TIOL-DDT 1490 · 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 1490</font><br> 19.11.2010 <br> Friday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Maleic Anhydride - Withdrawn </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has withdrawn the Anti Dumping Duty on Maleic Anhydride originating in or exported from the People's Republic of China, Chinese Taipei and Indonesia. <strong><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_105.htm" target="_blank">Notification No. 105/2008-Customs, dated 18th September, 2008</a></em></strong>, is rescinded. This Anti Dumping Duty was withdrawn on 1st November 2010 and we are able to bring you this only today as this notification went missing and was made available only yesterday. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_113.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Notification No. 113/2010-Cus., Dated: November 1, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Sodium Formaldehyde Sulphoxylate (SFS) - extended </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Anti Dumping Duty on Sodium Formaldehyde Sulphoxylate (SFS) originating in, or exported from, People's Republic of China imposed vide <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_023.htm" target="_blank">Notification No. 23/2006-Customs, dated 6th March, 2006</a></strong>, was to expire on 10.11.2010</em>. Now the government has extended it till 21st June 2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This Notification is also dated 1st November 2010 - but for reasons best known to the Board and for reasons you can guess, the notification was made available only yesterday. It is unfortunate that the Nation's premier Revenue Board has to resort to these things.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_114.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 114/2010-Cus., Dated: November 1, 2010</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">What is Substantial Compliance? - The Supreme Court Explains</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Five Member Bench of the Supreme Court, yesterday ruled, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“The doctrine of substantial compliance is a judicial invention, equitable in nature, designed to avoid hardship in cases where a party does all that can reasonably expected of it, but failed or faulted in some minor or inconsequent aspects which cannot be described as the "essence" or the "substance" of the requirements. Like the concept of "reasonableness", the acceptance or otherwise of a plea of "substantial compliance" depends upon the facts and circumstances of each case and the purpose and object to be achieved and the context of the prerequisites which are essential to achieve the object and purpose of the rule or the regulation. Such a defence cannot be pleaded if a clear statutory prerequisite which effectuates the object and the purpose of the statute has not been met. Certainly, it means that the Court should determine whether the statute has been followed sufficiently so as to carry out the intent for which the statute was enacted and not a mirror image type of strict compliance. Substantial compliance means "actual compliance in respect to the substance essential to every reasonable objective of the statute" and the court should determine whether the statute has been followed sufficiently so as to carry out the intent of the statute and accomplish the reasonable objectives for which it was passed. Fiscal statute generally seeks to preserve the need to comply strictly with regulatory requirements that are important, especially when a party seeks the benefits of an exemption clause that are important. Substantial compliance of an enactment is insisted, where mandatory and directory requirements are lumped together, for in such a case, if mandatory requirements are complied with, it will be proper to say that the enactment has been substantially complied with notwithstanding the non- compliance of directory requirements. In cases where substantial compliance has been found, there has been actual compliance with the statute, albeit procedurally faulty. The doctrine of substantial compliance seeks to preserve the need to comply strictly with the conditions or requirements that are important to invoke a tax or duty exemption and to forgive non-compliance for either unimportant and tangential requirements or requirements that are so confusingly or incorrectly written that an earnest effort at compliance should be accepted. The test for determining the applicability of the substantial compliance doctrine has been the subject of a myriad of cases and quite often, the critical question to be examined is whether the requirements relate to the "substance" or "essence" of the statute, if so, strict adherence to those requirements is a precondition to give effect to that doctrine. On the other hand, if the requirements are procedural or directory in that they are not of the "essence" of the thing to be done but are given with a view to the orderly conduct of business, they may be fulfilled by substantial, if not strict compliance. In other words, <strong>a mere attempted compliance may not be sufficient, but actual compliance of those factors which are considered as essential.” </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court also held that: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The law is well settled that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the Statute and the object and purpose to be achieved. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>If exemption is available on complying with certain conditions, the conditions have to be complied with.</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In a taxing statute, there is no room for any intendment, that regard must be had to the clear meaning of the words and that the matter should be governed wholly by the language of the notification. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Once an assessee satisfies the eligibility clause, the exemption clause therein may be construed literally.</strong> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ An eligibility criteria, therefore, deserves a strict construction, although construction of a condition thereof may be given a liberal meaning if the same is directory in nature. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Keeping in tune with the <strong>TIOL</strong> tradition, we bring you this important case today. Please see <strong><a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11691" target="_blank">Breaking News</a></strong>.</font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Independent Evaluation Office - IEO - to assess Government's Programmes. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Union Cabinet yesterday approved the establishment of an Independent Evaluation Office (IEO) to undertake impartial and objective assessment of the various public programmes and improve the effectiveness of public interventions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The IEO will be an independent office attached to the Planning Commission under a Governing Board chaired by the Deputy Chairman, Planning Commission. It will be funded by the Planning Commission and will have, as its head, a full-time Director General (DG) in the rank and status of Member, Planning Commission. It will have full functional autonomy to discharge its functions. The IEO will also advise the Planning Commission and the implementing agencies in developing appropriate management systems consistent with the evaluation objectives. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The IEO will strengthen the existing evaluation process by drawing the best resources available from leading research organizations. The findings of the independent evaluation will be reported to the Government of India and also be placed in the public domain. </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">Central Excise</font></strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Invoice raised for engineering and development charges including Central Excise duty and VAT - Credit admissible as said charges are includible in Assessable value of forgings manufactured by job worker – non-receipt of dies from job worker no cause for denial: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants placed a purchase order for processing/manufacture and supply of forgings of valve seat & male/female nuts on job work basis, out of the raw material supplied by the appellants under Rule 4(5)(a) of CCR, 2004. Accordingly, the job worker processed and manufactured the required goods on job work basis and supplied to the appellants. The job worker also issued invoice for engineering and development charges including Central Excise duty and VAT. The said invoice was raised as cost of the goods manufactured on job work basis. </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">Sec 40b(v) - Whether it is necessary that remuneration of partners should not only be authorised by partnership deed but should also be as per clauses of deed and limit prescribed by I-T Act? - Yes, 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, in view of the provisions of Sec 40b(v), remuneration of partners should not only be authorised by the partnership deed but should also be as per the clauses of partnership deed and the prescibed limit under the I-T Act. YES, says the Tribunal </font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns 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> </body> </html>