• INDIRECT TAXATION

Customs

Circular No. 06/2010 Dated 19.03.2010 - Rebate on supply of goods by DTA units made to SEZs

It has been clarified by the CBEC that rebate under Rule 18 of the Central Excise Rules, 2002 is admissible for supplies made from DTA to SEZ does not warrant any change even if Rule 18 does not mention such supplies in clear terms in view of the 29/2006- Cus dated 27.12.2006. The said circular also laid down procedure and the documentation for effecting supply of goods from DTA to SEZ, by modifying the procedure for normal export. Clearance of duty free material for authorised operation in the SEZ is admissible under Section 26 of the SEZ Act, 2005 and procedure under Rule 18 or Rule 19 of the Central Excise Rules is followed to give effect to this provision of the SEZ Act, as envisaged under Rule 30 of the SEZ Rules, 2006.

Circular No. 07/2010 Dated 23.03.2010 - Recovery of drawback amount on the portion of the FOB value of export not realized by the exporter but compensated by ECGC - reg

Technical officer (Drawback) has clarified that Central Government may specify the procedure for the recovery of the amount of such drawback as per Rules made under section 75 (2). A procedure has also been laid down under the Customs, Central Excise and Service Tax Drawback Rules, 1995 for recovery of drawback in case of non-realization of export proceeds. Therefore, the amount of drawback paid in all such cases where export proceeds have not been realized has to be recovered.

Further, it has been clarified that provisions contained in para 2.25.1 and 2.25.4 of the HBP v.1 (2009-14) would not be applicable to the Drawback scheme, reason being that Drawback scheme is governed by the provisions of the Customs Act, 1962 and the Rules made there under which clearly provide that drawback should be recovered if sale proceeds have not been realized. Hence, 'Drawback' would not be payable in cases where export proceeds have not been realised in accordance with the provisions of the Foreign Exchange Management Act, 1999 even if the claim has been settled by ECGC or realisation waived by RBI. Action should be taken for recovery of drawback amount in such cases.

Notification No. 38/2010 Dated 23.03.2010 - Imposition of Anti-dumping duty on import of Coumarin originating in, or exported from, People's Republic of China

Central Government on the basis of the findings of the designated authority, imposes an anti-dumping duty on the import of Coumarin falling under sub heading 2932 21 00 of the First Schedule to the Customs Tariff Act, 1975 originating in, or exported from, People's Republic of China.The anti-dumping duty imposed under this notification shall be effective upto and inclusive of the 22nd day of September, 2010 and shall be payable in Indian currency.

Notification No. 35/2010 Dated 19.03.2010 -Import of Pre-sensitized Positive Offset Aluminium Plates (PS Plates) subjected to provisional assessment till the review is completed

Central Government, after having considered there commendation of the designated authority has decided allow import of the Pre-sensitized Positive Offset aluminium Plates (PS Plates) originating in, or exported from Bulgaria, China PR, Malaysia, Singapore and South Kore asubject to the provisional assessment till completion of investigation by the designated authority. The provisional assessment thus imposed may be subject to such security or guarantee as the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, deems fit for payment of the deficiency, if any, in case a definitive anti-dumping duty is imposed retrospectively, on completion of investigation by the designated authority.

Excise

Circular No. 919/09/2010 - CX Dated 23.03.2010 - Procedure for electronic filing of Central Excise and Service Tax returns and for electronic payment of Excise Duty and Service Tax

DG (Systems) has prepared comprehensive instructions outlining the procedure for electronic filing of excise and service tax return and electronic payment of taxes under ACES, same has been provided vide undersigned. The instructions thus issuedoutline the registration process for new assessees, existing assessees, non-assessees and for Large Taxpayers Unit assessees, steps for preparing and filing of return, using of XML Schema for filing dealers' return, procedure for obtaining acknowledgement of E-filed return, procedure for E-payment etc.

• DIRECTORATE GENERAL OF FOREIGN TRADE

Notification No. 34/2009-2014 Dated 25.03.2010 - Exemption in Prohibition on export of Pulses - regarding

The Central Government has with immediate removed prohibition on export of 60 MTs of pulses (Dal)) to the Republic of Maldives. Accordingly, Notification No. 15 (RE-2006)/2004-09 dated 27.06.2006 read with Notification No. 99 (RE-2008)/2004-09 dated 27.03.2009, stands amended.

Policy Circular No. 27/2009-2014 Dated 25.03.2010 - Acceptance of cash payments (in Foreign Currency Notes), for the purpose of fulfillment of export obligation (EO) by Service Providers under EPCG Scheme and SFIS scrips

It has been clarified by the DGFT that EPCG scheme is eligible for all service providers as listed in Appendix 10 of HBP Vol. I. As per the RBI guidelines, where the Service Provider receives Foreign Exchange in cash from foreign consumers in India, would be entitled to count such payments received in foreign currency notes towards export obligation of EPCG. Such earnings of foreign exchange shall also be entitled for SFIS scheme. In such cases, the Service Provider as per RBI rules surrenders the foreign currency notes to Authorized Persons (APs , including the APs' franchises). However, for claiming benefit, of such foreign exchange received in cash by the service provider under the EPCG or SFIS scheme, the Service Provider must maintain a separate register containing the foreign consumers' details, like Name, Passport Number, date and amount of foreign exchange received in cash.

• MINISTRY OF COMMERCE AND INDUSTRY

Department of Commerce

Notification No. SO612(E) Dated 17.03.2010 - Section 10 of the Tobacco Board Act, 1975 be non- operational in the State of Karnataka effective 17.03.2010 up to 30th April, 2010

Central Government relaxes the operation of the provision of Section 10 of the Tobacco Board Act, 1975 in the State of Karnataka for the period commencing from the date of publication of this notification in the Official Gazette , that is 17.03.2010 and ending up to the 30th April, 2010 and permits the sale of excess FCV tobacco crop of the registered growers and FCV tobacco crop of the unregistered growers at the auction platforms authorised by the Tobacco Board.

• RESERVE BANK OF INDIA

A.P. (DIR Series) Circular No. 42 Dated 25.03.2010 - Exim Bank's Line of Credit of USD 50 million to the Government of the Republic of Zambia

Exim Bank has concluded an Agreement dated January 6, 2010 with the Government of the Republic of Zambia making available to the latter, a Line of Credit (LOC) of USD 50 million (USD fifty million) for financing eligible goods and services including consultancy services from India for Itezhi-Tezhi hydro power project in Zambia. The goods and services including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. The Credit Agreement under the LOC is effective from March 4, 2010 and date of execution of Agreement is January 6, 2010.

RBI IDMC Circular No. IDMD. DOD. 07 /11.01.09/2009-10 Dated 25.03.2010 - Guidelines on Stripping/Reconstitution of Government Securities

RBI has released detailed guidelines outlining the process of stripping/reconstitution and other operational procedures regarding transactions in Separate Trading of Registered Interest and Principal of Securities [STRIPS]. It will ensure availability of sovereign zero coupon bonds in Government Securities, which will lead to the development of a market determined zero coupon yield curve (ZCYC). It will also provide institutional investors with an additional instrument for their asset-liability management. Further, as STRIPS have zero reinvestment risk (discounted instruments with no periodic interest payment thereby obviating the need for reinvestment of intermediate cash flows arising out of the investment), they can be attractive to retail/non-institutional investors.

• TELECOM REGULATORY AUTHORITY OF INDIA

Press Release No. 14/2010 Dated 25.03.2010 - TRAI releases consultation paper on -"Tariff Issues related to Cable TV Services in Non-CAS Areas"

Telecom Regulatory Authority of India has released a consultation paper on-"Tariff Issues related to Cable TV Services in Non-CAS Areas", covering the issues relating to Wholesale tariff of channels from broadcasters to MSOs, Retail tariff for cable TV services from cable operators to consumers and A-la-carte provision of channels from broadcaster to MSO iv) Carriage & placement fee paid by broadcasters to MSOs/cable operators v) Tariff for commercial subscribers, and vi) Digitization with addressability.