TIOL-DDT 1123 · 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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1123 </font><br> 02.06.2009 <br> Tuesday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value of Brass Scrap and Poppy seeds increased. </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has increased the Tariff Value of Brass Scrap from US Dollars 2600 to 2623 and Poppy Seeds from 4253 to 4856 dollars. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cnt.htm" target="_blank">Notification No. 55/2009-Cus., (N.T.), Dated: May 29, 2009</a> </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Concessional rate of duty for imports from certain countries </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has announced concessional rate of duty for import of 450 items from Argentina, Brazil, Paraguay and Uruguay. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/ctariff.htm" target="_blank">Notification No. 57/2009-Cus., Dated: May 30, 2009</a> </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CII wants Investment Budget </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CII's Pre-Budget Memorandum, presented to the Ministry of Finance, recommended that Budget 2009-10 should be an 'Investment Budget' to enable India to deal with the global economic crisis and aim at leading the economy to a 8% plus growth in the coming year. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CII Memorandum additionally emphasized promoting investments by sending a clear message to investors that India's tax policies are consistent and have continuity. Investment allowance should be re-introduced to encourage front-loading of investments. However, to simplify and streamline the tax structure, CII suggests that surcharges, cesses, FBT and MAT should be abolished. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To fuel domestic consumption as a growth accelerator, the CII Memorandum calls for easing individual tax exemption limits by a further Rs 50,000 and removing retirement fund limits. It suggests that limits allowed under section 80C to Individuals and HUF should be raised to Rs. 2 lakh, provided the additional Rs. 1 lakh savings is in infrastructure bonds. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The key direct tax recommendations of the CII memorandum include increasing depreciation rates for plant and machinery from 15% to 25%, and introducing an Investment Allowance package for businesses for cost savings. For export units, removal of sunset clause for STP units under section 10A and EOU under section 10B is suggested. Credit Linked Subsidy Scheme (CLCSS) for Technology upgradation for MSMEs needs to continue and be extended for all possible technical upgradations / modernisations. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On indirect taxes front, the CII memorandum strongly stresses that Goods and Services Tax should be implemented on schedule on April 1, 2010, adding that a single unified rate of 12% would spur creation of a unified single market. In preparation for introduction of GST, CST rate should be brought down to 1%. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CII memorandum also calls for continuation of 8% excise duty in general and reduction of excise duty from 16% to 8% on medicines covered under Medical and Toilet Preparation (M&TP) Act. Service tax payment in case of comprehensive annual maintenance contracts should be simplified by charging on a specified percentage value of the contract. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Union Finance Minister, Pranab Mukherjee meeting with Industrialists, in New Delhi on June 01, 2009. The Ministers of State for Finance, Namo Narain Meena and S.S. Palanimanickam are also seen along with Revenue Secretary Bhide. </font></p> <p align="center"><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/pranab_2.jpg" alt="Legal Corner Icon" width="440" height="253" hspace="5" border="0" align="center"></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></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Chief General Manager of Telecommunication sentenced in a CBI case related to Central Excise </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A CBI Press Release states that a CGM of Telecom had been sentenced to undergo two years Rigorous Imprisonment in a CBI case related to Central Excise. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBI investigation revealed that the then Chief General Manager, Telecom, the then Asstt. Director and Ex Dy. General Manager had abused their official position & allowed Shri Ashok Kumar Patra of M/s T. Krishna Patra to claim and receive an amount of Rs. 4,22,100/- as Central Excise Duty for sale of Electronic Push Button Telephone (EPBT) sets to the Department of Telecommunication. It was also established that M/s Tata Keltron Ltd., the approved supplier of DOT had already been paid the said Central Excise Duty for the said product at the time of removal of the EPBTs from the factory and as such the supplier firm M/s T. Krishna Patra had left with no option to claim and draw the said duty. These acts of the DOT Officers and the private person/ firm constituted offence U/s 120-B/420 IPC and Sec. 13(2) r/w Sec. 13(1)(d) of P.C. Act. 1988 and as such charge sheet was filed against the then Asstt. Director; the then DGM; then CGMT all of Orissa Telecom Circle, Bhubaneswar; Shri Ashok Kumar Patra (Pvt. person) and M/s T. Krishna Patra in the court of Special Judge, CBI, Bhubaneswar on 18.03.1998. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">God knows what the CGM knew about excise! </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">– Wednesday's cases</font></strong></font></strong></font></p> <p align="justify"><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>Service Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service received from abroad – No tax prior to 18.04.2006 - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2008/2008-TIOL-633-HC-MUM-ST.htm" target="_blank"><font size="1">2008-TIOL-633-HC-MUM-ST</font></a> – followed – High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the judgment of the Division Bench of Bombay High Court passed in <em>Indian National Shipowners Association vs Union of India </em> - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2008/2008-TIOL-633-HC-MUM-ST.htm" target="_blank"><font size="1">2008-TIOL-633-HC-MUM-ST</font></a> </strong> it stands declared that the Revenue can collect tax only upon being invested with due legal authority; an event which occurred on the insertion of Section 66A in the Finance Act, 1994 w.e.f. 18.04.2006 by virtue of the Finance Act, 2006. This case is squarely covered by the judgment of the Bombay High Court in the case of <em>Indian National Ship owners Association </em> with which this High Court is in respectful agreement. </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>Non-resident - assessee makes long-term capital gains on transfer of shares of Indian Co - benefit of indexation and cost of improvement not available under Sec 48 but benefit of 10% tax rate under Proviso to Sec 112 cannot be denied: ITAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE rulings of Authority for Advance Ruling are generally treated as only of persuasive value and not having precedence value. But here is a case in which the Tribunal indeed felt persuaded and decided the case in favour of the non-resident assessee. The issue before the Tribunal was whether a non-resident company which has made capital gains from transfer of shares can avail benefits of proviso to Sec 112? And the verdict has gone in favour of the assessee. </font></p> <p align="justify"><font color="#660099" 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>Drinking water supply project – Project Import Benefit - issue before Larger Bench – Competitor of the Appellant not permitted to intervene – however Counsel can address legal submissions: CESTAT LB </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The applicant in the present case cannot be said to be an aggrieved party at this stage. The matter referred to the Larger Bench is a legal question. No doubt, it may have some repercussion in respect of domestic manufacturers. In these circumstances, it cannot be held that the applicant is a proper party without which the issue cannot be examined properly. Moreover, the members of the applicant after all, are competitors to the appellant. Therefore, the Miscellaneous Application for intervention filed by the applicant is rejected. However, there is no objection for the Senior Counsel, who represented the applicant, to address the legal submissions in the proceedings before the Larger Bench. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </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>