TIOL-DDT 1107 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1107</font><br>
11.05.2009<br>
Monday</strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">IRS Officer Sudha Koka selected for World Bank Institute's prestigious course starting today</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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/guest/sudha_Koka.jpg" alt="Legal Corner Icon" width="222" height="226" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font>SUDHA
KOKA</strong>, an IRS (Customs and Central Excise) officer of the 1995
Batch in the rank of Joint Commissioner of Customs and Central Excise,
currently posted as Senior Departmental Representative, in the Bangalore
Bench of CESTAT has been selected by the World Bank for the World Bank
Institute's Course on <strong>Preferential Trade Agreement: Issues and
Implications </strong> to be held at the World Bank Head Quarters in Washington
DC from <strong>May 11th to May 15th. </strong> She has been short listed
from hundreds of applicants from all over the world for this training programme.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The key objectives of this course is to strengthen the ability of trade officials, advisors, analysts, representatives of government, and business and consumer associations, and to understand the economic and development implications of preferential trade agreements and their contribution to the formulation of their country's regional trade policy and negotiating agenda.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sudha holds a Masters degree in Economics from Osmania University. In the year 2008, Sudha completed a two year Post Graduate Programme in Public Policy and Management (PGPPM) from the Indian Institute of Management, Bangalore.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">She worked on her Master's dissertation of PGPPM on the topic <strong>Rules Of origin in India's Free Trade Agreements </strong> under the guidance of Prof. Rupa Chanda of IIM Bangalore, an alumna of Harvard and Columbia Universities and a renowned academician and scholar in the area of trade, especially trade in services.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The World Bank Institute's invitation to her states,</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You have been selected to attend the course for Preferential Trade Agreements from May 11 to May 15, 2009 in Washington DC. There were hundreds of applicants from all over the world yesterday at the final hours of the deadline. We are very pleased to have you with us. The key objective of this course is to strengthen the ability of trade officials, advisors, analysts, and representatives of government, business and consumer associations, and to understand the economic and development implications of preferential trade agreements and to contribute to the formulation of their country's regional trade policy and negotiating agenda.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">She flew to Washington on 8th May to attend the course from today. This is a rare honour for an Indian Customs & Central Excise officer and TIOL congratulates her on the well deserving distinction.</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Modus Operandi for Irregular Utilization of CENVAT Credit by Hotel Chains – CBEC Issues Alert Circular</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chief Commissioner of Customs, Central Excise and Service Tax, Chandigarh Zone alerted the Board (with a copy to DGST) of a modus operandi adopted by a leading Five Star Hotel for irregularly availing CENVAT credit of service tax on certain input service. This Five Star Hotel is engaged in providing taxable services in the categories of mandap keeper, internet café, outdoor catering, health club & fitness service, dry cleaning, banking and other financial services and beauty parlour.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They appointed another service company as ‘operators and managers' to run their operations including catering, rooms maintenance, business promotion of the Hotel and providing all services relevant to a Five Star Hotel of comparable standing. This service company was paying service tax under the category of ‘Management Consultancy service' which is availed as credit in full by the Five Star Hotel even though they are engaged in providing both taxable and exempted services.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chief Commissioner and the authorities below were of the view that the services provided by the service company to the Hotel falls under the category of <strong>either BAS or BSS </strong> (<font color="#663399">it appears the authorities themselves are not sure of the appropriate category under which the services should be classified</font>), thereby not eligible for exclusion as per Rule 6 (5) of the CENVAT Credit Rules, 2004 as claimed by the Hotel. It may be noted that Management Consultant's service is one of the notified services under Rule 6 (5) of CENVAT Credit Rules, 2004.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC directed the DGST to bring this <em>modus operandi </em> to the notice of all the field formations.</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=41&filename=notification/servicetax/2009/dy62_st.htm" target="_blank">CBEC letter No. Dy. No.62/Comm (ST)/2009, dated March 20, 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">TDS Controversy – Blessed are the ignorant, for they are not confused</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government had notified a new Form 17 for TDS – God and CBDT only know where the form is available. In the meantime those who were not aware of the changes made by CBDT merrily made their TDS payments in the old Form. Only those who were studious and assiduously following the law and its frequent changes were at a loss. Many of them did not make their payments in May waiting for the Government clarification, which did not come.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where ignorance is bliss, it is foolish to be wise.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See our <strong>TIOL TOP </strong> for a detailed analysis.</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">–</font></strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tuesday's cases</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font color="#663399">Central Excise</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Assessee is in Uttar Pradesh – Appeal against CESTAT Delhi Bench Order – Delhi High Court cannot exercise jurisdiction – No Forum Shopping: Delhi High Court</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANY</strong> High Court is justified in exercising powers under Article 226 either if the person, Authority or Government is located within its territories or if the significant part of the cause of action has arisen within its territories. The rationale of Section 20 of the Code of Civil Procedure would, therefore, also apply to Article 226 (2) of the Constitution. These considerations are aptly encapsulated in the term <em>forum conveniens </em> which refers to the <em>situs </em> where the legal action be most appropriately brought, considering the best interests of the parties and the public. The writ Court should invariably satisfy itself that its choosing is not <em>malafide </em> or an example of forum shopping.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Income Tax</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Income from House Property – when rent received is higher than fair rent, notional interest on deposit not to be taken into account for determining annual value; Officers of Department must not take advantages of ignorance of an assessee: ITAT</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CAN</strong> Assessing office sit on the decision of ITAT, when the order of Assessing officer has merged with the order of the ITAT? When on talks of merger of a judgment, order or a decision of a subordinate court or forum into the judgment, order or decision of a superior court or forum the merger may be of the entire order, i.e., the reasons and the conclusion, or only a part, viz.. only the conclusion by a different process of reasoning, in that event what merges is the operative part after the confirmation, reversal or modification, but in any event, the order of the lower court or the forum does not have any independent existence thereafter. The doctrine of merger is founded on principle of propriety in the hierarchy of justice delivery system, the underlying logic being that there cannot be more than one operative order governing same subject-matter at a given point of time. The only caveat to the doctrine of merger is that the content or the subject-matter of challenge before the superior forum has to be borne in mind.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Customs</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Smuggling of diamonds - Department need not prove the impossible - It has to establish its case with such a degree of probability that a prudent man may on its basis believe in existence of facts in issue – Bombay High Court</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHERE</strong> any goods which are specified under subsection (2) of Section 123 of the Customs Act, 1962 are seized under the reasonable belief that they are smuggled goods, the burden of proving that they are not smuggled goods shall be on the person from whose possession the goods are seized. Such goods would obviously include goods which are specified by the Central Government by notification in the Official Gazette.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case of other goods which are not covered by subsection 2 of Section 123 and in respect of which no notification is issued the basic cannons of criminal jurisprudence and natural justice will apply. The burden of proving that the goods are smuggled will be on the Department.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Tomorrow for the judgements</font></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>
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