TIOL-DDT 1001 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">TIOL-DDT 1001</font><br> 28.11.2008<br> Friday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ST 3 Form - No Slot to mention payment of Education Cess/SHE Cess under Rule 6(3)</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In terms of Rule 6(3A) of the CENVAT Credit Rules, if a manufacturer/output service provider not maintaining separate accounts in respect of inputs/input services used for manufacturing/providing exempted goods/services has to provisionally calculate the CENVAT Credit attributable to the inputs/input services based on the complicated formula prescribed and pay the amount every month.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The other day, a well informed tax payer asked <strong>DDT </strong> where to show the amount of Education Cess and Secondary Education Cess payable under Rule 6(3) in the ST 3 Return. He is a service provider and is providing exempted services also and is paying the credit attributable to the inputs/input services every month.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We tried to find answer and had a close look at the ST 3 form.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Item No 5 AA of the form reads:</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>5AA. Amount payable under rule 6 (3) of the CENVAT Credit Rules, 2004</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The entries in the table under 5AA contain only CENVAT Credit and no column is found in respect of Education Cess and Secondary Education Cess.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Table 5 B of the Form reads:</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>5B. CENVAT Credit taken and utilized</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Item No I reads : <strong>(I) CENVAT Credit of Service Tax and Central Excise duty</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The table contains a separate entry at "c (vi)" for payment under Rule 6(3) of the CENVAT Credit Rules, 2004. Since this is given under 'Service Tax and Central Excise duty, Cess cannot be shown here.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Item No (II) reads : <strong>(II) CENVAT credit of Education Cess and Secondary and Higher Education Cess</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The entries given under this head at "c" do not contain the amount of Education Cess and Secondary Education Cess payable under Rule 6(3) of the CC Rules 2004.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe in this case, CESS is not required to be shown separately - only the Board can clarify.</font></p> <h1 align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">That is INTERPOL - Delegation to India - Mumbai Attack</font></h1> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Within minutes after Prime Minister Manmohan Singh in his Address to the Nation stated that the orchestrated attacks in Mumbai probably had 'external linkages' and that India would 'take the strongest possible measures to ensure that there is no repetition of such terrorist acts, the INTERPOL announced that a delegation led by its Secretary General is heading to India to meet with senior law enforcement officials following the series of co-ordinated terror attacks across Mumbai.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Secretary General Ronald K. Noble said, "When such co-ordinated and planned terrorist attacks are carried out against international targets and when a country's Head of Government states there are suspected 'external linkages', the police in the country concerned require international assistance."</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"There is only one way to thoroughly investigate suspected terrorist linkages internationally. The investigating law enforcement authorities must compare the names, fingerprints and DNA of the suspected terrorists killed, arrested or at large against global databases via INTERPOL," he added.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">INTERPOL notes, "With more than 30 terrorist attacks resulting in hundreds of deaths carried out across the country in 2008 alone, India has the resources and experience to fully and capably deal with a national terrorist investigation. However, as these attacks involved nationals of several countries, no one country alone could carry out a full investigation without utilizing global databases and services".</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mumbai police's emergency operations centre has requested the deployment of an INTERPOL Incident Response Team (IRT) to ensure close international co-operation.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In addition to providing direct support in Mumbai, INTERPOL's delegation to New Delhi will meet with the Head of India's Central Bureau of Investigation and the INTERPOL National Central Bureau located in New Delhi to determine what additional resources may be required. Staff from its 24-hour Command and Co-ordination Centre (CCC) at the General Secretariat headquarters in Lyon have been tasked to treat all messages relating to the attacks as a priority and are on standby to provide support with co-ordinating the international aspects of India's response to this terrorist incident.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">INTERPOL will do its best to provide our Indian colleagues with whatever support they might request," said the Secretary General.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is what decision making is all about - within minutes of the PM's statement, they decided to send a mission to India.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Also see our <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8213" target="_blank">EDITORIAL</a> </strong> today. <strong><font color="#FF6633">Those who do not learn from the mistakes of history are condemned to repeat them</font>.</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise - Registration - manufacturers of LNG can register different premises under one Commissioner - Now extended to all Petroleum gases</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The facility of one Centralised Registration had been extended to LNG was provided by Notification No.<a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_43.htm" target="_blank"><strong>43/2008-Central Excise (N.T.)</strong></a> <strong>and </strong> Notification No. No.<a href="https://taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/etariff08_44.htm" target="_blank"><strong>44/2008-Central Excise</strong></a> both Dated: October 06, 2008.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has issued corrigendum to the Notifications to the effect that the notification is applicable not alone to tariff item 2711 29 00 - alone - but to the whole of heading 2711 - <strong>Petroleum gases and other gaseous hydrocarbons.</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_43_corrig.htm" target="_blank">Corrigendum to Notification NO. 43</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2008/exnt08_44_corrig.htm" target="_blank">44/2008 - Central Excise (N.T.) Dated: November 26, 2008</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Kind Customs</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The officers and staff of the Customs, Central Excise and Service Tax Department have contributed Rs 44,50,000/- towards providing relief and assistance to the victims of the devastating floods in Bihar. This amount has been deposited in the Prime Minister's National Relief Fund. The initiative for mobilizing resources for the victims was taken up by the Central Board of Excise Customs, who issued an Appeal to all the officers and staff of the department to contribute a day's salary towards the fund.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Hyderabad Excise Consultant killed in Mumbai Blast</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Laxmi Narayan Goyal, the Hyderabad based Advocate practising Indirect Taxes had gone to attend a case in CESTAT, in Mumbai and while trying to return to Hyderabad yesterday, he heard about the firing in Mumbai and so postponed his journey and took a cab to his sister's house in Kandivli. God and/or terrorists had other plans. He never reached his sister's place but was blown up on the way.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mumbai Police has no clue as to whether the taxi driver was a criminal or a martyr. It seems the cab driver broke the traffic signal. All other vehicles stopped at the signal but the cab went ahead only to explode into a cloud of smoke and fire a couple of seconds later. People wondered whether the driver was carrying a bomb on his own or he was an angel who took the cab ahead to save those waiting at the traffic signal.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Goyal had established himself as a capable lawyer in matters relating to Central Excise, Customs and Service Tax and had a great future ahead, before he drove into the jaws of death in Mumbai - had he not missed that train, he would have been happily back in Hyderabad with his family and his cases - but fate takes you where you are most required! Who can imagine that the taxi you hire has a bomb in it?</font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Terrorism anywhere is a threat to peace everywhere.</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT 1000 - <em>GRAND </em> celebration in Chennai</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are in Chennai today to celebrate the 1000 DDTs. Justice Sudhakar of the Madras High Court, Mr. PC Jha, Chairman, CBEC and TRU JS Gautam Bhattacharya are our honoured esteemed guests. We will bring you details of the function soon.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT 1000 - A BIG <em> THANK YOU </em>FOR YOUR GREETINGS</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT is grateful to the large number of Netizens who took the trouble of greeting DDT on its 1000th edition.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We will shortly reply to each individual, but in the meantime, we would like to use these columns to express our deep feelings of gratitude.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> - Monday's cases</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Classification - Printing whether merely incidental or primary - Judges interpret statutes, they do not interpret judgments. They interpret words of statutes; their words are not to be interpreted as statutes - Matter remanded: SC Larger Bench</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DISPOSAL</strong> of appeals by mere reference to decisions was not the proper way to deal with the appeals. By clubbing all the cases together and without analyzing the special features of each case disposing of the appeals in the manner done was not proper. Courts should not place reliance on decisions without discussing as to how the factual situation fits in with the fact situation of the decision on which reliance is placed. Observations of Courts are neither to be read as Euclid's theorems nor as provisions of the statute and that too taken out of their context.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>When undivided right and interest in property is owned by shareholders irrevocably and perpetually, company cannot claim ownership and consequently depreciation u/s 32 is not allowable: ITAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant's claim for depreciation fails in as much as the true ownership of the property rests with the shareholders. It was observed that the appellant-company did not have any rights that are normally incidental to rights of ownership. It was further observed that the appellant-company cannot even encumber the property, let alone sell or otherwise transfer the property. In fact, the appellant company's only activity, despite claiming to be the owner of the property, was to maintain the property.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EPCG licence for import of 'new crane' but appellants imported 'old and used crane' and fudged import documents - as goods were meant for <em>Sardar Sarovar </em> project and importers would not earn any substantial profit from sale of crane, fine and penalty reduced by Tribunal</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>"The words "used" was obliterated by applying white fluid ink in the invoice and packing list and by applying black ink on the insurance documents."</em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why was this done for? Simply because the company wanted to import "One <strong><em>old and used </em></strong> Tower Crane" from Germany for use in the <em>Sardar Sarovar Narmada Nigam </em> project although the EPCG licence was for import of a 'new crane'.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <strong><em>result </em></strong> - the Commissioner of Customs confiscated the <em>Liebherr Tower Crane </em> imported by the appellants</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Monday for the judgements</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend.</font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>