TMI BlogDeduction u/s 35-B for service charge paid to STC for export of castor oil.X X X X Extracts X X X X X X X X Extracts X X X X ..... stry of Foreign Trader Order "Export Control Order, 12th Amendment, 1971", the following procedure for supply of castor oil for exports was laid down. 3. Exporters of castor oil upto 25M/Tonnes were free to negotiate and finalise their commitments with foreign buyers directly. In regard to such exports, the condition was that 5 per cent service charges on FOB value should be paid to the STC by Demand Draft at the time of endorsement of shipping documents. All exports were to be A/c. STC and the documents were to be prepared accordingly. 4. In regard to exports between 5 to 25M/Tonnes, sellers were required to take approval of the sale price from STC before accepting any bid from the foreign buyers or sending any firm offer to the foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and observed under the export contract, in so far as these obligations, convenants and agreements relate to the export of Castor oil allocated to the exporter. (g) The property in the goods does not pass to the STC till the goods have passed the Customs frontiers of India. (h) The exporter has to indemnify the STC against all claims, proceedings, damages, losses, costs and expenses, whatsoever, in respect of, or in connection with or in relation to or arising out of any matter under the contract. (i) All types of export incentive as may be available will be to the account of the exporter. 5. There is no dispute that the exporters who are exporting upto 25M/Tonnes of castor oil are entitled to a weighted deduction on service charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a holder of an Export House Certificate issued by the Chief Controller of Imports and Exports ; or (ii) the business of "provision of technical know-how" or the rendering of services in connection with the provision of technical know-how, to persons outside India; and (b) the expenditure in relation to which weighted deduction has been claimed is incurred by the assessee wholly and exclusively for the purposes of the business referred to in (a) above. These special provisions have been omitted for and from the assessment year 1980-81. 8. After a careful consideration of the matter, the Board are of the opinion that the difference in rates which constitute service charges to the STC is qualifying expenditure for purposes of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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