EXCISE NOTIFICATION 929/10 ABOUT POLYSTER FIBER OUT OF PET BOTTLE

Circular No.  929 / 19 /2010-CX

F.No.55/1/2010-CX.1

Government of India

Ministry of Finance

Department of Revenue

New Delhi the, June 29^th 2010

                        Order under section 37 B of Central Excise Act, 1944.

Subject :- Classification of Polyester Staple Fibre manufactured out of PET scrap and waste bottles.

            In exercise of powers conferred under section 37B of the Central Excise Act, 1944 Central Board of Excise & Customs considers it necessary, for the purposes of uniformity with respect to classification of “Polyester Staple Fibre” manufactured out of PET scrap and waste bottles, to issue the following instructions.

 2.         It has been brought to the notice of the Board that divergent practices are being adopted in respect of classification of the “Polyester Staple Fibre” manufactured out of PET scrap and waste bottles. Whereas in some jurisdictions the said product has been classified under the Chapter 39 as article of plastic, in other jurisdictions the same has been classified under Chapter Heading 55032000.

 3         The matter has been examined. Polyester is  "Long-chain polymers chemically composed of at least 85 percent by weight of an ester and a dihydric alcohol and a terephthalic acid." Federal Trade Commission defines Polyester Fibre: A manufactured fibre in which the fibre forming substance is any long-chain synthetic polymer composed of at least 85% by weight of an ester of a substituted aromatic carboxylic acid, including but not restricted to substituted terephthalic units, p(-R-O-CO- C₆H₄-CO-O-)_x and parasubstituted hydroxy-benzoate units, p(-R-O-CO-C₆H₄-O-)_x.

4.         Normally PSF is manufactured by using main inputs like PTA & MEG. The name "polyester" refers to the linkage of several monomers (esters) within the fiber. Esters are formed when alcohol reacts with a carboxylic acid. The monomer ester then is polymerized under suitable conditions to obtain polyester.

 

5.             The most common polyester for polyester staple fibre purposes is poly (ethylene terephthalate), or simply PET. This is also the polymer used for many soft drink bottles and it is becoming increasingly common to recycle them after use by re-melting the PET and extruding it as fibre. To manufacture Polyester staple fibre, used PET bottles are taken as inputs. They are crushed and converted into PET flakes. These PET flakes are then charged to extruders where they are melted and molten polymer is passed through spinnerets to obtain TOW. The tow is drawn and then cut into different lengths to obtain PSF.

6.             As per Chapter Note 1 to Chapter 54,

1. Throughout this Schedule, the term “man-made fibres” means staple fibres and filaments of organic polymers produced by manufacturing processes, either:

(a) by polymerisation of organic monomers to produce polymers such as polyamides, polyesters polyolefins or polyurethanes, or by chemical modification of polymers produced by this process [for example, poly (vinyl alcohol) prepared by the hydrolysis of poly (vinyl acetate)]; or

(b) by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as cuprammonium rayon (cupro) or viscose rayon, or by chemical modification of natural organic polymers (for example, cellulose, casein and other proteins, or alginic acid), to produce polymers such as cellulose acetate or alginates.

The terms “synthetic” and “artificial”, used in relation to fibres, mean: synthetic: fibres as defined at (a); artificial: fibres as defined at (b). Strip and the like of heading 5404 or 5405 are not considered to be man-made fibres.

The terms “man-made”, “synthetic” and “artificial” shall have the same meanings when used in relation to “textile materials”.

7.             Thus manmade fibre can be obtained either starting from monomers or from polymers itself. The process of manufacture is not determinative of the classification of the manufactured product. What isessential for determining the classification is the nature of the end product and the market understanding of the said end product. In the present case there appears to be no dispute with regard to the nature and commercial understanding of the product viz Polyester Staple Fibre.

8.             As per technical literature  uses of  Polyester Fibre are as follows

·                     Apparel: Every form of clothing

·                     Home Furnishings: Carpets, curtains, draperies, sheets and pillow cases, wall coverings, and upholstery

·                     Other Uses: hoses, power belting, ropes and nets, thread, tire cord, auto upholstery, sails, floppy disk liners, and fibrefill for various products including pillows and furniture

9.             From the above facts it is quite evident that the product under consideration is nothing but a textile material and hence will be classified as textile material under Section XI and not as article of plastic in Chapter 39.

10.          Tribunal decision in case of GPL Polyfils Ltd [2005 (183) ELT 27 (T)] would be relevant to the particular facts as in the said case and hence cannot have binding precedents in other matters.

11.          To ensure uniformity in the manner of classification of the Polyester Staple Fibre obtained from PET scrap and waste bottles it is clarified that this product is correctly classifiable under heading 55032000.

12.          Based on the above clarification pending cases may be disposed of.

13.          Receipt of this order may please be acknowledged.

14.          Hindi version will follow.

(Madan Mohan)

Under Secretary to the Government of India

excise notification

EXCISE NOTIFICATION ABOUT CLEAN ENERGY CESS

[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)

New Delhi, the 22nd June, 2010

Notification No. 01 /2010-Clean Energy Cess

G.S.R. (E).- In exercise of the powers conferred by sub-section (2) of the section 83 of
the Finance Act, 2010 (14 of 2010), the Central Government hereby appoints the 1st day of July,
2010, as the date on which the provisions of Chapter VII of the said Act shall come into force.

excise notification

INCOME TAX COMMISSION DECIDES RANGE OF INCOME TAX IN NORTH EAST REGION

Income tax commissioner has decides the ranges the income tax department in the north eastern region of the india. North eastern india has the 10 states and 4 borders of international countries. Full notification is as under.
Full notification

INCOME TAX NOTIFICATION

CENTRAL EXCISE CIRCULAR NO. 928/10 ABOUT EXEMPTED GOODS EXPORTING UNDER BONDS

Central excise department has issued a notification about the amendment in the notice 42/2001 dated 26/06/2001. In this circular excise department has amended the rule by which the goods which are exempted as excise point of view can not exported with bonds. Full notification is as under.

central excise notification , excise notification

CUSTOM CIRCULAR NO 15/2010 ABOUT FRAUDULENT CLAIM OF 4% SAD BY UNSCRUPULOUS IMPORTERS

Custom department has issued a circular about fraud of 4% SAD on the goods imported and sale the same goods on VAT at the rate of 4%. Full notification is as under

custom , custom notification

CUSTOM NOTIFICATION NO. 72/2010 ABOUT IMPORT OF SODA ASH

Custom department has issued a notification no. 72/2010 dated 28-06-2010 about import of soda ash. full notification is as under.

custom , custom notification

CENTRAL EXCISE CLARIFICATION TO PICKLING AND OILING INDUSTRIES

Circular No. 927/17/2010-CX

F. No. 167/17/2010-CX.4

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs, New Delhi

New Delhi the 24^th June, 2010

To,

All Chief Commissioners of Central Excise (Including LTU)

All Commissioners of Central Excise (Including LTU)

All Director Generals

Sir/Madam

Subject :   Whether process of pickling and oiling would amount to manufacture - reg

           

            It has been represented to the Board that certain units are undertaking the process of pickling and oiling in addition to process of de-coiling, cutting and slitting and whereas by circular No 811/08/2005-CX dated 02.03.2005 it has been clarified that processes of de-coiling, cutting and slitting do not amount to manufacture.

central excise notification , excise notification

HOW TO E-FILE OF CENTRAL EXCISE RETURN

Central excise department has issued a notification no 926/2010 about how to e-file of central excise return. The notification as well as the procedure are as follows

Circular No. 926 / 16 / 2010 - CX

F.No. 201/20/2009-CX 6

Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)

                                                                                        New Delhi dated the 28^th May 2010.

Sub.:   Procedure for electronic filing of Central Excise returns - reg.

            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.

central excise notification , excise notification , how to e-file excise return

CENTRAL EXCISE NOTIFICATION NO 06/2010 ABOUT CLEAN ENERGY CESS

[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)

New Delhi, the 22nd June , 2010

Notification No. 06/2010-Clean Energy Cess
G.S.R. (E).- In exercise of the powers conferred by Section 84 of the Finance Act, 2010
(14 of 2010), the Central Government hereby makes the following rules, namely:-
Chapter 1
PRELIMINARY
1. Short title, extent and commencement.- (1) These rules may be called the Clean
Energy Cess Rules, 2010.

central excise notification , excise notification

CENTRAL EXCISE NOTIFICATION ABOUT CLEAN ENERGY CESS

Government of India

Ministry of Finance

(Department of Revenue)

New Delhi, the 22nd June, 2010

Notification No. 01 /2010-Clean Energy Cess
G.S.R. (E).- In exercise of the powers conferred by sub-section (2) of the section 83 of
the Finance Act, 2010 (14 of 2010), the Central Government hereby appoints the 1st day of July,
2010, as the date on which the provisions of Chapter VII of the said Act shall come into force.

excise notification

CUSTOM CIRCULAR 13/2010 ABOUT AMENDMENTS OF RE-EXPORT OF IMPORTED GOODS RULES

CIRCULAR NO. 13/2010-CUSTOMS

F.No.609/51 /2010-DBK

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

******

   New Delhi, the 24^th June, 2010

To

           

All Chief Commissioners of Customs/Central Excise/Customs & Central Excise.

All Commissioners of Customs/Customs (P)/Customs & Central Excise /Central Excise.

All Director Generals of CBEC,

Chief Departmental Representative of Customs Excise & Service Tax Appellate Tribunal.

Sub:   Amendment of the Customs, Central Excise & Service Tax Drawback Rules, 1995 and the Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995- reg.

--------

Sir/Madam,

           

            The undersigned is directed to say that the Board has amended the Customs, Central Excise & Service Tax Drawback Rules, 1995 and the Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995 vide Notifications No. 49/2010-Customs (N.T) and 48/2010-Customs (N.T) both dated 17^th June, 2010. The rules have been amended to make the time limits prescribed for making various applications/claims of drawback under the Rules more exporter friendly, to liberalize granting of  extensions in case of delays and to delegate greater powers in that regard to the field officers at the level of the Assistant/Deputy Commissioner of Customs. These are trade facilitation measures. The notifications are available on CBEC website and may be perused for details. The important changes that have been made in the Rules are as discussed below.

custom , custom notification

SERVICE TAX ON INDUSTRIAL AND COMMERCIAL CONSTRUCTION

[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)

New Delhi, the 22nd June, 2010

Notification No. 29/2010 - Service Tax

G.S.R. (E).- 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
further amendment in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 1/2006-Service Tax, dated the 1st March, 2006, G.S.R. 115(E), dated
the 1st March, 2006, with effect on and from the 1st day of July, 2010, namely :-
In the said notification, in the Table, after S. No. 7 and 10 and the entries relating thereto, the
following S. No 7(a) and 10(a) and entries shall be inserted, namely:-

(1)	(2_	(3)	(4)	(5)
―7(a).	(zzq)	Commercial or Industrial Construction	This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to building or civil structure, referred to in sub-clause (c) of clause (25b) of section 65 of the Finance Act. Explanation.- The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider. This exemption shall not apply in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.	25‖;
―10(a).	(zzzh)	Construction of Complex	This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to residential complex, referred to in sub-clause (b) of clause (30a) of section 65 of the Finance Act. Explanation.- The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider. This exemption shall not apply in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.	25‖.

[F. No. 334/03/2010 -TRU]

(K.S.V.V.Prasad)

Under Secretary to the Government of India

Note.- The principal notification No.1/2006-Service Tax , dated the 1st March 2006, was published

vide number G.S.R.115(E), dated the 1st March, 2006 and last amended vide notification No.09/2010-

Service Tax dated the 27th February, 2010, published vide number G.S.R.153(E), dated the 27th

February 2010.

service tax notification

SERVICE TAX NOTIFICATION NO 30/2010 ABOUT EXEMPTION OF DIFFERENT SERVICES

[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)

New Delhi, the 22nd June, 2010

Notification No. 30/2010 - Service Tax

G.S.R. (E).- 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
exempts the services referred to in clause (zzzn) of sub-section (105) of section 65 of Finance
Act, 1994, when provided for:-
(i) tournaments or championships organized by any of the National Sports Federations or
Federations affiliated to such National Sports Federations, where the participating teams or
individuals represent any District, State or Zone;
(ii) tournaments or championships organized by Association of Indian Universities – Inter-
University Sports Board, School Games Federation of India, All India Sports Council for the
Deaf, Paralympic Committee of India (for the physically challenged), Special Olympics
Bharat (for the mentally challenged);
(iii) tournaments or championships organized by the Central Civil Services Cultural and
Sports Board;
(iv) tournaments or championships organized as part of National Games, by the Indian
Olympic Association;
(v) tournaments or championships organized under Panchayat Yuva Kreeda Aur Khel
Abhiyaan (PYKKA) Scheme
from the whole of the service tax leviable thereon under section 66 of the Finance Act.
2. This notification shall come into force on the 1st day of July, 2010.

[F. No. 334 / 03 /2010 -TRU]

(K.S.V.V.Prasad)

Under Secretary to the Government of India

service tax notification

SERVICE TAX NOTIFIACATION NO 31/2010 ABOUT EXEMPT OF SERVICES ON AIRPORTS AND PORTS

[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)

New Delhi, the 22nd June, 2010

Notification No. 31/2010 - Service Tax

G.S.R. (E).- 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
exempts the following services when provided within a port or an airport:-

service tax notification

CUSTOM NOTIFICATION NO 12/2010 ABOUT BASIS OF LEVY ADDITIONAL CUSTOM DUTY ON READYMADE GARMENTS

F.No.528/21/2008-Cus (TU)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

*****

North Block, New Delhi.

21^st  June, 2010.

To

All Chief Commissioners of Customs / Customs (Prev.).

All Chief Commissioners of Customs & Central Excise.

All Commissioners of Customs / Customs (Prev.).

All Commissioners of Customs & Central Excise.

All Director Generals under CBEC.

The Principal Chief Controller of Accounts (Cus & CX).

Subject:   Basis of levy of additional Customs duty (CVD) on import of Readymade Garments – Clarification - regarding.

 Sir / Madam,

               The issue of the additional duty of Customs (CVD) on import of readymade garments on the basis of the Maximum Retail Price (M.R.P.) / Retail Sale Price (R.S.P.) has been under the consideration of the Board for quite some time.  Representations have been received from the trade and industry as well as the field formations seeking a clarification in the matter.

custom , custom notification

CITIZEN CHARTER DRAFT 2010

Citizen charter draft 2010 is released by Central board of direct taxes department. The process of drafting a new Vision document - Vision 2020 is nearing completion. An important component of the Vision 2020 document is the Citizen's Charter 2010. As a part of Vision 2020, the Citizen's Charter 2007 was revisited by a Working Group constituted by the CBDT.

The process of drafting a new Vision document – Vision 2020 is nearing completion. An important component of the Vision 2020 document is the Citizens’ Charter 2010. As a part of Vision 2020, the Citizens’ Charter 2007 was revisited by a Working Group constituted by the CBDT

citixw=en chaeter draft

VEHICLES ENTRY TAX CARRYING PILGRIMS IN JAMMU & KASHMIR

Jammu and Kashmir government has decided on 10^th of June 2010 that vehicle entry fees will be imposed on the vehicles carrying pilgrims to the holy MATA VAISHNO DEVI and AMARNATH YATRA.

Moreover the entry fees of vehicle are also high as 2000 rupees per vehicle carrying the pilgrims to the MATA VAISHNO DEVI SHRINE or Amarnath. This entry tax for Mata vaishno Devi is 2000 per vehicle for 3 days whereas if someone wants to stay more they need to pay 2000 per day for more days. Whereas in the case of amaranth yatra, the vehicles need to pay 2000 per vehicle for 7 days.

This is the unique type of tax which is not all over India to the India’s number cars and only in Jammu and Kashmir. This type of tax only took by government of India when some foreign number plate car enters in India for the road tax.

Why J&K government want to take this tax when already the Hindu pilgrims gives so much revenue to the government by tourism. This is one of type of JARJIYA taken in Pakistan to the Hindu devotees. Is J&K not a part of India? If it is, then why this tax.

VEHICLES ENTRY TAX CARRYING PILGRIMS IN JAMMU & KASHMIR

ALL ABOUT SPECIAL ECONOMIC ZONE SEZ

We heard a lot of about Special Economic Zone or SEZ. In this post there will be complete knowledge about what is SEZ. Special Economic Zone is a geographical area in which the economic laws are more liberal than the country’s economic laws. SEZ’s are created for boost the trade and rapid economic growth. It is the tool by the government to give tax and business incentives to an area specific and attracts the foreign as well as domestic companies to invest.

Some argue about the heavy losses to the government with SEZ as the industries and companies needn’t to pay taxes in this region. But on the other hand, the country gets a lot of employment and foreign investment from the special economic zone. In India there is a lot of area wise irregularity about industries. Where Gujarat has more and more industries, Bihar and Orissa have little. So SEZ are created here to remove this type of dissimilarity.

ALL ABOUT SPECIAL ECONOMIC ZONE SEZ

CUSTOM AMENDED RULES AS PER NOTIFICATION NO 49/2010

[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. 49/2010 - Customs (N.T.)

New Delhi, 17^th June, 2010

            G.S.R 520 (E). -  In exercise of the powers conferred by section 75 of the Customs Act, 1962 (52 of 1962), section 37 of the Central Excise Act, 1944 (1 of 1944) and section 93A read with section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, namely:-

1.    (1)   These rules may be called the Customs, Central Excise Duties and Service Tax Drawback (Second Amendment) Rules, 2010.

custom , custom notification

CUSTOM NOTIFICATION NO 48/2010 ABOUT RE-EXPORT OF IMPORTED GOODS

[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. 48/2010 - Customs (N.T.)

New Delhi, 17^th June, 2010

            G.S.R 519 (E).-  In exercise of the powers conferred by section 74 of the Customs Act, 1962 (52 of 1962), the Central Government hereby makes the following rules further to amend the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995, namely: -

1.   (1) These rules may be called the Re-export of Imported Goods (Drawback of Customs Duties) Amendment Rules, 2010

custom , custom notification

REVISED DISCUSSION PAPER ON DIRECT TAX CODE

CBDT has released the revised discussion paper on draft DIRECT TAX CODE(DTC). After launching DTC paper on august 2009, income tax department got many responses and fter that on 15th of june 2010, CBDT has issued the revised discussion paper on Direct tax code. the main modification in the revised discussion paper and the old one is on MAT(minimum alternative tax)  and EET(exempt exempt tax).
The draft DTC along with the Discussion Paper was released in August, 2009 for public comments. The response from various stakeholders has been overwhelming and a number of valuable inputs have been received. CBDT has released the revised Discussion Paper on the draft Direct Taxes Code (DTC), which is being placed in the public domain to seek responses on the modified proposals. The major issues which have been addressed relate to Minimum Alternate Tax (MAT) on gross assets, tax treatment of savings - Exempt Exempt Tax (EET) vis-a-vis Exempt Exempt Exempt (EEE) basis, status of Double Tax Avoidance Agreements vis-a-vis the domestic law, the administration of the General Anti-avoidance Rule (GAAR), taxation of income from house property on a presumptive basis, tax treatment of capital gains and tax treatment of non-profit organizations, etc. The response on the revised Discussion Paper may be submitted electronically on the website 'http://finmin.nic.in' or may be sent to e-mail address 'directtaxescode-rev@nic.in' on or before 30th June, 2010.
DOWNLOAD new revised discussion paper on direct tax code

discussion paper on dtc , DTC , DTC coming to india

CBDT DIRECTED INCOME TAX DEPARTMENT TO GET IT RETURNS BY 31ST OF JULY

No.402/92/2006-MC (28 of 2010)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi the 3rd June 2010

PRESS RELEASE

The Central Board of Direct Taxes (CBDT) have directed the Income
Tax Department (ITD) to make arrangements for receiving income tax
returns on 31st July 2010, the due date for filing tax returns by most
taxpayers, as that day happens to be a Saturday. ITD has also been asked to
make special arrangements by setting up additional counters from 28th July
to 31st July 2010, to facilitate taxpayers in filing their income tax returns.

INCOME TAX NOTIFICATION

CENTRAL EXCISE NOTIFICATION NO 27/2010

[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)

***

 New Delhi,    4^th  June, 2010

Notification  No. 27/2010 - Central Excise

G.S.R.     (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), 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.64/95-Central Excise, dated the 16^th March, 1995 , published vide number G.S.R.256(E), dated the 16^th March, 1995, namely:- 

central excise notification , excise notification

26TH ANNUAL CONFERENCE SPEECH OF FINANCE MINISTER

SPEECH OF THE HON’BLE FINANCE MINISTER DURING THE 26th ANNUAL

CONFERENCE OF CCsIT / DGsIT AT NEW DELHI ON 9th JUNE, 2010

Tax Collection

Direct Taxes, now the major resource provider to the Central Government, have grown at

an average annual rate of 24 percent in the last five years and have nearly trebled from

Rs.1,32,771 crore in financial year 2004-05 to about Rs.3,78,000 crore in financial year 2009-

10, increasing its share from 4.1 percent to 6.1 percent of the Gross Domestic Product (GDP).

This tremendous growth has been made possible not only due to rationalisation of tax structure

and improvement in tax administration leading to better tax compliance, but also persistent and

unrelenting efforts of employees of the Income Tax department.

Tax Reforms

INCOME TAX NOTIFICATION

DETERMINATION OF VALUE UNDER SECTION 14 OF CUSTOM ACT

CIRCULAR NO. 11

F. No. 465/6/2010-Cus.V

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

Customs-V Section

**********

New Delhi, June 3, 2010

To,

All Chief Commissioners of Customs,

All Chief Commissioners of Central Excise,

All Director Generals/Chief Departmental Representatives (CESTAT),

All Commissioners of Customs,

All Commissioners of Central Excise and

All Commissioners of Central Excise & Customs

Sir,

Subject: Determination of value under Section 14 of the Customs Act, 1962 in respect of sale of warehoused goods – clarification regarding.

             The prevalence of divergent practices in field formations with respect to the determination of assessable value of imported goods that are warehoused under Section 58/59 of the Customs Act, 1962 and sold before being cleared for home consumption has been brought to the notice of the Board. While one view is that the sale of imported goods after warehousing does not affect the valuation of imported goods, the other view is that the price at which the original importer has sold the goods, before a Bill of Entry for home consumption is filed, should be taken as the assessable value of the imported goods under Section 14 of the Act, ibid.

custom