TIOL-DDT 1674 · 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 1674</font><br>
17.08.2011 <br>
WEDNESDAY </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax Refunds through Customs EDI - Board Invites Comments </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> exemption for service tax on services used for export of goods, operate in a complicated refund procedure and refund is as you know next to impossible in the Central Excise department. Now Notification No. 17/2009 – Service Tax dated 7.7.2009 provides for refund of service tax paid on 18 listed items of service. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has proposed to introduce a simplified scheme for refund of service tax to exporters on the lines of duty drawback. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The measures proposed are: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Service Tax Refund will be processed in the ICES through the Custom Houses. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Service Tax Refund will be given electronically to the exporter who opts for claiming STR based on schedule. In case an exporter wishes to claim STR on export of goods on actual basis he will approach the concerned Central Excise/Service Tax field formations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Service Tax Refund will be processed and sanctioned on the ICES system subject to the safeguards indicated. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exporters, exporter associations, chambers, trade, industry and field formations are requested to go through the proposed scheme and offer their comments, views and suggestions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You have all of 10 days (of which three are holidays) to send in your suggestions to the Director, TRU. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/draft_circular_edi_system.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Draft Circular in F. No. 354/66/2011-TRU: Dated August 12 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Pentaerythritol </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> had imposed provisional anti dumping duty on Pentaerythritol originating in, or exported from, Canada, Japan and Taiwan, by Notification No. 33/2002 – Cus dated 27.03.2002. This was to be valid till 26.09.2002. By Notification No. 119/2002 – Cus dated 31.10.2002, this was extended till 26.03.2007 – more than a month after it lapsed. This was further extended till 26.03.2008, by Notification No. 46/2007 dated 26.03.2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 55/2008–Cus dated 28.04.2008, the Government, after the lapse of a month, again imposed anti dumping duty on the product originating in, or exported from, Chinese Taipei and Japan. This notification is valid till 27.04.2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Government has issued another notification imposing anti dumping duty on Pentaerythritol originating in, or exported from, Chinese Taipei and this is to be valid till 27.04.2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What about the anti dumping duty on the product already covered by Notification No. 55/2008-Cus? Those entries are deleted from Notification No. 55/2008-Cus. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_074.htm" target="_blank">Notification No. 74/2011-Cus , Dated: August 12 2011</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_075.htm" target="_blank">Notification No. 75/2011-Cus , Dated: August 12 2011 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Indian Customs - GREEN </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a first for any taxation department, the Union Finance Minister Pranab Mukherjee has given his green signal to an Environment Strategy for the Central Board of Excise and Customs (CBEC) that would change the way business is done by the Customs, Central Excise and Service Tax officials. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC's Environment Strategy would include: - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Training of officers for monitoring international trade in environmentally sensitive goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Sensitizing officers of DRI, Customs (Preventive) etc. to enhanced detection of environmental violations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Creating database and disseminating relevant environmental information. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Protecting frontline officers from hazardous substances by providing radiation detection kits etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Dematerializing documents and eliminating paper documentation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Promoting web-based external and internal communication. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Developing and implementing green standards for infrastructure. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC emphasizes that besides contributing to a cleaner environment, decisions such as reducing documentation would serve the objective of trade facilitation by reducing transaction costs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Does this really require the FM's clearance and why can't similar strategy be tried in all Government Departments? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Corruption and Government - I am astonished at my own Moderation! </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WHILE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Anna is arrested and the hype crazy middle class Indian is aghast, politicians must be busy hunting for the manna that is there just for the taking. The genesis of the present day all-pervasive corruption is rooted in the establishment of the British Empire in India. Lord Clive, the highly respected founder hero of the British Empire in India (unfortunately, even in our own history text books) was awfully corrupt and had to face charges in the British Parliament after he went back to England. Like our present day politicians, he was an expert in the loot and scoot game and like them he was never caught really. He was not a soldier, but he defeated powerful kings of India by his divide and rule policy and became the Governor, starting life as a clerk in Madras, where he was sent to by his family to eke out a living or die of malaria. Bofors, 2G and CWG together would be a pittance compared to the loot that Clive took from India. The British laws (like ours) could not punish him, but maybe he realised that he was guilty and committed suicide. There was so much to loot in India that Clive told the Parliament, “ By God, at this moment do I stand astonished at my own moderation ". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Clive was succeeded by a more corrupt clerk who became the first Governor General of India – Warren Hastings. He collected huge sums of money from his tax collectors. He is credited with establishing judicial courts in various places on which Bankim Chandra Chatterjee said, “T hese British courts and brothel houses are similar because native Indians can get into both of them only by paying money ”. When public outcry became unbearable, the Government ordered an enquiry against Hastings, which ran for six years after which he was acquitted. After the fiasco of a trial, he continued to be the Hon'ble Warren Hastings, former Governor General of India! </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What's New? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Common Tax for France and Germany </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FRANCE</strong> and Germany plan to have a common corporate tax system by 2013. The Finance Ministries of France and Germany will draw up plans to have a common corporate tax base and rate for the two nations to be effective from 2013. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt17aug.jpg" alt="Legal Corner Icon" width="400" height="289" hspace="5" border="0" align="center"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was decided at a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel, in Paris, yesterday. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And in India, we are not able to agree on GST! </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"> – Thursday'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">Central Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Imported cars - Central Excise duty demand on assembling activity does not amount to double taxation - duty upheld: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant had imported parts of 15 cars and had cleared the same on payment of Customs duty at the rate of appropriate rates. They had purchased the car bodies (Chassis) of 15 Honda Cars from a public auction held by Bombay Port Trust through the auctioneers Gandhi & Co. Thereafter using the imported parts, car bodies purchased from auction and also 15 engines purchased locally, they had assembled 15 cars. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These 15 cars were subsequently seized by the officers of Mumbai Customs and a show-cause notice dt. 22.10.1986 was issued under the Customs Act, 1962 alleging that 15 Honda cars were imported into the country in CKD condition. On the same set of 15 Honda cars that were assembled, the Collector of Central Excise, Mumbai-I too wanted to have his share of Central Excise duty.</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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income
tax - Whether services like repair and maintenance constitute an integral
part of manufacturing of Industrial Undertaking as per Sec 80IB - NO, rules
ITAT Special Bench</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issues before the Special Bench are -
Whether services like repair and maintenance constitute an integral part
of manufacturing of industrial undertaking - Whether any income derived
from such jobwork of repair and maintenance is also eligible for Sec 80IB
benefits and whether such income has any direct nexus with the main activity
of the industrial activity. And the verdict has gone against the assessee.</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 rendered in Mumbai - Ratnagiri Assistant Commissioner has no jurisdiction: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is the Commissioner in whose territorial jurisdiction the registered office of the service provider is located, has the jurisdiction over him irrespective of the place where service is provided. In the instant case, the service has been provided at Mumbai and the registered office is also situated in Mumbai. Therefore, the Assistant Commissioner, Ratnagiri has no jurisdiction over the activities undertaken by the respondent in Mumbai. </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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