TIOL-DDT 1854 · the untouched capture
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<p><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" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 1854</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
10.05.2012<br>
Thursday</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Articles of Jewellery Exempted Under a New Notification - 1% remains? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Finance Minister's speech in Lok Sabha has been translated into notifications by the Government. Articles of jewellery, under heading 7113, are fully exempted from excise duty. But for some strange reason, the Board has got issued a new notification for this.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Articles of jewellery attract a 1% duty (without CENVAT Credit) as per Sl. No. 199 of Notification No. 12/2012 - CE dated 17.03.2012. They attract 6% duty as per Sl. No. 48 of Notification No. 2/2011 – CE dated 01.03.2011. And now by Notification No. 23/2012-CE, Articles of jewellery are totally exempted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Which of these notifications is to be followed by the assesse and the officer? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On this issue, the FM had told Lok Sabha, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"In respect of Customs and Central Excise, a related proposal that has attracted public attention is the imposition of Central Excise duty on unbranded precious metal jewellery at the rate of one per cent. Mr. Chairman, Sir, I would like to reiterate that the levy was well intentioned and introduced not so much for raising revenue as for rationalisation and movement towards GST. However, the outpouring of sentiment both within and outside the House indicates that we are not ready for it. As such, the Government has decided to withdraw the levy on all precious metal jewellery, branded or unbranded, with effect from <strong>17th March, 2012</strong>."</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though the FM announced in Parliament that the 1% duty imposed would be withdrawn with effect from 17th March 2012, there seems to be no notification from the Board for this. Maybe it would come in a day or two – with a backdate! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rail Loco for Government Exempted:</strong> Along with jewellery, Parts of railway locomotives or rolling stock manufactured by a factory belonging to the Central Government or intended for use by any department of the Central Government, are also exempted. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2012/etariff12_23.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 23/2012-CE Dated: May 08 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Clogged Production Lines in Notifications Factory - Confusion Continues </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> has now amended Notification No. 12/2012 – CE dated 17.03.2012, to fix an effective rate of duty of 14% for the goods under headings 2710 12 11, 2710 12 12, 2710 12 13 and 2710 20 00. But these goods already attract 14% duty under Notification No. 18/2012-CE dated 17.03.2012. It is rather difficult to keep track of so much confusion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Hawai Chappals exempted:</strong> Hawai chappals of RSP not exceeding Rs. 500 per pair are exempted. Goods used within the factory for manufacture of these chappals are also exempted. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2012/etariff12_24.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 24/2012-CE Dated: May 08 2012</strong></font></a></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2012/etariff12_25.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 25/2012-CE Dated: May 08 2012</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption to goods for Initial Setting up of Solar Power Generation Project - Liability on Project</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION </strong>No. 15/2010 – CE dated 27.02.2010 exempts certain goods required for initial setting up of a Solar Power Generation Project, subject to the conditions that the manufacturer furnishes an undertaking to the effect that, – </font></p>
<div align="justify">
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>1. the said goods will be used only in the said project and not for any other use; and
</em></font>
</p>
<p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. in the event of failure to observe the conditions, the manufacturer shall pay the duty which would have been leviable at the time of clearance of goods, but for this exemption. </font></em></p>
</blockquote>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With such Damocles conditions, no sane manufacturer would supply goods to these projects, as they could be saddled with duty liability and penalty four years after clearance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe to solve this problem, Government has now amended this notification to stipulate that the undertaking and duty liability are on the Project Developer. Of course, this will not bar the Department from issuing notice to the manufacturer, if they cannot get at the Project Developer. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2012/etariff12_26.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 26/2012-CE Dated: May 08 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Government Imports - Exemption </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION No. 39/96-Cus dated 23.07.1996 exempts certain items imported by or for Government, mostly Defence, from Customs Duty and CVD. Now CVD Exemption will not be applicable for <em>(i) Hand held Metal detector (ii) Postal Bomb detector (iii) Explosive Container (iv) Portable or Fixed Door frame Metal detector, (v) Deep search Metal or Mine detector (vi) Mine impactor (vii) Mine prodder ( non-magnetic) and (viii) Under Vehicle search Mirrors. </em></font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_030.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 30/2012 - Cus, Dated: May 08, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - effective Rates - Notification Amended </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has made marginal changes in the rates and exemptions of certain goods. The longest Notification – Notification No. 12/2012-Cus dated 17.03.2012 is again amended. This Notification was amended/corrected more than ten times in the last 50 days of its existence. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_031.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 31/2012 - Cus, Dated: May 08, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Exemption from SAD </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION </strong>No. 21/2012-Cus dated 17.03.2012 exempts certain goods from SAD. The exemption for some of these goods is subject to the condition that the importer declares- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) the State of destination where such goods are intended to be sold for the first time after importation on payment of value added tax; and </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) his value added tax registration number in that State. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, these conditions are changed to- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) the State of destination namely the State where the goods are intended to be taken immediately after importation whether for sale or for distribution on stock transfer basis; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) his VAT (Value Added Tax) registration number or Sales Tax registration number or Central Sales Tax registration number, as the case may be, in the said State. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_032.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 32/2012 - Cus, Dated: May 08, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CENVAT Credit Rules – Rule 6(6) - Supplies to Solar Power Projects </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Rule 6(6) of the CENVAT Credit Rules, the requirement of separate accounts/reversal/paying 6% will not apply to certain exempted clearances. Now supplies <em>made for setting up of solar power generation projects or facilities </em>are also included in this list. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This sub rule also mentions Notification No. 6/2006-CE dated 01.03.2006, which was superseded by Notification No. 12/2012-CE dated 17.03.2012. Now, this correction is made in the CENVAT Credit Rules. But this should have been done on 17.03.2012 and now what would happen for the period prior to 08.05.2012? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2012/exnt12_25.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 25/2012 –CE (NT), Dated: May 08, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Retrospective Levy - Vodafone Disappointed </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOW</strong> that it is almost certain that the Finance Bill will be enacted in a few days, Vodafone is sure to get the demand from the income Tax authorities. Vodafone in a statement yesterday said, "We are naturally disappointed that despite very widespread concern in India and internationally, the government has not seen fit to propose amendments to address the uncertainty caused by retrospective tax legislation." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vodafone added, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are studying the legislation as amended and will take all possible steps to safeguard our shareholders' interests. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It would be grossly unjust if, on the basis of legislation passed five years after the event, Vodafone were to be charged tax on a gain made by someone else, especially where the Indian Supreme Court unambiguously ruled that no tax was payable in India according to the laws of India in force in 2007 . </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vodafone said it had put in Rs. 50,000 crore in the Indian operations and was one of the largest taxpayers in the country with over Rs. 29,000 crore paid as taxes. And despite making considerable investments over the last five years, the company said it is <strong>yet to take a single rupee out of the country.</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">But I eat Lizards! And No Investment </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A GERMAN</strong> passenger was caught by Customs officers with 49 live lizards in his luggage at Munich airport and claimed the lizards were for his dinner. To prove this, he even offered to bite the head off one of them (Lizards, not Customs officers). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The man was travelling back from Oman in the Middle East when customs officials discovered 31 spiny-tailed lizards and 18 other assorted breeds of lizard in his suitcase. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The lizards are now doing fine under the care of veterinary doctors and the passenger may end up paying a fine.</font></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">Central Excise - Reference Petition before High Court - Demand not sustainable on reference order by High Court until Tribunal passes a fresh order: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>petitioner is a partnership firm at Mandi Gobindgarh. It is engaged in the business of manufacturing steel products. Vide order dated 9.3.2000, the Commissioner, Central Excise Chandigarh held the petitioner-firm liable to pay differential Central Excise Duty for the period from 1.7.1999 to 31.3.2000. The petitioner-firm filed an appeal before the Tribunal against the said order.</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">Income tax - Whether, for purpose of computing income u/s 153C, AO is required by law to confine himself to materials found during course of search operations - NO, rules AP High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Bench is - Whether, for the purpose of computing income u/s 153A/153C of the Act, the AO is required to confine himself only to the material found during the course of search operations. And the answer goes against 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">Customs - Purchase and use of DEPB obtained by fraud - Duty to be paid - Penalty waived: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> are four appeals decided in this proceeding. Two are filed by the importer and two are filed by Revenue. All the four Appeal arise from the same impugned order. The adjudication order confirmed the duty demanded and imposed redemption fine and penalty. In appeal, Commissioner (Appeals) upheld the duty demanded but set aside fine and penalty.</font><span style="font-family:Verdana;mso-fareast-font-family:
"-ÿ3ÿ f g";mso-bidi-font-family:"Times New Roman""><o:p></o:p>
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<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements</font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT</strong></font></p>
<p><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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