TIOL-DDT 1475 · 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 1475 </font><br> 27.10.2010 <br> Wednesday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax Return – ACES Does Recognise 100 Crores! </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DAY</strong> before yesterday, some Netizens informed us that they were not able to file their electronic returns because the ACES does not accept more than nine digits – that is the maximum amount that can be shown in the electronic return is 99,99,99,999. If your turnover is over 100 Crores, you are simply out of ACES and electronic filing, because the ACES does not know a figure of 100 Crores and above! <strong>DDT</strong> contacted several Service Tax officers and they all wanted to know who the assessee with a hundred Crores was. Many of the officers were not aware of the problem and some who were, had no clue as to what could be the possible solution. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Netizens who informed us were keen that we do not give much publicity to it as they would happily file manual returns citing this reason and all concerned including Service Tax officers would be happy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday<strong> DDT</strong> spoke to Hare Ram, ADG, Systems in Chennai. Even before I could explain the problem, he informed me that the problem has been rectified and the assessees can now test it – he said it works online and offline. There should be no problem on offline because that is a document in my computer and that will not have any restrictions on the number of digits. Anyway he assures that the problem has been solved. The Netizen who informed me did not dare to test it – he had already filed his return manually. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now does a similar problem exist in the ER-1 return for excise and has this issue been addressed? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anyway what is worth noting is that a problem which has been brought to the notice of the Directorate of Systems, has been rectified within a day and the ADG is totally aware of the issue. Our Electronic Expert tells me that it is not a big job and hardly takes a minute to correct. True, it may take only a minute to correct, but it can take ages to take a decision to make a correction as we find with many of our notifications. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From his talk, the ADG appeared to me like a refined customer relations executive of a consumer product company. He was very polite and he genuinely wanted feedback. He said he welcomes complaints, of any tenor and would try to solve the problems. He said that many problems are due to broadband connections, the assessee's computer, etc,. And the Department would be blamed for all these over which he had no control. But he was still ready to address all issues to ensure that the client is satisfied. He said that all complaints received either through emails or telephone calls are recorded and solutions found. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Here was a Commissioner talking of Computers, network, broadband, clients and solving problems. Not everything is lost in the Department – there is still hope. Only we need more such officers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, if you have any complaint about ACES, please lodge a complaint and most probably the problem will be solved. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally the DG, Systems should do something immediately to make the ACES more easily accessible. A Systems Officer tells us that there is no complaint from any assessee in Jhumri Taliya, but there are complaints from assessees in Chennai or Delhi. This may be a connectivity problem, but it is a problem and you have to solve it. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">SATYAM Ramalinga Raju Back in Jail! </font></strong></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/raju_2.jpg" alt="Legal Corner Icon" width="256" height="174" hspace="5" border="0" align="center"></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HE</strong> founded one of the most successful IT companies in the world; provided employment to over 50,000 talented youngsters; shared the stage with US President Bill Clinton and spent nearly two years in Jail. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/raju.jpg" alt="Legal Corner Icon" width="216" height="176" hspace="5" border="0" align="center"></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Raju is said to have cooked up his accounts and and now there is a case 7000 Crores missing – and nobody accuses Ramalinga Raju of having swallowed the 7000 Crores. Raju is originally a rich man owning hundreds of acres of land and even without SATYAM, he could have had a comfortable living. And today barely two months after the AP High Court granted him bail, Raju finds himself back in jail after the Supreme Court has cancelled the bail. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If Ramalinga Raju has to be in jail, half our businessmen and maybe 99 percent of our politicians should be keeping him company, but they are all out having a nice time while our poor rich Raju has to go back to jail. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Poor Suffer Most From Corruption - Transparency International </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACCORDING</strong> to Transparency International's Corruption Perception Index (CPI) for 2010, India this year is ranked at 87 among 178 countries, down three spots from 84 in 2009. The Corruption in the Common Wealth Games, seems to have contributed to our fall. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Report says that “ Yet it is the poor who suffer the most from corruption ; In India, for instance, a 1000-rupee bribe to get a new drinking-water connection effectively excludes poor people from access to drinking water.” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Somalia is considered the world's most corrupt country with a score of 1.1 followed by Myanmar and Afghanistan, while Denmark, New Zealand and Singapore are perceived to be the least corrupt with scores of 9.3. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">China is at the 78th position - it is less corrupt than India. Pakistan is shown as just a notch worse off than India, the US ranks fairly high at 22nd and is perceived to have relatively low levels of corruption. In Asia, Bhutan is perceived to be the least corrupt country. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India's ranking has consistently dipped since 2006 when it was ranked 70 among 163 countries. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A former CVC had remarked that the only way to improve the situation was for India to bribe the Transparency International for a better ranking!</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></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"> – Thursday'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">Customs</font></strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of Car by carpenter - confiscation by Customs - Release by CESTAT - The view taken by Tribunal is absolutely perverse : High Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Tribunal held that it was not necessary for the importer to prove his ownership or title to the vehicle during his stay abroad and that he need not be the owner of the vehicle for next two years after importation thereof during his stay in India. The view taken by the Tribunal is absolutely perverse. The Tribunal could not have taken such a perverse view running contrary to the public policy leading to the issuance of the public notice. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commonsense or Law? Tribunal ought to have used its common sense that a person working as carpenter/labourer in Dubai could not have owned or imported vehicle, that too from Japan especially, in the light of his statement recorded under section 108 of the Act; wherein he has clearly admitted that his passport was misused by someone. It was clearly an attempt on the part of the Tribunal to adopt perverse approach. </font></p> <p><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">Whether profits from sale of shares held as long-term investments are to be taxed as business income or capital gains? - It is capital gain, rules Delhi HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the High Court is - Whether profits from sale of shares held as long-term investments by an investment and finance company are to be taxed as business income or capital gains. And the High Court decision rules that it is capital gains. </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">When department has alleged that CENVAT credit has been taken wrongly, action cannot be termed as willful action of assessee - In that situation, intention to evade duty is absent – Penalty u/s 11AC of the CEA, 1944 not imposable: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> is no doubt but to impose penalty Under Section 11AC, it is to be seen that how the payment of duty is evaded viz. by fraud, by collusion, by willful misstatement, by wilful suppression of facts or in contravention of provisions of the Act or Rules thereunder with intent to evade duty. From the facts of this case, it is clear that there was no fraud, no collusion, no willful misstatement. The allegation is only that they have suppressed the facts and contravened the provisions of law. From the fact of the case no where it is coming out that there is wilful suppression of facts as in the show-cause notice, in para 9 itself it is mentioned that "the said M/s D'damas had taken CENVAT credit in respect of input services wrongly without taking reasonable steps to ensure that appropriate duty on the input services had been paid." </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>