TIOL-DDT 1205 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1205 </font><br>
29.09.2009 <br>
Tuesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax Returns – Tomorrow is due date – Will CBDT extend it? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SEPTEMBER </strong>30th is the Due Date for filing Income tax Returns for corporate assessees and those who come under compulsory audit. Virtually the Government of India is on a vacation, with Puja and other holidays. Yesterday was a holiday and tomorrow the banks are closed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Last week, the Institute of Chartered Accountants of India, made a representation to the Chairman, CBDT requesting him to extend the due date for filing the return of income u/s 139 (1) of the Income Tax Act, 1961, as most of the establishments are virtually closed on account of festivals. Representations were received from members all over the country posing the difficulties faced by them in preparing and filing the return of income by due date. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further,
ICAI has also suggested “CBDT to request the Assessing Officers not to fix
the cases near to the last date of filing return of income and where the
cases are already fixed up the same may be adjourned to some later date.
It has been noticed that a large number of cases have been fixed up by the
Assessing Officers near to the last date of filing return of income which
becomes burdensome for the assessees.” <strong>(and of course the CAs) </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A CA told us that there is total confusion in the Department and the assessees. Many of the assessees do not cooperate with the Auditors and they want the returns to be filed promptly and properly. It seems even now some Income tax offices are accepting the ITR V Forms. There is total confusion about TDS certificates. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We asked a former senior officer of the IT Department. He said that this is not the first time that September 30 has come. The assessees and CAs are aware of banks being closed on September 30 and they should plan their payments and returns accordingly. In any case, heavens are not going to fall. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the trade and the CAs are really worried – for the past few days many of them have been working round the clock to meet the target and they hope against hope that the due date will be extended at least by a week. But the decision has to be announced today. All eyes on CBDT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT extended the last date for return filing to 31st October,
2009 for Pune, Sagli and Kolhapur.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of Commercial samples – Exemption </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification No. 154/1994-Customs, dated the 13th July, 1994, import of commercial samples are exempted to the extent of Rs. 1,00,000 (one lakh ) in value or <strong>15 units </strong> in number, within a period of twelve months; and where the samples relating to gem and jewellery industry are imported by exporters of gem and jewellery, the import of said sample shall not exceed value of Rs. 3,00,000 (Three lakhs) or 0.25% of average value of three immediately preceding years exports whichever is lower, and such samples shall not exceed <strong>15 units </strong> in number, within a period of twelve months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this '15 units' is made 50 units. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_109.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 109/2009 – Customs; Dated 24th September, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ceramic tiles– bar is on credit of <em>inputs </em> not <em>input services</em>; Abrasive stones – capital goods. - CBEC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has clarified two issues: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Notification No. 05/2006-CE dated 01.03.06 which stipulates that Central Excise duty at 8% will be charged on Ceramic tiles manufactured in a factory not using electricity for firing the kiln on the condition that “if no credit of the duty paid on the inputs used in or in relation to the manufacture of such ceramic tiles has been taken under rule 3 or rule 13 of the CENVAT Credit Rules, 2004”. Representations have been received from trade & industry stating that objections are being raised by the field formations holding that taking of Cenvat credit on input services would violate the condition of the notification. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Board clarifies that the notification debars taking of credit on inputs and not on input services. Further input and input services are separately defined in the CENVAT Credit Rules, 2004, and the term ‘input' does not include ‘input services'. Therefore, taking of credit on input service would not violate the condition of notification. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Till the operation of 6 digit CET , Abrasive stones were classifiable under 680110 and was covered under the definition of capital goods as CENVAT Credit Rules, 2004. However, after the introduction of 8 digits CET , with effect from 28.02.2005, abrasive stones were classified under 6805. Therefore, a view was taken that the abrasive stones came out of purview of capital goods after 28.02.2005. Vide Notfn . No. 07/2007-CE (NT) dated 21.02.2007, the heading 6805 was included in the definition of capital goods. Representations have been received from the trade & industry that because of non-coverage of abrasive stones under the definition of ‘capital goods' during the period 28.02.2005 to 20.02.2007, the field formations are taking a view that these goods are in the nature of ‘input', therefore, the credit taken on such abrasive stones during this period, disentitles the units from availing benefit of notification no. 05/2006-CE. </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Board clarifies that abrasive stones which were classified under heading 680110 under 6 digit tariff, would be treated as capital goods even though the same were classified under heading 6805 in the eight digit tariff for the period 28.02.2005 to 21.02.2007. Therefore, benefit of notification cannot be denied on this ground. </font></strong></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2009/excircular899.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CIRCULAR NO. 899/19/09- CX., Dated: September 25, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Combined Revenue Board - Move challenged in High Court </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In our <strong><a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9644" target="_blank">TIOL - COB( WEB) – 152 SEPTEMBER 10, 2009,</a> </strong>we had suggested “<strong>it's time to merge CBDT & CBEC, and create a Council for Revenue Management”. </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Strangely, it
has been done in Pakistan on September 12. They created an Inland Revenue
Service merging Customs, Excise and Income tax. To start with the Income
Tax department is abolished and will automatically become part of the IRS.
The existing officers have an option to either join the new service or remain
in their present service which would be a dead cadre with no future intake.
If all the officers opt for the new service, the service will be renamed “Pakistan
Revenue Service” and conduct all revenue and tax business. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">How did the officers take it? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Customs and Excise officers have challenged the move in the Lahore High Court. One of the grounds is that it is in abdication of sovereign authority to international monetary institutions. They also seem to be afraid of the modern version of the invisible East India Company out to come for trade and stay back to rule! </font></p>
<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"> – Wednesday's cases</font></strong></font></strong></font></p>
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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" 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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>Activity of receipt, storage and sale of goods on commission is not covered by definition of C&F Agent's service. - CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this interesting case, the Member (J), allowed the appeal observing, “We are unable to understand how the authorities without identifying the documents on which they rely, have proceeded against the appellant to issue SCN and made adjudication. When we find that entire proceedings have suffered from above legal infirmity, the appellant should succeed. Accordingly, we allow the appeal.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While agreeing with the learned brother's finding that the authorities have not examined the invoices issued by the Appellants for ascertaining the nature of their service as discussed below, the Member (T) was of the view that it is clear that the Appellant's activity is not covered by the definition of C&F Agent's service. </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>Income Tax – Settlement Commission passed orders without hearing and examination of records to meet deadline of 31/3/2008 – cases to go back to Settlement Commission and not Assessing Officers – amounts already deposited not to be refunded - High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Primary question for consideration in a bunch of writ petitions preferred by Revenue and cross petitions by different assessees is with regard to applications filed before settlement commission on or before 01/06/2007 and assailing orders of Settlement Commission, on the premise that if impugned order of Settlement commission, is held to be legally unsustainable, in such an eventuality, whether matters are to be remitted back to settlement commission to examine afresh in accordance with law or to the assessing authority in view of proceedings initiated under Chapter-XIX-A on being held to be abated in terms of S.245 - HA of the Act ? </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COFEPOSA </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Preventive detention is not punishment for a past wrong; only a means to detain a person from continuing with his prejudicial activities in future; Detention order passed in 2001, not yet executed, lost its relevance; High Court can entertain writ at pre-detention stage; Government cannot be penalised for folly of their counsel – High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What the proposed detenu has done in the past cannot be washed away and if the allegations against him are established in the judicial / quasi-judicial proceedings, he shall have to suffer the consequences thereof. The fact that he has been declared a proclaimed offender also does not get washed away. He has tried to avoid the due process of law and that is something for which he will have to suffer the consequences. But, this does not mean that he has to be detained so as to prevent him from indulging in prejudicial activities when there is no evidence of his having indulged in any such activity for over seven years. </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="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><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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