TIOL-DDT 1778 · 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 1778</font><br>
19.01.2012<br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">High Value Transactions - Income Tax Radar</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> income Tax Department is to launch a special drive from today to 20th March 2012 for verifying high value transactions (investments / deposits / expenditure) from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions. The Department will be sending letters to such persons asking them to furnish their PAN if they already have one, or apply immediately for PAN to NSDL / UTIISL if they do not have one. They will also be required to explain the source of the high value investments / deposits / expenditure, and whether these are properly accounted for / explained in the income tax return filed by them. Persons, who have not properly accounted for the high value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March 2012. For furnishing the information called for, visit to the tax office is not necessary. Information can be sent by speed / registered post. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In some cases, the tax officials may also visit the premises of the high value investors / depositors / spenders. In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed proforma. In case of any grievance or complaint, taxpayer may contact the assessing officer or the additional / joint commissioner or the commissioner concerned. The visiting tax official is required to furnish the telephone numbers of his supervisory officers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There are penal consequences of not obtaining PAN or reporting it. For not paying proper taxes, there can be penalty up to 300% of the unpaid tax, and also prosecution in some cases. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Essar Oil Loses Huge Case in Supreme Court - Taxing Statute to be construed liberally while exemptions to be interpreted strictly </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ESSAR</strong> was encouraged by the State Government to set up a major venture at Vadinar in Jamnagar District of Gujarat as a 100% export oriented unit for refining of petroleum products with a capacity of 9 Million Tons per annum at an estimated project cost of Rs. 1900 crores. It all started in 1990 and the project was embroiled in court cases and delays due to various reasons. The State Government had promised a sales tax deferment scheme. They had to lay a pipeline through a National Park, which was objected to by environmentalists, and there were several PILs in the High Court. As per the Scheme Essar was to start commercial production by 15.08.2003, but it could do so only on 26.11.2006 and the State Government refused to extend the due date. The case finally reached the Supreme Court. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court observed, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ It is well known that due diligence must be exhibited by the party to seek equity. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In case of ambiguity, a taxing statute should be construed in favour of the assessee, does not apply to the construction of an exception or an exempting provision, as the same have to be construed strictly. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ A person invoking an exception or an exemption provision to relieve him of the tax liability must establish clearly that he is covered by the said provision and in case of doubt or ambiguity, benefit of it must go to the State. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There is no question of equity here; an exemption is a stand-alone process. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Either an industry claiming exemption comes within it or it does not. </font></p>
</blockquote>
<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=14101" target="_blank">Breaking News</a></strong>. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value for Gold and Silver – Notification Amended</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> No. 36/2001-Cus(NT) dated 03.08.2001, fixes the tariff value for certain goods. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Notification is as follows: </font></p>
<div align="center">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TABLE</strong></font></p>
</div>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr valign="top">
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No.</font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item</font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD<br>
</font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Per Metric Tonne) </font></strong></p> </td>
</tr>
<tr valign="top">
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">447 </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">476 </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others – Palm Oil </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">462 </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">481 </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 20 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palmolein </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">484 </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others – Palmolein </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">483 </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></p></td>
<td valign="top"><p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">580 </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404 00 22 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td valign="top"><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4007 </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<td valign="top"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1207 91 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy seeds </font></p></td>
<td valign="top"><p align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1970 </font></strong></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This Notification was amended by Notification No. 3/2012-Cus(NT) dated 16th January 2012 by which Sl. No. 10 and 11 were added to the Table above to fix tariff value for gold and silver. </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods</font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value US $ </font></strong></p></td>
</tr>
<tr>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
</tr>
<tr valign="top">
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold, in any form in respect of which the benefit of Notification No. 3/2012-Customs dated 16.01.2012 is <strong>claimed </strong></font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">526 per 10 grams </font></p></td>
</tr>
<tr valign="top">
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11 </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form in respect of which the benefit of Notification No. 3/2012-Customs dated 16.01.2012 is <strong>claimed </strong></font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">953 per kilogram </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, this notification is again amended a day after the gold amendment to put gold and silver in a new table. All the existing items are in Table-1 and Gold and Silver are in Table-2. Further, the word, <strong>claimed</strong> is changed to <strong>availed</strong>. There is perhaps a more interesting and important reason. If you look at Col. 4 of the table to the notification, you will find the tariff value is in US Dollars per Tonne for all the items. Now, Gold and Silver are bunched into the same group whereas the tariff value for gold and silver is per 10 gms and per kg respectively and not per metric tonne. Perhaps they wanted to correct this also. Amending notifications (which have the status of LAW) is a casual job in the Board. They can coolly make a mistake today and correct it the next day. Who is going to pay for the tons of paper wasted? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_004.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 4/2012-Cus(NT), Dated January 17, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on PVC Resin 9 digit tariff number changed to 8 digits </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> 16 January 2012, the Government issued a notification amending the Anti Dumping Notification No. 70/2010-Cus by Notification No.8/2012-Cus(ADD) dated 16 th January 2012 and changed a tariff item number as 390042210. A day later realized that this tariff number has nine digits instead of the required eight. So, they issued a corrigendum correcting it to 39042210. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/corrigendum_12_add_08.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Corrigendum in F No. 354/88/2004-TRU (Pt-I), Dated January 17, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Who
is Appellate Authority For Order passed by DC of
Customs in SEZ? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> has received references from field formations seeking clarification regarding the jurisdiction of Commissioner (Appeals) in respect of orders passed by the Deputy Commissioner of Customs posted in SEZ as Specified Officer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chief Commissioner of Central Excise and Customs, Vadodara and the Chief Commissioner of Customs, Ahmedabad have taken the view that in terms of Notification No. 16/2002-Cus. (N.T.) dated 7.3.2002, the Commissioner (Appeals) has jurisdiction only in relation to an order passed by an officer subordinate to the jurisdictional Commissioner of Customs and therefore, since the Deputy Commissioner of Customs working as Specified Officer in SEZ is under the administrative control of Development Commissioner, any appeal filed with Commissioner (Appeals) against an order passed by the Specified Officer of an SEZ, cannot be entertained. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, it is seen that the scope of Section 128 of the Customs Act is wider in as much as it refers to any decision or order passed by an officer lower in rank than Commissioner (and not subordinate to Jurisdictional Commissioner) and thus the Specified Officer being AC/DC of Customs are lower in rank to that of Commissioner and hence there should be no bar to Commissioner (Appeals) deciding such appeals. BOARD DOES NOT KNOW THE ANSWER. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, it wants to know the views of the Chief Commissioners and the practice being followed in their jurisdiction. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/order_DGEP_219.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGEP F. No. DGEP/SEZ/219/2007, Dated December 27, 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">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Manufacture - ‘prefabricated structural components' for Delhi Metro - No duty payable: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>is not in dispute that this production is unique in nature and utility thereof is restricted to the location for which they are designed and not at any other place. The Tribunal has categorically said that there is no dispute that the components so manufactured by the respondents are intermediate products, duly manufactured at the specified yards, and transferred to the site for utilization thereof in elevated viaduct or tunnel. It is also noted that there is no dispute that the same are utilized in the completion of the work. The Tribunal has, therefore, come to the conclusion, that the Notification dated 17.02.2011 applies to the supplies in question and therefore no excise duty was required to be paid. The High Court also referred to the Circular No. 456/22/99–CX dated 18.5.1999 . </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 assessee has filed return, it can make changes in claims by filing revised statement of income sans filing a revised return u/s 139(5) - NO, rules HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Government of India as well as the State Government in their respective Policies decided to finance the Housing Sector and it was conceived that it will be done through NBFC. The State Government through its Housing and Urban Development Department decided to promote and float a Public Limited Company, the petitioner, of which 100% shareholding was with the State Government. Assessee submitted the return within due time disclosing a loss. AO issued notice u/s 143(2) and 142(1). Assessee filed a petition to the AO for revising its return of income. AO without taking this fact into consideration passed the order computing the income at Rs.22.52 crores and demanded Rs.7.58 crores towards tax, surcharge and education cess and also charged interest u/s 234B. </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">All refund claims except those mentioned under specific proposition of law [Para 99(ii)] laid down by Apex Court in Mafatlal Industries Ltd case, have to be and must be filed and adjudicated under provisions of Central Excise Act or Customs Act: Karnataka HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>assessee, a private limited company is engaged in providing loans to customers and registered with the department under the category of Banking and other financial services under Finance Act, 1994. They paid service tax on interest collected from customers based on self assessment. On realizing that the interest charged on loans and advances were not liable to payment of service tax, they preferred a refund claim on 01.12.2004 for refund of service tax paid for the period from July 2001 to August, 2004, under section 11B of Central Excise Act, 1944 read with section 83 of Finance Act, 1994. The lower authority after considering the entire material on record passed an order on 25.04.2005 allowing the claim in its entirety. </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>
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