Several representations have been received from members of the trade that import of raw cashewnuts are subject to the requirement of a PHA release order in terms of the PFA Act, 1954. After consultations with Ministry of Health and Family Welfare and the Department of Revenue, it has now been decided to exempt all such imports of raw cashewnuts from the formalities of the PHA release order which are meant for re-processing and export. As such Customs Authorities will release such consignments on Customs Bond for re-processing as provided for in Clause (I) of Section 143 of the Customs Act, 1962.
The matter has been examined by the Board and it has been decided to extend the time limit for completing the process of disposal of the uncleared /unclaimed goods landed upto 31.3.2003 by the custodians from 30.4.2004 to 31.12.2004.
I am directed to refer to Board’s Circular No. 581/18/2001-CX dated 29th June, 2001 which interalia, specifies conditions, procedures, class of exporters and places under sub-rule (2) of rule 20 of Central Excise Rules, 2002 for warehousing of excisable goods for the purpose of export. In paragraph 2(2) of the said Circular, Board has specified places where warehouses may be established. Now
Applications for DFRC/DEPB which are covered in category (a) above but have already been disposed of can be reconsidered by the concerned licensing authority on application. In such cases, a supplementary DFRC / DEPB, as the case may be, will be issued to the applicant.
The mater has been examined by Board. As per sub-rule (1) of rule 6 of CENVAT Credit Rules, 2002, the credit is not available on inputs which are used in the manufacture of exempted goods. Sub-rule (2) and sub-rule (3) of the said rule gives an option to the manufacturer to maintain the separate inventory of inputs for use in exempted goods or pay an amount of 8% of the price of the exempted goods
Circular No. 4 of 2004-Income Tax The tax-treatment of income from Deep Discount Bonds has been explained in the Board’s Circular No. 2/2002, dated 15-2-2002. Subsequently, the Board have received various requests for a clarification regarding tax deduction at source under section 193 of the Income-tax Act from interest on Deep Discount Bonds.
In view of the representation from the field formation, in the Annexure-I to the Circular No.30/2004-Cus., dated 16.4.2004, after the Sr.No.10.
I am directed to draw attention to the Circular No. 49/11/2002-ST dated 18.12.2002, whereby it was clarified that the work of Erection and Commissioning is in the nature of services provided by a “Consulting Engineer” and hence taxable under Service Tax. Also in the year 2003, Service Tax was imposed on Commissioning and Installation Service, effective from 1st July 2003.
Please note that on the operationalisation of Chapter XA of the Customs Act, 1962, along with the attendant Rules and Regulations, Drawback, DEPB and other export benefits would be available in respect of supplies from DTA to SEZ subject to fulfillment of relevant provisions of the EXIM Policy and Customs and Central Excise laws (including notifications).
The matter has been examined taking into account the Advisory Opinion 14.1 of the GATT Valuation Code, which stipulates that if the importer can demonstrate that the immediate sale under consideration took place with a view to export the goods to the country of importation, then such transaction would constitute an international transfer of goods. The later transaction, which led to the import, would be the relevant transaction for assessment and Rule 4 of Customs Valuation Rules, 1988 would apply. Hon’ble Supreme Court, in the case of M/s.Hyderabad Industries Limited [2000(115)E.L.T.593(S.C)].
