TIOL-DDT 1691 · 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 1691</font><br>
13.09.2011<br>
Tuesday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Law - Arbitration Exempted </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has exempted service by an arbitral tribunal, in respect of arbitration, falling under item (iii) of sub-clause (zzzzm) of clause (105) of section 65 of Finance Act, 1994. This exemption comes into force with effect from 12 th September 2011. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2011/stnot11_045.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 45/2011 – Service Tax., Dated: September 12, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Voluntary Payment of Duty before finalisation of Provisional Assessment - CBEC Clarifies</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CAN</strong> an importer or exporter be allowed to pay customs duties voluntarily in the period intervening provisional assessment and final assessment? This was a question before the Board.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board clarifies that it can be permitted subject to the condition that </font></p>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Such duty should be paid along with interest, till the date of payment.
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The term and conditions of the bond and the amount of security or surety furnished at the time of provisional assessment shall remain unchanged; and
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ No refund of duty will be granted till the assessment is finalised. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board further clarifies that that once duty with interest is paid before finalization, no further interest is payable on the already paid amount. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Does it require a Board Circular for this? Isn't it simple logic? Not with the Revenue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some five years ago, this was an issue before the Mumbai Bench of the CESTAT in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2006/2006-TIOL-1972-CESTAT-MUM.htm" target="_blank"><font size="1">2006-TIOL-1972-CESTAT-MUM</font></a></strong><font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2006/2006-TIOL-1972-CESTAT-MUM.htm">,</a></font> wherein it was held that when duty is paid before finalization of provisional assessment, no interest is payable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Very recently, in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2011/2011-TIOL-721-CESTAT-MUM.htm" target="_blank"><font size="1">2011-TIOL-721-CESTAT-MUM</font></a></strong>, the Tribunal again referred to the 2006 decision and allowed the appeal of the assesse. Interestingly, the Department was pursuing the interest for the last so many years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the latest Circular from the Board will persuade the learned Commissioners in the field to desist from creating such futile litigation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, the Board clarification is on Customs. The field officers can still take a stance that it does not apply to Central Excise! </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/cuscir11_040.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 40/2011 - Cus., Dated: September 09, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Exemption to Sub-brokers - Expanded </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Notification No. 31/2009-Service Tax, dated the 1st September, 2009, <em>the taxable service referred to in sub-clause (zzb) of clause (105) of section 65 of the Finance Act,1994, provided by a sub-broker, to a <strong>stock-broker</strong> as defined in clause (101) of Section 65 of the Finance Act,1994, in relation to sale or purchase of securities listed on a registered stock exchange</em>, is exempted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the words, <em>“or authorised person, as the case may be, ”are added after,“ <strong>stock-broker</strong>” . </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now services provided by a sub-broker or authorized person, are exempted. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2011/stnot11_044.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 44/2011 – Service Tax., Dated: September 09, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP –Export of Cotton – Performance guarantee, no more required </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the entries against Sl. No. 161 A in Chapter 52 of ITC(HS) Classification. Export of cotton [ITC(HS) Codes 5201 & 5203] will continue to be free subject to registration of contracts with DGFT. Performance guarantee (as was given in Notification No. 63 of 04.08.2011) will no longer be required.</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not074.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 74(RE–2010)/2009-2014, Dated: September 12, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs – CRGO Steel Exempted from Additional Duty of Customs </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended Notification No. 20/2006-Customs, dated 1 st March 2006, to exempt Cold rolled sheets of grain- oriented (CRGO) silicon-electrical steel for manufacture of transformers, from the additional duty of Customs leviable under Section 3(5) of the Customs Tariff Act.</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_087.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 87/2011-Cus, Dated: September 09, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Para Nitroaniline </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has imposed anti dumping duty on Para Nitroaniline, originating in, or exported from, People's Republic of China. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anti-dumping duty imposed shall be effective for a period of five years (unless revoked, superseded or amended earlier) from 09 September 2011 and shall be payable in Indian currency. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_088.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 88/2011-Cus, Dated: September 09, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CAT Quashes Appointment of AK Basu as CBDT Member - Laxman Das to be considered </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LAXMAN</strong> Das, Chief Commissioner of Income Tax, a 1974 batch IRS officer has challenged the selection and appointment of AK Basu as Member of CBDT, on the ground that Basu did not have a residual service of one year on the date of vacancy. The Central Administrative Tribunal has quashed the selection and appointment of Basu as it was illegal. The Tribunal directed hat the Review Selection Committee shall be convened to consider the application of Laxman Das for the post of Member-CBDT within a period of three months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If Laxman das is considered and appointed to the Board, he would be senior to all the Members including the Chairman and would be the obvious choice for the next Chairmanship. He will retire in July 2012. Will he make it the top slot in the CBDT before that? Now the Government has to decide whether to consider him for appointment or take the legal battle further. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=78&filename=pitara/sercaselaw/caselaw/2011/2011-TIOL-02-CAT.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please Click here for the CAT Order</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"> – Wednesday'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">Whether amendment brought out by Finance Act, 2010 to Sec 40(a)(ia) is remedial and curative in nature, and is therefore retrospective in operation - NO, rules ITAT SB</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee is a company engaged in the business of manufacturing of medium-sized ships, barges, tugs etc. A note to the computation of income was attached by the assessee stating that the provisions of section 40(a)(ia) were directory and not mandatory. The AO noted that the assessee failed to deposit tax deducted at source within the specified time. On being show caused, it was stated that the amount of tax deducted at source was paid before the filing of return of income u/s 139(1) of the Act and hence no disallowance of expenses was called for u/s 40(a)(ia). Not convinced, the Assessing Officer made disallowance u/s 40(a)(ia). </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">Physician Samples - Valuation on transaction value is correct - Appeals allowed: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PHYSICIAN</strong> Samples manufactured and cleared to brand owners/buyers on principal to principal basis for a consideration and which are further distributed/delivered by the buyer free of cost to physicians/doctors – Valuation on transaction value is correct. </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">Granting refund to exporters on taxable services that he received and used for export does not require verification of registration certificate of supplier of service - Appeals allowed with consequential relief: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants have exported excisable goods falling under chapters 51 & 55 of the CETA, 1985 to various countries. In pursuance of Notification no. 41/2007-ST dated 6.10.2007 they filed claims for refund of service tax paid by them on various specified services used in relation to goods exported out of India. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of cotton yarn - Challenge to DGFT Circular No17(RE-2010) fails - HC of Calcutta rules that conditions and modalities for fixing quota prescribed vide said circular did not amount to amendment of FTP</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CIRCULAR</strong> lays down the condition that the exporters with export of cotton yarn in the previous financial year alone will be granted quota - The selection of existing exporters who continued with export till 2009-10 is neither arbitrary nor discriminatory nor violative of Article 14 of the Constitution of India - The Circular lays down the matters of detail within the existing policy, which do not amount to amendment of the Foreign Trade Policy. </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>
<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"><strong> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></strong></font></p>
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