TIOL-DDT 1344 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1344 </font><br> 23.04.2010 <br> Friday</strong> </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">We Are Ten .... </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXACTLY</strong> a decade ago, a young journalist from Delhi realised the need for speed in dissemination of information relating to taxation matters and thus was born <strong>TIOL</strong>. With hardly any capital other than intellectual brilliance, no infrastructure other than unlimited energy and no workforce other than passion and faith, <strong>TIOL</strong> took its roots and today after ten years, no taxman's day is complete without logging on to <strong>TIOL</strong>. While we do not claim this as one of those success stories of entrepreneurship to find place as a case study in management books, keeping the interest of the netizens alive on a dry subject like taxation for 10 long years is certainly no mean achievement, modesty not withstanding. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had our share of bouquets and brick bats. The highest point of recognition was perhaps the invitation by the Standing Committee of the Indian Parliament to address them on legislative changes in taxation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our sole motto during these ten years was to bring to the desktops of the netizens, the latest developments in tax laws / case laws with speed, accuracy and reasonable clarity. On the proverbial <em>“bridging the gap”</em>, we had tried to ensure that the length of the bridge is the shortest possible. On many occasions, our citations were used by the assessees / revenue within a few hours of our reporting which underlines the need for minimising the time gap in information flow – there were many occasions when we carried Supreme Court judgements the next day (of pronouncement) with our incisive analyses. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On this occasion, we thank all the netizens who supported us during the last ten years and assure you that we will continue to serve you better. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are celebrating this event in Delhi today which will be webcast live. Highest ranking Revenue officers and captains of trade will participate along with the Minister for Corporate Affairs. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Birthday Greetings</font></strong></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> are grateful to a large number of enlightened Netizens who have greeted us with </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some of the comments: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A decade is a landmark for any project and for a really sophisticated field it is an admirable event. Taxindiaonline has been a beacon in the murky waters of Indian taxation and has helped everyone, who has turned to it, to avoid disasters. Wish you and your team all the best for the next decade. </font></p> <p align="right"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice T.N.C. Rangarajan, </font></strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Former Judge, High Courts of Andhra Pradesh & Madras and former Vice – President ITAT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thanks for the lovely invitation for the Tenth anniversary function of your excellent website. I am happy that you completed a decade and entered the second decade. I know that this decade will see greater eminence, utility and authority for your organisation. </font></p> <p align="right"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">I. J. Rao, </font></strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Former Vice President, CESTAT</font> </p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is heartening to note that your Portal has completed 10 years of its service, to millions of readers, interested in matters relating to direct and Indirect Taxes. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Taxindiaonline has done great service in providing the latest information on the judgments pronounced by the Hon'ble Supreme Court, the High Courts and different Benches of the Tribunal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is not easy to keep the interest of the readers unless the quality of reporting and contents are the best. You have achieved this, in spite of the stiff competition. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kindly accept my hearty congratulations on this great achievement. Please convey my hearty congratulations to Mr. Shailendra Kumar also. Wishing you and Taxindiaonline. com a great future. I also see from the card that you have lined up the best in the field to participate on this great occasion. </font></p> <p align="right"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">B.V. KUMAR, </font></strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Advocate and Former CBEC Member </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You are doing great service in disseminating tax related knowledge , information and transparency among the people in India. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I suggest that you set up a research centre to do fundamental research in tax related matters so that our tax administration can be strengthened. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There should be a "watch dog" to bark at the Govt. when they do wrong things. Your great relevance in the country's fiscal scene is therefore unique! Regards. </font></p> <p align="right"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">M.G. Venugopalan, </font></strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Former CBEC Member </font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">The <font size="3">TIOL</font> Experience:</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Your service in time are fabulous, especially the SMS service. for eg: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Yesterday I was sitting with one customer to extend the RFQ cut-off date by another one day, during the course of discussion the importer was very reluctant to do so, I did mention about the anti-dumping duty imposed for CR products, he is not willing to buy my info, and later after I citied the ref, his approach towards me completely changed and extended RFQ submission deadline till this evening. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Had I not recd the SMS, probably we would have missed the bus...Taxindiaonline services redefining 3PL's business...which is the Fact and this needs to be kept on records. <br> <br> I am sure many more customers have such experiences & I wish you all the best to you & team. </font></p> <p align="right"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Joshua Ebenezer </font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Clarification on Broad-banding in IT/ITES Sector SEZs </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COMMERCE</strong> Ministry received a number of requests from Developers in IT/ITES sector to broad-band their product profile by including electronic hardware. In this regard it was clarified by the Ministry that no approval of BoA is required for broad-banding, since IT/ITES includes both Hardware and Software. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In common parlance, ‘broad-banding' means expanding the ‘product profile' of a manufacturer or a service provider. In this regard, it may be noted that Rule 19 of SEZ Rules, 2006 which relates to issuance of letter of approval to a unit stipulates in sub-rule (2) that, a letter of approval issued by the DC shall specify the items of manufacture or particulars of service activity, including trading or warehousing, projected annual export and NFEE for the first five years of operations, limitations, if any on DTA sale of finished goods, by-products and rejects and other terms and conditions, if any, stipulated by the Board or Approval Committee. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The first proviso thereof states that the Approval Committee may also approve proposals for broad-banding, diversification, enhancement of capacity of production, change in the items of manufacture or service activity, if it meets the requirements of Rule 18. The second proviso goes on to state that no such approval shall be granted by the Approval Committee in those cases which fall within the competence of the Board of Approval. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The moot point therefore is that ‘broad-banding' may have to be understood in the context of expanding the product profile of a manufacturer, which in the instant case would be a unit approved to be set up in a SEZ. The SEZ Rules do not make any mention of broad-banding for developers because it is common knowledge that developers only develop requisite infrastructure for software or hardware units or service providers and it is the units which are actually engaged in manufacture of hardware or software or provision of service. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the above clarification speaks of no requirement of an approval from BoA for broad-banding the product profile of Developers in IT/ITES sectors to specifically include electronic hardware. Is the ministry under the impression that Developers are engaged in manufacture of electronic hardware or software? </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=260&filename=sez/sez_instructions/2006/sez09ins052.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SEZ Instruction No. 52, Dated: April 20, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - No refunds for those who filed e - returns? Jamnagar Chamber of Commerce writes to CBDT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Jamnagar Chamber of Commerce and Industry has written to the Chairman, CBDT that assessees who have file electronic returns for the AY 2009-10 are yet to get their refunds. The Chamber submits that those who filed manual returns managed to get their refunds but those who supported the Government's e-policy are at a great disadvantage. The Chamber requested the CBDT Chairman to make a public statement as to when the Department will be able to process these claims and will the assessees smile with a refund cheque in their hands. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Amends DEPB Schedule related to Fish and Fish Products </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended the Schedule of DEPB rates related to Product Group: Fish and fish products group under Product Code 66. The amendment brought in a value cap USD 2.85 per kg for products at S. No. 1 of Product Code 66. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2009/dgft09pn056.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT PUBLIC NOTICE NO. 56/2009-2014, Dated: April 20, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No DEPB Benefit for Cotton Yarn Exports </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended the Schedule of DEPB rates related to Product Group: Textiles under Product Code 89 to stipulate that ‘Cotton yarn including Melange yarn' at S. No. 78 thereof is not eligible for any DEPB benefits with effect from April 21, 2010. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2009/dgft09pn057.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PUBLIC NOTICE NO. 57/2009-2014, Dated: April 21, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Adjudicating Authorities appointed for DRI SCNs </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> appoints adjudicating authorities for show cause notices issued by the Directorate of Revenue Intelligence.</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=24&filename=notification/custom/2010/order_437_20_10.htm" target="_blank">Order Nos. F.No.437/20/2010-Cus.IV, Dated: April 22, 2010</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/order_437_21_01.htm" target="_blank">F.No.437/21/2010-Cus.IV, Dated April 21, 2010</a></font></strong></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"><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">Gujarat High Court reiterates that it is statutory obligation on part of Adjudicating authority to mention about option of availing reduced penalty under Section 11 AC in adjudication orders</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PENALTY</strong> equal to the duty demanded was imposed on the assessee under Sec 11 AC of the Central Excise Act, 1944. On appeal to Commissioner (A), the penalty was reduced from Rs.2,53,856/- to Rs.50,000/-. The Department preferred Appeal against the order of the Appellate Commissioner on reduction of penalty and the Appeal was dismissed by the Tribunal. Against this order of the CESTAT, the revenue is in appeal before the High Court. </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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income tax - sale consideration computed on profit capitalization method, taking last three years profit – Slump Sale – not taxable - ITAT by majority (TM) </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> a difference of opinion between the Members constituting the Division Bench when this appeal originally came up for hearing, following point of difference has been referred to me by Hon'ble President under section 255(4) of the Income Tax Act, 1961. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether or not, on the facts and in the circumstances of the case, the impugned transaction was a 'slump sale' or an 'itemized sale'? </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sales Tax</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sales Tax - not giving material particulars in Form ST 18-A would by itself be mens rea. High Court required to give reasoned order: Supreme Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> competent authority during the course of the enquiry found that the nerolac paint buckets were transferred by stock transfer but the declaration form ST 18A was completely blank. Treating the consignment under the category of incomplete documents in terms of Section 78(2) of the Rajasthan Sales Tax Act, 1994 and forming an opinion that there was an intention to commit evasion of tax, a notice to show cause was issued that why penalty be not imposed. Reply thereto was filed by the owner of goods. The competent authority vide its order dated 23.06.1997 imposed a penalty of Rs.1,24,920/- in terms of Section 78(5) of the Act. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements</font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more<strong> DDT</strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice weekend. </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> </body> </html>