manupatra roundup
Legislative and Regulatory Update
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In This Issue [No.34] Dec 10, 2002
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Regulations
Securities and Exchange Board of India (Prohibition of Insider Trading) (Second Amendment) Regulations, 2002
Notification No. SO1245(E) Dated 29.11.2002 : Apart from minor amendments the regulations make the following further amendments
1. in clause (h), for sub-clause (ix) the following shall be substituted, namely;-
" (ix) is a concern, firm, trust, Hindu Undivided Family, company or association of persons wherein any of the connected persons mentioned in sub-clause (i) of clause (c), of this regulation or any of the persons mentioned in sub-clauses (vi), (vii) or (viii) of this clause have more than 10 % of the holding or interest."
2. Regulation 3B specifying that Regulation 3A not to apply in certain cases has been inserted.
3. Clause 3.2.3A has been inserted which says that the time for commencement of closing of trading window shall be decided by the company.
Press Release
Corporatisation and Demutualisation of Stock Exchanges
Press Release No. PR 267/2002 Dated 29.11.2002 : The SEBI Board has considered the recommendations of the Group formed under the Chairmanship of Shri M H Kania, former Chief Justice of India and has inter alia approved some of the points.
Jurisdiction of Income-tax authorities
Notification No. 360/2002 and No. 361/2002 Dated 03.12.2002 : Central Board of Direct Taxes has made amenndment to Notification No. S.O. 733(E) and No. S.O. 734(E) Dated 31.07.2001 regarding Jurisdiction of Income-tax authorities
REC 54 EC Capital Gains Tax Exemption Bonds Specified for purpose of Section 193(iib)
Notification No. 359/2002 Dated 02.12.2002 : Central Government has specified the “REC 54 EC Capital Gains Tax Exemption Bonds” issued by the Rural Electrification Corporation Limited, New Delhi for the purposes of Section 193(iib)
Income-tax (26th Amendment) Rules, 2002
Notification No. 358/2002 Dated 29.11.2002 : Rule 18AAAAA relating to Guidelines for specifying an association or institution for the purposes of notification under clause (c) of sub-section (2) of section 80G, has been inserted.
Notifications under various sections of Income Tax Act, 1961
Notification No. 350/2002 to No. 356/2002 Dated 26.11.2002, 27.11.2002 and 29.11.2002 : Institute for Development and Communication, Chandigarh has been Notified U/S10(23C)(iv), Auroville Foundation Aprroved U/S 35(1)(iii), M/s TCI Infrastructure Finance Limited,Jaipur, M/s Sterling Cellular Limited, M/s Aircel Digilink India Limited, New Delhi and M/s Ideal Road Builders Ltd,Mumbai Approved U/S 10(23G) and Swami Ramananda Tirtha Memorial Committee, Hyderabad have been Notified U/S 10(23C) of the of Income Tax Act, 1961.
Sports and Games Specified for Purpose of Section 80G
Notification No. 357/2002 Dated 29.11.2002 : The Central Government has specified certain games and sports for the purposes of section 80G in respect of the assessment year 2003-2004 and subsequent assessment years.
Inclusion of interest on sales tax in the assessable value.
Circular No. 70/679/2002 Dated 04.12.2002 : Department has clarified that interest earned on deferred sales tax cannot be treated as “additional consideration” under the Central Excise Valuation Rules and the same cannot be added to the Assessable value in terms of Rule 5 of Central Excise Valuation Rules, 1975 or Rule 6 of the Valuation Rules, 2000
Classification and dutiability of "thrust bearing assembly"
Circular No. 69/678/2002 Dated 04.12.2002 : Department has clarified that "thrust bearing assembly” is a type of bearing classifiable under heading 8413.99 of the Central Excise Tariff and not exempt from duty under notification No. 6/2002-CE dated 1.3.2002 (or its predecessor notifications like 3/2001-CE dated 1.3.2001 etc).
Two Important Judgements Decided in Favour of Revenue
Circular No. 68/677/2002 Dated 03.12.2002 : In this Circular department has advised to circulate two important judgements decided in favour of Revenue to all Field Formations.First case is Commissioner of Customs, Mumbai vs. Virgo Steels relating to Demand of Duty and the other one is Mohinder Steels Ltd. vs. CCE, Chandigarh relating to provisions of time limit and the procedural requirement of issuing notice, determining the amount etc., in terms of Section 11A of the Central Excise Act, 1944
Amendment to Notification No. 64/95 Dated 16.03.1995
Notification No. 58/2002 Dated 03.12.2002 : In the notification, in the Table, for serial No. 18 and the entries relating thereto, new entries have been inserted which relates to goods supplied to Programme SAMYUKTA under the Ministry of Defence.
Transaction value of imported auto components as OE Parts and Service Parts
Circular No. 82/2002 Dated 03.12.2002 :Board has decided that in view of the introduction of the "transaction value" concept on the customs side, dual prices in respect of components imported as OE parts and as spare parts had to be accepted unless there was evidence to the contrary.
Classification of Palm Stearin.
Circular No. 81/2002 Dated 03.12.2002 : Department has clarified that goods declared as `palm stearin' or `crude palm stearin' may be assessed keeping in view of advice received from CRCL. The goods may be got chemically examined to verify whether they are glycerides (ester) of fatty acids (15.11) or a mixture of fatty acids (38.23).
Anti-Dumping Duty on Sodium Nitrite
Notification No. 132/2002 Dated 29.11.2002 : Central Government has imposed on all imports of Sodium Nitrite, falling under sub-heading 2834.10 of the First Schedule to the Customs Tariff Act, originating in, or exported from, the European Union or Taiwan imported into India, an anti-dumping duty at a rate specified.
Amendment to Notification No. 21/2002 Dated 01-03-2002
Notification No. 131/2002 Dated 28.11.2002 : In the notification, in the Table against S. No. 114, in column (3), after entry (t) entry relating to Glass sheet (clear or opaque or coloured glass) for use with mosaic has been inserted
Logging of DEEC Books
Circular No. 79/2002 Dated 28.11.2002 : Department has clarified excepting in cases of Advance Licences where investigation/adjudication proceedings have been launched ,Value Based Advance (VBAL) Licence where the issue of reversal of modvat credit is involved and Advance Licence for Marble, logging of pending DEEC books shall be completed expeditiously by Customs.
Classification of Metal Oxide Varistors for surge Arresters under the Customs Tariff
Circular No. 78/2002 Dated 28.11.2002 : The Board has clarified that resistors irrespective of their end use are classifiable under 85.33 in terms of section note 2 (a) to section XVI but as the items are stated to be meant exclusively for surge arresters, the matter was referred to WCO Secretariat and WCO has advised that resistors in question would be classifiable under 85.33 in terms of GIR I. Headings 85.35 and 85.36 are applicable to surge arresters.
Latest Amendments in Tariff Values for Palmolein and its derivatives
Notification No. 76/2002 NT Dated 03.12.2002 : In the notification, the Table relating to Tariff Values for Palmolein and its derivatives, has been substituted.
Appointment of Shri B K Mishra as The Director General (Safeguards)
Notification No. 72/2002-NT Dated 22.11.2002 : The Central Government has appointed Shri B K Mishra, Chief Commissioner of Central Excise, Delhi, as the Director General (Safeguards) for the purposes of Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997.
Foreign Privileged Persons' (Regulation of Customs Privileges) Amendment Rules, 2002
Notification No. 71/2002-NT Dated 20.11.2002 : .In rule 5 of the Foreign Privileged Persons' (Regulation of Customs Privileges) Rules, 1957, in sub-rule (1B), the following proviso has been inserted at the end, namely:
" Provided further that the facility of duty free sale of vehicles, after four years of import, shall be allowed to all privileged persons belonging to the United Nations or any other International Organization irrespective of the fact as to whether the United Nations or such other International Organization is allowing similar facility of duty free sale of vehicles to Indian privileged persons posted in the United Nations or such other International Organization, as the case may be."
Auction for Sale (Re-issue ) of '8.35 per cent Government Stock, 2022'
Notification No. 4(9)-W&M/2002 Dated 02.12.2002 : Government of India has notified sale (reissue) of ’8.35 per cent Government Stock, 2022’ for an aggregate amount of Rs. 5,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F No.4 (9)–W&M/2000,dated 6th May 2002 issued by Government of India as amended by Notification No.4 (9)–W&M/2000 dated 20th September 2002.
Indian Direct Investment in SAARC Countries and Myanmar
Circular No. A.P. (DIR Series) Circular No.58 Dated 02.12.2002 : All authorised dealers have been informed that as a part of further liberalisation it has been decided to enhance the existing ceiling for Indian investment in Myanmar and SAARC countries (excluding Pakistan) under the automatic route to USD 150 million or its equivalent, against existing limit of USD 100 million and to Rs.700 crores against existing limit of Rs.350 crores for rupee investment in Nepal and Bhutan.
Prudential norms on income recognition, asset classification and provisioning - agricultural loans affected by natural calamities
Notification No. DBOD.No.BP.BC. 44 /21.04.048/2002-2003 Dated 30.11.2002 : In view of circular No.RPCD. PLFS.BC.46/05.04.02 (Drought)/2002-2003 dated November 15, 2002 , we advise that in cases of conversion or reschedulement of crop loans into term loans, the term loans may be treated as current dues and need not be classified as NPA. The asset classification of these loans would thereafter be governed by the revised terms and conditions and would be treated as NPA if interest and / or instalment of principal remain unpaid for two harvest seasons, not exceeding two half years, as indicated in circular DBOD.No.BP.BC.59/21.04.048/ 2001-2002/ dated January 22, 2002.
Exemption from Section 45-IA and 45-IC of the Reserve Bank of India Act, 1934 (2 of 1934) -Venture Capital Fund Companies
Notification No. DNBS. 163/CGM(CSM)-2002 Dated 28.11.2002 : RBI has directed that the provisions of,
1. Section 45-IA and Section 45-IC of the Reserve bank of India Act, 1934 (2 of 1934);
2. Notification No. DFC.118/DG(SPT)-98 dated January 31, 1998; and
3. Notification No. DFC.119 / DG(SPT)-98 dated January 31, 1998shall not apply to a non-banking financial company, which is a venture capital fund company holding a certificate of registration obtained under Section12 of the Securities and Exchange Board of India Act, 1992 and not holding or accepting public deposit as defined in paragraph 2(1)(xii) of the Notification No. DFC.118/DG(SPT)-98 dated January 31, 1998.
RBI to repay Rs.127 for Rs.100 (nominal) for 6 per cent Capital Index Bonds 2002 on December 28, 2002
Press Release No. 598/2002-03 Dated 06.12.2002 : The 6 per cent Capital Index Bonds 2002 will be repaid on December 28, 2002. The repayment amount for the bonds will be Rs.127 per Rs.100 of nominal value of the bonds. The bonds were falling due for repayment of principal on December 29, 2002. As December 29, 2002 falls on a Sunday, the bonds will be repaid on December 28, 2002. The bonds will be repaid at the Public Debt Offices of the Reserve Bank of India at which they are registered.
Annual Accounts of Scheduled Commercial Banks : 1989-90 to 2000-01 available on CD-ROM
Press Release No. 582/2002-03 Dated 04.12.2002 : The Reserve Bank of India has released a compendium in the form of a CD-ROM containing annual accounts data of Scheduled Commercial Banks (including Regional Rural Banks) for the period 1989-90 to 2000-01. The CD-Rom contains bank-wise information on items of liabilities, assets, earnings and expenses and also the certain business ratios disclosed by the banks as a part of the `notes on annual accounts' from the year 1997-98:
RBI rejects licence application of The Gulbarga Urban Co-operative Bank Ltd.
Press Release No. 580/2002-03 Dated 04.12.2002 : The Reserve Bank of India has rejected the licence application of The Gulbarga Urban Co-operative Bank Ltd., Gulbarga (Karnataka) to carry on banking business.
RBI announces rate of interest on FRBs 2009
Press Release No. 574/2002-03 Dated 02.12.2002 : The rate of interest on the Floating Rate Bonds, 2009 (FRB, 2009) applicable for the half-year December 6, 2002 - June 5, 2003 has been specified to be 5.68 per cent per annum.
Amendments/Corrections in SION
Public Notice No. 52/2002-2007 Dated 05.12.2002 and No. 50/2002-2007 Dated 29.11.2002 : The Director General of Foreign Trade has made certain amendments / corrections and additions in the Handbook of Procedures, Vol.2, 2002-2007.
Amendments/ Addition in SION
Public Notice No. 51/2002-2007 Dated 04.12.2002 : The Director General of Foreign Trade has made amendments in the Handbook of Procedures, Vol.1, 2002-2007.
Amendments/ Corrections in the Schedule of DEPB Rates
Public Notice No. 49/2002-2007 Dated 27.11.2002 : The Director General of Foreign Trade has made amendments in the Schedule of DEPB Rates
Initiation of Anti-Dumping Investigation
Notification No. 14/40/2002 Dated 25.11.2002 and No.14/49/2002-DGAD Dated 26.11.2002 : Anti-Dumping Investigation Concerning Import of Borax Decahydrate Originating in or Exported from Peoples' Republic of China and Turkey and Import of Butter Oil from New Zealand, has been initiated.
Telecom Regulatory Authority of India, Service Providers (Maintenance of Books of Accounts and Other Documents) Rules, 2002
Notification No. GSR782(E) Dated 27.11.2002 : The Rules specify instructions for maintenance of books of accounts and other documents and the audit of books and other documents.
Exemption from Obtaining Import License for Naphtha
Notification No. GSR784(E) Dated 25.11.2002 : The Central Government has exempted Naphtha from obtaining import license under clause (b) of sub-rule (1) of rule 19 of Part II of Chapter II of the Petroleum Rules, 2002 with immediate effect.
Guidelines for Laying Petroleum Product Pipelines
Notification No. P-20012/5/99-PP Dated 20.11.2002 : The Government of India has issued guidelines for laying petroleum product lines.These guidelines are related to Categorization,Ownership and access of Pipelines,Tariff for Pipelines and Conditions under Roll acqusition.These guidelines will remain in force till the Petroleum Regulatory Board is constituted.After Petroleum Regulatory Board is constituted, the Roll in land for laying petroleum product pipelines will be granted by the Ministry of Petroleum & Natural Gas subject to fulfillment of requirements under the petroleum regulatory law.These guidelines will supercede any other guidelines prevailing on the subject
Central Motor Vehicles (Fifth Amendment) Rules, 2002
Notification No. GSR788(E) Dated 27.11.2002 : In rule 115C, after sub-rule (5), rule (6) For Diesel Vehicles with Original Equipment Fitment (7) For Replacement of in-use diesel engine by new lpg engine and (8) for Applicable emission norms, have been inserted. Annexure VIII relating to Safety checks for use of LPG fuel in four-wheeled vehicles and above (as per ais 026) and two-wheeled and three-wheeled vehicles (as per ais 027 ) and Indian Gas Cylinder Rules, 1981, has been substituted.
Amendment in the Indian Evidence Act
Dated 02.12.2002 : Shri K. Jana Krishnamurthi ,Union Minister of Law and Justice told Rajya Sabha on 02.12.2002 that The Government has proposed to amend the Indian Evidence Act, 1872 to make it more friendly to women. A proviso to section 146 in the Indian Evidence Act, 1872 is proposed to be inserted to the effect that in a prosecution for rape and attempt to commit rape, it shall not be permissible to put questions in the cross-examination of the prosecutrix as to her general immoral character. Further, Clause (4) of Section 155, which provides that when a man is prosecuted for rape or an attempt to ravish, it may be shown that the prosecutrix was of generally immoral character is proposed to be omitted. A Bill on the above lines has already been introduced in the Lok Sabha on November 28, 2002
The following bills have been introduced in the Parliament and the full text of the Bills are available on the site
The Supreme Court Judges (Salaries and Conditions of Service) Amendment Bill, 2002
The Unit Trust of India (Transfer of Undertaking and Repeal) Bill, 2002
The Representation of The People (Second Amendment) Bill, 2002
The Industrial Development Bank (Transfer of Undertaking And Repeal) Bill, 2002
The Freedom of Information Bill, 2002
The Indian Evidence (Amendment) Bill, 2002
The Transfer of Property (Amendment) Bill, 2002
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