Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535, Email: sales@udyogsoftware.com

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information

without appropriate professional advice after a thorough examination of the particular situation. Page 1

Import and export of hazardous waste prohibited The central government has prohibited the import as well as export of hazardous waste. The list of banned items is in Schedule VI to the Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008, issued under the Environment (Protection) Act, 1986. The notification can be seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-nt2012/csnt31-2012.htm. Stuctural parts of boiler: Cenvat credit admissible The CBEC has issued a beneficial circular to set at rest a long standing controversy about Cenvat credit on parts of boilers. The circular informs us that field formations were denying credit on structural parts of boilers to purchasers of boilers by classifying these at the buyer’s end under chapter 73 and invoking the exclusion from the category of ‘inputs’ in Rule 2(k) that keeps out

“(B) Any goods used for (a)… (b) laying of foundation or making of structures for support of capital goods.”

The CBEC has found that the classification under chapter 73 is incorrect, and that the structural parts must be classified as parts of boilers under heading 8402. Further it has instructed its field formations that parts of boilers are covered in the definition of input in Rule 2(k) as –

“(iii) all goods used for generation of electricity or steam for captive use”.

The CBEC circular speaks of purchased structural parts of boilers. Boilers are also commonly fabricated, assembled and erected in-house in factories; it is hoped that this circular will be useful to settle a similar controversy about material purchased for making these structural parts. The circular can be seen at http://cbec.gov.in/excise/cx-circulars/cx-circ12/964-2012cx.htm Power given to cost accountant / chartered accountant to inspect records for audit The government may appoint a cost accountant or chartered accountant for valuation audit or Cenvat credit audit of the accounts of an assessee, under sections 14A and 14AA respectively of the Central Excise Act 1944. Now the government has amended the Central

UDYOG TAX NEWS FLASH 7th APRIL 2012

Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535, Email: sales@udyogsoftware.com

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information

without appropriate professional advice after a thorough examination of the particular situation. Page 2

Excise Rules 2002 to provide legal backing for inspection of records by such an auditor. Rule 22 of the Central Excise Rules 2002 has been amended to this effect by notification 22/2012-CE(NT) dated 30 March 2012, which can be seen at http://cbec.gov.in/excise/cx-act/notfns-2012/cx-nt2012/cent22-2012.htm. Excise duty at 14% for naptha and other specified petroleum oils & oils obtained from bituminous material In notification 12/2012-CE dated 17 March 2012, an effective rate of 14% had been stipulated for food grade hexane. This rate has now been extended to naptha, vide notification 21/2012-CE dated 30 March 2012, which can be seen at http://cbec.gov.in/excise/cx-act/notfns-2012/cx-tarr2012/ce21-22-2012.pdf, The rate of 14% has also been extended to specified petroleum oils and oils obtained from bituminous material by substituting a new entry for entry no. 15 of notification 18/2012-CE dated 17 March 2012,by notification 22/2012-CE dated 30 March 2012, which too can be seen at http://cbec.gov.in/excise/cx-act/notfns-2012/cx-tarr2012/ce21-22-2012.pdf. The list in the notification, covered by the 14% rate is decoded as follows: 2710 12 11 to 2710 12 13. This covers (i) 2710 12 11 Special boiling point spirits (other than benzene, toluol) with nominal boiling point range 55 - 115 degrees Celsius; (ii) 2710 12 12 Special boiling point spirits (other than benzene, benzol, toluene and toluol) with nominal boiling point range 63 – 70 degrees Celsius; (iii) 2710 12 13 Other special boiling point spirits (other than benzene, benzol, toluene and toluol). 2710 12 20. This covers Natural Gasolene Liquid (NGL). 2710 12 90 This covers other light oils and preparations. 2710 20 00 This covers petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included (in the tariff), containing by weight 70% or more of petroleum oils and oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, containing biodiesel, other than waste oils. Dumping duty on tyres, tubes & flaps extended The DG Anti-Dumping undertook a sunset review of the dumping duty imposed under notification 88/2007-Cus dated 24 July 2007 on specified tyres, tubes and flaps for buses and trucks, imported from or manufactured in People’s Republic of China, Thailand or Korea, and “requested for” extension of the anti-dumping duty for one more year. Accordingly the government has issued notification 17/2012-Customs (Anti-Dumping) dated 30 March 2012, extending the duty upto 7 October 2012. The items covered are “‘new/unused pneumatic non radial bias tyres,

tubes & flaps with or without tubes and/or flap of rubber, having nominal rim dia code above 16”used in buses and lorries/trucks’, falling under tariff items 4011 20 90, 4013 10 20 and 4012 90 49 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, China PR and Thailand”. The notification can be seen at

http://cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-add2012/csadd-17-2012.htm.

Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535, Email: sales@udyogsoftware.com

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information

without appropriate professional advice after a thorough examination of the particular situation. Page 3

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Update Written

By Radha Arun,

Consultant To

Udyog Software ( India) Ltd

It may be noted in passing that the notification records, as mentioned above, that the designated authority “requested for extension of anti-dumping duty upto one more year from the date of initiation of the sunset review.” (The underlining has been added here.) However, the duty of the designated authority is to “recommend” and not to “request”, as can be seen from the wordings consistently used in the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules 1995. Dumping duty on flat base steel wheels from China extended Dumping duty had been imposed under notification 124/2007-Customs dated 31 December 2007, on flat base steel wheels manufactured in or imported from the People’s Republic of China. This has been extended upto 27 March 2012 by notification 16/2012-Customs (ADD) dated 20 March 2012. Here again, the notification records that the extention of anti-dumping duty for one year was “requested” by the designated authority. CBEC issues instructions regarding exemption for ore concentrate Ores were exempted from central excise duty under notification 4/2006-CE, and the exemption has been continued after the Budget 2012, in s.no. 56 of notification 12/2012-CE dated 17 March 2012. Customs formations raised the issue of whether imported ore concentrates come within the scope of exemption from CVD under these entries. The issue was examined in a tariff conference of Chief Commissioners of Customs, and they concluded that ores and concentrates of ores are two different things, and that the concentrates do not qualify for exemption. This has been circularised by the CBEC under circular no. 9/2012-Customs dated 23 March 2012, which can be viewed at http://cbec.gov.in/customs/cs-circulars/cs-circ12/circ09-2012-cs.htm.