TIOL-DDT 1783 · 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 1783</font> <br>
27.01.2012 <br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Definitive Anti Dumping Duty on Morpholine </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PROVISIONAL</strong> Anti Dumping Duty on Morpholine falling under sub-heading 29333917 originating in, or exported from, China PR, European Union and the United States of America was imposed by Notification No. 91/2011-Cus dated 20.09.2011. This notification was to be valid for a period not exceeding six months that is till 21.03.2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, based on the recommendation of the Designated Authority, the Government has imposed definitive anti dumping duty for a period of five years with effect from 24.01.2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequently, the Government has rescinded the <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_091.htm" target="_blank">Notification No. 91/2011-Cus dated 20.09.2011</a></strong>. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_009.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 09/2012-Cus,(ADD), Dated: January 24, 2012 and </strong></font></a></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_010.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 10/2012-Cus,(ADD), Dated: January 24, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Definitive Anti Dumping Duty on Geogrid/Geostrips/Geostraps </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BASED</strong> on the recommendation of the Designated Authority, the Government has imposed definitive anti dumping duty Geogrid / Geostrips / Geostraps made of polyester or Glass fiber in all its forms (including all widths and lengths) falling under Chapters 39, 55, 56, 59 and 70 originating in, or exported from China PR. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This anti dumping duty will be levied for a period of five years (unless revoked, superseded or amended earlier) from 24.01.2012. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_011.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 11/2012-Cus,(ADD), Dated: January 24, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">External Commercial Borrowings - Simplification of Procedure </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the ECB procedures, any request for cancellation of Loan Registration Number (LRN) given by the Department of Statistics and Information Management (DSIM), Reserve Bank of India or change in permissible end-use for an existing ECB is required to be referred by the AD Category-I bank to the Foreign Exchange Department, Central Office, Reserve Bank of India for necessary approval. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As a measure of simplification of the existing procedures, it has been decided to delegate powers to the designated AD category-I banks to approve the following requests from the ECB borrowers, subject to specified conditions: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>a) Cancellation of LRN:</strong> The designated AD Category-I bank may directly approach DSIM for cancellation of LRN for ECBs availed, both under the automatic and approval routes, subject to fulfilment of the following conditions:- </font></p>
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<blockquote><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ No draw down for the said LRN has taken place; and </font></blockquote>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The monthly ECB-2 returns till date in respect of the LRN have been submitted to DSIM. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>b) Change in the end-use of ECB proceeds:</strong> The designated AD Category-I bank may approve requests from ECB borrowers for change in end-use in respect of ECBs availed under the <strong>automatic route</strong>, subject to the following conditions:- </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The proposed end-use is permissible under the automatic route as per the extant ECB guidelines; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There is no change in the other terms and conditions of the ECB; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The ECB is in compliance with the extant guidelines; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The monthly ECB-2 returns till date in respect of the LRN have been submitted to DSIM. </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir069.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI A.P. (DIR Series) Circular No. 69 Dated: January 25, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">External Commercial Borrowings (ECB) Policy - Infrastructure Finance Companies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NON</strong> Banking Finance Companies (NBFCs) categorized as Infrastructure Finance Companies (IFCs) by the Reserve Bank and complying with the prescribed norms are permitted to avail of ECBs, including the outstanding ECBs, up to 50 per cent of their owned funds under the automatic route. ECBs by IFCs above 50 per cent of their owned funds are being considered under the approval route. The permitted end-use should be for on-lending to the infrastructure sector, as defined under the extant ECB policy. IFCs should also hedge their currency risk in full. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has now decided that the designated AD Category – I banks should certify the leverage ratio (i.e. outside liabilities/owned funds) of IFCs desirous of availing ECBs under the approval route while forwarding such proposals to the Reserve Bank of India. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir070.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI A.P. (DIR Series) Circular No. 70 Dated: January 25, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITAT - Practice by Former Members - Retired Members can practice before Benches where they have not worked - Till next hearing </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> passion of retired Members of the Tribunals (ITAT, CESTAT) to practice before the Tribunals is simply unbridled. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A few years ago, a retired Member of the CESTAT appeared before the CESTAT as a Counsel, a day after his retirement as Member. The then President of CESTAT told DDT that it was unethical – obviously he must have got the client while he was still a Member of the Bench. The President got the Government to amend Section 129 of the Customs Act, 1962 to insert a new sub-section (6) which stipulated that the President, Vice-President or other Member shall not be entitled to appear, act or plead before the Appellate Tribunal on <strong>ceasing to hold office</strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In P. C. Jain vs. UOI - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2009/2009-TIOL-185-HC-DEL-CESTAT.htm" target="_blank"><strong><font size="1">2009-TIOL-185-HC-DEL-CESTAT</font></strong></a>, the Petitioners (retired Members of CESTAT) contended that the provision in Section 129 (6) of the Customs Act, 1962 is ultra vires Articles 14, 19 (1)(g) and 21 of the Constitution in as much as the said provision is discriminatory and effects their right to livelihood. The petitioners also contended that members of other Tribunals like Income Tax Appellate Tribunal and Appellate Tribunal for Foreign Exchange are not disabled from practising before the respective Tribunals. These contentions were set aside and the High Court ruled that the provision barring retired Members of CESTAT from practising before the CESTAT is neither unconstitutional nor discriminatory. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By <strong>GSR 889 (E) NOTIFICATION Dated: June 3, 2009</strong>, the Government amended the ITAT (Recruitment and Conditions of Service) Rules, 1963 to bar retired Members, Vice President and President of ITAT from practising before ITAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This issue was a matter before a Special Bench of the ITAT in <em>M/s CONCEPT CREATIONS vs. ADDL CIT <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=39&filename=legal/itat/2009/2009-TIOL-571-ITAT-DEL-SB.htm" target="_blank"><font size="1">2009-TIOL-571-ITAT-DEL-SB</font></a></strong></em>, the Special Bench held that the amendment does not apply to Members who have retired prior to the date of publication of notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The same issue recently reached the Allahabad High Court and the High Court stayed operation of rule 13E as well as the judgment in the case of Concept Creations in so far as they impose a complete ban on the practice by retired members before the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Court held that it would be open for the retired members to practice before the Benches of Tribunal where they had not remained posted and held courts temporarily or on regular basis – till the next hearing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are told that even after the Delhi High Court judgment in P C Jain case, a retired CESTAT Member had appeared before the CESTAT as a consultant. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9209" target="_blank"><strong>1137–22.06.2009</strong></a>, questioned, “<em>Do the retired Members of Tribunals need to be told by the Court or declared by the Statute that they are not eligible to practice before the respective Tribunals? When a High Court judge retires from his/her position, if they intend to practice post retirement, they do not practice before any High Court or lower Courts but appear only before the Supreme Court. This not only enhances their stature but also protects the dignity of the Judiciary and the individual alike. Likewise, the retired Members of ITAT or CESTAT or for that matter any Tribunal should have voluntarily refrained from practising before the respective Tribunals or any forum lower to the Tribunals and practice before High Courts or Supreme Court.</em>” </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see
</font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2012/2012-TIOL-77-HC-ALL-SERVICE.htm" target="_blank">2012-TIOL-77-HC-ALL-SERVICE </a></em></font> </strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ TIOL story on April 17, 2009: <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8901" target="_blank"><strong>Former Members cannot practise in CESTAT - No unregulated right of practice - There was a time when a son would appear in court presided over by his father and no questions were asked - Former members' writ petition dismissed: Delhi High Court </strong></a>2.
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ ‘No Practice for Retired ITAT Members' - <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9209" target="_blank"><strong> TIOL-DDT 1137 22.06.2009 </strong></a>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9412" target="_blank"> <strong>Can retired ITAT Members practise in the ITAT – Special Bench to hear. - TIOL-DDT 1159 22.07.2009 </strong></a>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ TIOL story on September 17, 2009<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9678" target="_blank">: <strong>ITAT Members who retired prior to 3.6.2009 and Members who resigned before being confirmed can practice in Tribunal - ITAT envious of CESTAT: ITAT Special Bench </strong></a>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9704" target="_blank"><strong>TIOL DDT 1202 – 23.09.2009 </strong></a>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12703" target="_blank">ARE RETIRED MEMBERS OF ITAT ELIGIBLE TO PRACTICE BEFORE ITAT? MATTER ONCE AGAIN BEFORE ITAT SPECIAL BENCH </a></strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12703">- <strong>TIOL DDT 1640 – 29.06.2011</strong> </a></font></p>
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<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> All Crorepatis - but No IT Returns </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>STATE</strong> elections are round the corner and National Election Watch has reported that 99 candidates of Uttarakhand and 92 of Punjab have declared that they have NEVER filed IT returns, 42 of Uttarakhand and 47 of Punjab have not declared PAN details as mandated. There are many candidates in Punjab whose annual income is between 1 Crore and 5 Crores. Top three candidates with maximum assets but who have never filed IT returns are Karan Kaur of INC contesting from Muktsar with total assets of Rs 128 crore, followed by Ramanjit Singh Sikki of INC contesting from Khadoor Sahib and Gurpartap Singh Wadala of SAD contesting from Nakodar have total assets worth Rs 20.12 crore and Rs 13.71 crore respectively. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Uttarakhand, </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ 99 (36%) candidates out of the 278 candidates analyzed have declared that they have never filed ITR. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ For BSP 31 (44%) out of 70 candidates, UKD (P) 24 (55%) out of 44 candidates, BJP 20 (29%) out of 70 candidates and INC 10 (14%) out of 70 candidates, have declared that they have never filed ITR. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ 42 out of 278 candidates analyzed (15%) who are contesting in Uttarakhand 2012 Assembly Elections have not declared their PAN card details. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Out of the above 42 candidates who have not declared their PAN details, 6 candidates are Crorepatis. </font></p>
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<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tell the Tax Payer where his taxes go! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>On </strong>25th January, a conservative Member of the British Parliament introduced a Bill which would require Her Majesty's Revenue and Customs (HMRC) to send an annual statement to every taxpayer detailing how their taxes are being spent, broken down into areas of government spending. He claimed the statement would give taxpayers a "precise and accurate" way of telling how public money is spent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"This one piece of paper could make this Parliament more responsive to voters' demands while helping this government better explain the spending decisions it has chosen to make," he told MPs. </font></p>
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<td><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">The best way to win in court is never to end up there in the first place. </font></strong></td>
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<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">Deferred Sales Tax - Demand of differential Duty - Prima facie case - Stay Granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> availing the benefit of pre-payment of the amount of deferred sales taxes as per the provisions of Maharashtra Sales Tax Act, 1959 - Once the entire amount of deferred payment of sales tax has been pre-maturely paid, such payments, in the public interest, are considered as in discharge of deferred balance Sales Tax – definition of transaction value as under s.4 of the CEA, 1944 gets attracted – Prima facie case – Demand has no leg to stand - Waiver of pre-deposit - Stay granted.</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 transfers shares to non-resident purchaser who also enters into non-compete agreement, consideration received is required to be bifurcated attributing a part to non-compete fees - NO: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee, a shareholder of a closely-held company, owned and managed by Mandhana family for a number of years, entered into a joint venture arrangement with a Germany Company. The German company was acquired by a Dutch company and the Dutch Company acquired all the shares held by Mandhana family for a consideration of Rs 570 per share. All the shareholders in Mandhana family entered into an agreement with Dutch Company for the purpose of this transfer of shares, and one of the clauses in the agreement also provided that the transferor shall not carry on, or be interested in, any business which competed with the business of the share purchaser. </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">Appellant collecting consideration for plant operation and maintenance and discharging Service tax liability – Clients supplying electricity free of cost for said service – Such cost will have to be included in the value of the taxable services rendered: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> department was of the view that the cost of electricity supplied free by the client, should also be included in the value of taxable services rendered by the clients and accordingly, a show-cause notice was issued to the appellant demanding service tax amounting to Rs.3,31,43,598/- on the cost of electricity which was not included in the value of taxable service during the period January 2004 to July 2008. </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 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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