TIOL-DDT 1333 · 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 1333</font> <br>
07.04.2010 <br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Concessional Rate of Duty Restricted only for Instruments/Appliances required for Medical, Surgical, Dental or Veterinary Use</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has amended <em>Notification 21/2002-Cus</em> restricting applicability of concessional rate of duty only to goods required for medical, surgical, dental or veterinary use by substituting the contents of S. No. 357A thereof. For the purposes of this exemption, the term ‘Goods' refers to medical instruments/ appliances required for medical, surgical, dental or veterinary use only and <strong>does not</strong> refer to parts and spares thereof. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prior to this amendment, S. No. 357A read as follows: </font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
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<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<br>
357A </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9018, <br>
9019, <br>
9020, <br>
9021 or <br>
9022 </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods required for medical, <br>
surgical, dental or veterinary use </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<br>
5% </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<br>
- </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<br>
- </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be noted that S. No. 357B already provides for exemption of parts required for the manufacture of goods at S. No. 357A and accessories of the goods at S. No. 357A, provided the importer follows the procedure set out in the Customs IGCRDMEG Rules, 1996. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The proposed change stipulates that the concessional rate will be applicable only if the goods are instruments/appliances required for medical, surgical, dental or veterinary use and not for parts and spares thereof, whereas hitherto, the concessional rate was applicable for all goods required for medical, surgical, dental or veterinary use and falling under Chapters 9018, 9019, 9020, 9021 or 9022 including spares, parts and accessories thereof. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hereafter parts and accessories required for these instruments/appliances can be imported at concessional rate only by a manufacturer who follows IGCRDMEG Rules, 1996 and not by any importer. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_041.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 41/2010-Customs, Dated: April 01, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CITs/DITs being Members of DRP subordinate to DGIT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has notified that the CITs/DITs being Members of DRPs (listed below), will be subordinate to the Director General of Income Tax (International Taxation). A Notification to this effect was issued in terms of Section 118 of the IT Act, 1961. It may be noted that to facilitate resolution of disputes, CBDT has constituted DRPs across the country in pursuance of Section 144C of the IT Act, 1961. </font></p>
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<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Income-tax Authority </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Income-tax authorities </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Director General of Income tax <br>
(International Taxation) </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioners of Income-tax or Directors of Income-tax being members of the following Dispute Resolution Panels, namely:- </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. DRP, Ahmedabad <br>
2. DRP, Bangalore <br>
3. DRP, Chennai <br>
4. DRP-I, Delhi <br>
5. DRP-II, Delhi <br>
6. DRP, Hyderabad <br>
7. DRP, Kolkata <br>
8. DRP-I, Mumbai <br>
9. DRP-II, Mumbai <br>
10. DRP, Pune </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2010/it10not021.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 21/2010, Dated: March 31, 2010</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ASK Pune Gets ISO Certification </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> reported about ASK Income Tax 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>, 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> and <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10054" target="_blank">TIOL-DDT 1253 08.12.2009</a></strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AAYAKAR Seva Kendra (ASK) 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. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, CBDT (and the IT Department) have received a certification under IS 15700:2005 from the Bureau of Indian Standards for excellence in public delivery system after audit of the Directorate of Organisation and Management Services (DOMS), the nodal agency for implementation of Sevottam scheme and the Aayakar Sewa Kendra (ASK) unit at Pune. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IS 15700:2005 requires a public service organization to demonstrate its ability to consistently provide effective and efficient service that meets customer and applicable legal, statutory and regulatory requirements. It aims to enhance customer satisfaction and to continually improve its service and service delivery process. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This certification signifies changing face of the department, from an exclusively enforcement agency of the government to a service-oriented and citizens-centric organization. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Good Work CBDT. We hope that the other two ASKs also get the ISO certification at the earliest and more ASKs are established across the country for the benefit of taxpayers. Now where does this leave CBEC and its much publicised ACES? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ACES IS FARCE - Central Excise Officer </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACE</strong> frustration is visible in the electronic corridors of all Central Excise Offices – ACE confusion and a total apathy from some officers who are convinced that ACES is not going to work at least this month and they can get hard copy return with attendant “returns”. After a couple of years, assessees are going to be penalised for not filing the April 2010 electronically. Why? Because the Department was not equipped to accept them! Adjudicating Authorities will pass orders that the penal provisions under the law do not exempt the assessee from penalty, just because the Department's systems were not working. CAG will also express concern over the revenue loss in its audit report and may write “there are nearly 1 ,00,000 assessee who were required to filed e –returns failing which they are liable to pay penalty of Rs 5,000/- each for each return not filed electronically. The non-levy of penalty resulted in revenue loss of Rs 600 crores in 2010-11. The Ministry's reply is waited”. </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"><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">Income Tax/Wealth Tax </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Wealth Tax - Two years exemption period of tax on industrial plots held by assessee to be reckoned from date of acquisition of plots, not from date of conversion of agricultural plots to industrial plots: High court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee had purchased agricultural land for the purpose of Industrial use in the years 1991-92 to 1994-95. The permission to change of the land use for industrial purpose was granted by the department of Town and Country Planning, Haryana on 26.7.1995 and 28.7.1995. The assessee claimed exemption of wealth tax in view of explanation to section 2 (ea) of the Act. The said explanation excludes any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him from the definition of asset. The Assessing Authority negatived the claim of the assessee and assessed its wealth tax after adding the value of the land in the assessment order. </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">Dismissal of ROM application without appreciating direction of High Court in proper perspective deplorable: High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee filed this petition under Article 226 of the Constitution praying for quashing of the order passed by CESTAT dismissing the ROM application filed by the assessee. Earlier, while dismissing the ROM application, the Tribunal had not considered the applicability of Circular No. 6/92 dated 29.05.1992<em> vis-à-vis</em> clubbing of clearances for the purpose of determining exemption limit and the ratio of Apex Court 's decision in Supremo Washers (P) Ltd. </font></p>
<p align="justify"><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">DFIA obtained after discharge of export obligation – endorsement of transferability also obtained – if condition of production of certificate regarding non-availment of CENVAT credit is stipulated in respect of DFIA issued prior to 01.04.2a007, appellant would have to pay CVD foregone – Decision of lower authorities stayed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant discharged export obligation and then applied for DFIA. A Duty Free Import Authorization (DFIA) was issued to the appellant authorizing him for duty free import of Hot-Rolled Non-alloy steel sheets/strips/wide coils as well as Zinc and for export of galvanized steel sheets/strips/wide coils. Before they could make any imports, the lower customs authorities insisted on production of certificate from the proper officer of Central Excise regarding non-availment of CENVAT credit on inputs used in the manufacture of the products already exported by them. </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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