Income Tax raids the premises of several Top Notch Builders in all-India Operations-Amrapali and Paras Buildtech also on hit list of Income Tax-Cash of Rs 22 Crore recovered SC rules stock exchange card is license eligible for depreciation under Section 32 Partner of Luthra & Luthra Vineet Aneja resigns-Partner of amarchand Mangaldas Himanshu Narayan also resigns SC rules MAT companies are not subject to 80HHC(1B) CBDT extends the time limit for filing ITR-V forms relating to income tax returns filed electronically for Assessment Year 2009-10 up to 31st December 2010 or 120 days from the date of filing, whichever is later-ITR-V is accepted only at the Centralized Processing Center of the Income Tax Department at Bengalore by ordinary or speed post Major Setback for tax avoidance on merger & acquisition deals-HC rules a mere difficulty in compliance or in enforcement is not a ground to avoid observance-the transaction in question had a significant nexus with India-The essence of the transaction was a change in the controlling interest in HEL which constituted a source of income in India-The transaction between the parties covered within its sweep, diverse rights and entitlements-The Petitioner by the diverse agreements that it entered into has a nexus with Indian jurisdiction-the proceedings which have been initiated by the Income Tax Authorities cannot be held to lack jurisdiction-AIT-2010-381-HC concessional rate of duty on electrical energy removed from a SEZ into DTA or non processing areas of SEZ-Customs Tariff Notification No.91 where an assessee has paid duty of excise on wires drawn from wire rods, falling under Chapter 72, the CENVAT credit taken or utilized, of the duty or tax or cess paid on inputs , capital goods and input services used in the making of the said final product, shall not be required to be reversed-Central Excise Non-Tariff Notification No.28 when once the competent authority viz., the Assistant Commissioner was satisfied with the factum of export that the final products made by the appellant, his failure to exercise the discretionary power vested in him in the absence of any other valid reasons cannot be sustained-the appellant is entitled for rebate applied for-AIT-2010-377-HC Courier Regulations for the manual and the electronic mode-Customs Circular No.33 Outdoor catering service provided by a NGO, under Mid-Day Meal Scheme, exempted from service tax-Service Tax Notification No.47 Even if the goods belong to same entry, manufacture does take place if new identifiable/marketable goods known in market emerge due to operation conducted-the process of ironing applied to the stiched brassieres prior to their packing was a process incidental to the completion of the brassieres as a manufactured product-process of purification and filtration being incidental or ancillary to the manufacture

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Clearance of goods from DTA to SEZ under Rule 30

AIT News Network

NEW DELHI. The Commerce Ministry has finally overruled the objection of Excise Officials who were not open to clearances from DTA to SEZ without payment of excise duty and were telling the manufacturers that there is no such provision under Central Excise Rules and clearance without payment of duty may lead to excise demands being slapped on manufacturers.

According to Instruction No.6/2002 issued by the Commerce Ministry to all Chief Commissioners of Customs & Central Excise and Development Commissioners; it has been communicated that :

The clearances of excisable goods to SEZ shall be in terms of

Rule 30 of SEZ Rules ( Rule 30 provides that the DTA supplier supplying goods to a Unit or Developer shall clear the goods, as in the case of exports, either under bond or as duty paid goods under claim of rebate on the cover of ARE-I referred to in notification number 40/2001- Central Excise (NT) dated the 26th June, 2001 in quintuplicate bearing running serial number beginning from the first day of the financial year.)

By virtue of Section 51 of the SEZ Act, the provisions of the SEZ Act and the Rules will have overriding effect over the provisions contained in any other Act.
w.e.f. 10th February, 2006 the activities relating to SEZs are guided by the provisions contained in the SEZ Act, 2005 and the SEZ Rules, 2006. Chapter X-A of the Customs Act, the Special Economic Zones Rules, 2003, and the Special Economic Zones (Customs Procedures) Regulations, 2003 are not in operation.
The size of social infrastructure like residential complexes, hotels, hospitals, Schools and other similar facilities shall be decided by the Approval Committees based on the guidelines to be issued by the Board of Approval. The guidelines are under preparation and will be issued shortly. Any infrastructure created in excess thereof shall not be eligible for any duty and tax concessions to the developer or co-developer as provided in Section 26 and Section 27 of the Special Economic Zones Act, 2005.
At the time of import of goods into the SEZ, the assessment of bill of entry shall be on the basis of the value declared by the SEZ units. However, when the goods are cleared in the domestic market, then the assessment of the goods will be as is being done in the case of import of goods for home consumption.
Rule 11(11) of the SEZ Rules, 2006 provides that in case of import of goods by DTA importers through port, airport, ICD etc. located in a SEZ, the assessment shall be carried out by the Jurisdictional Customs Authorities and not by the SEZ Customs. SEZ Customs shall be responsible only for examination and delivery of goods.
It has been provided in the SEZ Act and the Rules that processing area, non-processing area demarcation shall be carried out by the Development Commissioner. The concerned Development Commissioner shall ensure that for each such demarcation an Order is issued specifying the survey numbers and boundaries in the same manner as
being specified in the SEZ notifications.
The service providing units shall be eligible for export benefits for service provided outside India. However, if any such service are re-imported into the domestic tariff area duties as applicable for normal import of similar services shall be leviable.
Rule 73 provides for authorization of a Gazetted Officer of Customs by the Development Commissioner as Specified Officer, in cases when a Specific Officer is not posted in a SEZ. Since such situation would ordinarily arise in all newly notified SEZs, the jurisdictional Development Commissioners may issue such authorizations for officials to be identified in consultation with the jurisdictional Commissioner Customs or Commissioner Central Excise, as the case may be.
( Click here for Instruction No.6/2006 & Rule 30 of SEZ Rules )