TIOL-DDT 1914 · 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 1914 </font><br>
</strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">02.08.2012 <br>
Thursday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Headless Revenue Boards? First Lady Chief of Indian Customs</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Chairmen of both the Central Revenue Boards, CBDT and CBEC retired on 31 July 2012 and the Government could not finalise the names of the successors to take over. The CBDT and CBEC now have "additional charge" chairmen in Poonam Kishore Saxena and Praveen Mahajan respectively.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Praveen
Mahajan is the first lady to head the CBEC and it would have been celebration
time, but that is not to be now - she is given only additional charge. The
Government knew more than six months ago that the incumbent Chairmen of both
the Boards would retire on 31 July. Why couldn't they select successors well
in time? Normally the senior-most Member is selected - then why all this
confusion? On the day that PC has taken over as the Finance Minister, he
finds that both his Revenue Boards are virtually headless. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One of the first priorities of the new FM should be to set right his Revenue Boards. The morale of the staff is at its lowest ebb even among the highest officers - a Member of the Board has resigned! Not having a regular Chairman means that the chance of another Chief Commissioner in becoming a Board Member is blocked. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly the CBEC will be an all women Board in 2013 with all its Members being ladies. Before that let us have a full-fledged Chairman - a lady of course. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see our <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=15570" target="_blank">CobWeb</a></strong> today. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Extension of Due Date of Filing ALL IT Returns - CBDT Clarifies</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YESTERDAY</strong> DDT reported that CBDT has extended the due date for filing Income Tax returns from 31 July 2012 to 31 August 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Somehow the General and Pink Press got an impression that the extension was only for e-filing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Hindu</strong> reported, "August 31 is new deadline for mandatory e-filing of I-T returns" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Time of India </strong>reported, "Govt extends e-filing date for income tax returns to Aug 31" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Indian Express</strong> reported, " Due date for e-filing tax returns extended" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even one of my editorial colleagues was not happy with the <strong>DDT</strong> report on the assumption that the extension is only for e-filing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday evening CBDT clarified, "<em>A section of Media has reported that the Central Board of Direct Taxes has extended 'due date' of filing of returns to 31st August, 2012 in respect of only those returns which were to be e-filed by 31st July, 2012. <strong>It is clarified that the notification issued by the Board on 31st July, 2012 has extended the 'due date' of filing of all returns for the Assessment Year 2012-13 which were due to be filed by 31st July, 2012 to 31st August, 2012</strong></em><strong>". </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Exemption to Sports Goods - CBEC Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> No. 146/94-Customs dated 13.7.1994 exempts sports goods under certain conditions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC clarifies:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the notification covers all goods of the description specified therein and falling under any of the chapter of the first schedule, the issue of classification of imported item would not be relevant for the purpose of extending the exemption. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The description of the goods exempted under S.No. 1(a) is "Sports goods, sports equipments and sports requisites" and under 1(b) is "spares, accessories and consumables of (a)", Hence, all types of goods, whether it is an equipment or simple item required for sport are covered under the category 1(a). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is also clear that the sport equipment covered here includes its spares, accessories and consumables. Hence it could be concluded that the scope of coverage of goods under the category ‘sports goods, sports equipment, sports requisites' is comprehensive. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The said exemption entry is subject to specific conditions such as production of certificate from specified sports bodies/federations for its usage in National or International championship or competition and an undertaking from the importer that the said goods are required for the intended purpose of use. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no distinction between mandatory or optional accessory for inclusion or exclusion in the exemption notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further, there is no distinction between general purpose equipment or specialized equipment to the extent it is a sport equipment for extending the notification benefit. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2012/cuscir12_021.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 21/2012 - Customs , Dated: August 01 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Ban on export of edible oil in branded consumer packs - Prohibited </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Para 4 of Notification No. 77 dated 28.09.2011, export of edible oils is permitted <strong>only</strong> in branded consumer packs of upto 5 Kgs, within a ceiling of 10,000 tons, for the period 01.11.2011 to 31.10.2012. Now, with immediate effect, even such export of edible oils is prohibited. Accordingly, Para 4 of Notification No. 77 dated 28.09.2011 is withdrawn. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Transitional arrangements under para 1.5 of Foreign Trade Policy, 2009-14 will not be applicable. Export of the consignments handed over to the customs up to 24.00 hrs on 01.08.2012 will be permitted under para 9.12 of Handbook of Procedure. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2012/dgft12not009.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 9 (RE - 2012)/2009-2014 , Dated: August 01 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exchange Rates Notified </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified the Exchange Rates for imported goods and export goods with effect from 02 08 2012.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_067.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notification No. 67/2012-Cus.,(N.T.), Dated: August 01, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Investments From Pakistan </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per paragraph 3.1.1 of <em>Circular 1 of 2012- Consolidated FDI Policy,</em> effective from 10.04.2012, investment from a citizen of Pakistan or an entity incorporated in Pakistan is not permitted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government of India has reviewed the policy and decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India, under the Government route, in sectors/activities other than defence, space and atomic energy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, Paragraph 3.1.1 of Circular 1 of <em>2012-Consolidated FDI Policy',</em> effective from 10.4.2012, is amended to read as: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"3.1.1 A non-resident entity can invest in India, subject to the FDI Policy. A citizen of Bangladesh or an entity incorporated in Bangladesh can invest only under the Government route. A citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other thandefence, space and atomic energy." </font></em></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/pnote/2012/pnote12_003.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Press Note No 03 , Dated: August 01, 2012</font></strong></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"> - Friday's cases</font></strong></font></strong></font></p>
<p><font 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"><strong><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">CENVAT Credit - Input services - ‘Up to Place of removal' includes ‘place of removal' - Maruti Suzuki decision not applicable for input services: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXPRESSION</strong> storage up to the place of removal would include the storage at the place of removal itself as argued by the Counsel for the Appellant. The normal interpretation of the words "up to" something is to include the something as is seen from the example quoted by the counsel. The example was - whenever a notification is issued with the provision that it is valid up to a particular date it is always considered as valid for the date specified for expiry. Going by such interpretation services for storage at the place of removal should be allowed as input services. </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">Sec 80IA(4)(c) - Whether substantial renovation and modernisation is necessary condition for claiming deduction, and it can be done by increasing book value of assets of 50%: YES, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether 'Capital WIP' can be considered as a part of plant and machinery for satisfaction of condition for allowability of deduction u/s 80IA(4)( c) and Whether 'substantial renovation and modernisation' is a necessary condition for claiming deduction, and it can be realised only by increasing book value of assets by 50%. And the verdict 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">If the credit availed on inputs used in manufacture of final products is reversed before it is utilised either by reversing the credit or by cash payment with interest, then, it should be treated that assessee has not availed credit and accordingly, benefits under para 4.2.6 of Foreign Trade Policy 2009-2014 cannot be denied while transferring DFIA: Bombay HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per paragraph 4.2.6 of the Foreign Trade Policy, duty free import of inputs under DFIA is permissible even to a transferee provided CENVAT facility has not been availed by the original licence holder. The petitioner has challenged the office memorandum issued by the Central Board of Excise & Customs on 22nd February 2011. By the said office memorandum the CBEC has held that where the CENVAT credit is availed in respect of the goods exported under the Duty Free Import Authorisation (‘DFIA' for short), it shall be treated that the assessee has availed the credit even if the credit is reversed or paid back along with interest after clearance of the goods. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrowfor 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 align="justify"><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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