TIOL-DDT 1744 · the untouched capture
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<td background="http://www.taxindiaonline.com/RC2/image/ddt/ddt-7yr-in-bg.jpg"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1744</font><br>
01.12.2011<br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT Completes Seven Years of Continuous Doses</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>AFTER </strong> seven years and 1744 editions of non-stop <strong>DDT</strong>, in all humility all that I can say is THANK YOU. <strong>DDT</strong> thanks the Netizens who have patronized this column, the Government (especially the two Revenue Boards) who kept <strong>DDT</strong> alive for seven years and 1744 issues and all others who made this possible . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT </strong>is all about informing the stakeholders and trying to make the Government more responsive and responsible. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the first DDT on 01.12.2004, we presented to you <strong>DDT as yet another experiment in TIOL's incessant endeavour to provide you with the best.</strong> </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <strong>endeavour</strong> continues – with your support. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tobacco kills - New Pictorial Health Warning - Customs Instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Cigarettes and other Tobacco Products (Packaging and Labelling) Rules, 2008 Rules prescribe the manner in which the specified health warning shall be displayed on the tobacco product packs covering all types of tobacco products produced, supplied, imported and distributed in India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A set of <em>new pictorial health warning</em> has been issued by the Ministry of Health & Family Welfare vide Notification G.S.R. No. 417 (E) dated 27 th May, 2011 which shall come into force from 1st December, 2011. Accordingly, all the tobacco products manufactured / packaged / <strong>imported</strong> for sale in India have to bear the new specified health warnings as prescribed in the said Notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC instructs the Customs field formations dealing with clearance of these products to ensure strict compliance and implementation of the specified health warning on the cigarette and other tobacco products. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/instruction11_024.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No. 528/133/2011-STO (TU), Dated : November 30, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Implementation of The Pneumatic Tyres and Tubes for Automotive Vehicles (Quality Control) Order 2009 - CBEC Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REPRESENTATIONS</strong> were received by the Board on the implementation of Pneumatic Tyres and Tubes for Automotive Vehicles (Quality Control) Order 2009, which was issued by Ministry of Commerce and Industry under Section 14 of the Bureau of Indian Standards Act, 1986 and which came into force w.e.f. 13.05.2011, in respect of Pneumatic Tyres.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board desires that the field formations may verify BIS Standard Mark to ensure before clearance that imported pneumatic tyres (which include pneumatic tubes) adhere to the specified standard in terms of the Pneumatic Tyres and Tubes for Automotive Vehicle (Quality Control) Order, 2009. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/instruction11_023.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">F.No. 528/109/2011-STO (TU)., Dated: November 29, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value increased for Brass Scrap </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has increased the tariff values of Brass Scrap (all grades) from USD 4048 to USD 4125 and changed the tariff value of poppy seeds from USD 2117 to 2117. <strong>[</strong><font color="#FF6633"><strong>Actually there is no change but the Government Notification says it is amended from 2117 to 2117!</strong></font><strong>]</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no change in the tariff value of other items. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_085.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 85/2011-CUS (N.T.), Dated: November 30, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Yet another Lady Member for CBEC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>President has appointed JM Shanti Sundharam as the new Member of CBEC in the vacancy arising on the retirement of Rajesh Dhingra yesterday. Now the CBEC will have four lady Members out of the total of six Members. Soon we may have an all women Board. We wish the new Member all success. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/office_order321_2011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GOI, MF DOR F. No. A.12026/13/2010 –Ad.I Dated November 29 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ketan Parikh and Co to Deposit Rs. 66 Crores - Loses in Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>KETAN</strong> Parikh, Kartik Parikh and M/s. Panther Fincap and Management Services Ltd, were imposed a penalty of Rs. 80 Crores, 12 Crores and 40 Crores respectively by the Special Director of Enforcement, Mumbai for FEMA violations. On appeal, the Appellate Tribunal directed the appellants to deposit 50 percent of penalty. The appellants pursued the matter in Delhi and Bombay High Courts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The matter reached the Supreme Court. The Supreme Court observed that there cannot be Forum Shopping and that the appellants deliberately concealed the facts relating to financial condition and directed the appellants to deposit the amounts as ordered by the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this Supreme Court order today. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=13756" target="_blank">Breaking News</a></strong>. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC issues draft Adjudication Manual </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has issued a draft for the New Adjudication Manual and has invited comments and suggestions. They have not indicated where to send the suggestions. The draft manual is old wine in old bottle with a few high sounding phrases thrown in like, “<em>The authorities exercising quasi-judicial function are duty bound to justify their existence and carry credibility with the people by inspiring confidence in the adjudicatory process. The public is entitled to have assurance that process of correction is in place and working. It is the requirement of law that correction process of judgments should not only appear to be implemented but also seem to have been properly implemented. These functions, therefore, cast a heavy responsibility on the officers invested with the powers of adjudication and confiscation to use it with utmost care and caution, free from any prejudice or bias, so that the innocent does not suffer by any injustice done to him and the real offender does not escape the punishment provided by law.</em>” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Manual says Adjudication Orders are to be issued immediately after personal hearing or within five days or within fifteen days or utmost within one month! And no adjudication authority follows this. Perhaps the Board will print thousands of copies of this manual, which nobody is going to read or follow! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe they should have a look at the Rail Manual. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/CBEC_Draft_Adjudication_Manual.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Draft Adjudication Manual. </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Government Invites Applications for CBDT Members Posts </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Department of Revenue in the Ministry of Finance has invited applications for the posts of Members of CBDT. Applications are to be sent through CBDT latest by 16.12.2011. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/deputation/Vacancies_cbdt_hrd.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT F. No. HRD/CM/152/3/2011-12/2782 –Dated November 30 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cost Accounting Records and Cost Audit - clarifications </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MINISTRY</strong> of Corporate Affairs has clarified that Companies (Cost Accounting Records) Rules, 2011 are not applicable to: </font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Wholesale or retail trading activities. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Banking, financial, leasing, investment, insurance, education, healthcare, tourism, travel, hospitality, recreation, transport services, business/professional consultancy, IT & IT enabled services, research & development, postal/courier services, etc. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Companies engaged in rendering job work operations or contracting/sub-contracting activities, and are paid only the job work or conversion charges. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Companies engaged in the production, processing, manufacturing or mining activities till such time they commence their commercial operations. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Ancillary products/activities of companies incidental to their main operations </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/General_Circular_No_67_2011.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA General Circular No. 67/2011 –Dated November 30 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cost Accounting Records and Cost Audit - clarifications on Compliance </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MINISTRY</strong> of Corporate Affairs has clarified that: </font></p>
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<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The companies covered under Companies (Cost Accounting Records) Rules, 2011 shall only file a simple compliance report as per the notified Form-B and no other details of cost records are required to be filed with the Government. </font></p>
</blockquote>
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<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ For companies coming under the purview of the Companies (Cost Accounting Records) Rules, 2011 and the Companies (Cost Audit Report) Rules, 2011 for the first time, cost records and cost details, statements, schedules, etc. shall be kept in good order for the next eight financial years beginning with first year of application of the said Rules.</font></p>
</blockquote>
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<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The term “Turnover” defined in the Companies (Cost Accounting Records) Rules, 2011 shall exclude taxes & duties. </font></p>
</blockquote>
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<p><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/General_Circular_No_68_2011.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA General Circular No.68/2011 –Dated November 30 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Filing of Balance Sheet in XBRL mode - Time extended </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>last date for filing financial statements in XBRL mode without any additional fee due to delay by those Phase-l class of companies (excluding exempted class) whose Balance Sheet date for FY 2010-11 is on or after 31.03.2011, has been extended up to 31.12.2011 or within 60 days of their due date of filing, whichever is later. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/General_Circular_No_68_2011.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA General Circular No.69/2011 –Dated November 30 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"> – Friday'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 adjustment made by Revenue u/s 245 can be treated as 'recovery' - YES, rules HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether the provisions of section 220(6) are applicable when an appeal is preferred before the ITAT; Whether adjustment u/s 245 can be regarded as “recovery”; Whether pendency of appellate proceedings by itself alone cannot be a ground not to refund the amount due and payable, and is not sufficient to pass an order of the adjustment for demand on issues which have been decided against the Revenue and whether the conduct and action of the Revenue in recovering the disputed tax in respect of additions on issues which are already covered in favour of the assessee by earlier orders of ITAT and CIT(A) is justified. And the verdict goes against the Revenue. </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">CHALR - New Regulations not applicable to those who passed examination earlier: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner was declared as "qualified" in the written and oral examination under Regulation 9 of 1984 of the Customs House Agents Licensing Regulations, on 31.12.1997 and 01.02.1999. When the petitioner was waiting for the Application for agents, the procedure for appointment was revised with effect from 23.02.2004. Therefore, the respondents are denying the right of the petitioner to have the licence stating that the petitioner is required to undergo exam again. </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">Purpose of providing input service tax distribution is in context of "common" services availed by various units of a single corporate entity - It is not a mechanism for transfer of credit from one unit to another: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>input service distributor can distribute the Service Tax paid on input services amongst its various units only if such services are used among the units where the credit is taken. First of all the service has to qualify as an input service and thereafter, the tax can be distributed. The purpose of providing input service tax distribution is in the context of common services availed by various units of a single corporate entity. It is not mechanism for transfer of credit from one unit to another. If the appellant wanted such facility, then they should registered themselves as a Large Tax Payer unit and only when they register as a Large Tax Payer unit, they could transfer credit from one unit to another. </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><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></td>
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