TIOL-DDT 1325 · the untouched capture
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<strong><font color="#663399" size="3">TIOL-DDT 1325</font><br>
25.03.2010<br>
Thursday </strong></font> </div>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Electronic
Excise – Procedure for electronic filing of Excise and ST returns and
for electronic payment of excise duty and service tax – CBEC issues instructions
</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DG
(Systems)</strong> has prepared comprehensive instructions outlining the procedure
for electronic filing of excise and service tax returns and electronic payment
of taxes under ACES. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
said instructions outline the registration process for new assessees, existing
assessees, non – assessees and for Large Taxpayers Unit assessees, steps
for preparing and filing of return, using of XML Schema for filing dealers'
return, procedure for obtaining acknowledgement of E-filed return, procedure
for E-payment etc. It is requested to sensitise concerned officers and trade
and industry regarding the instructions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
a large number of taxpayers would be required to file Excise and Service Tax
returns and to pay the taxes electronically, Board has requested the field that
trade and industry may be provided all assistance so as to help them in adopting
the new procedure. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According
to the Board, the assessee has the following benefits:-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
Reduce Physical Interface with the Department <strong>(<font color="#FF6633">only
if they do not insist on filing manual returns</font>)</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Save Time </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
Reduce Paper Work </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
Online Registration and Amendment of Registration Details </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
Electronic filing of all documents such as applications for registration,
returns [On-line and off-line downloadable versions of ER 1,2,3,4,5,6, Dealer
Return, and ST3], claims, permissions and intimations; provisional assessment
request, export-related documents, refund request </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
System-generated E-Acknowledgement </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.
Online tracking of the status of selected documents </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.
Online view facility to see selected documents </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.
Internal messaging system on business-related matters </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
is the Board ready; are the Commissioners and Ranges ready?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
says that the major processes of Central Excise and Service Tax - registration,
returns, accounting, refunds, dispute resolution, audit, provisional assessment,
exports, claims, intimations and permissions, are automated. They are divided
into the following modules: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
Access Control of Users (ACL) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Registration (REGN): Registration of assessees of Central Excise & Service
Tax including on-line amendment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
Returns (RET): Electronic filing of Central Excise & Service Tax Returns
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
CLI: Electronic filing of claims, intimations and permissions by assessees
and their processing by the departmental officers </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
Refund (REF): Electronic filing of Refund Claims and their processing </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
Provisional Assessment (PRA): Electronic filing of request for provisional
assessment and its processing by the departmental officers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.
Assessee Running Account </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.
Dispute Settlement Resolution (DSR): Show Cause Notices, Personal Hearing
Memos, Adjudication Orders, Appellate and related processes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.
Audit Module </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.
Export Module for processing export related documents </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is
it going to be a big April joke? The Board seems to be on the top floor and
the Range on the ground floor with no lift or staircase between the two.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/excircular919.htm" target="_blank">CBEC
Circular No. 919/09/2010-CX, Dated : March 23, 2010</a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Write
Off of irrecoverable demands - raising of monetary ceiling – CBDT Instructions
</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Delegation of Financial Power Rules S.O. No.1469 dated 26th May, 1990, the
Chief Commissioner of Income Tax is competent to recommend write off of irrecoverable
demand up to Rs. 15 lakh subject to the report to the next higher authority.
The Competent Authority has further raised the monetary ceilings in each such
case from <strong>Rs.15 lakh to Rs.25 lakh</strong> for Chief Commissioner of
Income Tax subject to report to the next higher authority.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is reiterated that writing off of irrecoverable dues of revenue would not lead
to release or waiver by the Government of its claim but would be only a write
off in the Department’s books. The Government shall have the right at
any time during the next 30 years, counting from the date of claim to recover
the amount by a Civil Suit, if it appears to the Government that the defaulter
has got some assets or means to pay. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Board wants these instructions to be brought to the notice of all officers in
the field for strict compliance.</font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2010/instruct1002.htm" target="_blank">CBDT
INSTRUCTION NO 2/2010, Dated: March 19, 2010</a></font></strong></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TDS
- mobilization and demobilization costs reimbursed to foreign company- Assessee
not liable to deduct tax at source under Section 195(1) - Samsung Electronic
not followed – Delhi High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TDS</strong> on payments to foreign companies has been a bone of contention of late –
with the sensational Karnataka High Court judgement in the <strong>Samsung Electronic
case - </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=38&filename=legal/hc/2009/2009-TIOL-629-HC-KAR-IT.htm" target="_blank">2009-TIOL-629-HC-KAR-IT</a></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While
the Samsung case is in appeal before the Supreme Court, the Delhi High Court
in a recent judgement was not exactly in agreement with the Karnataka High Court.
The Delhi High Court held that:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
judgment of the Supreme Court is not to be read as a statute. We have to cull
out the ratio of the judgment viz. what it decides and not logically follows
from it.</strong> Plain language of Section 195 of the Act shows that the tax
at source is to be deducted on the “sum chargeable under the provisions
of the Act”. <strong>One can, therefore, reasonably say that the obligation
to deduct tax at source is attracted only when the payment is chargeable to
tax in India.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
bring you the High Court order today – please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10629" target="_blank">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"> – Friday's cases</font></strong></font></strong></font></p>
<p align="justify"><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"></font><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 capital goods – assessment of the goods at the supplier’s
end under Chapter Heading 73.08 cannot be reopened by the recipient of the goods
– Credit prima facie not admissible – plea that the credit is admissible
as input is also not admissible – CESTAT orders pre-deposit. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
applicant is engaged in providing the service of development, customisation
and implementation of computer software and availed credit on capital goods,
i.e., FACT - 10 Meter RF Shielded in EMC Chamber. The said equipment was classified
under Chapter 73 by the supplier. Since Chapter 73 is not covered under the
definition of capital goods, show cause notice was issued to the appellants
demanding the credit availed. The demand was confirmed with interest and penalty
in adjudication. </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>Consistency
is undoubtedly a sound principle but it cannot be in violation of the express
provision of the Act. Valuation fixed by Municipal authorities is quite relevant
for the determination of the ALV. When the Assessing Officer, who is both, an
adjudicator as well as an investigator, is acting in a quasi judicial capacity,
it is his perception which counts and not that of the CIT sitting in revisionary
proceedings – ITAT (third Member)</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is expressly provided in sec.23(1) that the ALV of any property shall be deemed
to be the sum for which the property might reasonably be expected to let from
year to year. However, if the property is let out, then the actual rent received
or receivable shall be the ALV if it is in excess of the sum referred to earlier.
It is also trite that the valuation fixed by Municipal authorities is quite
relevant for the determination of the ALV. </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>Failure
to provide extension of time for export of garments due to fault of AEPC - Petitioner
cannot be made to suffer for fault of AEPC – Balance EMD payable @ 12%
interest per annum – High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE
petitioner, an exporter of ready made garments, was issued an export license
for export of 6000 dresses to USA in the year 1991 and the goods were to be
exported from Madras Port. Due to change in fabric from cotton to rayon, the
petitioner applied for a grant of extension of time to execute the order after
depositing 30% of the amount as bank guarantee with AEPC. An extension was granted
till May 10, 1991. </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="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></p>
<p align="justify"><font color="#FF6633" 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" target="_blank">vijaywrite@taxindiaonline.com</a></font></p>
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