TIOL-DDT 1903 · 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 1903 </font><br>
18.07.2012 <br>
Wednesday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax on Electricity? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION </strong>66 D of the Finance Act, 1994 contains the Negative list of services. As per Section 66 D(k), transmission or distribution of electricity by an electricity transmission or distribution utility is covered under negative list and hence no service tax is attracted.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Electricity transmission or distribution utility has been defined under Section 65B(23) as: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"electricity transmission or distribution utility" means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003; <strong>(36 of 2003.)</strong> or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government; </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 4.11.2 of the Education Guide, </font></p>
<blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.11.2 If charges are collected by a developer or a housing society for distribution of electricity within a residential complex then are such services covered under this entry? </font></strong></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">No. The developer or the housing society would be covered under this entry only if it is entrusted with such function by the Central or a State government or if it is, for such distribution, a distribution licensee licensed under the Electricity Act, 2003.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The activity of distribution of electricity within a residential complex is thus a taxable service (Not being within the scope of negative entry), if it is not entrusted with such function by a Central or State government or if it has no distribution license under the Electricity Act, 2003. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Grant of License to transmit/distribute/trade in electricity is governed by Section 14 of the Electricity Act, 2003 and as per the 7 th proviso, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided also that in a case where a distribution licensee proposes to undertake distribution of electricity for a specified area within his area of supply through another person, <font color="#FF0000">that person shall not be required to obtain any separate licence</font> from the concerned State Commission and such distribution licensee shall be responsible for distribution of electricity in his area of supply: </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, all such second stage suppliers are covered under service tax net, being not a licensee under the Electricity Act, 2003. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But, is it not a settled law that Electricity is goods and many State Government VAT Acts have exempted the sale of electricity from VAT? Should the Government burden the consumers with service tax on electricity? Please also read - <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9434" target="_blank">Service Tax on Electricity</a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-Dumping Duty imposed on Grinding Media Balls </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has imposed definitive Anti Dumping Duty on ‘Grinding Media Balls' (excluding Forged Grinding Media Balls), classified under Chapter 73 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, Thailand and People's Republic of (China PR) based on the findings of the DGAD. The ADD will be in force for five years from the date of publication of the Notification. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_036.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No 36 /2012-ADD Dated: July 16, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Dabhol Power Plant takeover by Ratnagiri Gas and Power (P) Ltd - Amendment to Customs NT Notification </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Sl No 8 (1) of the Notification No 62/1994-Customs (N.T.), Dated : November 21, 1994, Dabhol Port was Notified for export/import activities relating to Dabhol Power Plant. Now that the Dabhol Power Plant has been taken over by Ratnagiri Gas and Power (P) Ltd, consequential amendments have been made to Sl No 8(1) of the Notification No 64/1994 Cus (NT). </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
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<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing Notification </font></strong></p></td>
<td valign="top" bgcolor="#EBD8D8"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amended Notification </font></strong></p></td>
<td valign="top" bgcolor="#EBD8D8"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Effect </font></strong></p></td>
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<td rowspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Unloading of machinery, equipment and <font color="#FF0000">fuel</font> for Dabhol Power Project. </font></p></td>
<td valign="top" bgcolor="#C99898"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Unloading of machinery and equipment for Ratnagiri Gas and Power Private Limited Power Project. </font></p></td>
<td valign="top" bgcolor="#C99898"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Covered as Dabhol is now Ratnagiri </font></p></td>
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<td valign="top" bgcolor="#EBD8D8"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Unloading of liquefied natural gas and naphtha. </font></td>
<td valign="top" bgcolor="#EBD8D8"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier it was fuel for Dabhol; Now it is LNG and Naphtha for everyone </font></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Loading of imported machinery and equipment for export, imported for Dabhol Project. </font></p></td>
<td valign="top" bgcolor="#C99898"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Loading of imported machinery and equipment for export, imported for </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ratnagiri Gas and Power Private Limited Power Project. </font></p>
</td>
<td valign="top" bgcolor="#C99898"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Covered - Read <em>Ratnagiri for Dabhol</em>. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) unloading of goods for the manufacture and repairs of <font color="#FF0000">cargo </font>ships, barges and similar vessels by M/s Bharati Shipyard Limited. </font></p></td>
<td valign="top" bgcolor="#EBD8D8"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Unloading of goods for the manufacture and repairs of ships, barges and similar vessels and rigs by M/s. Bharati Shipyard Limited. </font></p></td>
<td valign="top" bgcolor="#EBD8D8"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Covered - Restriction of Cargo ships deleted.</font></p></td>
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<td valign="top"> </td>
<td valign="top" bgcolor="#C99898"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) Import of ships, barges and similar vessels and rigs by M/s. Bharati Shipyard Limited for repair. </font></p></td>
<td valign="top" bgcolor="#C99898"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">New addition </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) export by M/s Bharati Shipyard Limited of <font color="#FF0000">cargo</font> ships, barges and similar vessels. </font></p></td>
<td valign="top" bgcolor="#EBD8D8"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">f) Export by M/s. Bharati Shipyard Limited of ships, barges and similar vessels and rigs."</font></p></td>
<td valign="top" bgcolor="#EBD8D8"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Covered - “cargo” deleted</font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is this notification issued a little late? It was in 2005 that Dabhol was taken over by Ratnagiri and it took them 7 years to issue this notification. And even this notification went into hiding; it took us 7 days to find it. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_057.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No 57 /2012 Cus(NT) Dated: July 11, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Common Adjudicating Authority Appointed </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC </strong>has appointed Common Adjudicating Authority for the purpose of adjudicating the matters relating to Show Cause Notice pertaining to M/s New Star Enterprises, issued by the Joint Director, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad.</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_059.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No 59 /2012 Cus(NT) Dated: July 17, 2012</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Common Adjudicating Authority Appointed</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has appointed the Joint Commissioner or Additional Commissioner of Customs (Imports), Jawaharlal Nehru Custom House, NhavaShevaas Common Adjudicating Authority for the purpose of adjudicating the matters relating to Show Cause Notice pertaining to A.S. Enterprises, issued by the Joint Director, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_060.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No 60 /2012 Cus(NT) Dated: July 17, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Strengthening Vigilance Administration - DOPT calls for statistics </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> order to assess the workload relating tovigilance administration in various Ministries/Departments and the adequacy of presentvigilance administration to handle such volume of work and to lay down generalguidelines for review of the existing vigilance setups in Ministries/Departments with aview to strengthening them adequately to meet the challenges posed by the everincreasing volume of vigilance related work, it has been decided to collect informationrelating to the strength of the present vigilance setup and volume of vigilance relatedwork in various Ministries/Departments along with details of recent increase in staffstrength for handling vigilance work from each Ministry/Department, in a standard proforma communicated by the DOPT vide letter dated 17.07.2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Everything is fine, except some proof reading. The letter says "In order to <font color="#FF0000"><strong>asses</strong></font> the work load". Blame it on Microsoft?</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/dopt_vigilance.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">D.O. No. 425/01/2012-AVD-IV Dated: July 17 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Shoot IAS Officers </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Minister in Andhra Pradesh has a solution for lethargy in the service - IAS officers who have no commitment to their work should be shot dead. TG Venkatesh, Industrialist turned politician was expressing his frustration at the IAS officers stalling developmental work by returning files with one query or another. He wanted such bureaucrats to be shot dead on the road. IAS officers are not amused - they are up against the minister for inciting mob justice and want the Chief Minister to sack the Minister who is in no mood to relent. </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"> - Thursday'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">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Target Plus Scheme - ‘Broad Nexus' between imported goods and exported goods - The word ‘nexus' obviously refers to a larger group of similar goods and not very exported goods itself. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Appellants, M/s Gimpex Ltd. (GE) and M/s Sree Enterprises (SE) are engaged in the export of Iron ore, Bentonite, Feldspar, Granite slabs and articles of mild steel /alloy steel, respectively. Due to incremental growth in exports when compared to the exports made in the previous year, the appellants obtained Target Plus Scheme (TPS) Licences from the DGFT. </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 rule of consistency is applicable in every case, more so when Revenue's viewpoint was contrary to law in earlier year, although in favour of assessee - NO, rules Delhi HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether the amortization of lease premium paid by the assessee for a period of 90 years is revenue expenditure and Whether the rule of consistency is applicable in every case, more so when the point of view of the Revenue was contrary to law in earlier year, although in favour of the assessee. And the answers to these questions go against the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Interest
on delayed refund of pre-deposit – period for which petitioner is
entitled to interest on pre-deposit of delayed refund was the same as in
the case of ITC Limited - parity demands that the petitioner is also entitled
for interest @ 12% per annum - Revenue cannot take advantage of the fact
that this Court while referring to the circular dated 08.12.2004 did not
mention the rate at which interest was to be paid to the petitioner: High
Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is
the case of the petitioner that it had preferred an appeal under Section
35G of the Central Excise Act, 1944 against the order dated June 15, 2007
passed by the CESTAT insofar</font>.</p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Thursday 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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