TIOL-DDT 1517 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1517</font> <br>
29.12.2010 <br>
Wednesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty - Bus and Truck Radial Tyres - China and Thailand - Review </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Anti Dumping Duty on import of Bus and Truck Radial Tyresoriginating in, or exported from the People's Republic of China and Thailand was imposed by Notification No. 12/2010 - Cus dated 19.02.2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now M/s. Shandong Hawk International Rubber Industry Company Limited, (producer/exporter) have requested for review in terms of rule 22 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 in respect of exports made by them. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Government has ordered provisional assessment in respect of the above parties. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_129.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 129/2010-Cus., Dated: December 23, 2010 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Air Tickets Imported by Foreign Airlines Exempted</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has exempted Printed ticket stocks, Airway bills, Any printed material which bears the insignia of the importing airline printed thereon including baggage tags and Publicity material for distribution free of charge , imported by specified foreign airlines from the whole of the Customs Duty including CVD.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_130.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 130/2010-Cus., Dated: December 23, 2010 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Import from Singapore - Effective Rates of Duty </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has reduced the effective rates of Customs duties for 532 items. Notification No. 10/2008- Cus dated 15.01.2008 is amended. The note attached to the amending notification states that the Notification No. 10/2008 was last amended by Notification No. 150/2009 dated 31 st December <strong>2010</strong>. This was actually 2009. Nothing wrong; a small mistake, but that goes to prove that there is absolutely no second reading in the Board. The Under Secretary who writes the notification is the Final Authority! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nobody else reads it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Whenever <strong>DDT </strong> finds fault with such minor mistakes, sincere Departmental officers pounce upon us, asking whether <strong>TIOL </strong> does not make mistakes. While we are flattered at being compared with the mighty government, it is submitted that even if <strong>TIOL </strong> makes mistakes, Government cannot and should not make mistakes and all that we are suggesting is a second reading and appointment of a proof reader. The other day, a colleague suggested that we should offer to do proof reading for the Board. But I told him that our proof reading is as good as the Board's - and this is no compliment!. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2010/ctariff10_131.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 131/2010-Cus., Dated: December 24, 2010 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax - Harbhajan Singh and Yuvraj Singhto face prosecution - reports NDTV </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NDTV</strong> reported today morning that Cricketers Harbhajan Singh and Yuvraj Singh could face prosecution for "non-payment" of service tax to the tune of Crores of rupees. According to NDTV, P K Shirohi, Commissioner (Excise and Customs), told that Harbhajan has been asked to cough up Rs. 2.5 crore to Rs. 3 crore in service tax and Yuvi has been asked to pay Rs. 1.5 crore. Replying to a question, Shirohi said "yes, they (Harbhajan and Yuvi) can be prosecuted". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This report shows how callous our prestigious national media is while reporting tax matters. Some other channel had reported it and NDTV could not lag behind. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">First of all Mr. Shirohi is not the Commissioner, but Chief Commissioner and he could not have certainly made the statement that the cricketers can be prosecuted for non-payment of Service Tax. He should surely know that there is no prosecution in Service Tax. The only problem is that the wise men in NDTV do not know that there is no prosecution in Service Tax. And they go to town with a prominent news that the cricketers can be prosecuted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the unfortunate state of affairs when there is an unholy urgency to <strong> <font color="#FF6633">break</font> </strong> news. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But why should the Department rush to the Press, whenever they <strong>detect </strong> a case. We understand that not even a Show Cause Notice is issued to any of the two cricketers and already NDTV is talking of prosecution! And tracing their source to a Chief Commissioner and calling him a Commissioner! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Publication of names of alleged offenders tarnish their image, especially when they are international celebrities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While it is a daily struggle for us to get the public Notifications and Circulars of the Board, it is unfortunate that mere allegations are leaked and prominently carried in the National Media. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<strong>Publication of Names of Accused - A Responsible Act - Not a Casual Joke</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the <em>Service Tax (Publication of Names) Rules, 2008 </em>, the following procedure has to be followed for publication of names of offenders:- </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3. Publication of names and other particulars.- Subject to the provisions of these rules, the Central Government may cause to be published in the Official Gazette, print media, electronic media or by any other means, the names and particulars of the following persons, namely:- </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Persons, who have been adjudged under the provisions of the Chapter, to have contravened any of the provisions of the Chapter or the rules made thereunder, with intent to evade payment of service tax; </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Persons who have been adjudged to pay but has not paid any amount, payable under the provisions of section 73A of the Chapter: </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Initiation of action and publication.-(1) If the Commissioner of Central Excise, having jurisdiction over such person, is satisfied that it is necessary or expedient in the public interest to publish the names and any other particulars as he deems fit, he shall after due verification of the facts, and the circumstances of the case, forward a proposal in the Annexure appended to these rules for such publication to the jurisdictional Chief Commissioner. </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) The jurisdictional Chief Commissioner, on receipt of proposal referred to in sub-rule (1), shall within fifteen days from the receipt of such proposal, examine it and if he is satisfied that circumstance of the case justify such publication, may make a recommendation to the Board accordingly. </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) On receipt of the recommendation by the Board, or on its own, the Central Government may cause publication of the name and other particulars in a manner as specified in rule 3. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the power to publish the names is with the Central Government and not even with the Board. But unfortunately, a few Commissioners and Chief Commissioners are struck by the awe of publicity, which is not really all that healthy - for them. </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 align="justify"><font size="2"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" 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"></font></strong></font><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Availment of CENVAT credit on inputs used for job work, proper - Revenue appeal rejected: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>assessee availed CENVAT credit on inputs used in the job work of crimping and soldering of materials supplied by principal and the job worked goods have been removed under job work challan by following the procedure as per Rule 4(5)(a) of CENVAT Credit Rules, 2004. It is the case of the department that the CENVAT credit has been availed wrongly on account of job work without intimating these facts to the department and by suppressing these facts of taking such irregular credit. </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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether Revenue can invoke Sec 43(1) even in a case where parties are unrelated and transaction is at arm's length - NO, says ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issue before the Tribunal is - Whether the provisions of section 43(1) are applicable to a transaction which is at arm's length and entered into between unrelated parties and whether the AO was correct in treating the amount in excess to book value of the assets as good will, particularly when the assets were acquired from a public limited company as a going concern. NO is the Tribunal's answer to both the questions. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>When there is no duty liability, any amount deposited under protest liable to be refunded: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Holding that in the present case the assessment of bills of entry were not required to be challenged and could be corrected under section 154 of the Customs Act, 1962, the impugned orders denying refund claim were set aside and the appeals were allowed with consequential relief. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666">Until Tomorrow with more DDT </font></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day. </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">vijaywrite@taxindiaonline.com </a></font></p>
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