TIOL-DDT 1947 · the untouched capture
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<!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 1947</font><br> 21.09.2012 <br> Friday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT Retirement Age - Ministry asks TIOL to remove Notification</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON </strong>12.09.2012, <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=15857" target="_blank">DDT 1940</a> </strong>carried the news that the CESTAT Recruitment Rules have been amended to extend the retirement age of CESTAT President and Members. We had carried the notification issued by the Finance Ministry. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On 18.09.2012, <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=15898" target="_blank">DDT 1944</a></strong> carried the news that the notification extending the retirement age is being withdrawn. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We were correct on both the occasions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Ministry informs us:- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>It is submitted that your website <a href="http://www.taxindiaonline.com"><strong>www.taxindiaonline.com</strong> </a>is carrying an article under its 'DDT' segment stating that important changes have been made in the service conditions of Members of CESTAT. The article gives link to a DOR notification issued from F.No.A.50050/22/2011-81C(CESTAT) dated 31.08.2012. </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. It is clarified in this regard that no such notification has been notified by the Government. The said notification is only in a draft stage which is yet to attain finality. It is accordingly requested that the aforesaid article and the so called notification may be immediately removed from your website as continuation of the same will cause unnecessary confusion and may mislead the stakeholders. </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As the Government has clarified that the notification was at the draft stage and it is not notified, we should now assume that there is no extension of retirement age - at least as of now. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While at it, another letter from the Ministry to the Government Press, clarifies that <em>the Notification dated 31.08.2012 from F.No.A.50050/22/2011-Ad.IC (CESTAT) was issued inadvertently. The procedure for the notification is yet to be completed. You are therefore requested not to publish it in the official Gazette. Please return it to this Department immediately. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Conclusion:</strong> There was a notification, which was issued inadvertently, and its publication in the gazette has been stopped. We would not like to comment further. Let the issue be deemed as closed. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/article_amendment_CESTAT.pdf" target="_blank">Ministry's Letter to TIOL</a>; <a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/amendment_CESTAT.pdf" target="_blank">Ministry's Letter to GOI Press</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Policy on FDI - Multi Brand Retail </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified the revised Policy on Foreign Direct Investment- allowing FDI in Multi-Brand Retail Trading. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PROHIBITED SECTORS: </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">FDI is prohibited in: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Lottery Business, including Government /private lottery, online lotteries, etc. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Gambling and Betting, including casinos etc. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Chit funds </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Nidhi company </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) Trading in Transferable Development Rights (TDRs) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) Real Estate Business or Construction of Farm Houses </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than Mass Rapid Transport Systems). </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Foreign technology collaboration in any form, including licensing for franchise, trademark, brand name, management contract, is also prohibited for Lottery Business and Gambling and betting activities. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Minimum amount to be brought in, as FDI, by the foreign investor, would be USD 100 million. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- At least 50% of total FDI brought in shall be invested in 'backend infrastructure' within three years of the first tranche of FDI. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- At least 30% of the value of procurement of manufactured Processed products purchased shall be sourced from Indian 'small industries' which have a total investment in plant & machinery not exceeding USD 1.00 million. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Government will have the first right to procurement of agricultural products. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of multibrand retail trading. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has also released the revised policy for FDI in Single-Brand Product, Civil Aviation sector, Broadcasting Sector, Power Exchanges. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">HMRC Targets Tax Dodging Lawyers </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BRITAIN'S</strong> HM Revenue and Customs has launched a task force to tackle tax dodgers including one targeting the legal profession. Taskforces are specialist teams that undertake intensive bursts of activity in specific high-risk trade sectors and locations in the UK. The teams will visit traders to examine their records and carry out other investigations. The HMRC Boss says, “<em>We have made it clear that we will not tolerate tax evasion and we are determined to crack down on the minority who choose to break the rules. Everyone needs to pay the taxes they owe in full. It is not fair that at a time when most hard-working people are paying the right tax, others are trying to get out of paying what they should; This is not an empty threat - HMRC can and will track you down if you choose to break the rules.</em>” </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exchange Rates Notified </strong></font></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 21 09 2012. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_084.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Notification No. 84/2012-Cus.,(N.T.), Dated: September 20, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ramesh Nair Appointed CESTAT Member </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Ramesh_Nair.jpg" alt="Legal Corner Icon" width="204" height="257" hspace="5" border="0" align="left">Ramesh Nair, a practicing advocate in CESTAT has been appointed as Member (Judicial) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Born on 13.12.1962 at Mhow in Indore District of Madhya Pradesh, Mr. Ramesh Nair is a postgraduate in Commerce apart from holding a degree in Law. He has industry experience in the indirect taxes field and has been a practicing lawyer in CESTAT and High Courts since 1995 and over the years had established a successful Law firm which functions from several places. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">His wife Sudhalakshmi Ramesh is also an advocate. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He brings to the Bench rich experience from the Bar of the same Tribunal and should be ready to go from Day One, as there is nothing that he needs to learn newly. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As he crosses over from the Bar to the Bench, we wish him all the best. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Simplify Tax Laws - Vigilance Commissioner to CBEC </font></strong></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Vigilance_Commissioner.jpg" alt="Legal Corner Icon" width="260" height="180" hspace="5" border="0" align="center"></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL</strong> Vigilance Commissioner JM Garg told the CBEC to make the laws simple so that different interpretations are avoided. "For example, if two Commissioners interpret laws in different ways then there will be problems. Similarly a tax payer and his lawyer, they interpret it in different ways. Then there is a question mark whether the law is currently effective or requires any amendments," he said while inaugurating a conference on<em> transparent and robust vigilance mechanisms</em> organised by CBEC. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Vigilance Commissioner said that simplification would also help in resolving disputes. The innocuous Vigilance Commissioner does not know that for the last sixty years or so, the Board has been on the mission of simplification of laws and brought them to such complicated levels that now nobody understands them. How do you understand the exemption for “<em>All goods, other than those which are clearly not to be used as fertilisers</em>”? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps there is a vested interest in keeping the laws complicated. </font></p> <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_1947_Cartoon.jpg" alt="Legal Corner Icon" width="400" height="452" 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"> – Monday'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">Excise duty paid erroneously twice on same clearances - Limitation under Section 11 B is not applicable for refund of such excess payment: HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner is engaged in the manufacture of sanitary wares which are excisable goods. Between June 2002 and September 2002, the petitioner cleared goods on payment of duty of Rs 91,129/-. However, due to clerical error, the petitioner paid the same duty again by debiting the PLA. Realizing the double payment, the petitioner filed a refund claim on 01.11.2003 for the excess duty paid. The claim was, however rejected by the department on the ground of time bar under Section 11B of the Central Excise Act, 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="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether gift of IMD certificates can be equated with gift of money, even when former is not freely exchangeable and transferable like money - NO: 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 the gift of IMD certificates can be equated with gift of money, even when the former is not freely exchangeable and transferable like money; Whether in view of this, section 56(2)(V) & (Vi) can be applied to such gift of IMD certificates and Whether provisions of section 56(2)(V) can be applied to a situation where the IMD certificates have been gifted before September 1, 2004, but proceeds are matured thereafter. And the verdict goes against the Revenue. </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">Service provided by a visa facilitator in form of assistance to individuals directly, to obtain a visa, does not fall under any of taxable services: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants are engaged in the activity of visa facilitation and providing customer care services to the Diplomatic Mission Embassies/Consulates and the Visa applicants. In furtherance of their activity, they provide facility to the applicants (who seek visa) for filling of application form for visa and submitting the same with the respective Consulates. They also provide lounge services to the persons who have applied for visa and charges for food items and beverages supplied to the visa seekers. The department is of the view that the activity undertaken falls under the category of “Business Auxiliary service” and the appellant is liable to pay service tax. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT </strong></font></p> <p><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>