TIOL-DDT 1214 · 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 1214 </font><br>
13.10.2009 <br>
Tuesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Your Taxes @ Work - Take Diversion </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> is an interesting signboard put up by a Municipal Corporation right in the centre of a road under repair. Any tax payer passing through the road would have a feeling that his taxes, at least some of them, are put to good use. In many countries they have such boards at the entrances of bridges and buildings. The taxpayer gets a feeling that his taxes are put to good use. People would love to pay taxes if they know that their taxes are put to good use. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But in India, no tax payer gets satisfaction that his taxes are well spent. With our taxes, we expect the government to provide us basic facilities like security, health, education and infrastructure. And when we look at these facilities, many of us – the taxpayers would feel that we have been short-changed. We are afraid to go to the police, our infrastructure is in shambles, our public education is a shame and the government hospitals are hell on earth. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently I had the opportunity of being the victim in a premier government hospital. More than my torture, the plight of the doctors was miserable. They are the best doctors commanding enormous respect. In rank, most of them are equal to our Chief Commissioners. Two of them sit in a cubicle and the cubicle has no door – just a curtain washed years ago. Hundreds of patients with all kinds of diseases and infections visit them daily. It is a miracle that they are alive. (the doctors, not the patients). And look at the opulence a Chief Commissioner has! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Something wrong with the way we spend the tax payers' money. Today we carry an article by a little girl who had to spend five days in a government hospital fighting swine flu, in the company of rats and dogs – <strong><font color="#663399">Papa, don't pay taxes !</font></strong> <strong>See Guest Column</strong> </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a><strong>Anti-dumping duty on Poly Vinyl Chloride Paste Resin </strong></a><strong> - extended </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Definitive Anti Dumping Duty was imposed on imports of Poly Vinyl Chloride Paste Resin, falling under tariff item 3904 21 10 of the First Schedule to the Customs Tariff Act, originating in, or exported from, the European Union by Notification No. 104/2004-CUSTOMS, dated the 7th October, 2004 and which would have lapsed on 6.10.2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the government has extended it by one more year till 6th July, 2010. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_115.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 115/ 2009- Cus ., Dated: October 6, 2009</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti-dumping duty on Plain Medium Density Fibre Board – another resurrection. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Duty was imposed provisionally by Notification No. 21/2009-Customs, dated 27 th February, 2009 and was valid till 26th day of August, 2009. So from 27 th August, 2009, there was no anti dumping duty on this product. But that is not how our lawmakers function. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While covering this in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8684" target="_blank">TIOL-DDT 1063 - 02.03.2009</a>, </strong>we had reported, <font color="#FF6633"><strong>“this is valid till 26th day of August, 2009 and will of course be valid even if the government forgets to extend it then and chooses to do it on a later day.”</strong></font> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is what exactly happened. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the government has imposed definitive anti dumping duty effective from the date of imposition of the provisional anti-dumping duty. So the government forgot to extend the antidumping duty on 26 th August, 2009 and who gets punished for such memory loss? The importer of course! The Anti Dumping section badly needs an alarm clock. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_116.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 116/ 2009- Cus ., Dated: October 6, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Adjudication authorities for DRI cases </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has appointed Adjudicating Authorities for DRI cases. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_150.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 150 - 155 / 2009- Cus ., ( N.T. )., Dated: October 9, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Audit of assessments - minor ports - Board rescinds a 32 year old instruction</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board's instructions issued vide F.No . 8/6/67-Cus.III dated 05.11.1977 stipulated that various documents such as Bills of Entry, postal imports of certain categories, refund claims of certain categories, drawback shipping bills of certain categories etc., pertaining to various minor ports and foreign post offices should be sent for audit to major Customs Houses like Mumbai, Cochin etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has now realised that things have changed in the last 30 years – like proliferation of Commissionerates, introduction of EDI, Risk Management System, and inter-connectivity for speedy communications and the availability of modern tools such as NIDB data. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, it has been decided to discontinue the existing system of sending documents pertaining to various minor ports and foreign post offices to major Customs Houses like Mumbai, Cochin etc., for audit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has rescinded the 1977 instructions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board should search for more such archaic circulars and instructions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chief Commissioners <strong><font color="#FF6633">concerned</font> </strong> are requested to ensure that these instructions are implemented at the earliest and send a compliance report to the Board by 30th November 2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At last it is not <strong><font color="#FF6633">concerned</font> </strong> Chief Commissioners. <strong>DDT </strong> had been running a virtual crusade against the wrong usage of the word <strong><font color="#FF6633">concerned</font></strong>. And it is gratifying to see the concerned government instructing all concerned. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2009/cuscir09_027.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Circular No. 27/2009- Cus ., Dated: October 8, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Granite Sector - No limit for spares required for capital goods for use within the EOU . </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 6.7 (a) of HBP (04-09) { para 6.6(a) of HBP (09-14)} allows granite sector to take spares up to 5% of the value of the Capital Goods to quarry site. Representations were received from EOUs in granite sector stating that some of the Customs Authorities apply the 5% limit in regard to procurement of spares also under Customs Notification 52/03. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has taken up the matter with Department of Revenue, which has clarified vide OM DGEP /FTP/62/2009- EOU dated 12.8.2009 as under: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“ EOUs in granite sector are allowed to procure capital goods, which are required in connection with processing and manufacture or production of articles of granite for export. Besides these capital goods, these units are also allowed certain specified quarrying equipments and spares up to 5% value of quarrying equipments in each year. These quarrying equipments and spares are allowed to be taken to quarry outside the unit. These quarrying equipments and spares are specified under Annexure V of Notification No. 52/2003- Cus and 22/2003-CE both dated 31.3.03. The capital goods and spares required in the EOU in connection with processing and manufacture or production of articles of granite for export are specified in Annexure I of the notification 52/2003- Cus . </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Para 6.7 (a) of HBP v 1 [6.6(a) of HBP (09- 14 )] puts restriction of removal of spares to 5% to quarrying site. Thus spares allowed duty free for quarrying need to be restricted to that level <strong>. <font color="#663399">However, there is no limit for the spares required for capital goods for use within EOU</font> </strong>.” </em></font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2009/dgft09cir010.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Circular No. 10/2009-2014 Dated: October 12, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs Officers have to Pass Corruptibility Test </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All Customs officers have to pass examinations and psychological tests. During the tests, not only the professional skills of the officers will be assessed, but their loyalty as well. An expert commission, including representatives of the trade unions, will sift out corrupted and incompetent customs officers and they will be dismissed immediately. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Honest and loyal officials will receive a bonus to their salaries. Thus they won't be conscience-stricken, as they will have legal additional income. Over 500 customs officers will be fired because they don't work efficiently. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The test includes 40 questions: 20 on general Customs and excise legislation and 20 specific questions related to the line of work of the department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Indian Customs officers need not worry – this is happening in distant Bulgaria, where the tests have started yesterday. </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>
<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>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Seizure - Notice is required to be given to person from whose custody the goods were seized even for granting extension of time to issue show cause notice – Seizure quashed - High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The person from whose custody the goods have been seized under section 110 of the Act is entitled to a notice under section 124 of the Act and is entitled for a reasonable opportunity of making a representation and reasonable opportunity of being heard before an order of confiscation of goods is passed. In the present case, admittedly no notice under section 110(2) read with 124 of the Act has been issued to the petitioner within a period of 6 months. In fact the notice has not been issued till today. Consequently, the continued detention of the goods seized beyond the statutory period of 6 months (which can be extended up to one year) under section 110(1) of the Act is illegal. </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>India-Singapore DTAA - assessee enters into agreement with Singapore-based Group Co for logistics services - Sec 195 - unless Revenue establishes that technical skills or experiences were 'made available' to assessee, may be through e-commerce, such payments cannot be subjected to TDS: ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>expression <strong>'make available' </strong> incorporated in various Double Taxation Avoidance Agreements (DTAAs) indeed calls for necessarily making available tangible evidence if Revenue wants to tax the payments made towards fees for technical services provided by non-residents. Unless the transfer of technical knowhow or experience or skills is made to the assessee so that it can use it on its own or for future use, no payment made for providing services of technical nature can be subjected to TDS. True, <strong>some of the modern skills can be transferred or passed on to the assessee through e-commerce </strong> but the Revenue needs to collect pertinent documents to establish the same before the payments are subjected to the TDS. </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>Appellants under <em>bona fide </em> doubt regarding their activity is a reasonable cause to not deposit the service tax in time - Penalties under sections 76, 77 and 78 not imposable in view of section 80 of the Finance Act, 1994 - CESTAT. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant is entitled to get the relief as per the provisions of section 80 of the Finance Act, and following the ratio of the case of ETA Engineering Ltd. (supra) holding that the appellants were under <em>bona fide </em> doubt regarding their activity, was a reasonable cause on their part not to depositing the service tax in time, the penalties under section 76, 77 and 78 of the Finance Act, not imposable. </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>