TIOL-DDT 1842 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <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 1842 </font><br> 24.04.2012 <br> Tuesday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>We Are Twelve .... </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXACTLY</strong> twelve years ago, a young journalist from Delhi realised the need for speed in dissemination of information relating to taxation matters and thus was born <strong>TIOL</strong>. With hardly any capital other than intellectual brilliance, no infrastructure other than unlimited energy and no workforce other than passion and faith, TIOL took its roots and today after twelve years, no taxman's day is complete without logging on to <strong>TIOL</strong>. While we do not claim this as one of those success stories of entrepreneurship to find place as a case study in Management books, keeping the interest of the Netizens alive on a dry subject like taxation for 12 long years is certainly no mean achievement, modesty not withstanding. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had our share of bouquets and brickbats. The highest point of recognition was perhaps the invitation by the Standing Committee of the Indian Parliament to address them on legislative changes in taxation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our sole motto during these twelve years was to bring to the desktops of the Netizens, the latest developments in tax laws / case laws with speed, accuracy and reasonable clarity. On the proverbial “bridging the gap”, we had tried to ensure that the length of the bridge was the shortest possible. On many occasions, our citations were used by the assessees / revenue within a few hours of our reporting which underlines the need for minimising the time gap in information flow – there were many occasions when we carried Court judgements the next day (of pronouncement) with our incisive analyses. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On this occasion, we thank all the Netizens who supported us during the last twelve years and assure you that we will continue to serve you better. We seek your support as we enter the teens… </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT Felicitated in Vizag </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a Seminar hosted by the Tax Law Research Group, Visakhapatnam, on 21.04.2012, <strong>DDT</strong> was felicitated for entering the ‘Limca Book of Records' </font></p> <p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1824.jpg" alt="Legal Corner Icon" width="322" height="213" hspace="5" border="0" align="centre"></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Seen in the picture are S.C Choudhary, Former Chief Commissioner, Prof. Y. Satyanarayana, Former Vice-Chancellor, AP Law University, K. Vijay Kumar (<strong>DDT</strong>) and M. Ponnuswamy, Commissioner of Central Excise. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CENVAT Credit - Bagasse and Press Mud - Exempted Excisable Goods? </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING </strong>the seminar at Visakhapatnam, an assesse from Sugar industry raised a query whether department was correct in raising demand on them at @5% under Rule 6(3) of CENVAT Credit Rules on the value of bagasse and press mud sold by them treating them as exempted goods. According to them both bagasse and press mud being waste products of sugar industry cannot be treated as final products for the purpose of Rule 6 of CCR, even if mentioned in Tariff, as held by various courts/Tribunals. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps, similar view is held by many sugar units and other manufacturers who sell waste products for a consideration. According to the Department, this position taken by the Sugar Industry may be correct for the period prior to 10.05.2008, but after 10.05.2008, the date from when the definition of "excisable goods" in clause (d) of Section 2 of the Central Excise Act, 1944 was amended, the bagasse/press mud and any other waste products generated and sold for consideration attracts provisions of Rule 6. The manufacturers have to either pay the amount at percentage on the value of goods sold or have to reverse proportionate credit under Rule 6(3A) CCR. This was clarified by the <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2009/excircular904.htm" target="_blank">CBEC vide Circular 904/24/2009-CX. Dated: October 28, 2009</a></strong> and <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/letter_01_2010.htm" target="_blank">F. No.17/2/2009-CX dt 08.04.2010</a> </strong>addressed to the Dy. Director General, Indian Sugar Mills Association, New Delhi. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The amendment made in Section 2(d) of Central Excise Act decides only marketability of an article or substance and whether such article/ substance is a manufactured product or not is still a riddle, despite of the amendment to the definition of excisable goods in the Section 2(d) of the Act. Therefore, whether bagasse/press mud arising as waste products, are manufactured goods or not, is still a matter of litigation. However, as the Department has already taken a stand on the issue, the Sugar Industry may take note of the above circulars and comply with the provisions of Rule 6 by paying proportionate credit to avoid unnecessary litigation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though, the CBEC wants every circular to reach the trade, it is unfortunate that the Industry is still in doubt and not aware of an issue which was clarified by CBEC way back in 2009 and 2010. WHY CAN”T THE BOARD KEEP ITS CLARIFICATIONS IN PUBLIC DOMAIN? </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2010/letter_01_2010.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No.17/2/2009-CX., Dated: April 08, 2010 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ICD Kalinganagar Notified </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified Kalinganagar in Orissa as an Inland Container Depot under Section 7(aa) of the Customs Act. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 7(aa) of the Customs Act, the Board <em>"may by notification in the official Gazette, appoint the places which alone shall be Inland Container Depots for the unloading of imported goods and the loading of export goods or any class of such goods."</em></font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_034.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 34/2012 - Cus., (N.T.), Dated: April 20, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">RTI - Confidential Report of CESTAT Member – CIC to Decide – High Court </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant - the legendary crusader, RK Jain wanted information about some adverse entries allegedly made in the Annual Confidential Report of a Member/Vice-President of CESTAT for the year 2000-01 and follow-up action thereupon. The CPIO of CESTAT refused to divulge any information on the ground that it was exempted under Section 8(1)(i) of the RTI Act. The writ petition filed before the Single Judge has been decided vide orders dated 08.12.2011 <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2011/2011-TIOL-819-HC-DEL-RTI.htm" target="_blank"><font size="1">[2011-TIOL-819-HC-DEL-RTI]</font></a></strong> whereby the Single Judge held that the information sought by the appellant is “the third party information” wherein the third party may plead a “privacy? defence and the proper question would be as to whether divulging of such an information is in the public interest or not. Thus, the matter has been remitted back to the Chief Information Commissioner to consider this issue after following the procedure prescribed in Section 11 of the RTI Act and then decide the same. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant filed an appeal against the decision of the Single Judge, before a Division Bench. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According to the appellant, there were certain complaints on corruption against a Member of the CESTAT. After examining this complaint, the then President of CESTAT who was former Chief Justice of High Court made certain adverse entries in the ACR of the said Member, which pertained to the year 2000-01. According to the appellant, on the basis of the said ACR, Department of Revenue in the Ministry of Finance opened another file with the subject “follow up action on the integrity in the ACR for the year 2000-01 in respect of Member, CESTAT.” Ultimately, this file was closed without taking any proper action. The appellant on this premise wanted inspection of the file as well as the copies of the Note Sheets and correspondence. He, thus, filed an application under RTI Act on 07.10.2009 seeking information and copies of the Note Sheets and correspondence pages. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court Division Bench observed,<em> "What is important is that the procedure under Section 11(1), which is mandatory has to be followed which includes, giving of notice to the <strong>concerned</strong> officer information whose ACR is sought for. If that officer, in the present case the Ex Member of CESTAT, pleads private defence that defence has to be examined while deciding the issue as to whether the private defence is to prevail or there is an element of overriding public interest which would outweigh the private defence."</em></font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2012/2012-TIOL-300-HC-DEL-RTI.htm" target="_blank">Click Here for the High Court Order</a>. </font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Promotions - Board Wants Service Details </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has circulated lists of Superintendents of Central Excise, Customs Superintendents and Appraisers and wants the Chief Commissioners to fill the gaps in the missing details of service records. These officers are to be considered for promotion as Assistant Commissioners in the Department on an ad hoc basis. The Board wants these particulars to be sent to the Board through a Supdt/Inspr latest by 25.04.2012. The Board's letter is dated 20.04.2012 and was sent on 23.04.2012 and they want particulars by 25.04.2012. Is it possible? </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there is good news! </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We understand that come what may, Board is determined to promote about 200 Superintendents to the cadre of Assistant Commissioners (maybe with or without the ACRs) and so some Superintendents who have been rotting as Supdts for the last 20 years, can hope to get their second and last promotion, in a few days. Good Luck! </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/oms/office_memorandum.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No. A-32012/42 /2011-Ad.II , Dated: April 20, 2012 </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"> – Wednesday'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="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Refund - In spite of Tribunal's Order, refund not granted - Refund ordered to be granted within six weeks: HC</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> present case is rather old and there are several rounds of litigation. The petitioner had succeeded before the tribunal, who had passed a detailed order dated 27th March, 2002. The respondents thereafter did not adjudicate and passed the consequential orders till 2007. This is in spite of the fact that the petitioner had filed an application on 18th February, 2003 before the respondents to process their claim for refund. There is no explanation for delay of five years. The order dated 20th July, 2007, in fact, makes reference to another refund claim application dated 24th February, 2004.</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 telecom shelters, attached to earth, can be construed as article or thing or movable property, eligible for Sec 80IB benefits - YES, rules ITAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE </strong>Company is engaged in manufacturing and installation of pre-fabricated telecom shelters. It filed its ROI, claiming deduction under section 80-IB of the Act. During the course of assessment proceedings, the AO took a view that the products, which were manufactured by the assessee, were immovable properties and hence cannot be termed as article or thing and hence the claim of the assessee was not allowable. In appeal, the CIT(A) after appreciating the entire gamut of processing involved in assembling and installation, allowed the appeal of the assessee.</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">Torch imported by appellant on which no MRP declared although goods are in ready condition for sale in retail market - ordered to be released on execution of bond and bank guarantee: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MENTIONING</strong> that the matter is on<em> prima facie </em>stage and goods were in the custody of the department, the applicant has also filed a Miscellaneous Application praying that goods be released on execution of bond and bank guarantee of 25% of the differential duty.</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 align="justify"><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></p> </body> </html>