TIOL-DDT 1906 · 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 1906</font><br>
23.07.2012<br>
Monday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-dumping duty on Acetone - Resurrected </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VIDE</strong> Notification No <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_033.htm" target="_blank">33/2008-Cus</a></strong> 11.03.2008, Government had imposed Anti-dumping duty on Acetone originating in, or exported from EU, Chinese Taipei, Singapore, South Africa and USA (that covers almost major part of the world) and imported into India. This Notification was valid upto 18.06.2012. Government had promptly initiated review on 15.06.2012, just three days before the expiry of the Notification and had requested for extension of anti-dumping duty upto one more year, in terms of sub-section (5) of Section 9A of the said Customs Tariff Act. Now, in the dead Notification No <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_033.htm" target="_blank">33/2008-Cus</a></strong> dated 11.03.2008, the following is inserted to bring life back:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"3. Notwithstanding anything contained herein above, this notification shall remain in force up to and inclusive of the 18th day of June, 2013, unless revoked earlier". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Notification is extended by one more year and is valid up to and inclusive of 18th day of June 2013. That implies the extension is effective from 19th June 2012. The Notification extending the levy is dated 19th July 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has already clarified vide Circular <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/cuscir11_028.htm" target="_blank">28/2011-Cus</a></strong>, Dated: July 8, 2011 that "a definitive/final anti-dumping duty can be collected beyond the stipulated period only when a notification extending the levy has been <strong>issued</strong>, before the expiry of the parent notification". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That means, no Anti-dumping duty can be collected from 19th June 2012 to 18th July 2012, a cool one month! And can you really extend a dead notification? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When will the Board learn to follow its own directions? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_037.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 37/2012-Cus.(ADD), Dated: July 19, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax under reverse charge - A layman's confusion </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TOP</strong> service tax bosses are attending various seminars on service tax across the length and breadth of the country explaining the negative regime. However, it appears the message is not reaching the bottom and there is still a large number of doubts in the minds of not only the trade and industry, but ordinary citizens who are scared whether they are liable under reverse charge. The interactive session in one of the seminars organised by the Team TRU lasted only for a few minutes and the audience being informed by the organisers even before the start of the session, that they have time only to take a couple of questions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT has received mail from a concerned Netizen who asked us innocently, "Am I required to take registration and pay service tax if I engage a builder for constructing more than one unit of residence? Am I required to pay service tax under reverse charge if I buy a life insurance?" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sir, under partial reverse charge, not all the service receivers are liable for service tax. The reverse charge in respect of works contract, rent a cab and manpower supply is applicable only if the </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">Service Provider is:</font></strong> any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">Service receiver is:</font></strong> a business entity registered as body corporate </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, in case of individuals, there is no liability to pay service tax under partial reverse charge mechanism. In respect of insurance also, there is no liability under reverse charge on the individual who buys the insurance. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ST
- Mega exemption Vs 81 Rescinded Notifications </font></strong></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=40&filename=notification/servicetax/2012/stnot12_034.htm" target="_blank">NOTIFICATION </a><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2012/stnot12_034.htm">No 34/2012-ST</a></strong>, Dated: June 20, 2012 has rescinded 81 service tax exemption notifications and most of the exemptions are continued under the Mega exemption Notification or are placed under the Negative list. Please see the link below for a comparative chart of the past and present position of the exemptions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> is grateful to several Netizens who helped in compiling this laborious list. <a></a></font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2012/notifications_rescinded.htm" target="_blank">List of Notifications rescinded</a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The 13th President</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><img src="http://www.taxindiaonline.com/RC2/image/stories/pranab_president.jpg" alt="The 13th President" width="175" height="164" hspace="5" border="0" align="left">PRANAB</strong> Kumar Mukherjee has been declared elected as the 13th President of India. Pranab Da secured 68.12 per cent of the total 10,47,971 value votes cast by 4,659 members of the State Assemblies and Parliament. What is intriguing is that there were 81 invalid votes! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pranab Da is the third Cabinet Minister after Fakruddin Ali Ahmad and Zail Singh to become President straight from the cabinet. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Except Radhakrishnan, Zakir Hussain and Abdul Kalam, all the Presidents have been politicians. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We wish President Pranab all the best. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DGCEI Detects Evasion by Plywood Unit</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PLYWOOD</strong> industry is well known for cash transaction as well as for duty evasion by not maintaining proper records. Since, the consumers of the product are mainly real estate and furniture sector, most of the transactions are made without accounting for the production in records, which suits both supplier and buyer. This ultimately results in unaccounted cash transaction and tax evasion. Although tax officials are aware of the working of the plywood industry, it is difficult to catch hold of cash transactions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, officers of the Directorate General of Central Excise Intelligence, Hqrs., R.K. Puram, New Delhi (DGCEI) have booked a case of huge evasion of Central Excise against a plywood manufacturer based at Distt. Sonepat (Haryana) and unearthed a novel modus operandi . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Several premises at Delhi Haryana Border, were searched by the officers of DGCEI on 19.7.2012 in Dist. Sonepat and Delhi. The searches reportedly resulted in recovery of voluminous incriminating documents indicating huge evasion of central excise duty. The officers also unearthed a secret office of a company and also seized Indian currency worth Rs. 69 Lacs from two premises, which were admitted as sale proceeds against clandestine sale by the directors of the company. Surprisingly, one of the units was not even registered with the Central Excise department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Documents seized also revealed that in this evasion, a novel modus operandi was used by the tax evaders. The officers got hold of customized software, which automatically converts actual amounts to a number divided by 100. e.g. if the party has received Rs. 500000/- in cash, it will be captured by the software as 5000.00. This shows how tax evaders are using technology advantage to hide their transactions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The estimated evasion of Central Excise duty is to the tune of over Rs. Ten Crores. The investigation of the case is under progress, according to sources. </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"> - Tuesday'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">Additional
Director General, DGCEI has jurisdiction to issue SCN - by virtue of a
person being a Commissioner of Central Excise, power to function as a CX
Officer is already invested in him and no further investment is required
or necessary by issuance of a notification in Official Gazette - Petition
dismissed: Allahabad HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>the present case, the petitioners, manufacturers of Gutkha & Pan Masala bearing brand name "SIR" have questioned the jurisdiction of Additional Director General, Directorate General of Central Excise Intelligence in issuing a show cause notice to the petitioner and raising a demand of Central Excise duty under Section 11A of the CEA, 1944. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p align="left"><font size="2"><strong><font color="#FF6633" face="Verdana, Arial, Helvetica, sans-serif">Income
tax - </font></strong></font><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether
powers under Sec 119 empower CBDT to issue clarification, which can take
away exemption admissible as per statute - NO: HC</strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issue before the Bench
is - Whether the powers u/s 119 empower the Board to issue clarification
which can take away the exemption admissible as per the statute. NO is
the HC's answer.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appellant availing CENVAT Credit of Service Tax shown on invoices as paid by transport company - whether transporter has paid ST althoug<font color="#FF6633">h</font> as per rule 2(d)(v) of STR, 1994 he was not supposed to pay is to be ascertained after verification - Matter remanded: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants are manufacturers of excisable goods. The invoices issued by the transport companies showed that service tax was paid by them on the freight amount. Accordingly, during the period January, 2005 to January, 2008 the appellant availed Cenvat Credit in respect of inputs services viz. Goods Transport Agency for transporting raw materials to their factory. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tuesday 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><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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