May 31, 2010

CIRCULAR 1 OF MINISTRY OF CORPORATE AFFAIR ABOUT COMPANY LAW SETTLEMENT SCHEME

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CIRCULAR 1 OF MINISTRY OF CORPORATE AFFAIR ABOUT COMPANY LAW SETTLEMENT SCHEME
General Circular No. 1 /2010
F. No. 2/7/2010-CL V
Government of India
Ministry of Corporate Affairs
5th Floor, A Wing, Shastri Bhavan,
Dr. R.P. Road, New Delhi,
Dated the 26th May, 2010
To
All Regional Director,
All Registrars of Companies.
Subject: Company Law Settlement Scheme, 2010
Sir,
It has been observed that a large number of companies are not filing
their due documents timely with the Registrar of Companies. Due to this,
the records available in the electronic registry are not updated and thereby
are not available to the stakeholders for inspection. Further, due to not filing
the documents on time, companies are burdened with additional fee and
facing the prosecutions also.

E-FILING OF CENTRAL EXCISE RETURN PROCEDURE

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E-FILING OF CENTRAL EXCISE RETURN PROCEDURE
Central excise notified vide notification no 926/2010 about procedure of e-filing of central excise retrun. Full notification is as under

Attention is invited to Circular No. 919/09/2010 – CX dated 23.03.2010 prescribing detailed instructions and the procedure for electronic filing of Central Excise and Service Tax returns. Attention is also invited to the Central Excise (Second Amendment) Rules, 2010 and CENVAT Credit (Amendment) Rules, 2010 issued vide Notification No. 20/2010-Central Excise (NT) and No. 21/2010- Central Excise (NT) respectively both dated 18.05.2010 providing for mandatory electronic filing of certain returns by assessees including dealers.

FINANCE MINISTER DEDICATED NEW CENTRALISED PROCESSING CENTRE AT BANGALURU

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FINANCE MINISTER DEDICATED NEW CENTRALISED PROCESSING CENTRE AT BANGALURU
Shri Pranab Mukherjee, Honorable Finance Minister dedicated Centralised Processing Centre (CPC), Hosur Road, Bengaluru - 560100 to the Nation on 29-05-2010 at 6.30PM.
Fm speech is as follows



Speech of Hon’ble Finance Minister on the Occasion of Dedication
of the Centralized Processing Center (CPC) of the Income Tax
Department, Bengaluru to the Nation on May 29th 2010
It gives me immense pleasure to be here on this occasion of the
dedication to the nation of the Centralized Processing Center (CPC) of
the Income Tax Department in Bengaluru. Bengaluru, the IT Capital and
Silicon Valley of India, was appropriately chosen as the location for the
first CPC. The setting-up of CPC is a big step in the utilization of
technology for bringing in administrative reforms within the Income Tax
Department. I am also happy to note that a Global Brand, Infosys has
been selected by the Department as a partner in implementing the new
initiative, which is highly information technology intensive.
2. The Income Tax Department had initiated computerization in the 90s
with the establishment of the Regional Computer Centers and
distribution of PCs to Officers. However, computerization gained
momentum since 2003-04 with the introduction of Processing Software,
outsourcing of PAN card services and establishment of the Tax
Information Network (TIN) for tax payment and TDS reporting.
3. The objective for technology induction in the Department has been to
enhance the capacity of the department to handle the increase in
numbers of taxpayers and to provide better taxpayer services in a
systematic manner. Over the past few years, the Department has
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increasingly focused on E-Governance initiatives and building the
technological framework to be able to handle challenges of the changing
economic environment.
4. The introduction of electronic filing of I-T returns, e-payment of taxes,
establishment of the national network (TAXNET), and consolidation of
the Regional Computer Centers into the National Data Center have laid
the foundation for the next generation administrative reforms in the
Department.
5. Bulk processing of returns and redesigning the procedures in a
centralized facility was determined to be the most efficient way to
increase the processing capacity of the Department. The CPC project at
Bengaluru was approved by the Union Cabinet at a total cost of Rs 255
Crore over a 5-year period. It should be endeavour of the Department to
achieve economies of scale by automating non-core processes in
partnership with the corporate sector and to attain operational excellence
by high quality and service compliance levels. I am sure Department
would save valuable skilled manpower by using technology intensive
initiatives like the CPC for non-core areas. The skilled manpower so
available can be used for deepening and widening of the tax base and
also for investigations of cross border transactions, which have high
revenue potential.
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6. I am glad to note that the CPC has become operational in a short period
of time and that it has processed over 7 Lakh returns during this period. I
congratulate the Income Tax Department and its partner Infosys for the
speedy execution of the CPC project.
7. The success of these kinds of initiative depends upon implementation as
well as education. The Department faces a huge task of not only
educating its own officers and staff, but also taxpayers. I am informed
that the Department has already taken steps to educate the taxpayers as
well as important stake-holders like State and Central Government
deductors for increasing awareness about the issues, which, if not
addressed properly, may act as a barrier in realizing the full potential of
this Mega IT-Initiative Project.
8. The tax-policy making process has also undergone the substantial
changes with technology induction. I understand that CBDT is making
policies, which are system compatible and can easily be implemented
using the information technology tools. The recent notification of the
SARAL II form by the Department would simplify the task of complying
with the Income Tax reporting requirements for the taxpayer. These
kinds of initiatives are beneficial to the taxpayer as well as Income Tax
Department, as it not only reduces the compliance cost for the taxpayer
but also helps the Department in collating the information for tax policy
planning as well as for sector-based investigations.
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9. For the technology partner Infosys also, it is a unique experience in
implementing a project full of legal and procedural complexities. I am
sure that Infosys will come up to our expectations as well as that of
taxpayers in partnering the Department in delivery of services of the
highest standards and one of the best in the World.
10. The functioning of CPC has been made possible by reengineering key
business processes coupled with automation. The working environment
of CPC is different from that in the Government. Government employees
here have an opportunity to excel while performing duties in this
conducive environment, which is on the lines of the private sector and
highly challenging. I am told that the tasks in CPC are managed by a
small and dedicated team of 31 officers and staff of the Department.
CBDT should ensure that the best talent from the Department is
attracted and retained for this prestigious project. To ensure this, CBDT
may consider designing suitable human resource policy with incentives
within the existing Government rules and regulations.
11. Technological innovation is key to success in addressing issues relating
to voluminous data and repetitive procedures. However, technological
limitations invite criticism from those who are at the receiving end. There
has been some criticism of computerization in the Department on issues
relating to credit of TDS and refunds to the taxpayers. I would like to
mention that even countries like USA started computerization of
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processes in the year 1960s, but they could start processing of the
returns for the first time in the year 2004 on a new computer system.
The Income Tax Department started computerization in the year 1990s
and full scale processing was started in the year 2002-03 after pilot
testing was done in the year 1999-2000. The point I am emphasizing is
that the computerization projects involving complex legislative framework
and evolving international tax jurisprudence are associated with risks
and rewards. We should accept these challenges and should not be
disappointed with failures. We should try out best to deliver the quality
services to the taxpayers keeping in mind the challenges of
technological limitations and continue to innovate to make the existing
processes and procedures more efficient.
12. To adopt best global practices, CBDT is in cooperation with Brazil and
South Africa under India-Brazil-South Africa (IBSA) Forum. Under this
cooperation, one of the areas is relating to risk profiling and
computerization. I am sure that CBDT would continue to take initiatives
like this to adopt best global practices to deliver services to the
taxpayers and at the same time performing the role of a revenue
collecting organization of the Government.
13. Taking forward tax administration reforms, I have announced setting up
two more Centralised Processing Centers during my Budget speech
2010-11, looking to the successful experience of the CPC at Bengaluru.
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I am happy to announce that Income Tax Department has identified two
more locations for setting up CPC at Pune and Maneasar. These two
locations would deliver services to the tax payers in the western and in
the northern region of the country by exploiting the IT friendly
environment.
14. With these words I dedicate the Centralized Processing Center of the
Income Tax Department at Bengaluru to the nation and wish it all
success in the years to come. I also congratulate the officers and the
staff of the Income Tax Department, who have contributed to the
success of this project.

May 30, 2010

NEW ITR-1,ITR2 AND ITR3 LAUNCHED BY INCOME TAX DEPARTMENT FOE FINANCIAL YEAR 2010-11

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NEW ITR-1,ITR2 AND ITR3 LAUNCHED BY INCOME TAX DEPARTMENT FOE FINANCIAL YEAR 2010-11
Income tax department has launched new income tax return preparation utility itr-1,itr2,itr3 for the financial year 2010-11. to dowanload and see the utility of these rpu and use in excel foramt go to the download 

May 25, 2010

Service tax circular no. 123/10 regarding shifting of overhead cables

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Service tax circular no. 123/10 regarding shifting of overhead cables

Circular No.123/5/2010-TRU

F.No.332/5/2010-TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
(Tax Research Unit)
…..

New Delhi dated the 24th May 2010.

To

The Chief Commissioners of Central Excise and Service Tax (All),
The Director General (Service Tax),
The Director General (Central Excise Intelligence),        
The Director General (Audit),
The Commissioners of Service Tax (All).

Madam/Sir,

Subject: Applicability of service tax on laying of cables under or alongside roads and similar activities – clarification regarding.

May 23, 2010

CENTRAL EXCISE NOTIFICATION NO 23/2010 dated 20/05/2010

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CENTRAL EXCISE NOTIFICATION NO 23/2010 dated 20/05/2010
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 23/2010-Central Excise (N.T.)

New Delhi, the 20th May, 2010

G.S.R.  (E). -      In exercise of the powers conferred by sub-section (1) of section 5 of the Central Excise Tariff Act, 1985 (5 of 1986), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the First Schedule to the Central Excise Tariff Act, 1985, namely:- 

 In the said First Schedule,-  

(1)             In Chapter 29,-

(i)     in heading 2920,-

(a)     in sub-heading 2920 19, tariff item 2920 19 10 and the entries relating thereto shall be omitted;
(b)     in sub-heading 2920 90, tariff items 2920 90 45 to 2920 90 48 and the entries relating thereto shall be omitted;
(c)     in sub-heading 2920 90, tariff items 2920 90 51 to 2920 90 66  and the entries relating thereto shall be omitted;

May 20, 2010

Dr. Pradnya Saravade and Shri Ananta Barua take charge as Executive Director, SEBI

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Dr. Pradnya Saravade and Shri Ananta Barua take charge as Executive Director, SEBI

Dr. Pradnya Saravade took charge as Executive Director, Securities and Exchange Board of India in Mumbai today. 
Dr. Saravade is from the 1989 batch of the Indian Police Service and has served in the states ofWest Bengal and Maharashtra and the Central Bureau of Investigation. 
She has been on deputation with SEBI since July 2008 and has been holding charge of Investigations Department in SEBI.  As Executive Director, she will continue to head the Investigations Department of SEBI.
Shri Ananta Barua took charge as Executive Director, Securities and Exchange Board of India in Mumbai today.  Prior to this assignment he was Legal Adviser, Legal Affairs Department (LAD), SEBI.  He has been working in LAD since 1992 and has assisted the Board in framing of Regulations.
He is a Commerce Graduate with LL.B from University of Delhi.  He also holds Diploma in Management.
Shri Barua was on deputation to Central Bank of Bahrain as Legal Adviser and has also worked with Industrial Finance Corporation of India (IFCI), National Fertilizers Ltd. (NFL) and DCM Ltd..
Shri Barua was also active in various committees including as Technical Member of Committee on Financial Sector Assessment, Justice Wadhwa Committee on re-allocation of IPO proceeds among various other committees.
Shri Barua also assisted Justice Bhagwati on Takeovers and Justice Dhanuka Committee on Securities Laws.
Mumbai
May 20, 2010

May 19, 2010

EXCISE AND CUSTOM CLASSIFICATION OF RICE PARBOILING MACHINE

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EXCISE AND CUSTOM CLASSIFICATION OF RICE PARBOILING MACHINE
F.No. 167/42/ 2009-CX.4
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Custom
.....
New Delhi, the 19 May, 2010
To,
All the Chief Commissioner of Central Excise,
All the Chief Commissioner of Customs
All the Director General 
All Commissioners,

Sir,
Subject: Classification of rice parboiling machinery  -reg 

It has been brought to the notice of the Board that classification of Rice parboiling  machinery is being disputed in certain jurisdictions.  Two tariff headings under consideration for its classification are 8419 or 8437.   It has been represented by the Rice Mill Machinery Manufacturers Association  that  the practice so far followed by the department was not to charge excise duty for many years but suddenly it has been sought  to charge duty on these machines by proposing classification under heading 8419.  The matter has been examined by the Board.

CENTRAL EXCISE CLARIFICATION REGARDING INCLUSION OF COST OF RETURN FARE OF VEHICLES IN ASSESSABLE VALUE

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CENTRAL EXCISE CLARIFICATION REGARDING INCLUSION OF COST OF RETURN FARE OF VEHICLES IN ASSESSABLE VALUE
Circular No. 923/13/2010 - CX
F No. 6/3/2010 – CX.1
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

New Delhi, 19th   May, 2010.
To
            Director General (All)
            Chief Commissioners of Central Excise including LTU (All)
            Commissioners of Central Excise including LTU (All)

Sir/Madam,

Subject: - Clarification regarding inclusion of cost of return fare of vehicles in assessable value – reg

            Attention is invited to clarification given at S. No 2(b) vide the Board’s Circular No. 634/34/2002-CX dated 1st July 2002  as amended by the Circular No 827/4/2006 dated 12th April 2006 in terms of which the cost of return fare of vehicles was to be included in the value.

CENTRAL EXCISE NOTIFICATION NO 22/2010

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CENTRAL EXCISE NOTIFICATION NO 22/2010
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 22 /2010-Central Excise (N.T.)
New Delhi the 18th May, 2010
G.S.R. (E).- In exercise of the powers conferred by rule 18 of the Central Excise Rules, 2002 read with rule 14 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010, the Central Government hereby grants rebate of duty paid on the excisable goods as specified in column (2) of the Table annexed hereto, on their exportation out of India on or after the 8th March, 2010, to any country except Nepal and Bhutan, to the extent specified in the corresponding entry

CENTRAL EXCISE NOTIFICATION NO 21/2010

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CENTRAL EXCISE NOTIFICATION NO 21/2010
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 21 / 2010-Central Excise (N.T.)
New Delhi, the 18th May 2010.
G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-
1. (1) These rules may be called the CENVAT Credit (Amendment) Rules, 2010.
(2) They shall come into force on 1st June, 2010

CENTRAL EXCISE NOTIFICATION NO 20/2010

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CENTRAL EXCISE NOTIFICATION NO 20/2010
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 20 / 2010-Central Excise (N.T.)
New Delhi, the 18th May 2010.
G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 2002, namely:-
1. (1) These rules may be called the Central Excise (Second Amendment) Rules, 2010.
(2) They shall come into force on 1st June, 2010.

May 11, 2010

NO CESS ON STAINLESS STEEL PATTI AND ALUMINIUM CIRCLES

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NO CESS ON STAINLESS STEEL PATTI AND ALUMINIUM CIRCLES
Excise department vide notification number 921/11/2010 issued a notification that no education cess as well as higher education cess will be charged on stainless steel patta/patti and aluminium circles. Full notification is as under.

Circular No. 921/11/2010-CX
F. No. 167/25/2010-CX.4
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)

New Delhi, the 10th  May, 2010.
To,

            Director Generals (All)
            Chief Commissioners of Central Excise including LTU (All)
            Commissioners of Central Excise (All)

Sir/Madam

Subject:- Leviability of Education Cess and Higher Education Cess on the Stainless Steel Patta Patti or Aluminium Circles units working under compound levy scheme – reg


            References have been received from field formations on the issue of levy of Education Cess and higher Education Cess on the Central Excise duty determined under Notification No. 17/2007-CE dated 1-3-2007 under compound levy scheme on S.S. Patta/Patti and Aluminium Circles. It has been reported that the manufacturers of these items have stopped paying Education Cess and higher Education Cess on the ground that the amount determined under the compound levy scheme is inclusive of Education Cess and higher Education Cess as is mentioned in the compound levy scheme in respect of Pan Masala & Gutkha.
  
2.         The matter has been examined.  It is clarified that education cess and higher education cess would be required to be paid on S.S. Patta Patti and aluminium Circles, covered by the compound levy over and above the notified Central Excise duty as the same has not specifically been included in the compound levy amount specified in the relevant notification. Moreover, there is no exemption provided for the same. The comparison with compound levy scheme in respect of PanMasala/Gutkha etc. is erroneous as the two schemes are covered under different notifications. Whereas the notification No. 42/2008-CE dated 1.7.2008 in respect of Pan Masala/Gutkha specifically includes the Education Cess and Higher Education Cess in the amount fixed under compound levy scheme, there is no such stipulation in the scheme in respect of Stainless Steel Patta Patti and Aluminium Circles in the Notification No. 17/2007-CE dated 1-3-2007.
             
3.         Trade and Industry may be informed.
4.         Receipt of this circular may be acknowledged
5.         Hindi version would follow.

Yours faithfully
(Madan Mohan)
Under Secretary (CX1 & 4)

May 8, 2010

Government starts new programme to teach school children about taxation

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Government starts new programme to teach school children about taxation
Government starts a new programme to teach the school goers about taxation and it's importance.

Government has decided to frame a communication strategy for school children in the age group of 10-12 years (Class V&VI) and 16-18 years (Class X to XII) to introduce them to the subject "Need for taxation in civil society". The key objective of the strategy is to prepare children to be responsible and compliant taxpayers when they grow up so that they willingly contribute towards nation building. With this programme, the Government wishes to reach out to future taxpayers at an early stage so as to have a far reaching impact on the outlook of children towards taxation.
The campaign is intended to be educative on the concept of taxation and to create curiosity and interest in the minds of young children. The topics could range from history of taxation, rationale for taxes, how the government raises revenue and spends it, role of government in society, and some basic calculations.

May 6, 2010

SERVIVE TAX CIRCULAR 122 REGARDING AVAILMENT OF CREDIT ON INPUT SERVICE

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SERVIVE TAX CIRCULAR 122 REGARDING AVAILMENT OF CREDIT ON INPUT SERVICE
Service tax department issued a circular 122/03/2010 dated 30-04-2010 regarding availment of credit on input services. full notification is as under

Circular No. 122/03/2010 – ST

F. No. 137/71/2009 – CX.4
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
***
New Delhi, dated the 30th April 2010


To

The Chief Commissioners of Central Excise and Service Tax (ALL),
The Director General of Service Tax
The Director General of Audit
The Director General of Central Excise Intelligence,
The Commissioners of Service Tax (ALL)

Madam/Sir,

Subject: Clarification regarding availment of credit on input services - reg

****************

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

ALL ABOUT IMPORT AND EXPORTS GOODS BY AIR

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ALL ABOUT IMPORT AND EXPORTS GOODS BY AIR
Custom department issued notification no. 36/2010 dated 5th may 2010 about import and export the goods by air. the full notification is as under

[TO BE PUBLISHED IN THE GAZETTE OF INDIA,

EXTRAORDINARY PART II, SECTION 3, SUB-SECTION (i)]


GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 36 / 2010 – Customs (N.T.)


New Delhi, the 5th May, 2010.
              15 Vaisakha, 1932 (SAKA).


            G.S.R._________ (E) - 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 authorisedcourier. 

(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