TaxTMI Updates e-Newsletter
Apr 11,2012

Summary: The document explains that manufacture requires transformation into a new and distinct article, not mere quality improvement. Applying this, the Supreme Court found that adding polymers and additives to heated duty paid bitumen only enhanced its grade without altering identity or end use, and no Section or Chapter Notes in the tariff schedule deemed that process to be manufacture; accordingly polymer modified bitumen remains classified as petroleum bitumen, not a newly manufactured bituminous mixture.

Summary: Establishment of ten Spice Parks creates centralized export oriented processing and storage infrastructure with common facilities for cleaning, grading, colour sorting, grinding, packing and sterilization, alongside utilities, warehouses, quality testing and ancillary services. Parks employ a public private partnership model by leasing slots to exporters for private processing lines and value addition units, while regional Spice Board offices will operate from park sites to support growers and export logistics.

Summary: The Central Government, exercising powers under sub sections (1) and (5) of Section 9A of the Customs Tariff Act and rule 23 of the relevant anti dumping rules, amends Notification No. 96/2007 Customs so that the anti dumping duty on imports of Peroxosulphates originating in or exported from China PR and Japan shall remain in force up to and inclusive of the 18th day of March, 2013, unless revoked earlier.

Summary: Definitive anti-dumping duty is imposed on imports of phosphoric acid (excluding agriculture/fertiliser grade) from Israel and Taiwan after findings of export below normal value, material injury to domestic industry, and causal link; rates vary by producer, exporter and trade route as set in the notification, duties are payable in Indian currency with exchange rate determined by the notified Customs Act rate, and the levy remains effective for five years from the provisional duty imposition date unless earlier changed.

Summary: Rescission of Notification No. 04/2012 Customs (ADD) concerning anti-dumping duty on imports of phosphoric acid (excluding agriculture/fertilizer grade) originating in or exported from Israel and Taiwan, effected under section 9A of the Customs Tariff Act and applicable anti-dumping rules, with the rescission not affecting things done or omitted to be done prior to its operation.

Summary: The Central Government, acting under sub-section (1) of section 25 of the Customs Act, 1962, amends Notification No. 12/2012-Customs by substituting the figures and words in the proviso, clause (b), to change the operative commencement date for the prescribed rate of duty on import of goods.

Summary: The Circular applies the Point of Taxation Rules to airline ticketing: the tax point is the earlier of payment receipt or invoice issuance, so tickets issued before the rate change but paid for before that date attract the prior rate. Payments received by agents are treated as payments to the airline principal where a principal-agent relationship exists, and any excess tax collected and not refunded must be remitted to government under the statutory recovery mechanism.