TIOL-DDT 1412 · 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 align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">TIOL-DDT 1412 </font><br> 29.07.2010 <br> Thursday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST Implementation Group's Report – Certain Issues</strong></font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Organisational Structure under GST - Principles: </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST</strong> Commissionerates to be organized mostly on functional basis and separate Commissionerates for Audit and Anti-evasion in each State, except in smaller States: </font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-Evasion is a dreaded word among assessees not merely because they catch evasion. The Anti Evasion wing of the Commissonerates is a virtual PR department and do host of other activities. The Group is very right in the sense that the outside agencies like DGCEI do a better job than the regular Anti- Evasion Sections. So, instead of naming the separate specialised Commissionerates as Anti-Evasion Commissionerates, and carry the dreaded brand name in GST era, it is suggested to name the Commissionerates differently, something like Tax Intelligence Commissionerates to make the transformation to GST complete without any past glory (sic). Further once separate Commissionerates are proposed for Anti-Evasion (sorry – Intelligence), the regular Commissionerates should not have again Anti-Evasion Sections. This will bring a radical change in the Department. Since only one Anti-Evasion Commissinerate is proposed in a State, the rest of the jurisdiction can have Anti-Evasion divisions under the Anti-Evasion Commissionerates if required. Even the Group suggested that the entire staff of Anti-evasion Commissionerates need not be concentrated at the headquarters but could be placed at different places within a State, depending upon administrative requirements.( Para 4.6.5) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The work of three to four Anti-evasion & Audit Commissionerates may be supervised by officers of the level of Chief Commissioner (separate for Audit and Anti-evasion). </font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">This is obviously aimed at getting a more promotions from the level of Commissioners to Chief Commissioners. The CBEC structure is already a reverse pyramid and there is absolutely no reason or need to have separate Chief Commissioners to Supervise the Specialised Commissionerates. There can be a single Chief Commissioner for the entire State. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We will bring you more comments tomorrow.</font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notifies Exchange Rates for August </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified the rate of exchange of conversion of foreign currency for imported goods and Export Goods effective from 1st August 2010. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_067.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 67/2010-CUSTOMS (N.T.), Dated : July 28, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Exemption for INDIPEX 2011 </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NDIPEX</strong> 2011 World Philatelic Exhibition is to be held from 12th to 18th February, 2011, at New Delhi. It is being organized by India Posts, Government of India, in association with the Philatelic Congress of India. The Federation International Philatelic (FIP) is extending its patronage, and the Federation of Inter-Asian Philately (FIAP) its auspices, for conduct of the exhibition. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This exhibition aims to bring the international philatelic community together to celebrate philately, and will provide a unique platform for interaction between all the philatelic stake-holders, viz. the collectors, the dealers, the philatelic journalists and publishers, the designers and security printers, and the postal administrations who issue stamps and stationery. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This also marks the centenary of the first official airmail flight which took place in India on 18th February 1911. And, by showcasing the best philatelic collections, INDIPEX 2011 looks to attract many newcomers to explore the fascinating world of philately. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this era of emails and sms, the post still carries a fragrance. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Customs Department has come forward to exempt a large number of items related to Philately, from the whole of the Customs Duty and Additional Duty subject to the condition that an officer not below the rank of a Deputy Secretary to the Government of India in the Department of Posts in the Ministry of Communications certifies that the said goods are required for display or sale in the exhibition. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_078.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 78/2010-Cus., Dated: July 27, 2010</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Stamps of India </font></strong></p> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/stamp1.jpg" alt="Legal Corner Icon" width="400" height="430" hspace="5" border="0" align="center"></font></strong></p> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is supposed to be the FIRST Stamp of India released in 1854. </font></strong></p> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/stamp2.jpg" alt="Legal Corner Icon" width="510" height="310" hspace="5" border="0" align="center"></font></strong></p> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the First Stamp of Independent India </font></strong></p> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/stamp3.jpg" alt="Legal Corner Icon" width="310" height="510" hspace="5" border="0" align="center"></font></strong></p> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Second Stamp also released on 15 August 1947. </font></strong></p> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/stamp4.jpg" alt="Legal Corner Icon" width="319" height="473" hspace="5" border="0" align="center"></font></strong></p> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And this is the latest stamp released on 12.7.2010 depicting Puri Rath Yatra </font></strong></p> <p align="center"><strong><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></strong></p> <p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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">Central Excise </strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cenvat Credit is not deniable on inputs written off as obsolete in financial books of accounts - Rule 3(5B) inserted in CCR, 2004 by Notfn. 26/2007-CE(N.T) dated 11.05.2007 does not have retrospective operation and cannot be pressed into service for period 1996 to 2002 - Pre-deposit waived and Stay granted: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> demand is for the period January 1996 to September 2002. During the above period, the appellant's manufacturing units at Pune had followed the practice of writing-off obsolete inputs from their financial books of account under what are called “obsolescence provisions” for purposes of the Income Tax Act. The stock of such written-off inputs was maintained in their excise accounts. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner, Central Excise, Pune confirmed the demand and imposed penalties and hence the appellant is before the CESTAT. </font></p> <p><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">Penalty u/s 271(1)(c) - Can penalty be levied for mere failure to substantiate claims made and explanation offered - Partly YES, says ITAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LEVYING</strong> penalty is a common event in the Income Tax Department but sustaining the same is a rare one! The issue in this case is - Whether penalty can be levied for mere failure to substantiate the claims made and explanation offered. And the answer is partly yes. </font></p> <p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax</strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Pune District Security Guards Board constituted under Maharashtra Private Security Guards (Regulation of Employment & Welfare) Act, 1981 is prima facie not coming within definition of ‘security agency' in as much as it does not appear to be a commercial concern - Stay granted: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</strong> the year 1980-81, the Maharashtra Rajya Suraksha Rakshak and General Kamgar Union had represented to Government that about 70,000 persons are working as Security Guards in various Factories and Establishments in Greater Bombay and Thane District. These Guards are provided by Security Agencies operating in these Areas. The service conditions, however, of these Security Guards are not satisfactory and these Security Guards are being exploited in as much as that their services depend merely on the whim and sweet will of the Agencies. Most of the Security Guards receive very small portion of the amount recovered from the Employers as their wages and the balance is pocketed by the Agencies.</font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements</font></strong></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p> <p><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> </body> </html>