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Jurisdiction of State Commission in inter-state PPAs

The Appellate Tribunal for Electricity in its recent order has held that Haryana State Electricity Regulatory Commission has no jurisdiction to go into the dispute on validity of termination of Power Purchase Agreement (PPA) between the power producer (appellant) and the inter-state power trading licensee in a petition filed by purchaser who was not a party to the said PPA. In the case befor...

E-payment of Customs duty mandatory for specified imports

10th September, 2012 E-payment of Customs duty will be mandatory from 17th September, 2012, for importers registered under Accredited Clients Programme (ACP) or those paying Customs duty of Rs. 1 lakh or more per Bill of Entry.  Last year, the Central Board of Excise & Customs by its Circular No. 33/2011-Cus., dated 29-7-2011 had specified these classes of importers for mandatory e-payment....

Return to be filed even if benefit under DTAA claimed

18th August, 2012 In a ruling rendered on 14th August, 2012, the Authority for Advance Rulings, India observed that the theory of precedents may not have strict application in proceedings before it and the decisions of High Courts have only persuasive value. It noted that the Authority was not subordinate to any High Court for applicability of Article 227 of the Constitution. The Chairman of ...

Australian tobacco packaging law upheld

17th August, 2012 The High Court of Australia in its order dated 15-8-2012 has upheld the constitutional validity of the Tobacco Plain Packaging Act, 2011. The legislation mandates all cigarettes packets and cartons to be uniform or in identical colours with about 25% of the surface being available to  display company name, brand name and so on. It also provides for displaying graphic warn...

Reverse charge in Service Tax extended to Directors’ & Security Services

10th August, 2012 Companies receiving services of directors and business entities registered as body corporate receiving security services from an individual or HUF or partnership firm or AOP have been made liable for payment of service tax under the reverse charge mechanism. Notification Nos. 45 & 46/2012-S.T., both dated 7-8-2012 issued by the Central Board of Customs & Excise, amend the ea...

24X7 Customs clearance from 1st September, 2012

10th August, 2012 As India’s trade with its global partners continue to grow, the customs ports are getting clogged with containers and bulk cargo. To reduce dwell time and grant faster clearance to export and imported goods, Indian Government has been implementing a slew of measures to reduce interaction with the Customs and by placing more trust on the trade.     In line with the policy ...

Downstream investments by banking companies

6th August, 2012 Downstream investments made by a banking company incorporated in India, which is owned and/or controlled by non-residents/non-resident entities, on account of Corporate Debt Restructuring (CDR), or other loan restructuring mechanism, or in trading books, or for acquisition of shares due to defaults in loans, shall not count towards downstream investment, and thus shall not be...

World Investment Report predicts lower growth in 2012

4th August, 2012 The UNCTAD released the World Investment Report, 2012 recently. Focussing on FDI, it states that the growth rate will be slow in 2012 and that Russia’s accession to the WTO could increase the role of services sector in transition economies of South-East Europe. The Report also analyses the trends in Investor-State Dispute Settlement (ISDS) and suggests reform to bring greater...

Compounding under FEMA – RBI clarifies

4th August, 2012 The Reserve Bank of India through its circular no. 11 dated July 31, 2012 has clarified the position on compounding of contraventions under the Foreign Exchange Management Act, 1999 (FEMA).      According to the circular, once the compounding application is filed suo motu by the applicant, admitting to the contravention, the RBI shall not classify the violation as a techni...

Polishing pads for semiconductor wafer-polishing machines not classifiable as its parts

30th July, 2012 Polishing pads intended for a polishing machine for working semiconductor materials are classifiable under Heading 3919 of the Common Customs Tariff of EU. The Court of Justice of the European Union (CJEU), in its recent order dated 19-7-2012, has held that such items do not fall under Heading 8466/8486.     The Court was answering the question in the case Receveur principa...

Software companies covered under ESI Act

24th July, 2012 The Bombay High Court has held that software companies are covered under the definition of ‘factory’ in the Employees’ State Insurance Act, 1948. It was held that the definition of ‘factory’ in the ESI Act has wider meaning as compared to the definition of the same under the Factories Act. The Court in its order dated 11-7-2012 in the case Asstt. Director, ESIC v. Western O...

India simplifies PCT national phase application filing

7th July, 2012 Applicants filing PCT National Phase application in India will be required to fill up only columns 1, 2 and  3 of Form 2. The Controller General, Patents, Designs & Trade Marks, India,  has issued a public notice simplifying procedures in this regard from 6th July, 2012. Details like description, claims and abstract hitherto provided under columns 4, 5 and 7 will be taken by...

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