TIOL-DDT 1121 · 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> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#660099" size="3">TIOL-DDT 1121 </font><br> 29.05.2009 <br> Friday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Compact Fluorescent Lamps – yet another resurrection </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional Anti Dumping Duty on Compact Fluorescent Lamps (CFL) with or without ballast or control gear or choke, whether or not assembled, either in completely knocked down or semi knocked down condition, originating in, or exported from China PR, Sri Lanka and Vietnam, was imposed by Notification No. 126/2008 <strong>- </strong>Customs, dated the 21 st November, 2008, which would have normally expired on 20 th May, 2009. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Designated Authority has recommended to impose definitive anti-dumping duties on all imports of the subject goods. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Government has done so with effect from the date of original imposition of provisional anti dumping duty on the subject goods that is 21 st November, 2008. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_055.htm" target="_blank">Notification NO. 55/2009-Customs Dated: May 26, 2009 </a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Palanimanickam back as Minister of State in Finance </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.S. Palanimanickam is back in the Finance Ministry as MoS. He was there for the last five years – without really making his presence felt much – after all what could he do with such a senior powerful Cabinet Minister like Chidambaram as his boss. Senior Officers in the Finance Ministry are not known to be very respectful to the MoS – for that matter even the junior officers are not much different. And if Chidambaram is the boss, naturally there is no place for an MoS. But Palanimanickam was rather sportive and never complained. He knew the equations and the arithmetic, as he happily paid second fiddle to PC. But he was not without his sense of humour when an AIADMK MP asked him how Chidambaram treated him – “Much better than how Jayalalithaa treats you”, he retorted. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If Chidambaram was a towering personality, Pranab Mukherjee is a mountain peak. He was boss even to the Prime Minister! He was known to have treated his MoS like school kid, not even offering him a chair. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It's really difficult to be MoS to such senior and powerful cabinet ministers, but Palanimanickam being humble and knowing his limitations, will be able to do a good job – within his limits and what Pranab Babu will allow him. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He once said, “First, I want to know the size of the ground. Then I will decide how to play on the ground.” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the last five years, he must have measured the ground – now he can play, provided Pranab Babu allows him to. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Understanding laws – easier said than done? </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">People working in tax compliance departments of various industries normally have a tough time in understanding the complexities in the taxation laws. They make a sincere attempt to read them in English and then seek someone's help to translate them into English. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently an innocent tax payer rushed to <strong>DDT </strong> with the ST 3 return. He is a small time service provider and pays service tax on the amount received. He was confused to read this entry in Table F in ST 3: </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(a) Gross amount received (paid#) in money: </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">His doubt was how can somebody ask you to pay service tax on the amount <strong><font color="#FF6633">received</font> </strong> and also <strong><font color="#FF6633">paid</font> </strong>? <strong><font color="#FF6633">DDT</font> </strong> had to clarify him that it <strong>(paid) </strong> was meant for those who are liable to pay service tax as recipient of service. His immediate reaction was, “if that is the case, why the entry at (a) ( i ) should read <strong><font color="#FF6633">“against service provided”</font> </strong>? Shouldn't they make it <strong><font color="#FF6633">“against service provided / received”?</font> </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another alert Netizen had a doubt while reading Rule 16 of the Central Excise Rules, 2002. His point is Rule 16 still refers to CENVAT Credit Rules 2002 ( CCR 2002) whereas it should be CENVAT Credit Rules 2004 ( CCR 2004). He suggested that the rule should be amended to replace CCR 2002 with CCR 2004. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But our babus are very clever. They knew that they would forget to find and replace all references of CCR 2002 with CCR 2004. So they found a simple solution. They made this rule in CCR 2004: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16. Supplementary provision.- </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) References <strong><font color="#FF6633">in any rule</font></strong>, notification, circular, instruction, standing order, trade notice or other order to the CENVAT Credit Rules, 2002 and any provision thereof or, as the case may be, the Service Tax Credit Rules, 2002 and any provision thereof shall, on the commencement of these rules, be construed as references to the CENVAT Credit Rules, 2004 and any corresponding provision thereof. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the reference to CCR 2002 in Central Excise Rules 2002 is valid and also it continues to be valid and should be taken as only reference to CCR 2004, and will continue to be valid even if the CCR 2004 are substituted in future with new rules as the new rules will also have similar supplementary provisions. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Our Budget Run Up – Send In Your Suggestions </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TELL THE FM WHAT YOU WANT IN THE BUDGET – SEND IN YOUR SUGGESTIONS TO OUR BUDGET RUN UP THAT WE ARE ABOUT TO LAUNCH SOON. WE WILL SEND YOUR VIEWS TO THE FM. PLEASE MAIL YOUR VIEWS TO <a href="mailto:budget@tiol.in">budget@tiol.in </a></font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="2">Jurispruden</font><font color="#FF6633" size="2">tiol</font><font color="#006600" size="2">– Monday's cases</font></strong></font></strong></font></p> <p><font color="#660099" 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 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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font>Central Excise</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Excess duty paid in PLA by CFL manufacturer eligible for refund in terms of Notification 39/2001-CE and cannot be restricted to duty leviable in terms of exemption notification 6/2006-CE – No specific provision in S. 5A to prohibit a manufacturer from paying full rate of duty when there is only partial unconditional exemption for specified products – CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though there is no estoppel in statutory matters, when assessee advised to classify CFL under Chapter 8539 39 10 instead of 8539 31 10 for which notification 6/2006-CE not applicable, excess duty paid cannot be denied as refund </font></p> <p align="justify"><font color="#660099" 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>DTAA – Korean Company's Liaison Office in India engaged in trading activities – Covered under PE – Liable to tax in India: ITAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a business connection in respect of source of income in India of the non-resident assessee and therefore, the income from such activity is to be deemed to accrue or arise in India and will therefore is taxable in India. The business profit of the South Korean Company can be taxed in India in case the South Korean Company is having a permanent establishment. </font></p> <p align="justify"><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NDPS </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mere inclusion of psychotropic substances in the Schedule to NDPS Act not conclusive to suggest that import and export of such substances is prohibited – Personal liberty being a hallowed right of every person, cannot be taken away when the very act which is sought to be prevented cannot definitely be classified as an illegal or prohibited act – Detention orders set aside – High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any preventive detention has to be viewed with great circumspection as the liberty of an individual cannot be taken away even before he is found guilty of having committed an offence by a court of law – Deprivation of liberty by way of preventive detention has only been permitted when the executive has made out a clear and undisputable case for it within the parameters prescribed by the Constitution – Personal liberty being a hallowed right of every person, cannot be taken away when the very act which is sought to be prevented cannot definitely be classified as an illegal or prohibited act falling within the expression 'illicit traffic in psychotropic substances' </font></p> <p><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements</font></strong></p> <p><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p> <p><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend.</font></p> <p><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>