TIOL-DDT 1992 · 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 1992</font><br>
29.11.2012<br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Leslie
Claudius Gets Rs 6 Lakhs from CBEC </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOUR</strong> Olympic Medals (three gold and one silver), a Padmasri, a retired Assistant Collector of Customs - unmatched by any other Indian - that is Leslie Claudius for you.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16196"><strong>DDT 1972 30.10.2012 - CBEC - Please Take Care of Olympian Leslie Claudius</strong></a><strong>. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Former CBEC Member SK Choudhury has written a letter to the Chairman and Member (P&V) of CBEC, "<em>Let Leslie not feel that in the twilight of his illustrious life with the inevitable aging process taking its toll, he has been deserted by the very family of which he was such a proud member! I, therefore, appeal to you as the head of the service for taking initiative in organising immediate grant of sufficient fund from the Welfare Fund for his treatment</em>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is learnt that Board has acted swiftly and an amount of Rs. 6 Lakhs was sanctioned and a cheque has been issued. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A great gesture! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> had commented, "<em>The CBEC should act immediately, while Leslie is still alive. Madam Chairman - this is a great opportunity for you to prove that Customs is <strong>concerned</strong>.</em>"</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We heartily congratulate the CBEC and FM for this noble act - and in time. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CE - Valuation - Fiat India's Review Petition Dismissed by SC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Supreme Court had in <em>Commissioner of Central Excise Mumbai vs Fiat India Pvt Ltd</em> - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2012/2012-TIOL-58-SC-CX.htm" target="_blank"><font size="1">2012-TIOL-58-SC-CX</font></a></strong> held that for the cars sold at below the cost of production, the value for payment of excise duty would be the cost and not the sale price. This judgement has overhauled the concept of valuation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee - Fiat had filed a review petition and the Supreme Court on 27.11.2012, dismissed the Review Petition. The Supreme Court order reads as </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We have gone through the Review Petitions and the connected papers. We see no reason to interfere with the order impugned. The Review Petitions are, accordingly, dismissed. </font></em></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2012/2012-TIOL-110-SC-CX.htm">2012-TIOL-110-SC-CX</a></strong></font> </p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue files Early Hearing Application for 'dismissed' Appeal </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EITHER </strong>there is no co-ordination in the Commissionerate or there is no constructive work to be done. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Whatever is the ‘intelligent excuse' given by the authorities ‘concerned', the fact of the matter is filing ‘Early Hearing Applications' has become a ritual nowadays. After all, it does not cost anything! File an application and sit back and relax - at least one can always show in their "we(a)ekly" reports to the Chief Commissioner that the Commissionerate is on the job! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the case of <em>CC(Exports) vs. Hemraj Exports Pvt. Ltd.</em> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2012/2012-TIOL-625-CESTAT-MUM.htm" target="_blank"><font size="1">(2012-TIOL-625-CESTAT-MUM)</font></a></strong> the Bench had held thus - </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"2. On perusal of the records, we find that this appeal has been disposed by this Tribunal vide order no. A/1393/WZB/2004/CIII dated 19.11.2004 by way of remand. <font color="#FF0000">We do not find any reason for filing this application for early hearing of the appeal, which has already been disposed of in the year 2004, which shows that the departmental officers are not doing their duty properly before filing this type of application</font>. In view of this they are advised to check the records before filing any application."</font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
was not an isolated case. It was repeated in the case of Tulips v <em>Commissioner
of Customs </em> </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2012/2012-TIOL-1047-CESTAT-MUM.htm" target="_blank">(2012-TIOL-1047-CESTAT-Mum)</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> when
the Bench observed - </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"The Revenue has filed these applications for early hearing of their appeal which have already been disposed of by this Tribunal vide order no. A/529/11/CSTB/C-I and A/530/11/CSTB/C-I both dated 23.11.2011. We have gone through the contents of the applications and found that these applications for early hearing have been filed after issuance of orders by this Tribunal. <font color="#FF0000">We don't understand why these applications are filed when their appeals are already disposed of. It is only shows that there is lack of coordination in the department and burdening this Tribunal unnecessarily which is already having more than 70,000 appeals pending.</font></font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In view of these observations, we dismiss the applications for early hearing of the appeals which were not required to be filed at all." </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As if to prove that this "<strong>frivolous appeal syndrome</strong>" is not restricted to the Customs formations only, the CCE, Aurangabad has also entered the ring. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And this is what the CESTAT ordered - </font></p>
<blockquote>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"Revenue filed this application for early hearing of the appeal. We find that the appeal has already been dismissed by the Tribunal vide order no. A/655-656/12/EB/C-II dated 19.06.2012 in the presence of Shri V.K. Singh, Additional Commissioner (A.R). It appears that Revenue filed this application without going through the records. The early hearing application is dismissed." </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(See </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2012/2012-TIOL-1738-CESTAT-MUM.htm">2012-TIOL-1738-CESTAT-MUM</a></strong></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>FTP - Amendment in ANF5B </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended Part B of Aayat Niryat Form - ANF5B of the Handbook of Procedures, Vol.I, (Appendices and Aayat Niryat Forms). The form ANF5B has been modified to make it more specific and user friendly. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. A new entry (Sl. No. 10A) has been added after Sl. No.10 - Details of completion of imports and Bill of Entry/Entries. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The existing entry at Sl. No. 11 "Installation Certificate No.& Date" is substituted by: "Date of Installation of capital goods". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Sl. No.3 of the guidelines for the applicants, has been modified to read as:"3. Application must be accompanied by documents as per above details except those which have been submitted alongwith ANF5A." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. A new guideline (at S. No.4) has been added after Sl. No.3: "4. Original EPCG authorization(s) must be submitted." </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2012/dgft12pn032.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 32 /2009-2014 (RE-2012)., Dated: November 27, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service - Seniority - Income Tax Inspectors - Direct Recruits vs Promotees - Direct Recruits win in SC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> dispute on seniority between direct recruit and promotee inspectors in the CBDT and CBEC has been going on for ages at all possible forums. The appointment of Inspectors is by promotion from within the Department and by Direct Recruitment by Staff Selection Commission. The posts are allotted on a roster system and every vacancy is designated as P for promotees or D for Direct Recruits. The promotees are available in the Department and are appointed in the vacancies for a particular year. But the selection of Direct Recruits is a long process and takes at least two years. When a direct recruit inspector is appointed say in the year 1988, he may become senior to an Inspector who was promoted in 1986. Obviously, the promotees don't like this. "How can somebody who was in college when I was appointed as Inspector be senior to me", is their lament. This has its cascading effect while making promotions to the next grade of Superintendent/ITO.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Litigation has been going on for more than twenty years.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case of Inspectors of Income Tax, the Supreme Court has given a detailed verdict on 27.11.2012. And this would perhaps apply to Inspectors in Central Excise too.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>We bring you this judgement today<font size="1"> (<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=78&filename=legal/sc/2012/2012-TIOL-112-SC-SERVICE.htm">2012-TIOL-112-SC-SERVICE </a></font></strong></font><strong><font size="1"><font face="Verdana, Arial, Helvetica, sans-serif">).</font></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs/PMLA Arrest - Bail: Offences under Customs Act are bailable - What about PMLA/FEMA? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE Supreme Court had in<em> Om Prakash & Anr. vs. Union of India & Anr.</em> - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2011/2011-TIOL-95-SC-CX-LB.htm" target="_blank"><font size="1">2011- TIOL-95-SC-CX-LB</font></a></strong> held that offences under the Customs Act were bailable . This has also been included in the Customs Act in the latest Finance Act. Recently, a question arose before the Supreme Court, whether the offences under provisions of the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002, were bailable. The Supreme Court has modified the interim order passed earlier, staying the arrest of the Petitioner by limiting the relief only to the offences under the Customs Act, 1962. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The fact is there is no arrest under FEMA, and so the question of bail does not arise, and under the PMLA, the Act clearly stipulates in Section 45 that offences are to be cognizable and non-bailable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Supreme Court Order <font size="1">(
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=26&filename=legal/sc/2012/2012-TIOL-111-SC-CUS.htm">2012-TIOL-111-SC-CUS </a> ).</font></strong></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">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Back office services like preparation of Federal Tax Returns, Co-sourcing services, Analyzing Client Data and calculating estimates of tax amount - not IT Services: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THESE</strong> activities even though performed by using computer programmes are not in relation to computer systems. The service provider, merely because he is using a computer to provide the said service, cannot be said to be providing "information technology service" to the service receiver. Non-Speaking Confirmation of Tribunal's Order by Supreme Court - Not Binding on High Court: </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 if assessee makes certain payments to holding company for rendering specific services, such payments can be said to be diversion of income merely because holding company is eligible for Sec 10A benefits - 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 if the assessee makes certain payments to the holding company for rendering specific services, such payments can be said to be diversion of income merely because the holding company is eligible for Sec 10A benefits; Whether the assessee is required to deduct TDS on purchase of software and disallowance can be made for the full amount though only part of the amount was payable as on the last day of the financial year and Whether disallowance is correctly made under section 14A by applying rule 8D and rejecting the claim of the assessee that it could only be restricted to the amount of exempt income earned. And the verdict partly goes in favour of the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">CENVAT credit denied on ground that appellant has availed credit of inputs which were received prior to 10.09.04 and there is delay in taking credit even after registration was granted - Prima facie case for waiver of pre-deposit - Stay granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>P</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RIMA-FACIE</strong>, there cannot be any dispute regarding the availment of CENVAT credit by the appellant in this case as there is no dispute as to receipt of the plates and the duty paid nature of the same and consumption thereof for the fabrication of storage tanks in the appellant's factory premises. The appellant has made out a prima-facie case for the waiver of the pre-deposit of the amounts involved. Application for the waiver of the pre-deposit of the amount involved is allowed and recovery thereof stayed till the disposal of appeal. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements</font></strong></p>
<p><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"> <strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p>
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