TIOL-DDT 1190 · 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 1190 </font><br>
04.09.2009 <br>
Friday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Reversal of wrongly taken CENVAT Credit – Is interest payable? – CBEC Clarifies </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 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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></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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RULE 14 </strong>of the CENVAT Credit Rules, stipulates; </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>14.
Recovery of CENVAT credit wrongly taken or erroneously refunded </strong>.-
Where the CENVAT credit has been <strong><font color="#FF6633">taken or utilized</font>
</strong> wrongly or has been erroneously refunded, the same<font color="#FF6633">
<strong>along with interest</strong></font><strong> </strong> shall be recovered
xxxxxxx </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now,
if you have by a genuine mistake taken the CENVAT Credit to which you were not
entitled and you realise this later or the Department tells you that you are
not eligible and as a law abiding taxpayer, you reverse the wrongly taken credit
– your woes are not over! Normally Audit Groups make you do this reversal, but
after they go, the Range Office will demand interest on the wrongly taken credit.
You are aghast and tell them that though you have taken the Credit, you have
not utilized it. But they will have none of it. They will tell you that the
Rule reads – “credit has been <strong><font color="#FF6633">taken or utilized”.</font>
</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So if you merely take the Credit, you are liable to pay interest – whether you have utilized it or not is immaterial. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now Board had been asked for a Clarification: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
decision of the High Court of P&H in the case of <em>CCE , Delhi III
V/s Maruti Udyog Ltd </em></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2006/2006-TIOL-308-HC-P-H-CX.htm" target="_blank">2006-TIOL-308-HC-P&H-CX</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> has
upheld the order of Tribunal wherein it was held that assessee is not liable
to pay interest in the case where credit was only taken and not utilized.
The SLP against this order has been dismissed by the Supreme Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On
the other hand, Rule 14 of The CENVAT Credit Rules, 2004, provides for recovery
of credit <strong><font color="#FF6633">taken or utilized</font> </strong> wrongly
with interest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of this conflict in legal provisions and the decision of the Supreme Court, a clarification has been requested from the Board. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board clarifies:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is seen that the Tribunal decision and the High Court judgement referred to
above, was delivered in the context of erstwhile Rule 57I of the Central Excise
Rules, 1944 and that the Supreme Court order under reference is only a decision
and not a judgement. Since, the Rule 14 of the CENVAT Credit Rules, 2004, is
clear and unambiguous in the position that interest would be recoverable when
CENVAT credit is <font color="#FF6633">taken <strong>or </strong> utilized </font>wrongly,
it is clarified that the <strong><font color="#FF6633">interest shall be recoverable
when credit has been wrongly taken, even if it has not been utilized, in terms
of the wordings of the present Rule 14.</font> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is strange that the Board is taking such a technical stand. While the Board is referring to a 2006 judgement of the P&H High Court and claims it to be in the context of the now extinct Central Excise Rules, 1944. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there is a recent judgement of the very same Punjab & Haryana High Court delivered in the context of Rule 12 of the CENVAT Credit Rules, 2001-02 and Rule 14 of CENVAT Credit Rules, 2004. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
High Court in its judgement delivered on July 3, 2009 in </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2009/2009-TIOL-440-HC-P-H-CX.htm" target="_blank">2009-TIOL-440-HC-P&H-CX</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> held </font></p>
<blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Reliance of respondents on Rule 14 of the Credit Rules that interest under Section 11AB of the Act is payable even if CENVAT credit has been taken. In our view, said clause has to be read down to mean that where CENVAT credit has been taken and utilized wrongly, interest should be payable on the CENVAT credit taken and utilized wrongly. <strong>Interest cannot be claimed simply for the reason that the CENVAT credit has been wrongly taken </strong>as such availment by itself does not create any liability of payment of excise duty. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is the Board not aware of this judgement or is it selective amnesia? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
similar view was taken by the CESTAT, Chennai Bench in </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2009/2009-TIOL-428-CESTAT-MAD.htm" target="_blank">2009-TIOL-428-CESTAT-MAD</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> wherein the Tribunal held, </font></p>
<blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">The wordings of Rule 12 of the CENVAT Credit Rules “taken <strong>or </strong> utilised” may deserve to be interpreted only as “taken <strong>and </strong> utilised”. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the Board is keen to collect interest without any legal base. Why do they want interest when Credit is not utilized? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anyway the Board Circular is not binding on anybody. Judicial opinion is strongly against recovery of interest. This Board Circular appears to be contempt of the P&H High Court, to which of course the Board feigns ignorance. </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why can't the Board accept reality and reduce litigation. Now every assessee who had committed the ultimate sin of taking a wrong credit will have to go up to the Tribunal even if he has atoned the sin! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Should the Board generate litigation? </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=31&filename=notification/excise/2009/excircular897.htm" target="_blank">CBEC
Circular No. 897/17/2009- CX : Dated 3rd September, 2009.</a> </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sad
Demise of Rajasekhara Reddy – But why a Holiday? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The most powerful and popular Chief Minister in India Dr. YS Rajasekhara Reddy, who had never faced an electoral defeat had no such luck with life. The finger of fate beckoned him to a remote hill in the thick Nallamalla forests where he lay dead unknown to the world for over twenty five hours. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Whole of India mourns his death and rightly so. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Union Cabinet has resolved, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. The departed leader shall be accorded a State funeral; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. Flags shall be flown at half mast in Delhi, all State Capitals on 3rd and 4th September, 2009; </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">iii. All Central Government Offices in Andhra Pradesh shall remain closed on 4th September, 2009. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meaning no disrespect to the departed leader, why should Central Government offices all over Andhra Pradesh be closed today? What are the employees going to do? Enjoy an extended weekend? And you call this mourning! Declaring a holiday in Hyderabad may be reasonable, but why should a Central Government office in Vizag be closed. Working rather than holidaying should be a better tribute the departed leader. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Guidelines on Holidays on death of high dignitaries </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government's instructions on declaring Holidays on the death of high dignitaries:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>President : </em></strong> In the event of the death of the President : </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) All offices of the Central Government will be closed throughout India on the day of which death occurs; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) On the day of the funeral – </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. all offices of the Central Government will be closed throughout India; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. industrial establishments of the Central Government will be closed at the place where the funeral takes place; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c. a public holiday under the Negotiable Instruments Act, 1881, will be declared by the Ministry of Home Affairs at the place where the funeral takes place, if it is not already a public holiday. </font></p>
</blockquote>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Vice-President: </em></strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. throughout India on the day on which death occurs; and </font></p>
</blockquote>
<div align="justify">
<blockquote>
<p>b. <font size="2" face="Verdana, Arial, Helvetica, sans-serif">at the place where the funeral takes place, for half-a-day on the day of the funeral. </font></p>
</blockquote>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Prime Minister: </em></strong> all offices of the Central Government will be closed throughout India on the day on which death occurs and also on the day of the funeral. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Union Cabinet Ministers: </em></strong> offices of the Central Government will be closed: </font></p>
<div align="justify">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. for half a
day in Delhi; and</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. if the funeral
takes place outside Delhi, for half a day at the place where the funeral takes
place. </font></p>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#663399"><strong>Other members of the Council of Ministers of the Union:</strong></font></em> a Minister of a State, or Deputy Minister of the Union, offices of the Central Government under the direct charge of the deceased Minister will be closed: </font></p>
<div align="justify">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. for half a
day in Delhi; and</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. if the funeral
takes place outside Delhi, for half a day at the place where the funeral takes
place. </font></p>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em><font color="#663399">Governor
or Chief Minister of a State:</font> </em></strong> Central Government offices
will be closed : </font></p>
<div align="justify">
<blockquote>
<p>a. <font size="2" face="Verdana, Arial, Helvetica, sans-serif">in the capital of the State concerned for half a day.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. if death occurs at a place outside the State Capital, also for half a day at that place; and </font> </p>
<p>c. <font size="2" face="Verdana, Arial, Helvetica, sans-serif">if the funeral takes place at any other place, for half a day at the place where the funeral takes place. </font></p>
</blockquote>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Special Instructions </strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. On receipt of the intimation of the death of the President, Vice-President or Prime Minister, the Ministry of Home Affairs will inform the Central Ministries and Departments, State Governments, etc. The All India Radio will also make an announcement. Heads of offices throughout India will arrange for closure of their offices as soon as intimation is received from the Ministry of Home Affairs or over the AIR, whichever is earlier. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. If intimation of the death of the President, Vice-President or Prime Minister is received after office hours, Central Government offices will be closed throughout India on the following day if it is otherwise a working day. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. If intimation of the death of the President, Vice-President or Prime Minister is received during office hours late in the afternoon, offices will be closed for rest of the day but if it is not possible to effect closure for more than three hours, Ministry of Home Affairs may issue instructions for closing the offices on the following day also if it is otherwise a working day. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. In the event of the death of a Union Cabinet Minister, the Ministry of Home Affairs will intimate the particular half day when offices at Delhi and at the place of the funeral may remain closed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. In the event of the death of a Union Minister of State or Deputy Minister, the concerned Ministry or Department will determine the particular half day when their offices may remain closed at Delhi and at the place of the funeral. The closure should be so adjusted to enable officers and staff of the Ministry or Department concerned to pay homage to the deceased or attend the funeral. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
In the event of death of a <strong><font color="#663399">Governor or Chief
Minister of a State</font></strong><font color="#FF6633">,</font> the particular
half day when the offices may remain closed will be determined by the Heads
of local offices in consultation with the Chief Secretary of the State Government.
</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. In the event of death of the President or Prime Minister, offices and industrial establishments of the Governments/Administrations of Union Territories will follow the above instructions. These offices need not be closed in the event of the death of the other Central dignitary. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. In the event of the death of Administrator or Chief Minister or other Minister of a Union Territory, the Government/Administration of the Union Territory concerned may take its own decision regarding closure of its offices. Other Central Government offices in the Union Territories will not be closed on such occasions. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
</font><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"> – Monday'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 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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>Interest has been waived by Commissioner(A) regardless or by being oblivious to provisions of Explanation to sub-section ( 2B ) of Section 11A - CESTAT terms it as illegal and sets aside order </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Explanation </em>to sub-section ( 2B ) declares that interest under section 11AB shall be payable on the amount paid by the assessee under sub-section ( 2B ). This <em>liability of the assessee is also explicit from the text of sub-section (1) of section 11AB of the Act <strong>. </strong></em></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>Assessee relinquishes life membership of registered society - receives sum as part of quid pro quo deal - Such sum cannot be treated as capital in nature as assessee was not earning any income by holding posts - no monetary loss involved - to be treated as income from other sources: High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RECEIVING </strong>any form of compensation may be a short-term relief for the recipient but it can result in a source of discomfiture if it is not properly classified in one's income return. This is what happened in this very interesting case. The assessee receives a sum in the form of honorarium or quid pro quo for having agreed to relinquish Secretaryship of a Society which runs two schools in the city. Now the question is that whether it is capital receipt or revenue receipt. For the AO it is revenue receipt but the assessee treats it as a payment having nexus with his goodwill and relinquishment of the society post. And the Tribunal agrees with the assessee. </font></p>
<p align="justify"><font color="#663399" 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>Rejection of applications by Settlement Commission – A common application for settlement of cases against three different SCNs not maintainable unless duty liability in excess of Rs 3 lakhs is shown in each of three different cases in terms of Sec 127B (1)(b) of Customs Act - Writ Petitions dismissed: Madras High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court held that the petitioner had not complied with the conditions prescribed for admitting his application by the Settlement Commission in terms of Section 127B (1)(b) of the Act. It was held that the exports were undertaken by the petitioner under different shipping bills through different ports of export and the show cause notices issued by three different authorities cannot be clubbed to be regarded as one for the purpose of these provisions in spite of the applicant having a single Import-Export code. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT </strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend. </font></p>
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