PWC may go Arthur Anderson way in India after Satyam's investors all set to sue PWC-employees of PWC float their CVs AED or SAED levied on motor spirit and high speed diesel under the respective sections of the Finance Acts and NCCD on goods leviable to it, are not required to be paid for goods exported under bond from a manufacturing unit located in a Special Economic Zone. Similarly, a manufacturer located in a SEZ would be entitled to avail of the facility of export under claim for rebate in terms of rule 18 of the Central Excise Rules in respect of these duties-Central Excise Circular No.881 Under the various incentive schemes under Foreign Trade Policy, the computation of entitlement is to be done on the FOB value of exports inclusive of commissions and discounts, if any-DGFT Policy Circular No.51 Requirement of NOC before clearance of Ozone Depleting Substance (ODS) against Advance Authorizations-DGFT Policy Circular No.52 Bad News for PWC which audited Satyam Computers-Raju admits accounting fraud in company-Raju says it was like riding a tiger not knowing how to get off without being eaten Raju may be arrested and prosecuted Anti-dumping duty imposed on imports of Float Glass of thickness 2 mm to 12 mm (both inclusive) of clear as well as tinted variety (other than green glass) but not including processed glass meant for decorative, industrial or automotive purposes , originating in, or exported from, the Peoples' Republic of China and Indonesia-Customs Tariff Notification No.4 Anti-dumping duty imposed on import of Mulberry raw silk (not thrown), 2A grade and below, originating in, or exported from China-Customs Tariff Notification No.5 Full Bench of HC Ruling-High Court is empowered to condone the delay in filing the Appeals under Section 35G of the Central Excise Act, 1944 which are filed beyond the prescribed period of 180 days-Section 5 of Limitation Act will be applicable to Appeals filed under Section 35G of the Central Excise Act, 1944-AIT-2009-05-HC Co-relation of inputs with the export product under DFIA Scheme-DGFT Policy Circular No.50 Export of Stone Aggregate and River Sand to Maldives for the year 2009-2010-DGFT Notification No.75 Income-tax (First Amendment) Rules, 2009-Rule 40E- Prescribed conditions for the purposes of sub-clause (iii) of clause (B) of sub-section (2) of section 115WB-Income Tax Notification No.1 Income-tax (2nd Amendment) Rules, 2009 –Rule 5D & 5E amended-Income Tax Notification No.2 Government specifies the National Housing Bank (Tax Saving) Term Deposit Scheme, 2008 for the purposes of clause clause (xv) of sub-section (2) of section 80C of the Income-tax Act, 1961-Income Tax Notification No.3 Truckers demand duty free import of radial tyres and lowering of service tax As per provision of Section 47(iv) of Income Tax Act whether the transfer of capital asset by a company to its wholly subsidiary company could be regarded as transfer and therefore capital gains tax could be levied on such transfer-AIT-2008-04-HC Government grants full service tax exemption on taxable services provided to a Goods Transport Agency by their sub-contractors-Service Tax Notification No.1 DEPB Notification No.89/2005-Customs amended to provide benefits on clearances to SEZ- Customs Tariff Notification No. 3 Amendments made in DEPB Rates vide Public Notice No. 102 dated 05.11.2008 in respect of products where DEPB rates were reduced, stand withdrawn w.e.f. 5.11.2008 itself, thereby restoring the DEPB Rates notified prior to 5.11.2008, for the said items-DGFT PN 124 Government releases Rs. 600 crore to regional authorities of DGFT for payment of pending claims of Terminal Excise Duty and Duty Drawback under deemed export scheme-Government also releases Rs. 200 crore to the Development Commissioners of SEZs for payment towards pending claims of CST in respect of supplies made to 100% EOUs Anti-dumping duty on import of acrylonitrile butadiene rubber (NBR) originating in, or exported from, Korea RP -Customs Tariff Notification No.1 Changes in Customs duty on specified goods-Customs Tariff Notification No.2 New Drawback Rates for Boots/half boots/shoes/sandals of leather-cum synthetic/textile materials-Customs Non-Tariff Notification No.1 Drawback Rates on several products hiked-Customs Non-Tariff Notification No.2 Government announces Second Economic Stimulus Package to boost recession hit Sectors-Exemptions from CVD on TMT bars and structurals, and from CVD and Special CVD on cement, withdrawn-Full exemption from basic customs duty on zinc and ferro alloys, withdrawn-Duty drawback benefits on certain items including knitted fabrics, bicycles, agricultural hand tools and specified categories of yarn enhanced retrospectively from 1st September 2008-Accelerated depreciation of 50% provided for commercial vehicles to be purchased on or after 1.1.2009 upto 31.03.09-Click on the link below for details CENVAT Credit of service tax paid on all input services up to the Port allowed to Exporters-Click on the link below for details As demanded by AIT; FinMin finally amends CENVAT Credit Rules to allow benefit of non-reversal of Credit on clearances to SEZ Developers-Central Excise Non-Tariff Notification No.50-Click on the lik below for details Anti-dumping duty on import of Flexible Slabstock Polyol, originating in, or exported from, the People's Republic of China, Republic of Korea, Chinese Taipei and Brazil continued till 23rd July, 2009-Customs Tariff Notification No.138 Tariff Value for import of Brass Scrap is 3252 and for Poppy Seeds 4238-Customs Non-Tariff Notification No. 141 Import of new vehicles having an FOB value of US $ 40,000 or more and engine capacity of more than 3000cc for petrol run vehicle and more than 2500cc for diesel run vehicles exempted from policy provision of Import Licensing Note No. 2-DGFT Notification No.74 CBEC clarifies the classification of 'Combined refrigerator freezer with separate external doors' would be under sub- heading 8418 10 and not under 8418 21-Customs Circular No.23 Procedure relating to sanction and pre-audit of refund claims-Customs Circular No.22 Anti-dumping duty imposed on imports of Sodium Hydroxide(Caustic Soda)originating in, or exported from, Korea ROK and the People's Republic of China-Customs Tariff Notification No.137 Abatement from MRP for payment of excise duty lowered by 3 per cent on most of the products-Abatement on Auto Parts lowered to 30 per cent-Central Excise Non-Tariff Notification No. 49 excise duty of 300 PMT notified on cement clinkers-Central Excise Tariff Notification No.64 10% ethanol blended petrol exempted from excise duty Duty free import of capital goods and spare parts under EPCG-Customs Tariff Notification No.136 Anti-dumping duty on import of phenol-Customs Tariff Notification No.135 Authority for Advance Ruling rules looking at the nature of activities carried on or to be carried on by the liaison office of Ikea Trading (Hong Kong) Ltd. in India, no income would accrue or arise or deemed to accrue or arise in India in terms of section 5(2)(b) of Income Tax Act, 1961-AIT-2008-482-AAR Authority for Advance Ruling rules the swapping premium is profit derived from the business of providing long-term finance (computed under the head 'Profits & Gains of Business or Profession' before making any deduction under this clause) in terms of section 36(1)(viii) of the Income Tax Act, 1961-specified percentage thereof is eligible for deduction u/s 36(1)(viii) of the Income Tax Act in view of the fulfillment of condition for carrying this sum to the special reserve-AIT-2008-483-AAR Definition of 'Charitable purpose' under section 2(15) of the Income-tax Act-Income Tax Circular No.11 Import of Trucks/Tippers/Dumpers and spares thereof, under EPCG Scheme by any other sector except for the mining sector is not permitted-DGFT Circular No. 48 transitional arrangements in respect of items whose import has been restricted, shall continue-DGFT Circular No.49 SION norms for export of Shea Stearine notified-DGFT PN 118 The appellant an international firm of solicitors resident in UK, has no office or fixed base in India-the income of the assessee is charged on hourly basis in India and utilised in India shall only be chargeable to Income-Tax Act as disclosed in the return of Income-AIT-2008-480-HC CBDT clarifies that any return of income for the assessment year 2008-09 filed electronically on 30th September 2008, in respect of which the electronic acknowledgement bears the date stamp of 1st October 2008, shall be treated as having been filed within the due date, i.e. 30th September 2008 Export of cement freely allowed from all Ports-DGFT Notification No. 73 Bombay HC rules it is only after enactment of Section 66-A w.e.f. 18.4.2006 that taxable services received from abroad by a person belonging to India are taxed in the hands of the Indian residents- In such cases, the Indian recipient of the taxable services is deemed to be a service provider-Before enactment of Section 66-A, there was no such provision in the Act and therefore, Union of India had no authority to levy service tax-Click on the link below for details Import of all pre-packaged commodities subjected to compliance of all the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977-Customs Circular No.21 Larger Bench of CESTAT rules in the case of provisional assessment under the Central Excise Rules, 2002 interest is required to be paid from the first day of the month succeeding the month for which such amount is determined-Interest is required to be paid even if the differential amount is paid before the order, under the Rule 7(3) of the said Rules, is issued finalizing the assessment-AIT-2008-473-CESTAT

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New Delhi, the 13th July, 2006

22 Asadha,1928 (SAKA).
Notification
No.80/2006-CUSTOMS (N.T.)

G.S.R.                  (E). – In exercise of the powers conferred by section 75 of the Customs Act, 1962 (52 of 1962) and section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Customs and Central Excise Duties Drawback Rules, 1995(hereinafter referred to as the said rules), namely:-
1.       (1)     These rules may be called the Customs, Central Excise Duties and Service Tax Drawback (Amendment) Rules, 2006.
(2) Save as expressly provided otherwise, these rules shall come into force on the date of their publication in the Official Gazette.
2.       In the preamble to the said rules          for   the words, figures and brackets, “and section 37 of the Central Excise Act, 1944 (1of 1944)”, the sign, words, figures and brackets, “, section 37 of the Central Excise Act, 1944 (1of 1944) and section 93A read with section 94 of the Finance Act, 1994 (32 of 1994)” shall be substituted.
3.       In the said rules,-
(1) in sub-rule (1) of rule 1 for   the words and figures “Customs and Central Excise Duties Drawback Rules, 1995”, the words and figures “Customs,   Central Excise Duties and Service Tax Drawback Rules, 1995” shall be substituted
   (2) in rule 2,-
(a)   for clause (a) the following clause shall be substituted, namely :-
“(a) “drawback” in relation to any goods manufactured in India and exported, means the rebate of duty or tax, as the case may be, chargeable on any imported materials or excisable materials used or taxable services used as input services in the manufacture of such goods;”;
(b) after clause (d), the following clause shall be inserted, namely,-
“(da) “input service” shall have the same meaning as is assigned to it in    the CENVAT Credit Rules, 2004.”
(3) in rule 3,-
          (a) in sub-rule (1),
(i) in clause (b), the word “and” appearing at the end shall be omitted;
                        (ii) after clause (b), the    following clause shall be inserted, namely,-
“(bb) the Finance Act, 1994( 32 of 1994), and the rules made thereunder; and”;
(iii) for the first proviso the following proviso shall be substituted, namely :-
“Provided that where any goods are produced or manufactured from imported materials or excisable materials or by using any taxable services as input services, on some of which only the duty or   tax chargeable thereon has been paid and not on the rest, or only a part of the duty or tax chargeable has been paid; or the   duty or tax paid has been rebated or refunded in whole or in part or given as credit, under any of the provisions of the Customs Act, 1962 (52 of 1962) and the rules made thereunder, or of the Central Excise Act, 1944 ( 1 of 1944) and the rules made thereunder, or of the Finance Act, 1994 ( 32 of 1994) and the rules made thereunder, the drawback admissible on the said goods shall be reduced taking into account the lesser duty or tax paid or the rebate,   refund or credit obtained:”;
             (iv) for the clause (ii) of the second proviso the following clause shall be substituted, namely :
“(ii) if the said goods are produced or manufactured, using imported materials or excisable materials or taxable services in respect of which duties or taxes have not been paid; or”;

(b) in sub-rule (2), after clause (e), the following clause shall be inserted, namely :-
“(ea) the average amount of tax paid on taxable services which are used as input services for the manufacturing or processing or for containing or packing the export goods.”
(4) in rule 5, in sub-rule (2), after the words, “duty on inputs”, the words, “ or tax on input services” shall be inserted.
(5) in rule 6, -

(a) in sub-rule (1), in clause (a),-
(i) for the words “manufactures exporter”, the word “manufacturer” shall be substituted and shall be deemed to have been substituted with effect from 1st day of April, 2003;
(ii) after the word “components” occurring before the words “ are used”, the words “or inputs services”, and after the word “ components” occurring before the proviso, the words “ or the tax paid on input services” shall be inserted;

(iii) in the proviso, for the words, “manufacturer exporter” at both the places, the word “manufacturer” shall be substituted and shall be deemed to have been substituted with effect from 1st day of April, 2003;

                                        (b) in sub-rule (2),-
(i) in clause (a), for the words “ an exporter”,     the words “a manufacturer or exporter” shall be substituted and shall be deemed to have been substituted with effect from 1st day of April, 2003;
(ii) in clause (b), for the words “manufacturer exporter” wherever they occur, the word “manufacturer” shall be substituted and shall be deemed to have been substituted with effect from 1st day of April, 2003;
(6) in rule 7,-
                              (a) in sub-rule (1),-
(i) for the words “manufacturer exporter” wherever they occur, the word “manufacturer” shall be substituted and shall be deemed to have been substituted with effect from 1st day of April, 2003;
(ii) for the words, “duties paid on the materials or components”, the words “duties or taxes paid on the materials or components or input services” shall be substituted ;
(iii) for the words, “in which the materials or components are used in the production or manufacture of goods and the duties paid on such materials or components”, the words, “ in which the materials or components or input services are used in the production or manufacture of goods and the duties or taxes paid on such materials or components or input services” shall be substituted ;
(b) in sub-rule (3), for the word “exporter”, the words “manufacturer or exporter” shall be substituted and shall be deemed to have been substituted with effect from 1st day of April, 2003;

(7) in rule 9, for clause (a) the following clause shall be substituted, namely :
“(a) determining the class or description of materials or components or input services used in the production or manufacture of goods or for determining the amount of duty or tax paid on such materials or components or input services, or”.
(8) in rule 12, in sub-rule (1), for sub-clause (ii) of clause (a) the following sub-clause shall be substituted, namely :
“(ii) in respect of duties of Customs and Central Excise paid on the containers, packing materials and materials and the service tax paid on the input services used in the manufacture of the export goods on which drawback is being claimed, no separate claim for rebate of duty or service tax under the Central Excise Rules, 2002 or any other law has been or will be made to the Central Excise authorities :”
(9) in rule 13,-
(i) in sub-rule (2), in clause (iii) for the letters, figure and word “AR-4 Form” the letters and figure “ARE-1” shall be substituted;

(ii) after sub-rule (4), the following sub-rule shall be added, namely:-

“(5) Subject to the provisions of sub-rules (2), (3) and (4), where the exporter has exported the goods under electronic shipping bill in Electronic Data Interchange (EDI) under the claim of drawback, the electronic shipping bill itself shall be treated as the claim for drawback”.

(10) in rule 16A,-
(a) in sub-rule (2), for the words “sixty days”, the words “thirty days” shall be substituted;
(b) in sub-rule (3), for the words “sixty days”, the words “thirty days” shall be substituted;

(Dr. M. Subramanyam)

Deputy Secretary to the Government of India

F.No. 609/54/2006-DBK
F.No. 601/8401/8/2004-DBK
Note:- The principal rules were published vide notification No. 37/95-CUSTOMS & CENTRAL EXCISES (N.T.), dated the 26th May, 1995, G.S.R.441(E), dated the 26th May, 1995, and was last amended vide notification No. 10/2006-CUSTOMS (N.T.), dated the 15th February, 2006, G.S.R. 64 (E), dated the 15th February, 2006.