TIOL-DDT 1678 · 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 1678 </font><br>
24.08.2011 <br>
WEDNESDAY </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Quantum of import of certain milk products in financial year enhanced </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL</strong> Government has enhanced the quantum of imports of goods falling under Chapter 0402 10 or 0402 21 00 from the existing quantity of thirty thousand metric tonnes to fifty thousand metric tonnes in a financial year subject to the condition prescribed in this regard. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_078.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 78/2011-Cus., Dated: August 19, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Implementation of Authorized Economic Operator (AEO) programme - CBEC issues Guidelines </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CONSISTENT</strong> with the “SAFE Framework” developed by the WCO, the Indian Customs administration has developed an AEO Programme that encompasses various players in the international supply chain such as importers, exporters, warehouse owners, Custom House Agents, cargo forwarders and carriers. The objective of the AEO Programme is to provide businesses with an internationally recognized quality mark which will indicate their secure role in the international supply chain and that their Customs procedures are efficient and compliant. An entity with an AEO status can, therefore, be considered a 'secure' trader and a reliable trading partner. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of the salient features of the AEO programme is that any economic operator such as importer, exporter, logistics provider, Customs House Agent can apply for authorization subject to the criteria that the applicant is: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) able to establish a record of compliance in respect of Customs and other legal provisions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) able to demonstrate satisfactory systems of managing commercial and, where appropriate, transport records . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) financially solvent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) able to demonstrate satisfactory systems in respect of security and safety standards. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under the programme, a business authorized by the Customs as an AEO can enjoy benefits flowing from being a more compliant and secure company as well as favourable consideration in any Customs proceedings coupled with better relations with Customs. AEO status will also ensure a low risk score that may be incorporated into Customs ‘Risk Management System' (RMS) and used to determine the frequency of Customs physical and documentary checks. The benefits may also include simplified Customs procedure, declarations, etc. besides faster Customs clearance of consignments of/for AEO status holders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Possible long-term benefits flowing to different categories of AEO status holders are as under: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(a) Importers : </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Reduced examination and inspection with AEO status holder being given higher facilitation than that available to ACP Clients. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Acceptance of pre-arrival import declarations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(b) Exporters:</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Reduced examination and inspection. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Acceptance of export declarations without bringing goods into Customs area. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Warehouse Owners: </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Faster approvals for a new warehouse. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Reduced audit. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Custom House Agents: </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Acceptance of pre-arrival import declarations for client importers. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) Logistics Providers (Carriers / Forwarders / etc.): </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Transit of goods without case by case permissions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Transit of goods without Customs escort. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Criteria for considering application for grant of AEO status: </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Appropriate record of compliance of Customs and other relevant laws; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Satisfactory system of managing commercial and, where appropriate, transport records; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Proven financial solvency; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Maintenance of approved security and safety standards </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As DGICCE is assigned the work of implementation of the AEO programme, Board desires that process of inviting application, processing of the same, validation and certification shall be done as envisaged in the programme, as per the following time lines: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Action</font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Timeline </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Announcement of AEO programme </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">23.8.2011 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Receipt of applications for pilots </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By 15.9.2011 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Scrutiny of applications for pilots </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By 30.9.2011 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Selection of 3 pilots and intimation thereof </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By 15.10.2011 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Validation process including field visits for pilots </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.10.2011 - 15.1.2012 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Decision on grant of AEO status </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.2.2012 </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants all Commissioners to issue a suitable Public Notice and a standing order for guidance of trade and staff. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see also <a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=11755" target="_blank">DDT 1500 – 03.12.2010</a>. </font></strong></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=25&filename=notification/custom/2011/cuscir11_037.htm" target="_blank">CBEC Circular No.37/2011-Cus., Dated: August 23, 2011 and Annexure to Circular No. 37 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">What
after AEO, MRA and GNC! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ONCE </strong>the
Authorized Economic Operator (AEO) is in place, the next step is the MRA – the <strong>Mutual
Recognition Agreement</strong> (MRA). We may soon have an MRA with the USA,
which would help hassle-free Customs clearance of Indian goods in the United
States. At present every consignment from India is scanned in US leading
to delayed delivery. Under the MRA, USA will believe Indian AEO and allow
clearance without inspection. The AEO scheme is actually one to facilitate
MRA. Once the AEO scheme is successful, we can have MRA with several countries. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Globally Networked Customs (GNC):</font></strong> The next step is Globally Networked Customs (GNC). GNC would facilitate import and export through streamlining of information exchanges between Customs Organisations and reduction in transaction costs by dispensing with the production of the same information to multiple administrations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GNC has the potential to fundamentally change the way customs administrations interact - seamless and efficient customs-to-customs, customs-to-business and business-to-business transactions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The present Chairman of the CBEC, Dutt Mazumder is a globally recognized Customs expert and under his leadership, Indian customs should be a leader in these major steps forward. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Globally Networked Customs (GNC) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> WCO is to have its 8 th meeting on Globally Networked Customs (GNC) from September 5 to 7. Why GNC? Today, Customs Administrations worldwide have more than 100 different documents and 100 different types of equal data sets. <strong>Imagine</strong>: 1 document worldwide, covering import and export, 1 data set, 1 single access point for trade to introduce their declarations. This would be a tremendous saving in costs for both Trade and Customs. This would be the ultimate facilitation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Vision:</strong> <em>A Globally Networked Customs (GNC) is an inclusive, interconnected Customs to Customs information-sharing system to support and improve the functioning of the international trading system, national economic performance, and the protection of society and fiscal management. A GNC will reduce the compliance burden for legitimate traders, and enhance enforcement through the sharing of information and intelligence.</em> </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The position today : </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Borders are often invisible in commercial transactions </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Purchase order is sent to a supplier in another country </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Supplier prepares documents to send the shipment: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- invoice </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- packing list </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- bill of lading </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- certificate of origin </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- export declaration </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Carrier prepares a cargo control document (manifest/waybill) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Carrier "forwards" that document, along with shipper information, to the importer or customs broker </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The requirements for cargo security have changed the way we look at cargo information </font></p>
</blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This still isn't sufficient in many countries for release/entry to occur; additional information required from the importer includes: </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Tariff classification; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Applicable tariff treatment; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Rate of duty; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Value for duty; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Value for tax; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Tax payable; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Excise tax; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Excise duty; and </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Anti-dumping duty. </font></p>
</blockquote>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some problems with this are: </font></strong></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Country of origin not shown </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Additional charges not shown </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Goods poorly described </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Merchandise not properly marked </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Missing permits, certificates </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Incomplete transportation documents </font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All these difficulties will be history once GNC is in place. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Clarification on levy of service tax on distributors/sub-distributors of films & exhibitors of movie - Board invites comments </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2009/sercir109.htm" target="_blank">Circular No. 109/03/2009 dated 23.02.2009</a></strong></em>, CBEC clarified as follows: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Screening of a movie is not a taxable service except where the distributor leases out the theater and the theater owner get a fixed rent. In such case, the service provided by the theater owner would be categorized as 'Renting of immovable property for furtherance of business or commerce' and the theater owner would be liable to pay tax on the rent received from the distributor. The facts of each case and the terms of contract must be examined before a view is taken.” </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC directed that pending cases may be disposed of accordingly. In case any difficulty is faced in implementing the said instructions, the same may be brought to the notice of the Board. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Subsequent to Circular No. 109 dated 23.02.2009, temporary transfer or permitting the use or enjoyment of, any copyright defined in the Copyright Act, 1957 (14 of 1957), except the rights covered under sub-clause ( a ) of clause (1) of section 13 of the said Act were made taxable w.e.f. 01.07.2010 under the sub-clause (zzzzt) of Sec 65(105) b y the Finance Act of 2010. Also, for the words ‘operational assistance for marketing', the words ‘operational or administrative assistance in any manner' were substituted in the clause (104c) of Sec 64 of the Act by the Finance Act, 2011, w.e.f. 01.05.2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the light of these changes in the law and Circular No 109 dated 23.02.2009, representations were received by the Board requesting for a clarification on taxability of consideration earned by the distributors/sub-distributors/area distributors of Indian & Foreign films in the form of ‘revenue share' from the exhibitors of the movie, and on revenue retained as percentage by the exhibitors of the movie from the sale of tickets have been received from certain sections of service providers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After examining the relevant provisions of law, CBEC has come out with the following propositions in the form of a draft Circular seeking comments:</font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><em><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Type of Arrangement</font></strong></em></p></td>
<td valign="top"><p align="center"><em><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Movie exhibited on whose account </font></strong></em></p></td>
<td valign="top"><p align="center"><em><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appropriate Service Tax Classification </font></strong></em></p></td>
</tr>
<tr>
<td rowspan="2"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Principal –to – Principal Basis </font></em></p> </td>
<td valign="top"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Movie being exhibited by Theatre Owner or Exhibitor on his account – i.e. the copyrights are temporarily transferred</font></em></p></td>
<td valign="top"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax under Copyright Service to be provided by Distributor or Sub-Distributor or Area Distributor or Producer etc, as the case may be </font></em></p></td>
</tr>
<tr>
<td valign="top"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Movie being exhibited on behalf of Distributor or Sub-Distributor or Area Distributor or Producer etc – i.e. no copyrights are temporarily transferred </font></em></p></td><br>
<td valign="top"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax under Business Support Service / Renting of Immovable Property Service, as the case may be, to be provided by Theatre Owner or Exhibitor </font> </em></p></td>
</tr>
<tr>
<td><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Profit / Revenue Sharing </font></em></p></td>
<td valign="top" colspan="2"><p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service provided by each of the person i.e. the ‘new entity' [if it acquires the character of ‘person'] / Theater Owner or Exhibitor / Distributor or Sub-Distributor or Area Distributor or Producer etc, as the case may be, is liable to Service Tax under respective service head </font></em></p></td>
</tr>
</table>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board understands that the Circular dated 23.02.2009 has been misinterpreted to exclude all ‘revenue sharing' arrangements from the levy of service tax. Even though the arrangement entered into by the two entities is on ‘revenue share' basis, the nature of service provided by the theatre owner to the distributor does not change owing to operation on revenue share basis. The nature of arrangement entered amongst them is not a determining factor for leviability of service tax. Remuneration or payment arrangements on basis of fixed or revenue sharing or profit sharing or hybrid versions of these may exist. However, the nature of transaction determines the leviability of service tax . Each case may be looked into on its merits and decision be taken on case to case basis. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The arrangements mentioned in this Circular will apply mutatis mutandis to similar situations across all the services taxable under the Finance Act. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The clarification given in the CBEC Circular No 109/03/2009 dated 23.02.2009 stands amended to the extent it is contrary to the present Circular. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chambers, trade, industry and field formations are requested to go through the Circular and offer their comments, views and suggestions.” </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has requested all the stakeholders to post their comments, views and suggestions on the above propositions on or before <strong><u>23rd September 2011</u></strong>. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/circular_movie_theatres.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Draft Circular F.No.354/27/2011-TRU. , Dated: August 19, 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"> – Tuesday's cases</font></strong></font></strong></font></p>
<p><strong><font color="#663399" 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">Income Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income tax - Whether mere admission of appeal before High Court can save assessee from levy of penalty u/s 158BFA - NO, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> <strong>questions before the Tribunal are</strong> - Whether when assessee fails to declare the undisclosed income in block return, and the additions made by the AO based on the seized materials are sustained, penalty is warranted in such a case - Whether mere admission of an appeal before the High Court can save an assessee from the levy of penalty. The verdict goes against the assessee. </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">Neither any show-cause notice has been issued under section 11A nor any order confirming duty has been passed under section 11A, therefore, there are no dues of duty and hence section 11 of the CEA, 1944 cannot be invoked – attachment of finished excisable goods set aside - Revenue appeal dismissed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> section 11A, the Government has power to recover the duty and any sums of any kind payable to the Central Government under any of the provisions of Act or of the Rules. In this case the demand of duty is not under any rules or Act except the provisions of Section 11A and as per the section 11A of the Act for recovery of duties, a show-cause notice is to be served on 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">Even prior to 19.04.2006 Service Tax on GTA service cannot be paid through CENVAT credit but has to be paid only through PLA: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PROCEEDINGS</strong> were initiated on the ground that the respondent wrongly debited service tax to <em>CENVAT credit</em> account amounting to Rs.80,942/- instead of paying through PLA. Subsequently, recovery was ordered and penalties were imposed. Since the appeal filed by the manufacturer was allowed by the Commissioner (Appeals), Revenue is before the CESTAT. </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>
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