spacer.gifsto247.gifspacer.gif Date of filing of ST-3 returns extended - returns for April to June, 2012 to be filed by 25th November, 2012 only.spacer.gifsto247.gifspacer.gif BREAKING NEWS : Service Tax half yearly ST-3 return to cover period from April, 2012 to June, 2012 only (ST Notification 47/2012)spacer.gifsto247.gifspacer.gif All Service Tax assessees are informed that they will not be able to file ST 3 returns in ACES now and have to wait until the modified version of ST 3 Form which is made available in a few weeks on aces.spacer.gifsto247.gifspacer.gif Penalty: Section 76: No delay in depositing service tax with Revenue: Penalty not imposable.spacer.gifsto247.gifspacer.gif Refund: Export of Services: Terminal Handling Charges also a port service.spacer.gifsto247.gifspacer.gif Penalty: Once the entire demand is set aside by Commissioner (A) and that order is not challenged by the department: Commissioner cannot impose penalty under Section 76 by passing a Review Order: Penalty set aside.spacer.gifsto247.gifspacer.gif Cargo Handling Service: The activity of transportation and stacking within the stockyard premises not covered: Demand set aside.spacer.gifsto247.gifspacer.gif Finance Act, 2012spacer.gifsto247.gifspacer.gifDefinitions introduced in Section 65C, Section 66B (Charge of Service Tax), Section 66C (Determination of Place of Provision of Service), Section 66D (Negative List), Section 66E (Declared Services), Section 66F (Bundled Services), Amendment to Section 67 (omitting of Explanation, Amendment to Section 68 (sharing of taxes between provider and receiver) would operate from 01.07.2012.spacer.gifsto247.gifspacer.gifThe notifications amending Cenvat Credit Rules, Valuation Rules, Service Tax Rules, Works Contract Composition Scheme have not been issued.spacer.gifsto247.gifspacer.gifSection 65, 65A, 66 & 66A would cease to operate from 01.06.2012spacer.gifsto247.gifspacer.gifThe clause (A), (B), (D) & (E) of Section 143 of the Finance Act,2012 will come into force from 01.06.2012 as per Notification No.18/2012 dated 01.06.2012spacer.gifsto247.gifspacer.gifNegative list based service tax will come into force from 1st july 2012spacer.gifsto247.gifspacer.gifFinance Bill, 2012; gets enacted on May 28, 2012 : Finance Act (No 23 of 2012)spacer.gifsto247.gifspacer.gif Aam aadmi becomes khaas aadmi spacer.gifsto247.gifspacer.gifCentral Excise and Service Tax returns combined into a one page form "EST-1"spacer.gifsto247.gifspacer.gifCentral Excise rates increased from 10 % to 12%spacer.gifsto247.gifspacer.gifService Tax Rate to be 12%  spacer.gifsto247.gifspacer.gif Date of filing of ST-3 returns extended - returns for April to June, 2012 to be filed by 25th November, 2012 only.spacer.gifsto247.gifspacer.gif BREAKING NEWS : Service Tax half yearly ST-3 return to cover period from April, 2012 to June, 2012 only (ST Notification 47/2012)spacer.gifsto247.gifspacer.gif All Service Tax assessees are informed that they will not be able to file ST 3 returns in ACES now and have to wait until the modified version of ST 3 Form which is made available in a few weeks on aces.spacer.gifsto247.gifspacer.gif Penalty: Section 76: No delay in depositing service tax with Revenue: Penalty not imposable.spacer.gifsto247.gifspacer.gif Refund: Export of Services: Terminal Handling Charges also a port service.spacer.gifsto247.gifspacer.gif Penalty: Once the entire demand is set aside by Commissioner (A) and that order is not challenged by the department: Commissioner cannot impose penalty under Section 76 by passing a Review Order: Penalty set aside.spacer.gifsto247.gifspacer.gif Cargo Handling Service: The activity of transportation and stacking within the stockyard premises not covered: Demand set aside.spacer.gifsto247.gifspacer.gif Finance Act, 2012spacer.gifsto247.gifspacer.gifDefinitions introduced in Section 65C, Section 66B (Charge of Service Tax), Section 66C (Determination of Place of Provision of Service), Section 66D (Negative List), Section 66E (Declared Services), Section 66F (Bundled Services), Amendment to Section 67 (omitting of Explanation, Amendment to Section 68 (sharing of taxes between provider and receiver) would operate from 01.07.2012.spacer.gifsto247.gifspacer.gifThe notifications amending Cenvat Credit Rules, Valuation Rules, Service Tax Rules, Works Contract Composition Scheme have not been issued.spacer.gifsto247.gifspacer.gifSection 65, 65A, 66 & 66A would cease to operate from 01.06.2012spacer.gifsto247.gifspacer.gifThe clause (A), (B), (D) & (E) of Section 143 of the Finance Act,2012 will come into force from 01.06.2012 as per Notification No.18/2012 dated 01.06.2012spacer.gifsto247.gifspacer.gifNegative list based service tax will come into force from 1st july 2012spacer.gifsto247.gifspacer.gifFinance Bill, 2012; gets enacted on May 28, 2012 : Finance Act (No 23 of 2012)spacer.gifsto247.gifspacer.gif Aam aadmi becomes khaas aadmi spacer.gifsto247.gifspacer.gifCentral Excise and Service Tax returns combined into a one page form "EST-1"spacer.gifsto247.gifspacer.gifCentral Excise rates increased from 10 % to 12%spacer.gifsto247.gifspacer.gifService Tax Rate to be 12%
Share

 

Words, Phrases and Definitions

1. ‘Anti dumping’ is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Thus, the purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade. The use of anti dumping measure as an instrument of fair competition is permitted by the WTO. In fact, anti dumping is an instrument for ensuring fair trade and is not a measure of protection per se for the domestic industry. It provides relief to the domestic industry against the injury caused by dumping.

2. ‘Anti dumping duty’ means a duty imposed under sub-section (1) or (1A) of the Customs Tariff Act, 1975 in pursuance of the final findings of the Designated Authority after completion of investigation.

3. ‘Article VI of GATT’ lays down the terms of agreement between the signatory Nations concerning Anti-Dumping and Countervailing Duties. 

4. ‘Causal Link’ between dumping and injury to the domestic industry is required to establish injury to the domestic industry by dumping. Such a link must exist between the material injury being suffered by the Indian industry and the dumped imports.

5. ‘Confidential Information’ means any information provided to the Designated Authority on a confidential basis by any party. Such information shall not be disclosed to any other party without the specific authorization of the party providing the information. 

6. ‘Constructed Export Price’: If there is no export price or the export price is not reliable because of association or a compensatory arrangement between the exporter and the importer or a third party, the export price may be constructed on the basis of the price at which the imported articles are first resold to an independent buyer. If the articles are not resold as above or not resold in the same condition as imported, their export price may be determined on a reasonable basis.

7. ‘Domestic industry’ as per Rule 2 (b) of the Anti-Dumping Rules, 1995 means the domestic producers as a whole engaged in the manufacture of the like article and any activity connected therewith or those whose collective output of the said article constitutes a major proportion of the total domestic production of that article except when such producers are related to the exporters or importers of the alleged dumped article or are themselves importers thereof in such case the term “domestic industry” may be construed as referring the rest of the producers. 

Provided that in exceptional circumstances referred to in sub-rule (3) of Rule 11, the domestic industry in relation to the article in question shall be deemed to comprise two or more competitive markets and the producers within each of such market a separate industry, if -

the producers within such a market sell all or almost all of their production of the article in question in that market; and

the demand in the market is not in any substantial degree supplied by producers of the said article located elsewhere in the territory;

Explanation. - For the purposes of this clause,-

(i) producers shall be deemed to be related to exporters or importers only if,-

a) one of them directly or indirectly controls the other; or

b) both of them are directly or indirectly controlled by a third person; or

c) together they directly or indirectly control a third person subject to the condition that are grounds for believing or suspecting that the effect of the relationship is such as to cause the producers to behave differently from non-related producers.

(ii) a producer shall be deemed to control another producer when the former is legally or operationally in a position to exercise restraint or direction over the latter.

8. ‘De Minimis Margins’: The margin of dumping shall be considered de minimis if it is less than two percent of the export price. Any exporter whose margin of dumping is less than 2% of the export price shall be excluded from the purview of anti-dumping duties even if the existence of dumping, injury as well as the causal link are established.

9. ‘Designated Authority’ conducts the anti dumping investigation and makes recommendation to the Government for imposition of anti dumping duties. Rule 3 of the Anti-dumping Rules, 1995 deals with the appointment of designated authority. It empowers the Central Government to appoint a person not below the rank of a Joint Secretary to the Government of India or such other person as that Government may think fit as the designated authority for purposes of these rules, by issue of notification in the Official Gazette.

10. ‘Determination of injury’ means the effect on price in the domestic market for like articles and the consequent effect of such imports on domestic producers of such articles found by the designated authority during an anti-dumping investigation.

11. ‘Dumping’ means export of an article from any country or territory to India at less than its normal value i.e. when the prices at which the goods are exported to India are less than the comparable price for the like product when destined for consumption in the domestic market of the exporting country. The Central Government can impose anti-dumping duty only if the imports of dumped article into India causes and threatens material injury to any established industry in India and materially retains the establishment of any industry in India. 

12. ‘Export Price’ as per explanation (b) of Section 9A(1) of the Customs Tariff Act, 1975 means the price of the article exported from the exporting country or territory and in cases where there is no export price or where the export price is unreliable because of association or a compensatory arrangement between the exporter and the importer or a third party, the export price may be constructed on the basis of the price at which the imported articles are first resold to an independent buyer or if the article is not resold to an independent buyer, or not resold in the condition as imported, on such reasonable basis as may be determined in accordance with the rules made under sub-section (6).”

13. ‘Extent of anti-dumping duty’: Under the WTO arrangement, the National Authorities can impose duties upto the margin of dumping i.e. the difference between the normal value and the export price. The Indian law also provides that the anti-dumping duty to be recommended/levied shall not exceed the dumping margin. 

14. ‘Final Findings’: The findings notified by the Designated Authority determining the extent of margin of dumping for imposition of final anti-dumping duty after completion of investigation, is known as Final Findings.

15. ‘General Agreement on Tariffs and Trade’ is an agreement between various nations of the world for achieving the objectives of raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, developing the full use of the resources of the world and expanding the production and exchange of goods, by substantial reduction of tariffs and other barriers to trade and elimination of discriminatory treatment in international commerce.

16. ‘Injury to Domestic industry’ means the material injury caused or threatening to be caused to the Indian domestic industry by dumped imports. Material retardation to the establishment of an industry is also regarded as injury.

17. ‘Investigation’: Under the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Designated Authority is required to carry out investigations on a complaint regarding dumping and give his findings with regard to the existence of dumping, injury to the domestic industry and a causal link between the two. Having determined the existence of dumping, injury and causal link, the Designated Authority also determines the quantum of duty during the investigation.

18. ‘Interested Party’: As per Rule 2 (c) of the Anti-Dumping Rules, 1995 “interested party” includes -

(i) an exporter or a foreign producer or the importer of an article subject to investigation for being dumped in India, or a trader or business association a majority of the members of which are producers, exporters or importers of such an article;

(ii) the government of the exporting country; and

(iii) a producer of the like article in India or a trade and business association a majority of the members of which produce the like article in India;

19. ‘Like Article’ as per Rule 2 (d) of the Anti-Dumping Rules, 1995 means an article which is identical or alike in all respects to the article under investigation for being dumped in India or in the absence of such article, another article which although not alike in all respects, has characteristics closely resembling those of the articles under investigations.

20. ‘Margin of Dumping’ is defined in Section 9A of the Customs Tariff Act, 1975 as the difference between the Normal value and the export price of the goods under complaint. It is generally expressed as a percentage of the export price. 

21. ‘Non-Injurious Price’ is that level of price, which the industry is, expected to have charged under normal circumstances in the Indian market during the Period defined. This price would have enabled reasonable recovery of cost of production and profit after nullifying adverse impact of those factors of production which could have adversely effected the company and for which dumped imports can’t be held responsible.

22. ‘Non-market Economy’: The term “non-market economy country” means any country which the designated authority determines as not operating on market principles of cost or pricing structures, so that sales of merchandise in such country do not reflect the fair value of the merchandise, in accordance with the criteria specified in sub-paragraph. 

23. ‘Normal value’ in relation to an article, means -

(i) the comparable price, in the ordinary course of trade, for the like article when destined for consumption in the exporting country or territory as determined in accordance with the rules made under sub-section (6); or

(ii) when there are no sales of the like article in the ordinary course of trade in the domestic market of the exporting country or territory, or when because of the particular market situation or low volume of the sales in the domestic market of the exporting country or territory, such sales do not permit a proper comparison, the normal value shall be either -

(a) comparable representative price of the like article when exported from the exporting country or territory to an appropriate third country as determined in accordance with the rules made under sub-section (6); or

(b) the cost of production of the said article in the country of origin along with reasonable addition for administrative, selling and general costs, and for profits, as determined in accordance with the rules made under sub-section (6):

Provided that in the case of import of the article from a country other than the country of origin and where the article has been merely transhipped through the country of export or such article is not produced in the country of export or there is no comparable price in the country of export, the normal value shall be determined with reference to its price in the country of origin.

24. ‘Preliminary Findings’: The findings notified by the Designated Authority determining existence and effect of dumping for imposition of provisional anti-dumping duty is known as Preliminary Findings.

25. ‘Price Effect’: It means the effect of the dumped imports on prices in the Indian market for like articles, including the existence of price undercutting, or the extent to which the dumped imports are causing price depression or preventing price increases for the goods which otherwise would have occurred. 

26. ‘Price undertaking’: The exporter of an article in question furnishes an undertaking in writing to the designated authority to revise the prices so that no exports of the said article are made to India at dumped prices or in the case of imports from specified countries undertake to revise the prices so that injurious effect of dumping is eliminated and the designated authority is satisfied that the injurious effect of the dumping is eliminated, such undertaking is known as Price Undertaking. 

27. ‘Provisional duty’ as per Rule 2 (e) of the Anti-Dumping Rules, 1995 means an anti dumping duty imposed under sub-section (2) of section 9A of the Act.

28. ‘Retrospective Levy’: Levy of anti-dumping duty with effect from 90 days from the date of issue of Notification imposing provisional duty or from the date of initiation of investigation, is known as retrospective levy of Anti-Dumping duty. 

29. ‘Sales’ in ordinary course of trade means sales are made at arm’s length in normal open market transactions. The sales made at unit price which are less than the per unit cost may not be considered for determination of normal value provide such sale are made at prices which do not provided for recovery of all costs within a reasonable period of time and such sale occurs in substantial quantities within an extended period of time.

30. ‘Specified Country’ as per Rule 2 (f) of the Anti-Dumping Rules, 1995 means a country or territory which is a member of the World Trade Organization and includes the country or territory with which the Government of India has an agreement for giving it the most favoured nation treatment;

31. ‘Volume Effect’: The Designated Authority examines the volume of the dumped imports, including the extent to which there has been or is likely to be a significant increase in the volume of dumped imports, either in absolute terms or in relation to production or consumption in India, and its affect on the domestic industry.

32. ‘World Trade Organisation’ is a global international organization with membership of majority countries of the world, established for dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible by operating a system of trade rules.

             
 
              
www.customsindiaonline.com
 
 
                               
 
Copyright 2010, AntiDumpingLaws.com. All rights reserved.
This is a Beta Version.