TIOL-DDT 1457 · 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 1457 </font><br>
01.10.2010 <br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value of Brass Scrap increased </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has increased the Tariff Value of Brass Scrap from US Dollars 3954 to 4026 per MT. There is no change in the tariff value of other items. </font></p>
<p align="left"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2010/cnt10_086.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 86/2010-CUSTOMS (N.T.) Dated: September 30, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP – Export Policy – Cotton - effective 1st November </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> <em>Notification No. 58/2009-14, dated 14.08.2010</em>, the Export Policy for Cotton, not carded or combed, Cotton waste (including yarn waste and garnetted stock) and Cotton, carded or combed, was made 'free' subject to the condition that the contracts for export of cotton shall be registered with the Textile Commissioner prior to shipment. Clearance of cotton consignments by Customs should be after verifying that the contracts have been registered. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was to come into effect from 1st October, 2010. Now this is effective from 1st November, 2010. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not006.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 06/(RE-2010)/2009-14, Dated: September 30, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ban on Export of Edible Oils - Up to 30.09.2011 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> ban on export of edible oils imposed by Notification No.85 (RE-2007)/2004-2009 dated 17.3.2008 , which was to expire on 30th September 2010. Now it is extended up to 30.09.2011. The DGFT seems to following the CBEC, but seems to be slightly better. Another Day and the ban would have expired! </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not007.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 07/(RE-2010)/2009-14, Dated: September 30, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Ayodhya Plaint </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PLAINT</strong> case is that about 443 years ago Babur built a mosque at Ayodhya and also granted cash grant from royal treasury for maintenance of Babri Mosque. It was damaged in the year 1934 during communal riots and thereafter on 23.12.1949 large crowd of Hindus desecrated the mosque by placing idols inside the mosque. The disputed property was attached under Section 145 Cr.P.C.and thereafter the suit was filed for declaration and for delivery of possession beyond the period of limitation. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Paying the Bill - Business Leaders want cut in Public Spending </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> survey by KPMG International shows that cutting public spending is the most popular method of managing the public debt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Study titled <strong>Paying the Bill</strong> surveyed more than 500 business leaders from all over the world and 7 out of 10 business magnates said that debt should be reduced primarily through cuts in public spending. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Which areas of Public Spending need the cut? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The businessmen suggested public sector pay, followed by defence spending and welfare payments. "However, spending cuts are always hard to implement, especially in democracies and particularly when those having to bear the main impact are the government's own employees." </font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The report states that the broad consensus among respondents is that the corporate tax, consumption tax (GST/VAT) and personal income tax rates in their country should be more-or-less where they are now, or perhaps a bit lower.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">India's External Debt - Balance Of Payments </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the existing practice, the external debt for the quarters ending March and June are compiled and released by the Reserve Bank of India, while the external debt for quarters ending September and December are compiled and released by the Ministry of Finance, Government of India. Accordingly, the data on external debt for the quarter ending June 2010 has been released by the Reserve Bank of India yesterday.</font>
</p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Exports recorded a growth of 37.2 per cent during Q1 of 2010-11, on a year-on- year basis, as against a decline of 31.8 per cent during Q1 of 2009-10. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Imports registered a growth of 35.7 per cent during Q1 of 2010-11 as against a decline of 21.7 per cent during Q1 of 2009-10. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Despite higher growth in exports relative to imports, the trade deficit widened during Q1 of 2010-11. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Private transfer receipts continued to be robust during Q1 of 2010-11. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Net invisibles, however, declined owing to relatively higher invisibles payments driven particularly by higher payments under investment income and also by larger payments on account of travel, transportation, business and financial services. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The higher trade deficit combined with the lower invisibles surplus resulted in the widening of current account deficit during Q1 of 2010-11. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The capital account surplus increased significantly, over the corresponding quarter of last year, mainly due to short-term credit, external commercial borrowings (ECBs), external assistance and banking capital. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Net foreign investment, however, was much lower than the corresponding quarter of last year mainly due to significant moderation in net inflows under foreign institutional investors (FIIs) investments. Net inflows under foreign direct investment (FDI) were also lower during the Q1 of 2010-11. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With capital account surplus being higher than the current account deficit, the overall balance was in surplus at USD 3.7 billion, which resulted in a net accretion to foreign exchange reserves of equivalent amount during the Q1 of 2010-11. </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"> – Monday'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">It's
Service Tax on GTO again - Gujarat High Court in successive judgements
upholds Tribunal's orders on time bar</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>IT</strong> was
only on 14 th September 2010 we carried the Larger Bench decision on
the issue whether the Show Cause Notices issued in 2004 for recovery
of service tax on transportation of goods by road pertaining to the period
from 16.11.1997 to 1.6.1998 were hit by time bar. The Larger Bench emphatically
ruled the issue in favour of revenue by holding that the SCNs were valid</font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"> <em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2010/2010-TIOL-1185-CESTAT-DEL-LB.htm"><strong>2010-TIOL-1185-CESTAT-DEL-LB</strong></a><strong>. </strong></em></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 - Penalty u/s 271(1)(c) - Penalty cannot be imposed in case of inadvertent
mistake on part of assessee: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Tribunal is - </font><font size="2"><font color="#000000" face="Verdana, Arial, Helvetica, sans-serif">Whether
penalty can be levied even in respect of inadvertent mistake.</font></font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">VAT</font></strong></p>
<p align="justify"><font color="#ff0000"><font face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6633" size="2"><b>Delhi
VAT - Merely because the 'religious pictures' are mounted, it cannot
be said that they are no longer religious pictures; an item should
be classified according to its nature and use and not on the basis
of the value of its accessories; principle of <i>ejusdem generis –</i><span style="font-style: normal"> not
an inviolable rule of law: High Court </span></b></font></font></font> </p>
<p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><font size="2"><strong>THE</strong> respondent who is registered vide TIN No. 07440197334 with the Sales Tax
Department is stated to be engaged in the business of importing and selling
the pictures of various deities and religious icons having images of Lord
Krishna, Lord Hanuman, Lord Mahavira, Lord Rama, Lord Vishnu, Maa Durga,
Lord Jesus Christ, Holy Cross, Om, Swastik, etc., on gold plated nickel
foils. The respondent is also engaged in the business of procuring metallic,
acrylic, and wooden frames, nuts and bolts, screws, clips, etc. locally
and selling the foils after putting them into the frames. The case of the
respondent is that the items in question are religious pictures not for
use as calendars and, thus, covered by Entry No.45 of the First Schedule
and consequently exempt from tax.</font></font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See
our columns on Monday for the judgements. </font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong> </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend</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>
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