TIOL-DDT 1662 · 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 1662 </font><br>
29.07.2011 <br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Special Camp for Tax Filing </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Income Tax Department, New Delhi has organized a special camp to facilitate filing of returns of salaried and pensioner assessees at Hall no. 12 & 12A, Pragati Maidan from 28th to 31st July. CBDT Chairman, Prakash Chandra, yesterday inaugurated the camp. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Delhi, the seat of jurisdiction over these assesses is at Mayur Bhawan. As maximum returns are received around the due date, special counters for receiving returns were also set up at Mayur Bhawan from 21st to 27th July, 2011. There has been a steady increase in the number of returns received over the past years. The number of returns received for the year 2010-11 was 720561 as compared to 702752 returns received for the year 2009-10. Therefore the number of counters at Mayur Bhawan was also increased this year to avoid long queues. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The counters at Pragati Maidan will remain open on Saturday and Sunday (i.e. 30th & 31st July, 2011) as well. Furthermore, 31st July being the due date for filing of returns, the counters will remain open till 8:00 p.m. on that date. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There are special facilities for senior citizens and differently able persons. Separate counters have been set up for them at Pragati Maidan and their returns will also be received at Mayur Bhawan as well during 28th to 31st July. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To further facilitate the assessees, the following measures are taken: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ AC environment </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Setting up of enquiry counters, help desks etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Facility for PAN enquiry and PAN forms </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Availability of tax return preparers </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Facility for payment of tax </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Other utilities such as provision of photocopying, free emergency medical services etc. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is really heartening to see the tax department treating the tax payers (their real masters) with some respect and dignity. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Speaking at the 150 years celebration of Income Tax at Kolkata, film maker Aparna said, “<em>We are all afraid of the Income Tax Department, so events like these go a long way to remove that fear from the minds of the people and bring us closer</em>”. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Blocking of DIN consequent to non-filing of Statement of Affairs (SOA) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has been observed that companies are not filing Statement of Affairs (SOA) in time in terms of section 454 of the Companies Act, 1956. This delays the process of liquidation considerably. It has, therefore, been decided to give the companies and the directors of such companies where winding up orders have been passed by the Court, one month's notice to file SOA before action for blocking their DIN is initiated by the Ministry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA 21 cell in the Ministry would block DIN of all such directors on getting information after approval of the competent authority concerned. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/Circular_56-2011_28july2011.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA General Circular No. 56/2011, Dated: July 28, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Need
for clear cut clarification from CBEC on refund and recovery of duty paid
- Will Board Clarify? </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> received this mail from a concerned netizen. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We would like to bring to your kind notice a small matter which is causing irritation amongst Importers / Exporters, Departmental officers, Appellate Authorities and even perhaps Judicial Forums. <strong>The issue is whether the Bill</strong> of Entry or Shipping Bill as the case may be <strong>should be challenged</strong> before </font></em></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>a) A refund application is filed for excess payment of duty </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) A Show Cause Notice is issued for recovery of short levy of duty </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) A Show Cause Notice is issued for recovery of excess payment of duty Drawback arising out of wrong classification. </font></em></p>
</blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A number of litigations and cross-litigations exist on the above matter and the funny part is that the Department as well as the importer and exporter are <strong>clear </strong>on the provisions. However, the problem is that<strong> what is clear to the Department is not clear to the Trade and vice versa</strong>. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a plethora of judicial pronouncements on the subject right from Tribunals to Supreme Court and in many cases conflicting views are expressed. To add fuel to the fire, CBEC issues Circulars accepting the decisions which are <strong>favourable to Revenue</strong> even if it is pronounced by Tribunal and pretends ignorance and <strong>remains silent</strong> on issues decided in favour of the Trade, even by the Apex Court. The Board should certainly be above board!! </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We request you to kindly use your good offices in prevailing upon CBEC to issue a fresh Circular very clearly and without ambiguity, stating as to the <strong>correct legal position and requirement in filing an appeal against a Bill of Entry or Shipping Bill for the situations mentioned above</strong>. All the earlier Circulars on the subject can be rescinded and the new Master Circular should contain the view of the Board, which will be binding on all officers under the Board. The situation as of today, on the subject matter, is <strong>very confusing</strong> and <strong>leads to multi interpretations</strong> by various quarters concerned. This should not be, for the wise say, that<strong> clarity of law is the safety of the citizen</strong>. </font></em></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DoP&T clears CBEC promotion file for Chief Commissioners - Board should be ready to issue orders</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DPC for promotion to the cadre of Chief Commissioners in CBEC was held in mid May and some 42 names were cleared and by this time the new Chief Commissioners should have been in office, but things ran into bad weather with one of the Commissioners who apparently did not make it to the list getting a stay from the CAT. The Board moved fast and succeeded in getting the stay vacated but it seems the DOPT had some objections. Now the DOPT has also cleared it and the file is sent to the Cabinet Secretariat. The final clearance should come in a couple of weeks, but before that Board should get ready to issue the orders immediately after the clearance by ACC, so that much of political pressure can be avoided at the time of posting orders (not that it cannot be done now). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While there are about 40 anxious Commissioners waiting for that elusive promotion, there are at least a hundred Superintendents stagnating in that cadre for nearly twenty years and who can be promoted if only the Board can hold a DPC – there are more than a hundred vacancies and what stands between these officers and a promotion is a simple DPC. Many of these Superintendents are retiring this year or next and may have to go without that promotion for which they have been dreaming for so many years. It is really a mystery why the Board is not filling up these posts – maybe they are waiting for that distant cadre review which seems to be a little away from the expanding horizon. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Monsoon Session of parliament from Monday - Is All India Radio liable to pay Service Tax? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Monsoon Session of Parliament is to start on Monday and the session is sure to be hot with the rajas and babas and several other issues. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of the questions slated for Tuesday is: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) whether the All India Radio (AIR) is liable to pay Service Tax to the Government; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) if so, whether the AIR has paid the service tax during the last three years and the current year; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) if so, the details thereof; and </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) if not, the reasons therefor? </font></p>
</blockquote>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Monsoon Girl </font></strong></p>
<p align="center"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/monsoon_girl.jpg" alt="Legal Corner Icon" width="250" height="383" hspace="5" border="0" align="center"></font></strong></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1960 picture of Aparna Sen as the Monsoon Girl </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><strong><font color="#663399" 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">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">CENVAT Credit available on Banking & Financial
Services, Courier services, Telephone Services and Business Auxiliary Services
but not on Catering Services and Insurance Services: CESTAT</font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Banking & Other financial services:</strong>- entitled to avail input service credit </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Catering Service:-</strong> if the amount of catering service has been recovered from the employee same is not entitled as input service credit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Courier Services:</strong>- input service credit on courier service is allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Insurance Services:</strong>- insurance of family members of the employees has no concern with the business of manufacturing of the appellant. Credit denied. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Maintenance and Repair of Garden:</strong>- credit on these services is allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Telephone Services (Land Line):</strong>- credit cannot be denied merely on the ground that the said telephone installed outside the factory premises. Therefore, input service the credit is allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++<strong> Business Auxiliary Services:</strong>- hall has been hired by the appellant for a training program of employees which is very much relating to the business of manufacturing of the appellants. Hence, the credit on this service is allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong>Maintenance and Repairs:</strong>- photocopy machine has been used by the appellant in their business of manufacturing. Therefore, the credit on this service is allowed. </font></p>
</blockquote>
<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 69C - Whether when Revenue detects unexplained expenditure in name of Doctors of assessee-hospital, additions can be made in hand of hospital only after Doctors deny receiving such payments - Yes, rules HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee is a major hospital located in the middle of the city. During the search, the Department noticed unaccounted collection of fees in the name of doctors and distribution of the same to various doctors serving the hospital whether as regular employees or as consultants. In the course of enquiry, the assessee accepted the collections but contended before the department that they had distributed the entire amounts to the doctors in whose name the collections were made and no part of it was retained as their income. However, the Department rejected the explanation offered by the respondent and assessed the entire amount as unexplained expenditure falling u/s 69C. </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">Payment of duty by manufacturer under protest cannot be treated as a protest by purchaser of goods: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECL</strong> filed a refund claim in November 1996 under section 11B claiming to be the buyer of the goods who had borne the incidence of duty during the period from April 1987 to Feb, 1994 but the same was also rejected. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On appeal, the Commissioner (Appeals), while holding that the refund is admissible on merit and the same is not time barred for the reason that duty has been paid by M/s ICL under protest, credited the refund amount to the Consumer Welfare Fund on the ground that the bar of unjust enrichment would apply. </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 color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend. </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>