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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1253 </font></strong><br>
<strong>08.12.2009 <br>
Tuesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Water Treatment Plants - Exemption - Pipe size reduced </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per <em>Notification No. 6/2006-Central Excise, dated the 1st March, 2006</em> (sl No.7), the following goods are exempted </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. All items of machinery, including instruments, apparatus and appliances, auxiliary equipment and their components/ parts required for setting up of water treatment plants; <br>
<br>
2. Pipes needed for delivery of water from its source to the plant (including the clear treated water reservoir, if any, thereof), and from there to the first storage point; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Pipes of outer diameter exceeding 20 cm when such pipes are integral part of the water supply projects. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Notification is amended to substitute “20 cm” with “10 cm”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So now even thinner pipes become eligible for the exemption. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2009/etariff09_26.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 26/2009-CX., Dated: December 4, 2009 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Foreign Trade policy - Organic Wheat allowed to be Exported </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> ban on export of wheat is not applicable to export of organic wheat, subject to the following conditions. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Export of organic wheat duly certified by APEDA shall be permitted subject to a limit of 5,000 MT per annum; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Export allowed is also subject to registration of contracts with APEDA, New Delhi prior to shipment; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Exports shall be allowed only from Customs EDI Ports. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The quantity of organic wheat to be exported shall be monitored on a monthly basis both by the Customs Department as well as by DGCI&S, through monthly reports to be sent to the Department of Commerce / DGFT, as well as to the Department of Food & Public Distribution. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2009/dgft09not019.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT NOTIFICATION NO. 19/2009-2014, Dated: December 7, 2009 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Foreign Trade policy - Organic rice also allowed to be Exported </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> ban on export of Non-basmati rice shall also not be applicable to export of organic Non-basmati, subject to the following conditions. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Export of organic Non-basmati rice duly certified by APEDA shall be permitted subject to a limit of 10,000 MT per annum; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Export allowed is also subject to registration of contracts with APEDA, New Delhi prior to shipment; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Exports shall be allowed only from Customs EDI Ports </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The quantity of organic Non-basmati rice to be exported shall be monitored on a monthly basis both by the Customs Department as well as by DGCI&S, through monthly reports to be sent to the Department of Commerce / DGFT, as well as to the Department of Food & Public Distribution. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2009/dgft09not020.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT NOTIFICATION NO. 20/2009-2014, Dated: December 7, 2009 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ASK Income Tax </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AAYAKAR</strong> Seva Kendra <strong>(ASK)</strong> is a one stop computerized shop for the taxpayers to obtain services promised by the Department in its Citizens' Charter in a time bound manner. In order to achieve these objectives, Sevottam provides for a front office to be backed by re-engineered processes and a new outlook of the personnel so that grievances of taxpayers are not only redressed quickly but also eventually prevented. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The first ASK was inaugurated in Pune on 18.05.2009 by Mr. S.S.N. Moorthy, Chairman, CBDT. Then an ASK was inaugurated in Kochi on 14.11.2009 by Mr. P.V. Bhide, Revenue Secretary. The latest ASK was inaugurated at Chandigarh on 2.12.2009 by Mr. Durgesh Shankar, Member (R ), CBDT. A pamphlet on ASK was also specially released on this occasion. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Tax Citizen's charter: </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What they AIM:</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ to issue refund along with interest, if any within 9 months from the end of the month in which the return complete in all respects is received. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to give effect to appellate/revision order within 45 days from the date of receipt of the appellate/revision order by the A.O. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of rectification application within 2 months from the end of the month in which the application is received. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to issue refund including interest, if any, arising from proceedings other than Section 143(1), within 30 days of its determination. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to acknowledge communications from taxpayers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to allot PAN within 15 days of receipt of PAN application. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application seeking extension of time for payment of tax or for grant of instalments within one month from the end of the month in which the application is received. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to issue tax clearance certificate under section 230 of the I.T. Act immediately on the date of receipt of application or latest by the following working day. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application for recognition/ approval to provident fund/superannuation fund/gratuity fund within 3 months from the end of the month of its receipt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application for grant of exemption or continuance thereof to institutions (University, School, Hospital etc.) under section 10(23C) of the I.T. Act within one year. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application for approval to a fund under section 10(23AAA) of the I.T. Act within 3 months from the end of the month of its receipt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application for registration of charitable or religious trust or institution within 4 months from the end of the month of its receipt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application for approval to Hospitals in respect of medical treatment of prescribed diseases within 90 days of its receipt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application for grant of approval to institution or fund under section 80G(5)(vi) of the I.T. Act within six months from the date on which application was made. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application for no deduction of tax or deduction of tax at lower rate as early as possible but not later than 30 days of its receipt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to redress/dispose of a complaint/grievance within 2 months from the end of the month of its receipt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to dispose of application for transfer of case within 60 days of the receipt of application </font></p>
</blockquote>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">What they expect from the taxpayers: </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to obtain PAN/TAN and quote the same correctly in all returns, challans and correspondence. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to file all statutory returns, completely and correctly well within due dates in proper jurisdiction. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to pay due taxes well in time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to quote Bank Account Number, MICR Code and other Bank details in returns of income to facilitate issue of refunds. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to be fair and prompt in complying with all proceedings under Direct Taxes Statute. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to intimate change of address to the Assessing Officer. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to quote PAN of all deductees in TDS Returns </font></p>
</blockquote>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">And What's New? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had reported about <strong>ASK</strong> in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=1620" target="_blank">TIOL-DDT 100 25 04 2005</a></strong> and Sevottam in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6355" target="_blank">TIOL-DDT 740
14.11.2007</a></strong>. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">New banking rules must be non-discriminatory – WTO Director-General Pascal Lamy </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DIRECTOR</strong>-General of WTO, Pascal Lamy told the Conference on the New Global Trading System in the Post-Crisis Era in Seoul on 7 December 2009 with respect to post-crisis banking rules that “it is important that re-regulation be applied in a non-discriminatory manner, avoiding any form of “re-nationalization” of lending.” He said that “countries that have provided support to banks should be able to exit support as the de-leveraging process takes place, in a manner that ensures a level playing field between national and foreign-owned institutions.” </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr Lamy said, </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Policy-makers faced four major challenges. </font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ First, it was essential to stabilize the financial system, which had moved from facing a liquidity crisis to a solvency crisis. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Second, governments needed to develop stimulus packages to support a tumbling demand. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Third, it was essential to contain protectionist pressures. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Fourth, financial regulation was widely seen as being in need of reform. The financial crisis had been triggered by too many incentives for taking ill-considered risks, but also because of the inability of supervisory authorities to properly regulate the financial system domestically and internationally. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The poorest countries have been hit hard by the crisis. In particular, capital flows to developing countries have contracted sharply as a result of the global credit crunch, from 9 per cent of their GDP on average to a mere 2.5 per cent. This is affecting capital accumulation, and hence growth, in countries that need capital the most. It is also limiting investments in trade-related infrastructure that would expand poor countries' capacity to trade in the future. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We have a collective responsibility to ensure that the poorest countries do not lose access to capital and product markets. In the short run, there is certainly a role for international financial institutions to close some of the financing gap. The second WTO global review on Aid for Trade held this year concluded that an increasing share of international aid was directed towards trade-capacity building of the poorest WTO members. In the medium term, this effort should be maintained to make sure that the poorest countries keep up with the infrastructural requirements for trade. </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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"><strong><font color="#663399">Standards of Weights and Measures </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">No specific notification required for a class of goods; "Commodity in packaged form" means any commodity which is packed; Even a single or an individual item amounts to sale by measure or by count; The provisions of SWM Act and SWM Rules have been enacted for the benefit of and to safeguard interest of the consumers – High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VARIOUS</strong> sub-clauses of Section 1(3) of the SWM Act empowers the Central Government to issue separate notifications and appoint different dates for enforcement of (a) different sections/sub sections of the SWM Act (b) areas to which the SWM Act will be applicable, (c) classes of goods to which the SWM Act will be applicable and (d) classes of weights and treasures or users of weights and measures to which the SWM Act will be applicable. However, Section 1(3) does not endure a notification for individual or specific goods. A general notification is not barred or prohibited. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Assessing Officer cannot go beyond the book profits as per audited accounts provided they are prepared as per manner provided in Part II and Part III of Schedule VI to Companies act, 1956 and are adopted in AGM. - ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the instant case, admittedly the accounts are not prepared in the manner provided in Part II and Part III of Schedule VI to the Companies Act, 1956 since the profit on sale of investments amounting to Rs.10,38,13,765/- which is a material amount, has not been routed through the Profit and Loss A/c. Therefore, the Assessing Officer has the power to re-work the book profit by recasting the accounts in the manner provided as per Part II and Part III of Schedule VI to the Companies Act, 1956. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">SSI exemption – clubbing - Merely because both firms were dealing in same type of production and because one of partners in both firms was same, it could not be concluded that one was a dummy unit of other – High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TRIBUNAL</strong> rejected the contention of the Revenue and allowed the appeals by majority of two against one. The findings of the Tribunal are clearly based on facts. In view of some of the salient facts noted above, it is impossible to hold that the findings of fact given by two of the Members are perverse. </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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