Circular No.02 of 2006-Income Tax Section 80-HHC read with section 28 of the Income-tax Act, 1961 has been amended by the Taxation Laws (Amendment) Act, 2005. The section 80-HHC so amended, inter-alia, provides that
The above instructions may be brought to the notice of all concerned for effective implementation. Please acknowledge receipt of this circular.
It is reiterated that the Certificate of Origin (NP) being issued by the agencies listed in Appendix 4-C of HBP Vol. I, should be strictly as per the official format, already notified by this Office as Annexure-II to Appendix 4-C. Agencies listed in Appendix 4-C and found not issuing the Certificate of Origin (NP) as per the prescribed official format, shall invite action as may be necessary, including delisting from the Appendix 4-C of HBP Vol.I.
I am directed to say that certain references have been received from field formations raising doubts over prospective implementation of the orders relating to classification, valuation or other matters having recurring revenue implications when a stay has been granted against recovery by Commissioner (Appeals) or Tribunal.
The Stock Exchanges are advised to report to SEBI, the action taken in this regard in Section II, item no. 13 of the Monthly Development Report for the month of February, 2006.
They accept responsibility for establishing and maintaining internal controls for financial reporting and that they have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and they have disclosed to the auditors and the Audit Committee,
The notification No 154/94-Cus dated 13-07-94 allows duty free import of commercial samples valued upto Rs 60,000 or 15 units in number within a period of 12 months, as personal baggage by bonafide commercial travelers or businessmen are imported by post or air. New Paragraph No. 4A.31 has been inserted in HOP so as to enable exporters of Gem & Jewellery sector to import samples without payment of duty up to Rs. Three lakhs or upto 0.25% of average 3 years export, whichever is lower. In order to implement the provision of HOP, notification No.154/94-Cus dated 13-07-94 was amended suitably by notification No.50/2005-Cus.
A doubt has arisen in cases where customs duty is chargeable on ad-valorem basis, whether there would be any requirement for determination of the quantity of the goods as the basis for levy of customs duty would be the transaction value, i.e., invoice price and not the quantity.
Now, in view of the Department’s Review Petition in the case of Commissioner of Customs, Calcutta, Vs. Indian Oil Corporation Limited being dismissed by the Hon’ble Supreme Court, all pending provisional assessments in respect of importation prior to 02.03.2001 may be finalized accordingly.
The matter has been considered by the Board and it has been decided that all pending cases involving lighterage charges would be finalized on the basis of World Scale Rates and AFRA wherever available. In case of minor ports where WSO rates along with AFRA are not available, the concerned Commissioners should direct the shipping companies to get the WSO rates fixed.
