TIOL-DDT 183 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 183</font><br> 19 08 2005<br> Friday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Supreme Court upholds L H Sugar</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Service Tax on goods transport had a bumpy ride all through. In Laghu Udyog, the Supreme Court had struck down the tax on the service receiver instead of the service provider. But Government was not to relent. Several retrospective amendments were brought in the Act to collect the tax for a few months. This retrospective legislation was challenged in the Supreme Court and the Apex Court upheld the Parliament’s right to undo a Supreme Court judgement by proper legislation. In the meanwhile, the Tribunal in L H Sugar case - </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2004/2004-TIOL-39-CESTAT-DEL.htm">2004-TIOL-39-CESTAT-DEL</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> - held that all the retrospective legislations did not provide for any proper collection mechanism and so in spite of legislation, the tax could not be collected. Predictably the Government took the case to the Supreme Court and recently the Supreme Court upheld the Tribunal order in the L H Sugar case. Please see (</font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=42&filename=legal/sc/2005/2005-TIOL-105-SC-ST.htm">2005-TIOL-105-SC-ST</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">).<br> <br> TIOL had extensively covered the issue. Please see<br> <br> 1. <a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=1369">Our article Service tax on goods transport stranded on the highway? </a></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <a href="http://taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=1374">Our story SC upholds another retrospective legislation; Service tax on GTA is valid</a></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. GUJARAT AMBUJA CEMENT LTD Vs UNION OF INDIA (</font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2005/2005-TIOL-53-SC-ST.htm">2005-TIOL-53-SC-ST</a></font>)<font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <br> <br> 4. </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2004/2004-TIOL-1057-CESTAT-MAD.htm">2004-TIOL-1057-CESTAT-MAD</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> After all these rounds of litigation and retrospective legislation, the fact remains that the government failed miserably in collecting the tax for those few months in 1997-98. </font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Foreign Trade Policy</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. Several changes are made in the SION. - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2005/dgft05pn040.htm">PUBLIC NOTICE NO. 40 (RE:2005)/2004-2009., Dated: August 17, 2005</a><br> <br> 2. Rate of Drawback for HSD - is fixed at Rs. 1025/- per MT for HSD, supplied by domestic oil companies to EOU/SEZ units under various schemes as contained in Chapters 6,7 and 8 of the Foreign Trade Policy - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2005/dgft05not020.htm">NOTIFICATION NO. 20 /2004-09., Dated: August 17, 2005</a><br> <br> 3. Submission of Aayaat Niryaat Forms – DGFT clarfies that the form can be downloaded from the website. The form is also made EDI compliant. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2005/dgft05cir021.htm">POLICY CIRCULAR NO. 21 (RE-2005)/2004-2009., Dated: August 17, 2005</a></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Foreign Direct Investment (FDI) in Construction Development Sector</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> RBI informs that FDI will be permitted upto 100 per cent under the automatic route, in townships, housing, built-up infrastructure and construction development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure), subject to the guidelines.<br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=49&filename=notification/rbi/2005/rbi05cir007.htm">RBI CIRCULAR NO 07/RBI, Dated: August 17, 2005</a><br> .<br> <font color="#FF6666"><b>Until Monday with more DDT<br> <br> Have a Weekend. <br> <br> Mail your comments to</b></font> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>