Udyog Tax News Flash

November 2013

Additional benches of CESTAT notified

The Ministry of Finance has issued notification number 7/2013 dated 1.11.2013 dated 1 November 2013, under which it has notified the creation of six additional benches of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). These include a bench each at new locations, namely, Hyderabad, Allahabad, and Chandigarh, and additional benches at Mumbai, Chennai and Delhi. The notification can be seen at http://www.taxmanagementindia.com/visitor/detail_notification.asp?ID=1 16012

Customs: Risk management system for exports

The Finance Minister, on 13 November 2013, inaugurated the roll out of an information technology based risk management system (IT- based RMS) for exports. He expressed the hope that this would reduce the dwell time of cargo from a few days to a few hours. The system was launched in eleven customs stations at Bangalore, Chennai, Delhi, Hyderabad, Mumbai, Pune and Tutocorin. By the end of the year it is expected to cover all customs stations. The government press release on the roll out can be perused at http://pib.nic.in/newsite/PrintRelease.aspx?relid=100568

Customs: anti-dumping duty on acrylic fibre from Korea & Thailand extended
The central government had levied anti dumping duty on acrylic fibre imported from Korea RP and Thailand, under notification 123/2008Customs dated 20 November 2008. The duty was valid for a period of five years and due to lapse soon, but the DG Anti Dumping asked for extension of the duty for one more year, as provided under section 9A(5) of the Customs Tariff Act 1975. Accordingly the central government has issued notification 27/2013-Customs (ADD) dated 7 November 2013 by which it has amended the earlier notification to extend the validity of the duty up to 19 November 2014. The notification 27/2013-Customs (ADD) can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csadd2013/csadd-27-2013.htm

Customs: anti-dumping duty on cable ties from China & Taiwan extended
The central government had levied anti-dumping duty on cable ties imported from China PR and Taiwan, under notification 56/2012-Customs (ADD) dated 14 December 2012. The duty was valid up to 30 October 2013. but the DG Anti Dumping asked for extension of the duty for one more year, as provided under section 9A(5) of the Customs Tariff Act 1975. Accordingly the central government has issued notification 28/2013Customs (ADD) dated 12 November 2013 by which it has amended the earlier notification to extend the validity of the duty up to 30 October 2014. See the notification at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csadd2013/csadd-28-29-2013.pdf

Customs: anti-dumping duty on Phenol from South Africa extended

The central government had levied anti-dumping duty on phenol imported from South Africa, under notification 10/2013-Customs (ADD) dated 3 May 2013. The duty was valid up to 30 October 2013. but the DG Anti Dumping asked for extension of the duty for one more year, as provided under section 9A(5) of the Customs Tariff Act 1975. Accordingly the central government has issued notification 29/2013-Customs (ADD) dated 12 November 2013 by which it has amended the earlier notification to extend the validity of the duty up to 30 October 2014. See the notification at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csadd2013/csadd-28-29-2013.pdf

Customs: anti-dumping duty on Vit A Palmitate from Switzerland & China extended
The central government had levied anti-dumping duty for a period of five years on Vitamin A palmitate imported from Switzerland and China PR, under notification 112/2007-Customs dated 30 October 2007. This had been extended up to 27 March 2013 under notification 21/2012-Customs (ADD) dated 12 April 2012. The DG Anti Dumping undertook review and recommended continued imposition of the duty. Accordingly the central government, under under section 9A(1) and (5) of the Customs Tariff Act 1975, has issued notification 30/2013-Customs (ADD) dated 13 November 2013 by which it has imposed

anti dumping duty on the said goods (Vitamin A Palmitate) manufactured in or imported from Switzerland or China PR. The duty will remain valid for a period of five years. The notification can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csadd2013/csadd-30-31-2013.pdf

Customs: anti-dumping duty on diclofenac sodium from China PR extended

The central government had levied anti-dumping duty on diclofenac sodium imported from China PR and Taiwan, under notification 91/2008Customs dated 30 July 2008. The DG Anti Dumping undertook sunset review and recommended extension of the duty for one more year,. Accordingly the central government has, as provided under section 9A(1) and (5) of the Customs Tariff Act 1975 issued notification 31/2013-Customs (ADD) dated 13 November 2013 by which it has amended the earlier notification to extend the validity of the duty up to 9 April 2014. See the notification at http://cbec.gov.in/customs/cs-act/notifications/notfns2013/cs-add2013/csadd-30-31-2013.pdf

Customs: changes in tariff values notified

The central government issued notification 110/2013-Customs (NT) on 12 November 2013, to raise the tariff value of gold, in respect of which the benefit of entries 321 or 323 of notification 12/2012-Customs is availed, to USD 417 per 10 grams. This notification can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csnt2013/csnt110-2013.htm. Again, on 14 November 2013, the government issued notification 111/2013-Customs (NT), by which the tariff value of gold and silver was reduced to USD 414 per 10 grams: http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csnt2013/csnt111-2013.htm

Customs: Teetwa notified for baggage from / to Pakistan, route notified

Notification 63/94-CE(NT), issued under section 7 of the Customs Act 1962, specifies land customs stations and routes through which alone import or export is allowed. For Pakistan, the notification has now been amended to include Teetwa in Kupwara district, for purpose of clearance of baggage. The route to be taken is Teetwal-Nauseri. The amending notification, number 108/2013-Customs (NT) dated 1 November 2013, can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2013/csnt2013/csnt108-2013.htm

Customs & excise classification: all steel is alloy steel: CESTAT

In the context of a dispute on whether the goods imported were alloy steel or not, the CESTAT observed, inter alia, that all steel is alloy steel and there is no definition of non-alloy steel in the tariff. This was a customs case, but the tariff classifications are the same in the central excise tariff schedule too, both being HSN based. Based on this and on the fact that the imported goods were used for export production, the Ahmedabad bench of the CESTAT waived pre-deposit in an appeal by Welspun Corporation Limited involving Rs 860 crores. A narration can be perused at http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail. php3&newsid=19030

Service Tax: bar on Cenvat credit for payment of tax on import of service did not cover capital goods Cenvat credit: CESTAT
Rule 5 of the rules governing import of service, namely the Taxation of Service (provided from outside India and received in India) Rules 2006, provided that Cenvat credit of inputs and input services shall not be used for paying service tax on the imported service. However this ban did not cover capital goods credit, observed the CESTAT, Bangalore bench, in the case of MLR Motors. Pre-deposit of duty was waived for the major part of the demand. A narration can be perused at http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail. php3&newsid=19023

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Updated and written by Radha Arun [radha.arjuni@gmail.com], Consultant to Udyog Software (India) Ltd.
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