUIDELINES
FOR APPLICANTS (Please also see paragraph 2.49 of HBP v1)
1.
One original application in the prescribed format ANF 2EE and ANF 1 and six copies
thereof along with self-certified copies of the documents as in para 2 below must
be submitted to DGFT (HQ), Udyog Bhavan, New Delhi. Each page of the original
application has to be signed by the applicant with stamp of the company.
2.
Application must be accompanied by self-certified copies of the documents as per
details given below: (i) Import & Export Code number. (ii) Copy of
draft Declaration / draft Agreement / draft MOU proposed to be signed for entering
into an Arrangement or Understanding that involves site visit etc. (iii) Technical
Specifications (not exceeding one page for each item) for the items to be exported
/ imported. (iv) Profile of the foreign government / foreign third party /
Indian party.
3.
In case purpose of site visit / on-site verification is export / import, Original
End User certificate (in the prescribed format Appendix 36 on Letter Head of the
End User) indicating complete details of the export / import product, end product,
end purpose for which the item of export / import will be used by end user alongwith
complete address and telephone No. of end user must be furnished alongwith original
application. End User Certificate from the following must also be submitted: (i)
By the final end user if the import is by a third party / contractor. (ii)
By the third party /contractor, if any, who is supplying goods to the end user.
4.
Complete address(s) should be stated in relevant columns. P.O. Box number will
not be accepted.
CUSTOMS
CIRCULAR NO.7/2010-Cus. Dated: March 23, 2010
Sub:
Recovery of drawback amount on the portion of the FOB value of export not realized
by the exporter but compensated by
ECGC - reg.
I
am directed to say that payment of duty drawback is governed by provisions of
section 75 of the Customs Act, 1962 and the rules made there under. Section 75
of the Customs Act provides that where any drawback has been allowed on any goods
and the sale proceeds in respect of such goods are not realized within the time
allowed under the Foreign Exchange Management Act, 1999 such drawback shall be
deemed never to have been allowed and the Central Government may, by Rules made
under section 75 (2), specify the procedure for the recovery of the amount of
such drawback. A procedure has also been laid down under the Customs, Central
Excise and Service Tax Drawback Rules, 1995 for recovery of drawback in case of
non-realization of export proceeds. Therefore, the amount of drawback paid in
all such cases where export proceeds have not been realized has to be recovered.
2.
However, it has been brought to notice of the Board that some exporters are resisting
recovery of drawback in cases where export proceeds have not been realized citing
provisions in Handbook of Procedure (HBP) (Vol.1) of the Foreign Trade Policy
(FTP) discussed below.
3.
Para 2.25.1 of the Handbook of Procedure (HBP) (Vol.1) of the Foreign Trade Policy
(FTP) 2009-2014 provides that payment through ECGC cover would count for benefits
under FTP. The FTP 2004-09 (Para 2.25.1 of the HBP v.1) and the FTP 2002-2007
(Para 2.25.3 of the HBP v.1) also had the same provision. The DGFT vide Policy
Circular No.12/2002-2007 dated 1.11.2002 had clarified that this provision would
also be applicable to exports made or licenses issued prior to 01.4.2002.
4.
Further, a new provision has been made in the current FTP (Para 2.25.4 of the
HBP v.1, 2009-14) which provides that realization of export proceeds shall not
be insisted under any of the Export Promotion Schemes under the Foreign Trade
Policy, if the Reserve Bank of India (RBI) writes off the requirement of realization
of export proceeds on merits and the exporter produces a certificate from the
concerned foreign Mission of India about the fact of non-recovery of export proceeds
from the buyer. However, this would not be applicable in self-write off cases.
5.
Since the Drawback scheme is governed by the provisions of the Customs Act, 1962
and the Rules made there under which clearly provide that drawback should be recovered
if sale proceeds have not been realized, it is hereby clarified that provisions
contained in para 2.25.1 and 2.25.4 of the HBP v.1 (2009-14) would not be applicable
to the Drawback scheme. Hence, 'Drawback' would not be payable in cases where
export proceeds have not been realised in accordance with the provisions of the
Foreign Exchange Management Act, 1999 even if the claim has been settled by ECGC
or realisation waived by RBI. Action should be taken for recovery of drawback
amount in such cases.
6.
A suitable Public Notice and Standing Order may be issued for the guidance of
the trade and staff. Difficulties faced, if any, in implementation of the Circular
may be brought to the notice of the Board at an early date. Receipt of the
Circular may kindly be acknowledged.
RE-NOTIFICATION
NO.34/2009-2014 Dated: March 25, 2010
Subject:
Exemption in Prohibition on export of Pulses - regarding.
In
exercise of the powers conferred by Section 5 read with Section 3(2) of the Foreign
Trade (Development & Regulation) Act, 1992 (No.22 of 1992) and also read with
Para 1.3 and Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government
hereby makes, with immediate effect, the following amendment in the Notification
No. 15 (RE-2006)/2004-09 dated 27.06.2006 read with Notification No. 99 (RE-2008)/2004-09
dated 27.03.2009, as amended, from time to time. 2. The following shall be
added at the end of para 3 (iii): "3 (iv) the prohibition on export of
pulses shall not be applicable to export of 60 MTs of pulses (Dal)) to the Republic
of Maldives." 3. This issues in Public Interest. F. No. 01/91/171/59/AM09/Export
Cell
(R.S.
GUJRAL) Director General of Foreign Trade And Ex-Officio Special Secretary
to the Govt. of India
CUSTOMS
NOTIFICATION NO.36/2010-Cus Dated: March 22, 2010
Customs
duty on import of specified goods from Bangaldesh Bhutan Maldives & Nepal
slashed-100 per cent exemption from applied rate of duty of customs leviable also
notified on several products
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following amendments
in the notification of the Government of India in the Ministry of Finance (Department
of Revenue), No.107/2008-Customs, dated the 6 th October, 2008, published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-Section ( i ), vide number
G.S.R. 718 (E), dated the 6 th October, 2008, namely:- In the said notification,
in the Table, in column (4),- (i) for the entry "50%", wherever
it occurs, the entry "75%" shall be substituted; (ii) for the entry
"75%", wherever it occurs, the entry "100%" shall be substituted.
F.No . 354/42/2002-TRU Pt.
Prashant
Kumar Under Secretary to the Government of India
Note.
- The principal notification No. 107/2008-Customs, dated the 6 th October, 2008
was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section
( i ) vide number G.S.R. 718 (E), dated the 6 th October, 2008.
AAR-India-UK
DTAA - Applicant is member of E&Y Global - gets access to central resources
and also support services from non-resident entity - reimburses costs - Since
relationship does not involve any transfer of technical knowhow or skill, it is
not covered under either DTAA or I-T Act
THE
Applicant is a private limited company, engaged in providing consultancy services.
The applicant is a member of Ernst & Young Global which has member entities
in various countries. Ernst & Young EMEIA Services Ltd is one of such entities
incorporated under the laws of England and Wales. This non-resident entity provides
support in various fields, and the costs incurred are allocated to all EY members
and they reimburse it - whether the payments made by the applicant are fees for
technical services under Article 13 of the DTAA. Whether the sum receivable by
the Ernst & Young EMEIA Services Ltd are fees for technical services u/s 9(1)(vii)
of the I-T Act. Matrix of facts
Ernst
& Young EMEIA Services provides support in various fields such as Area, Global
and Market Development etc. to all the member entities of the EY organization
so that they may gain access to standardized human, financial and other resources
to ensure that consistent, high quality professional services are provided to
the client base of all members of the EY organization. EMEIA, inter alia, provides
Area Services, Market Development Support Services and Global Services as detailed
in the Schedule to the Area Services and Market Development Agreement. Such support
is provided from UK and it does not have any Permanent Establishment or fixed
base in India. The terms and conditions under which all EY member entities would
get such support from EMEIA are documented in the form of the Area Services and
Market Development Agreement (for short, 'the Agreement') which has been filed.
Under the Agreement, costs incurred for providing the services are allocated to
EY member entities and they reimburse such costs to EMEIA, UK.
EMEIA
does not earn any income from providing access to centralized Ernst & Young
resources, facilities and services. The cost allocation is done in accordance
with agreed formula. The applicant states that the payment is made by way of reimbursement
of the cost incurred on behalf of the applicant company by EMEIA.
The
applicant seeks advance ruling on (1) Whether the amount payable by the applicant
in accordance with the agreement entered into with Ernst & Young (EMEIA) Services
Limited is chargeable to tax in India under the provisions of the Income-tax Act,
1961 ('the Act') and Double Taxation Avoidance Agreement between India and UK? (2)
Whether the amount receivable by Ernst & Young (EMEIA) Services Limited from
Ernst & Young (P) Ltd., inter alia, on account of Area Services, Market Development
Support Services and Global Services as detailed in the Schedule to the Area Services
and Market Development Agreement is chargeable to tax in India as "fees for
technical services" under section 9(1)(vii) of the Income-tax Act, 1961.
Applicant
argues that the amount received by EMEIA for Services rendered in terms of the
Agreement with the applicant company is not 'fees for technical services' as per
Article 13 of the DTAA between India and U.K. Though it gives rise to business
profit for the reason that EMEIA is in the business of providing access to central
resources and services to various member entities, in the absence of permanent
establishment of EMEIA in India, the receipt is not taxable in India by virtue
of the provisions in Article 7 of the DTAA. Having heard the parties the Authority
observes that, " Some of the services enumerated above have the flavour
of management services. Services of managerial nature are not included within
Article 13 unlike many other treaties. Only technical and consultancy services
are included. Many of them do answer that description. " However, the
more important question is whether EMEIA, U.K. has made available to the applicant
any technical knowledge, experience, skills or know-how by providing the 'support
services'. That question admits only of an answer in the negative. What all is
provided by EMEIA is informations on various business and commercial matters,
guidelines, templates, best practices and strategies that could be adopted in
various spheres of their business which ultimately lead to protection of EY image
and client relations. Dissemination of informations, furnishing guidelines and
suggesting plans of action aimed at uniformity and seamless quality in business
dealings of participating group entities do not per se amount to making available
to them technical knowledge and experience possessed by EMEIA to a substantial
extent. " There is no transfer of technical know-how in that process
nor can it be said that the recipient of these coordinated/centralized services
has been enabled to apply the technology which EMEIA is possessed of. In fact,
EMEIA has not developed any technology of its own nor does it innovate anything. "
Both the questions are answered in the negative and it is ruled that the amounts
receivable by Ernst and Young EMEIA Services Ltd. from the applicant under the
Agreement are not liable to be taxed under the Income Tax Act as fee for 'included
services' or as business profits, having regard to the provisions of DTAA between
India and UK. " However, the Income-tax authorities are not precluded
from making inquiry into the question whether the cost contribution is fixed on
arm's length basis and such determination can be made in the assessment proceeding
of the applicant. ----------------------------------
IN
THE AUTHORITY FOR ADVANCE RULINGS (INCOME TAX) NEW DELHI A.A.R. No.820 of
2009 Name & address of the applicant ERNST & YOUNG (P) LTD 22, Camac
Street, Kolkata - 700016 Commissioner concerned Commissioner of Income-tax, Kolkata Present
for the applicant Mr. N. Venkatraman, Sr. Advocate Mr. Achin Goel, Advocate Mr.
Kapilesh Manglik, CA Mr. Ashutosh Sharma, CA Mr. Ambrish Kumar Jhamb, CFO Mr.
Naveen Kapur, Manager Present for the Department None P V Reddi (Chairman)
And J Khosla (Member) Dated : March 19, 2010
Income
tax - Sec 9(1)(vii) - India-UK DTAA - Article 7, 13 - Applicant is a private limited
company, engaged in providing consultancy services - applicant is a member of
Ernst & Young Global which has member entities in various countries - Ernst
& Young EMEIA Services Ltd is one of such entities incorporated under the
laws of England and Wales - this non-resident entity provides support in various
fields, and the costs incurred are allocated to all EY members and they reimburse
it - whether the payments made by the applicant are fees for technical services
under Article 13 of the DTAA - whether the sum receivable by the Ernst & Young
EMEIA Services Ltd are fees for technical services u/s 9(1)(vii) of the I-T Act
Ernst
& Young EMEIA Services provides support in various fields such as Area, Global
and Market Development etc. to all the member entities of the EY organization
so that they may gain access to standardized human, financial and other resources
to ensure that consistent, high quality professional services are provided to
the client base of all members of the EY organization. EMEIA, inter alia, provides
Area Services, Market Development Support Services and Global Services as detailed
in the Schedule to the Area Services and Market Development Agreement. Such support
is provided from UK and it does not have any Permanent Establishment or fixed
base in India. The terms and conditions under which all EY member entities would
get such support from EMEIA are documented in the form of the Area Services and
Market Development Agreement (for short, 'the Agreement') which has been filed.
Under the Agreement, costs incurred for providing the services are allocated to
EY member entities and they reimburse such costs to EMEIA, UK.
EMEIA
does not earn any income from providing access to centralized Ernst & Young
resources, facilities and services. The cost allocation is done in accordance
with agreed formula. The applicant states that the payment is made by way of reimbursement
of the cost incurred on behalf of the applicant company by EMEIA. The applicant
seeks advance ruling on (1) Whether the amount payable by the applicant in
accordance with the agreement entered into with Ernst & Young (EMEIA) Services
Limited is chargeable to tax in India under the provisions of the Income-tax Act,
1961 ('the Act') and Double Taxation Avoidance Agreement between India and UK? (2)
Whether the amount receivable by Ernst & Young (EMEIA) Services Limited from
Ernst & Young (P) Ltd., inter alia, on account of Area Services, Market Development
Support Services and Global Services as detailed in the Schedule to the Area Services
and Market Development Agreement is chargeable to tax in India as "fees for
technical services" under section 9(1)(vii) of the Income-tax Act, 1961. Applicant
argues that the amount received by EMEIA for Services rendered in terms of the
Agreement with the applicant company is not 'fees for technical services' as per
Article 13 of the DTAA between India and U.K.
Though
it gives rise to business profit for the reason that EMEIA is in the business
of providing access to central resources and services to various member entities,
in the absence of permanent establishment of EMEIA in India, the receipt is not
taxable in India by virtue of the provisions in Article 7 of the DTAA. Having
heard the parties the Authority observes that, ++ some of the services enumerated
above have the flavour of management services. Services of managerial nature are
not included within Article 13 unlike many other treaties. Only technical and
consultancy services are included. Many of them do answer that description. ++
However, the more important question is whether EMEIA, U.K. has made available
to the applicant any technical knowledge, experience, skills or know-how by providing
the 'support services'. That question admits only of an answer in the negative.
What all is provided by EMEIA is informations on various business and commercial
matters, guidelines, templates, best practices and strategies that could be adopted
in various spheres of their business which ultimately lead to protection of EY
image and client relations. Dissemination of informations, furnishing guidelines
and suggesting plans of action aimed at uniformity and seamless quality in business
dealings of participating group entities do not per se amount to making available
to them technical knowledge and experience possessed by EMEIA to a substantial
extent. ++ There is no transfer of technical know-how in that process nor
can it be said that the recipient of these coordinated/centralized services has
been enabled to apply the technology which EMEIA is possessed of. In fact, EMEIA
has not developed any technology of its own nor does it innovate anything. ++
Both the questions are answered in the negative and it is ruled that the amounts
receivable by Ernst and Young EMEIA Services Ltd. from the applicant under the
Agreement are not liable to be taxed under the Income Tax Act as fee for 'included
services' or as business profits, having regard to the provisions of DTAA between
India and UK. ++ However, the Income-tax authorities are not precluded from
making inquiry into the question whether the cost contribution is fixed on arm's
length basis and such determination can be made in the assessment proceeding of
the applicant. Cases followed Intertek Testing Anapharm Inc. in re Both
questions are answered in the negative in favour of the applicant.
RULING 1.
The applicant, Ernst & Young Private Ltd. (EYPL) is a company incorporated
in India and is engaged in providing consultancy services (such as chartered accountancy
and management studies). The applicant is one of the member entities of Ernst
& Young Global (EYG). EYG has such member entities in various countries. All
member entities (including EYPL) use the brand 'Ernst & young' (EY) and adopt
the international practices followed by the EY organization worldwide for providing
consultancy services to their clients. Such membership enables the member companies
to co-operate, collaborate and work closely together to achieve the provision
of seamless, consistent, high-quality client service within the Area.
1.1.
Ernst & Young (EMEIA) Services Limited is a limited liability company incorporated
under the laws of England and Wales. This Company has been formed specifically
to facilitate the objective of providing support in various fields such as Area,
Global and Market Development etc. to all the member entities of the EY organization
so that they may gain access to standardized human, financial and other resources
to ensure that consistent, high quality professional services are provided to
the client base of all members of the EY organization. EMEIA, inter alia, provides
Area Services, Market Development Support Services and Global Services as detailed
in the Schedule to the Area Services and Market Development Agreement. Such support
is provided from UK and it does not have any Permanent Establishment or fixed
base in India. The terms and conditions under which all EY member entities would
get such support from EMEIA are documented in the form of the Area Services and
Market Development Agreement (for short, 'the Agreement') which has been filed.
Under the Agreement, costs incurred for providing the services are allocated to
EY member entities and they reimburse such costs to EMEIA, UK. 1
.2.
It is submitted that EMEIA does not earn any income from providing access to centralized
Ernst & Young resources, facilities and services. The cost allocation is done
in accordance with agreed formula. The applicant states that the payment is made
by way of reimbursement of the cost incurred on behalf of the applicant company
by EMEIA. 2. The following questions (as revised) are raised by the applicant
for the purpose of advance ruling: (1) Whether the amount payable by the applicant
in accordance with the agreement entered into with Ernst & Young (EMEIA) Services
Limited is chargeable to tax in India under the provisions of the Income-tax Act,
1961 ('the Act') and Double Taxation Avoidance Agreement between India and UK? (2)
Whether the amount receivable by Ernst & Young (EMEIA) Services Limited from
Ernst & Young (P) Ltd., inter alia, on account of Area Services, Market Development
Support Services and Global Services as detailed in the Schedule to the Area Services
and Market Development Agreement is chargeable to tax in India as "fees for
technical services" under section 9(1)(vii) of the Income-tax Act, 1961.
3.
The applicant contends that the amount received by EMEIA for Services rendered
in terms of the Agreement dated 5th May, 2009 with the applicant company is not
'fees for technical services' as per Article 13 of the DTAA (Tax Treaty) between
India and U.K. Though it gives rise to business profit for the reason that EMEIA
is in the business of providing access to central resources and services to various
member entities, in the absence of permanent establishment of EMEIA in India,
the receipt is not taxable in India by virtue of the provisions in Article 7 of
the DTAA.
4.
The term 'fees for technical services' is defined in para 4 of Article 13 to mean
"payment of any kind in consideration for the rendering of any technical
or consultancy services (including the provision of services of technical or other
personnel) which : ……………….. (c) make available technical
knowledge, experience, skills, know-how or processes or consist of the development
and transfer of a technical plan or technical design". The definition of
"fees for included services" in the India-USA Treaty bears the same
wordings. In the MOU reached between the Governments of India and USA concerning
"fees for included services" (Article 12), the import and connotation
of the first part of definition in clause (b) of para 4 i.e. "make available"
technical knowledge, experience etc. has been explained. The MOU clarifies that
technology will be considered 'made available' when the person acquiring the service
is enabled to apply the technology. The MOU further clarifies that the fact that
the provision of the service may require technical input by the person providing
the service does not per se mean that technical knowledge, skills, etc. are made
available to the person paying for the service.
5.
It is the contention of the applicant that the services rendered to the applicant
by EMEIA does not satisfy the test of 'make available' under Article 13 of the
DTAA as they do not result in transfer of any technical know-how, technical plan/design,
though some of the services broadly answer the description of consultancy or technical
services. The applicant submits that the work of EMEIA is confined to providing
support and access to central resources for developing business strategies and
plans at Area level, providing support in implementation of Priority Account Strategies
and Industry Sector Strategies, knowledge Management and Sharing, Market Development
Support, Assistance in the implementation and monitoring of common standards,
policies and tools, Assistance in Recruitment and training and retention of operating
Global methodologies and applications and procuring on a centralized basis goods
and services.
5.1
In the course of arguments, the learned counsel for the applicant while reiterating
the above contentions of the applicant, submitted that EMEIA does not create any
system or technology nor does it make its contribution by refining or improving
on it. It merely gathers and collates the information from the systems already
available and place them before the members entities who have entered into agreement
for their guidance and implementation. The idea is to maintain uniformity in practices
and approaches in business among the E&Y Group entities by providing the requisite
templates, power points, accounting practices etc. EMEIA serves as a common platform
for globalizing the standards and ensuring uniformity in practices and systems.
The total expenditure will be shared by all the entities. The nature of services
listed in the Agreement would clearly indicate that no technical knowledge, experience,
skills or know-how is being made available by EMEIA to the member entities.
5.2
The learned counsel has drawn our attention to the passages in the recent ruling
of this Authority in Intertek Testing 307 ITR 418 at p.432 ,which are extracted
below: "Rendering technical or consultancy service is followed by a relative
pronoun "which" and it has the effect of qualifying the services. That
means, the technical or consultancy service rendered should be of such a nature
that "makes available" to the recipient technical knowledge, know-how
and the like. The service should be aimed at and result in transmitting the technical
knowledge, etc., so that the payer of service could derive an enduring benefit
and utilize the knowledge or know-how in future on his own without the aid of
the service provider. By making available the technical skills or know-how, the
recipient of the service will get equipped with that knowledge or expertise and
be able to make use of it in future, independent of the service provider. In other
words, to fit into the terminology "make available", the technical knowledge,
skills, etc., must remain with the person receiving the services even after the
particular contract comes to an end. The services offered may be the product of
intense technological effort and a lot of technical knowledge and experience of
the service provider would have gone into it. But that is not enough to fall within
the description of services which make available the technical knowledge, etc.
The technical knowledge or skills of the provider should be imparted to and absorbed
by the receiver so that the receiver can deploy similar technology or techniques
in future without depending on the provider." In the case of Anapharm
Inc. in re 304 ITR 394 ,this Authority observed: It is, thus, fairly clear
that mere provision of technical services is not enough to attract article 12(4)(b).
It additionally requires that the service provider should also make his technical
knowledge, experience, skill, know-how, etc. known to the recipient of the service
so as to equip him to independently perform the technical function himself in
future, without the help of the service provider. In other words, payment of consideration
would be regarded as "fee for technical/included services" only if the
twin tests of rendering services and making technical knowledge available at the
same time is satisfied."
6.
Looking at the list of services enumerated in the Agreement, it appears to us
that the criterion laid down in para 4(c) of Article 13 (of UK Treaty) is not
satisfied. The Agreement contains an elaborate preamble explaining the underlying
objective of the Agreement. There are two types of services categorized in the
schedule; they are area services and global services. Both of them almost overlap.
Global services are more relevant for the purposes of this case. The applicant's
counsel has taken us through the global services and broadly explained the scope
of each service. The learned counsel at the outset pointed out some inaccuracy
in the definition of 'global services' because it refers to the services set out
in the EYGSLLP Management Services Agreement. The learned counsel has stated that
the global services are enumerated in a self-contained Schedule to the relevant
agreement i.e. Area Services and Market Development Agreement and, therefore,
the reference to some other earlier agreement is not appropriate. In any case,
the learned counsel has clarified that practically, there is no difference between
the services mentioned in both these agreements and if at all the enumeration
in the present agreement is more comprehensive. A chart containing comparative
analysis of these two agreements has been furnished to clarify this point.
7.
We have looked into the global services detailed in the schedule to the Agreement
with which we are concerned. We shall refer to them (14 in number) in brief one
by one: 1. Strategy - Firmwide & Service Lines - Developing, leading and
overseeing plans and strategies for the Member Firms of Ernst & Young Global
in order to achieve seamless, consistent, high- quality services Formulating global
planning processes and encouraging their adoption. Overseeing execution of plans
and strategies with global consistency while differentiating the EY brand in the
marketplace. Developing strategies for each Service Line, clearly defining
and identifying the existing and future core global Service Lines. Aligning
the global sub-Service Lines, integrating service delivery across global Service
Lines connecting and integrating Service Line, Industry and Account activities. 2.
Accounts, Industry & Business Development - Formulating Priority Accounts
strategy for the Member Firms of Ernst & Young Global focused on enhancing
Industry effectiveness, driving profitable revenue growth; Formulating Industry
Sector Strategy for the Member Firms of Ernst & Young Global focused on enhancing
Industry effectiveness, driving profitable revenue growth; Development of ASQ
strategy for the Member Firms of Ernst & Young Global. Policy enshrines a
common methodology and framework to measure the quality of services provided to
clients. 3. Knowledge Management and Sharing Driving the delivery of a globally
consistent knowledge strategy and plan to enable "our people", Service
Line, Sector, Account and Business Development priorities. Global knowledge enables
the delivery of strategic analysis and research, global competitive and market
intelligence analysis and reporting. 4. Marketing Supporting the Market
Leadership strategy for the Member Firms of Ernst & Young Global by enhancing
EY's reputation among key stakeholders. 5. Internal Communications Delivering
a global internal communications program that connects and engages the partners
and people of the Member Firms of Ernst & Young Global around their shared
cultural, strategic and organizational priorities. Provision of appropriate internal
communications programs and materials to support EY people in their client-facing
activities. 6. Public Relations Protecting and enhancing brand and reputation
of the Member Firms of Ernst & Young Global in collaboration with EYG leaders,
Global Industry and Service Line Leaders and with execution through and by Area/country
PR teams. Managing communication around sensitive media issues, including developing
messages etc. 7. Public Policy Working with regulators across multiple jurisdiction
to ensure the EY network is able to contribute to important decisions affecting
the way the profession is governed. 8. Quality and Risk Management Development
and supervision of common standards and policies for the EY network, including
strategies and programmes to embed quality and risk management throughout the
EY Global network, such as independence infrastructure, quality review programmes
and client and engagement acceptance and continuance policies and tools. Providing
practice manuals and other reference materials and otherwise assisting in the
adoption and consistent application of common standards and policies. 9. People Developing
and overseeing common programmes and policies for Resourcing (Recruiting and Mobility),
Learning and Development and People Infrastructure. This includes global people
surveys, strategic resourcing and recruiting, globally aligned Performance Management
and Development processes, partner development, etc. 10. Core Business Services Provision
of services in relation to Human Resources, Events Planning, Facilities Management,
IT Support, Information Distribution and Graphics Support. 11. Legal Advice
and strategic input on a wide range of competencies to support the EYG functions,
including regulatory, risk and crisis management; dispute resolution; project
management; regulatory matters; company and partnership law; financial and treasury
advice; and commercial and IP law. 12. Finance Developing and overseeing
common financial treasury, budgeting and accounting systems, practices and policies,
and providing advice and assistance in connection with such systems, practices
and policies. Providing value-added financial information and support to Global,
Area and country leaders, including in relation to supporting technology. Creating
policies for, and implementing, a common client invoicing and settlement procedure
by Member Firms. 13. Technology and Infrastructure Providing wide range
of technology applications and support services to the Member Firms, including
global data center support services. Centralized procurement of software licenses
from third party vendors, such as e-mail systems, computer security systems, voice
mail connectivity and internet services. Development and deployment of Global
applications and methodologies, including Global Financial Information System. 14.
Centralized Procurement Services Procuring on a global basis goods and services
that can be advantageously so procured, including credit facilities, health benefits,
and other financial services required by Member Firms or their employees. 7.1
In the course of hearing we have asked the learned counsel for the applicant to
explain various items in the form of a note and supporting documents to illustrate
the contents of each service. The learned counsel has accordingly filed a Paper
Book containing 89 pages. We shall refer to the clarifications given by the applicant
with reference to some of the services. 2. Accounts, Industry and Business
Development. Re: Priority accounts: para 2.1 o An overall key account framework
and plan from EY Global, o Visits by Global account leaders to India subsidiaries
and affiliates, o Templates/frameworks on accounts planning and development.
Best practices in approaching these large MNCs as a Global firm. Re: Industries
and Business Development: Para 2.2 Global formulates plans for achieving higher
profitability and thought leadership, while Area works in liaison with the member
firm to get the plans implemented. The various services rendered are as under: o
Relationship, knowledge and Credentials support in pursuits/proposals to large
clients, o Service frameworks pertaining to the focus sectors. Re: Assessment
of Service Quality (ASQ) - para 2.3 This contemplates provision of common methodologies
and framework for quality services to be provided to the clients and Area, in
liaison with the member firms. The same gets implemented at Area level. Written
questionnaires and interviews are used for this exercise. The support received
from Global is in terms of a Global policy that drives the survey process including
questionnaires, assessment templates to be used. ASQ is a Global framework
and is used to determine the level of satisfaction of services provided by EY
to its clients. 13. Technology and Infrastructure 13.1 Providing wide range
of technology applications and support services to the Member Firms, including
global data center support services. 13.2 Centralised procurement of software
licences from third party vendors, such as email systems, computer security systems,
voice mail connectivity and internet services. 13.3 Development and deployment
of Global applications and methodologies, including Global Financial Information
System. 13.4 Maintaining Global datacenters. Under this clause, various
types of software, e.g., centrally hosted application service (CHAS), Global Mail
Template, Global Systems Management Server, Internet mail service, Global corporate
data base, Service Offering Reference Tool (SORT), Global TAS Templates etc. are
provided to the member entities. It is stated that the service provider, namely,
EMEIA sources common technology and application systems referred to above and
allow all the member firms including the Applicant to use the same. No technology
is made available. All member firms are allowed to use it in a uniform manner.
Sample screen shorts of the various applications and support services received
from time to time are placed on record. 3. Knowledge Management and Sharing The
various services rendered are : Analysis on focus markets, competitive intelligence
within a particular sector /country. The purpose of above services is stated
to be to respond better to moves from competitors and stay better informed on
the sectors and to provide higher quality service to clients. 8. First of all,
some of the services enumerated above have the flavour of management services.
Services of managerial nature are not included within Article 13 unlike many other
treaties. Only technical and consultancy services are included. Many of them do
answer that description. However, the more important question is whether EMEIA,
U.K. has made available to the applicant any technical knowledge, experience,
skills or know-how by providing the 'support services' noted above. In our view,
that question admits only of an answer in the negative. What all is provided by
EMEIA is informations on various business and commercial matters, guidelines,
templates, best practices and strategies that could be adopted in various spheres
of their business which ultimately lead to protection of EY image and client relations.
Dissemination of informations, furnishing guidelines and suggesting plans of action
aimed at uniformity and seamless quality in business dealings of participating
group entities do not per se amount to making available to them technical knowledge
and experience possessed by EMEIA to a substantial extent. There is no transfer
of technical know-how in that process nor can it be said that the recipient of
these coordinated/centralized services has been enabled to apply the technology
which EMEIA is possessed of. In fact, EMEIA has not developed any technology of
its own nor does it innovate anything. 9. In the light of above discussion,
the questions are answered as follows: Both the questions are answered in the
negative and it is ruled that the amounts receivable by Ernst and Young EMEIA
Services Ltd. from the applicant under the Agreement are not liable to be taxed
under the Income Tax Act as fee for 'included services' or as business profits,
having regard to the provisions of DTAA between India and UK. However, the Income-tax
authorities are not precluded from making inquiry into the question whether the
cost contribution is fixed on arm's length basis and such determination can be
made in the assessment proceeding of the applicant. Accordingly, ruling is
given and pronounced on this the 19th day of March 2010. AAR-India-USA DTAA
- Applicant proposes to enter into agreement with non-resident for architectural
design services - Article 12.4 - At every stage, starting from conceptual stage
till construction, applicant looks for services and expert's advice - it is not
a sale of design - payments liable to tax in India Applicant is a real estate
company. It proposes to construct an international quality commercial office/hotel
complex in Gurgaon. The applicant enters into an Agreement with a non-resident
limited partnership for provision of Architectural design services. The agreement
also provides for appointment of a local Architect as associate Architect - Whether
the payments made to non-resident are for outright sale of designs. whether the
payments are fees for included services. Whether the payments made to the associated
artichect but received by the second party in the agreement is taxable as per
Article 12.4 in India. Facts of the case As per agreement, the Payments
to the local associate Architect are to be made separately and are not under consideration
in the application. As per the agreement, both, HOK - the Architect and RSP -
the Associate Architect, have been retained "to work jointly and on a cooperative
basis in order to perform the entire design, construction documents and construction
administration for the Project, each responsible for its share of work but jointly
responsible in providing the entire design, construction documents and construction
administration service necessary to complete the Project. There is also a provision
for rendering additional services not otherwise included in the Agreement or not
customarily furnished as per the prevailing architectural practices. For such
additional services, additional payment has to be made according to an agreed
formula. Reimbursable expenses are also specified in the Agreement. Applicant
seeks advance rulings on (a) Whether consideration payable for sale of designs
is taxable under the DTAA in view of the fact that the US entity has no permanent
establishment in India? (b) Whether payment of fees for technical advisory
services to HMS/Indian Associate Architects during the Phase-2 of the Project
is taxable under the Art.12(4) of the Treaty even though it is to be excluded
from "included services" under Art.12(5)(a) of the Treaty? (c) Whether
fees for supervisory/advisory services during the Construction Administration
phase is taxable under Art. 12(4) of the Treaty and, if so, would such fees attract
tax at the rate of ten per cent as prescribed in S.115A of the Act?" d)
Whether reimbursement of expenses actually incurred by the US entity without any
mark up is subject to provisions of section 195 of the Act? Having heard the
parties the Authority has held that, " At every stage starting from the
conceptual stage till construction, the applicant looks for the services and expert
advice of HOK. HOK acts in close collaboration with the Owner (applicant), the
associate Architect and the Consultant. Bi-weekly meetings through teleconferencing
are regularly held. The applicant's role in the project is all-pervasive. The
applicant does not go out of picture once the so-called sale of drawings and designs
take place nor can it be said on a reasonable basis that everything else done
or performed by HOK is merely incidental or subordinate to the transfer of plans,
drawings and designs. " The fact that there is separate specification
of price for convenience of payments and adhering to schedules or that a major
portion of the amount is payable at the design development stage is not conclusive.
having regard to the scope, objective and predominant features of the Agreement,
the HOK must be said to have received payment ('compensation') in the nature of
FTS or included services within the meaning of clause (b) of Article 12.4 of the
Treaty, irrespective of whether 'royalty' clause is attracted or not. "
The remittances to HOK for the purpose of making payments to Consultants under
the Agreement can also fall under Article 12(4) (b) as they also render architectural
services. However, since HOK is not the beneficiary of the said payments and they
are to be passed on to the consultant in USA for the services rendered outside
India such payments will not attract tax liability under the Income-tax Act in
India. " But, it is made clear that the actual payments made to the consultant
can be verified by the department and, if any, adverse material comes to light,
appropriate steps according to law can be taken. On the facts presented by the
applicant, AAR held that the receipts by HOK on account of consultancy fee payable
to consultants in USA on actual basis will not give rise to taxable income in
India. So also, the payments made towards the other reimbursable expenses cannot
be considered to be income falling under Article 12. However, they are also subject
to verification. ------------------------------- IN THE AUTHORITY FOR ADVANCE
RULINGS (INCOME TAX), NEW DELHI A.A.R. No. 832 of 2009 Name & address
of the applicant HMS REAL ESTATE PVT LTD 1A-D, Vandhna Building, 11, Tolstoy
Marg, Delhi-110001 Commissioner Concerned Commissioner of Income-tax-I Delhi Present
for the applicant Mr. S.D. Kapila, Advocate Mr. R.R. Maurya, Advocate Mr.
Sanjiv Gupta (HMS Real Estate) Mr. Amit Jain, Project Accoutant Mr. Vijay
Mathur, Admn. MPCO. Present for the Department - P V Reddi, Chairman And
J Khosla, Member Dated : March 18, 2010 Income tax - Sec 195, 9(1)(vi) &
(vii) - India-USA DTAA - Article 12 - Applicant is a real estate company - proposes
to construct an international quality commercial office/hotel complex in Gurgaon
- enters into an Agreement with a non-resident limited partnership for provision
of Architectural design services - agreement also provides for appointment of
a local Architect as associate Architect - Whether the payments made to non-resident
are for outright sale of designs - whether the payments are fees for included
services - whether the payments made to the associated artichect but received
by the second party in the agreement is taxable as per Article 12.4 in India As
per agreement, the Payments to the local associate Architect are to be made separately
and are not under consideration in the application. As per the agreement, both,
HOK - the Architect and RSP - the Associate Architect, have been retained "to
work jointly and on a cooperative basis in order to perform the entire design,
construction documents and construction administration for the Project, each responsible
for its share of work but jointly responsible in providing the entire design,
construction documents and construction administration service necessary to complete
the Project. There is also a provision for rendering additional services not otherwise
included in the Agreement or not customarily furnished as per the prevailing architectural
practices. For such additional services, additional payment has to be made according
to an agreed formula. Reimbursable expenses are also specified in the Agreement. Applicant
seeks advance rulings on (a) Whether consideration payable for sale of designs
is taxable under the DTAA in view of the fact that the US entity has no permanent
establishment in India? (b) Whether payment of fees for technical advisory
services to HMS/Indian Associate Architects during the Phase-2 of the Project
is taxable under the Art.12(4) of the Treaty even though it is to be excluded
from "included services" under Art.12(5)(a) of the Treaty? (c) Whether
fees for supervisory/advisory services during the Construction Administration
phase is taxable under Art. 12(4) of the Treaty and, if so, would such fees attract
tax at the rate of ten per cent as prescribed in S.115A of the Act?" d)
Whether reimbursement of expenses actually incurred by the US entity without any
mark up is subject to provisions of section 195 of the Act? Having heard the
parties the Authority has held that, ++ At every stage starting from the conceptual
stage till construction, the applicant looks for the services and expert advice
of HOK. HOK acts in close collaboration with the Owner (applicant), the associate
Architect and the Consultant. Bi-weekly meetings through teleconferencing are
regularly held. The applicant's role in the project is all-pervasive. The applicant
does not go out of picture once the so-called sale of drawings and designs take
place nor can it be said on a reasonable basis that everything else done or performed
by HOK is merely incidental or subordinate to the transfer of plans, drawings
and designs. ++ The fact that there is separate specification of price for
convenience of payments and adhering to schedules or that a major portion of the
amount is payable at the design development stage is not conclusive. having regard
to the scope, objective and predominant features of the Agreement, the HOK must
be said to have received payment ('compensation') in the nature of FTS or included
services within the meaning of clause (b) of Article 12.4 of the Treaty, irrespective
of whether 'royalty' clause is attracted or not. ++ The remittances to HOK
for the purpose of making payments to Consultants under the Agreement can also
fall under Article 12(4) (b) as they also render architectural services. However,
since HOK is not the beneficiary of the said payments and they are to be passed
on to the consultant in USA for the services rendered outside India such payments
will not attract tax liability under the Income-tax Act in India. ++ But,
it is made clear that the actual payments made to the consultant can be verified
by the department and, if any, adverse material comes to light, appropriate steps
according to law can be taken. On the facts presented by the applicant, AAR held
that the receipts by HOK on account of consultancy fee payable to consultants
in USA on actual basis will not give rise to taxable income in India. So also,
the payments made towards the other reimbursable expenses cannot be considered
to be income falling under Article 12. However, they are also subject to verification. RULING 1.
In this application under Section 245Q(1), the applicant seeks advance ruling
on the following three questions: 1. Whether the compensation payable to Hellmuth,
Obata + Kassabaum L.P., USA under clause VA of the Agreement dated October 15,
2008 can be disintegrated in three parts; viz., (a) for development and sale of
designs (b) consultancy for construction documents, and, (c) for 'Construction
administration' and 'additional services'? 2. If the answer to Question No.1
is in the affirmative:- (a) Whether consideration payable for sale of designs
is taxable under the D.T.A.A. with USA (the Treaty) in view of the fact that the
US entity has no permanent establishment in India? (b) Whether payment of fees
for technical advisory services to HMS/Indian Associate Architects during the
Phase-2 of the Project (Construction Document) is taxable under the Art.12(4)
of the Treaty even though it is to be excluded from "included services"
under Art.12(5)(a) of the Treaty? (c) Whether fees for supervisory/advisory
services during the Construction Administration phase is taxable under Art. 12(4)
of the Treaty and, if so, would such fees attract tax at the rate of ten per cent
as prescribed in S.115A of the Act?" 3. Whether reimbursement of expenses
actually incurred by the US entity without any mark up is subject to provisions
of section 195 of the Act? Question No. 2 has been recast by the applicant
after 1st hearing. 2. The applicant is an Indian company engaged in the business
of development and management of commercial real estate. The applicant proposes
to construct an international quality commercial office/hotel complex in Gurgaon.
For this purpose, it has entered into an Agreement on 15th Nov. 2008 with Hellmuth,
Obata + Kassabaum L.P.(HOK) a limited partnership which is a resident of USA,
for provision of Architectural design services. The agreement also provides for
appointment of a local Architect as associate Architect. Accordingly, M/s RSP
Architects Planners and Engineers Pvt. Ltd. (RSP) has been appointed as 'Associate
Architect'. Payments to the local associate Architect are to be made separately
and are not under consideration in the application. As per the agreement, both,
HOK-the Architect and RSP-the Associate Architect, have been retained "to
work jointly and on a cooperative basis in order to perform the entire design,
construction documents and construction administration for the Project, each responsible
for its share of work but jointly responsible in providing the entire design,
construction documents and construction administration service necessary to complete
the Project". 2.1. Under the head "Scope and Description of Services"
- 'Design Services', the obligations of Architect are stated as follows: 1.
The Architect will participate with and assist the Owner, as required, in developing
and refining the general Project concept for the Project described in Exhibit
A. The Architect will develop a detailed program for the Project based on in-depth
interviews with the Owner and other parties designated by the Owner. The Architect
shall review with the Owner, as requested, alternative approaches to design and
construction of the Project and will prepare such schematic or conceptual drawings
as may be required. 2. After the owner has approved the general Project concept
and Project program, the Architect shall prepare, for review and approval by the
Owner, design development drawings and outline specifications adequate for obtaining
preliminary cost and price estimates, and assist the Associate Architect in developing
a set of construction drawings and specifications, which are adequate for complete
pricing and construction of the Project as required ("Contract Documents"). 3.
Upon completion of the construction drawings and specifications by the Associate
Architect, and prior to submitting such documents to the Owner for issuance to
contractors for prices and construction, the Architect review each such final
construction drawing and specification with all other drawings and specifications
for consistency with the approved design embodied in the Design Development documents,
completeness and to avoid errors and omissions. 4. The Architect shall cooperate
with the Associate Architect in obtaining approval of governmental authorities
having jurisdiction over the Project and also assist him to ensure that the Contract
Documents shall conform to applicable restrictions, laws, and regulations in effect.
The Contract Documents shall consist of all necessary drawings, details, plans,
elevations, sections, and schedules, dimensioned, noted, and coordinated, as well
as specifications, and the Associate Architect shall seal and sign the drawings
and specifications as the architect of record. 5. The Architect shall assist
the Associate Architect and Owner in the preparation of any necessary bidding
information, and any forms of agreement between the general contractor and the
sub-contractors for the Project. 2.2. The architect's basic services are classified
broadly into 6 heads: (a) Master plan/Concept design (b) Schematic design (c)
Design development phase in which design is finalized after reviewing the detailed
design prepared by the local design consultants (d) Construction document phase
wherein the architect will provide coordination and drawing review with the associate
architect, preparation of designs sketches to clarify design intent and review
of specifications for design content. (e) Bidding and contract selection process (f)
Construction phase : (i) key selected shop drawings prepared by the associate
architects; (ii) consultation and site visits; (iii) review and evaluation
of cost saving proposals submitted upto start of construction of the contractor. 2.3.
There is also a provision for rendering additional services not otherwise included
in the Agreement or not customarily furnished as per the prevailing architectural
practices. For such additional services, additional payment has to be made according
to an agreed formula. Reimbursable expenses are also specified in the Agreement. 3.
The above scope of work under the Agreement has been summarized by the applicant
as follows : a) Development of program and master plan concept Design; ]b)
Development of Schematic design concepts; c) Preparation of Design Development
drawings; d) Coordination and drawing review of documents; e) Assisting
the owner in bidding and contractor selection process; f) Observing construction
progress; g) Review of cost saving and alternative proposals; and h) Additional
services as may be required. 3.1. In respect of the above items of work, HOK
is entitled to a fixed fee (net of taxes) as per cl V of the Agreement on submission
of monthly invoices and the fee will be received by HOK in US dollars outside
India. It is pointed out that items (a) to (c) above which broadly fall under
the first phase lead to finalization of designs and drawings. Item (d) which relates
to construction documents is the second stage. Items (e) to (g), it is stated,
comes under the third stage i.e. technical consultancy and supervisory services.
It is conceded by the learned counsel for the applicant that as far as the payments
received by HOK in the third stage during construction are liable to be taxed
as 'FTS' ('fees for technical services'). 3.2. The Agreement contemplates the
retention by the Architect of consultants specialized in various fields who shall
participate in the design of project. The selection of consultants by the architect
is subject to the approval of the owner. Cl VII B provides : "the architect
shall be responsible for contracting with the international or US based consultants
and shall coordinate all design activities of said consultants. Compensation for
the professional services rendered by each of the consultants shall be paid directly
to each consultant of the architect." It is stated that the consultants in
US have been engaged in terms of this clause. 3.3. Clause V deals with 'Compensation'
which is nothing but fee payable to the Architect. It is stipulated that the architect
shall receive as compensation for all basic services the fixed price sum (excluding
local taxes) of 2,114,000 US dollars based on a building size of 1,300,000 sq.ft.
payable in response to monthly invoices based upon the amount of basic services
and additional services. The counsel for the applicant has clarified that the
applicant has to bear the taxes and pay TDS. The break-up of the stipulated fee
of 2,114,000 US dollars is given as follows : Project Phase Amount in USD (Original
Agreement) Master/Concept Design 275,000 Schematic Design 449,000 Design
Development 542,000 Construction Document 375,000 Construction Administration
473,000 Total 2,114,000 3.4. As per the amendment to the Agreement, a further
amount of Rs.1,508,000 is payable at various stages which is by way of reimbursement
of 'compensation' payable to the consultants in USA. Thus, the total consideration
payable under the contract is 3,622,000. The applicant states that the aforesaid
functions except construction administration are performed from outside India.
The designs and drawings are transferred electronically to the applicant and ownership
therein vests in the applicant. Development of designs is carried out by means
of bi-weekly teleconferencing and video conferencing. For the purpose of developing
the designs, HOK will engage specialist consultants outside India. After the delivery
of designs, the preparation of detailed construction documents will take place
in India by the Indian Architect in consultation with HOK. HOK, it is stated,
will provide advisory for preparation of construction documents. 3.5. It is
stated that the employees of HOK have come to India for a maximum period of 50
days for providing supervisory services. The applicant states that the completion
of the project is likely to take three years. 3.6. In the course of hearing,
the applicant furnished an Event Summary Chart starting from October 2008 in which
the details of visits of HOK personnel are set out. It is mentioned therein that
the schematic design and design development work has already been completed. The
applicant has also furnished a note on certain aspects relating to preparation
of Designs and Delivery. 4. The case of the applicant as set out in Annexure-II
is as follows : "The designs and drawings developed by the non resident
recipient are sold to applicant; therefore the receipts arising to the non-resident
are in the nature of business profits. Since, the recipient does not have any
permanent establishment in India, the receipts cannot be taxed as business profits.
The receipts also are not taxable as 'royalty' as defined in section 9(1)(vi)
of the Income-tax Act, 1961 and also under Article 13 of Indo-US DTAA as the said
transaction involves outright sale of designs and the property in these goods
vest in the applicant. This sum is also not taxable as 'fee for technical services'
in terms of section 9(1)(vii)(b) of the Income-tax Ac, 1961 for the reason that
the recipient has used its technical expertise for preparing and selling chattels,
which are designs. This being a case of sale, there could be no question of transfer
of use or right to use any plant or equipment." 4.1. Learned counsel for
the applicant has reiterated the stand taken in the application. It is contended
that the Agreement can be disintegrated into three parts; (a) for development
and sale of designs (b) consultancy for construction documents and (c) 'Construction
administration' and 'Additional services'. It is submitted that separate price
is identified for each of these items and activities. If so viewed, only the payment
received at the stage of construction administration in relation to services which
are basically performed in India during the phase of construction are liable to
be taxed as fees for included services at the percentage of rate provided for
in Section 115A(1)(b)/BB of the IT Act, according to the counsel. The learned
counsel for the applicant has strenuously contended that if the contract has to
be viewed as a composite one without disintegrating it, the dominant nature and
object of the contract has to be looked into. If so, it is nothing but outright
sale of designs and technical documents delivered through website from outside
India and on such delivery, the applicant becomes the owner as the entirety of
rights over those designs have been conveyed to the applicant. Therefore it is
submitted that the payments made to HOK (excepting those at the 'construction
administration phase') do not fall within the definition of royalty under Art.12(3)(a)
of the India-US DTAA. For the same reason, it is submitted that they do not fall
under 'fees for included (technical) services' within the meaning of Art.12(4)
of the India-US DTAA. Even if they are treated as 'business profits accruing or
arising in India, the same cannot be subjected to tax under the Income-tax Act,
1961 in the absence of Permanent Establishment(PE), having regard to the Treaty
provision in Art.7(1). As the number of days of presence of HOK employees in India
will be much less than the prescribed number of days, a service PE cannot be inferred,
submits the counsel. 4.2. The applicant's counsel has in particular drawn our
attention to Clause VIII of the Agreement which bears the heading "Copyright
Assignment and Ownership of Documents". "Architect hereby acknowledges
and confirms the intention of Architect to convey all right, title and interest
it may have in and to all drawings, specifications, models, renderings and work
product, excluding the Preexisting Materials, prepared in connection with the
Project ("Products of Service"), including, without limitation, the
copyrights and any copyright registrations issued therefor, to Owner. Architect
does hereby sell, assign and transfer of owner, its successors, assigns and legal
representatives, for the United States of America and throughout the world, all
right, title and interest it may have in and to the Products of Service, including
the copyrights and any copy right registrations issued therefor, the rights to
prepare derivative works, the right to apply for copyright registration and future
renewals or extensions of copyright terms, and the right to sue for copyright
infringement, whether occurring in the past, present or future." 4.3.
The last para of the same clause provides that on termination of the Agreement
by the owner or on payment by owner to the Architect of all sums due, all drawings,
specifications, models and work product prepared in connection with the project
shall become the property of the owner. "Nevertheless, it is understood by
the owner that all such drawings etc. may be in appropriate for use in any other
project." Reference has also been made to Clause XIX which says that Architect
shall not use or disclose confidential information without owner's prior written
approval. 5. Before proceeding further, we may refer to Art.12 of the Tax Treaty
(DTAA). Article 12 - Royalties and fees for included services 1. Royalties
and fees for included services arising in a Contracting State and paid to a resident
of the other Contracting State may be taxed in that other State. 2. However,
such royalties and fees for included services may also be taxed in the Contracting
State in which they arise and according to the laws of that State, but if the
beneficial owner of the royalties or fees for included services is a resident
of the other Contracting State, the tax so charged shall not exceed: (a) in
the case of royalties referred to in sub-paragraph (a) of paragraph 3 and fees
for included services as defined in this Article [other than services described
in sub-paragraph (b) of this paragraph]: (i) during the first five taxable
years for which this Convention has effect, xx xx xx xx xx (ii) during the
subsequent years, 15 per cent of the gross amount of royalties or fees for included
services; and (b) in the case of royalties referred to in sub-para (b) of paragraph
3 and fees for included services as defined in this Article that are ancillary
and subsidiary to the enjoyment of the property for which payment is received
under paragraph 3(b) of this Article, 10 per cent of the gross amount of the royalties
or fees for included services. 3. The term "royalties" as used in
this Article means: (a) payments of any kind received as a consideration for
the use of, or the right to use, any copyright of a literary, artistic, or scientific
work, including cinematograph films or work on film, tape or other means of reproduction
for use in connection with radio or television broadcasting, any patent, trade
mark, design or model, plan secret formula or process, or for information concerning
industrial, commercial or scientific experience, including gains derived from
the alienation of any such right or property which are contingent on the productivity,
use or disposition thereof; and (b) payments of any kind received as consideration
for the use of, or the right to use, any industrial, commercial or scientific
equipment other than payments derived by an enterprise described in paragraph
1 of Article 8 (Shipping and Air Transport) from activities described in paragraph
2 (c ) or 3 of Article 8. 4. For the purposes of this Article, "fees for
included services" means payments of any kind to any person in consideration
for the rendering of any technical or consultancy services (including through
the provision of services of technical or other personnel) if such services:
(a)
are ancillary and subsidiary to the application or enjoyment of the right, property
or information for which a payment described in paragraph 3 is received; or (b)
make available technical knowledge, experience, skill, know-how, or processes,
or consist of the development and transfer of a technical plan or technical design. 6.
As noted earlier, the learned counsel for the petitioner submits that HOK has
sold the designs and the property including copyright has wholly passed to the
applicant and, therefore, it cannot be said that the consideration has been paid
to HOK for permitting the use or right to use the design, model or plan. It is
pointed out that once the designs and drawings relating to the project are delivered
to the applicant by posting them on the project Web through the 'servers' located
in USA the applicant becomes the absolute owner thereof and the HOK is barred
for making use of them for its own purpose. The payment for the designs etc. is
received once and for all and the payment is not contingent on the productivity
use or further alienation thereof as contemplated in the second part of clause
(a) of Article 12(3). 7. We are unable to appreciate the contention of the
learned counsel for the applicant that on the basis of clause VIII of the Agreement
conveying the right, title and interest the Architect has in the drawings, specifications,
models and work product (which are described as 'products of services'), the transaction
has to be regarded as one of sale of designs. The Agreement cannot be read in
isolation and the components of the contract cannot be placed in water-tight components.
The agreement shall be read as a whole. The approach should be to ascertain what
is the true scope and dominant object of the contract. One should take stock of
the predominant features of the contract. The learned counsel for the applicant,
in fact, does not suggest that a different approach has to be adopted. We have
to take a holistic view in considering the agreement without being carried away
by the apparent tenor of some of the clauses in the Agreement. For instance, clause
(VIII) on which utmost reliance is placed shall be considered in the context of
and in conformity with the spirit of the entire Agreement. Viewed from that angle,
can it be said, as the applicant seeks to contend, that the crux and substance
of the contract is the sale of designs and drawings and the basic services enumerated
in the Agreement are only incidental to the sale or the inference should be the
other way i.e. the transfer of designs being part of a package of architectural
services undertaken by HOK under the contract? We are inclined to think that the
reasonable view to take, on an appreciation of the Agreement in its entirety,
is to adopt and affirm the second line of approach indicated above. By taking
the view that the essence of the transaction is the sale of designs, models and
plans and everything else is incidental thereto is to distort and stultify the
true nature and dominant purpose of the contract. The Agreement is in reality
nothing different from what is described in the opening sentence i.e. "design
and consultancy services". The Architect while performing such services,
will participate with and assist the owner "in developing and refining the
general project concept. The architect will develop the detailed programme for
the project based on in depth interviews with the Owner and others". We have
already referred to the various responsibilities to be discharged and the steps
to be taken by the Architect which are detailed in clause IV. At every stage starting
from the conceptual stage till construction, the applicant looks for the services
and expert advice of HOK. HOK acts in close collaboration with the Owner (applicant),
the associate Architect and the Consultant. Bi-weekly meetings through teleconferencing
are regularly held. The applicant's role in the project is all-pervasive. The
applicant does not go out of picture once the so-called sale of drawings and designs
take place nor can it be said on a reasonable basis that everything else done
or performed by HOK is merely incidental or subordinate to the transfer of plans,
drawings and designs. The fact that there is separate specification of price for
convenience of payments and adhering to schedules or that a major portion of the
amount is payable at the design development stage is not conclusive. We are of
the view that having regard to the scope, objective and predominant features of
the Agreement, the HOK must be said to have received payment ('compensation')
in the nature of FTS or included services within the meaning of clause (b) of
Article 12.4 of the Treaty, irrespective of whether 'royalty' clause is attracted
or not. In this context, we may refer to the relevant comments in the Memorandum
of Understanding concerning fees for included services under Article 12 which
is arrived at between the Goverments of India and USA on 15th May, 1989. It is
stated that typical categories of services that generally involve either the development
and transfer of technical plans or technical designs or making technology available
as described in para 4(b), include architectural services. The scope of 4(b) of
Article 12 has been explained, thus: "This category is narrower than the
category described in paragraph 4(a) because it excludes any service that does
not make technology available to the person acquiring the service. Generally speaking,
technology will be considered "made available" when the person acquiring
the service is enabled to apply the technology. The fact that the provision of
the service may require technical input by the person providing the service does
not per se mean that technical knowledge, skills, etc., are made available to
the person purchasing the service, within the meaning of paragraph (b). Similarly,
the use of a product which embodies technology shall not per se be considered
to make the technology available." 7.1. It is significant to note that
the latter part of clause (b) of para 4 speaks of "development and transfer
of a technical plan or technical design. This limb of clause (b) is squarely attracted
to the present case because technical services rendered by HOK resulted in the
development and transfer of technical plan and design to the applicant. If an
out-right transfer of a design or plan for consideration has to be treated as
an independent transaction unrelated to the services, the scope of latter part
of clause (b) will be considerably diluted and the very purpose for which the
said words were included in the definition of FTS will be defeated. In one sense,
there could a transfer of designs and in another sense the development and transfer
of technical plan/design can be viewed as a sequel to and integral part of the
services undertaken by HOK. In the present case, clause (b) of para 4 is attracted
having regard to the true nature and purport of the Agreement. The architectural
services rendered by HOK can also be brought within the fold of the first part
of clause (b) starting with the expression "make available". However,
it is unnecessary to express a final view in the matter. We would also not like
to express an opinion on the question whether the consideration attributable to
the transfer of designs and plans can be brought within the scope of the clause
- "payment received for information concerning industrial, commercial or
scientific experience" occurring in the definition of 'royalty' vide Article
12.3(a). According to the OECD commentary, this term alludes to the concept of
know-how and information that is not publicly available. The fact that there was
sale of designs may not preclude the application of this limb of 'royalty' definition.
Suffice it to say that it is a moot point and it is unnecessary for us to express
a view on this aspect. 8. We are, therefore, of the view that basic(design)
services which include preparation of Master Plan, concept design, schematic design,
design development and construction documents, assistance in bidding and contractors'
selection process and consultancy during construction phase are all part of architectural
services undertaken the HOK as per the Agreement and the payment received by HOK
for furnishing all these documents and services to the applicant fall appropriately
within the meaning of 'fees for included services' under Article 12.4(b) of the
India-US Treaty. They cannot be disintegrated and viewed in water-tight compartments.
We reject the contention of the applicant that the payments attributable to the
sale of designs, plans and other construction documents cannot be subjected to
tax in India as they do not fall within the purview of Article 12 of the Treaty. 9.
The learned counsel for the applicant has relied on the decision of Division Bench
of Calcutta High Court in CIT vs. Davy Ashmore India Ltd 190 ITR 626 .That was
a case in which the assessee arranged for the import of concept designs and drawings
from U.K. on the strength of import licence for the purpose of enabling the purchaser
to make use of them in the preparation of detailed manufacturing drawings. The
question arose whether the payment made to the foreign company which supplied
the designs was 'royalty' and to be taxed under the Income-tax Act, 1961. The
learned judges held that it was a case of sale and no royalty was generated. The
following passage is relevant: "Having regard to the facts and circumstances
of this case, it must be held that the present case is not a case where the non-resident
is retaining the property in the designs and drawings. Such designs and drawings
are imported under the import policy and with the approval of the Reserve Bank
of India on the basis of the letter of intent. The importation of the designs
and drawings postulates an out and out transfer or sale of such designs and drawings
and the non-resident company does not retain any property in them leaving the
grantee to use or exploit them. The consideration paid for transfer, therefore,
cannot be treated as royalty falling under article XIII of the Agreement for Avoidance
of Double Taxation between India and the U.K. The consideration paid is for an
outright transfer of the drawings and designs by the non-resident company and
such consideration cannot be termed as royalty." 9.1. That case is distinguishable
for more than one reason. Firstly, whether the payment was within the scope of
'fees for technical services' was not considered. Secondly, that was not a case
of rendering any service. Out-right transfer of drawings and designs which were
required by the Purchaser for the purpose of preparing detailed manufacturing
drawings of Cold Rolling Mill was involved in that case. It was a stand alone
transaction unconnected with any service. Moreover, it does not appear to be a
case of tailor-made designs and drawings. Those which were available with U.K.
company were sold out to the Indian buyer. 10. The learned counsel for the
applicant has also drawn our attention to a recent ruling of this Authority in
International Tyre Engineering Resources. In re: reported in 319 ITR 228. Reliance
is placed on para 15 in which the item relating to transfer of ownership of tread
and side-wall design was considered. It was held that the ownership therein having
been transferred absolutely to CEAT Ltd., the consideration paid cannot be brought
within the scope of Article 12.3 of the Treaty. 10.1. In that case the transfer
of know-how of technology for the manufacture of radial tyres and the transfer
of ownership of tread and side wall design were dealt with separately in the Agreement.
The tread and side wall design was distinct from that part of the agreement which
related to transfer of know-how. It was specifically observed in para 15 that
this part of the transaction cannot be viewed to be merely incidental to the conferment
of right to use the know-how granted under clause (2) of the Agreement. Therefore,
the factual position was different in that case. On the other hand, the contention
that even in respect of first part of the agreement (i.e transfer of technical
know-how), there was sale of technical documentation and such sale having taken
place outside India was not liable to be taxed under the Income-tax Act was rejected.
The following observations in para 9.1. are pertinent: "Assuming that
there was sale of technical documentation, that is not the end of the matter.
Such sale is, in reality and in substance, incidental to the grant of right to
use the know- how in various ways specified in clause 2.1. The transfer of technical
documentation was only a step in aid for making the technical know-how available
to the transferee CEAT." 10.2. This reasoning is equally applicable here.
The said ruling far from supporting the applicant's case, goes against the applicant's
contention. 11. There is one more point to be considered i.e. about the payments
made to consultants in USA. The remittances to HOK for the purpose of making payments
to Consultants under the Agreement can also fall under Article 12(4) (b) as they
also render architectural services. However, since HOK is not the beneficiary
of the said payments and they are to be passed on to the consultant in USA for
the services rendered outside India such payments will not attract tax liability
under the Income-tax Act in India. But, it is made clear that the actual payments
made to the consultant can be verified by the department and, if any, adverse
material comes to light, appropriate steps according to law can be taken. On the
facts presented by the applicant, we must hold that the receipts by HOK on account
of consultancy fee payable to consultants in USA on actual basis will not give
rise to taxable income in India. So also, the payments made towards the other
reimbursable expenses cannot be considered to be income falling under Article
12. However, they are also subject to verification. 12. In the result, the
questions are answered as follows: Question No.1 This question is too general
in nature. However, it is answered by stating that the Agreement is to be viewed
as a whole and the three components of the contract (referred to in the question)
cannot be considered in water-tight compartments. Question No.2: The preface
to the question - "if the answer to question no. 1 is in the affirmative"
is deleted as it would be inappropriate. Paras (a), (b) and (c) of the question
no.2 are answered together as follows: The entire consideration receivable
by HOK from the applicant is liable to be taxed in India 'as fees for included
services' as per Article 12.4 of the Tax Treaty. However, as stated in para 11,
the amount payable as consultancy fees to the consultants in USA has to be excluded
while computing the chargeable income. As regards the payment of fees for technical
advisory services at the construction document stage, it cannot be considered
to be ancillary and subsidiary to the sale of property and, therefore, does not
get excluded from para 4 of Article 12 by virtue of clause (a) of Article 12.5
of Treaty. As regards payment for "additional services" to HOK, no view
is expressed as the details thereof are not available. The rate of 10 per cent
as per Section 115A(1)(b)(BB) is applicable in regard to the taxation of income
arising from fees for technical/included services as the said rate is less than
the rate specified in the Treaty. Question No.3: The question is answered
in the affirmative. The payment of amounts to the Architect - HOK by way of reimbursement
of expenses actually incurred by it does not constitute chargeable income and
withholding tax under section 195 is not necessary. Accordingly, ruling is
given and pronounced on this the 18th day of March 2010.
Policy
Circular No. 26/2009-14 Dated: 17th March 2010
Subject:
Import of Ships (Vessels) & other moveable capital goods etc. if imported
under SFIS Scheme of FTP and their installation, clarification thereof.
Attention
is invited to SFIS Scheme under the FTP 2004-09 & current FTP 2009-14. Trade
and Industry has represented that some Customs Authorities are seeking 'Installation
Certificate' from the ship owners, and since the import item is a Ship (a moveable
capital asset/good), there appears to be some confusion in the minds of Customs
Authority (Particularly at Mumbai Sea Ports & Kakinada Sea Port) in this regard,
on account of which Customs has stopped allowing use of SFIS for payment of duties
on import of ships by the service providers.
2.
The matter has been examined in detail. It is clarified that: The provision
relating to disallowing import of 'Vehicle' was introduced in FTP RE2006 (Updated
as on 7.4.2006) and applies to SFIS duty credits scrips issued on Foreign Exchange
earned during 2005-06 and thereafter, implying that there is no such stipulation
for SFIS duty credits scrips issued for Foreign Exchange earned prior to 2005-06
period under the FTP. The intention of this provision is to protect the domestic
sector industry of 'motor cars, sports utility vehicles and the likes' and thereby
disallows such imports only under SFIS Scheme. Ships cannot be treated as
'vehicle'. Hence, it is clarified that the import of Ships, a capital good for
Shipping Sector, is permitted under the scheme. Upon imports, Ships are registered
with the Director General of Shipping (or Mercantile Marine Board, as the case
may be) and only then these vessels are treated as 'Indian Flag vessels'. Ships
are moveable capital assets; hence these cannot be installed at one particular
location. Thus, the requirement of 'installation certificate' cannot be insisted
upon, for such moveable capital assets /goods. Customs Authorities are accordingly
not to insist on the 'installation certificate' for moveable capital assets /goods,
if imported under the SFIS scheme.
3.
This clarification regarding non-requirement of installation certificate shall
also apply to EPCG for Service Providers wherein import of moveable capital goods
is permitted.
This
issues with the approval of the DGFT.
Sd/- (A.
K. Singh) Joint Director General of Foreign Trade (Issued from File No:
01/91/180/1659/AM10/PC-3)
CUSTOMS CIRCULAR NO.5/2010-Cus. Dated: March 16, 2010
Sub:
Verification Mechanism and monitoring of export obligation under duty exemption
- reward Schemes – reg.
I
am directed to invite your attention to the above-mentioned subject and to say
that, several references have been received, requesting the Board to put in place
a verification mechanism in respect of the duty credit scrips issued under Chapter
3 schemes of the Foreign Trade Policy (FTP) and in respect of the Export Promotion
Schemes viz. Advance Authorization / Duty Free Import Authorization (DFIA) / Export
Promotion Captial Goods (EPCG) schemes. 2.The matter has been examined by
the Board in the light of the conditions specified in the notifications regarding
monitoring of export obligation in respect of Advance Authorization / DFIA / EPCG
schemes. Board has also considered the reports received from the field formations,
which indicated discrepancies found having revenue implications during the verification
of the duty credit scrips, issued under Chapter 3 schemes of FTP. Accordingly,
it has been decided to put in place the following procedures:- a) In case
of EPCG scheme, the Jurisdictional Customs Authorities at the Port of Import shall
ensure that the installation certificates are submitted within 6 months of completion
of imports as stipulated in the corresponding customs notifications. The correctness
of the installation certificates, which are issued by the Chartered Engineers,
shall be verified on a random basis through Central Excise divisions. Further,
the EPCG notifications stipulate fulfilment of atleast 50% of export obligation
within the first block. This shall be verified in detail. In case the same is
found satisfactory, the Export Obligation Discharge Certificate issued by the
Director General of Foreign Trade (DGFT) at the end of 2 nd block may be accepted
without further verification unless there is a specific intelligence suggesting
need for detailed verification. b) In case of Advance Authorization scheme,
the E xport Obligation Discharge Certificate should normally be accepted unless
there is an intelligence suggesting misuse. c) The Jurisdictional Commissioner
of Customs may cause random verification for some of the authorizations issued
under EPCG / DFIA / Advance Authorization schemes registered at their port to
check the correctness of the address shown on the Authorization. This is important,
as the EPCG notification requires installation of the capital goods and the Advance
Authorisation scheme (and DFIA scheme in some cases) contemplates actual usage
of the imported goods. Such verification may be carried out during the validity
of the Authorisation and preferably through the Central Excise divisions. d)
Action to safegaurd customs revenue should be initiated in case the authorization
holder does not submit the Export Obligation Discharge Certificate within the
time period stipulated in the relevant Customs notifications. e) As regards
the duty credit scrips issued under Chapter 3 of FTP, the verification of genuineness
of scrips in terms of Para 3.11.3 of the HBP v.1 shall be done before allowing
registration of such scrips. Further, the Commissioner may cause random verification
of the shpping bills based on which the said duty credit scrip has been issued
to ascertain the genuiness of such shipping bills. A quarterly report on the outcome
of the said verification may be forwarded to the Board, which should include inter
alia the details of the discrepancies noticed during the verification and the
measures taken to redress such discrepancies. This procedure will be reviewed
once online transmission of the duty credti scrips issued under Chapter 3 of FTP
is operationalized. f) Wherever the Export Obligation Discharge Certificate
s issued by DGFT bear the requirement that the Customs department should carry
out verification, then such verification should be done. In all cases – EPCG,
Advance Authorization, DFIA and Reward Schemes, the Department would retain the
right to carry out a complete verification wherever there is specific intelligence
available suggesting misuse. 3. The notifications issued under EPCG / Advance
Authorization / DFIA schemes provide that the exporter should discharge the export
obligation within the specified time period or within such extended period as
may be permitted. Further, the notifications issued under EPCG scheme stipulates
that in case of non-fulfillment of block-wise export obligation, the importer
should pay the proportional duty of unfulfilled portion of export obligation along
with specified interest from the date of clearance of the goods and such payment
should be made within 3 months from the expiry of said block. Monitoring of export
obligation is an integral part of verification mechanism. This would facilitate
faster redemption of Bonds / Bank Guarantee executed under the above schemes.
In view of above, the Jurisdictional Commissioners of Customs are directed to
put suitable systems in place to initiate timely action in all cases of default.
4. The guidelines issued in the past on the subject shall be modified to the
above extent. 5. These instructions may be brought to the notice of the trade
/ exporters by issuing suitable Trade / Public Notices. Suitable Standing orders/instructions
may be issued for the guidance of the assessing officers. Difficulties faced,
if any, in implementation of the Circular may please be brought to the notice
of the Board at an early date. Receipt of this Circular may kindly be acknowledged.
F.NO.605/16/2007-DBK (Pt.)
(P.V.K.
Rajasekhar) OSD (Drawback)
Tariff
Value for import of Brass Scrap is 3801 and for poppy seeds 4256 Central Board
of Excise and Customs (CBEC), Department of Revenue has issued Notification No.20/2010-Customs
(N.T.) dated March 15, 2010 notifying tariff values of edible oils, brass scrap
(all grades) and Poppy seeds as shown in the table below.
CUSTOMS
NOTIFICATION NO.33/2010 - Cus Dated: March 12, 2010 Amends Notification
21/2002 - Customs, dated 1st March 2002
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 21/2002-Customs, dated the 1 st March, 2002 which
was published in the Gazette of India, Extraordinary, vide number G.S.R.118 (E),
dated the 1 st March, 2002, namely:- In the said notification, in the Table,-
(i) for S. No 3 and the entries relating thereto, the following shall be substituted,
namely:- S. No. Chapter or Heading No. or sub-heading No. Description of goods
Standard rate Additional duty rate Condition No. (1) (2) (3) (4) (5) (6) "
3. 0402 10 or 0402 21 00 Goods upto an aggregate of thirty thousand metric tonnes
of total imports of such goods in a financial year.
(ii) after S.No. 3AA and the entries relating thereto, the following S.No. and
the entries shall be inserted, namely:- S. No. Chapter or Heading No. or sub-heading
No. Description of goods Standard rate Additional duty rate Condition No. (1)
(2) (3) (4) (5) (6) " 3AB. 0405 White Butter, Butter oil, Anhydrous Milk
Fat upto an aggregate of fifteen thousand metric tonnes of total imports of such
goods in a financial year.
[F.No.354/20/2010-TRU]
(Prashant
Kumar) Under Secretary to the Government of India
Note:
The principal notification No.21/2002-Customs, dated the 1 st March, 2002 was
published in the Gazette of India, Extraordinary, vide number G.S.R. 118(E), dated
the 1 st March, 2002 and was last amended vide notification No. 21/2010-Customs,
dated the 27 th February, 2010 published vide number G.S.R.134(E), dated the 27
th February, 2010.
CUSTOMS
NOTIFICATION NO.32/2010 - Cus Dated: March 11, 2010 Amends Notification
36/96 - Customs, dated the 23rd July, 1996
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary
in the public interest so to do, hereby makes the following further amendments,
in the notification of the Government of India in the Ministry of Finance (Department
of Revenue), No.39/96-Customs, dated the 23rd July, 1996, G.S.R. 291(E), dated
the 23 rd July, 1996, namely:-
In
the said notification, in the TABLE, against S.No.18, in column (3), - 1.
for the words and letters "duly certified by the Senior Manager" the
words and letters "duly certified by the Senior Manager or the Assistant
Director" shall be substituted. 2. in the Explanation , for the words,
letters and figures, "the 28 th day of March 2010", the words, letters
and figures, "the 1 st day of January, 2019" shall be substituted.
[F.
No. 354/76/2006-TRU]
(Prashant
Kumar) Under Secretary to the Government of India
Note:-
The principal notification No.39/96-Customs dated the 23rd July, 1996 was published
in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) vide
number G.S.R. 291 (E), dated the 23rd July,1996 and last amended vide notification
No.54/2009-Customs dated the 22 nd May, 2009 , published vide number G.S.R. 355(E),
dated the 22 nd May, 2009
Instruction
No. 48
Dated
10th March 2010
Sub:
Employment of washing process in the manufacture of agglomerates etc from imported
plastic waste and scrap -reg.
I am directed to refer to your letter No. KASEZ/IA-1690/97/Vol.,I dated 24.11.2009
and letter No.KASEZ/IA/G-64/98/Vol.I dated 22.02.2010 on the above subject and
to say that the views of the Department are as follows.
The imported scrap is tested to meet the eligibility requirements. Hence, washing
process has no bearing on the eligibility of scrap and unit can use such processes
to remove impurities which may get added to the scrap during its collection and
transportation and washing is a permissible activity. However, the washing process
must meet the State Pollution Control Board's standards.
Yours
faithfully,
Sd/- (T
Srinidhi) Director
F.No.C-6/10/2009-SEZ
Government
of India Ministry of Commerce & Industry Department of Commerce Udyog
Bhawan, New DelhiCOPY OF-
Section
35A(3) of the Central Excise Act, 1944 / Section 128A(3) of the Customs Act, 1962
as it existed before 11.5.2001 provided that Commissioner (Appeals) shall, after
making such further enquiry as may be necessary, pass such order, as he thinks
just and proper, confirming, modifying or annulling decision or order appealed
against or may refer the case back to the adjudicating authority with such direction
as he may think fit for a fresh adjudication or decision as the case may be, after
taking additional evidence, if necessary.
2. An amendment was brought
out in the aforesaid sections vide Finance Act, 2001 w.e.f. 11.5.2001 deleting
the phrase as mentioned in bold above with an intention to withdraw the powers
to Commissioner (Appeals) to remand the cases for fresh adjudication to the original
adjudication authorities. After the amendment in 2001, the said Sections read
as follows:-
“The Commissioner (Appeals) shall, after making
such further enquiry as may be necessary, pass such order, as he thinks just and
proper, confirming, modifying or annulling the decision or order appealed against.”
3.
The matter whether the Commissioner (Appeals) continues to have powers to remand
beyond 11.5.2001 came up before the Gujarat High Court in the case of M/s. Medico
Lab. The Hon’ble High Court of Gujarat, vide order dated21.9.2004 in the
case of CCE, Ahmedabad-I Vs. Medico Lab, held that Commissioner(Appeals) continues
to have the power to remand even after the amendment.
4. Hon’ble
Punjab & Haryana High Court in the case of CC, Amritsar Vs. M/s. Enkay (India)
Rubber Co. Pvt. Ltd. vide order dated 8.3.2007 and in the case of CCE, Jallandhar
Vs. B.C. Kataria [2008(221) ELT.508 P&H] vide order dated 6.9.2007 had held
that the Commissioner (Appeals) have been divested of the powers to remand the
cases back to adjudicating authority after deletion of that power from Section
35A(3) of Central Excise Act vide amendment made in 2001. Hon’ble High Court
has distinguished the judgement of the Gujarat High Court in the case of Medico
Labs in this case and also stated that the reliance on the Hon’ble Supreme
Court judgement in the case of Umesh Dhaimonde (1998(98) ELT 584 ) cannot be made
as in that case Hon’ble Supreme Court was not dealing with the provisions
where earlier power of remand was specifically conferred and subsequently taken
away by amendment carried by Finance Act, 2001.
5. The Hon’ble
Supreme Court in its judgement-dated 1.3.2007 in Civil Appeal No. 6988/2005 in
the case of MIL India Ltd. [2007(210) ELT.188 (SC)] has observed that “in
fact, the power of remand by the Commissioner (Appeals) has been taken away by
amending Section 35A with effect from 11.5.2001 under the Finance Bill, 2001.
Under the Notes to clause 122 of the said Bill it is stated that clause 122 seeks
to amend Section 35A so as to withdraw the power of the Commissioner (A) to remand
matters back to the adjudicating authority for fresh consideration.” The
said decision of the Supreme Court was brought to the notice of CESTAT in the
case of CCE, Jallandhar Vs. Hawkins Cookers Ltd. reported in 2007(8)RLT.7, but
the Tribunal held that the Supreme Court in the said case had only noted the provisions
of amended law whereas the specific issue whether Commissioner (A) has power to
remand after amendment to provisions of Section 35A has been considered by the
Hon’ble Gujarat High Court in the case of Medico Lab and the High Court has
held that the Commissioner (A) has power to remand under the amended provisions
also. The appeal (CEA No.29/2008) filed by the Commissioner of Central Excise,
Jallandhar against the said order in the Hawkins Cookers case stating that the
said observations as quoted above are part of the ratio decidendi of the decision
of the Hon’ble Supreme Court, has been allowed by the Punjab & Haryana
High Court vide order dated 14.7.2008 relying upon its own judgement in the case
of CCE, Jallandhar Vs. B.C. Kataria [2008(221) ELT.508].
6. In the
light of the observations of Hon’ble Supreme Court in the case of MIL India
Ltd. and the judgement of Hon’ble High Court of Punjab & Haryana in the
case of M/s. Enkay (India) Rubber Co. Pvt. Ltd., M/s. B.C. Kataria and M/s. Hawkins
Cookers Ltd., you are requested to issue suitable instructions to the Commissioners
(A) working under your jurisdiction to follow the said judgments strictly. It
may also be brought to their notice that Hon’ble Supreme Court in the case
of MIL India Ltd., while noting that the powers of remand had been taken away,
has also categorically stated that the Commissioner (A) continues to exercise
the power of adjudicating authority in the matter of assessment and the Commissioner
(A) can add or subtract certain items from the order of assessment made by the
adjudicating authority and the order of Commissioner (A) could also be treated
as an order of assessment. Board instructions dated 25.7.2008 (copy Given BELOW)
may be referred in this regard.
7. The receipt of this instruction
may please be acknowledged. A copy of the instruction issued to the Commissioners(Appeals)
under your jurisdiction may also be endorsed to the Board. The issue may also
be monitored at your level. F.No. 275/34/2006-CX.8A -------------------
Procedure
in Appeal under Sec. 35A of the Central Excise Act/Section 128A of Customs Act/Sec.
85 of the Finance Act, 1994 - reg. Instruction F.No. 275/34/2006-CX.8A, dated
25-7-2008
Section 35A of the Central Excise Act, 1994 prescribes
the procedure in appeal to be followed by Commissioner (Appeals) while deciding
the appeals filed before him under Section 35/35E of the Central Excise Act 1944.
Similar provisions exist under Section 128A of the Customs Act, 1962 and Section
85 of the Finance Act, 1994.
2. Sub-Section (3) of the Section 35A
of Central Excise Act, 1994 reads as follows-
The Commissioners(Appeals)
shall, after making such further enquiry as may be necessary, pass such order,
as he thinks just and proper, confirming, modifying or annulling the decision
or order appealed against;
3. The Board has noted that Commissioner
(Appeals) do not resort to the mechanism of further enquiry as provided to them
under the appeal procedure as above in such cases where it may be necessary before
passing the order. Sub-Rule 4 of Rule 5 of Central Excise (Appeals) Rules, 2001
provides that nothing contained in said rule shall affect the power of the Commissioner
(Appeals) to direct the production of any document, or the examination of any
witness to enable him dispose of the appeal.
4. In the light of the
provisions as contained in the statute and the rules made there under, I am directed
to request you to advise Commissioners (Appeals) working in your jurisdiction
to resort to enquiry in such appeals as may be necessary in the facts and circumstances
of the case before passing a just and fair order in accordance with the provisions
of the Act.
F.No. 275/34/2006-CX.8A,
COPY
OF- SERVICE TAX NOTIFICATION NO.18/2010 - Service Tax Dated: March
2, 2010
CORRIGENDUM
In
the notification of the Government of India in the Ministry of Finance (Department
of Revenue), No. 17/2010-Service Tax, dated the 27th February, 2010 published
in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide
number G.S.R. 161 (E), dated the 27th February, 2010, at page 159, in line 28,
for “the buyer”, read” him”. F. No. 334/1/2010-TRU
(Limatula
Yaden) Deputy Secretary to the Government of India
PUBLIC
NOTICE NO.48/2009-2014 Dated: March 5, 2010 Subject: Indo - China Border
Trade.
In
exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy,
2009-14, the Director General of Foreign Trade hereby makes the following amendments
in the Public Notice No. 20(RE-2006)/2004-2009 dated 13 th June, 2006. 1.
The existing part of paragraph 1 i.e. "In terms of the provisions contained
in the Foreign Trade Policy, import/export of the following locally produced commodities
by the people living along both sides of Indo - China Border as per the prevailing
customary practice will be allowed freely" is amended to read as" In
terms of the provision contained in the Foreign Trade Policy, Import/Export of
the following commodities by residents of border districts who are issued trade
passes, as per the prevailing customary practice will be allowed freely".
2. The list of items stipulated for import/export and Paragraphs 2 & 3
of the Public Notice No. 20(RE-2006)/2004-2009 dated 13 th June, 2006 remain unaltered.
3. This issues in public interest. F.No . 01/89/180/Misc-57/AM-06/PC-
I( A)
(R.
S. Gujral ) Director General of Foreign Trade and Ex-officio Special Secretary
to the Government of India
ORDER
OF CLARIFICATION MADE BY SHRI RAMENDRA JAKHU, FINANCIAL COMMISSIONER &
PRINCIPAL SECRETARY, GOVERNMENET OF HARYANA, EXCISE AND TAXATION DEPARTMENT,
UNDER SECTION 56(3) OF THE HARYANA VALUE ADDED TAX ACT, 2003
Queriest:
M/s Haryana State Small Scale (R.I.), Dressing Manufacturing Association, Rohtak
M/s Haryana State Small Scale (R.I.), Dressing Manufacturing Association,
Rohtak is a body of dealers and have applied under Section 56(3) of the Haryana
VAT Act for clarification as to the rate of tax leviable under Haryana VAT Act
on Handloom Bandage, Non-sterilized and un-medicated. The applicant has relied
on judgment delivered by Sales Tax Tribunal Hayana in STA No.263 of 1972-73 and
orders passed by Jt. ETC(Appeals), particulars of which have not been furnished.
Plea of the applicant is that Handloom Bandage, non-sterilized and unmediated
are tax free goods being covered under Schedule 'B' of the Haryana VAT Act, 2003.
Judgment relied by the applicant has been delivered under the provisions of Punjab
General Sales Tax Act, 1948 which was applicable in those times. As to the merits
of the case, Non-sterilized and un-medicated handloom bandages are specified goods
which are meant for application in specified areas viz for the purposed dressing
and hence are not covered under relevant entry of Schedule 'B' viz entry 51 of
the Haryana VAT Act which provides for exemption of VAT on all varieties of cotton,
woolen or silken textiles including rayon, artificial silk or nylon but not including
such carpets, druggets, woolen durees, cotton floor durrees, rugs and all varieties
of dryer felts on which additional Excise Duty in lieu of sales tax is not levied.
Moreover, as per Central Excise Tariff of India bandages are covered under tariff
item 3005 9040 of chapter 30 pertaining to Pharmaceutical Products viz Wadding,
gauze, bandages and similar articles (for example, dressings, adhesive plasters,
poultices), impregnated or coated with pharmaceutical substances or put up in
forms or packings for retail sale for medical, surgical, dental or veterinary
purposes. From the description of goods given in the aforesaid tariff item it
is more than clear that the even non-sterilized and un-medicated bandages put
up in forms or packings for retail sale for medical or surgical purposes are covered
under the pharmaceutical products and hence attract VAT at the rate leviable on
pharmaceutical products. Further, Dressings are included in entry 25 of Schedule
'C' which includes Bulk drugs, drugs, medicines, vaccines, medicated ointments
produced under drug licence, light liquid paraffin of IP grade, syringes, dressings,
glucose-D, oral re-hydration salt, medical equipments/devises and implants. It
is not necessary that dressings should be sterilized and medicated to be covered
under the aforesaid entry. Hence VAT on handloom bandages non-sterilized and un-mediated
is leviable @4% being covered under entry 25 of Schedule 'C' of the Haryana VAT
Act. Matter is clarified accordingly.
Chandigarh
Dated: 18.01.10
(RAMENDRA
JAKHU) Financial Commissioner & Principal Secretary to Govt. Haryana,
Excise & Taxation Department
Issued
vide letter no.93-94,Dated 29/1/2010
ORDER
OF CLARIFICATION MADE BY SHRI RAMENDRA JAKHU, FINANCIAL COMMISSIONER &
PRINCIPAL SECRETARY, GOVERNMENET OF HARYANA, EXCISE AND TAXATION DEPARTMENT,
UNDER SECTION 56(3) OF THE HARYANA VALUE ADDED TAX ACT, 2003
Queriest:
Clarification under section 56(3) of the Haryana VAT Act - M/s S.R. Foils and
Tissue Ltd. Plot No.02 Kadipur, Industrial
Gurgaon
TIN No.06561930432. M/s S.R. Foils and Tissue Ltd., Plot No.02 Kadipur, Industrial
Area Gurgaon holding TIN No.06561930432, the querist is a dealer registered under
Haryana VAT Act. The applicant has sought clarification under section 56(3) of
the Haryana VAT act as to i) whether tissue papers and its forms namely, tissue
paper, napkin, toilet paper rolls, facial tissues and kitchen wipes are covered
under entry 57 of Schedule 'C' appended to Haryana VAT Act and ii) VAT rate applicable
on these goods. In the statement of relevant facts having bearing on the aforesaid
question, the applicant has explained that he is engaged in business of manufacture
and sale interalia of tissue paper and its various kinds and is supplying its
products to retailers such as big bazaar etc. The applicant has explained the
elaborate process of manufacture of these products. In the statement containing
the applicant's interpretation of law and facts the applicant has explained that
the aforesaid products manufactured and sold by him are covered under entry 57
of Schedule 'C' and hence attract VAT @ 4%. The applicant has further explained
that entry in the statue should be given widest amplitude and that entry 57 of
Schedule 'C' viz paper, paper board and news print includes paper in all its forms.
The applicant has further relied on judgement delivered by the Apex Court and
various High Courts in support of his contention and has specified relied on judgement
delivered by the Hon'ble Supreme Court in case of Commissioner of Central Excise-I,
New Delhi V/s S.R. Tissues Pvt. Ltd. and another 2005 (186) ELT 385 SC wherein,
as per the contention of the applicant the issue has been settled in favour of
the appellant. The matter has been examined. Entry 57 of the Schedule 'C'
appended to Haryana VAT Act includes "paper, paper board and news print".
From the entry itself it is clear that the entry speaks of a board generic
terms paper, and paper board. The entry does'nt convey any sense as to the use
and application of such papers. Papers covered under this entry may be craft paper,
news print paper etc. However, the products manufactured and sold by the applicant
viz tissue paper, napkins, toilet paper rolls, kitchen wipes and facial tissues
are specific product meant for specific purpose. If paper and paper boards are
genus, tissue paper, napkin, toilet paper rolls, facial tissues and kitchen wipes
are specie of this genus. Further, in chapter 48 of the Central Excise Teriff
of India pertaining to paper and paper boards etc. toilet paper and similar paper,
cellulose wadding or webs of cellulose fibres of a kind use for house hold or
sanitary purposes find separate mention under Tariff items No.4818 of chapter
48. As to the Supreme Court judgement in case of S.R. Tissues Pvt. Ltd. and
another 2005(186)ELT 385 SC relied by the applicant, the point in issue in the
said judgment was as to whether the process of slitting/cutting of jumbo rolls
of plain tissue paper/aluminum file into similar size will amount to manufacture
or not and in para 26 of the judgment in the case was remitted back to the Commissioner
to ascertain whether the assessee had the requisite infrastructure, facility,
machine etc. for manufacturing fragmented and wet tissue and, if so whether the
process amounts to manufacture. Thus entry 57 of Schedule 'C' includes paper
and paper board or news print in raw form, viz inputs for manufacture of specified
products and tissue papers and its forms namely tissue paper, napkin, toilet paper
rolls, kitchen wipes and facial tissues which are made from a class of papers
of characteristic gauzy texture, in some cases fairly transparent, light weighted
and subjected to fumigation and scenting, are not covered under the aforesaid
entry and hence attract VAT @12.5% being unclassified goods. Matter is clarified
accordingly.
Chandigarh
Dated: 18.01.10
(RAMENDRA
JAKHU) Financial Commissioner & Principal Secretary to Govt. Haryana,
Excise & Taxation Department
Issued
Vide letter No. 89-91/ST-1,Dated 29-01-2010
Under
COTP Act, 2003 excise department is empowered to enter, search and seizure only
at the premises registered under the Central Excise and Customs
Circular
No. 918/08/2010-CX – F.No.267/50/2007-CX8, New Delhi, dated the
4th March, 2010. Subject: Implementation of the provisions of COTP Act, 2003
and The Cigarettes and Other Tobacco Products (Packaging and Labelling) Rules,
2008”- Empowering the Customs & Central Excise Officers – regarding
Please refer to the Board’s Circular No. 896/16/2009-CX dated 01.09.2009,
issued on the above referred subject matter. Ministry of Health & Family Welfare
has amended the Notification dated 30.07.2009 [S.O.1866 (E)] vide Notification
dated 06.01.10 [S.O.23 (E)] (copy enclosed). The effect of the Notification is
that the officers at the level of Superintendents and above of the Customs &
Central Excise department are empowered for entry, search and seizure only at
the premises registered under the Central Excise & Customs. Therefore, officers
are not empowered to enter, search etc. for premises which are not registered
with the department for carrying out any act under the COTP Act, 2003. 2. Trade
& Industry as well as field formations may be suitably informed. 3. Receipt
of this circular may kindly be acknowledged. 4. Hindi version will follow. Yours
faithfully, (AmishKumarGupta) OSD (CX-8).
Exempts
domestically developed packaged or canned software for single use and packaged
accordingly from whole of Service Tax.
3/2010-ST
dated 27.02.2010
Amends
Notification No.24/2004-ST dated 10.09.2004. the definition of vocational training
institute has been amended so as to covered only ITI or Industrial Training Centres
affiliated to National Council for vocational trainee.
4/2010-ST
dated 27.02.2010
Amends
Notification No.33/2004-ST dated 03.12.2004. exempts services provided by DTA
in relation to food grains or pulses.
5/2010-ST
dated 27.02.2010
Resinds
Notification No.1/2000-ST dated 09.02.2000 (Notification No.01/00 exempts taxable
services provided by Government of Rajasthan under group personal accidents scheme.
6/2010-ST
dated 27.02.2010
Amends
certain provisions of exports of services rules notified under Notification No.09/2005-ST
dated 03.03.2005.
7/2010-ST
dated 27.02.2010
Resins
Notification No.33/2009-ST dated 01.09.2009 (Notification No.33/2009-ST exempts
taxable services provided by any person in relation to transport of goods by Rail.
This Notification will come in to effect from 01.04.2010.
8/2010-ST
dated 27.02.2010
Exempts
services provided in relation to transport of goods by rail in respect of certain
specified goods.
9/2010-ST
dated 27.02.2010
Amends
Notification No.1/2006-ST dated 01.03.2006 so as to Provides abatement of 70%
in relation to transport of goods by rail services.
10/2010-ST
dated 27.02.2010
Exempts
taxable services provided by a Central or State seed testing laboratory and Central
or State Seed Certification Agency.
11/2010-ST
dated 27.02.2010
Exempts
Services provided in relation to transmission of electricity
12/2010-ST
dated 27.02.2010
Exempts
erection commissioning or installation services provided in relation to grain
handling system cold storage units processing Agricultural, apiary, horticultural,
dairy, poultry, aquatic and marine products and meat.
13/2010-ST
dated 27.02.2010
Exempts
services provided by News Agencies.
14/2010-ST
dated 27.02.2010
Amends
Notification No.1/2002-ST dated 01.03.2002. Extends provisions of Service Tax
to continental shelf and EEZ of India for insulation construction of structures
and vessels prospecting extraction or production of mineral oil natural gas and
supply thereof only.
15/2010-ST
dated 27.02.2010
Amends
Service Tax Valuation Rules so as to excludes taxes levied by Government on any
passenger travelling by air.
16/2010-ST
dated 27.02.2010
Amends
certain provisions of import of service rules notified under Notification No.11/2006-ST
dated 09.11.2006.
17/2010-ST
dated 27.10.2010
Exempts
imported packaged or canned software for single use and packaged accordingly from
whole of Service Tax.
Central
Excise Tariff Notifications
CE
Notification No.
3/2010-CE
dated 27.02.2010
Exempts
certain goods manufactured by Government of India mints. Earlier all goods manufactured
by mints for exempted
4/2010-CE
dated 27.02.2010
SSI
Exemption – Notification No.8/2003-CE amends - bar of brand name not to apply
to plastic containers and plastic bottles meant for use as packing material by
the brand name owner.
5/2010-CE
dated 27.02.2010
8%
duty enhanced to 10% duty on gold jewellery increased to Rs.500/- per 10 grams
amends Notification No.23/2003-CE.
6/2010-CE
dated 27.02.2010
Amends
Notification 29/2004-CE and 2/2008-CE. Rate enhanced from 8% to 10%. Commodities
covered Textiles, Motor Vehicles ( 10% + Rs.10000/-),
7/2010-CE
dated 27.02.2010
Amends
Notification No. 3/2005 CE dt. 24.02.2005. Omitted Sl. No.79- Umbrella Cloth panels
which was subject to Nil duty.
8/2010-CE
dated 27.02.2010
Amends
Notification No. 6/2005 CE dt.1.03.2005. Cigars and Cigarillas effective rate
of additional duty increased from 1.6% to 1.06% or Rs.246/- per 1000 whichever
is higher. Other tobacco products deleted from the list.
9/2010-CE
dated 27.02.2010
Amends
Notification No.3/2006 dt.1.03.2006.
Duty
on Tapioca and Maize starch increased from Nil to 4%. Betel Nut Supari to attract
Nil duty. Duty on Pan masala, Huhookah Tobacco , other smoking tobacco other manufactured
tobacco, increased from 8% to 10%
10/2010-CE
dated 27.02.2010
Amends
Notification No. 4/2006 dt.1.03.2006.
Duty on Cement increased. AV gas
to attract 4% instead of Nil. Increase of duty by Rs.1 on Motor Spirit and diesel.
Increase
of duty from 8% to 10% on goods- gold potassium cyanide, catalyst of precious
metals, Mono ethylene glycol. PTA, DMT, Acrylonitrile, Benzene, Caprolactam, Writing
Ink, Matches, Polyester/Nylon chips, Rubber Tension tape, fur skins, sheets for
veneer, pre-laminated fibre board, ply wood, flush doors,
Duty
at 10% imposed on clinical diapers, sanitary napkins ( these goods attracted a
tariff rate of Nil duty earlier, which has now been enhanced to 16% with an effective
rate of 10% )
Duty
reduced from 8% to 4% on- latex rubber thread, corrugated cartons Exemption
from total duty given to Security Ink for govt. Security Presses, certain Menthol
products, toy balloons,
11/2010-CE
dated 27.02.2010
Amends
5/2006CE dt/1.03.2006.
Duty
enhanced from 8% to 10% on certain textile goods, goods containing more than 25%
of fly ash, glazed tiles, glass ware.
Parts
of Umbrellas to attract duty at 4%. Gold bars manufactured ore to attract duty
at Rs.280/- per 10gms
12/2010-CE
dated 27.02.2010
Amends
Notification No. 6/2006 dt.1.03.2006.
Plantation
Sector equipment exempted from duty from 27/02/2010 to 31.03.2011. Electrically
operated vehicles to attract 4% duty and parts to attract 4% till 31.03.2011.
Full Exemption from duty for cold storage of agricultural produce has been extended
to apiary, horticultural, diary, poultry, aquatic and marine produce and meat.
Replaceable kits of water filters to attract 4%. Floppy drive, hard disc drive,
CD Rom drive, DVD drive, combo drive, meant for external use with a computer to
attract 4% (earlier these goods were attracting Nil rate. These goods when used
inside a CPU will continue to attract Nil rates. Parts, components of battery
chargers and hand free head phones of mobile phones are also to be fully exempted
along with parts and components mobile phones. Self loading or self unloading
trailers for agricultural purposes fully exempted. All spectacles exempted. Glucometer
and test strips to attract 4% from Nil rate. Goods supplied mega power projects
exempted from customs duty will also be exempted from excise duty. Duty enhanced
from 8% to 10% on – computers, electronic milk fat tester, MP3 player, packaged
software, certain categories of motor vehicles ( for certain categories of motor
vehicles where the present duty rate is 20% it will now be 22% ), brooms and brushes,
slide fasteners.
13/2010-CE
dated 27.02.2010
Amends
notification No. 10/2006CE dt.1.03.2006.
Duty
enhanced from 8% to 10% on – articles of wood, registers, account books,
receipt books, letter pads, paper labels, articles of mica, soled or hollow building
blocks.
14/2010-CE
dated 27.02.2010
Amends
notification No. 49/2006CE dt.30.12.2006.
Duty
on Software increased from 8% to 10%
15/2010-CE
dated 27.02.2010
New
Notification. Exempts from whole of duty on all items of machinery and components
for initial setting of solar power generation project or facility.
16/2010-CE
dated 27.02.2010
New
Notification. Notification to come into effect from 08.03.2010.
Compounded
levy scheme for unmanufactured tobacco and chewing tobacco in pouches.
Condition
of commercial use for exemption of the value of consideration for right to use
the software is omitted. ( this is done in tune with amendments made in service
tax and similar amendments made in customs for IT services )
18/2010-CE
dated 27.02.2010
New
Notification. Cigarettes’ to attract a duty of Rs.509/- for 1000 .
Central
Excise NON-Tariff Notifications
Notification
Notification
No. 5/2010 CE (NT) dt.27.02.2010
Amends
Central Excise Rules. SSI units can pay duty on quarterly basis but returns
to be filed within 10 days of closure quarter ( earlier 20 days after the end
of quarter )
Notification
No.6/2010 CE(NT) dt.27.02.2010
Amends
Cenvat Credit Rules, 2004. Removal of capital goods as such- computers allowed
a depreciation of 10% in the first year, 8% in the second year, 5% in the 3rd
year and 1% in 4th and 5th year for every quarter. For other goods it remains
at 2.5% for each quarter. SSI units can take full credit of duty paid on capital
goods in the same financial year. Credit to be allowed in respect of jigs, moulds,
fixtures and dies sent to another manufacturer (earlier it was limited a job worker).
Rule
15 of CCR has been amended providing for confiscation and mandatory penalty in
respect of irregular availment of input service credit.
Notification
No.7/2010CE(NT) dt.27.02.2010
Amends
notification no 5/2006 CE (NT) dt.14.03.2006. Form for claiming refund has been
amended to align the definition of input service and input in tune with the Cenvat
Credit Rules, 2004 and Board’s Circular 120/2010-ST dt.19.01.2010 Form prescribed
in the Board’s Circular has now been included in the notification. However,
rule 5 of CCR still need to be amended to give effect to the amendments.
Notifcation
No.8/2010CE(NT) dt.27.02.2010
Pan
Masala Packing Machines (capacity determination and collection of duty) Rules,
2008 have been amended.
Notifcation
No.9/2010CE(NT) dt.27.02.2010
Fixes
30% abatement for parts and components of assemblies of motor vehicles under MRP
assessment and changes the abatement to 55% for Pan Masala and tobacco products.
Notifcation
No.10/2010CE(NT) dt.27.02.2010
Unmanufactured
tobacco and chewing tobacco packed in pouches notified for compounded levy.
Notifcation
No.11/2010CE(NT) dt.27.02.2010
Chewing
tobacco and un-manufactured tobacco packing machine (capacity determination and
collection of duty) rules, 2008 have been notified.
Customs
Tariff Notifications
Notification
No.
15/2010-CUS
27.02.2010
Amended
the Project Import Regulations, 1986 to the extent of Sr.No.3E – after the
entry ‘Name of the Plant or Project’, two more entries viz., (a) Digital
cinema development projects and (b) Digital head end project were included.
Three
entries were added, viz., 3F. Monorail projects for urban public transport, 3G.
Project for installation of mechanized food grain handling systems and pallet
packing systems in mandis and warehouses for food grains and sugar, and 3H. Cold
storage, cold room (including farm level pre-cooling) or industrial projects for
preservation, storage or processing of agricultural, apiary, horticultural, dairy,
poultry, acquatic and marine produce and meat
16/2010-CUS
27.02.2010
Amended
the notification No.154/1994-Customs, dated 13.07.1994, to extent of S.No.3 in
column (3) of the Table against condition (iv) – the threshold limit of import
of commercial samples has been increased to Rs.3,00,000/- as against existing
limit of Rs.1,00,000/-
17/2010-CUS
27.02.2010
Amends
notification No.172/1994-Cus dated 30.09.1994 to the extent of – effective
rate of duty for silver including ornaments when imported by a passenger has been
enhanced from existing Rs.1000 per kilogram to Rs.1500/-per kilogram.
Amends
notification No.31/2003-Cus dated 01.03.2003 to the extent of – effective
rate of duty for Gold including ornaments when imported by a passenger ,as follows
–
1. For Gold bars other than tola bars, bearing manufacturer’s or refiner’s
engraved serial number and weight expressed in metric units, and gold coins –
the rate of duty is enhanced from existing Rs.200 per 10 gms to Rs.300 per 10
gms. 2. For Gold in any form other than at (i) above, including tola bars
and ornaments, but excluding ornaments studded with stones or pearls - the rate
of duty is enhanced from existing Rs.500 per 10 gms to Rs.750/- per 10 gms
Amends
notification No.64/2004-Cus dated 12.05.2004 to the extent of – effective
rate of duty for Gold & silver when imported other than through post, courier
or baggage, as follows -
1. For Gold bars otherthan tola bars, bearing manufacturer’s or refiner’s
engraved serial number and weight expressed in metric units, and gold coins –
the rate of duty is enhanced from existing Rs.200 per 10 gms to Rs.300 per 10
gms. 2. For Gold in any form other than at (i) above, including liquid gold
and tola bars - the rate of duty is enhanced from existing Rs.500 per 10 gms to
Rs.750/- per 10 gms 3. Silver in any form – the rate of duty is enhanced
from existing Rs.1000/- per kg to Rs.1500/- per kg.
18/2010-CUS
Withdraws
the existing exemption available to exposed and developed cinematographic film
by rescinding notification No.33/2003-Cus dated 01.03.2003.
Withdraws
the existing exemption from levy of additional duty to parts, components and accessories
of mobile handsets including mobile cellular phones by rescinding notification
No.39/2005-Cus dated 02.05.2005 than through post, courier or baggage, as follows
-
Withdraws
the existing exemption from levy of CVD on parts, components and accessories of
mobile handsets including cellular phones upto 06.07.2010, by rescinding notification
No.79/2009-Cus dated 07.07.2009
19/2010-CUS
In
addition to existing 37 specified projects, 4 more projects were included for
the purpose of assessment under the heading 98.01, viz.,
38.
Monorail projects for urban public transport.
39.
Digital headed projects.
40.
Projects for the installation of mechanized food grain handling systems and pallet
racking systems in mandis and warehouses for food grains and sugar.
41.Cold
storage, cold room (including for farm level pre-cooling) or industrial projects
for preservation, storage or processing of agricultural, apiary, horticultural,
dairy, poultry, aquatic and marine produce and meat.
20/2010-CUS
Makes
additions to existing list of Exemptions on Concessional rate of duty on goods
imported for the manufacture of excisable goods – by making amendment to
Notification No.25/1999-Customs dated 28.02.1999, as follows –
S.No.79
for the entry in column (2) in addition to existing entry ‘71’, entries
‘7220 12 90 or 7409 11 00 or 7409 90 00” were added.
(b)
in column No.(3), after the existing entries “Silver bronze strips/coils;
Copper strips/coils/sheets; Copper nickel alloy or other alloys of copper in strip/coil/sheets;
Stainless steel strips” were included.
Against
S.No.225, one more entry ‘3824 90 21’ has been added to the list of
existing entries. In description of goods, in place of existing (iii) Palladium
Addotove, words “palladium Additives” were included. In place of (iv)
Palladium replenisher, “Palladium electroplating salt” were included.
In S.No.234 , 4 more entries were added to the existing list of (x) making total
(xiv) entries, viz. (xi) Boric acid, (xii) Mono ethylene glycol (xiii) Marking
foil/stamping foil (xiv) Liquid paraffin.
One
more Sr. No. in the list has been added after existing S.No.234 – Against
New Sl.No.235, three entries were added, viz., (i) Plastic powder PBT (Poly brominated
Terephthalate) (ii) PCT (Poly chlorinated tephenyls) and (iii) Stanyl
21/2010-CUS
Makes amendments to the Notification No.21/2002-Cus dated 01.03.2002, by adding
additional Sl.Nos., 17A, 26A142A, 142B, 142C, 345A, 357A, 357B, 518A, 592, 593,
594, 595, 596, 597,598, 599, 600, 601, 602, 603. Makes additional conditions with
sl.nos.107 & 108. Rate of duty in respect of certain entries has also been
chaged.
22/2010-CUS
Exemption
to capital goods imported for use by IT/Electronics Industry - Makes inclusion
of additional entries in the existing notification No.25/2002-Customs dated 01.03.2002,
against Sl.Nos.2, 7,11 & 41.
23/2010-CUS
Exempts
from levy of Customs duty on parts, components and accessories for the manufacture
of mobile handsets; sub-parts for the manufacture of such parts and components;
and parts or components for the manufacture of battery charges and hands-free
headphones of such mobile handsets from the whole duty of customs leviable thereon
24/2010-CUS
Exemption to specified goods from special CVD in lieu of State Taxes/VAT - Makes
inclusion of additional entries in the existing notification No.20/2006-Customs
dated 01.03.2006, by incorporating new Sl. Nos. 8A, 9A, 78,69,70,71,72,73 74 (with
nil standard rate of duty)
25/2010-CUS
Exempts
from whole of customs duty leviable on the goods falling under Tariff item 2716
0000 i.e. Electrical energy, provided that nothing contained in the notification
shall apply to electrical energy falling under tariff item 27160000 removed from
a Special Economic Zone to the Domestic Tariff Area or non-processing areas of
Special Economic Zones.
26/2010-CUS
Exempts
from whole of customs duty leviable on the goods falling under Tariff item 2716
0000 i.e. Electrical energy.
27/2010-CUS
Exempts
from whole of customs duty leviable on – Motion pictures, music, gaming software
for use on gaming consoles printed or recorded on media subject to certain conditions.
28/2010-CUS
Exempts from levy of Customs duty on parts, components and accessories for the
manufacture of mobile handsets; sub-parts for the manufacture of such parts and
components; and parts or components for the manufacture of battery charges and
hands-free headphones of such mobile handsets from the whole of additional duty
of customs leviable thereon . This exemption will remain in force upto and inclusive
of 31.03.2011.
29/2010-CUS
Exempts
from levy of additional duty of customs on All pre-packaged goods intended for
retail sale in relation to which it is required, under the provisions of the Standards
of Weights and Measures Act, 1976, under certain chapter sub-headings ( @ Nil
standard rate of duty)
30/2010-CUS
exempts
all items of machinery, including prime moves, instruments, apparatus and appliances,
control gear and transmission equipment and auxiliary equipment (including those
required for testing and quality control) and components, required for the initial
setting up of a solar power generation project or facility, when imported into
India, from so much of the duty of customs leviable thereon which is specified
in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess
of 5% ad valorem
31/2010-CUS
Exempts from levy of Customs duty leviable thereon on packaged software or canned
software, falling under Chapter 85 of the First Schedule of the Customs Tariff
Act, 1975 .
Customs
NON-TARIFF Notifications
Notification
No.
18/2010-CUS
NT
27.02.2010
Amends
the Customs Tariff (Identification, Assessment and Collection of Anti-dumping
Duty on Dumped Articles and for Determination of Injury) Rules, 1995
--------------------------
Scope
of manufacture extended in chapters 68 and 76 of Central Excise Tariff Act, 1985
with immediate effect
No
Union Budget would be complete without a retrospective legislation or with a new
chapter note enlarging the definition of manufacture under the Central Excise
Act, 1944.
We
take a look at the winners of this year’s manufacturing contest.
The
Ninth Schedule to the Finance Bill, 2010 [clause 74 refers] has joint winners
and they are –
(A)
In chapter 68, the following note 3 has been inserted –
“3.
In relation to products of headings 6802 and 6810, the process of cutting or sawing
or sizing or polishing or any other process, for converting stone blocks into
slabs or tiles, shall amount to “manufacture”.”
(B)
In chapter 76, after numbering the existing note as note 1, a new note 2 is inserted
and it reads –
“2.
In relation to products of heading 7608, the process of drawing or redrawing shall
amount to “manufacture”.”
Background
(A)
In the case of Rajasthan State Electricity Board v. Associated JT 2000 (6) S.C.
522,the Supreme Court has held that cutting and polishing stone into slabs did
not amount to any manufacture of goods. These were the observations of the Bench
-
"....This
a part excavation of stones from a mine and thereafter cutting them and polishing
them into slabs did not amount to manufacture of goods. The word "manufacture"
generally and in the ordinary parlance in the absence of its definition in the
Act should be understood to mean bringing to existence a new and different article
having distinctive name, character or use after undergoing some transformation.
When no new product as such comes into existence, there is no process of manufacture.
The cutting and polishing stones into slabs is not a process of manufacture for
obvious and simple reason that no new and distinct commercial product came into
existence as the end product still remained stone and thus its original identity
continued...It is not possible to accept that excavation of stones and thereafter
cutting and polishing them into slabs resulted in any manufacture of goods."
Incidentally,
in the case of Aman Marble Industries,the Apex Court after relying on the above
decision held that “Cutting marble blocks into slabs and polishing them doesn't
amount to manufacture.”
Later,
So, if “marble” could get such a chapter note, “Stone blocks”
were not far away and thus products of heading 6802 and 6810 also get covered
by the recent amendment made by the Finance Bill, 2010.
(B)As
for amendments in Chapter 76 of the Central Excise Tariff, if others viz. drawing
or redrawing of pipes and tubes of headings 7304, 7305 and 7306 could get the
benefit of being anointed as a manufacturing activity, chapter 76 was not far.
Therefore,
chapter 76 also gets a chapter note notifying that in relation to products of
heading 7608, the process of drawing or redrawing shall amount to manufacture.
Last
but not the least, these amendments come into immediate effect as the relevant
clause 74 has been declared under the Provisional Collection of Taxes Act, 1931.
CUSTOMS
NOTIFICATION (N.T.) NO.17/2010-CUS (N.T.) Dated: February 24, 2010
Exchange
Rate wef from 1st March-2010 In exercise of the powers conferred by section
14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification
of the Government of India in the Ministry of Finance (Department of Revenue)
No.09/2010-CUSTOMS (N.T.), dated the 27 th January, 2010 vide number S.O.195(E),
dated the 27 th January, 2010, except as respects
things done or omitted to be done before such supersession, the Central Board
of Excise and Customs hereby determines that the rate of exchange of conversion
of each of the foreign currency specified in column (2) of each of Schedule I
and Schedule II annexed hereto into Indian currency or vice versa
shall, with effect from 1 st March, 2010 be the rate mentioned against
it in the corresponding entry in column (3) thereof, for the purpose of the said
section, relating to imported and export goods.
SERVICE
TAX NOTIFICATION NO .01/2010-ST. Dated: February 19, 2010
Service
Tax (Amendment) Rules, 2010. In exercise of the powers conferred by sub-sections
(1) and (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government
hereby makes the following rules further to amend the Service Tax Rules, 1994,
namely :- 1. Short title and commencement.- (1) These rules may be called
the Service Tax (Amendment) Rules, 2010. (2) They shall come into force on
the 1st day of April, 2010. 2. In the Service Tax Rules 1994 (hereinafter referred
to as the said rules), in rule 6, in sub-rule (2), for the proviso, the following
proviso, shall be substituted, namely:- "Provided that where an assessee
has paid a total service tax of rupees ten lakh or more including the amount paid
by utilisation of CENVAT credit, in the preceding financial year, he shall deposit
the service tax liable to be paid by him electronically, through internet banking." 3.
In the said rules, in rule 7, after sub-rule (2), the following proviso shall
be inserted, namely:- "Provided that where an assessee has paid a total
service tax of rupees ten lakh or more including the amount paid by utilisation
of CENVAT credit, in the preceding financial year, he shall file the return electronically".
F.
No. 137/13/2010 - CX.4
(Madan
Mohan) Under Secretary to Government of India
Note.-
The principal rules were published in the Gazette of India, Extraordinary, Part
II, section 3, sub-section (i), dated the 28th June, 1994 vide notification No.
2/94-Service Tax, dated the 28th June, 1994, [G.S.R. 546(E), dated the 28th June,
1994] and were last amended by notification No. 17/2006-Service Tax, dated 25th
April, 2006, [G.S.R. 247 (E), dated the 25th April, 2006, and vide notification
No. 10/2009 - Service Tax, dated the 17th March 2009, [G.S.R. 171 (E), dated the
17th March, 2009].
PUBLIC
NOTICE NO.45/2009-2014 Dated: February 23, 2010
Subject:
Export of CXL Concessions Sugar to European Union (EU) In exercise of the powers
conferred under Paragraphs 2.1, 2.4 and 2.29 of the Foreign Trade Policy, 2009-14,
the Director General of Foreign Trade hereby rescinds, with immediate effect,
Public Notice No. 41/2009-2014 dated 15th February, 2010. 2. Accordingly, allocation
of 10,000 MT of white sugar for export of CXL Concessions Sugar to European Union
(EU) for the fiscal year 2009 -10 made vide Public Notice No. 41/2009-2014 dated
15th February, 2010 stands withdrawn. 3. This issues in public interest.
F. No. 01/91/180/879/AM08/Export Cell)(Part)
(R.S.
Gujral) Director General of Foreign Trade And Ex-Officio Special Secretary
to the Govt. of India -------------------------------
PUBLIC
NOTICE NO.44/2009-2014 Dated: February 22, 2010
Subject:
Amendment of Para 2.63 (iii) of HBP Vol.I regarding RCMC In exercise of power
conferred under Paragraph 2.4 of the Foreign Trade Policy 2009-2014, the Director
General of Foreign Trade hereby makes the following amendment in 2.63 (iii) of
the Handbook of Procedure (Vol .I ) relating to Registering Authorities issuing
RCMC. Para 2.63 (iii) In case an export product is not covered by any Export
Promotion Council/Commodity Board, etc. RCMC in respect thereof is to be obtained
from FIEO. Further, in case of multi product exporters, not registered with any
EPC, where main line of business is not discernible, the exporter has an option
to obtain RCMC from Federation of Indian Exporters Organization (FIEO). This
issues in public interest. F.No. 01/94/180/77/AM08/PC2(B)
(R.S.Gujral) Director
General of Foreign Trade and Ex Officio Special Secretary to the Govt. of India
----------------------------
PUBLIC
NOTICE NO.43/2009-2014 Dated: February 22, 2010 Subject:- Amendment/modification
in SION S. No. C-1808. In exercise of the powers conferred under Paragraph
2.4 of the Foreign Trade Policy, 2004-09 and Paragraph 1.1 of the Handbook of
Procedures (Vol.1), the Director General of Foreign Trade hereby makes the following
amendments/corrections in the Handbook of Procedures, (Vol.2), 2009-2014, as amended
from time to time. 2. In the statement of Standard Input Output Norms (SION)
as contained in the Handbook of Procedures (Vol.2), 2009-2014, as amended from
time to time, amendments/corrections/modification at appropriate places as mentioned
in ANNEXURE "A" to this Public Notice are made. This issues in the
public interest. F.No.01/81/162/348/AM'10/DES-II
(R.
S. Gujral) DIRECTOR GENERAL OF FOREIGN TRADE
ANNEXURE
"A" TO THE PUBLIC NOTICE NO. 43 (RE-2010)/2009-2014 DATED: 22.2.2010
ENGINEERING
PRODUCTS AMENDMENTS/CORRECTIONS/MODIFICATION SION at Sl. No. C-1808 SION
Export item Quantity Import item Quantity C-1808 Dish Ends (Ellipsoidal or
Circular Shape) made of Non-Alloy/Alloy/ Stainless Steel 1 Kg. 1. Non- Alloy/Alloy/
Stainless Steel Plates/Coils of relevant grade 1.1 Kg./kg. content of the Steel
in the export product
POLICY
CIRCULAR NO.25 /2009-2014 Dated: February 22, 2010 Subject: Amendment
in Policy Circular No. 94 dated 16.6.2009 - Verification of new IEC. It has
been decided to amend para 2 of the above Policy Circular: 2. The physical
verification shall be carried out by a team of two officials which shall be led
by an officer not below the rank of FTDO. However in exceptional circumstances,
and with specific orders of the HOO in RA's a two member team comprising of one
FTDO/ Section Head/ LA and one UDC/ Senior LDC may carry out inspection of new
IEC numbers, as required in the para (1) of the Policy Circular No. 94 dated 16.6.2009. 3.
This issues with the approval of DGFT. File No. 01/93/180/14/AM-10/PC-2(B)
(Rajiv
Arora) Joint Director General of Foreign Trade
CUSTOMS
NOTIFICATION NO .14/ 2010-Cus. Dated: February 20, 2010
Anti-dumping
duty on import of Cold Rolled Flat products of Stainless Steel
Whereas,
in the matter of import of Cold Rolled Flat Products of Stainless Steel, (hereinafter
referred to as the subject goods), falling under heading 7219 of the First Schedule
to the Customs Tariff Act, 1975 (51 of 1975) and originating in, or exported from
the People's Republic of China (China PR), Korea, European Union, South Africa,
Taiwan (Chinese Taipei), Japan, Thailand and United States of America (USA) (
hereinafter referred to as the subject countries), the designated authority, vide
its preliminary findings vide notification No. 14/6/2008-DGAD dated 27 th March,
2009 , published in the Gazette of India, Extraordinary, Part I, Section 1, dated
the 27 th March, 2009 , had come to the conclusion that - (a) the subject
goods had been exported to India from the subject countries below its normal value;
(b) the domestic industry had suffered material injury; (c) the injury
had been caused by the dumped imports from subject countries ; and had recommended
imposition of provisional anti-dumping duty on all imports of the subject goods
originating in, or exported from, the subject countries; And whereas, on the
basis of the aforesaid findings of the designated authority, the Central Government
had imposed provisional anti-dumping duty on the subject goods vide notification
No. 38/2009-Customs, dated the 22 nd April, 2009 , published in Part II, Section
3, Sub-section ( i ) of the Gazette of India, Extraordinary, vide number G.S.R.
276 (E), dated the 22 nd April, 2009 as amended by notification No. 56/2009-Customs,
dated the 30 th May, 2009 , published in Part II, Section 3, Sub-section ( i )
of the Gazette of India, Extraordinary, vide number G.S.R. 370 (E), dated the
30 th May, 2009 ; And whereas, the designated authority, vide its final findings
vide notification No. 14/6/2008-DGAD dated 24 th November, 2009 , published in
the Gazette of India, Extraordinary, Part I, Section I, dated the 24 th November,
2009 , has come to the conclusion that - (a) the subject goods have been exported
to India from the subject countries below its normal value; (b) the domestic
industry has suffered material injury; (c) the injury has been caused by the
dumped imports from subject countries. and has recommended to impose definitive
anti-dumping duties on all imports of the subject goods, originating in, or exported
from, the subject countries; Now, therefore, in exercise of the powers conferred
by sub-sections (1) and (5) of section 9A of the said Customs Tariff Act, 1975,
and in pursuance of rules 18 and 20 of the Customs Tariff (Identification, Assessment
and Collection of Anti-dumping Duty on Dumped Articles and for Determination of
Injury) Rules, 1995, the Central Government, on the basis of the aforesaid final
findings of the designated authority, hereby imposes on the goods, the description
of which is specified in column (3) of the Table below, falling under the heading
of the First Schedule to the said Customs Tariff Act as specified in the corresponding
entry in column (2), the specification of which is specified in column (8) of
the said table, originating in the countries as specified in the corresponding
entry in column (4), and produced by the producers as specified in the corresponding
entry in column (6), when exported from the countries as specified in the corresponding
entry in column (5), by the exporters as specified in the corresponding entry
in column (7), and imported into India, an anti-dumping duty which shall be equal
to the amount specified in the corresponding entry in column(9), in the currency
as specified in the corresponding entry in column (11) and per unit of measurement
as specified in the corresponding entry in column (10) of the said Table. SI.
No Sub-Heading Description of Goods Country of Origin Country of Export Producer
Exporter Specification in series Amount Unit Currency (1) (2) (3) (4) (5) (6)
(7) (8) (9) (10) (11) 1 7219 Cold-rolled Flat products of stainless steel*
Spain Spain Acerinox S.A. Acerinox S.A. 300 569.70 MT US Dollar 400 12.74 MT
US Dollar 2 7219 Cold-rolled Flat products of stainless steel* Spain Malaysia
Acerinox S.A. Acerinox Malaysia Sdn Bhd 300 569.70 MT US Dollar 400 12.74 MT
US Dollar 3 7219 Cold-rolled Flat products of stainless steel* Belgium Belgium
Arcelor Mittal Arcelor Mittal 300 767.00 MT US Dollar 4 7219 Cold-rolled Flat
products of stainless steel* France France Arcelor Mittal Arcelor Mittal 300 643.01
MT US Dollar 400 473.43 MT US Dollar 5 7219 Cold-rolled Flat products of
stainless steel* Finland Finland Outokumpu Outokumpu 300 753.68 MT US Dollar 6
7219 Cold-rolled Flat products of stainless steel* Any Country in European Union
Any Country including countries in European Union Any Any 200 1035.93 MT US Dollar Any
Any 300 1646.32 MT US Dollar Any Any other than at S.No. 1, 2 and 4 above
400 542.36 MT US Dollar 7 7219 Cold-rolled Flat products of stainless steel*
Any Country including countries in European Union Any Country in European Union
Any Any 200 1035.93 MT US Dollar Any Any other than at S. No 1, 3, 4 and 5
above.. 300 1646.32 MT US Dollar Any Any other than at s no 1,2 and 4 above
400 542.36 MT US Dollar 8 7219 Cold-rolled Flat products of stainless steel*
South Africa South Africa Columbus Stainless (Pty) Ltd Columbus Stainless (Pty)
Ltd 300 710.27 MT US Dollar 400 451.08 MT US Dollar 9 7219 Cold-rolled
Flat products of stainless steel* South Africa Malaysia Columbus Stainless (Pty)
Ltd Acerinox Malavsia Sdn Bhd 300 710.27 MT US Dollar 400 451.08 MT US Dollar
10 7219 Cold-rolled Flat products of stainless steel* South Africa Any Any
Any 200 1144.95 MT US Dollar Any Any other than at S. No 8 and 9 above. 300
1461.41 MT US Dollar Any Any other than at S. No 8 and 9 above. 400 1054.67
MT US Dollar 11 7219 Cold-rolled Flat products of stainless steel* Any South
Africa Any Any 200 1144.95 MT US Dollar Any Any other than at S. No. 8 above.
300 1461.41 MT US Dollar Any Any other than at S. No. 8 above. 400 1054.67
MT US Dollar 12 7219 Cold-rolled Flat products of stainless steel* Korea RP
Korea RP POSCO POSTEEL 400 148.05 MT US Dollar 13 7219 Cold-rolled Flat products
of stainless steel* Korea RP Korea RP POSCO Samsung C&T Corporation 400 96.7
MT US Dollar 14 7219 Cold-rolled Flat products of stainless steel* Korea RP
Korea RP POSCO Hyundai Corp 400 210.93 MT US Dollar 15 7219 Cold-rolled Flat
products of stainless steel* Korea RP Korea RP POSCO SK Networks Ltd. (SK) 400
234.98 MT US Dollar 16 7219 Cold-rolled Flat products of stainless steel* Korea
RP Korea RP POSCO LG Intl. 400 74.88 MT US Dollar 17 7219 Cold-rolled Flat
products of stainless steel* Korea RP Korea RP POSCO Daewoo Intl. Corporation.
400 62.61 MT US Dollar 18 7219 Cold-rolled Flat products of stainless steel*
Korea RP Any Any Any 200 922.34 MT US Dollar Any Any 300 1364 MT US Dollar
Any Any except at S. No. 12 to 17 above. 400 721.74 MT US Dollar 19 7219
Cold-rolled Flat products of stainless steel* Any Korea RP Any Any 200 922.34
MT US Dollar Any Any 300 1364 MT US Dollar Any Any except at S. No. 12
to 17 above. 400 721.74 MT US Dollar 20 7219 Cold-rolled Flat products of
stainless steel* Chinese Taipei Chinese Taipei Yieh United Steel Corp Yieh United
Steel Corp 200 Nil MT US Dollar 300 489 MT US Dollar 21 7219 Cold-rolled
Flat products of stainless steel* Chinese Taipei Chinese Taipei Yieh Mau Corp
Yieh Mau Corp 300 505.96 MT US Dollar 400 138.05 MT US Dollar 22 7219 Cold-rolled
Flat products of stainless steel* Chinese Taipei Any Any Any other than at s.no
20 above 200 1293.62 MT US Dollar Any Any other than at S. No. 20 and 21 above.
300 2254.69 MT US Dollar Any Any other than at s.no 21 above 400 1446.17 MT
US Dollar 23 7219 Cold-rolled Flat products of stainless steel* Any Chinese
Taipei Any Any other than at s.no 20 above 200 1293.62 MT US Dollar Any Any
other than at S. No. 20 and 21 above. 300 2254.69 MT US Dollar Any Any other
than at s.no 21 above 400 1446.17 MT US Dollar 24 7219 Cold-rolled Flat products
of stainless steel* China PR China PR Lianzhong Stainless Steel Corp Lianzhong
Stainless Steel Corp 200 64.03 MT US Dollar 25 7219 Cold-rolled Flat products
of stainless steel* China PR China PR Shanxi Taigang Stainless Steel Co Ltd(STSS)
Shanxi Taigang Stainless Steel Co Ltd(STSS) 300 348.28 MT US Dollar 400
110 MT US Dollar 26 7219 Cold-rolled Flat products of stainless steel* China
PR Any Any Any other than 24 above 200 889.53 MT US Dollar Any Any other than
at S. No 25 above. 300 1916.59 MT US Dollar Any Any other than at S. No. 25
above. 400 1477.44 MT US Dollar 27 7219 Cold-rolled Flat products of stainless
steel* Any China PR Any Any other than 24 above 200 889.53 MT US Dollar Any
Any other than at S. No. 25 above 300 1916.59 MT US Dollar Any Any other than
at S. No. 25 above. 400 1477.44 MT US Dollar 28 7219 Cold-rolled Flat products
of stainless steel* Thailand Thailand Thainox Stainless Public Co Ltd Thainox
Stainless Public Co Ltd 300 252.18 MT US Dollar 400 189.63 MT US Dollar 29
7219 Cold-rolled Flat products of stainless steel* Thailand Any Any Any 200 958.63
MT US Dollar Any Any other than at S. No. 28 above. 300 1505.2 MT US Dollar
Any Any other than at s. no 28 above. 400 615.16 MT US Dollar 30 7219
Cold-rolled Flat products of stainless steel* Any Thailand Any Any 200 958.63
MT US Dollar Any Any other than at S. No. 28 above. 300 1505.2 MT US Dollar
Any Any other than at S. No. 28 above. 400 615.16 MT US Dollar 31 7219
Cold-rolled Flat products of stainless steel* USA USA Any Any 200 1216.63 MT US
Dollar 300 1560.81 MT US Dollar 400 1438.25 MT US Dollar 32 7219 Cold-rolled
Flat products of stainless steel* USA Any Any Any 200 1216.63 MT US Dollar 300
1560.81 MT US Dollar 400 1438.25 MT US Dollar 33 7219 Cold-rolled Flat
products of stainless steel* Any USA Any Any 200 1216.63 MT US Dollar 300 1560.81
MT US Dollar 400 1438.25 MT US Dollar * of the width of 600 mm upto 1250
mm of all series further worked than Cold rolled (cold reduced) with a thickness
of up to 4 mm. The subject goods will have the following exclusions from the
scope of the product on grounds as explained above: i. Grade AISI 420 High
carbon (0.28%-0.40%), Grade 420, Grade 430 BA supplied by M/s Thyssenkrupp Stainless
International, Germany, Grade AISI 441 and Grade AISI 443. ii. Duplex Stainless
Steel grades 2205 (S31803), 2304 (S32304), EN 1.4835, 1.4547, 1.4539, 1.4438,
1.4318 and 1.4833 and Ferritic Grades EN 1.4509 and 1.4512. iii. Product supplied
under Indian Patent no. 223848 in respect of goods comprising Low Nickel containing
Chromium-Nickel Manganese-Copper Austenitic Stainless steel and representing Grades
YU 1 and YU 4, produced and supplied by M/s Yieh United Steel Corp ( Yusco ) of
Chinese Taipei (Taiwan). 2. The anti-dumping duty imposed under this notification
shall be levied with effect from the date of imposition of the provisional anti-dumping
duty, and shall be payable in Indian currency. Explanation: - For the purposes
of this notification, rate of exchange applicable for the purposes of calculation
of such anti-dumping duty shall be the rate which is specified in the notification
of the Government of India, in the Ministry of Finance (Department of Revenue),
issued from time to time, in exercise of the powers conferred by section 14 of
the Customs Act, 1962 (52 of 1962) and the relevant date for the determination
of the rate of exchange shall be the date of presentation of the bill of entry
under section 46 of the said Customs Act. F. No: 354/87/2009- TRU (Pt.-1)
Prashant
Kumar Under Secretary to the Government of India
CUSTOMS
NOTIFICATION NO .13/2010 - Cus. Dated: February 19, 2010
Govt
grants Cus exempt to various types of sports goods, GPS Communication systems,
Satellite phones G.S.R. 94 (E).- In exercise of the powers conferred by sub-section
(1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government,
on being satisfied that it is necessary in the public interest so to do, hereby
exempts the goods of the description specified in column (2) of the Table below
and falling under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975),
when imported into India for the purpose of organising the Common Wealth Games,
2010(hereinafter referred as Games), from the whole of the duty of customs leviable
thereon which is specified in the said First Schedule and from the whole of the
additional duty leviable thereon under section 3 of the said Customs Tariff Act,
subject to the conditions specified in the corresponding entry in column (3) of
the said Table. TABLE S.No Description of goods Conditions (1) (2)
(3) 1. (a) All sports goods, sports equipment and sports requisites; fitness
equipments; team uniform/clothing; spares, accessories and consumables of the
same including ammunition for shooting events; (b) Doping control equipment,
Satellite phones/GPS, paging communication systems and other communication equipments;
video/plasma screen, electronic score board for display; time control devices,
stop watches; timing, scoring and result management systems; marquees; tents .
(a)Imported by the Organising Committee of the Common Wealth Games , 2010,
National sports federations in relation to Games, 2010; (b) the importer,
at the time of clearance of the goods, produces a certificate to the Assistant
Commissioner or Deputy Commissioner of Customs as the case may be, from the Joint
Director General (Coordination) or Director (Coordination) of the Organising Committee
of the Games, 2010, indicating- (i) the name and address of the importer and
the description, quantity and value of the said goods; and (ii) that the said
goods are required for the purpose specified in condition (a) above; and (c)
the importer, at the time of clearance of the goods, furnishes an undertaking
that all such goods shall be consumed or re-exported within three months from
the conclusion of the Games or shall be handed over to the Sports Authority of
India or Delhi Development Authority or Government of National Capital Territory
of Delhi . 2. Furniture and fixtures/ fittings, power generation and distribution
systems, air conditioning equipment which would be needed to be imported as per
requirement of Games under 'Overlays'. (a)Imported by the Organising Committee
of the Games, 2010 or National Sports federations in relation to Common Wealth
Games, 2010; (b) the importer, at the time of clearance of the goods, produces
a certificate to the Assistant Commissioner or Deputy Commissioner of Customs,
as the case may be from the Joint Director General (Coordination) / Director (Coordination)
of the Organizing Committee of the Games, 2010, indicating- (i) the name and
address of the importer and the description, quantity and value of the said goods;
and (ii) that the said goods are required for the purpose specified in condition
(a) above; and (c) the importer, at the time of clearance of the goods, furnishes
an undertaking that all such goods shall be re-exported within three months from
the conclusion of the Games. 3. (a) All sports goods, sports equipment and
sports requisites; spares, accessories and consumables of the same, (b) Food
stuff, energy drinks, isotonic, tonic water(including alcoholic drinks), (c)
pharmaceuticals and medical consumables, (c) fitness equipments; team uniform/
clothing, (d) dining/kitchen items, office consumables stationery and gift
items, souvenirs, mementoes, (e) Goods for display / exhibition / stalls /reception
(a)Imported by Common Wealth Games Federation Members or Common Wealth Games Associations
or participating athletes in relation to Games, 2010; (b) the importer, at
the time of clearance of the goods, produces a certificate to the Assistant Commissioner
or Deputy Commissioner of Customs, as the case may be from the Joint Director
General (Coordination) or Director (Coordination) of the Organizing Committee
of the Commonwealth Games, 2010, indicating- (i) the name and address of the
importer and the description, quantity and value of the said goods; and (ii)
that the said goods are required for the purpose specified in condition (a) above;
(c) the importer, at the time of clearance of the goods, furnishes an undertaking
that,- (i) all such goods, excluding gift items, souvenirs, mementoes and
goods which have been consumed, shall be re-exported within three months from
the conclusion of the games ; and (ii) a utilisation certificate for the goods
consumed shall be furnished from the Joint Director General (Coordination) or
Director (Coordination) of the Organizing Committee of the Games, 2010. 4.
Broad casting equipment (a)Imported by Prasar Bharti or broad casting right holders
as per Agreement between the Organising Committee of Games, 2010 and Prasar Bharti
in relation to Games, 2010; (b) the importer, at the time of clearance of
the goods, produces a certificate to the Assistant Commissioner or Deputy Commissioner
of Customs, as the case may be, from the Joint Director General (Coordination)
or Director (Coordination) of the Organizing Committee of the Games 2010, indicating-
(i) the name and address of the importer and the description, quantity and
value of the said goods; and (ii) that the said goods are required for the
purpose specified in condition (a) above; and (c) the importer, at the time
of clearance of the goods, furnishes an undertaking that all such goods shall
be re-exported within three months from the conclusion of the Games. 5. Arms
and Ammunition of the following description: o Rifles- .22 Calibres (should
have at least an outside barrel diameter of 10 mm.) o Pistols - .22 and .32
Calibres (barrels should be measured from the Breach point) o Air Rifles/Pistols
- 4.5 mm /0.177 Calibers o Shot Guns - 12 bore (should be "Ventilated
Rib" and "Single Sighting Planes") o Air pellets - Diablo type
(i.e. with flat nose and met round or painted nose) o Ammunition- 12 bore
cartridges,.27 air pellets,.22 bore rapid fire (shot) cartridges,.22 bore pistol
match standard sports,.32 bore wad -cutters,.62 Full bore Ammunition. o .32
bore revolver(barrel length should not be less than 41/2" and measurements
are to be taken from the end of the cylinder holding the cartridge) o .22
bore revolver- (ban-el length same as above) o Telescope (a)Imported by Common
Wealth Games Federation Members or Common Wealth Games Associations or participating
athletes in relation to Games, 2010; (b) the importer, at the time of clearance
of the goods, produces a certificate to the Assistant Commissioner or Deputy Commissioner
of Customs as the case may be from the Joint Director General (Coordination) or
Director (Coordination) of the Organizing Committee of the Commonwealth Games
2010, indicating- (i) the name and address of the importer and the description,
quantity and value of the said goods; and (ii) that the said goods are required
for the purpose specified in condition (a) above; (c) the importer, at the
time of clearance of the goods, furnishes an undertaking that,- (i) all such
goods other than those consumed during the shooting events, shall be re-exported
at the time of final departure of the participating athletes; (ii) a utilisation
certificate for the goods consumed shall be furnished from the Joint Director
General (Coordination) or Director (Coordination) of the Organizing Committee
of the Games, 2010. and (d) Import of such arms and ammunition shall be subject
to the applicable licensing conditions imposed by the Directorate General of Foreign
Trade and approvals of Ministry of Home Affairs. [F. No.354/12/2010-TRU]
(Prashant
Kumar) Under Secretary to the Government of India
PUBLIC
NOTICE NO.42/2009-14 Dated: February 16, 2010 Subject: Appendix 11B
for Value addition in terms of paragraph 4.1.6 of FTP In exercise of powers
conferred under Paragraph 2.4 of the Foreign Trade Policy, 2009-14, the Director
General of Foreign Trade hereby makes the following amendments in the Handbook
of Procedures (Vol.1), 2009-14:- 1. A new Appendix i.e., Appendix 11B related
to “Value addition Norms (below 15%) for specific product(s) under Advance
Authorisation Scheme” stands added in the Appendices and Aayat Niryat Forms
in the HBP, v1, as per the Appendix attached to this Public Notice. 2. In
the Contents in the Appendices and Aayat Niryat Forms in the HBP, v1, following
shall be added: 11B. Value addition Norms (below 15%) for specific product(s)
under Advance Authorisation Scheme. This issues in public interest. File
No. 01/94/180/FTP/09-10/AA/AM10/PC4)
(R.S.
Gujral ) Director General of Foreign Trade and Ex-Officio Special Secretary
to the Government of India
Appended
to Public Notice No. 42 dated 16 th February, 2010 . Appendix 11B Value
addition Norms (below 15%) for specific product(s) under Advance Authorisation
scheme (Please see paragraph 4.1.6 of FTP, 2009-14, as amended from time to
time)
CUSTOMS
CIRCULAR NO.4/2010-Cus. Dated: February 15, 2010 Subject: Carriage
of domestic cargo on international flights - regarding. Reference is invited
to the Board's Circular No.15/99-Customs dated 22.3.1999, whereby the facility
of carriage of domestic cargo between domestic airports on international flights
was extended to M/s. Air India. In this regard, the Board had received certain
requests for providing such a facility by other private airlines also.
2.
The Board had examined the matter in consultation with various Customs field formations.
It was seen that initially when the facility was first extended, M/s. Air India
was the only airline that was undertaking carriage of both international and domestic
cargo. However, presently a number of other private airlines have also started
providing such a service. Therefore, it was felt that the facility of carriage
of domestic cargo in international flights between two domestic airports may be
allowed to other private airlines as well, subject to fulfilment of certain safeguards
so as to prevent any misuse.
3.
In this regard, it is stated that the Board has decided to allow domestic private
airlines as well as M/s. Air India and Indian Airlines, to carry domestic cargo
between domestic airports on their international flights subject to the fulfilment
of the following conditions: (i) Separate space shall be assigned by the airlines
or custodian in the cargo complex / area of the airport for receipt and storage
of domestic cargo till these are delivered or dispatched. (ii) Domestic cargo
will be received by the airlines in the designated area during the normal working
hours of Customs at the respective airport. (iii) The containers/ Unit Load
Devices (ULDs) used for carrying the domestic or international cargo shall be
clearly marked or coloured or strapped, for its identification, distinction at
the time of loading/ unloading, transportation. (iv) Domestic tags shall be
prepared for identification of the domestic cargo with separate colour coding. (v)
Loading or unloading of domestic cargo in any international flight/ aircraft shall
be carried under the supervision of Customs officers. (vi) Domestic and international
cargo will be loaded separately, and shall be carried in hold area onboard the
aircraft distinctly identifying these cargoes. (vii) On arrival of the domestic
cargo, at the destination airport, the airlines shall make necessary arrangements
to deliver the domestic cargo. (viii) In respect of transhipment of international
cargo by airlines, they shall be required to execute necessary bond and bank guarantee
as prescribed vide Circular No.78/2001-Customs dated 7.12.2001. Further, those
persons who fulfill the threshold limit of annual transshipment volume specified
shall be exempt from the requirement of furnishing bank guarantee as specified
Circular No.45/2005-Customs dated 24.11.2005.
Accordingly,
no separate bond or bank guarantee shall be required in respect of domestic cargo.
In addition, transshipment procedure as specified in Board's Circular No. 06/2007-Cus
dated 22.01.2007 may be strictly adhered to.
4.
In case of any violation of the conditions prescribed here above or by any other
regulations providing for the manner in which the imported goods/ export goods
shall be received, stored, delivered or otherwise handled in a customs area, necessary
action may be taken against the person including withdrawal of the facility and
imposition of penalty under the Handling of Cargo in Customs Areas Regulations,
2009.
5.
In view of the above, the jurisdictional Commissioner of Customs are requested
to implement the above said procedure, while permitting the facility of carriage
of domestic cargo between domestic airports on international flights by private
airlines as well as M/s Air India and Indian Airlines. Difficulties, if any, experienced
while implementing the above matter may be taken up for appropriate action with
the Board.
6.
The Board's Circular No.15/1999-Customs dated 22.3.1999 stands superseded by the
aforesaid Circular
7.
The Commissioner of Customs may issue a Public Notice bringing the above to the
notice of the trade and industry. F.No.450/122/2009-Cus.IV
BY
Circular No.15/99-Customs dated 22.3.1999, Board had extended the facility of
carriage of domestic cargo between domestic airports on international flights
to Air India . Now private airlines also want this facility. Board has
noticed that initially when the facility was first extended, Air India was the
only airline that was undertaking carriage of both international and domestic
cargo. However, now a number of other private airlines have also started providing
such a service. Therefore, it was felt that the facility of carriage of domestic
cargo in international flights between two domestic airports may be allowed to
other private airlines as well, subject to fulfilment of certain safeguards so
as to prevent any misuse. So the Board has decided to allow domestic private
airlines as well as M/s. Air India and Indian Airlines, [are they not merged?]
to carry domestic cargo between domestic airports on their international flights
subject to the fulfilment of the following conditions: (i) Separate space
shall be assigned by the airlines or custodian in the cargo complex / area of
the airport for receipt and storage of domestic cargo till these are delivered
or dispatched. (ii) Domestic cargo will be received by the airlines in the
designated area during the normal working hours of Customs at the respective airport.
(iii) The containers/ Unit Load Devices (ULDs) used for carrying the domestic
or international cargo shall be clearly marked or coloured or strapped, for its
identification, distinction at the time of loading/ unloading, transportation.
(iv) Domestic tags shall be prepared for identification of the domestic cargo
with separate colour coding. (v) Loading or unloading of domestic cargo in
any international flight/ aircraft shall be carried under the supervision of Customs
officers. (vi) Domestic and international cargo will be loaded separately,
and shall be carried in hold area onboard the aircraft distinctly identifying
these cargoes. (vii) On arrival of the domestic cargo, at the destination
airport, the airlines shall make necessary arrangements to deliver the domestic
cargo. (viii) In respect of transhipment of international cargo by airlines,
they shall be required to execute necessary bond and bank guarantee as prescribed
vide Circular No.78/2001-Customs dated 7.12.2001. Further, those persons who fulfill
the threshold limit of annual transshipment volume specified shall be exempt from
the requirement of furnishing bank guarantee as specified Circular No.45/2005-Customs
dated 24.11.2005. Accordingly, no separate bond or bank guarantee shall be required
in respect of domestic cargo. In addition, transshipment procedure as specified
in Board's Circular No. 06/2007-Cus dated 22.01.2007 may be strictly adhered to.
Jurisdictional Commissioner of Customs are requested to implement the above
said procedure, while permitting the facility of carriage of domestic cargo between
domestic airports on international flights by private airlines as well as M/s
Air India and Indian Airlines. Difficulties, if any, experienced while implementing
the above matter may be taken up for appropriate action with the Board.
Subject:
Carriage of domestic cargo on international flights - regarding. Reference
is invited to the Board's Circular No.15/99-Customs dated 22.3.1999, whereby the
facility of carriage of domestic cargo between domestic airports on international
flights was extended to M/s. Air India. In this regard, the Board had received
certain requests for providing such a facility by other private airlines also.
2.
The Board had examined the matter in consultation with various Customs field formations.
It was seen that initially when the facility was first extended, M/s. Air India
was the only airline that was undertaking carriage of both international and domestic
cargo. However, presently a number of other private airlines have also started
providing such a service. Therefore, it was felt that the facility of carriage
of domestic cargo in international flights between two domestic airports may be
allowed to other private airlines as well, subject to fulfilment of certain safeguards
so as to prevent any misuse.
3.
In this regard, it is stated that the Board has decided to allow domestic private
airlines as well as M/s. Air India and Indian Airlines, to carry domestic cargo
between domestic airports on their international flights subject to the fulfilment
of the following conditions: (i) Separate space shall be assigned by the airlines
or custodian in the cargo complex / area of the airport for receipt and storage
of domestic cargo till these are delivered or dispatched. (ii) Domestic cargo
will be received by the airlines in the designated area during the normal working
hours of Customs at the respective airport. (iii) The containers/ Unit Load
Devices (ULDs) used for carrying the domestic or international cargo shall be
clearly marked or coloured or strapped, for its identification, distinction at
the time of loading/ unloading, transportation. (iv) Domestic tags shall be
prepared for identification of the domestic cargo with separate colour coding. (v)
Loading or unloading of domestic cargo in any international flight/ aircraft shall
be carried under the supervision of Customs officers. (vi) Domestic and international
cargo will be loaded separately, and shall be carried in hold area onboard the
aircraft distinctly identifying these cargoes. (vii) On arrival of the domestic
cargo, at the destination airport, the airlines shall make necessary arrangements
to deliver the domestic cargo. (viii) In respect of transhipment of international
cargo by airlines, they shall be required to execute necessary bond and bank guarantee
as prescribed vide Circular No.78/2001-Customs dated 7.12.2001. Further, those
persons who fulfill the threshold limit of annual transshipment volume specified
shall be exempt from the requirement of furnishing bank guarantee as specified
Circular No.45/2005-Customs dated 24.11.2005. Accordingly, no separate bond or
bank guarantee shall be required in respect of domestic cargo. In addition, transshipment
procedure as specified in Board's Circular No. 06/2007-Cus dated 22.01.2007 may
be strictly adhered to.
4.
In case of any violation of the conditions prescribed here above or by any other
regulations providing for the manner in which the imported goods/ export goods
shall be received, stored, delivered or otherwise handled in a customs area, necessary
action may be taken against the person including withdrawal of the facility and
imposition of penalty under the Handling of Cargo in Customs Areas Regulations,
2009.
5.
In view of the above, the jurisdictional Commissioner of Customs are requested
to implement the above said procedure, while permitting the facility of carriage
of domestic cargo between domestic airports on international flights by private
airlines as well as M/s Air India and Indian Airlines. Difficulties, if any, experienced
while implementing the above matter may be taken up for appropriate action with
the Board. 6. The Board's Circular No.15/1999-Customs dated 22.3.1999 stands
superseded by the aforesaid Circular
7.
The Commissioner of Customs may issue a Public Notice bringing the above to the
notice of the trade and industry.
F.No.450/122/2009-Cus.IV
(Navraj
Goyal) Under Secretary
CUSTOMS
NOTIFICATION NO.9/2010 - Cus. Dated: February 11, 2010
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002 which
was published in the Gazette of India, Extraordinary, vide number G.S.R. 118(E),
dated the 1st March, 2002, namely :- In the said notification - (A) in condition
number 103A, after clause (c), the following clause shall be inserted, namely:- "(d)
the aircraft is imported by the Airports Authority of India for flight calibration
purposes and at the time of importation, the Airports Authority of India furnishes
an undertaking to the Deputy Commissioner of Customs or Assistant Commissioner
of Customs, as the case may be, that :- a. the said aircraft shall be used
for flight calibration purposes only and in the event of their failure to use
the imported aircraft for the specified purpose, they shall pay, on demand, an
amount equal to the duty payable on the said aircraft but for the exemption under
this notification; and b. the said aircraft shall not be sold or transferred
to any other entity" (B) in condition number 105, after clause (ii), the
following clause shall be inserted, namely:- "(iia) imported for servicing,
repair or maintenance of aircraft imported or procured by the Airports Authority
of India for flight calibration purposes" F. No. 356/11/2007-TRU
[Prashant
Kumar] Under Secretary to the Government of India
PUBLIC
NOTICE NO.41/2009-14 Dated: February 15, 2010
Export
of of CXL Concessions Sugar to European Union (EU) for the fiscal year 2009 -10
(October 2009 to September 2010). In exercise of the powers conferred under
Paragraphs 2.1, 2.4 and 2.29 of the Foreign Trade Policy, 2009-14, the Director
General of Foreign Trade hereby allocates a total quantity of 10,000 MTs (Ten
thousand metric tonnes) of white Sugar for export of CXL Concessions Sugar to
European Union (EU) for the fiscal year 2009 -10 (October, 2009 to September,
2010). 2. This refers to HS Code No. 1701 00 00 in the Schedule-2 of ITC (HS)
Classification of Export and Import Items, 2009-2014 under which M/s Indian Sugar
Exim Corporation Limited, New Delhi is the designated agency for export of Sugar
to EU under Preferential Quota 3. As regards special certification requirements,
entries to be made in document EUR and GSP are as follows:- (i) CXL Concessions
Sugar "[Application of Regulation (EC) No. 891/2009 under Schedule CXL
(European Communities). CXL Concessions Sugar Serial No. 09.4321]". 4.
EUR Form is to be endorsed by Customs at the Port of Shipment and the GSP Certificate
by Export Inspection Agency/Directorate General of Foreign Trade. 5. This
issues in public interest. F. No. 01/91/180/879/AM08/Export Cell)(Part)
(R.S.
Gujral ) Director General of Foreign Trade And Ex-Officio Special Secretary
to the Govt. of India
BY
Circular No.15/99-Customs dated 22.3.1999, Board had extended the facility of
carriage of domestic cargo between domestic airports on international flights
to Air India . Now private airlines also want this facility. Board has
noticed that initially when the facility was first extended, Air India was the
only airline that was undertaking carriage of both international and domestic
cargo. However, now a number of other private airlines have also started providing
such a service. Therefore, it was felt that the facility of carriage of domestic
cargo in international flights between two domestic airports may be allowed to
other private airlines as well, subject to fulfilment of certain safeguards so
as to prevent any misuse. So the Board has decided to allow domestic private
airlines as well as M/s. Air India and Indian Airlines, [are they not merged?]
to carry domestic cargo between domestic airports on their international flights
subject to the fulfilment of the following conditions: (i) Separate space
shall be assigned by the airlines or custodian in the cargo complex / area of
the airport for receipt and storage of domestic cargo till these are delivered
or dispatched. (ii) Domestic cargo will be received by the airlines in the
designated area during the normal working hours of Customs at the respective airport.
(iii) The containers/ Unit Load Devices (ULDs) used for carrying the domestic
or international cargo shall be clearly marked or coloured or strapped, for its
identification, distinction at the time of loading/ unloading, transportation.
(iv) Domestic tags shall be prepared for identification of the domestic cargo
with separate colour coding. (v) Loading or unloading of domestic cargo in
any international flight/ aircraft shall be carried under the supervision of Customs
officers. (vi) Domestic and international cargo will be loaded separately,
and shall be carried in hold area onboard the aircraft distinctly identifying
these cargoes. (vii) On arrival of the domestic cargo, at the destination
airport, the airlines shall make necessary arrangements to deliver the domestic
cargo. (viii) In respect of transhipment of international cargo by airlines,
they shall be required to execute necessary bond and bank guarantee as prescribed
vide Circular No.78/2001-Customs dated 7.12.2001. Further, those persons who fulfill
the threshold limit of annual transshipment volume specified shall be exempt from
the requirement of furnishing bank guarantee as specified Circular No.45/2005-Customs
dated 24.11.2005. Accordingly, no separate bond or bank guarantee shall be required
in respect of domestic cargo. In addition, transshipment procedure as specified
in Board's Circular No. 06/2007-Cus dated 22.01.2007 may be strictly adhered to.
Jurisdictional Commissioner of Customs are requested to implement the above
said procedure, while permitting the facility of carriage of domestic cargo between
domestic airports on international flights by private airlines as well as M/s
Air India and Indian Airlines. Difficulties, if any, experienced while implementing
the above matter may be taken up for appropriate action with the Board.
Subject:
Carriage of domestic cargo on international flights - regarding. Reference
is invited to the Board's Circular No.15/99-Customs dated 22.3.1999, whereby the
facility of carriage of domestic cargo between domestic airports on international
flights was extended to M/s. Air India. In this regard, the Board had received
certain requests for providing such a facility by other private airlines also.
2.
The Board had examined the matter in consultation with various Customs field formations.
It was seen that initially when the facility was first extended, M/s. Air India
was the only airline that was undertaking carriage of both international and domestic
cargo. However, presently a number of other private airlines have also started
providing such a service. Therefore, it was felt that the facility of carriage
of domestic cargo in international flights between two domestic airports may be
allowed to other private airlines as well, subject to fulfilment of certain safeguards
so as to prevent any misuse.
3.
In this regard, it is stated that the Board has decided to allow domestic private
airlines as well as M/s. Air India and Indian Airlines, to carry domestic cargo
between domestic airports on their international flights subject to the fulfilment
of the following conditions: (i) Separate space shall be assigned by the airlines
or custodian in the cargo complex / area of the airport for receipt and storage
of domestic cargo till these are delivered or dispatched. (ii) Domestic cargo
will be received by the airlines in the designated area during the normal working
hours of Customs at the respective airport. (iii) The containers/ Unit Load
Devices (ULDs) used for carrying the domestic or international cargo shall be
clearly marked or coloured or strapped, for its identification, distinction at
the time of loading/ unloading, transportation. (iv) Domestic tags shall be
prepared for identification of the domestic cargo with separate colour coding. (v)
Loading or unloading of domestic cargo in any international flight/ aircraft shall
be carried under the supervision of Customs officers. (vi) Domestic and international
cargo will be loaded separately, and shall be carried in hold area onboard the
aircraft distinctly identifying these cargoes. (vii) On arrival of the domestic
cargo, at the destination airport, the airlines shall make necessary arrangements
to deliver the domestic cargo. (viii) In respect of transhipment of international
cargo by airlines, they shall be required to execute necessary bond and bank guarantee
as prescribed vide Circular No.78/2001-Customs dated 7.12.2001. Further, those
persons who fulfill the threshold limit of annual transshipment volume specified
shall be exempt from the requirement of furnishing bank guarantee as specified
Circular No.45/2005-Customs dated 24.11.2005. Accordingly, no separate bond or
bank guarantee shall be required in respect of domestic cargo. In addition, transshipment
procedure as specified in Board's Circular No. 06/2007-Cus dated 22.01.2007 may
be strictly adhered to.
4.
In case of any violation of the conditions prescribed here above or by any other
regulations providing for the manner in which the imported goods/ export goods
shall be received, stored, delivered or otherwise handled in a customs area, necessary
action may be taken against the person including withdrawal of the facility and
imposition of penalty under the Handling of Cargo in Customs Areas Regulations,
2009.
5.
In view of the above, the jurisdictional Commissioner of Customs are requested
to implement the above said procedure, while permitting the facility of carriage
of domestic cargo between domestic airports on international flights by private
airlines as well as M/s Air India and Indian Airlines. Difficulties, if any, experienced
while implementing the above matter may be taken up for appropriate action with
the Board. 6. The Board's Circular No.15/1999-Customs dated 22.3.1999 stands
superseded by the aforesaid Circular
7.
The Commissioner of Customs may issue a Public Notice bringing the above to the
notice of the trade and industry. F.No.450/122/2009-Cus.IV (Navraj Goyal) Under
Secretary
CUSTOMS
NOTIFICATION NO.9/2010 - Cus. Dated: February 11, 2010
Govt
grants custom exemption to import of aircraft for calibrations purposes In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002 which
was published in the Gazette of India, Extraordinary, vide number G.S.R. 118(E),
dated the 1st March, 2002, namely :- In the said notification - (A) in condition
number 103A, after clause (c), the following clause shall be inserted, namely:- "(d)
the aircraft is imported by the Airports Authority of India for flight calibration
purposes and at the time of importation, the Airports Authority of India furnishes
an undertaking to the Deputy Commissioner of Customs or Assistant Commissioner
of Customs, as the case may be, that :- a. the said aircraft shall be used
for flight calibration purposes only and in the event of their failure to use
the imported aircraft for the specified purpose, they shall pay, on demand, an
amount equal to the duty payable on the said aircraft but for the exemption under
this notification; and b. the said aircraft shall not be sold or transferred
to any other entity" (B) in condition number 105, after clause (ii), the
following clause shall be inserted, namely:- "(iia) imported for servicing,
repair or maintenance of aircraft imported or procured by the Airports Authority
of India for flight calibration purposes"
F.
No. 356/11/2007-TRU
[Prashant
Kumar] Under Secretary to the Government of India
CUSTOMS
NOTIFICATION NO.9/2010 - Cus. Dated: February 11, 2010
In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002 which
was published in the Gazette of India, Extraordinary, vide number G.S.R. 118(E),
dated the 1st March, 2002, namely :- In the said notification - (A) in condition
number 103A, after clause (c), the following clause shall be inserted, namely:- "(d)
the aircraft is imported by the Airports Authority of India for flight calibration
purposes and at the time of importation, the Airports Authority of India furnishes
an undertaking to the Deputy Commissioner of Customs or Assistant Commissioner
of Customs, as the case may be, that :- a. the said aircraft shall be used
for flight calibration purposes only and in the event of their failure to use
the imported aircraft for the specified purpose, they shall pay, on demand, an
amount equal to the duty payable on the said aircraft but for the exemption under
this notification; and b. the said aircraft shall not be sold or transferred
to any other entity" (B) in condition number 105, after clause (ii), the
following clause shall be inserted, namely:- "(iia) imported for servicing,
repair or maintenance of aircraft imported or procured by the Airports Authority
of India for flight calibration purposes" F. No. 356/11/2007-TRU [Prashant
Kumar] Under Secretary to the Government of India
PUBLIC
NOTICE NO.41/2009-14 Dated: February 15, 2010
Export
of of CXL Concessions Sugar to European Union (EU) for the fiscal year 2009 -10
(October 2009 to September 2010). In exercise of the powers conferred under
Paragraphs 2.1, 2.4 and 2.29 of the Foreign Trade Policy, 2009-14, the Director
General of Foreign Trade hereby allocates a total quantity of 10,000 MTs (Ten
thousand metric tonnes) of white Sugar for export of CXL Concessions Sugar to
European Union (EU) for the fiscal year 2009 -10 (October, 2009 to September,
2010). 2. This refers to HS Code No. 1701 00 00 in the Schedule-2 of ITC (HS)
Classification of Export and Import Items, 2009-2014 under which M/s Indian Sugar
Exim Corporation Limited, New Delhi is the designated agency for export of Sugar
to EU under Preferential Quota 3. As regards special certification requirements,
entries to be made in document EUR and GSP are as follows:- (i) CXL Concessions
Sugar "[Application of Regulation (EC) No. 891/2009 under Schedule CXL
(European Communities). CXL Concessions Sugar Serial No. 09.4321]". 4.
EUR Form is to be endorsed by Customs at the Port of Shipment and the GSP Certificate
by Export Inspection Agency/Directorate General of Foreign Trade. 5. This
issues in public interest. F. No. 01/91/180/879/AM08/Export Cell)(Part) (R.S.
Gujral ) Director General of Foreign Trade And Ex-Officio Special Secretary
to the Govt. of India
CUSTOMS
NOTIFICATION NO.9/2010 - Cus. Dated: February 11, 2010
Govt
grants custom exemption to import of aircraft for calibrations purposes In
exercise of the powers conferred by sub-section (1) of section 25 of the Customs
Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002 which
was published in the Gazette of India, Extraordinary, vide number G.S.R. 118(E),
dated the 1st March, 2002, namely :- In the said notification - (A) in condition
number 103A, after clause (c), the following clause shall be inserted, namely:- "(d)
the aircraft is imported by the Airports Authority of India for flight calibration
purposes and at the time of importation, the Airports Authority of India furnishes
an undertaking to the Deputy Commissioner of Customs or Assistant Commissioner
of Customs, as the case may be, that :- a. the said aircraft shall be used
for flight calibration purposes only and in the event of their failure to use
the imported aircraft for the specified purpose, they shall pay, on demand, an
amount equal to the duty payable on the said aircraft but for the exemption under
this notification; and b. the said aircraft shall not be sold or transferred
to any other entity" (B) in condition number 105, after clause (ii), the
following clause shall be inserted, namely:- "(iia) imported for servicing,
repair or maintenance of aircraft imported or procured by the Airports Authority
of India for flight calibration purposes" F. No. 356/11/2007-TRU
[Prashant
Kumar] Under Secretary to the Government of India
