TIOL-DDT 1505 · 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 1505</font><br>
10.12.2010 <br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Commercial training or coaching - Computer training was not exempted during period 10th Sept 2004 to 15th June 2005 : Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> <em>Notification No. 9/2003 - Service Tax</em>, commercial training or coaching by a vocational training institute; a computer training institute; and a recreational training institute , was exempted, for the period from 1.7.2003 to 29.2.20014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By <em>Notification No. 24/2004 - Service Tax dated 10.09.2004</em>, vocational training institute and a recreational training institute were exempted - that is computer training institute was not included in the exemption. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By <em>Notification No. 19/2005 - Service Tax effective from 16.06.2005</em>, Notification No. 24/2004 was amended to specifically provide that the notification shall not apply to computer training institutes.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the question is whether ‘computer training institutes' were exempted for the period 10th September 2004 to 15 th June 2005?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal had consistently held that computer training institutes are also vocational training institutes and so eligible for the exemption under<em> Notification No. 24/2004</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But now the Supreme Court has held that <font color="#FF6633"><strong>Notification No. 24/2004 - ST, did not include the concept of "computer training institute" within its ambit and under the aforesaid notification, exemption was only granted to vocational and recreational training institute.</strong></font> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But it was not argued before the Supreme Court that vocational training institute also includes computer training institute. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this important Supreme Court decision today. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <strong><a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11781" target="_blank">Breaking News</a></strong><a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11781">.</a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Those Giving Bribes are More Responsible - CVC Thomas </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YESTERDAY</strong> was International Anti-Corruption Day and the Central Excise Department celebrated it with an IRS probationer getting arrested for accepting a bribe of Rs . 10,000/- and a lady Inspector in Karnataka getting arrested for forging a cheque . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The poor IRS probationer should not have been arrested - after all he is only a probationer; he was only getting trained - he would have gone back to NACEN and discussed his activity. And what is Rs . 10,000/- compared to 1.7 Lakh Crores ? Really a training figure! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday the Rt. Hon'ble CVC, MR. Thomas, speaking at a seminar on ‘Anti Corruption', said that ‘in 70 percent cases those who give bribe are more responsible than those who receive bribe.' </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unfortunately in 99% of the cases, the poor bribe takers are unfairly and unjustly punished, which amounts to discrimination. But why would anyone willingly pay bribe, if his work can be done without paying a bribe? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">VigEye - CVC's new initiative to combat corruption</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CVC yesterday launched VigEye - the Citizens to act as the eyes of the Commission in keeping vigil on public affairs. Citizens are encouraged to stand up against corruption by becoming a ‘VigEye'. Citizens can use mobile phones and web based technologies to lodge complaints/grievances using mobile phones with a software application specially designed to file complaints. This can be done by registering through CVC website or by simply sending an SMS . </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Former CVC Vittal became the first VigEye . </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Alarming 4 percent New Zealanders paid Bribe in last 12 Months! - TI </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>colleague sent me a mail of a report in a New Zealand newspaper that “An “alarming” 4% of New Zealanders admit to having paid a bribe in New Zealand in the last 12 months, according to Transparency International's 2010 Global Corruption Barometer.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I was going through Transparency International's 2010 Global Corruption Barometer and found that 54 percent Indians had admitted to paying a bribe in the last 12 months. If 4 percent is alarming, what is 54 percent? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Corruption Getting Worse - All Over World </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LONG</strong> before Transparency International came into the scene, our own Madam Indira Gandhi had declared, “Corruption is a global phenomenon” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The 2010 Global Corruption Barometer surveys more than 91,000 people in 86 countries and territories. It focuses on petty bribery, perceptions of public institutions and views of whom people trust to combat corruption. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The survey showed that in the past 12 months one in four people paid a bribe to one of nine institutions and services, from health to education to tax authorities. The police are named the most frequent recipient of bribes, according to those surveyed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Almost half of all respondents say they paid bribes to avoid problems with the authorities and a quarter say it was to speed up processes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The biggest number of reported bribery payments in 2010 is in Afghanistan, Cambodia, Cameroon, <font color="#FF6633"><strong>India</strong></font>, Iraq, Liberia, Nigeria, Palestine, Senegal, Sierra Leone and Uganda where more than 50 per cent of people surveyed paid a bribe in the past 12 months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Poorer people are twice as likely to pay bribes for basic services, such as utilities, medical services and education, than wealthier people. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Corruption is a regressive tax. This injustice must be addressed. The marginalised and poor remain the most vulnerable to extortion.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Sadly, few people trust their governments or politicians. Eight out of 10 say political parties are corrupt or extremely corrupt. The civil service and parliament are considered the next most corrupt institutions. </font></p>
</blockquote>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Corruption Three Questions - India Answers</font></strong></p>
<table width="450" align="center" cellpadding="3" cellspacing="0">
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<td valign="top" colspan="2"><p><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">1. In the past three years, how has the level of Corruption changed? </font></strong></p></td>
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<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Decreased </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">10%</font></p></td>
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<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Same </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">16%</font></p></td>
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<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Increased </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">74%</font></p></td>
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<td valign="top" colspan="2"><p><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">2. To What Extent you perceive the following institutions to be Corrupt? (1- Not at all Corrupt; 5- Extremely Corrupt) </font></strong></p></td>
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</table>
<table width="450" align="center" cellpadding="3" cellspacing="0">
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Political Parties:</font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">4.2</font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Parliament </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">4.0</font></p></td>
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<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Police</font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">4.1</font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Business </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">3.1</font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Media </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">3.0</font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Public Officials </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">3.5</font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Judiciary </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">3.1</font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Religious Bodies </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">2.9</font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Military </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">2.8</font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">Education </font></p></td>
<td width="125" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FF00" span="span">3.4</font></p></td>
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<td valign="top" colspan="2"><p><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">3. How would you assess your Government's actions in the fight against corruption?</font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">Ineffective </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">44% </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">Neither </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">31% </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">Effective </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">25% </font></p></td>
</tr>
</table>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">A TI True Story</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AT</strong> the age of 84, Alma set about writing her will. She owned a plot of land that had been in her family for decades, and intended to leave it to her daughter. On checking the deeds, however, it transpired that six square metres of her property officially belonged to someone else. Alma went to court to claim ownership of the plot in its entirety, and was granted it. On checking over the documentation, however, Alma noticed a significant misprint. Instead of the six square <strong>metres</strong> in question, the court had adjudicated upon six square <em><strong>centimetres</strong></em>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Alma promptly returned to court to have the ruling overturned, but was refused. She spent the next year in and out of various courts, all the way to Kazakhstan's Supreme Court. But to no avail. At that point Alma contacted Transparency International (TI) Kazakhstan. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TI Kazakhstan contacted the judges who had been involved in Alma's case, but, bizarrely, each one maintained that the ruling could not be reversed. So TI lawyers turned to the media instead. The case received broad coverage in the press and on national television, prompting court officials to renege on their initial ruling. Alma's deeds were amended, and she was finally able to complete her will. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Alma's case illustrates some of the shortcomings of Kazakhstan's judicial system with great clarity. A system that repeatedly denies an elderly lady what is rightfully hers is in urgent need of reform. </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">Income Tax </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Can an income, declared in belated return, be treated as undisclosed income if belated return is filed after search and seizure operation? - YES, says Delhi High Court </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 income disclosed in belated return, without timely payment of advance tax, can be termed as ‘disclosed income' for the purpose of assessment under chapter XIV-B, if the belated return is filed after the action of search. And the HC's answer is YES. </font></p>
<p align="justify"><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">If skin of hands is skin, skin of other body parts is not skin? Lux Body wash is classifiable under 3402.90 : CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LUX</strong> Body Wash, Skin Care Moisturising Body Wash, and Skin Case Deep Cleaning Body Wash are classifiable under sub-heading 3402.90 - But not under 3307.39 as contended by the revenue - The product being an OSSA product and keeping in view the amended provisions of explanatory notes, such products have to be held as classifiable under Heading 34.02. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Maintenance and repair of pumps after clearance from factory - Not input service for manufacturer - Pre-deposit ordered: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SERVICE</strong> was rendered long after the sale/ clearance of the pumps from the appellant's factory. Between this service and the manufacture of the pumps, the appellant is yet to establish a connection, let alone integral. Prima facie even the High Court's judgement in the case Ultratech Cement Ltd. would not operate in support of the appellant. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice WEEKEND. </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"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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