Yet another Board Circular Quashed by high Court
TIOL-DDT 2894
22 07 2016
Friday
IN Circular No. 19/2013-Cus, dated 09.05.2013, the CBEC clarified that the articles, "Disposable Sterilized Dialyzer" and "Microbarrier", as filters would be classified in heading 84.21, subheading 8421.29, tariff item 84212900 - - Other, by application of GRI 1, Note 2 (a) to Chapter 90.
In a recent case decided by the Kerala High Court, the petitioner imported soft shell filter for blood bag. The petitioner claimed classification under chapter heading 9018 90 99 and exemption under Sl.No.309(i) of notification No.12/2012-CE dated 17/3/2012.
The Customs Department classified the goods under Chapter heading 8421 2900 based on Note 2(a) of Chapter 90. Reference was made to Board's Circular No.19/2013 wherein it was clarified that filtering apparatus for filtration of blood is classifiable under chapter heading 8421 29 00.
The High Court held that the Circular was not in terms with the statutory provisions and is liable to be set aside.
For more details of the case, please see Breaking News.
CESTAT - Appeals - DDs Should be Valid for 60 days
A CESTAT Circular states:
During receipt of Appeal/application in the Central Registry, it has been noticed that the DD/PO submitted towards registration fee has only a few days of validity left on the day of its submission. It may be appreciated that the DD/PO is valid only for three months and that scrutiny, rectification of defects, forwarding the DD/PO for clearance etc consume considerable time.
Keeping above in view, all concerned are requested to ensure that DD/PO submitted towards appeal/application fee must be valid at least for 60 days on the date of submission.
This issues with the approval of Hon'ble Registrar.
But why can't the CESTAT change to e-payment instead of depending on the archaic Demand Draft?
Classification of Glyphosate - CBEC Clarifies
BOARD had in Circular No. 1022/10/2016-CX dated 06.04.2016 clarified on the classification of Micronutrients, Multi-micronutrients, Plant Growth Regulators and Fertilizers.
Representations have been received from the the trade requesting clarification regarding Glyphosate Isopropyl amine (Glyphosate 360 Acid) which was placed under the category of Plant Growth Retardant.
To bring clarity on the issue, opinion was again sought from Indian Agricultural Research Institute (IARI). The relevant portion of the opinion received:
" ... Glyphosate is a broad-spectrum non-selective, systemic herbicide. Glyphosate is registered as herbicide in more than 160 countries including India, with more than 1.4 billion pounds applied every year on many food and non-food field crops as well as non-crop areas where total vegetation control is desired Major use of Glyphosate has been exclusively grouped under Herbicide category by CIBRC, Ministry of Agriculture, Govt. of India.
Glyphosate is among the most widely used herbicide by volume. Worldwide, more than 8, 00, 000 tonnes of glyphosate products are used, value of which is perhaps more than the value of all other herbicides combined The herbicide is used to kill weeds by inhibiting a plant enzyme involved in the synthesis of three aromatic amino acids: tyrosine, tryptophan, and phenylalanine.
When applied at lower rates, glyphosate acts as plant growth regulator similar to 2, 4- D, a synthetic form of auxin. Latter like glyphosate is one of the oldest and most widely available herbicides in the world, commercially available worldwide since 1945 ..."
In view of the above, Board directs that the classification of Glyphosate may be done in accordance with the clarification provided by IARI i.e. depending upon its usage. Difficulty faced, if any, in implementing the circular should be brought to the notice of the Board.
CBEC Circular No. 1039/27/2016-CX., Dated July 21 2016
Customs - New Exchange Rates From Today
CBEC has notified new exchange rates for Imported Goods and for Export Goods with effect from 22nd July 2016. The USD is 68.15 for imports and 66.45 Rupees for exports.
Notification No. 102/2016-Cus (NT)., Dated: July 21, 2016
Deduction of State /Central Taxes collected from customers while calculating foreign earnings for SFIS/SEIS Schemes
THE CAG Audit team has during the audit of Served From India Scheme files observed that charges made on Accommodation, Services, Food etc. invariably include State/Central Taxes collected from the Customers such as VAT, Luxury Tax on sale of Food items and Service Tax and such taxes paid by the Customers to Government through the Service Provider should not have been included for issuance of SFIS.
DGFT points out that the FTP specifies that "Service providers shall be entitled to duty credit equivalent of the foreign exchange earned by them". The Handbook of Procedures also specifies that "only such foreign exchange remittances as are earned as amounts in lieu of the services rendered by the service exporter would be counted for computation of the entitlement under this scheme". The State/ Central taxes payable by the Customer to Governments are collected from the Customer by the Service Provider on behalf of the Governments concerned. Hence, such taxes are not earnings of the service provider, as per the above provisions.
In light of the CAG observation, DGFT directs calculation of the entitlement only on the basis of receipt of foreign exchange earned by exporters, which does not include the taxes collected.
DGFT Trade Notice No.11/2015-20., Dated: July 21, 2016
Misuse of Official Position by Babu - What is Family?
AS per rule 4 (1) of CCS (Conduct) Rules, 1964,
no Government servant shall use his position or influence directly or indirectly to secure employment for any member of his family in any company or firm.
Rule 4(3) reads as:
"No Government servant shall in the discharge of his official duties deal with any matter or give or sanction any contract to any company or firm or any other person if any member of his family is employed in that company or firm or under that person or if he or any member of his family is interested in such matter or contract in any other manner and the Government servant shall refer every such matter or contract to his official superior and the matter or contract shall thereafter be disposed of according to the instructions of the authority to whom the reference is made."
Now, who are all included in this family? As usual, the government has given an inclusive definition.
Government clarifies that in the context of rule 4(1) and 4(3) "Members of family" in relation to a Government servant include the wife or husband, son or daughter, parents, brothers or sisters or any person related to any of them by blood or marriage, whether they are dependent on the Government servant or not.
DoPT office Memorandum in F.No.11013/4/2016-Estt (A-III)., Dated: July 20, 2016
GST and NSG
IF somebody doesn't agree once, it doesn't mean they will never agree; Our Congress friends are not allowing GST to be passed. All parties have agreed. But can they oppose it permanently and GST will never be passed? No. Maybe it will be passed in this session itself. I believe one day China will also support India's membership in the NSG."
Until Monday with more DDT
Have a nice Weekend.
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