TIOL-DDT 1870 · 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 1870 </font><br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>01.06.2012 <br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Friday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Finance
Act Comes into Force - Government Withdraws Notifications </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>decrease proposed in the tariff in the Finance Bill comes into force only after the Finance Bill is enacted. So, the Government gives effect to such reduction immediately by issuing exemption notifications and these notifications are rescinded after the Finance Bill is enacted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Government has rescinded Notification Nos. 9, 10, 11, 18/2012 - CE dated 17.03.2012, as these notifications have now become redundant. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the Government has also withdrawn Notification No. 23/2012 - CE dated 08.05.2012 pertaining to articles of jewellery, which is not really a Budget Notification. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14956" target="_blank">DDT 1854 10.05.2012</a>.</strong> </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2012/etariff12_27.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 27/2012- CX., Dated: May 30, 2012 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Accords SEZ Port Codes to 9 SEZs </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DIRECTOR </strong>General (Systems) has accorded SEZ port codes to the following 9 SEZs which have been uploaded on DGFT's website:- </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>Sl.No </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Location code/Name of new SEZ Port </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LOCODE </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(SEZ Port Codes) </strong></font></p>
</td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>State </strong></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">MIDC SEZ/AURANGABAD <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Maharashtra Industrial Development Corporation) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN AWM 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</tr>
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<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">MIDC SEZ/NANDED <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Maharashtra Industrial Development Corporation) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN DID 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</tr>
<tr>
<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">MIDC SEZ/PUNE <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Maharashtra Industrial Development Corporation) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN PUM 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</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">NMSPL SEZ/RAIGAD <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Navi Mumbai SEZ Pvt. Ltd.) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN KLE 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</tr>
<tr>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MIDC SEZ/KESURDE <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Maharashtra Industrial Development Corporation) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN STU 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</tr>
<tr>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IIIL SEZ/SINNAR <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Indiabulls Industrial Infrastructure Ltd.) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN NKI 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</tr>
<tr>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MIDC PHALTAN SEZ/SATARA <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">((Maharashtra Industrial Development Corporation) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN STM 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</tr>
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<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MSFPL SEZ/PUNE <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Manjri Stud Farm Pvt. Ltd.) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN PNU 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</tr>
<tr>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WIDL SEZ/AURANGABAD <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Wockhardt Infrastructure Development Ltd.) </font></p> </td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN AWW 6 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maharashtra </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Applicants may file applications using these codes in DGFT server wherever required under the provisions of Foreign Trade Policy 2009-14 / SEZ Act and Rules. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2010/dgft10cir066.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Policy Circular No. 66(RE-2010) /2009-14 , Dated: May 31, 2012 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - Exemption for export of pulses to the Republic of Maldives</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXPORT</strong> of pulses had been prohibited vide Notification No. 15(RE-2006)/2004-09 dated 27.06.2006 which had initially been imposed for a period of 6 months and is extended till 31.03.2013 vide Notification No. 109 (RE - 2010)/2009-2014 dated 27.03.2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, 73 MTs of pulses is being allowed for export to the Republic of Maldives through MMTC Ltd. during the period 2012-13 which is an exception to the prohibition imposed by the above notifications. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of 80 MTs of pulses to the Republic of Maldives through MMTC Ltd. during the period 2013-14 would also be exempted from any export ban. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not118.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Notification No. 118 (RE-2010)/2009-2014 , Dated: May 30, 2012 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Paperless Office of CIT(A) </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PARNEET</strong> Singh Sachdev, CIT (A)-V, Hyderabad has successfully implemented an e -governance programme in his office with a view to organize & conduct official functions largely in paperless mode through the help of a simple, user friendly and low cost software. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With this software, he has been able to organize the office of CIT (A)-V Hyderabad in a manner which facilitates electronic record keeping of entire work flow in the office including all receipts, fixation and disposal of appeals, generation of different reports including monthly disposal report, without additional efforts. The software also enables sending SMS alerts to the appellant, Authorized Representatives, Assessing Officer etc. This is being used as an important MIS tool. With this entire records in his office are available in soft form on the computer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the directions of the CBDT, Parneet Singh Sachdev made a presentation before the full Board on 26.9.2011. It was found to be extremely useful and therefore, the Board desired to upload a background note on this initiative for the benefit of other CsIT (Appeals). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly a background note on the project is uploaded in the irsofficers website for the benefit of all the CsIT (A) who may like to implement the above mentioned programme in their offices. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI Judge Suspended </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>is learnt that a CBI Judge in Hyderabad has been suspended by the High Court. The Judge who joined the CBI Court very recently had granted bail to former Karnataka Minister Gali Janardhana Reddy. It seems the CBI recovered huge currency from the bank locker of the Judge. </font></p>
<p align="center"><strong><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></strong></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>Penalty is not automatic - For Penalties under Sections 76, 77 and 78 of Act, not only ingredients of those Sections should exist, but also there should be absence of reasonable cause for said failure: High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) <strong>THE</strong> imposition of penalty under the Act is not automatic. The ingredients mentioned in the Section should exist. In respect of Sections 76, 77 and 78 of the Act, not only the ingredients of those Sections should exist, but also there should be absence of reasonable cause for the said failure. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) Sections 76 and 78 are mutually exclusive. If penalty is payable under Section 78, Section 76 is not attracted. Therefore, no penalty can be imposed for the same failure under both the provisions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) Even if the ingredients stipulated in Sections 76 and 78 of the Act are established, if the assessee shows reasonable cause for such failure, then the authority has no power to impose penalty in view of Section 80 of the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) Even after holding that the ingredients stipulated in Sections 76 and 78 exist, and there is no reasonable cause shown for failure to comply with the said provisions, the authority has the discretion regarding the quantity of the penalty to be imposed. However, the penalty to be imposed cannot be less than the minimum, or more than the maximum prescribed under the statute. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) The minimum penalty to be imposed is Rs.100/- and not Rs.100/- per day. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(6) If the penalty imposed is not less than the minimum prescribed under law, the revisional authority has no power to enhance the amount of penalty on the ground that it is less. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(7) When the assessing authority, in its discretion has held that no penalty is leviable, by virtue of Section 80 of the Act, the revisional authority cannot invoke its jurisdiction and impose penalty for the first time. </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 services are yet to be given and assessee is under obligation to provide services over a period of time, entire sum received cannot be taxed on receipt basis - YES, rules ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE </strong>is engaged in providing services to Holiday Resort Companies for which it received service charges. It entered into agreements with PHRC which was in the business of property development and developing resorts and formed a club whose object was to secure for its members exclusive rights of occupation of certain apartments fully furnished at various locations in India for specified period each year for 78 years. Assessee acted as intermediary between the property developers and the members, who had acquired time share in Holiday Resort Companies. For the services rendered, the assessee was paid a onetime Administration / Contract Fee per member and an annual fee per villa and annual inspection charges plus travel expenses over the total period of the time share, which was of 78 years. The assessee was recognizing as revenue only 25% of the Administration / Contract Fee in the year of receipt and the balance 75% was recognized as revenue spread over the remaining period of the time share. AO held that the assessee had deferred revenue recognition of 75% of these Administration / Contract Fees from members over the remaining portion of the time share period to a maximum period of 78 years in order to reduce its tax liability in the year of reoperative receipt and rejected the assessee's claim and treated the entire amount as income in the initial year of receipt. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">"ATM PIN mailer" is printed continuous computer stationery which is further used by Bank in dot-matrix printer to print PIN number of their customers - Prima facie classifiable under Chapter 48 of the CETA, 1985 and not chapter 49 - pre-deposit ordered: CESTAT </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> applicants are engaged in the manufacture of personal identification number (PIN) mailer stationery and other stationery items like airway bills, application forms, stickers, dockets, pre-printed bills, challans etc. The applicant claimed classification of the products in dispute under Chapter 49 of the Central Excise Tariff whereas the Revenue confirmed the demand after classifying the same under Chapter 48 of the Tariff. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Out of the total demand of Rs.99,00,281/- confirmed by the <em>Commissioner of Central Excise, Nashik</em>, the demand of more than Rs.73 lakhs pertains to the product, "pin mailer". The assessee is before the CESTAT with a Stay application. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Monday for the judgements </font></strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend </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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