TIOL-DDT 1619 · 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 1619</font><br>
</strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">31.05.2011 <br>
</font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tuesday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods Imported for Metallised Plastic Films - Retrospective Exemption </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GOODS</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> imported by manufacturers of metallised plastic films were allowed to be imported at concessional rates of duty by virtue of Notification No. 25/99 - Customs dated the 28th February, 1999, No. 25/2002 – Customs dated 1st March, 2002 and No. 71/2004 - Customs dated 9th July, 2004. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the goods have become liable to higher duty by virtue of the judgment of the Supreme Court in <em>Meltex (India) Pvt. Ltd. Vs. Commissioner of Central Excise, New Delhi , <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2004/2004-TIOL-77-SC-CX.htm" target="_blank"><font size="1">(2004-TIOL-77-SC-CX</font></a></strong></em><strong><font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2004/2004-TIOL-77-SC-CX.htm">) </a></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So now the Government has exempted under Section 28A of the Customs Act, the short levy subject to the conditions that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ the said goods were imported prior to 12th February, 2004; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ the said goods have been used in or for production of final products on which duty of excise has been paid; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ no refund of duty of excise paid on the said final products has been availed by the said manufacturer. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The judgement of the Supreme Court was delivered on 12.02.2004 and it took the Government more than seven years to grant this exemption. Better late than never. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_035.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 35/2011- Cus.,(N.T.), Dated: May 26, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exchange Rates for JUNE Notified </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC </strong>has notified the Exchange Rates for imported goods and export goods for June 2011. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_036.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notification No. 36/2011-Cus.,(N.T.), Dated: May 27, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Silk - Amendment Smuggled in </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CUSTOMS</strong> normally prevents smuggling, but when it comes to a notification, they are adept in smuggling in amendments. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 121/2006-Customs dated the 26th December, 2006, they imposed anti dumping duty on various silk items falling under Tariff Item ‘5007 90 00'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 109/2008 – Cus NT dated 24.09.2008, they amended the Tariff and ‘5007 90 00', became ‘5007 9090', ‘5007 90 10' and 5007 90 90'. So the entry 5007 90 00, was deleted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But they forgot to make the amendments in Notification No. 121/2006 and so anti dumping duty continued to be levied on a non existing tariff entry from 24.09.2008. Now they are making an amendment to include ‘5007 90 10' and 5007 90 90'. Now when is the amendment effective? Is it from the date of issue or from the original date of notification? Department and Tribunal will rule either way and litigation will travel North! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The audacity of the Babu in such an innovative backdoor amendment, is simply amazing. Now that they don't have any respect for even the Parliament, they don't want to even take the retrospective amendment route, which is rather cumbersome, they have chosen the easier route of smuggling in an amendment. The Under-Secretary in the Board is the most powerful lawmaker in the country – far above Parliament and Supreme Court. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_043.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notification No. 43/2011-Cus., Dated: May 27, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Acetone - Provisional assessment ordered </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> had imposed anti dumping duty on import of Acetone originating in, or exported from, the Chinese Taipei by Notification No. 33/2008-Customs, dated the 11th March, 2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now Government has ordered that pending the outcome of the review by the designated authority, the subject goods, when exported by <em>M/s Chang Chun Plastics Co. Ltd,</em> Chinese Taipei and imported into India, shall be subjected to provisional assessment till the review is completed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The provisional assessment may be subject to such security or guarantee as the proper officer of customs deems fit for payment of the deficiency, if any, in case a definitive anti- dumping duty is imposed retrospectively, on completion of investigation by the designated authority. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_044.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notification No. 44/2011-Cus., Dated: May 27, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioners - Don't leave Hqrs without telling your Boss </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has come to the notice of the CBEC that at times some of the Chief Commissioners / Directors General leave their stations on tour or otherwise either within or outside their jurisdiction, without intimation or due prior approval of their Zonal Members, as the case may be. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants all Chief Commissioners and DGs to inform their Zonal Member while leaving out of the station within their jurisdiction. However, they must take the prior approval of their Zonal Member in case they are moving out of their jurisdiction either on official tour or otherwise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Should the Board be issuing such a direction now? As far back as in 1994, the DOPT OM No. 11013/7/94-Estt.(A), dated 18.05.1994, clarified that; </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“the provisions of FR 11 which provides that ‘unless in any case it be otherwise distinctly provided, the whole time of a Government servant is at the disposal of the Government which pays him….' Article 56 of the Civil Service Regulations also provides that ‘no officer is entitled to pay and allowance for any time he may spend beyond the limits of his charge without authority.' It is implicit in these provisions that a Government servant is required to take permission for leaving station/headquarters. It is thus clear that such permission is essential before a Government servant leaves his station or headquarters” </font></em></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Apparently, leaving the Headquarters without permission is a contravention of the Conduct Rules and as such liable for punishment. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/intimation_c50_2011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No.C-50/22/2011-Ad.II Dated: May 30, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC calls for Applications for Ombudsmen </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="5">7</font> </strong>posts of Indirect Tax Ombudsman at 7 stations, viz. New Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Ahmedabad and Lucknow (in the HAG+ pay scale of Rs. 75500-80000/- per month) have been created in the CBEC. Chief Commissioners and above are eligible to apply and they can have a service up to 63 years. Applications are to be sent to the Board by 15th June 2011.</font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/deputation/ombudsman_350.htm" target="_blank">CBEC F.No. A. 35017/35/2011-Ad.II Dated: May 30, 2011 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Chairman Sudhir Chandra Retires Today</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> Chairman Sudhir Chandra is retiring today. In a message, he said; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With profound humility, I bow in reverence & express my gratitude to each & every member of Ayakar Pariwar for their good wishes & support in my humble attempt to serve our great Nation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Even a small gesture of concern and care from me towards my Pariwar members has invariably elicited an overwhelmingly loving response, leaving me mesmerized, speechless & making me more & more humble. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The momentous things we have achieved in a short time would not have been possible without entire Department's support & almighty's infallible Grace. The appreciation & admiration of our efforts by all the taxpayers, the entire print & electronic Media, makes me still more humble. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As a service we are not emerging - we have already emerged. I beseech each & every member of the Pariwar to continue to give their very best to the service of our country. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On this day of May 31 2011, I superannuate with great pride & satisfaction – both hands full with good wishes & blessings of each & every one of you. </font></em></p>
<p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I wish to each one of you happy & peaceful years ahead.</font></em></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no greater generator of wealth and innovation than a system of free enterprise - President Obama quoting Adam Smith </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADDRESSING</strong> the British Parliament recently, President Obama said, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I have known few greater honors than the opportunity to address the Mother of Parliaments at Westminster Hall. I am told that the last three speakers here have been the Pope, Her Majesty the Queen, and Nelson Mandela -- which is either a very high bar or the beginning of a very funny joke. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of course, all relationships have their ups and downs. Admittedly, ours got off on the wrong foot with a small scrape about tea and taxes. There may also have been some hurt feelings when the White House was set on fire during the War of 1812. But fortunately, it's been smooth sailing ever since. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Centuries ago, when kings, emperors, and warlords reigned over much of the world, it was the English who first spelled out the rights and liberties of man in the Magna Carta. It was here, in this very hall, where the rule of law first developed, courts were established, disputes were settled. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Countries like China, India, and Brazil are growing by leaps and bounds. We should welcome this development, for it has lifted hundreds of millions from poverty around the globe, and created new markets and opportunities for our own nations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Adam Smith's central insight remains true today: There is no greater generator of wealth and innovation than a system of free enterprise that unleashes the full potential of individual men and women. That's what led to the Industrial Revolution that began in the factories of Manchester. That is what led to the dawn of the Information Age that arose from the office parks of Silicon Valley. That's why countries like China, India and Brazil are growing so rapidly -- because in fits and starts, they are moving toward market-based principles that the United States and the United Kingdom have always embraced. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is possible for people to be united by their ideals, instead of divided by their differences; that it's possible for hearts to change and old hatreds to pass; that it's possible for the sons and daughters of former colonies to sit here as members of this great Parliament, and for the grandson of a Kenyan who served as a cook in the British Army to stand before you as President of the United States. </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"> – Wednesday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a></a><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">Criteria for Pre-Deposit: whether pre-deposit would create undue hardship, and safeguarding interest of Revenue. At least four judgments in favour of assessee - Attached property valued at Rs. 27 Crores secures Revenue interest - Further deposit waived - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> law which has evolved regarding the granting of interim stay to the assessee in tax matters can be basically put into in the category of whether the said pre-deposit would create undue hardship, and safeguarding the interest of the Revenue. During the relevant period, there were at least four judgments and orders of this Tribunal which indicated that the institutions which were of not commercial nature or were of charitable nature, were not covered under the definition of "Commercial training or coaching centre". It is seen that this view could be entertained by the appellant before due to factual matrix as well as the decided case laws on the issue. </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">Whether recording of satisfaction of AO of searched person is a condition precedent for AO of third person to initiate block assessment if any part of undisclosed income was said to have belonged to third person - YES: Delhi HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the High Court are - Whether recording of satisfaction by the AO of the searched person is a condition precedent for the AO of third person to initiate block assessment u/s 158BC if any part of undisclosed income of the assessee was said to have belonged to the third party - Whether mere use or mention of the word 'satisfaction' in the order/note of the AO of the searched person can be said to meet the requirement of concept of satisfaction as used in Section 158BD. <strong>And the verdict goes against the Revenue</strong>. </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">Suppression - Classification List approved - No suppression: SC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>IN</strong> taxation, it ('suppression of facts') can have only one meaning that the correct information was not disclosed deliberately to escape payment of duty. Where facts are known to both the parties the omission by one to do what he might have done and not that he must have done, does not render it suppression. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for 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>
<div 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>
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