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The Supreme Court last week dismissed the appeal of Usha Rectifier Corporation challenging the levy of central excise on products which were used for research and development. The company manufactures electronic equipment. It bought components and assembled them for R & D. The company argued that there was no manufacture of any product which was marketable and therefore it was not liable to pay excise duty. It further contended that the equipment were used within the factory and it was not taken out of factory gates. The item was dismantled within the factory itself. Rejecting the argument, the Supreme Court ruled that “even if the equipment were used for captive consumption and within factory premises, considering that they were saleable and marketable, duty was payable on the goods.” Apart from capitalisation of the manufacturing process in the balance sheet, the company’s assertion that the equipment was meant to save foreign exchange by developing indigenous products, was an admission that the goods were marketable. Such products would be “deemed to have been removed from the factory premises for consumption,” the judgment said.
Service providers under licence from the Airports Authority of India (AAI) have to pay service tax and the liability is not that of AAI, the Supreme Court ruled last week in the case, Sparkway Enterprises vs Commissioner of Central Excise. AAI had entered into a licence agreement with the firm for collecting airport admission charges on behalf of AAI at Calicut airport. The Central Board of Excise and Customs had clarified in 2004 that services provided at airports have to pay service tax. When the authorities demanded service tax from the firm, it refused to pay arguing that it was not permitted to collect service tax from the public and the duty was on AAI. The latter was the principal service provider and the assessee firm was only a collecting agent. Rejecting the contention, the Supreme Court stated that according to the licence agreement, the firm was obliged to pay all rates and taxes.
Infrastructure Development Finance Company Limited (IDFC) has announced a public issue of its second tranche of secured, redeemable, long term infrastructure bonds having tax benefits under Section 80CCF of the Income Tax Act, 1961
State-run Infrastructure Development Finance Corporation (IDFC) today said it is looking to come out with a retail bond issue in the next fiscal. IDFC’s second tranche of retail bond issue to raise over Rs 2,900 crore opened today. The issue closes on February 4. The company has already raised Rs 471 crore in the first tranche in September.
ANF 2B has been prescribed as the application form for import of restricted items. It has 14 entries & 7 declarations. It also contains a set of guidelines for the applicant towards the end of the form. Guideline 4(b) requires a self certified copy of the proforma invoice from the foreign supplier. It has been decided to dispense with this requirement. Such self certified copy of the proforma invoice from the foreign supplier would no longer be needed to accompany the application form.
In view of Customs Notification No. 128/2010-Customs dated 22.12.2010, to allow import of Natural Rubber under exim codes 4001 21, 4001 22 and 4001 29 at concessional duty in the current financial year 2010-11, it has been decided by Director General of Foreign Trade to invite applications for allocation of the TRQ of Natural Rubber.
It cannot be accepted for EO fulfillment against the authorization obtained by the Yarn Supplier unless supplies are covered under Chapter 8 of FTP/HBP.Vol.I as the linkage of supplies to garment manufacturer cannot be established otherwise.
General Provisions (including that for Standard Assets) and loss reserves to the extent these are not attributable to actual diminution in value or identifiable potential loss in any specific asset and are available to meet unexpected losses, to the extent of one and one fourth percent of risk weighted assets.
The Reserve Bank of India (RBI) chief said on Monday the country is facing surging inflation and it needs to calibrate monetary policy in order to manage inflation and also support growth. The RBI will hold its quarterly monetary policy review on Jan
Section 43B opens with a non obstante clause which means that it controls the operation of other provisions of the Income-tax Act in that section 43B will have overriding effect notwithstanding other provisions under which a deduction may otherwise be allowable.
