TIOL-DDT 1570 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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 1570 </font><br>
17.03.2011 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Interest Liability When CENVAT Credit Wrongly Taken But Reversed Before Utilization – Board Clarifies </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> Circular No. 897/17/2009-CX dated 03.09.09, Board clarified: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the Rule 14 of the CENVAT Credit Rules, 2004, is clear and unambiguous in the position that interest would be recoverable when CENVAT credit is taken or utilized wrongly, it is clarified that the interest shall be recoverable when credit has been wrongly taken, even if it has not been utilized, in terms of the wordings of the present Rule 14.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, Board received references to re-examine the issue in light of judgement of <em>P&H High Court in the case of Ind-Swift Labs. V/s UOI </em>- <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2009/2009-TIOL-440-HC-P-H-CX.htm" target="_blank"><font size="1">2009-TIOL-440-HC-P&H-CX</font></a></strong>. The said judgement of P&H High Court held that under provisions of Rule 14 of CENVAT Credit Rules, 2004, interest cannot be claimed from the date of wrong availment of credit. It is required to be paid from the date it is wrongly utlilized.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, Board has examined the matter and observes that the issue has been conclusively settled by the Apex Court in the departmental appeal against the above mentioned judgement of P&H High Court. The Apex Court vide its judgement dated 21.02.11 in Civil Appeal No. 1976 of 2011 - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2011/2011-TIOL-21-SC-CX.htm" target="_blank"><font size="1">2011-TIOL-21-SC-CX</font></a></strong> has set aside the aforesaid order of Hon'ble High Court. The Apex Court has ruled that “If the aforesaid provision is read as a whole we find no reason to read the word “OR” in between the expressions ‘taken or utilized wrongly or has been erroneously refunded' as the word “AND”. On the happening of any of the three circumstances such credit becomes recoverable along with interest.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Netizens may recall that we have covered this issue extensively in TIOL-DDT 1554 22.02.2011 while reporting the Apex Court judgment. Also refer to our detailed analysis of the Apex Court judgment in our story <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12113"><strong>Irregular CENVAT Credit - Interest Payable from date of taking credit, not utilizing it: Supreme Court</strong></a>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, this leads to an interesting situation. Let us assume one assessee had taken credit in April 2010 and reversed it in March 2011 without utilising it. He is liable to pay interest from April 2010. Let us take another assessee, who had also taken credit in April 2010 and utilised it February 2011. Is he liable to pay interest only from the date of utilisation? i.e., from February 2011? How can the person who did not utilise the credit end up paying more interest than the one who enjoyed the benefit of utilising the credit? Alternatively, if in both the cases, the interest is applicable only from April 2010, then why the word taken or UTILSIED was used in Rule 14? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Instead of celebrating over the judgment of SC, it would have been better had the responsive Board explained these finer points. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2011/excircular942.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 942/03/2011-CX, Dated: March 14, 2011</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Minimum export price of onions - Reduced</font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has reduced the Minimum Export Price of Onions other than Bangalore Rose Onions and Krishnapuram onions from USD 350 to USD 275. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not034.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No 34 (RE–2010)/2009-2014 , Dated: March 16, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Companies (Name Availability) Rules, 2011 - Notified </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has notified the Companies (Name Availability) Rules, 2011. Salient features of the Rules are:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ While applying for a name, the applicant has to certify that he has searched the website of the Ministry of Corporate Affairs for checking the resemblance of the proposed name with companies already registered.
</font>
</p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The proposed name(s) is/are not in violation of the provisions of Emblems and Names (Prevention of Improper Use) Act, 1950 as amended from time to time.
</font>
</p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The name if made available, is liable to be withdrawn anytime before registration of the company, if it is found later on that the name ought not to have been allowed.
</font>
</p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Even after incorporation of the company, the Central Government has the power to direct the company to change the name under section 22 of the Companies Act, 1956, if it comes to his notice or is brought to his notice through an application that the name too nearly resembles that of another existing company or a registered trademark.
</font>
</p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The use of a different tense or number of the same word does not distinguish one name from another.
</font>
</p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The addition of an internet related designation, such as .COM, .NET, .EDU, .GOV, ORG, .IN does not make a name distinguishable from another, even where (.) is written as ‘dot'. </font>
</p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Abbreviated name such as ‘ABC limited' or ‘23K limited' cannot be given to a new company. However the companies well known in their respective field by abbreviated names are allowed to change their names to abbreviation of their existing name (for Delhi Cloth Mills limited to DCM Limited, Hindustan Machine Tools limited to HMT limited) after following the requirement of Section 21 of the Companies Act, 1956. </font>
</p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ If the proposed name includes the word “State”, the same shall be allowed only in case the company is a government company. Also, if the proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited, the same shall not be allowed. </font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Guidelines for using Key Words in the name of a Company: </font></p>
<table width="450" border="0" align="center" cellpadding="5" cellspacing="0">
<tr bgcolor="#FFFF00">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Key Words </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Required authorized Capital in Rs </font></strong></p></td>
</tr>
<tr bgcolor="#FFFF99">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1</font></p></td>
<td valign="top" bgcolor="#FFFF99"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Corporation, corp, corpn, corp. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">25 crore </font></p></td>
</tr>
<tr bgcolor="#FFCCCC">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top" bgcolor="#FFCCCC"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">International, Globe, Global, World, Overseas, Universe, Universal, Continent, Continental, InterContinental, Asiatic, Asia, Asian being the first word of the name </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 crore </font></p></td>
</tr>
<tr bgcolor="#FFFF99">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top" bgcolor="#FFFF99"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If any of the words at (2) above is used within the name (with or without brackets) </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 crore </font></p></td>
</tr>
<tr bgcolor="#FFCCCC">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top" bgcolor="#FFCCCC"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hindustan, India, Indo, Indian, Bharat, Bharatvarsh, Bhartiya or any other country's name being first word of the name </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 crore </font></p></td>
</tr>
<tr bgcolor="#FFFF99">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If any of the words at (4) above is used within the name (with or without brackets) </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">25 lakh </font></p></td>
</tr>
<tr bgcolor="#FFCCCC">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Industries/ Udyog </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 crore </font></p></td>
</tr>
<tr bgcolor="#FFFF99">
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Enterprises, Products, Business, Manufacturing, Venture. </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">50 lakh </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/companies_rules_15Mar2011.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Companies (Name Availability) Rules, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Hello CC saab, Chairman CBDT is waiting for your phone call! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>EXPEDITIOUS processing and Issue of refunds:</em></strong> Despite CBDT's repeated requests / advices, some CCITs continue to lag behind showing little or no urgency in disposal of refunds / time barring cases. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chairman, CBDT in his latest letter to the Chief Commissioners says, “This is an appeal to the Chief Commissioners of Mumbai, Bangalore, Delhi, Kolkata, Pune, Chennai, Rohtak RCC(CCIT, Panchkula), Patna, Ahmedabad & Meerut to study & analyze the position & speak to the Chairman over phone today March 16 2011 to apprise him about their action plan to finish the pendency immediately.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <strong>Chairman is waiting for a phone call </strong>from the CCITs of all the above regions.” </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/cbdt_chairman.pdf"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From the desk of Chairman,CBDT S.N. 19… /March 16, 2011</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">NCB Celebrates Silver Jubilee </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Narcotics Control Bureau is celebrating its Silver Jubilee this month. NCB was constituted by the Government on 17th March, 1986. It takes measures, amongst others, to prevent illicit traffic in narcotic drugs and psycotropic substances. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A function is being organized in the Vigyan Bhawan, New Delhi tomorrow to commemorate the journey of this organization. Home Minister, Shri P. Chidambaram will be the Chief Guest on this occasion. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Coal India Employees to purchase Mahatma Gandhi's House in Jo'burg </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> proposal has been received from the Coal India Ltd to purchase the Mahatma's House “The Kraal” situated in Johannesburg, South Africa, in the name of employees of CIL. After purchase, the house is proposed to be converted into a museum and to handover the upkeep of the monument to Archaeological Survey of India (ASI). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The proposal envisages the said purchase to be made from contribution made by the employees of CIL and its subsidiaries, through formation of a trust. The expenditure for subsequent upkeep and maintenance of the said house is proposed to be borne by CIL. Ministry of Coal has taken up the matter with the ASI and the Ministry of Culture in this regard. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The issue was taken up by the CIL management with the employees' unions and majority of them agreed to extend their financial support for the same. <br>
<br>
This information was given by the Minister of State for Coal (Independent Charge) Sriprakash Jaiswal, in a written reply to a question the Lok Sabha yesterday. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Meet us in Mumbai Tomorrow </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TOMORROW</strong> is the Day - for our workshop in Mumbai. CBEC Chairman is the Chief Guest. If you are not there, you are missing a lot, but we will bring you details of the seminar in the coming days. </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"> – Friday'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">Central Excise - Refunds - Bar of unjust enrichment is applicable to units working under Compounded Levy Scheme - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee disputing the volume of total production in a year to justify any further claim based on such volume of production, will have to establish the same with cogent material as to what is the quantity of goods had been produced in a year, and being a question of fact will have to be established by the party who raises the dispute about the total volume of the goods produced from a unit during the particular period. There can be no presumption that the production is not in accordance with the determination of annual capacity. </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">Income tax - Whether expenses incurred on travelling of foreign technicians for repair of machinery are to be added to loan taken for capital asset and same is to be treated as capital in nature - NO, says ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> two key issues before the Tribunal are - Whether depreciation relating to trial run period is allowable in absence of even supporting evidence and whether expenses incurred on travelling of foreign technicians hired for repair of machineries are to be added to loan taken for capital asset and same is to be treated as capital in nature. The answer to the first question is NO, and YES for the second one. </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">Service Tax - Erection & commissioning service - All taxable services rendered in relation to transmission and distribution of electricity covered by Section 11C notification No. 45/2010-ST dated 20.07.2010 – Prima facie case for full waiver of pre-deposit in relation to erection & commissioning service – CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant was engaged in providing erection and commissioning service and rent-a-cab service to electricity supply companies like HESCOM and Gulbarga Development Authority. The appellant is before CESTAT seeking stay of service tax demands amounting to Rs. 41.70 lakhs along with mandatory penalty of equivalent amount. </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 Time. </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>