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<p align="justify"><font size="2"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 1711 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
</font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>12.10.2011 <br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Wednesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax – Impossible to File Electronic Returns – Will CBEC Act? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FROM</strong> 1 st of October 2011, it is mandatory for all assessees to file their returns electronically. The Half-yearly return is due for filing by 25 th of this month, but the Board doesn't seem to have bothered about creating a hassle free system for filing these returns. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board, just like God, said, “Let there be electronic returns” and believed there would be electronic returns. But somewhere down the line, they forgot that the Point of Taxation Rules, 2011 had come into effect, changing the very basis of tax from receipt to accrual and while most of the assessees have grudgingly switched over to the payment of tax based on invoices (and not receipts), they now find it impossible to file the electronic returns, especially relating to the payments with regard to POT Rules. There is simply no column to show and calculate the amount of tax payable on the invoiced amount. The POT Rules virtually came into existence with effect from 1 st April 2011 and so far, the Board or the administrators of ACES have not thought of amending the Service Tax-3 Return or guiding the assessees on how to show these amounts. The Commissionerates are clueless and each officer is offering his own private views. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are receiving numerous calls from worried assessees all over the country, seeking help on filing the returns. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We can only request the Board to understand the agony and act quickly. With less than two weeks time to file the returns, unless the Board steps in immediately, there is going to be panic and chaos. Even if the Board comes up with the required amendments in the Form and issues clarifications, in the last moment, nobody will be able to file the returns as the whole system will be jammed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We request the Chairman, Member (Service Tax) and DG, Systems to intervene and set right the system urgently so that the poor assessees are not harassed for no fault of theirs. There is a strong demand, and justly so to extend the last date for filing this October Return. The Board should consider giving twenty-five days after notifying the new Service Tax-3 Form for filing this half-year return. The Government is not going to lose anything if the returns are not filed by 25 th October as the tax has already been paid. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We hope to report soon that the Board has reacted positively. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No Incorporation of Architect Companies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> MOCA has received representations that the Registrar of Companies and the Registrar of LLPs are incorporating the companies and LLPs in contravention to the provisions of the Architect Act, 1972. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In terms of Sections 36 and 37 of the Architects Act, 1972 as well as Rules and Regulations framed thereunder, only an architect registered with the Council of Architecture or a firm of Architects (a partnership firm under the Partnership Act, 1932, comprising of all registered architects) can represent itself as an architect or use the title and style of architect of practicing the profession of an Architect in India with the exception of a landscape architect and naval architect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Ministry has directed that incorporation of companies/LLPs where one of the objects of such entities is to carry on the business of architect should not be proceeded with till further orders. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/Circular_10oct2011.pdf" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MOCA Circular No. No. 17/165/2011-CL-V (pt.) Dated: October 10, 2011 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - Revised draft format of Exchange Control copy of Shipping Bills </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> a matter of trade facilitation and reduction in use of papers in customs processing, CBEC has proposed to revise the format of Exchange Control copy of Shipping Bills to include only the information which is deemed to be necessary and relevant for the banking as well as compliance with government regulations purposes. The suggestions from trade are invited on the revised format at the earliest. The suggestions can be sent to: <a href="mailto:icegate.feedback@icegate.gov.in">icegate.feedback@icegate.gov.in </a></font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/ex-ctrl-copy-draftfmt.pdf"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Specimen copy of the revised draft of Exchange Control copy of Shipping Bills </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs – Adjudicating Authority Appointed for DRI Case </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBEC has assigned the Show Cause Notice dated 26.03.2011 issued by Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, in the case of M/s Surya Lakshmi Cotton Mills Limited, Secunderabad and others, to the Commissioner of Customs & Central Excise, Nagpur Commissionerate, for the purpose of adjudication. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/order_09_2011.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Order in F.No.437/24/2011-Cus. IV Dated: October 11 2011 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Restatement of Indian Law </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CHIEF</strong> Justice of India, Justice S.H. Kapadia, yesterday released a set of Restatement of Indian Law in the presence of legal luminaries. These Restatements of Indian Law relate to three subjects: Legislative Privilege, Contempt of Court and Public Interest Litigation. Chairman of the Supreme Court Project Committee on Restatement of Indian Law Justice R.V. Raveendran, G. E. Vahanvati, Attorney General for India and the Director of Indian Law Institute, Professor S. Sivakumar were also present on the occasion. Chief Justice of India is also the Patron of Supreme Court Project Committee on Restatement of Indian Law. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> This Restatement of Indian Law would benefit the members of Bar, Bench, Academia, Civil Servants and general public to map the developments in the field of law and to comprehend its current status as the march of Indian law in the last six decades through judicial pronouncements, legislations and their amendments, rules, regulations and other policy measures needs to be restated with clarity of thought. With this objective, the Supreme Court Project Committee on Restatement of Indian Law and the Indian Law Institute had taken up the task of restatement of Indian law in important areas. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The project was essentially to codify Supreme Court judgments on important areas where there were no statutes and clarification was required. </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 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>Building of bus bodies on duty paid chassis amounts to manufacture of motor vehicle – appellant is, therefore, entitled to file refund claim of un-utilized Cenvat Credit - CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> terms of Ch. Note 5 to chapter 87, building of bus bodies on duty paid chassis amounts to manufacture of motor vehicle. Where the manufacturer is unable to utilize the credit accumulated in respect of the inputs used in the manufacture of excisable goods, which were exported, the manufacturer is entitled for refund subject to the conditions prescribed therein. It cannot be said that the appellants are not eligible to file refund claim. </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
Sec 275 disentitles AO from availing limitation period of six months from
end of month in which Tribunal order is received by AO so as to levy penalty
u/s 271(1)(c) - NO, rules High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Assessee, a Company, operates in the business of shares and securities. The AO noticed that the Assessee had claimed exemption of an expenditure of Rs.4,15,86,591/- being interest on loans raised for acquiring shares of various companies. The issue before the High Court is - <strong> </strong></font><font color="#000000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether
Sec 275 disentitles AO from availing limitation period of six months from
end of month in which Tribunal order is received by AO so as to levy penalty
u/s 271(1)(c)</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">. NO is the High Court's answer. </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>The date on which 'Let Export Order' is given is relevant date for determining rate of export duty - since export duty is Nil on 13.06.2008, exporter is not liable for payment of any export duty: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> regards the applicability of Notification 77/08, which is dated 13.06.2008, there is no doubt or dispute about the fact that Notification takes effect from the midnight of 12th and 13th June 2008. In the instant case, the ‘Let Export Order' has been given on 13.06.2008 and therefore the benefit of notification 77/08 dated 13.06.2008 shall apply to the exports made by the appellant and hence they are rightly entitled for the refund of exports duties wrongly paid by them </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="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </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"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p>
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