TIOL-DDT 1213 · 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 1213 </font><br> 12.10.2009 <br> Monday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Draft Paper on GST within a month</strong></font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EMPOWERED</strong> group chairman Asim Dasgupta told reporters that the empowered group of state finance ministers will come out with a draft paper on Goods and Services Tax (GST) within a month to facilitate implementation of the new tax regime by the April 1, 2010. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The responses of the states will be obtained (on the discussion paper) and the draft will be finalised for discussion. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Group will hold discussions with the stakeholders, including trade and industry, after finalisation of the draft. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The draft, for which a joint working group was constituted last month, would deal with important issues like legislation, rules and procedures of the GST. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The group for preparing the draft comprises officials from the Finance Ministry and state revenue officials. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">IPL under Income Tax Net? Or Service Tax? </font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8793" target="_blank">DDT 1077-24.03.2009</a>, </strong>we had reported, </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now that IPL has shifted its venue to outside India, it will be interesting to see as to how these services will be treated. Are they provided from outside India and received in India or received outside India? How about a new set of “Taxation of services provided by IPL from Outside India Rules 2009”? </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it seems that IPL will come under the TDS net as the tournament, although played outside the country, was conducted by the BCCI, which is registered in India. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Or will they get both Service Tax and Income Tax? </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Powers and Functions of CVC </font></strong></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to exercise superintendence over the functioning of the Delhi Special Police Establishment (DSPE) with respect to investigation under the Prevention of Corruption Act, 1988; or offence under CRPC for certain categories of public servants and to give directions to the DSPE for purpose of discharging this responsibility; [CBI Cases] </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to review the progress of investigations conducted by the DSPE into offences alleged to have been committed under the PC Act; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to undertake an inquiry or cause an inquiry or investigation to be made into any transaction in which a public servant working in any organisation, to which the executive control of the Government of India extends, is suspected or alleged to have acted for an improper purpose or in a corrupt manner; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to tender independent and impartial advice to the disciplinary and other authorities in disciplinary cases, involving vigilance angle at different stages i.e. investigation, inquiry, appeal, review etc.; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to exercise a general check and supervision over vigilance and anti-corruption work in Ministries or Departments of the Govt. of India and other organisations to which the executive power of the Union extends; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to chair the Committee for selection of Director (CBI), Director (Enforcement Directorate) and officers of the level of SP and above in DSPE. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to undertake or cause an inquiry into complaints received under the Public Interest Disclosure and Protection of Informer and recommend appropriate action. </font></p> </blockquote> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Registration of importers to issue CENVAT Invoices – Board seeks opinion, view and comments </font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received from trade and industry for reintroducing the facility of endorsement of Bill of Entry to facilitate passing on of cenvat credit. This request has been received from importers who intend to transport the imported goods in full or part from the port of import to their customers or to their job worker for further purposes. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board notes:- </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Endorsement of bill of entry is not permissible as per the present provisions of law. Moreover, the said practice is also not in consonance with the present policy of cenvat credit where credit is allowed on the basis of an invoice or other document which carry the registration number of the seller. Rule 9(1)(ii) of the CENVAT Credit Rules, 2004, provides that invoice issued by an importer is a valid document for taking cenvat credit. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further, it has been pleaded by some of the importers that there is no specific provision in the law which mandate the importer to take Central Excise registration. In this connection, it has been noticed that in the erstwhile Central Excise Rules, there was a specific provision for allowing credit on an invoice issued by an importer registered with the Central Excise Officer. In order to avoid confusion, it is proposed that relevant provisions in the CENVAT Credit Rules may be amended to specifically provide that an invoice issued by an importer registered with the Central Excise Officer, would be a valid document for availing cenvat credit. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioners and Commissioners are requested to bring the contents of this communication to the notice of trade and industry to seek their views. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Trade & Industry and the field formations are requested to give their opinion, view and comments on this proposal. On receipt of the views, a final view would be taken by the government. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Board wants opinion, view and comments by 31 st October, 2009 to be sent to <a href="mailto:amishkumargupta@gmail.com">amishkumargupta@gmail.com </a> or faxed to faxed to Ms. Hemambika R. Priya, Director (CX-6&8) at 011-23092867</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"> – Tuesday'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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Written off inputs in books of account – Payment of CENVAT Credit taken - Notification 26/2007-CE(N.T) dated 11.05.2007 is prospective in operation - CESTAT. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench on a careful examination of the submissions observed that the appellant's case is squarely covered by the Tribunal's decisions in the case of <em>Bharat Heavy Electricals Ltd. </em><strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2002/2002-TIOL-182-CESTAT-BANG.htm" target="_blank"><font size="1">2002-TIOL-182-CESTAT-BANG</font></a></em></strong><em> and Audco India Ltd. vs. CCE, Chennai <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2005/2005-TIOL-1530-CESTAT-MUM.htm" target="_blank"><font size="1">2005-TIOL-1530-CESTAT-MUM</font></a></strong></em> and the reliance placed by the Revenue representative to the case of <em>Asiatic Gases Ltd. </em><strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2009/2009-TIOL-781-CESTAT-MUM.htm" target="_blank"><font size="1">2009-TIOL-781-CESTAT-MUM</font></a></em></strong> was not applicable to the case. <em>It was also held that Notification no. 26/2007–CE(N.T) dated 11.05.2007 does not have any retrospective effect as it was introduced on 11.05.2007. </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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sec 28(i) - assessee receives subsidy from UNDP under Montreal Protocol to phase out environment-damaging ODS - a part of subsidy is towards meeting incremental operational costs - since it is for meeting additional operational expenditure, it is taxable revenue receipt: ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOR </strong>the income tax purpose, a subsidy or a compensation is a capital receipt. But not all subsidies. Before deciding so, one needs to look at critical characteristics of such receipt closely linked to the purpose for which it is paid. In the present case, the Indian company receives a sum as subsidy for phasing out environment-damaging Ozone Depleting Substances (ODS) under Montreal Protocol from UNDP. Now the question is - whether it is to be treated as revenue receipt or capital receipt? </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"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice after 18 years – Bombay High Courts directs the Customs to pay the value of goods with interest at 6% to the petitioner – also awards cost of litigation. </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The revenue departments often shy away from giving the legitimate benefits to the trade and procrastinate the issues on the presumption that they are doing a great favour to the nation by saving some revenue, only to be directed by the courts later to compensate the victims with not only the amount, but also interest. In this case, the HC even ordered the payment of cost of litigation to the petitioner. </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> </body> </html>