TIOL-DDT 1438 · 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> <div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1438</font><br> 06.09.2010<br> Monday</strong></font></div> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export – Refund of Unutilised Credit – Adhere to time limits - No Mate Receipt – CBEC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is easier for an elephant to pass through the eye of a needle than a refund claim to pass through layers of Central Excise officers. Whatever the Board implores, the field is determined to ensure that no refunds shall be given. Board has repeatedly requested/directed/implored/pleaded with the field officers to be kind enough to consider following Board's instructions and grant refunds. Refund is a policy of the Government and Commissioners are expected to implement the policy of the Government in letter and spirit – but the refrain in the field is 'the Board may say so many things, but you grant refund at your peril'</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Blatant disobedience of the Board is an accepted favourite pastime in the field and every officer knows that he can with impunity disobey the Board and the only remedy for the Board is to issue instructions and more instructions – which are most of the time not read and if at all read, are ignored with contempt. And the poor Board simply smiles in glorious isolation.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently the Board has issued another instruction on this issue.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Trade associations have represented that in a large number of cases involving refund of input credit to manufacturers under Rule 5 of <em>CENVAT Credit</em> Rules, 2004, there is a delay in sanctioning of refund by the Central Excise field formations. It has also been represented that many field formations are insisting on submission of <em><strong>mate receipt</strong></em> as a proof for actual export before granting rebate on export goods. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board clarifies that originally <font color="#FF6633">the <em><strong>mate receipt</strong></em> was prescribed as a document to be filed along with the rebate claim, only to facilitate the exporters who are unable to produce the Transference Copy (TR) of the Shipping Bill from the Port of Shipment within 30 days of the Let Export Order (LEO)</font>. Board directs that the submission of Mate Receipt should not be insisted upon in case the Transference Copy has been received within 30 days.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board reiterates that after preliminary scrutiny is completed, the refund/rebate sanctioning authority is required to sanction 80% of the rebate claimed within 15 days of filing of the claim provided the requirement of <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/exnt06_05.htm" target="_blank">Notification no. 5/2006-C.E.(NT) dated 14.3.2006</a></strong></em> are complied with. The balance amount is to be paid after completion of the verification and other formalities in the prescribed manner within 45 days from the date of filing of the claim. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board requests compliance including those relating to timelines in <em><strong>letter and spirit</strong></em>. Unless the Board proves effectively that it will not tolerate such blatant disobedience, Board's letters and instructions will not have any meaning and worth – they may as well stop issuing instructions which are anyway not followed.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please, please Commissioners – you have a duty to obey the Board!</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And as usual, the Board is shy of making such important communications public. These instructions are contained in a letter from the Board to the Chief Commissioners and Commissioners. We will continue our efforts to bring such communications into the public domain. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/delay_refund_unutilized.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC F.No. 267/72/2008-CX.8 (Pt.III) dated August 04, 2010 </strong></font></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax – Outdoor Catering – Mid-Day Meal Scheme Exempted </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Government has granted exemption from service tax for outdoor catering provided by a Non Government Organisation registered under any Central Act or State Act, under the <strong>Centrally</strong> assisted Mid-Day Meal Scheme. Who will get this exemption? </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2010/stnot10_047.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 47/2010 - Service Tax , Dated: September 03, 2010</font></strong></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Customs – FTP - Exemptions</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SERVED</strong> <strong>From India – Import of Vehicles:</strong> AS per <strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_091.htm" target="_blank">Notification No. 91/2009-Customs,dated the 11th September,2009</a></em></strong>, Exemption under this notification shall not be available for import of vehicles even if such vehicles are freely importable under the Foreign Trade Policy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the vehicles which are in the nature of professional equipment (and are not personal vehicles) for use by the service provider in his regular service business shall be permitted.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Advance Authorisation for Annual Requirement:</strong> Exemption from safeguard duty and anti dumping duty also granted, subject to certain conditions. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_090.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION NO. 90/2010-Cus., Dated: September 01, 2010</strong></font></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Solar Power Generation Project - Exemption </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/etariff10_15.htm" target="_blank">Notification No. 15/2010 – CX dated 27.02.2010</a></strong></em>, <em>all items of machinery, including prime movers, instruments, apparatus and appliances, control gear and transmission equipment and auxiliary equipment (including those required for testing and quality control) and components, required for initial setting up of a solar power generation project or facility</em>, are exempted subject to the condition that a certificate is produced from the Ministry of New and Renewable Energy recommending the grant of this exemption and certifying that the goods are required for initial setting up of a solar power generation project or facility. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Ministry of New and Renewable Energy has issued an office Memo notifying the procedure for issue of the Certificate as per the above notification.</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The manufacturers shall submit their request through project promoted/developer with full details including list of items certified by them and the chartered engineer, and necessary Declaration/Undertaking thereof, as per the format enclosed. The application in triplicate and complete in all respects shall be routed through the <em><strong>concerned</strong></em> State Department/ Designated Agency and submitted to the designated Officer in the MNRE. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ The Applicant shall submit the complete details of equipment machinery, components etc. to be procured for setting up of the power project at one go and not in piece meal. In exceptional cases, the request may be considered in installments. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Ministry will issue the Certificate(s) recommending the grant of Excise Duty exemption after scrutiny, examination and acceptance of the aforesaid Application(s) and certifying that the goods are required for setting up of a solar power generation project or facility. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ The Certificates shall be issued by Dr. A. Raza, Director, for solar photovoltaic projects and by Dr. A. K. Singhal, Director, for solar thermal projects who have been authorized in the Ministry to do so as per the guidelines of the Notification.</font></p> </blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/procedure_prescribed.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No.167/33/2010-CX4:Dated: July 16, 2010 </font></strong></a></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">and </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2010/issue_certificate_exemption.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ministry of New & Renewable Energy OM No. 22/2/2010-11/ST: Dated: June 03, 2010</font></strong></a></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"> – Tuesday's cases</font></strong></font></strong></font></strong></p> <p align="justify"><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">Service Tax</strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Software is goods; whether transaction would amount to sale or service would depend upon individual transaction; Parliament has legislative competency to enact law in respect of tax on service – High Court</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> writ petitions raise an important question as to whether a software would amount to goods and if so, when it is supplied to a customer pursuant to the "End User Licence Agreement" (EULA), the transaction is liable to be treated as sale or service and whether the Parliament has the legislative competency to bring in the amended provisions of Section 65(105)(zzzze) by virtue of the powers under Entry 97 of List I of Schedule VII of the Constitution of India.</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">Capital gains - Effective date of transfer of property - Date of Sale Deed or date of possession - Date of possession, says ITAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Tribunal is - Whether the date of transfer of property is to be taken as the date on which Sale Deed is entered into or the date on which possession is handed over, for the purpose of charging capital gains.</font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Issue cannot be referred to Larger Bench on account of prima facie disagreement with view taken by Tribunal in earlier orders – CESTAT -LB</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CAN</strong> an issue be referred to a Larger Bench on account of prima facie disagreement with the view taken by the Tribunal in the earlier orders?.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This issue was decided by the Larger Bench of the CESTAT recently.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Larger Bench observed, “The provisions of law, as comprised under the Central Excise Act, 1944 read with the provisions of Customs Act, 1962, nowhere disclose any provision regarding the matter for reference to a Larger Bench. Undoubtedly, there are provisions for reference to a third Member in case of disagreement between the two Members of Division Bench on any issue.” </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"> <strong><a href="mailto:vijaywrite@taxindiaonline.com" target="_blank">vijaywrite@taxindiaonline.com</a></strong></font></p> </body> </html>