TIOL-DDT 1189 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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="#663399" size="3">TIOL-DDT 1189 </font><br> 03.09.2009 <br> Thursday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Delayed Appeals in High Courts – Amendment to Section 35G – Board Instructions</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Finance Act, 2009 had amended Section 130 of the Customs Act, 1962 and Section 35G of the Central Excise Act retrospectively with effect from 1.7.2003 to the effect that the High Court may admit an appeal after the expiry of the period of one hundred and eighty days if it is satisfied that there was sufficient cause for not filing appeal within the stipulated period. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The amendments have been brought out in the statute to undo the judgement of Larger Bench of the Supreme Court in the case of <em>Commissioner of Customs & Central Excise Vs. M/s. Hongo India Pvt. Ltd. </em> - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2009/2009-TIOL-48-SC-CX-LB.htm" target="_blank">2009-TIOL-48-SC-CX-LB</a> </strong> wherein it was held that the High Courts have no power to condone the delay in filing the reference application beyond the prescribed period of one hundred and eighty days. By the amendment as above, the High Courts have been assigned the powers to condone the delay in filing of reference applications/appeals. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Board directs the Field formations:- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. In respect of pending Appeals / Applications filed with delay, if any, amendments may be brought to the notice of the Court by way of filing of Interim Application </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In respect of Appeals / Applications filed with delay by the Commissionerate which were dismissed by the High Court by invoking the limitation clause under the Act, the filing of Review Petition may be contemplated as per procedure in the respective High Court. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, in all fairness, the Board wants Commissioners to ensure that appeals are filed within the stipulated period of one hundred and eighty days under all circumstances. The litigation mechanism of the Commissionerates before the High Courts must be closely monitored so that the appeals are filed in time. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2009/excircular895.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular No. 895/15/2009- CX : Dated 27th August, 2009. </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax – Hike in daily Allowance for Members of National Committee </strong></font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 35AC of the Income tax Act reads as – </font></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Expenditure on eligible projects or schemes. </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>35AC . </strong> (1) Where an assessee incurs any expenditure by way of payment of any sum to a public sector company or a local authority or to an association or institution approved by the <strong><font color="#FF6633">National Committee</font> </strong>for carrying out any eligible project or scheme, the assessee shall, subject to the provisions of this section, be allowed a deduction of the amount of such expenditure incurred during the previous year : </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Rule 11 I of the Income tax Rules, the functions of the <strong>National Committee </strong> shall be— </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) </em>to approve associations and institutions for the purpose of carrying out any eligible project or scheme; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(ii) </em>to recommend to the Central Government projects and schemes of any company including a public sector company, a local authority or an approved association or institution, for being notified as eligible projects or schemes for the purposes of section 35AC . </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Rule 11N of the IT Rules, the Chairman and Members of the Committee were entitled for </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. A Sitting fee of Rs. 250 per day for attending meetings. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Reimbursement of travel expenses including taxi fare to the meeting place. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Daily Allowance of Rs. 265 if they stay in a hotel and Rs. 106 if they don't stay in a hotel. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now these Rules are amended to </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Increase the sitting fee to Rs. 3000 from Rs. 250 </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. To allow reimbursement of even air-conditioned taxi fare, and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. No daily Allowance but the reimburse the rent in any State guest house or for single room in medium range ITDC hotel like Lodi Hotel, Qutab Hotel, Janpath Hotel, Ashoka Yatri Niwas , and reimbursement of food allowance of Rs. 500 per day. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Small relief to a Great Committee. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2009/it09not065.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax Notification No. 65 /2009/ F.No.149 /22/2009- SO(TPL) : Dated 2nd September, 2009. </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax – Exemption for tour operator Service – Corrigendum to Notification after nearly two months. </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 20/2009-Service Tax, dated the 7 th July, 2009, exempts the taxable service referred to in sub-clause (n) of clause (105) of section 65 of the Finance Act, provided or to be provided to any person, by a tour operator having a <strong><font color="#FF6633">contract carriage permit</font> </strong> for inter-state or intrastate transportation of passengers, excluding tourism, conducted tours, charter or hire service, from whole of the service tax leviable thereon under section 66 of the said Finance Act. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This notification was issued on 7 th July 2009. Now the Government has issued a corrigendum on 31st August stipulating that <font color="#663399">‘<strong>contract carriage' to be replaced with “ contract carriage or tourist vehicles with a permit</strong></font> ”. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now can the government amend a notification by a corrigendum fifty days after the original notification was issued? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what is this all about? Let us look at some definitions:- </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Definition of Tourist Vehicle as given at Sec 2(43) of MV Act, 1988 </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tourist Vehicle </strong>: means a <strong>contract carriage </strong> constructed or adapted and equipped and maintained in accordance <strong>with such specifications as may be prescribed </strong> in this behalf. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>"contract carriage" </strong> means a motor vehicle which carries a passenger or passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum-- (a) on a time basis, whether or not with reference to any route or distance; or (b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey, and includes-- (i) a maxicab ; and (ii) a motor cab notwithstanding that separate fares are charged for its passengers; </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the definition above a tourist vehicle is a also a contract carriage, hence even without this amendment, perhaps the notification covers <em>point to point </em> transport of passenger even in a tourist vehicle. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anomaly of not granting exemption to tourism section as discussed in our article - <strong><a href="http://www.taxindiaonline.com/RC2/print_story.php?&newsid=9408">exemption to tour operators - Why is this special interest towards point-point bus operators? </a></strong>still continues, despite the amendment. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Corrigendum Dated 31st August, 2009</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Babus can come to office a little late but can't go early </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Babus , by habit, come late to office, but they are never late twice in the day. Those who come late in the morning are usually the earliest to leave in the evening. You go at 9.30 am to any government office and you find most of them empty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All this is going to change – at least in PC's Home Ministry. He has introduced a biometric identification system to ensure punctuality among the staff. "I hope that people absorb the spirit and the purpose behind which this system has been introduced. But this is a message to the whole country that everybody must do his work for the allotted time", said the Home Minister. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps this will be introduced in other departments soon. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But are they serious about it? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Home Ministry issued a clarification yesterday, </font></p> <blockquote> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">A working day consists of 8 hours (9 a.m. to 5.30 p.m with half an hour lunch break in MHA ) and all officers/officials are expected to work for this minimum period. The purpose of introducing the system is to regulate this aspect, i.e. 8 hours of work in a day and 40 hours in a week. It is noted that some persons may get delayed due to transport/traffic problem or some other reasons. Such late arrivals within a reasonable period of 15-25 minutes will be acceptable subject to their adjusting their working hours upto 8 hours by delayed departure. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Voice Of America reported yesterday, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India's bureaucrats have long had a reputation for not sticking to time - but old habits may have to change. Biometric scanners have been installed in an effort to promote punctuality at the offices of the Home Ministry. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However sociologists point out that it is not fair to blame just bureaucrats for slack time keeping. Punctuality is not an Indian virtue - whether at the official or social level. It is quite common for trains to run behind time, or for people to turn up late for official meetings. Guests seldom worry if they are hours late for lunch and dinner invitations, and marriage parties are often inordinately delayed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Among the pieces of advice commonly handed out to foreign businessmen heading to India is not to pack too many appointments in a day, because several could run late.</font></p> </blockquote> <p align="center"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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"> – Friday'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="#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></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><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Payment of duty before issuance of show cause notice - invoking section 11AC is erroneous: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant is entitled to the benefit of sub section 2B of Section 11A, which permitted them to pay duty of excise under intimation to the proper officer of Central Excise so that no show cause notice could be issued to them in respect of such duty. <strong>The provision, on the facts of this case, prohibited issuance of show cause notice for demanding duty under sub section (1) of section 11A and, therefore, there was no question of any determination of duty under sub-section (2) of the said section. </strong></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>Appeal to ITAT – Fee when there is loss - What does these expressions “more or less” indicate? It can only be more than a negative income even if expression “income” is held to be both positive and negative income – High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If we therefore trace the legislative history, it is clear that court fee is based on total income of the assessee. Higher the total income more the court fees payable. <strong>The only question is when the income is negative whether the expression “total income” should also be considered to be the loss. </strong></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="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax – Appeal against Tribunal's order on taxability of service – Appeal lies to Supreme Court – High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The Tribunal held that when the service is provided by a club to its members, it does not attract service tax. </em>Where does an appeal lie against such a decision of the CESTAT? The Revenue appealed to the High Court. </font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p> <p><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> </body> </html>