TIOL-DDT 1295 · the untouched capture
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<p><font size="3"><strong><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 1295</font><font face="Verdana, Arial, Helvetica, sans-serif"></font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <br>
<strong>09.02.2010 <br>
Tuesday</strong> </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Regional exemptions – J&K Gets extended with more value addition rates</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REMEMBER</strong> the confusing “value addition” based; refund based; area based; exemption Notifications? Have a look at <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7096" target="_blank">DDT 835 31.03.2008</a></strong>. There are eight Central Excise notifications pertaining to various regions like North east, J&K etc,. The exemption works by a complicated system of refund of <strong><font color="#663399">“the duty payable on value addition undertaken in the manufacture of the said goods by the said unit”</font></strong>. In effect, what is exempted is the duty paid on “value addition”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=29&filename=notification/excise/2002/etariff02_057.htm" target="_blank">notification No. 57/2002-Central Excise, DATED: November 14, 2002</a></strong></em> for Jammu and Kashmir was for a period of ten years from 14.11.2002 or from commercial production whichever is later. Now it is available for another ten years from 6.2.2010 or commercial production whichever is later. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What about the other notifications for the other regions? Maybe they are also being renotified/already notified. We hope to find out soon. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/etariff10_01.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 01/ 2010-CX, Dated : February 6, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sugar – white poison! Duty free Import of Sugar to continue till 31st December, 2010 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> yesterday's <strong>DDT</strong>, we had discussed the sour problems of the Sugar market in India. Now the Government has extended duty free import of sugar till 31.12.2010 – without any quantitative restrictions. If India starts importing sugar, it is certain to increase the sugar prices in the international market. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. Sharad Pawar's NCP has a solution - “One will not die if one does not consume (costly) sugar. People could survive without eating sugar because anyways several people died of diabetes across the country.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So maybe the people can help find a solution to this knotty problem which will hamper the economy for a couple of years by simply avoiding sugar. It is good not only for your health but the health of the national economy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And as to how our respected pink papers understand our tax laws, this is what the great Economic Times reported today, </font></p>
<blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">The deadline expires on Dec. 31, 2010, the official website <a href="http://www.cbec.gov.in">www.cbec.gov.in </a>of the Directorate General of Foreign Trade, an arm of the trade ministry showed. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They believe that the CBEC site belongs to the DGFT! Now we can see IAS aspirants arguing that the DGFT has a website <a href="http://www.cbec.gov.in">www.cbec.gov.in </a>because Economic Times reported so! And it is very difficult to change their opinion! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Coming back to shortage of Sugar, India is likely to import more than 1.5 Million tonnes of sugar - all duty free. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_008.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 8/2010–CUS, Dated : February 8, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Advance Estimates of National Income, 2009-10</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation has released the advance estimates of national income at constant (2004-05) and current prices, for the financial year 2009-10. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399"><em>Gross Domestic Product:</em></font></strong> Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in the year 2009-10 is likely to attain a level of Rs. 44,53,064 crore, as against the Quick Estimates of GDP for the year 2008-09 of Rs. 41,54,973 crore, released on 29 th January 2010. The growth in GDP during 2009-10 is estimated at 7.2 per cent as compared to the growth rate of 6.7 per cent in 2008-09. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399"><em>National Income:</em></font></strong> The net national income (NNI) at factor cost, also known as national income, at 2004-05 prices is likely to be Rs. 39,24,183 crore during 2009-10, as against the previous year's
Quick Estimate of Rs. 36,72,192 crore. In terms of growth rates, the national income is
expected to rise by 6.9 per cent during 2009-10 in comparison to the growth rate of 6.4 per
cent in 2008-09. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><strong><font color="#663399">Per Capita Income:</font></strong></em> The per capita income in real terms (at 2004-05 prices) during 2009-10 is likely to attain a level of Rs. 33,540 as compared to the Quick Estimate for the year 2008-09 of Rs.
31,821. The growth rate in per capita income is estimated at 5.4 per cent during 2009-10, as
against the previous year's estimate of 5.0 per cent. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Commercial coaching and training - institute conducting aircraft - specific type rating training, not covered under exclusion of which issues a certificate recognized by law, nor covered as a vocational training institute - AAR </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a ruling last week, the AAR ruled that the Certificate of Course Completion issued by CFTI cannot said to be a certificate which is recognized by law for the time being in force. The fact that such a certificate may be taken into account by the DGCA - approved Examiner for the purpose of evaluating the experience and content of training, will not make it statutory in character. It is incorrect to claim on behalf of CFTI that a trainee pilot can directly obtain employment after completion of the course. The activity which enables the CPL holder to get the employment is the endorsement on the licence by the DGCA. If a similarity has to be drawn, a motor vehicle driver cannot legally obtain employment as a driver merely after undergoing training in a driving school unless he has obtained a driving licence from the State Transport Authority. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see<strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10363">Breaking News </a></strong></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">Central Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">It is not in dispute that valid grounds existed for invoking proviso to section 11A(1) of CEA, 1944 – payment of entire duty before issuance of Show-cause notice cannot exonerate assessee from payment of equal penalty and interest under the CEA, 1944: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Commissioner (A) while sustaining the demand of duty found that the entire amount of duty which was confirmed against the respondent by the adjudicating authority under the proviso to section 11A(1) of the Central Excise Act had been paid before issuance of the relevant show-cause notice and, therefore, he held that the provisions of section 11AC (Penalty) and section 11AB (interest) were not invokable in the case. </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">Sec 10A - assessee has two units - one is STPI and other is into trading - loss of non-STPI unit cannot be set off against profit of STPI unit; Sec 10A deduction to be granted while computing profits of business itselft and not from gross total income; loss of trading unit can be set off against other incomes: ITAT Special Bench </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is almost three decades when Sec 10A had made its debut in the Income Tax Act in 1981. But the disputes continue to spring up new dimensions and the Tribunal has to set up Special Benches to sort them out. In the latest decision the ITAT has held that the Sec 10A benefits are not exemption but deduction and such deduction is to be allowed while computing profits and gains of the business itself and not from the gross total income. It has also ruled that the business loss of a non-STPI unit cannot be set off against the profit of a STPI unit which alone is eligible for deduction as a undertaking. However, Revenue needs to allow such set off against other incomes of the assessee. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Settlement Commission – application would be maintainable only if it discloses duty liability, which had not been disclosed to proper officer. Appellant cannot be permitted to dissect Settlement Commission's order with a view to accept what is favourable to them and reject what is not. Costs awarded to Government – Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AN</strong> application under Section 127B of the Act would be maintainable only if it discloses duty liability, which had not been disclosed to the proper officer. Obviously, a disclosure contemplated by the said Section is in the nature of voluntary disclosure of the concealed additional customs duty. Having opted to get their customs duty liability settled by the Settlement Commission, under Chapter XIVA of the Act, the appellant cannot be permitted to dissect the Settlement Commission's order with a view to accept what is favourable to them and reject what is not. As observed by Krishna Iyer, J. the recommendation of Wanchoo Committee was a compromise measure of a statutory settlement machinery, where a big evader could make a disclosure, disgorge what the Commission fixes and thus buy quittance for himself and accelerate recovery of taxes in arrears by the State, although less than what may be fixed after long protracted litigation and recovery proceedings. Applicant cannot be permitted to resile from his pleadings in the application at any stage of proceedings before the Settlement Commission or set up a new case before the higher Fora. </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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