TIOL-DDT 1155 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#660099" size="3">TIOL-DDT 1155 </font><br>
16.07.2009 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value of Brass Scrap increased and steep fall in the rate of poppy seeds</font></strong></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 2854 to 2918 and decreased the value of Poppy Seeds from 5162 to 3990 dollars. It is unbelievable that the tariff value of poppy seeds has been reduced from 5162 to 3990 Dollars. </font></p>
<p><font size="2"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_091.htm" target="_blank"><strong><font face="Verdana, Arial, Helvetica, sans-serif">Notification
NO. 91/2009- Cus, ( N.T. ), Dated: July 15, 2009 </font></strong></a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central and State GST </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it is almost sure that the proposed GST will have two components – a Central GST and a State GST . Revenue Secretary PV Bhide told a CII meeting yesterday that many of the States have agreed on a common tax rate though some products like alcohol and tobacco may have different tax rates. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">April
2010 is not far away, but issues like who will administer GST, the legislative
and machinery provisions are far away. GST presupposes a good computer network
and we don't seem to be anywhere near it. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Nandan to use PAN data base for his Unique Identity – Big Brother watching? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nandan Nilenkani is all set to issue 120 Crores Biometric Unique Identification Cards to all Indians. This will be the biggest such project in the world and Nandan has sacrificed his high profile job with Infosys to give a number to every Indian. The Income Tax Department's PAN database is a good source for Nandan to start with, but PAN holders constitute a miniscule minority in India – there are some senior IRS officers who do not have a PAN. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A ten percent error in the Data would mean a whopping 12 Crores citizens on the wrong side of Big Brother's ken. Assuming that each card would cost Rs. 100/-, the project will cost Rs. 12,000/- Crores. There are still many Indians who do not have anything better than a loin cloth to cover themselves with. Where will such a man keep his biometric card? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let's hope Nandan doesn't get disheartened with the corruption, lethargy, incompetence and miles of red tape in Government. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Education for Prosperity – President Obama's American Graduation Initiative </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As part of his effort to build a stronger foundation that will allow USA to lead in the global economy, the President announced a historic initiative to strengthen the nation's community colleges, and called for five million additional graduates by 2020. </font></p>
<p><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif">The President said, </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Time
and again, when we placed our bet for the future on education, we have
prospered as a result - by tapping the incredible innovative and generative
potential of a skilled American workforce. That's what happened when President Lincoln signed into law legislation creating the land grant colleges, which not only transformed higher education, but also our entire economy. That's what took place when President Roosevelt signed the GI Bill which helped educate a generation, and ushered in an era of unprecedented prosperity. That was the foundation for the American middle class. </font></strong></p>
<p><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif">He added, </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
pay for this plan - this isn't adding to the deficit; we're paying for
this plan - by ending the wasteful subsidies we currently provide to banks
and private lenders for student loans. That will save tens of billions of dollars over the next 10 years. Instead of lining the pockets of special interests, it's time this money went towards the interests of higher education in America. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In India, Article 45 of our Constitution loftily declares – “The State shall endeavour to provide, within a period of ten years from the commencement of this Constitution, for free and compulsory education for all children until they complete the age of fourteen years.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is sixty years and still we are nowhere near the goal! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our politicians should understand that the best investment the Nation can make is in education and health of the citizens, but perhaps they do and that is why they do not want to lose their vote banks! </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>Friday's cases</strong></font></p>
<p><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><font color="#660099">Central Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Assessee did not choose to use raw-material in their final product? 2001 Rules applied for a 1989 case - Non-application of mind is writ large on this order of the Commissioner (Appeals). </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>This </strong>is a case relating to MODVAT Credit of 1989 where the Tribunal found non-application of mind and application of the 2001 Rules to a case which originated in 1989. The Commissioner (Appeals) passed the order in 2008 – after a good nine years and the case is back with him. </font></p>
<p align="justify"><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Disallowance of alleged loan – No question of law – no interference: Madras High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee has not made any legal ground calling for interference of this Court and the order passed by the Tribunal in respect of both the claims raised cannot be said to be perverse or illegal. We find no reason to interfere with the finding of the Tribunal. Hence the appeal fails and the same is dismissed and the question of law is answered against the appellant. </font></p>
<p align="justify"><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">For the benefit of CENVAT credit on mobile phone service, it is necessary that the assessee should establish that the mobile phones were used exclusively for the purposes connected with their business activities or, directly or indirectly, in or in relation to the manufacture/clearance of excisable goods – CESTAT orders pre-deposit. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After verification of the mobile phone bills produced by the assessee, the original authority came to the conclusion that the mobile phones were used not only for business purposes but also for personal purposes. On this basis, the authority took the view that the mobile phones were not used in or in relation to the manufacture or clearance of the final products. In the result, the demand of service tax was confirmed against the assessee and equal amount of penalty was imposed on them. </font></p>
<p align="justify"><strong><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p><font color="#FF6666" 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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