Representations have been received suggesting re-imbursement of education cess paid along with excise duty / terminal excise duty in respect of such supplies. The matter has been examined. It is accordingly clarified that in respect of supplies made with effect from 18.01.2005 education cess paid along with excise duty may also be reimbursed in the form of duty drawback & Terminal excise duty, as the case may be subject to fulfillment of all other requirements/provisions of deemed exports.
Clarification has been sought whether, after taking such precious metals on loan basis from the nominated agencies, the same can be converted into outright purchase. The matter has been considered in consultation with the concerned Departments and it is clarified that conversion of loan of precious metals taken from nominated agencies to outright purchase is allowed within the original stipulated export period i.e 60 days upto 31.3.05 and 90 days thereafter (90 days w.e.f. 10.5.2005 in case of SEZ) from the date of release.
The Committee constituted by SEBI to examine the issues relating to obtaining Unique Identification Number (UIN) under SEBI (Central Database of Market Participants) Regulations, 2003 (MAPIN) has submitted its report which has been placed on the SEBI website for public comments.
The issue pertains to classification of an item described as “mobile pen”. The item in question comes packed in a typical pen box, is supplied along with cable for connecting the device to the personal computer, spare refill (ball point) and a CD containing the mobile pen driver software. In terms of functionality, it comprises/combines the following three functions:
Attention is invited to Para 4.7 of Handbook of Procedures (Vol.1) wherein all vegetable/edible oils classified under Chapter 15 of ITC(HS) Book is excluded from the purview of Para 4.7. Based on the recommendation from Department of Agriculture and Cooperation following relaxations are made under Para 4.7 of Handbook of Procedures, Vol.1 subject to the following conditions.
In any case if the material is imported from unregistered sources and the licence holder has failed to export the goods, then the Advance Licences cannot be regularised on payment of applicable customs duties etc. Since the material is not to be allowed for consumption within India, the unregistered material may be allowed to be re-exported within valid Export Obligation period to the satisfaction of customs authorities that the material which was imported earlier is the same material that is being re-exported.
The Government has re-assigned 8 digit of ITC(HS) Codes to the Scheduled Chemicals of CWC and notified them in the Customs Tariff. Some of the commercially important Schedule 2 Chemicals are given at Annexure ‘A’ of this Circular. It is reiterated that the export of these chemicals is allowed only as per provisions in Appendix 3 to Schedule 2 of ITC(HS) after due consideration by the IMWG at DGFT (Hqrs) and not under the Advance Licence and other Export Promotion Scheme. Also the import of these chemicals is allowed freely, except from the 25 countries given at Annexure ‘C’ of this Circular.
Circular No. 4 of 2005-Income Tax Finance Act, 2003 amended section 206 of the Income-tax Act, 1961 to provide for mandatory filing of returns of tax deduction at source in computer media by principal officers of companies responsible for deducting tax in accordance with a scheme to be notified by the Board in the Official Gazette. The “Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003” was notified vide S.O. No. 974(E), dated 26-8-2003. Suitable amendments were made in the various rules and forms
The matter has been reconsidered in consultation with the concerned Departments. Accordingly, it is clarified that while the above stipulation is generally applicable in case of refund of excise duty, on account of the special provisions regarding Agencies/Funds covered under Appendix-13 of Handbook of Procedures and the fact that tender evaluation is without including the element of customs duty, it has been decided that subject to fulfillment of all the conditions in para 8.2(d) & para 8.4.4(ii) of Foreign Trade Policy, supply of goods to such projects would continue to get refund of excise duty without co-relating the same with CVD payable or otherwise on import.
I am directed to refer to Board’s Circulars No. 643/34/2002-CX dated 1.7.2002 and No. 813/10/2005-CX dated 25th April, 2005 in which clarification was issued on valuation in certain situations, inter alia in respect of valuation of capital goods or inputs removed as such from the factory of the manufacturer. It was clarified that in such situations, the provisions of rule 3(5) of CENVAT Credit Rules, 2004 shall apply.
