TIOL-DDT 1958 · 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 1958 </font><br> 09.10.2012 <br> Tuesday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Section 138 of the NIA - Dishonoured Cheques </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SUPPOSE </strong>you get a cheque from somebody who owes you money and the cheque bounces. What happens? Under Section 138 of the Negotiable Instruments Act, the person giving you such cheque is an offender and can be punished with two years imprisonment or fine up to twice the amount of cheque or both. But there are certain conditions: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The cheque ought to have been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The payee or the holder in due course of the cheque, as the case may be, ought to make a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The drawer of such a cheque should have failed to make payment of the said amount of money to the payee or as the case may be, to the holder in due course of the cheque within fifteen days of the receipt of the said notice. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Complaint has to be filed within one month from the date of the cause of action in (3) above happens. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now suppose after the cheque has bounced and you send a notice to the drawer of the cheque and he tells you that he would arrange the money and requests you not to file a case and present the cheque to the bank again. You do that and the cheque again bounces. You send another notice and then file a complaint in the Court. Is the Complaint valid? NO, according to the Supreme Court in a fabled judgement delivered in 1998. And this has been the Law for the last 14 years! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, the Supreme Court reversed this view and held that prosecution based upon second or successive dishonour of the cheque is also permissible so long as the same satisfies the requirements stipulated in the proviso to Section 138 of the Negotiable Instruments Act. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court observed that the object underlying Section 138 of the Act is to promote and inculcate faith in the efficacy of banking system and its operations, giving credibility to Negotiable Instruments in business transactions and to create an atmosphere of faith and reliance by discouraging people from dishonouring their commitments which are implicit when they pay their dues through cheques. The provision was intended to punish those unscrupulous persons who issued cheques for discharging their liabilities without really intending to honour the promise that goes with the drawing up of such a negotiable instrument. It was intended to enhance the acceptability of cheques in settlement of liabilities by making the drawer liable for penalties in case the cheque was dishonoured and to safeguard and prevent harassment of honest drawers. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this Supreme Court Order today. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16046" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see Breaking News </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Pay up Defaulted Committed Tax - CBDT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANALYSIS</strong> of e-filed returns in the current Financial Year reveals that nearly 29,000 taxpayers, where committed tax payable was in excess of Rs. 50,000, have defaulted on the payments aggregating to approximately Rs.3,770 crores. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax Department urges all taxpayers who have filed their returns for A.Y. 2012-13 and have defaulted on payment of committed tax, as self-assessment tax of any amount, to immediately come forward and pay the due taxes without any further loss of time. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT brings to the notice of such taxpayers that default in payment of self-assessment tax may invite penal consequences. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/press_release402.htm"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Press Release in 402/92/2006-MC (25 of 2012); Dated: October 08, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Safeguard Duty on Carbon Black </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has imposed a safeguard duty on Carbon Black (for rubber application), falling under tariff item 2803 00 10 of the First Schedule to the Customs Tariff Act, when imported into India from the People's Republic of China at the rate of- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Thirty per cent <em>ad valorem</em> minus anti-dumping duty payable, if any, when imported during the period from 5th October, 2012 to 4th October, 2013(both days inclusive); and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Twenty five per cent <em>ad valorem</em>, minus anti-dumping duty payable, if any, when imported during the period from 5th October, 2013 to 31st December, 2013(both days inclusive).</font></p> </blockquote> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=338&filename=notification/custom/2012/ctariffsg12_004.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.4 / 2012-Customs (SG), Dated: October 5, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Every Government is entitled to lay down policies - FM </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADDRESSING </strong>the Economic Editors' Conference yesterday, the FM said, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let me tell you the plain truth. Without reforms, we risk a sharp and continuing slowdown of the economy, which we cannot afford, given the imperative need to generate jobs and incomes for a large population, most of whom are young. For example, take FDI in retail. What is the controversy about? The first comprehensive Cabinet paper on FDI in retail was prepared by the NDA Government in 2002. It was considered by a Group of Ministers. That paper acknowledged that FDI in retail was essential to improve the supply chain in agriculture, which alone will bring benefits to both producers and consumers. That paper also endorsed the argument that FDI in retail will generate millions of jobs. The idea was never rejected. So, why should there be a controversy when the Government announced its intention to lay down guidelines in order to enable FDI in retail? Government has also made it clear that the ultimate decision whether FDI in retail will be allowed in any State will rest with the State Government concerned. No State can say that other States should also allow FDI in retail; similarly, no State can say that other States should not allow FDI in retail. The controversy over FDI in retail is, in my view, unnecessary and unjustified. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Every Government is entitled to lay down policies. <strong>Opposition to policies is legitimate, obstructionism is not.</strong> The Government of the day must be allowed to lay down policies, pass legislation wherever necessary and get on with the job of implementing those policies. Whether the policies are right or wrong and whether the policies have brought benefit to the people are matters on which the people alone can pass a judgment. Under our system, there is a judgment day for every Government at the end of five years. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I believe that the India growth story is sound and the reform momentum will remain strong and unabated. We should shed self-doubt. We should banish irrational fears. We should embrace the future with confidence. We should believe that we have the capacity to overcome any crisis, as we did in 1991, 1997 and 2008. We have a good story to tell the people of India and the rest of the world and I ask your support in communicating that story </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Retro Tax Issues - No Reason to Wait until Budget - FM </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANSWERING</strong> a question at the Economic Editors' Conference, the FM said, "<em>Once we take a view, I see no reason why we should wait for the budget session. We should move whatever changes have to be brought about in Parliament as early as possible</em>". </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"Resolution of the tax disputes, both pending and anticipated, is good for the country, good for the economy and good for investments. So, we must find ways to resolve the issue,"</em> he added. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Don't Expect us to be Your Cheerleader - CAG to Government </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/Cheerleader.jpg" alt="" width="198" height="220" hspace="5" border="0" align="left">COMPTROLLER</strong> and Auditor General, Vinod Rai told his officers yesterday, "We cannot don the role of cheerleaders. We strive to provide objective feedback on the functioning of the various departments of the government".</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He admitted that <em>the increasing aspiration of citizens coupled with their increasing demand for better services from the government, the phenomenal expansion of media and the right to information available to the people demand a new accountability paradigm in our country. Today, all institutions including ours are in the public eye. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Addressing the same meeting, President Pranab Mukherjee said, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All constitutional authorities should introspect their respective roles. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All constitutional authorities need to adhere to the fine and calibrated system of checks and balances, which form the bedrock of governance structures. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any attempt by any organ of the state to overreach will unnecessarily lead to dissonance within the system. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There will be moments in a nation's life when institutions would appear to be under stress but as long as we have faith in our basic democratic values and the supremacy of our people and Parliamentary processes, we shall be able to tide over any crisis that we may face. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Train From Pakistan - With Rs 525 Crores Worth Heroin </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> what could be one of the biggest seizures of drugs, Indian Customs officers recovered 105 kgs of heroin valued at Rs. 525 Crores in the international market from a Pakistani goods train loaded with cement. The wagon, which had this heroin along with cement bags, was sealed at Attari Border but the seal was found broken when it reached Amritsar for unloading. The contraband was found among the cement bags. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While the quantity may appear small compared to the huge seizure in Amritsar, the Forbesganj Customs Preventive Division Assistant Commissioner is in the habit of routinely seizing narcotics originating from Nepal from Delhi bound trains. In the last four months, his team has made 6 narcotics seizures valued at Crores of rupees. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT salutes these Customs officers who risk their lives in the service of the Nation. </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"> - Wednesday'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">NDPS </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">First Time Offenders who are poor - Sentence reduced to 10 years from 15 years and imprisonment of three years in lieu of fine reduced to six months: SC</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>is projected that both the appellants are first time offenders and there is no past antecedent about their involvement in offence of like nature on earlier occasions. Sentence reduced to 10 years, which is the minimum prescribed sentence under the relevant provisions of the NDPS Act. It was their first offence and if they fail to pay the amount of fine as per the order of the Additional Sessions Judge, they have to remain in jail for a period of 3 years in addition to the period of substantive sentence because of their inability to pay the fine. Serious prejudice will be caused not only to them but also to their family members who are innocent. Default sentence reduced to six months. </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 when assessee actually receives no gifts from NRIs but mis-declares large sums as gifts on capital account, detection of such receipts during a Search is to be treated as undisclosed income - YES: HC </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 the assessee actually receives no gifts from NRIs but mis-declares large sums as gifts on capital account, detection of such receipts during a Search is to be treated as undisclosed income; Whether the evidence found during the search can alone be a basis for block assessment; Whether where the gifts received by the assessee are found to be not genuine, then the amounts represented by those gifts become undisclosed income and hence covered under block assessment; Whether the burden of proof is on the assessee in terms of Section 158BB(3) of the Act to satisfy the AO that the so called undisclosed income has already been disclosed in the return of income filed by the assessee and Whether mere mentioning of an amount as capital receipt in the Capital Account would not amount to a disclosure of income. And the verdict goes against the assessee. </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">Bullock-carts <em>prima facie</em> cannot be considered as machinery, equipment or appliances, hence, giving on hire bullock-carts cannot be considered as 'supply of tangible goods for use' - Stay petition allowed and matter remanded as Commr(A) had not decided appeal on merits: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the present case, the applicants are engaged in the manufacture of sugar and molasses and the applicants are only supplying bullock-carts and they have entered into an agreement with one Seva Sangh and under that agreement the bullock-carts were given to the Sangh for transporting the sugarcane to the factory. The contention of the applicant is that bullock-carts cannot be treated as equipment, machinery or appliances. Therefore, the applicants are not liable to pay service tax under the supply of tangible goods service. Hence, the demand is not sustainable. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow 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 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> </body> </html>