TIOL-DDT 1601 · 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 1601</font><br>
04.05.2011<br>
Wednesday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Permission to Export 2,50,000 MTs of wheat to Afghanistan</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> Number 27 (RE-2010)/2009-2014 dated 28.2.2011 permitted export of 1,00,000 MTs of wheat to Afghanistan, as a donation from Government of India to the Government of Islamic Republic of Afghanistan by 31.3.2011. Now the quantity becomes 2,50,000 MTs and time is available up to 31.3.2012. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not044.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No.44 (RE-2010)/2009-2014, Dated : May 02, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">SKODA's Petition against Rs. 30 Crore pre-deposit Dismissed by Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>OF</strong> late, Tribunals and Courts are not in favour of waiving pre-deposits and appeals in High Courts and Supreme Court are failing with routine regularity. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today we are carrying a High Court order wherein the writ petition of Skoda Auto India, against the CESTAT order requiring them to make a pre-deposit of Rs. 30 Crores, was dismissed by the Bombay High Court. (Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12465" target="_blank">Breaking News</a></strong>) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court dismissed Skoda's SLP against the above mentioned High Court order. The Supreme Court order dated 02.05.2011 reads as, “<em>We do not find any ground to interfere with the impugned order passed by the High Court. Accordingly, the Special Leave Petition is dismissed. However, we extend the time granted by the High Court for deposit of Rs. 30 Crores by a further period of four weeks from today</em>” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, Skoda will have to finally pay up that 30 Crores. Out of the total demand of Rs. 97 Crores, they had already paid Rs. 42 Crores as deposit and Rs. 11.54 Crores as Service Tax. Now they will have to pay another Rs. 30 Crores. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The other day, a lawyer was lamenting before a High Court, “<em>we advise the clients based on sound understanding of Law, but the Department does not agree and issue demands running into hundreds of Crores and when we approach the High Courts, normally they don't interfere at the interlocutory stage.</em>” </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax – Non-payment of Service Tax by BSNL on the Commission/ discount amount paid to PCO operators </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioner, Vizag has informed his Commissioners that: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT, New Delhi, in the case of BharatiInfotel Ltd. Vs. Commissioner of Central Excise, Bhopal [reported in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2005/2005-TIOL-819-CESTAT-DEL.htm" target="_blank"><font size="1">2005-TIOL-819-CESTAT-DEL</font></a></strong>] held that valuation is to be based on the amount received by the telegraphic service provider from the subscriber (PCO Operator) and not on the basis of amount charged by the PCO operator from the customers/ users. In this connection, vide letter F.No. III (20)RC/CESTAT/02/2005 dt.08.02.2011 (copy enclosed for ready reference), Bhopal Commissionerate informed that the Board has decided not to file appeal before the Supreme Court and hence CESTAT judgement in the case of BharatiInfotel attained the finality. <strong>Therefore issues pending in this regard may be disposed off (sic) at the earliest</strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present situation, Public Call Operator (PCO) gets a commission and therefore it appears that PCO is covered under Business Auxiliary Service (BAS), subject to their being above the exemption limit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Therefore the Chief Commissioner wants all the Commissionerates to undertake an immediate verification on this aspect to ensure that proper action is taken to safeguard the revenue in respect of all such PCOs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In some Commissionerates, notices are still being issued to BSNL demanding Service Tax on the commission paid to the PCO operators and the notices invariably charge <strong>BSNL</strong> with <strong>suppression</strong> and <strong>intent to evade payment of tax</strong>! </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2011/circular_bsnl.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioner' letter along with Bhopal Commissioner's letter, Dated : April 18, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Good Language award for IRS</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> is a Law in US of A called <em>The Plain Writing Act of 2010</em> which requires the federal government to write all new publications, forms, and publicly distributed documents in a “clear, concise, well-organized” manner that follows the best practices of plain language writing. The purpose of this Act is to improve the effectiveness and accountability of Federal agencies to the public by promoting clear Government communication that the public can understand and use. The term `plain writing' means writing that the intended audience can readily understand and use because that writing is clear, concise, well-organized, and follows other best practices of plain writing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And there is a Center for Plain Language which gives awards for best plain language documents. This year the US IRS has won the award for two of its recently amended notices for the following traits: </font></p>
<div align="justify">
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Very easy to find instructions and follow them.
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Effectively uses “we” and “you” to clearly and personally identify the party who has the duty. </font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Active voice and clear, concise language used throughout.
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Solid use of descriptive, bolded headings.
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Good use of white space, bulleting, and bold type for items within main headings. </font></p>
</blockquote>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We, in India, should really have something like this. If there is any award for bad language in legislation, the Indian IRS will win it hands down – Can any one beat this? “<font color="#FF6633"><strong><em>exempts all goods, other than those which are clearly not to be used as fertilisers</em></strong></font> ” <a></a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">RTI Payment can be made by Postal Orders </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Department of Personnel & Training, GOI, clarifies that the Right to information (Regulation of Fee and Cost) Rules, 2005 provide that a person seeking information under the RTI Act, 2005 can make payment of fee for obtaining information by cash or demand draft or banker's cheque or Indian Postal Order. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been brought to the notice of the Department that some public authorities do not accept fee through the Indian Postal Orders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is reiterated that one of the approved modes of payment of fee under the Rules is through Indian Postal Order. Refusal to accept fee through the IPO may be treated as refusal to accept the application. It may result into imposition of penalty by the Central Information Commission on the concerned Central Public Information Officer under Section 20 of the Act. All the public authorities should, therefore, ensure that payment of fee by IPO is not denied. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/circular_rti.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DOPT F No. 10/9/2008-lR , Dated : April 26, 2011</font></strong></a></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><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">Whether Revenue can have any legitimate grievance when CIT(A) suomoto issues SCN for enhancement of income but does not do so after an inquiry - NO, rules ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> <strong>issues before the Tribunal are </strong>- Whether Revenue can have any legitimate grievance when CIT(A) suomoto issues SCN for enhancement of income but does not do so after inquiry and whether when AO has not made any disallowance with respect to tax-free income, CIT(A) is right in invoking provisions of Sec 14A. The answer to the first question goes in favour of the assessee and the second is remanded. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SEZ</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Development Commissioner has no power to appoint and terminate Custodian; only Customs Commissioner has the power to appoint Custodian: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> power under section 45 of the Customs Act is specifically conferred on the Commissioner of Customs, who is the only authority in whom the power of appointing a custodian under sub-section (1) thereof is vested. section 12 of the SEZ Act does not empower the Development Commissioner to appoint a custodian under section 45 of the Customs Act, inasmuch as the powers under the Customs Act are required to be expressly assigned to the Development Commissioner under clause (e) of sub-section (2) of section 12 of the Act. </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">TDS? Tax paid by service recipient instead of provider - Demand and penalty quashed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> this case the service tax liability and interest have has been discharged, though not by the service provider but by the person who received the service. So there are technical violations of the relevant laws. However considering that these difficulties were caused due to the improper stand of a Government Company, a lenient view is taken in the matter. Since all duties have been remitted into the treasury as per submission of the Appellant the related demands made in the impugned order are waived. Further invoking the provisions of section 80 of the Finance Act, 1994 all penalties imposed in the impugned order dropped. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrowfor the judgements</font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></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"><strong>vijaywrite@taxindiaonline.com</strong></a></font></p>
</body>
</html>