TIOL-DDT 1534 · the untouched capture
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<p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#663399" size="3">TIOL-DDT 1534 </font><br>
21.01.2011 <br>
Friday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> TIOL, ELT and 8 others, including 7 officers, to receive WCO Certificate of Merit on 'International Customs Day' </font></strong></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> are
proud to report that <font color="#FF6633"><strong>Taxindiaonline.com</strong></font> has
been awarded the <strong><font color="#663399">‘WCO
Certificate of Merit'</font></strong>. This certificate is awarded for
engagement with the Customs community and contribution to the enhancement
of knowledge in the field of customs law, procedure and administration.
The certificate will be presented on 27th January at Delhi. We are grateful
to the Board for this high recognition and we promise to continue this
untiring work in spreading tax knowledge as it happens. We are also happy
to share this honour with RK Jain, the legendary Editor of Excise Law Times,
popularly known as ELT. Many of us have grown in the ELT school, which
was the only school in those days. Naval H Mehta, Advisor, Bombay CHA Association
and KR Bhargava, Chief Commissioner of Customs are among the other awardees. </font></p>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The following are the recipients of the Certificates: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1) Naval H Mehta - Advisor - Bombay CHA Association </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2) R K Jain - Editor - Excise Law Times </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3) Shailendra Kumar - CEO & Managing Editor - <strong><a href="http://taxindiaonline.com/RC2/index.php3" target="_blank">Taxindiaonline.com Pvt Ltd</a></strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 4) K R Bhargava - Chief Commissioner of Customs, Nhava Sheva </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 5)
Kameswari Subramanian - ADG, DGI, New Delhi </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 6) A K Singh, Addl Director, NACEN, Faridabad </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 7) A K Rahman - Addl Commissioner of Customs, Mumbai Customs </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 8)
Satyajit Mohanty - Joint Commissioner</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 9) Mayank Sharma – Superintendent </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 10) K Bhattacharjee - SIO, DGEP </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TIOL </strong>congratulates the winners, especially the Departmental Officers. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Only Aggrieved Party Can challenge Notice - Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UP</strong> State Road Transport Corporation hires private buses on contract basis. The Department feels that the bus owners are liable to pay Service Tax under “rent a cab operator” and asked the UPSRTC to supply a list of bus owners with whom it had entered into contracts. The UPSRTC promptly filed a writ in the High Court pleading that no Service Tax was payable. The Lucknow Bench of the Allahabad High Court dismissed the petition as UPSRTC was not the aggrieved party, as the Department's notice would be on the bus owners. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The UPSRTC took the matter in appeal to the Supreme Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court held that UPSRTC had no locus standi to file the writ or the appeal as no notice was issued to UPSRTC by the department. If anybody is aggrieved, it is the private bus owners. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though a little delayed, we bring you this Supreme Court Order today. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11965" target="_blank">Breaking News</a></strong>.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Orders of Commissioner (Appeals) on the Net? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Netizen wonders why the orders of the Commissioner (Appeals) are not uploaded in their websites. He says, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“we have to resort to RTI Act, 2005 to get copy of ruling from the Commissioner (Appeal). In this connection, I would like to draw your kind attention to the following extract taken from RTI Act, 2005:- </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 4 (2). It shall be a constant endeavour of every public authority to take steps in accordance with requirements of clause (b) of sub-section (1) to provide as much information suo motu to the public at regular intervals through various means of communications, including internet, so that the public have minimum resort to the use of this Act to obtain information.”</font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He wanted to give vent to his “pent-up feelings through the courtesy of <strong><a href="http://taxindiaonline.com/RC2/index.php3" target="_blank">taxindiaonline.com</a></strong>. to prevail upon Commissioners (Appeals) ..” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> All Fine sir, but the Commissioners (Appeals) do not have websites – for that matter they don't have independent offices; they are dependent on the mercy of the jurisdictional Commissioners for daily needs like stationery and equipment and not all jurisdictional Commissioners are kind to their less worth colleagues called Commissioners (Appeals). Further not all Commissioners have websites and most of whom do, rarely update them. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> So, getting orders of Commissioners (Appeals) from the web is a far cry as of now. Let us hope it would happen soon. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Incidentally why would anyone want the orders of the Commissioners (Appeals)? In a department that is famous for flouting the orders of their own Board and the Supreme Court, do you think anyone will give precedential value to the orders of Commissioner (Appeals)? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Bank Guarantee For Export Promotion Schemes - Relaxation on Penal Clause - CBEC Clarifies - DDT's Mistake </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> yesterday's <strong>DDT</strong>, it was reported as: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has now clarified that offences other than the following would result in denial of the benefit of exemption from bank guarantee. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Cases of duty evasion involving mis-declaration / mis-statement/collusion / willful suppression / fraudulent intent whether or not extended period for issue of Show Cause Notice (SCN) has been invoked. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. Cases of mis-declaration and/or clandestine/unauthorized removal of excisable / import / export goods warranting confiscation of said goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3. Cases of mis-declaration / mis-statement / collusion / willful suppression / fraudulent intent aimed at availing CENVAT credit, rebate, refund, drawback, benefits under export promotion/reward schemes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 4. Cases wherein Customs/Excise duties and Service Tax has been collected but not deposited with the exchequer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 5. Cases of non-registration with the Department with intent to evade payment of duty / tax. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The sentence, “Board has now clarified that offences other than the following would result in denial of the benefit of exemption from bank guarantee.” Should have been, “Board has now clarified that offences other than the following would <font color="#FF6633"><em><strong>not</strong></em></font> result in denial of the benefit of exemption from bank guarantee.” In effect the exemption from bank guarantees would be denied only in cases of offences listed above and in other cases (like technical offences), the exemption will not be denied. The crucial ‘not' made all the difference. DDT deeply regrets the error and thanks the alert Netizen who pointed the mistake. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Lucrative Goods For Smuggling - Onions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> seems there is hectic smuggling activity in the India Nepal Border – and the lucrative business is the smuggling of onions! </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 align="justify"><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">Service in relation to agriculture - Prima facie case for waiver of pre-deposit - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant states that the work undertaken by the appellants was as per a contract with the Ahmedabad Municipal Corporation and the said work falls under the category specified under section 65(97a) of the Finance Act, 1994 but is eligible for exemption under the exclusion clause as it is in relation to irrigation, watershed development and drilling, digging, repairing, renovating or restoring of water sources or water bodies, namely, Sabarmati river. </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">Sec 17 - Whether when agreement between doctors and hospital provides for 'fees for services' it cannot be said that there exists employer-employee relationship - YES, says ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>THE</strong> issues before the Tribunal are - Whether when the agreement between the doctors and the hospital provides for 'fees for services' it goes to disprove the employer-employee relationship between the two and whether when fees are paid in addition to the salary, it takes the colour of salary. And the verdict goes against the Revenue.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Assessable value has to be determined by applying rule 7 of Customs Valuation Rules and not in an arbitrary manner by drawing analogy from section 4A of the CEA: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>THE</strong> lower adjudicating authority held that there was 500% difference in declared M.R.P. compared to the assessable value declared. He, therefore, rejected the assessable value and determined the assessable value by deductive method under Rule 7 and adopting the analogy of the Central Excise Act allowed the abatement of 60% which was 10% higher than the abatement allowed under Central Excise Act and enhanced the assessable value to 40% approximately. </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 size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6666">Until Monday with more <strong>DDT</strong></font></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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