TIOL-DDT 1840 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14276"><img src="http://www.taxindiaonline.com/RC2/image/ddt/ddt_1794.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font><font color="#663399" size="3">TIOL-DDT 1840</font><br>
20.04.2012<br>
Friday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notifies ITC(HS) 2012 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has notified the '<em>Indian Trade Classification (Harmonised System) of Export and Import Items, 2012</em>' [ITC (HS), 2012]; Schedule-1 contains the Import Policy and Schedule-2 contains the export Policy. Against each item of these two schedules, the current import / export policy has been indicated; along with policy conditions to be fulfilled, if any. The ITC (HS) 2012 is notified incorporating the changes till now and after harmonising it with both the HS 2012 of World Customs Organisation and Tariff Schedule of Customs. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This comes into force with effect from 18.04.2012. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not111.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 111(RE-2010) / 2009-14 ., Dated: April 18, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs – Duty Rates for Electrical Energy Removed from SEZs </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has drastically reduced the effective rate of duty for Electrical energy (2716 00 00) removed from a Special Economic Zone into Domestic Tariff Area or non-processing areas of Special Economic Zone, using imported coal as fuel. The effective rates are as per Sl. No. 145 in the table to Notification No. 12/2012-Cus dated 17.03.2012. The old and the new rates are as: </font></p>
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<td valign="top" colspan="3"><p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Electrical energy removed from a Special Economic Zone into Domestic Tariff Area or non processing areas of Special Economic Zone - </font></strong></p></td>
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<td valign="top"> </td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00"><strong>Old Rates</strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00"><strong>New rates</strong></font></p></td>
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<td valign="top" colspan="3"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) if removed from power projects of 1000 MW and above, - </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) using imported coal as fuel; </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 100 per 1000 kwh </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 30 per 1000 kwh </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) using domestic coal as fuel; </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 30 per 1000 kwh </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) using domestic gas as fuel; </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 110 per 1000 kwh </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 120 per 1000 kwh </font></p></td>
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<td valign="top" colspan="3"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) if removed from power projects of less than 1000 MW,- </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) using imported coal as fuel; </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 40 per 1000 kwh </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) using domestic coal as fuel; </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) using domestic gas as fuel; </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 60 per 1000 kwh </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 60 per 1000 kwh </font></p></td>
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<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_026.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 26/2012 - Cus., Dated: April 18, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">1% Duty Goods - Now Entitled to Filing Quarterly Returns - Board Corrects error pointed out by DDT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THAT</strong> was pretty fast. In <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14707" target="_blank">DDT 1830 – 04-04-2012</a></strong>, we pointed out; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00">According to (the fourth) proviso in Rule 12 of the Central Excise Rules, 2002, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00">Provided also that, where an assessee is availing the exemption notification of the Government of India, Ministry of Finance (Department of Revenue) No. 1/2011- Central Excise, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (i) vide number G.S.R. 116(E) dated the 1st March, 2011 and does not manufacture any other excisable goods other than those specified in the said notification, he shall file a quarterly return in the form specified by notification by the Board, of production and removal of goods and other relevant particulars, within ten days after the close of the quarter to which the return relates. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00">Now that certain items like coal and fertilizers are covered under Notification No 12/2012 CE, the above proviso requires amendment. Last week they corrected the CENVAT Credit Rules, 2004, but they failed to notice that Central Excise Rules also require a correction. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It took the Board just a fortnight to correct this mistake. The Proviso has been amended to provide for quarterly return for the 1% duty items covered under Notification No. 12/2012. We thank the Board for the quick response, thereby avoiding unwanted litigation and trouble. It does not give us any pleasure in pointing out the mistakes of the babus, though some of them get very angry; but it does give us tremendous happiness when Board realizes its mistakes and carry out corrections. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2012/exnt12_23.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 23/2012 - CX., (N.T.), Dated: April 18, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Cut and polished Diamonds - Exemption </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Notification No. 9/2012-Cus dated 09.03.2012, cut and polished diamonds re-imported by gems and jewellery exporters are exempted. One of the conditions is that <em>Cut and polished diamonds so re-imported shall match with corresponding diamonds mentioned in the invoice at the time of exportation in terms of value, height, circumference and weight . Now a variance of ± 1mm/cent is allowed. </em></font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_027.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 27/2012 - Cus., Dated: April 18, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Half the Lawyers are so poorly trained that they are not properly performing their job! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CHIEF</strong> Justice Burger while addressing the American College of Trial Lawyers, District of Columbia, lamented on the state of the profession as under: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“… in some jurisdictions up to half of the lawyers who appear in court are so poorly trained that they are not properly performing their job and that their manners and their professional performance and their professional ethics offend a great many people. They are engaging in on-the-job training at the expense of their clients' interests and the public.” </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was noted by the Delhi High Court in a recent interesting case, taking solace in the fact that the problem is not confined to India alone. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court observed, “<em>The profession of law has always been known as a noble profession. It is not an empty rhetoric. Success in the profession is measured not by the fortune made but on the threshold of learning. Advocates are known as the officers of the Court. They are expected to possess not only intellectual purity but owe a responsibility to the Court to present the case dispassionately in an upright dignified ethical manner and to display fairness also to their colleagues and in all their dealings. The duty of a lawyer is to assist the Court in the administration of justice and an advocate must not indulge in any activity which may tend to lower the image of the profession in the Society.</em>” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant was employed, since the year 1992, as a Steno-typist in the Session Division, Gurgaon, Haryana. He in the academic year 1992-93 joined the LL.B Degree Course as a regular student of D.S. College, Aligarh, Dr. Bhim Rao Ambedkar University, Agra and was in the year 1997 awarded the LL.B Degree. He however continued to serve as Steno-typist and was in the year 1999 accused of an offence under The Prevention of Corruption Act, 1988 and convicted therefor on 15.02.2005. He was dismissed from service. The appellant on 13.05.2005, applied to the Bar Council of Punjab & Haryana (BCPH) for enrolment as an Advocate. However, while his said application was still pending consideration, he on 30.06.2005 also applied to the Bar Council of Delhi (BCD) for enrolment as an Advocate in Delhi and was so enrolled with the BCD on 07.07.2005. Thereafter, the appellant on 11.07.2005 applied to the BCPH for withdrawal of his application for enrolment therein. The Disciplinary Committee of the BCI vide memorandum dated 19.07.2008, recommended removal of the name of the appellant from the rolls of the BCD for the reason of the appellant while applying for enrolment with the BCD having concealed the material fact of his having earlier applied for enrolment with the BCPH.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court observed that the consistent conduct of the appellant of </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) seeking permission for doing LL.B course as a private student but joining the same as a regular student; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) to not disclosing to the Session Division, Gurgaon where the appellant was employed, thereafter also of having joined the LL.B course as a regular student; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) conviction for corruption; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv) first applying to BCPH and thereafter to BCD for enrolment; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v) having secured LL.B degree by attending classes by proxy and which finding as aforesaid has attained finality; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi) not informing BCD of rejection of his application for enrolment with BCPH by the BCI; and</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vii) applying again for enrolment with BCPH after his enrolment with BCD had been revoked, </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">speaks volume of the nature and character of the appellant. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the story of a typist who obtained a LAW degree fraudulently, but he is not alone in the act. Recently, it has come to notice that a retired Chief Commissioner had done his Law Degree from Calcutta University while working in Delhi. The University certified that he had 75% attendance. So, he was cheating either the University or his Department or both. And this officer had held some very important posts in investigation and enforcement! </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2012/2012-TIOL-246-HC-DEL-MISC.htm" target="_blank">2012-TIOL-246-HC-DEL-MISC </a></font></strong></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"> – 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"><font color="#FF6633"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of mutually contradictory claims by appellants before original authority, CESTAT and High Court, costs of Rs. 25,000/- imposed and matter remitted to CESTAT for verification of facts: HC</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the ordinary course, on account of the inconsistent stand taken by the assessee at every stage, the appeal would not have been entertained. However, with a view to ascertain the truth regarding the plea of provisional assessment, the order of the Tribunal is set aside and the matter is restored back to the file of the Tribunal subject to payment of costs of Rs. 25,000/-. It is further directed that the Tribunal should decide the matter afresh after recording a finding as to whether the clearances during the relevant period were in fact made under Rule 9B. </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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income
tax - Whether compensation in form of standing charges received by assessee
for remaining idle is eligible for deduction u/s 80IC - NO, rules Delhi
HC</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issue
before the Bench is - Whether compensation in form of standing charges received
by assessee for remaining idle is eligible for deduction u/s 80IC - Whether
such charges can be said to have been derived from manufacturing of the undertaking.
And the verdict goes against the assessee.</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">Commercial and Industrial Constructions Service - Definition of Commercial and Industrial Construction Service permitted Appellant to exclude cost of Construction of Dam, Road, Tunnels from Gross amount covered by EPC Contract - Larger Bench decision of Tribunal in BSBK Pvt. Ltd relied on - Stay Granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DEMAND</strong> is on Construction of Dams, Roads, Tunnels and Bridges done by the Appellant in connection with execution of Composite Contracts awarded by various agencies. Appellant contented that entire activity of obtaining approvals from Government and financial Institutions, obtaining other statutory clearances, preparation of Tender Documents, Site Clearances, Topographical Survey, Construction of Temporary buildings etc. to finishing work on Dams, Roads and other structures was undertaken under a Single Composite Contract. Appellant contended that they were entitled to exclude Dams, Roads, etc. from the taxable value in terms of the Definition of Commercial and Industrial construction service under Section 65 (25b) of the Finance Act, 1994. Appellant relied on the decision of the Larger Bench decision of the Tribunal in the case of CCE, Raipur Vs. BSBK Pvt. Ltd. </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>
<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"><strong> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></strong></font>
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