TIOL-DDT 1456 · 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 1456</font><br> 30.09.2010<br> Thursday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exchange Rates for October Notified</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified the Exchange Rates for imported goods and export goods for September 2010. <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_077.htm" target="_blank">Notification No. 77/2010-CUSTOMS (N.T.), dated the 27th August, 2010</a></strong></em>, is superseded. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_085.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notification No. 85/2010-Cus.,(N.T.), Dated: September 28, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Definitive Anti Dumping Duty on DVDs – rare extension before expiry </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> have been requesting the Board to keep track of sunset notifications and we are extremely happy to report that in a rare case of waking up before sunset, the Board has imposed definitive anti dumping duty on Recordable Digital Versatile Disc [DVD] of all kinds originating in, or exported from Malaysia, Thailand and Vietnam. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Provisional ADD was imposed by Notification No. 48/2010 dated 12th April 2010 and is to expire on 11th October 2010. Now a fortnight before the expiry date, the government has imposed definitive ADD on the product for a period of five years from the date of imposition of the provisional anti-dumping duty, that is, the12th April, 2010. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is how Government should work; whether the Anti Dumping Duty is definitive or not, the Law should be definite and clear. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our Hearty Congratulations to the Board. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_098.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 98/2010-Customs, Dated : September 26, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Discs, Tapes, Smart cards etc, exempted from excise </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has exempted Discs, tapes, solid state non volatile storage devices, smart cards etc, fitted inside the CPU of a computer from the whole of the excise duty and those fitted inside a computer will attract 4% duty. Earlier this concession was available to solid state non volatile storage devices falling under 8523 51 00. Now it is extended to all storage devices in 8523. Notification No. 6/2006 dated 1.3.2006 is amended. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2010/etariff10_32.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 32/2010-CX., Dated: September 28, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">STPI has its Sunset - No extension - Revenue Secretary </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Revenue Secretary, Sunil Mitra is not in favour of extending the Income Tax Exemption to STPI beyond 31.03.2011. In a meeting yesterday he said, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ STPI has its sunset. There is no question of extending it. My biggest worry is that the effective rates of tax for STPI and hardware related units are only about 11-12 per cent. They are earning so much money for themselves and the country. We value that, but they should also pay their taxes. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Incomprehensible amounts of profits” are being claimed as deduction. “That can only happen if these are profits earned elsewhere within the Group and brought in for deductions or exemptions. These distortions have become serious. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Our view is that Constitutional amendment is a must for GST. We have regretted our ability to accept either the suggestions of Madhya Pradesh or that of Gujarat that they communicated in a letter or the suggestion of the empowered committee, which he conveyed through a separate letter. Their suggestions do not enable basic features of GST, which require a seamless flow of credit to neutralise the cascading effect of taxes</font></p> </blockquote> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No Aid from US if you don't tax your elite - Hillary Clinton </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>US</strong> Secretary of state, Hillary Clinton, yesterday said that, "Countries that will not tax their elite who expect us to come in and help them serve their people are just not going to get the kind of help from us that historically they may have”. She was obviously referring to Pakistan where the rich pay little or no taxes. Pakistan is one of the principal recipients of US Aid. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Assets of a Junior Officer! </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1.5 kg</strong> gold worth around Rs 28 lakh, 4.6 kg silver worth around Rs 1.4 lakh and Rs 50 lakh worth investment in shares; Rs 3 lakh in cash and fixed deposit receipts for Rs 50,000; Advance of Rs. 70 lakhs paid for a flat. These are the assets of an Inspector of Central Excise found by the CBI after he and his colleagues were recently trapped accepting a bribe of Rs. 15,000/-. This man will spend a few days in jail and even if he is finally acquitted – after twenty years – he will have to go through harrowing experiences. There are <em><strong>rich</strong></em> officers who could not finance their children's education, could not get their daughters married, were socially ostracized, had to do small time jobs after they were dismissed from service after a CBI trap. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Central Excise officer convicted by a CBI Court was ill-treated by a peon of the Court and he told the peon, “I am a Central Government officer – you should respect me.” The peon said, “You are a confirmed convicted criminal and don't deserve any respect”. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is it worth it? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently a Netizen was very critical about DDT's comments and stated in our Message Board, “if the CC and the Commissioner in spite of having a lakh rupees as salary can fall for this temptation, it is not news if the Superintendent or her colleagues follow their masters!”. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is not the question of Sepoy or CC – once you are caught by CBI, your life is ruined and so is your family. And where do you want to follow your boss – to the prison? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the issue really is not corruption; Indians have accepted corruption, greasing the palm, speed money, chai pani, etc, as a way of life – what is irritating is the unfair arrogance of the corrupt and undue harassment before and after bribes. At least you should be polite to your clients! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As long as things go smooth, there is no problem, but once you are caught – the game is over! All Government servants should realise this risk. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Economics of Law - The Ayodhya Judgement </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Lucknow Bench of the Allahabad High Court is to deliver the Ayodhya judgement today. And how much does it cost the Nation? Lakhs of Security personnel have been deployed; hundreds of Air Force Planes will hover over sensitive cities; schools have been closed in Karnataka; Policemen's leave has been cancelled in Maharashtra. Should the tax payer's money be spent like this? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the seventeenth century, India was the richest country in the world and systematically, we became one of the poorest. Today we are a strong economic force in the world and if we can sustain it for another ten years, we can become an economic super power. But if we waste these years in silly disputes and political squabbles, we will go back by a thousand years. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the judgement causes the least economic damage. </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"> – Friday'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">Service Tax</font></strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Maintenance and Repair of Roads – Exemption from 27.7.2009 is only prospective – High Court. </font></strong></p> <div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> notification dated 27.7.2009 cannot be given retrospective effect in the absence of specific and express provision as held by the Supreme Court in the decision reported in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=26&filename=legal/sc/2006/2006-TIOL-146-SC-CUS-LB.htm" target="_blank"><font size="1">2006-TIOL-146-SC-CUS-LB</font></a></strong> (Commissioner of Customs v. Spice Telecom). Thus, the notification dated 27.7.2009 granting exemption from levy of service tax to road maintenance and repairs is to be held only as prospective. It is for the Government to consider whether a notification should be given retrospectively, and if so, up to what period and unless it is so provided, the Tribunal or even the High Courts have no power to grant retrospectivity for a notification in the interpretation process. </font> </div> <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">Sec 119 - Condonation of delay on account of delayed appointment of auditors for statutory audit - CBDT should avoid pedantic approach - taxpayer should not suffer on account of technicalities: Bombay High Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the HC is - Whether delayed appointment of CAs to replace departmental auditors for statutory audit u/s 44AB is good enough reason for condonation of delay u/s 119(2)(b); Whether, for condonation of delay, CBDT should avoid pedantic approach and Whether Revenue should take care that assessee should not suffer on account of technicalities. And the verdict has gone against the Revenue. </font></p> <p><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">Commissioner (Appeals) as well as CESTAT have committed a grave error in reclassifying capital goods and allowing CENVAT Credit – Madras High Court</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENVAT</strong> Credit - Capital goods – Capital goods classified by the supplier manufacturer under Chapter heading 8429 which is excluded from the definition of capital goods as given under Rule 57 Q - The Commissioner (Appeals) and the CESTAT have committed a grave error in reclassifying the goods under Chapter heading 8428 and allowing the credit - Question of law answered in favour of the revenue and against the assessee. </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"><strong>vijaywrite@taxindiaonline.com</strong></a></font></p> </body> </html>