TIOL-DDT 1704 · the untouched capture
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<!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 1704 </font><br> 30.09.2011 <br> Friday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Renting of Immovable Property - Supreme Court Stays Recovery </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YESTERDAY</strong>, <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=13310"><strong>DDT </strong></a>reported that the matter is in appeal before the Supreme Court. It seems the Board was ready with a circular to the field to recover the Service Tax from all the petitioners, who were enjoying a temporary stay from the Bombay High Court till 30th September. It was known to everyone (except the Government of course) that the petitioners, who lost the case in Bombay High Court, would be approaching the Supreme Court with an SLP before 30th September. That is what happened. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court has: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Granted Leave (SLP) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Allowed the appeals to be heard on the SLP Paper Books. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Granted permission to the Petitioners before the High Court to file individual applications for interim relief. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Directed that no coercive steps shall be taken against the petitioners for recovery of arrears of service tax due on or before 30th September 2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Clarified that there is no stay of imposition of service tax under sub-clause (zzzz) of clause (105) of Section 65 read with Section 66 of the Finance Act, 1994 (as amended), insofar as the future liability towards service tax with effect from 1st October 2011 is concerned. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the petitioners get a respite till the next date of hearing – 14th October 2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But finally, what is going to happen? Do they hope to succeed in the Supreme Court? Even if they do, will the Government keep quiet? Are they trying to salvage interest and penalty? Is litigation an academic exercise? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the record, not a single tax out of the more than a hundred services on which tax had been imposed, went out of the statute as a result of litigation and the highest Court has upheld all retrospective legislation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though the Revenue Department must have been taken aback by the decision of the Supreme Court, they will have the last laugh – and they know it! </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/sc/2011/2011-TIOL-93-SC-ST.htm" target="_blank">2011-TIOL-93-SC-ST</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exchange Rates for October 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 October 2011. </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=24&filename=notification/custom/2011/cnt11_070.htm" target="_blank">CBEC Notification No. 70/2011-Cus.,(N.T.), Dated: September 28, 2011 </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Procedure for Electronic Filing of Excise and Service Tax Returns </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has informed the Commissioners and Chief Commissioners that DG (Systems) has prepared comprehensive instructions outlining the procedure for electronic filing of Central Excise duty and Service Tax returns and electronic payment of taxes under ACES. These instructions outline the registration process for new assessees, existing assessees, non–assessees and for Large Taxpayers Unit assessees, steps for preparing and filing of return, use of XML Schema for filing dealer's return, procedure for obtaining acknowledgement of e-filed return, procedure for e-payment etc. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the senior officers to <em>sensitize the <strong>concerned</strong> officers as well as the trade and industry regarding the said instructions.</em> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board also requests that the trade and industry may be provided all assistance so as to help them in adopting the new procedure. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">How will these officers provide assistance when they themselves do not know what the procedure is? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board should make every officer file an electronic return successfully before they ask the trade to do so. Utter confusion is in store next week and after that. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2011/excircular956.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 956/17/2011-CX, Dated : September 28, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">E-Filing - Assessees Beware - Technical Delay Will Not Be Tolerated </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BETTER</strong> start filing the return from tomorrow itself; you don't know when you will be successful. The DG, Systems categorically states: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>It is the legal responsibility of the assessees, who are required to file returns, to file it within the due date as prescribed under law. It may, however, be noted that merely uploading the returns will not be considered as returns having been filed with the department. A return will be considered as filed, when the same is successfully accepted by the application as “Filed” and the relevant date for determining the date of filing of return will be the date of uploading of such successfully “filed” returns. In case a return is “rejected” by the application, the date of uploading of the rejected return will not be considered as the date of filing, rather the date of uploading of the successfully “filed”, return (after the assessee carries out necessary corrections and uploads it again) will be considered as the actual date of filing. </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case the assessee experiences any difficulty in transacting in ACES such as filing of return, the assessees may lodge a complaint with the ACES Service Desk or the department by e-mail and/or by telephone and obtain a ticket no as an acknowledgement from the department. However, mere lodging of complaints with the ACES service desk will not be a valid ground to justify late filing of returns. If the difficulty is not on account of problems at the assessee's end, and can be clearly attributed to the department's IT infrastructure such as problems in accessing Central Board of Excise and Customs ACES application due to server, network or application being down, proportionate time will be deducted from the date of uploading of successfully “filed” returns to ascertain the actual date and time of filing of the return. Since the department maintains logs of such technical failures, <strong>in case of any dispute, the decision of the department will be final</strong>. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>What is the validity of unsigned returns</strong>? Obviously, the electronic returns are not signed. What then is their legal validity? DG, Systems clarifies: </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ACES application is designed to accept digitally signed documents. However, in the beginning this functionality is not going to be activated. Pending its activation, the electronic returns will be filed into ACES without digital signatures. Hence, wherever the returns are submitted through ACES there will not be any requirement to submit signed hard copy separately . </font></em></p> <p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Annexure to <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2011/excircular956.htm" target="_blank">CBEC Circular No. 956/17/2011-CX, Dated : September 28, 2011 </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Transferred Officers Not relieved - Board is Very Serious! </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHAT </strong>does the Board do when its orders are disobeyed with despicable regularity by the field? It gets <strong>serious</strong> and conveys the same to the field. What happens when it is disregarded with more contempt? Board gets <strong>very serious</strong>. What happens after that? Absolutely Nothing!!! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board had issued transfer orders of Assistant Commissioner/Deputy Commissioner/Joint Commissioner/Additional Commissioner/Commissioner in May, June and July 2011 and had directed that the officers should be relieved immediately and compliance reported to Board. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has learnt that despite follow up instructions, some officers have still not been relieved. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the Chief Commissioners to review the status and confirm compliance of the Board's orders. Board wants this to be given utmost importance. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board will be <strong>very serious</strong> if the transferred officers are not relieved by today. Board mildly reminds that the disobedient officers as well as their controlling officers will be liable to a<em>ppropriate disciplinary action</em>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Do you think anyone will be punished? No Chance! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">How do you run a Department with disobedient senior officers? How will these officers inculcate discipline among their subordinates? You don't obey your bosses, you have no respect for the judiciary and you want your assesses to follow all your directions – Strange are the ways of these babus!. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why can't the Board give a direction in the transfer order itself that the transferred officers automatically stand relieved on a particular date? </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/transferred_AGT_2011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No A-22012/03/2011-Ad.II, Dated : September 28, 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"> – Monday'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">Central Excise </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Payment of duty by TR-6 challan and not by Internet banking - Violation of procedural rule cannot be condoned: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VIOLATION </strong>of procedural rule cannot be condoned because if such argument is accepted all procedural rules will become meaningless and Government will not be able to frame any procedure, which may be necessary in public interest . </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 when all rights in property are relinquished, and possession is also handed over to buyer, it can be said that transfer has taken place, and hence gains attributable to such transfer are taxable in that year - YES: ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> acquired certain immovable property in Navi Mumbai by virtue of a lease agreement dated 20/9/2000. In October 2002 Assessee entered into an agreement (namely MOU) with some developer for development of the property and as per the terms of the MOU the developer deposited the agreed consideration in Escrow A/C as directed by the assessee. In November 2002, assessee entered into a tri-partite agreement with some society for transfer of his rights in favour of the society. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">No requirement to pre-deposit amount of redemption fine while filing appeal: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the provisions of section 129E, any person desirous of appealing against the decision or order, shall pending the appeal, deposit with the proper officer duty and interest demanded or the penalty levied. In view of the provisions of Section 129E of the Customs Act, there is no requirement to pre-deposit the amount of redemption fine for filing appeal before the Tribunal.</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 align="justify"><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>