TIOL-DDT 1983 · 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 1983</font><br>
15.11.2012<br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">As Respondent has expired, appeal abets! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RULE</strong> 22 of the CESTAT (Procedure) Rules, 1982 reads - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>"RULE 22. Continuance of proceedings after death or adjudication as an insolvent of a party to the appeal or application.</strong> - Where in any proceedings the appellant or applicant or a respondent dies or is adjudicated as an insolvent or in the case of a company, is being wound up, the appeal or application shall abate, unless an application is made for continuance of such proceedings by or against the successor-in-interest, the executor, administrator, receiver, liquidator or other legal representative of the appellant or applicant or respondent, as the case may be: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided that every such application shall be made within a period of sixty days of the occurrence of the event: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided further that the Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period so specified, allow it to be presented within such further period as it may deem fit."</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We came across this order recently. In the said case, the respondent expired and the counsel for the respondent informed the Bench about the same. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Bench passed the following order - </font></p>
<blockquote>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">“1. The Counsel for the respondent vide letter dated 23.07.2012 informed that the respondent Shri J.C.Maroo expired on 30.05.2012 and have filed a copy of death certificate. In view of the fact that the respondent had expired, the appeal abets (sic), in view of the provisions of Section (sic) 22 of the CESTAT Procedure Rules. However, the Revenue can take further action if so desired, in accordance with the provisions of Rule 22 of the CESTAT Procedure Rules.” </font></em></p>
</blockquote>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(See </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2012/2012-TIOL-1642-CESTAT-MUM.htm" target="_blank">2012-TIOL-1642-CESTAT-MUM</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">)</font></strong></p>
<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Tariff Value of RBD Palmolein, Brass Scrap, Gold and Silver</font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has changed the Tariff Values as follows. </font></p>
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<td valign="top" bgcolor="#A5CD52"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of the goods </font></strong></font></p></td>
<td colspan="2" valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value </font></strong></font></p></td>
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<td valign="top"> </td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Changed </font></strong></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palmolein </font></p></td>
<td valign="top"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">889</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
<td valign="top" bgcolor="#D5E8AE"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">887</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td valign="top"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">4096</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
<td valign="top" bgcolor="#D5E8AE"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">4029</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per MT </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy Seeds </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5346 USD per MT </font></p></td>
<td valign="top" bgcolor="#D5E8AE"><p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">5346 </font></p>
<p><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">There is actually <strong>No Change</strong>, but this is notified again </font></p></td>
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<td valign="top"><p><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 valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">556</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per 10 grams </font></p></td>
<td valign="top" bgcolor="#D5E8AE"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">561</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per 10 grams </font></p></td>
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<td valign="top"><p><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 valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1039</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per kilogram </font></p></td>
<td valign="top" bgcolor="#D5E8AE"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1058</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> USD per kilogram </font></p></td>
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</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_098.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 98/2012-Cus.,(N. T.), Dated: November 14, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Why Can't CESTAT Appeal Fee be Paid Online? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AT</strong> present, when you file an appeal or application before the CESTAT, you are required to pay the fee by Demand Drafts in favour of the Assistant Registrar. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a letter addressed to the President of the CESTAT, the President of Bangalore INDIRECT TAX PRACTITIONERS' ASSOCIATION, BN Gururaj submitted:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. This method of paying the appeal fee was fixed in 1983, a time when Internet banking was totally unknown in the country. Regrettably, even after nearly thirty years experience, this anachronistic method of collection of appeal and application fee has continued. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. By this representation, the Association requests the President to review this matter and direct that the appeal and application fees be paid online using the facility of Internet banking. This will not cause any hardship to the appellants, as now all the indirect taxes are paid online by all the assesses. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Therefore, payment of aforesaid fees on-line would be a convenience rather than any hardship to the litigant public, especially for the manufacturers situated in remote locations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. On the other hand, DD system is not secure, and is prone to fraud. Even when no fraud occurs, it results in delayed realization of fees by the Tribunal. The monies unproductively get held up in the banking system. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Association has requested the President to examine the representation and allow online payment of fees at none-too-distant future. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is not the only area where the Tribunal should make better use of Information Technology. At least to start with some parts of court work like adjournments, stay applications, compliance reports etc,.can be allowed online and maybe through video conferences. Maybe CESTAT can make a good beginning by introducing e-payment of fees. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Indirect Taxes Ombudsman gets a Roof </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Indirect Taxes Ombudsman for Delhi was appointed in April 2012 and for want of an office space, the ombudsman was functioning from his residence. At last, they have found an office for him. The Ombudsman has moved into his new office at Suit No. 580, 5th Floor, Samrat Hotel, New Delhi. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Positive List? </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> received this greeting from a Netizen </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">May Difficulties, Disappointments and Desperation remain in the 'Negative List'; May stress and sorrow remain in the 'Exclusion Clause'; May God 'declare' you eligible for all the happiness in the world; May you always remain exempted from health related issues under the 'Mega Exemption'; May success and achievements keep reverting back to you under 'Reverse Charge'; May your life be a 'composite element' of 'Bliss' ( SHUBH ) and ' material abundance' (LABH)and you never face a problem in arriving at 'Fair Value' of life; May there be a 'continuous supply' of SERENITY, SUKH, SIDDHI & SAMRIDDHI in your life! These are our fervent prayers to GOD this DIWALI for You! Wish YOU & Your FAMILY a VERY HAPPY DIWALI & a PROSPEROUS & WONDERFUL NEW SAMWAT YEAR 2069!!</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"> - Friday'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">Cenvatted items after use cleared without payment of duty - Revenue demanding duty as Scrap without indicating any classification of items - For demanding duty on excisable goods, firstly same are to be classified under tariff heading and thereafter appropriate rate of duty is to be applied: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOR</strong> demanding duty on excisable goods, firstly the same are to be classified under a tariff heading and thereafter applicable rate of duty is to apply. In the present case, neither in the impugned order nor in the order-in-appeal there is a finding regarding the classification of items in question. Therefore, the matter requires re-consideration by the adjudicating authority to decide the matter afresh regarding the issue of classification and the applicable rate of duty. The impugned order is set aside after waiving the pre-deposit of the dues adjudged. The matter is remanded to adjudicating authority for de novo consideration. </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 fails to deduct tax at source from payments made but deposits TDS due before end of FY, even then disallowance u/s 40(a)(ia) is warranted - NO: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AO</strong> observed that out of the total amount debited under the head “freight and cartage”, a sum of Rs.10,18,825 was paid to five persons exceeding the prescribed limit of Rs.50,000 on which no tax was deducted at source. According to the AO, since no tax was deducted at source, the said expenditure was not allowable. He made disallowance by invoking provisions of section 40 (a)(ia). The CIT(A) deleted the addition after having observed that there was no violation of provisions of section 194C and therefore the AO was not right in invoking the provisions of section 40 (a)(ia). The issue before the Bench is - Whether when assessee fails to deduct tax at source from the payments made but deposits the TDS sum before the end of the FY, even then disallowance u/s 40(a)(ia) is warranted. NO is the Tribunal's answer.</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"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">ST
- Appellant borrowed money by way of 'syndicated loans' from
various overseas banks for purpose of international acquisitions and capital
expansions - Borrowing and lending are two sides of the same coin and one cannot
exist without the other - appellant paid arrangement fees, agency fees, commitment
fees or other fees for procuring lender/lender syndicate - service correctly
classifiable under Banking & Financial Services - tax liability under
reverse charge mechanism for the period prior to 18.04.2006 not sustainable
- pre-deposit ordered of Rs. 1 Crore: CESTAT</font>
</strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> appellant
borrowed money by way of ‘syndicated loans’ from
various overseas Banks for the purpose of international acquisitions and capital
expansions. In order to procure a lender/lender syndicate, the appellant appointed
various Banks abroad as Mandated Lead Arrangers (MLAs) and paid arrangement
fee, which is the fee paid to procure lender/lender syndicate. The department
was of the view that the appellant was liable to pay Service Tax on the fees
paid to the MLAs and accordingly issued notice for recovery of Service Tax
amounting to Rs.8,05,24,006/- along with interest during the period 1.10.2005
to 31.1.2007 under the category of Banking and Financial Services under the
reverse charge mechanism as provided for vide Section 66A of the Finance Act,
1994. </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><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>vijay write@taxindiaonline.com </strong></a></font></p>
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