TIOL-DDT 1246 · 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 1246</font> <br>
27.11.2009 <br>
Friday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Submission of Trade Statistics to DGCI & S </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has informed the field Customs Officers that </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ministry of Finance, Department of Economic Affairs, in order to avoid divergence in Merchandise Trade Data, has requested CBEC to provide trade statistics to the DGCI&S, to the extent possible, on real time basis in respect of Customs EDI stations. They have also requested that Customs Non-EDI stations may provide the trade related data to the DGCI&S within 15 days of its being filed. </font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9151" target="_blank">DDT 1129 - 10.06.2009</a> </strong>for more details on these statistics. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2009/instruction09_011.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC F.No.401/49/2003-Cus.III (Pt) Dated: November 26 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax on Renting of Immovable Property - Is Delhi High Court Judgement applicable to rest of India? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LITIGANTS</strong> don't really walk out of court rooms all that happy after winning a case – for that is not the end of the story. There is always an appeal or a retrospective legislation, in public interest of course. The other day, the Revenue Secretary was explaining to a trade body how difficult it is for him and his dedicated boys to draft and get retrospective legislation enacted. In Public Interest! What a thankless job, really! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Coming back to renting, since the Delhi High Court delivered its landmark judgement in the <strong><em>HOME SOLUTION RETAIL INDIA LTD </em></strong>case </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2009/2009-TIOL-196-HC-DEL-ST.htm" target="_blank"><em>2009-TIOL-196-HC-DEL-ST</em></a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">,
unfortunate landlords in rest of India are in a daymare. Their tenants are
refusing to pay Service tax, citing the Delhi High Court decision. The Board
had sent a very diplomatic letter to the field asking them to try to collect
the tax by persuasion or law! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chennai Service Tax Commissioner was more forthright in his reply to a question raised in the RAC meeting held on 25.06.2009. He stated, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board was aware of the decision of the Hon'ble High Court of Delhi and a SLP along with Stay Petition has been filed before the Hon'ble Supreme Court of India. It would be incorrect to stop payment of service tax, as otherwise demand notice would be issued by the jurisdictional officers invoking interest and penalty provisions. In the event of Revenue winning the appeal, the responsibility for the payment of applicable Service Tax with interest would squarely fall on the landlord. Hence, till the Hon'ble Supreme Court decides the case, it would be proper to mention service tax in the bills and remit the tax collected into the Govt. Account. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what happens if the tenant doesn't pay or worse still, some tenants pay and some don't? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is the Delhi High Court judgement binding on the Tribunal? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I had an interesting case sometime back. On an identical issue, there were two conflicting decisions of the AP High Court and Kerala High Court. The AP High Court decision was in favour of the importer while the Kerala High Court decision was against. On the same day the tribunal had to decide an appeal from Kerala and another from AP. The Tribunal being bound by both the High Courts decided the Kerala case against the importer and the AP case against the Revenue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We should seriously think of certainty and clarity before we embark on mega projects like DTC and GST (no code yet) </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>List of Eligible Inputs? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> same Chennai Commissioner was asked about denial of CENVAT Credit for input services like rent-a-cab. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">His reply: “the issue was a big one throughout the Country. It was stated that the Board was aware of the matter and had also been addressed to issue a list of eligible / ineligible input services. There were cases of <em>mediclaim </em> and flight tickets on which CENVAT was availed. Needless to say each case was unique and needed to be scrutinized individually in detail as to whether the CENVAT availed was ‘used in or in relation to the manufacture of goods' or ‘used for providing output service'. Board was also contemplating filing of appeals through the jurisdictional Commissioners with the Hon'ble Supreme Court, against the Judgements passed by various Tribunals, in the interest of Revenue. <strong><font color="#663399">Till such time the issue attained finality it would be better to wait</font> </strong>.” </font></p>
<p align="left"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Thank You, Sir! </em></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Reconstruction of lost EP copy of Shipping Bills</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REGARDING</strong> re-construction of EP copy shipping bills in cases where such documents have been lost or misplaced, the JN Customs Commissioner observed that all the shipping bills filed under various export promotion schemes are being transmitted online to DGFT and can be verified by DGFT online. Hence, it has been decided that in all such cases the officer incharge of the CFS concerned shall attend to the reconstruction of the EP copy. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/public_notice89.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>JAWAHARLAL
NEHRU CUSTOM HOUSE PUBLIC NOTICE No.89/2009 Dated: November 26, 2009 </strong></font></a></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"> – Monday's cases</font></strong></font></strong></font></p>
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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>Supply of workers for housekeeping, toilet cleaning etc,. – liable to ST under recruitment or supply of manpower - CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>payment to be made by the company is related to the number of labourers supplied during a specific period and not related to the quantum of work carried out. For example, in case of housekeeping work, it can be related to the area of the building to be cleaned which can be given in square feet. In the case of loading and unloading it can be number of trucks or the weight of the goods loading and unloading etc. whereas both these items do not find place in the contract. </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>Charity and/or religious – or/and dilemma? Benefits to assessees carrying on activities of charitable as well as religious nature, no provocation to read down law and state that benefits will be available only if assessee is carrying on charitable purposes alone or religious purposes alone. – ITAT by majority </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INCOME</strong> derived from property held under trust wholly for <strong>charitable or religious </strong> purposes. What if the trust is <strong>charitable and religious ? Can't charity and religion go together? </strong></font></p>
<p align="justify"><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>CENVAT Credit on Welding Electrodes is inadmissible – Rajasthan HC decision in Hindustan Zinc binding only to parties to case – View taken by LB in Jaypee Rewa stands approved by SC in SAIL case and is to be followed - CESTAT </strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> are of the considered opinion that the welding electrodes used for repair and maintenance of the machinery cannot form the inputs within the meaning of said expression under CENVAT Credit Rules, 2002 and 2004 for the purpose of claim of CENVAT Credit under the said rules as the said products are not used or utilized in the process of manufacture of the final product or in relation to the manufacture of the final product . </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend. </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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