TIOL-DDT 1709 · the untouched capture
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<p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1709 </font><font color="#663399" size="2"></font><font size="2"><br>
</font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>10.10.2011 <br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Monday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Is marriage a Social Function or a Religious Function? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHY</strong> this question in DDT? From Birth to death (and perhaps even after that) we are under the tax net and normally one's birth is preceded by a marriage of two other persons. Organising the event of a marriage is a taxable service, providing a mandap for a marriage is a taxable service and erection of a pandal for a marriage is a taxable service. But mandaps and shamianas are taxable basically for social functions. <strong>Is marriage, then a social function </strong>? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shri Brahma Deva said, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"<strong>It is well settled position from the time immemorial that, marriage is sacred and sacrament as recognised under Hindu law. It is not a social contract </strong>."</font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please don't mistake Brahma Deva for Bhagavan Brahma. The above quote is an extract from the order delivered by GA Brahma Deva, Member CESTAT, in <em>Commissioner of Central Excise vs Krishnapur Mutt </em>- <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2003/2003-TIOL-285-CESTAT-MUM.htm" target="_blank"><em><font size="1">2003-TIOL-262-CESTAT-BANG </font></em></a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the Tribunal in <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2005/2005-TIOL-1201-CESTAT-MAD.htm" target="_blank"><font size="1">2005-TIOL-1201-CESTAT-MAD</font></a> </strong></em>observed, "<em>That marriage is a social function is not much in controversy in this case </em>". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government got the Parliament to amend the Statute by the Finance Act 2007, to insert an explanation - "<em>social function </em> includes <em>marriages </em>". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, the Delhi High Court passed an order in a writ petition praying for issue of a writ, order or direction in the nature of certiorari that: </font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. erection of a Pandal/Shamiana for marriage is in furtherance of religious ceremonies, rites and rituals which are to be performed for the religious function and should not be considered as social function for the purpose of service tax. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. no Service Tax be levied on erection of Pandal/Shamiana for Hindu marriage as it is providing the said activities/services to a religious function and by quashing the said amendments as unconstitutional. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Counsel for the petitioner raised a singular contention that no service tax can be levied on the erection of “pandal or shamiana, for Hindu marriage is fundamentally a sacrosanct and sacred religious function and can never be treated as a social function to invite the levy of service tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Delhi High Court observed, "<em>If the entire provision is properly understood, it is clearly discernible that Hindu marriage is not treated or regarded a social function per se. If the dictionary clause is appositely appreciated, there can be no trace of doubt that only when a “pandal or shamiana, is used for marriage, it earns the status of “social function"because the service component is involved. It is worth noting, the statute itself postulates that marriage is to be regarded as a social function and full effect has to be given to the same. That apart, the pre-requisite is the use of “pandal or shamiana? and, therefore, the contention raised by the learned counsel that Hindu marriage is not a contract but a sacred institution and hence, no service tax is imposable treating it as a social function has to be repelled and we so do </em>."</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yet another Writ Petition challenging the levy of Service Tax is dismissed. <strong>DDT </strong> has been constantly reminding about the futility of challenging a levy that has been passed by Parliament. The litigation only adds up on interest and lawyers' fees and may sometimes even invite a penalty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you the High Court order today. Please see </font><font face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2011/2011-TIOL-642-HC-DEL-ST.htm" target="_blank"><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><em><strong>2011-TIOL-642-HC-DEL-ST</strong></em></font></a></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5083" target="_blank">Love is a word - marriage is a sentence </a><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5083">in DDT 562 - 01.03.2007 </a></font></strong></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No Chair <font color="#663399">man</font> for CBEC? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> Chairman
S Dutt Mazumder is to retire on 31 st of this month, and it is heard that
he has not shown interest in a possible extension. [<em>I remember a couple
of weeks before Justice Abichandani was to retire as CESTAT President, I
asked him about the rumour that he was trying for an extension. He immediately
called his wife and asked her to answer my question. She told me that even
if he was given an extension, he would not accept it - he had had enough! </em>]. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So most probably, we will have a new Chairman from 1 st of November. Not exactly! The grapevine has it that the Board is likely to have its first woman head from next month. So, it will be a Chairwoman or Chairperson as they say. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is not uncommon for the Government to overlook the senior most eligible officer
while making top appointments. In June 2011 Vinay Mittal supersed over 14
officers to become the Chairman of the Railway Board, when he was not even
a Member of the Board. Of course, this will create problems for the administration
where a senior member may not like to work under a junior as Chairman. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC already has three women Members and some more are likely to join soon. A lady as the chief and a few more ladies as members, will surely present a new look Board - better. <strong>Of course, women don't work as hard as men; they get it right the first time. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We will have to wait for some more time to know the final outcome. It seems the Committee of Secretaries is meeting on 18 th October to select the new Chairman or is it the new Chairwoman or Chairperson? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Committee on Black Money - CBDT Member to be Co-Chairman </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has constituted a Committee on 27 th May, 2011 under the Chairmanship of Chairman, Central Board of Direct Taxes (CBDT) to examine ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery. The Committee include Member (L&C), CBDT, Director Enforcement (ED), Director General of Revenue Intelligence (DRI), Director General (Currency), Joint Secretary (FT&TR), CBDT; Director,(FIU-IND) as Members. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee was to examine the existing legal and administrative framework to deal with the menace of generation of black money through illegal means including, inter alia, </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Declaring wealth generated illegally as national asset; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Enacting/amending laws to confiscate and recover such assets; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Providing for exemplary punishment against its perpetrators. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee was to consult all stakeholders and submit its report within a period of six months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, a CBDT OM states that the Committee <em>to examine ways to strengthen laws to curb the generation of black-money in India, its illegal transfer abroad and its recovery </em> shall be co-chaired by Member (Investigation), CBDT. Henceforth, the composition of the Committee shall be as under: — </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Chairman, CBDT - Chairman of Committee </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Member (Investigation), CBDT - Co-Chairman </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Member (L&C), CBDT - Member </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Director, ED - Member </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) DG, DR - Member </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) DG Currency - Member </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Joint Secretary (FT&TR), CBDT - Member </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) Joint Secretary, MoL - Member </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) Director, FIU-IND - Member </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(x) CIT (Inv.), CBDT - Member Secretary </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/cbdt_om_291_2011.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT F.No. 291/15/2011-IT (INV.I) (PART) Dated: October 04 2011 </strong></font></a></p>
<p align="justify"> </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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"></font><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Supplies to Indian Navy based on Commandant's certificate - Extended period of limitation- Matter referred to President: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MEMBER (J) </strong>: The appellant have filed the said declaration on the basis of a certificate issued by Indian navy. Therefore, it cannot be said that the declaration filed by the appellant is “willful mis-statement", hence the willfully in the absence of any intent on the part of the appellant extended period of limitation is not invocable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Member (T) </strong>: The appellant cannot take shelter in the argument that they had claimed the exemption on the basis of the certificate given by the Indian Navy. Therefore, it cannot be accepted that it was not their intention to evade the payment of duty by claiming the exemption. In this view of the matter, it has to be held that the demand of duty is not barred by limitation. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether interest paid to Income Tax Department on late payment of tax can be claimed as deduction while computing business income - NO, rules ITAT Third Member </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issues before the Third Member are - Whether the interest paid to the income tax department on late payment of tax can be deducted while computing the business income of the assessee and Whether the interest received from and paid to the income tax department can be adjusted or netted against each other. <strong>NO is the answer. </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Importers do not have an inherent right to challenge the determination of normal value - Findings of Designated Authority and Customs Notification No. 89/2009-Cus upheld: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> the whole, the grounds raised in the appeal by the appellants are not convincing enough to interfere with the impugned final findings and the resultant Customs Notification imposing anti dumping duty. On the other hand, the conclusion drawn by the D.A. are well reasoned and are designed to eliminate injury to domestic industry/ curb unfair trade practices of dumping without restricting imports and without affecting the availability of the subject goods to the domestic consumers. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day. </font></p>
<p align="justify"><font color="#FF6633" 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">vijaywrite@taxindiaonline.com </a></font></p>
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