TIOL-DDT 1933 · 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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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></strong></font></strong></font><font color="#663399" size="3">TIOL-DDT 1933 </font><br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>03.09.2012 <br>
Monday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WTO Panel established at India's request </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> WTO Dispute Settlement Body (DSB) has constituteda panel to consider the United States imposition of countervailing measures on certain hot-rolled carbon steel flat products from India. India considers that the measures are inconsistent with the US obligations under several provisions of the Agreement on Subsidies and Countervailing Measures and the GATT 1994. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At the request of India, the DSB established a panel to consider the United States imposition of countervailing measures on certain hot-rolled carbon steel flat products from India. India considers that the measures are inconsistent with the US obligations under several provisions of the Agreement on Subsidies and countervailing measures and the GATT 1994. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At the meeting, India acknowledged that every WTO member has a right to levy countervailing duties, but this right can be exercised only within the framework of the Agreement on Subsidies and Countervailing Measures and the GATT 1994. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The United States showed disappointment that India decided to request a panel on this matter and stated that the subsidies provided by India at both state and national level to its domestic steel industry “cause material injury to manufacturers attempting to compete with India's steel industry”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Members reserving their third party rights were European Union, Saudi Arabia, Canada, China, Turkey and Australia. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs- Tariff Value of Palmoline, Brass Scrap, Poppy Seeds, Gold and Silver </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has changed the Tariff Values as follows. </font></p>
<table width="90%" border="0" align="center" cellpadding="3" cellspacing="1" bgcolor="#000000">
<tr bgcolor="#006600">
<td width="311" rowspan="2" valign="top" bgcolor="#98BB66"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Description of the goods </strong></font></p> <div align="left"></div></td>
<td width="257" colspan="2" valign="top" bgcolor="#98BB66"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value </strong></font></p></td>
</tr>
<tr>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Existing</strong></font></p></td>
<td width="130" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Changed</strong></font></p></td>
</tr>
<tr>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBDPalmolein </font></p></td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1022 USD per MT </font></p></td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1014</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
</tr>
<tr>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4064 USD per MT </font></p></td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>4011</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
</tr>
<tr>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy Seeds </font></p></td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5613 USD per MT </font></p></td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>5435</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
</tr>
<tr>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold, in any form, in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">527USD per 10 grams </font></p> </td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>540</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per 10 grams </font></p> </td>
</tr>
<tr>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form, in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">913USD per kilogram </font></p> </td>
<td width="0" valign="top" bgcolor="#FFFFFF"><p align="left"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>996</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per kilogram </font></p> </td>
</tr>
</table>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_079.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 79/2012-Cus.,(N. T.), Dated: August 31, 2012 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The GAAR Report- Comments Invited </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government had constituted an Expert Committee on General Anti Avoidance Rules (GAAR) to undertake stakeholder consultations and finalise the GAAR guidelines as well as a roadmap for implementation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The Committee, chaired by Dr.ParthasarathiShome, has submitted its draft report after analysis of the GAAR provisions and noting the concerns expressed by various shareholders. The draft report has recommended certain amendments in the Income-tax Act, 1961; guidelines to be prescribed under the Income-tax Rules, 1962; circular to clarify GAAR provisions along with illustrations; and other measures to improve tax administration specifically oriented towards GAAR matters. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has invited comments and suggestions from stakeholders and the general public, which can be mailed to <a href="mailto:jstpl2@nic.in">jstpl2@nic.in </a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ships are safest at the harbours, but they are not meant to be there- Narayana Murthy </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INFOSYS</strong> Narayana Murthy has come down heavily on the lethargic Indian bureaucrat in an interview with a TV Channel. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Narayana Murthy said, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We have fallen far short of expectations and it's no longer possible to sell the ‘India story'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I meet a lot of chief executives outside India and earlier India was mentioned once every three times China was mentioned. But now, if China is mentioned 30 times, India is not even mentioned once. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The first requirement for doing business between any two entities is trust and this is what I have learnt in the last 30 years. We should do nothing that will reduce that trust. Saying that we will go back and change the law on retrospective basis is like taking a pistol and shooting ourselves, and that doesn't make sense. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the IT industry contributes 25 per cent to exports, how its problems are not seen as urgent or how its problems are not solved by 5 pm this evening. I met Mr. Mukherjee four times, I met the Prime Minister twice, I met the finance secretary, I met KaushikBasu, the chief economic advisor three times, all of that. I mean just defining what is software exports, just making sure the growth of the industry is not curtailed by unnecessary clauses in the tax administration, it should not happen. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ships are safest at the harbours, but they are not meant to be there. </strong><a></a></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">That is the real power of the Babu. Surely, the Prime Minister and the then Finance Minister must have been keen to solve the problems raised by Narayana Murthy- but no,babudom and red tape will ensure that things don't move. If Narayana Murthy after meeting the top executives of the country could not get a definition of export clarified, shouldn't ordinary businessmen endure the fact that they are condemned to do business in a country where the bureaucrat can frustrate not only their plans but also those of their political masters. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No Anticipatory Bail for Absconders - Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN a judgement delivered on 31 August 2012, the Supreme Court held: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Normally, when the accused is “absconding” and declared as a “proclaimed offender”, there is no question of granting anticipatory bail. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>We reiterate that when a person against whom a warrant had been issued and is absconding or concealing himself in order to avoid execution of warrant and declared as a proclaimed offender in terms of Section 82 of the Code is not entitled the relief of anticipatory bail </em>. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>US Immigration and Customs Enforcement (ICE) Chief Resigns- Sexual Harassment of Male Employees </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SUZANNE BARR</strong> - She is at the top of the hierarchy as Chief of Staff of the US Immigration and Customs Enforcement (ICE), the second largest enforcement agency in the U S of A. The ICE has over 20,000 employees and a budget of nearly six billion dollars. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The high profile lady chief was recently accused of indulging in sexual harassment of male employees. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The lady resigned on Saturday denying all the allegations against her, but quit the job <em>to prevent further harm to the agency and to prevent this from further distracting from critical work </em>. </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 align="justify"><font 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><font color="#663399">Income Tax </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether Sec 10A(4) aims at ensuring no double benefits are reaped by assessee, and thus to be deducted before claiming brought forward losses - YES: Delhi High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong>issues before the Bench are - Whether Section 10A provides for total exemption from tax or only a deduction from the income; Whether difference between exemption and deduction is that an exempt income does not enter the computation of total income whereas in case of deduction, it first gets included in the total income, and then gets deducted subject to several conditions; Whether sub-section (4) of Sec 10A aims at ensuring that there is no double benefit arising to the assessee in respect of the same income and Whether for the purpose of Section 10A, the losses suffered in the non-EPZ Unit can be set off from the profit/income of the EPZ Unit - Whether for computing deduction u/s 10A in respect of EPZ Unit, brought forward losses of the Non-EPZ Unit are to be first deducted / reduced. And the verdict goes in favour of the assessee. </font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Turf Club gallops away from Six crores Service Tax demand- Fees charged from bookies, royalty income received from other racing clubs for live telecast of races and royalty from caterers are not chargeable to Service Tax under 'Business Support Services', 'Broadcasting Services' and 'Intellectual Property Rights Services'- total confusion in minds of adjudicating authorities as to nature of the tax and the measure of tax: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>perusal of the impugned orders clearly evidences the lack of clarity and understanding on the part of the department. The activity of live telecast of the horse race has been classified as broad casting services during one part of the period and during another period the very same activity is classified as intellectual property rights service - during the same period, the activity has been classified under the above two categories based on the mode of payment for the services, that is, whether payment is lump sum or varying as a percentage of the bet amounts - different classifications have been adopted based on different modes of payment, for the same activity - same confusion prevails in respect of the consideration received from the book makers - There is a total confusion in the minds of the adjudicating authorities as to the nature of the tax and the measure of the tax. On this ground alone the impugned orders deserve to be set aside. </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 color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Observations made by the adjudicating authority that arguments made by departmental representative were ignored by Tribunal, are not only bad in taste but amounts to contempt: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> adjudicating authority has not carried out the directions of the Tribunal but has virtually sat in appeal over the Tribunal's judgement. If the Revenue was not in agreement with the Tribunal's decision, it was open to them to challenge the same before the higher appellate forum. The Revenue having not done so, is deemed to have accepted the order of the Tribunal and the original adjudicating authority was bound to implement the same and to carry out the instructions/directions given by the Tribunal. </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cenvat - GTA Service - Place of removal automatically extends up to port of shipment when goods are to be delivered on board vessel: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant availed the credit of the service tax paid on GTA services in respect of the transportation of goods from the factory premises to the port of shipment in India which according to the appellant was the place of removal in respect of export goods. The department was of the view that since these services are rendered outside the factory premises after clearance of the goods, the same is not an input service and, hence, the appellant is not eligible for availing the Cenvat credit on the service tax paid on these services. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columnsTomorrowfor the judgements </strong></font></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 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"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
</body>
</html>