TIOL-DDT 1074 · 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" size="3">TIOL-DDT 1074</font><br> 19.03.2009<br> Thursday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ST-3 Form amended – to include STRP details</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ST-3 form has been amended again – this time to include details of the Service Tax Return Preparer (STRP). Where are these STRPs? Has the Government appointed any?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An officer told <strong>DDT </strong> recently that those who prepare these forms do not seem to understand the requirements of the filed formations. For example, the present ST 3 form has monthly columns for Service tax payable, and it does not have the "Total" column at the end of the table. To get the total figures, the six months figures should be added by the officers for each return and imagine the work load considering the huge assessee base. In fact, some of the assessees even understood the importance, condoned our babus ' ignorance and on their own added the total column at the end of the table. Isn't it elementary?</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=40&filename=notification/servicetax/2009/stnot09_010.htm" target="_blank">Notification NO. 10/2009-ST., Dated: March 17, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Free Import of Antiques – DGFT Government amends Policy</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has amended the Import policy for Antiques of an age exceeding hundred years and antiquarian books to make it <em>free </em>. It was hitherto under the <em>restricted </em> category.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An alert Netizen immediately asked us, <font color="#FF6600">“ It was good to hear that the DGFT had allowed free imports of antiques <strong>of an age exceeding hundred years </strong> and <strong>antiquarian books </strong>. Now, who decides what the age of the “Antique” is? Should the importer get a certificate from an accredited agency which conducts C-14/Carbon dating and will the Customs/DGFT authorities be satisfied with the same?” And <strong>why should the DGFT prescribe the minimum age of hundred years so as to consider an article “Antique”.</strong></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it was not DGFT which prescribed the hundred years limit. The Customs Tariff heading <strong>9706 00 00 </strong> reads as <strong>Antiques of an age exceeding one hundred years. </strong>And DGFT has simply imported this Customs Tariff entry into the Import Schedule.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what is the sudden provocation to make the imports of these antiques free? Is it an election antic? Any relation to Tipu Sultan's sword which was imported by Vijay Mallya, which he could not have legally done? He exported it after Customs started investigating. Even the export was not very legal. Now perhaps he will import it.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our multitude of laws ensures that we are all offenders.</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=45&filename=notification/dgft/2008/dgft08not097.htm" target="_blank">DGFT Notification 97(RE-2008) / 2004-2009 Dated: March 17, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ban on export of edible oils – extended for another year – JIT extension</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In waking up to realise sun-set clauses in notifications, the DGFT seems to be slightly better than CBEC. They wake up Just In Time (JIT).</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ban on export of edible oils expired on 16.03.2009. But the Government extended it for another year, on 17.03.2009 – nothing is lost.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But this notification was made available only yesterday. What would have been the position if somebody wanted to export the product yesterday?</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=45&filename=notification/dgft/2008/dgft08not098.htm" target="_blank">DGFT Notification 98 (RE-2008) / 2004-2009 Dated: March 17, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Freely Transferable ‘Supplementary' Duty Credit Scrip – DGFT Clarifications</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case, an exporter has already claimed the benefits of freely transferable duty credit scrip for a shipping bill under one of the schemes of Chapter 3 (say FMS/FPS), the same shipping bill cannot be used for filing the claim under any other scheme like VKGUY/FPS (which may have a higher rate of entitlement).</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In some cases additional benefit @2.5% is granted under VKGUY Scheme for exports made w.e.f. 1.4.2008, and some exporters may have already claimed the benefits under VKGUY at the standard rate of 5% or 3.5% (as applicable). Similarly, the rate of entitlement has been enhanced for some categories under FPS. In such cases, supplementary claim under VKGUY is entitled and the exporters may file requests quoting the related file numbers and the due-drawn differential statement to RA concerned, along with application fee that may be applicable on entitlement differential due to exporter.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RA concerned is directed to accept such scheme-wise requests and grant <strong>supplementary scrip manually</strong>, in the same format and annex the due drawn differential statement along with, without insisting on original scrip to be given for enhancement. These claims, although consolidated for several files of a scheme, RA should process the same in the related main files and issue a consolidated supplementary scrip, which will ensure that the record is in all the original claim main files.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In some cases, entitlement as due, may not be claimed fully by the exporter due to software not being updated, or the entitlement as claimed by the exporter might have been reduced by RA (or sometimes by Customs, <strong>although Customs should refer back the matter to RA concerned rather than reducing the entitlement themselves</strong>) for some reason, but in appeal or by clarification from Policy division of Headquarters, the original claim has been either <strong>restored or enhanced </strong> from the value that was granted by RA; in such cases, a supplementary scrip will be issued <strong>manually </strong> by RA concerned.</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=46&filename=notification/dgft/2008/dgft08cir071.htm" target="_blank">DGFT Policy Circular No. 71(RE-08)/2004-2009 Dated: March 18, 2009</a></strong></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">–Tomorrow'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>Service</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appointment of CBDT Member – High Court cannot sit in appeal over selection by the highest Authorities like Cabinet Secretary, other secretaries and approved by ACC:</strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> result is that whatever way the matter may be looked at, unfortunately, the petitioner does not make it. In such a system of appointment, there is a pyramidal structure and often persons with good career profile may not make it on account of lack of vacancies. Not only that, the Selection Committee for the post for which the appointment is made is a high-powered one consisting of Cabinet Secretary, Principal Secretary to the Prime Minister, Secretary (Personnel), Secretary (Revenue) and the Home Secretary and this selection is finally approved by the Appointments Committee of the Cabinet. Thus, the scrutiny of the case of the petitioner has been at the highest level and it is not as if this Court would sit as a court of appeal over that decision. We have to only satisfy ourselves that there has been no procedural irregularity and no injustice on account of any glaring infirmity has been caused to the petitioner. </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>Aishwarya Rai claims deduction without proper certificate - Revenue must not take advantage of ignorance of an assessee as to her rights - matter remanded: ITAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>APPELLANT, </strong>Aishwarya Rai is aggrieved by the order of the Commissioner and is before the Tribunal. The assessee had claimed deduction under Section 80RR of the IT Act in Assessment Year 2001-02 totalling Rs. 97,02,491/-</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Officers of the Department must not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the Officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. This attitude would, in the long run, benefit the department for it would inspire confidence in him that he may be sure of getting a square deal from the departments. Although, therefore, the responsibility for claiming refunds and reliefs rests with the assessee on whom it is imposed by law, officers should .....</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service provided by one person, tax paid by another – Credit entitled: CESTAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>is the service provider but not registered with the Department. <strong>B </strong>is a sister concern registered with the Department. <strong>A </strong>writes to the Department that <strong>B </strong>will pay the Service Tax on its behalf. The service recipient takes credit, which is objected to by the Department, even though <strong>A </strong>was later made to pay the Service Tax with interest.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Gas Turbine Fuel manufactured and used captively for production of electricity which in turn is used for manufacture of exempted goods – Benefit of captive consumption available: CESTAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the course of manufacture of final products on which duty was paid in the manufacture of which electricity generated by using GTF so consumed Sulphur emerged as a by-product and while during the adjudication process Commissioner dropped the demand relating to period beyond one year, upheld the proposal to deny the benefit of exemption to so much of the GTF as was used to generate to that portion of the electricity which went in the manufacture of Sulphur. The dispute also arose as regards liability of exemption under the same Notification in respect of GTF which was used in the generating that portion of the electricity which was used in the manufacture of Naphtha.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Be with us tomorrow for these interesting judgements</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p> <p align="justify"><font color="#FF6600" 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>