TIOL-DDT 1868 · the untouched capture
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<p align="justify"><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 1868 </font><br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>30.05.2012 <br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Wednesday </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Settlement in Service Tax - Rules Notified </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINANCE</strong> Bill 2012 had proposed opening of the gates of Settlement Commission for Service Tax cases. Now, with the Bill enacted, the Government has notified the Rules for Settlement of Service Tax cases, called the <em>Service Tax (Settlement of Cases) Rules, 2012.</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These Rules are an almost replica of the <em>Central Excise (Settlement of Cases) Rules, 2007.</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The application has to be made in Form SC(ST)-1 and signed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The application fee is Rs. 1000/- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The additional amount of service tax accepted by the applicant along with interest due thereon, shall be deposited, before filing the application. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Settlement Commission can order attachment of property. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2012/stnot12_016.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 16/2012-Service Tax; Dated May 29 2012</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax - Compounding of Offences </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified the <em>Service Tax (Compounding of Offences) Rules, 2012.</em>These are on almost identical lines to the <em>Central Excise (Compounding of Offences) Rules, 2005.</em>The compounding of offences under the Central Excise Act is not very popular and there are hardly any cases where the offences are compounded. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Compounding Amount </strong>: For the purpose of compounding of offences under the provisions of the Act, the compounding amount shall be as provided in the following Table.
</font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
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<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>S. No. </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Offence </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Compounding amount </strong></font></p></td>
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<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></p></td>
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<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Offence specified under section 89 (1)(a) of the Act [<em><font color="#FF0000"><strong> knowingly evades the payment of Service Tax under this chapter</strong></font></em>] </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Up
to fifty per cent of the amount of service tax evasion, subject to
minimum of ten per cent of amount of tax evaded. </font></p></td>
</tr>
<tr>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Offence specified under section 89 (1)(b) of the Act </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>[<strong><font color="#FF0000">avails and utilizes credit of taxes or duty without actual receipt of taxable service or excisable goods either fully or partially in violation of the rules made under the provisions of this Chapter</font></strong>] </em></font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Up
to fifty per cent of the amount of CENVAT Credit wrongly taken or utilised,
subject to minimum of ten per cent of said amount. </font></p></td>
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<td width="0" valign="top">
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Offence specified under section 89 (1)(c) of the Act </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[<em><font color="#FF0000"><strong>maintains false books of account or fails to supply any information which he is required to supply under this Chapter or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information</strong></font></em>] </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence. </font></p></td>
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<tr> </tr>
<tr> </tr>
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<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Offence specified under section 89 (1)(d) of the Act </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[<strong><em><font color="#FF0000">collects any amount of service tax but fails to pay the amount so collected to the credit of the Central Government beyond a period of six months from the date on which such payment becomes due</font></em></strong>] </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Up to twenty five per cent. of the amount of service tax not deposited subject to a minimum of two per cent. for each month for which the amount has not been so deposited. </font></p></td>
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<tr> </tr>
<tr> </tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If a person has committed offences falling under more than one category specified above and where the amount of service tax evasion or amount of CENVAT Credit wrongly taken or utilised is the same for all such offences, the compounding amount, in such cases, shall be the amount as determined for the offence for which a higher compounding amount has been prescribed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now you know the reason why compounding is not very attractive, especially considering the inflated demands the Department makes. It is cheaper to go for litigation than compounding. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2012/stnot12_017.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 17/2012-Service Tax; Dated May 29 2012</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Acetone from Chinese Taipei - Withdrawn </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION </strong>No. 33/2008-Cus dated 11.03.2008 had imposed anti dumping duty on acetone originating in or exported from Chinese Taipei, Singapore, South Africa, USA and EU, with effect from 19.06.2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Government has withdrawn this duty in respect of imports from Chinese Taipei. Sl. Nos 1 to 5 of the table to the notification are omitted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In any case, this notification will lapse on 18.06.2012 - the Government is sure to forget that date and will resurrect it after a few months! </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_029.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 29/2012-Cus.,(ADD), Dated: May 29, 2012 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Aniline </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GOVERNMENT has imposed anti dumping duty on Aniline originating in, or exported from European Union and imported into India. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_030.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 30/2012-Cus.,(ADD), Dated: May 29, 2012 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Safeguard Duty on Phthalic anhydride </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> had imposed provisional safeguard duty on Phthalic anhydride by Notification No. 1/2012 - Customs (SG), dated 17.01.2012 which was to be valid for a period of six months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Government has imposed safeguard duty on the product up to 16.01.2013. The Notification No. 1/2012-Cus(SG) is rescinded. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=338&filename=notification/custom/2012/ctariffsg12_003.htm" target="_blank">Notification No. 3/2012-Cus.,(SG), Dated: May 29, 2012</a> </strong> <strong>and</strong> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=338&filename=notification/custom/2012/ctariffsg12_002.htm" target="_blank">Notification No. 2/2012-Cus.,(SG), Dated: May 29, 2012 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Thai Exemption - Refrigerator </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Notification No. 85/2004-Customs, dated 31.08.2004, the Government had exempted several goods from Customs duty when imported from Thailand. Now, a new product is added at Sl. No. 49A as - <em>84181090 - Compression-type combined refrigerator-freezers, fitted with separate external doors, household type.</em></font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_038.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 38/2012-Cus., Dated: May 29, 2012 </strong></font></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"> - Thursday's cases</font></strong></font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"></font>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Revenue on a winning spree - demand of service tax on residential flats constructed under joint development agreement, upheld: CESTAT </strong></font></p>
<p align="justify"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> demand involved three issues. First issue is whether the appellant company was liable to pay service tax on the flats handed over to the land owner towards the cost of land given for development, second issue is whether service tax was payable on the rest of the flats constructed for individual buyers and the third is whether the complex constructed would qualify as "residential complex" having more than 12 residential units. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether when assessee reimburses interest payments to parent company for availing loans under its borrowing facility given by bank, any TDS obligation arises u/s 194A - NO: ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong> assessee company is engaged in the business of software development, trading of software and hardware and allied software and hardware services. The assessee had taken over a banking division of its parent company i.e. M/s. Onward Technologies Ltd. (OTL). In view of the taking over of the banking division the assessee had to share the interest cost burden of M/s OTL, based on the funds utilised as the parent company was enjoying borrowing facilities from the bank for its group companies. The assessee filed the return of income for the A.Y. 2005-06 declaring total income of Rs. ‘Nil'. It was noticed by the A.O. that the assessee had credited an amount of Rs.1,41,12,002/- in account of it's parent company namely ‘M/s OTL' towards the interest payment. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Imported customs duty paid goods falling under CETA, 1985 are 'excisable goods' but duty is payable under section 11D(1) of CEA, 1944 by a manufacturer or producer - since appellant is not a manufacturer or producer, duty u/s 11D is not payable: CESTAT LB by Majority </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> following is the reference made to the Larger Bench - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"Whether imported custom duty paid goods falling in any of the Schedules to the Central Excise Tariff Act, 1985 would come within the ambit of the expression "excisable goods" used in the text of sub-section (1) of Section 11D of the Central Excise Act." </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The dispute is whether the duty charged by the appellant in their invoices on customs duty paid stock is recoverable as per the provisions of Section 11D(1) of the Central Excise Act or not? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Tomorrow for the judgements </font></strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </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"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p>
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