TIOL-DDT 1923 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"
"http://www.w3.org/TR/html4/loose.dtd">
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body>
<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 1923</font><br>
17.08.2012<br>
Friday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Payment of penal interest on delayed compliance with Court decisions - Action against Officers </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> is concerned with avoidable interest outgo due to delayed compliance with court orders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All Heads of Department are advised to ensure timely compliance with Court orders involving payment of compensation etc. so as to avoid payment of penal interest due to delayed compliance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In every case proposing payment of interest on delayed compliance with Court orders, detailed justification for failure to ensure timely compliance with the orders should be furnished henceforth. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In cases where delay in compliance with the Court Orders is attributed to any specific officer(s), necessary action for recovery of the amount of penal interest equitably from such officers responsible for the delay in compliance will be taken. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2012/letter12_004.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MoF Department of Revenue F. No. 203/01/2008.Ad.VIII (EC), Dated: July 03, 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 17. 08. 2012. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_075.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notification No. 75/2012-Cus.,(N.T.), Dated: August 16, 2012</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">High Court imposes costs and interest on Customs for Delayed Refund </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE</strong> the Government seems to be really worried about avoidable outgo of interest due to non-compliance of court orders, the field officers seem to be having a field day flouting court orders to ensure that no refunds are given. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a recent case, by an appellate order, the fine and penalty was reduced. As a natural corollary, the assessee sought refund of the excess payment. As the Customs Department was not giving the refund, the party approached the High Court. In the High Court, the Standing Counsel for the Department assured the Court that the excess fine and penalty would be refunded in ten days. So, the High Court disposed of the writ petition with a direction to refund the excess fine and penalty within ten days. Obviously, the Commissioner was not impressed and he filed a review petition before the High Court instead of giving the refund. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court observed, <em>"When an appellate authority allows an appeal filed against imposition of tax, duty, fine, penalty etc., it is the bounden duty of the assessing authority, as part of a democratic government, to refund the amounts covered by orders of the appellate authority, when appeals are allowed fully or partially. The same shall be refunded even without a formal request for the same"</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court directed refund of the excess fine and penalty with interest and imposed a cost of Rs. 25,000/- on the Commissioner and all officers responsible. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the first round, there was neither interest nor cost, but the Department's adamant attitude in not giving due refund and filing a review petition resulted in interest and costs. The Court was of the view that the Petition itself was an abuse of the process of the court and precious time of the court has also been wasted by this frivolous review petition. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Most probably, the Department will take this case to the Supreme Court, at least on the issue of costs to be recovered from officers and maybe they could even win there, because it is really difficult for a poor assessee to defend his case in the Supreme Court. But with whose money are they playing? </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this High Court order today. Please see<strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=15660" target="_blank">Breaking News</a></strong></font></p>
<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">How to identify status of Service Provider? </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DUE </strong>to increased scope of Reverse Charge by Notification No. 30/2012-ST, now every time, for each invoice, it is very important to identify the status of service provider, for discharging the service tax liability under reverse charge . Now Compliance has increased and it is more than mere checking the bill. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But then, how to identify the status of Service Provider? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This can be verified from the PAN of the service provider and PAN is quoted on invoice of service provider, as Service Tax Registration number is PAN based. One has to see the 4th letter of the Service Tax Registration No., for identifying the status of service provider. The table below shows, what 4th Letter of PAN denotes - </font></p>
<table width="350" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td width="168" valign="top" bgcolor="#3E7CBB"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If 4th Letter of PAN/ST registration is - </font></strong></p></td>
<td width="164" valign="top" bgcolor="#9BBCDD"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Status of Service Provider </font></strong></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">P </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Individual </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">H </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">HUF </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">F </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Partnership Firm </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">C </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Company </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">T </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Trust </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">B </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Body of Individual </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Association of Person </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">L </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Local Authority </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">G </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Government </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#3E7CBB"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">J </font></strong></font></p></td>
<td valign="top" bgcolor="#9BBCDD"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Judicial Artificial Person </font></p></td>
</tr>
</table>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[<strong>DDT</strong> gratefully acknowledges this contribution by CA Swapnil Munot] </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">India Needs to think BIG - PM </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PRIME</strong> Minister Manmohan said yesterday, "India needs to think big. Political parties need to work together to realise the high growth of nine per cent, which India is capable of... If GST is done, there will be a powerful signal on the economic front... The Finance Ministry is working with Chief Ministers and there is an empowered group…" </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">How Daya Shanker joined DRI </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MR</strong>. BV Kumar, Former DG, DRI and Former Member, CBEC, sent us this interesting piece on Daya Shankar </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td bgcolor="#C1F7F0"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I had very close association with him since I brought him to the DRI, which itself was in dramatic circumstances. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He was doing excellent work when he was posted at Bulsar and all the smugglers, including Sukar Naraian Bhakia were scared of him. He was working under Commissioner of Customs, Preventive, Ahmedabad. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He went to make a courtesy call on CCE, Baroda Mrs. Rajamanikkam, who was upset with him that he didn't go in uniform. Either for this or for other unexplained reasons, she recommended to the Board that Mr. Dayashankar should be suspended. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By
chance,I happened to walk into the Chambers of the then Revenue Secretary
Mr. Bandopadhyaya, who was about to sign the Order. He casually enquired
from me as to what type of officer Dayashankar was. I explained to
him that he is one of our best officers and if no body wants him, I
am ready to take him in the DRI at Bombay Zonal Office. This was
agreed to by him and that is how he joined the DRI and did excellent
work at Bombay. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When I sanctioned rewards, he refused to take the same on principle. I suggested that he should take the amount, put it in a trust, and help poor students for their education. However, he refused even this suggestion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The smugglers were not only afraid of him but also respected him for his integrity. I wish at least 10% of our Departmental Officers would emulate his lofty principles in life. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">May his soul rest in peace. Kindly convey our deep condolences through your esteemed Website. </font></p></td>
</tr>
</table>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT Cartoon </strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_first_lesson.png" alt="Legal Corner Icon" width="424" height="479" hspace="5" border="0" align="center"></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">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Vessels for breaking up - Whether bunkers containing oil are to be treated as part of vessel's machinery so as to attract Entry No.89.08 of Schedule to Customs Tariff Act, 1985?" - Yes, HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VESSELS </strong>for breaking up are classified under entry No 89.08 of the Schedule to the Customs Tariff Act, 1985 attracting tariff rate of 10%. Now, how to deal with the fuel that is left on the vessel when it is imported for breaking up? Should it be classified under CTH No 89.08 as part of the vessel or should it be assessed under a different tariff entry? </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">Whether restrictions u/s 10A(9) was applicable only for assessee who availed exemptions u/s 10A w.e.f April 1, 2001 - Ruled in favour of assessee: 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 when section 10A(9) was omitted w.e.f April 1, 2004 on the grounds of causing undue hardship, exemption can be availed in the AY 2004-05, inspite of an acquisition of shares resulting in change of ownership the previous year; Whether AO's order allowing exemptions u/s 10A is erroneous and prejudicial to the interests of the revenue, when the Commissioner never challenged the genuineness of such change in ownership, and AO relied upon the omission as appearing in section 10A during the AY; Whether a previous order of the Tribunal passed in the case of the assessee, can be relied upon, when the jurisdictional High Court has taken a different view in a later judgement, allowing exemption u/s 10A; Whether restrictions u/s 10A(9) was applicable only for assessee who availed exemptions u/s 10A w.e.f April 1, 2001; Whether restrictions in terms of General Clauses Act, arising in a case of repeal can be applied to an omission and Whether the speech of the Finance Minister can be relied upon in case of any ambiguity while interpreting any provision of the Income Tax Act. And the verdict goes in favour of 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">Valuation - S.4 of CEA, 1944 - Assessee entered into two different contracts, one for supply of DG sets and another for installation/erection and commissioning at customer's site - charges for installation /erection / commissioning cannot be considered for inclusion in assessable value of DG sets - Revenue appeal dismissed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the present case, the assessee supplies D.G sets in CKD condition under one purchase order and also has in place another contract order for erection and commissioning of the DG set at the customer's site. Revenue is of the view that this bifurcation of orders is for the purpose of avoiding payment of Central Excise duty on the value component of ‘erection and commissioning charges'. Viewing that as per the provisions of section 4 of the CEA, 1944, the total consideration amount is to be taken for levy of Central Excise duty, they issued a notice seeking to include the ‘erection and commissioning charges' in the assessable value and recovery of differential Central Excise duty. </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Monday is a Holiday</font></strong></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 Tuesday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice weekend</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>
</body>
</html>