TIOL-DDT 1386 · 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 1386 </font><br>
23.06.2010<br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Customs Duty (CVD) on import of Readymade Garments – CBEC Clarifies</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> vide <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/cuscir08_17.htm" target="_blank">Circular No. 17/2008-Cus dated 21-10-2008</a></strong></em> clarified that for the purpose of uniformity in assessment, the additional duty of Customs (CVD) is chargeable on import of readymade garments on the basis of transaction value i.e. C.I.F. price plus landing charges and not on the basis of R.S.P./ M.R.P. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, w.e.f 19-08-2009 a proviso has been inserted in Section 3(2) of the Customs Tariff Act, 1975 vide Section 93 of the Finance Act 2009 which reads as “Provided further that in the case of an article imported into India, where the Central Government has fixed a tariff value for the like article produced or manufactured in India under sub-section (2) of Section 3 of the Central Excise Act, 1944, the value of the imported article shall be deemed to be such tariff value. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thus Board's <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2008/cuscir08_17.htm" target="_blank">Circular No. 17/2008 dated 21.10.2008</a></strong></em> has lost its relevance w.e.f 19.08.2009. But then there used to be a belief that Board Circulars are binding – though the lower level officers have scant respect for them. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anyway, now the Board has clarified that for the purpose of uniformity in assessment , the additional duty of Customs (CVD) is chargeable on import of such readymade garments on the basis of their R.S.P./ M.R.P. But isn't it the legal position; is there any other way the assessment can be done and should the Board clarify the position for the purpose of uniformity in assessment? And this position is clarified almost a year after the Law was amended. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will the importers be now stuck with SCNs alleging fraud and suppression for the officers following the Board Circular?. Why was this issue not clarified in the TRU DO letter immediately after the Budget? Maybe the earlier circular was issued by another section in the Board and TRU was not aware of the Circular. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2010/cuscir10_012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC CIRCULAR NO. 12/2010-Cus., Dated: June 21, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">IRS Officer's Book on World Heritage Sites of Uttarakhand </font></strong></p>
<p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/unesco_wshop.jpg" alt="Legal Corner Icon" width="310" height="206" hspace="5" border="0" align="center"></p>
<p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/aron.jpg" alt="Legal Corner Icon" width="384" height="340" hspace="5" border="0" align="center"></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> IRS really has certain pockets of excellence of the highest order. Deepankar Aron, a Director in the CBEC, recently had his Coffee Table Book – World Heritage Sites of Uttarakhand, released by two ministers in Dehradun recently. But the real launch was in last week's conference of Chief Commissioners in Delhi, where the CBEC Chairman presented a copy of the book to the FM and the FM was all praise for the young officer's Himalayan effort. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#FF6633"><strong>An eternal spring, </strong></font></em></font></p>
<p align="center"><strong><font color="#FF6633"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A riot of colours, </font></em></font></strong></p>
<p align="center"><strong><font color="#FF6633"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A profusion of flowering, </font></em></font></strong></p>
<p align="center"><strong><font color="#FF6633"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An eternal love affair </font></em></font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That's what he has captured in his 200 page book with 300 photographs, most of which were shot by Aron himself. An avid photographer and travel writer, Aron had done a solo photo exhibition on “Uttaranchal – A Natural Treasure to Explore”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A wanderer on the hills, Aron had done the Manasarovar yatra as the liaison officer appointed by the Government of India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not that this nature lover was not studious – he has a B.Tech and M.Tech from, IIT Delhi and was the youngest in his batch in IRS. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We wish Deepankar Aron more trysts with NATURE.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT's new Citizens Charter 2010 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> process of drafting a new Vision document – <strong>Vision 2020</strong> is nearing completion. An important component of the Vision 2020 document is the <strong>Citizens' Charter 2010</strong>. As a part of Vision 2020, the Citizens' Charter 2007 was revisited by a Working Group constituted by the CBDT. A massive exercise was undertaken of conducting interactive sessions with members of trade associations, bodies of industry, chamber of commerce, associations of Chartered Accountants/Advocates, IRS Officers associations, employees and staff associations etc. This had thrown up a plethora of issues relating to the charter and also to the wider Vision 2020. After incorporating the feedback from all stakeholders, the Working Group prepared a draft Citizens' Charter 2010. The draft Citizens' Charter was further modified incorporating the suggestions of the Drafting Committee. Since the Citizens' Charter is a set of commitments to be adhered to by the entire organization, the final draft Citizens' Charter 2010 is being brought before all the stakeholders for their comments/ feedback latest by 30th June, 2010 through e-mail at <a href="mailto:itd.sevottam@gmail.com"><strong>itd.sevottam@gmail.com</strong></a>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Citizens' Charter of the Income Tax Department is the declaration of the mission, vision, values and standards of delivery of various services to achieve excellence in service delivery to its taxpayers. </font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With a view to achieve continual improvement, the charter will be reviewed at least once in three years. </font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Highlights of the 2010 Charter: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Our Vision:</font></strong> To become a world-class organization partnering in nation building, through effective administration of the tax laws and excellent public service delivery mechanism, with state of the art technological capabilities and proficient human capital. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Our Mission:</font></strong> To promote voluntary compliance by keeping cost of compliance low and making compliance easy To enforce the tax laws with fairness and integrity To provide standardized quality service by streamlining processes </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To create a workforce striving for professional excellence sustained by an optimum infrastructure and technical knowhow To formulate and implement tax policies effectively </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We believe: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. in transparency and fairness </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. in encouraging and assisting tax payers in voluntary compliance of tax laws </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c. in providing effective deterrence to tax evasion which works against the interests of the nation and demotivates law abiding citizens </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d. in service delivery through all channels of communication including web/internet based technology </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e. in effective monitoring of charter promises through Central Action Plan </font></p>
</blockquote>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">We Aspire: </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to educate tax payers and general public on tax laws and changes made therein from time to time and importance of voluntary compliance of tax laws by providing relevant information through different medias and by organizing awareness programmes at periodic intervals. </font></p>
</blockquote>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">For better services, we expect our taxpayers: </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to obtain only one PAN/TAN and quote the same correctly in all returns, challans and correspondence. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to file all statutory returns, completely and correctly well within due dates in proper jurisdiction. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to pay due taxes well in time.- to quote Bank Account Number, MICR Code and other Bank details in returns of income to facilitate issue of refunds. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to be fair and prompt in complying with all proceedings under Direct Taxes Statute. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to intimate change of address to the Assessing Officer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to quote PAN of all deductees in TDS Returns </font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Does the Charter really mean anything in any Department? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/citizens_charter_new.pdf"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Click here for the full Draft Charter 2010. </strong></font></a></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 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">Furnace Oil used in manufacture of exempted steam – Cenvat Credit - No suppression can be alleged when judicial decisions were in favour of assessee: High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the light of the findings recorded by the Tribunal to the effect that at the relevant time there was a decision of the Larger Bench of the Tribunal as well as of this High Court in favour of the respondent, which gets reinforced by the fact that Commissioner (Appeals) had decided in favour of the respondent on merits, it appears that there was an ambiguity as regards the applicability of the relevant Rules. </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">Income
tax - bad debt - merely because a criminal complaint for recovery of debt
has been pending, it does not mean that debt continues to be good - Revenue's
appeal dismissed: Gujarat HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CLAIMING </strong>deduction
for bad debt continues to be a hot dispute despite recent amendments in the
I-T Act. The issue before the High Court is<strong> - </strong><font color="#000000">Whether
the ITAT is justified in reversing the order of the AO wherein the AO has
declined to allow write-off of the debt on the ground that the matter has
been pending before the Metropolitan Magistrate and it cannot be said that
the debt has become bad. And the verdict has gone against the Revenue.</font></font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service
Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Interior works such as pest control, demolition & dismantling, masonry work, wall preparation - now taxed under 'Commercial or industrial construction service', cannot be taxed under ‘Interior Decorator Service' during earlier period: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellants were undertaking interior works such as pest control, demolition & dismantling, masonry work, wall preparation viz. cement, plaster, POP planning; flooring & cladding, works like wall paneling, false ceiling, interior furnishing, partitioning of Banks, Financial Institutions and other firms, etc. It was noticed by the lower authority that the appellants have provided these services to their clients, mostly software companies, Banks, etc., but were not discharging the service tax liability on such services. The lower authorities felt that the services rendered by the appellants fall under the category of ‘Interior Decorator Service' as defined under Section 65(59) of the Finance Act, 1994. Coming to such a conclusion, the adjudicating authority confirmed the demands and imposed penalties and sought recovery of the same. </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><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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