TIOL-DDT 1264 · 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 1264 </font><br>
23.12.2009 <br>
Wednesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No Education Cess on amount paid under Rule 6 of CCR, 2004 </strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Rule 6(3)(1), </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If a manufacturer or Service Provider taking credit of inputs or input services and manufactures both dutiable and exempted goods/ provides taxable and exempted services, he is required to maintain separate accounts and if he doesn't, one of the options is to pay an amount of 5% of the value of exempted goods/6% of the value of the exempted services. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now when he pays this 5% or 6%, is he required to pay Education Cess on this amounts? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was a question that the Chief Commissioner of Central Excise, Delhi asked the Board. The CBEC has been kind to clarify that “the amount paid under Rule 6 of the CENVAT Credit Rules, is not excise duty; therefore the education cess is not payable thereon”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unfortunately, such important clarifications are not made public by the Board and it has been a difficult job for us in TIOL to fish out such private communications of huge public interest. Why can't they take a decision that all clarifications WILL be always in the Public Domain. Why do you hide information from the Public in whose interests you give that and circulate it only among your officers who have only scant respect for your authority and views? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this clarification, itself, we can be sure some bright field officer will come up with a brilliant idea that these instructions are not applicable to Service Tax as the Board clarification was only in respect of Central Excise! </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2009/excise_instructions_ccr.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Letter in F. No. 267108/2009 – CX 8 Dated: August 25, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Definitive Anti Dumping Duty on Flax Fabric - yet another resurrection </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT </strong> is never tired of reporting the slumber of the word – they have absolutely no mechanism to keep track of their sun set notifications. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional anti dumping duty was imposed on import of Flax fabric, falling under the heading 5309 of the First Schedule to the Customs Tariff Act, 1975 originating in, or exported from, the People's Republic of China and Hong Kong by Notification No. 30/2009- Cus ., dated 26-3-2009. The Notification itself affirmed, <em>The anti-dumping duty imposed under this notification shall be effective upto and inclusive of the 25th September, 2009. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, after 26.09.2009, there was no anti dumping duty on this product. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has imposed definitive anti dumping duty on the product – and with effect from 26.03.2009 - the date of imposition of the provisional anti-dumping duty! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What would be the position of the imports made during the period 26.09.2009 to 20.12.2009? Will they allege that the importer had suppressed the fact, [with intent to evade duty] that the government was going to impose this duty with retrospective effect? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_142.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION NO. 142/2009-CUSTOMS Dated: December 21, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Regulations for Courier imports and exports through electronic declaration and processing in specified Customs stations - Board seeks comments </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has issued Draft Regulations to formulate Courier Imports and Exports (Electronic Declaration and processing) Regulations , for comments and suggestions on the Draft Regulations, from the trade and industry associations, departmental officers and others. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The scope of the regulations cover the manner in which imported or export goods may be handled in courier medium at specified customs stations where automated system of filing of customs declarations and its processing have been put in place. It also covers the procedure for clearance of imported or export goods, the responsibilities of the authorised couriers engaged in such activities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You can mail your comments to <a href="mailto:uscusiii@nic.in">uscusiii@nic.in </a> latest by 31.12.2009 </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2009/excise_instructions_ccr.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC F.No.450 /54/2008- Cus.IV Dated: December 18, 2009 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Telangana Tangle heats up Delhi despite Chill </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANDHRA </strong>Pradesh, especially Hyderabad is in turmoil over the Telangana issue. The chilly December in Delhi is heated up with the spicy Telangana issue. You give Telangana, the Andhra MPs are going to quit – you don't give Telangana, the Telangana MPs are going to fight. A <strong><em><font color="#FF6633">Scylla and Charybdis</font> </em></strong> situation for the centre! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meanwhile the Hyderabad Economy is going for a toss and the stupid politicians and more stupid student agitators are not aware of this. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More than 26 years ago, writing for the Indian Express, on 12.05.1983, I had suggested:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Make Chandigarh the Capital of Punjab and make the Sikhs happy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Haryana may make a hue and cry – give them New Delhi. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Make Hyderabad the Capital of India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Make Vijayawada the Capital of Andhra Pradesh </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Everybody should be happy! </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"> – Thursday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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"><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Commissioner (Appeals) is bound by order of CESTAT, especially in assessee's own case – High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Judicial propriety demands that when there is an order of higher forum available in the assessee's own case, the same has to be followed by the lower authority unless certain distinguishing features are pointed out by such lower authority or the order of the higher authority is reversed or suspended. </font></p>
<p><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>Advance Ruling - Foreign Tax Resident providing seismic data processing to ONGC - income derived in India is covered under provisions of section 44BB - AAR </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
very same issue came up for consideration in a recent ruling of this Authority
in Geofizyka Torun Sp.Zo.o . Poland - </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong>(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=183&filename=legal/ara/2009it/2009-TIOL-31-ARA-IT.htm">2009-TIOL-31-ARA-IT</a>)</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">,
In this case, Section 44BB , 9(i)(vii) and 44DA have been exhaustively dealt
with along with the related case laws. The facts and questions raised in
both the cases are identical and, therefore, there is no need to enter into
further discussion on the legal issue. This Authority held in this case that
section 44BB is attracted and the Revenue's contention has been rejected. </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" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appeal without authorisation by Committee of Commissioners –cannot be cured after dismissal of appeal – High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A perusal of the file shows that the Revenue has proceeded on the premises that on 2.2.2009 it has been given time to cure the defect by 9.2.2009 as the next date fixed is 18.2.2009. The aforesaid premise is factually incorrect as the appeals were dismissed vide order dated 2.2.2009. In any case once the fundamental element of formation of opinion of filing the appeal is missing then no appeal is deemed to be instituted in the eyes of law. <strong>Ordinarily, we do not non suit the Revenue for a procedural lapse but this case is of such a nature that lapses one after the other has been committed</strong>. Therefore, the appeals are wholly without merit and are liable to be dismissed.” </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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