TIOL-DDT 2012 · 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 2012</font><br>
28.12.2012<br>
Friday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CAG not getting Records from Income Tax Offices! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>principal Director(Direct Taxes) in the CAG's Office has written a letter to the Member, CBDT informing him that CAG officers are experiencing difficulties in obtaining records for the Performance Audit on ‘Administration of Penalty and Prosecution' from the field formations of CBDT in the absence of instructions from CBDT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He has requested the CBDT Member to issue necessary instructions to his field formations to produce the relevant records for conducting the Performance Audit under intimation to the CAG's Office. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some clever field officers and even some assessees do not give the records to the CAG's auditors as the best form of defence against silly audit objections and sometimes CAG writes a para that records are not produced and this objection drags on for years. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/letter_601_2012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAG Principal Director's D.O.No.601/RADT/20/2012 dated: December 06, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Re-fixation of Annual Average Export Obligation </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PARA</strong> 5.11.2 of the Hand Book of Procedure Volume - 1 (HBP V-I) permits re-fixation of Annual Average Export Obligation, in case the export in any sector/ product group decline by more than 5%. This implies that for the sector/product group that witnessed such decline in 2011-12 as compared to 2010-11 would be entitled for such relief. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has requested all the Regional Officers to re-fix the annual average export obligation for EPCG Authorizations for the year 2011-12 based on the list given by DGFT showing the percentage decline in exports during 2011-12 as compared to 2010-11. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Regional Offices while considering requests of discharge of Export Obligation are to ensure that in case of shortfall of Export Obligation, <strong>Policy Circulars issued earlier</strong> in terms of Para 5.11.2 of HBP 2009-14 are also considered before issuance of demand notice etc. This stipulation should also form part of Check-Sheet for the purpose of EODC. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2012/dgft12cir009.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 9/(RE-2012)/2009-14, Dated: December 27, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Re-fixation of Annual Average Export Obligation - List of Circulars </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Policy Circulars issued earlier with regard to the re-fixation of Annual Average Export Obligation are: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Policy Circular 43 dated 02.12.2008 was issued for granting relief to the sectors which witnessed decline in 2007-08 as compared to 2006-07 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Policy Circular 13 dated 27.10.2009 was issued for granting relief to the sectors which witnessed decline in 2008-09 compared to 2007-08 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Policy Circular 8 dated 24.12.2010 was issued for granting relief to the sectors which witnessed decline in 2009-10 compared to 2008-09 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Policy Circular 53 dated 23.02.2012 was issued for granting relief to the sectors which witnessed decline in 2010-11 compared to 2009-10 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Policy Circular 09 dated 27.12.2012 (issued yesterday) for granting relief to the sectors which witnessed decline in 2011-12 compared to 2010-11 </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2012/dgft12cir010.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 10/(RE-2012)/2009-14, Dated: December 27, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Please Relieve Transferred Officers - At least now - CBDT Tells Chief Commissioners </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> finds that in spite of stipulating a time frame for transferred IRS officers to join their new places of posting, some officers are yet to join. This applies to several transfer orders issued from March 2012 to December 2012. The CBDT Member (P&V) has asked the Chief Commissioners to furnish a list of transferred officers along with the dates of relieving them. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Member directs that <strong>those who have not been relieved should immediately be relieved.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why is it that the Revenue Boards are not able to ensure compliance of their transfer orders? </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/cbdt%20transfers_07_12.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT D.O No. 7/IRS/Status/Mumbai/2012 dated: December 26, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT - Mandatory Maintenance of Office Registers </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT </strong>has computerised the following registers: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Internal Audit Register </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Revenue Audit Register </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. Receipt Audit Register </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. Register of Draft Audit Paras </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Appeal Register </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Register of Rectification u/s 154 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Grievance Register </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Penalty Register </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. Register of Penalties, Other than 271 (1)(c). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. Register of Penalties u/s 271 (1) (c). </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Field formations are required to maintain the above registers online. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When will CBEC follow suit?</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/online_registers_2012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGIT (Logistics) F. No 6/1/2012-WS-DOMS /1037dated: December 13, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ratan Tata Retires Today </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HE</strong> ran India's largest private sector conglomerate for 21 years. In 1991, when he took over the leadership of TATAs, India's economy was changing dramatically. TATAs account for 7% of India's stock market; they pay 3% of India's corporate tax and 5% of the Nation's excise duty. If you stay in a house, make a phone call, drive a car, add salt to your food, have a watch, take insurance, buy an air-conditioner, watch TV, do research or stay in a hotel - most likely you will be associated with a TATA company. Strangely,TATAs that gave India its first airlines is not in the airlines business now - maybe afraid of the quality they would maintain or because they could not extract any bribes from TATAs, they have been kept out of the airline industry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ratan Tata guided this 144 year old Indian business giant for a little over two decades. Ratan Tata hands over the most respected group in India to Cyrus Mistry, who is from outside the Tata family. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Economist said,<em> "Mr Tata's career carries two powerful lessons for an introverted and corruption-obsessed India. First, that India has far more to gain than lose from the outside world. And second, that a company can be a force for progress. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr Tata may come to be seen as both the last of one breed of feudal corporate leaders-and the first of another more open bunch. Anybody who cares about India's future, especially its billion consumers, should hope that the transition picks up speed again". </font></em></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT Cartoon</font></strong></p>
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<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">Customs</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Refund - Furnishing of cash security equal to 2% of CIF value of goods sought to imported under Project Import - refund claimed of security deposit after finalization of assessment is not hit by unjust enrichment - Appeal allowed with consequential relief: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant filed a Bill of Entry in the month of February, 2004 for import of plate heat exchangers under Project Import. As per the procedure prescribed by the Board vide Circular 89/95-Cus. the bill of entry was to be assessed provisionally on payment of 2% security deposit on project imports and the appellant deposited 2% security deposit amounting to Rs. 1,73,754/- on 12/02/2004. The bill of entry was assessed finally on completion of the project by giving the benefit under Project Imports. The appellant filed a refund claim for refund of 2% security deposit, which they had paid. </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 activity of welfare of dogs and taking care of sick animals is covered within meaning of 'Charitable purpose under Sec 2(15) - YES: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> is a trust seeking registration u/s 12A for availing various benefits under the Income Tax Act, 1956. The main objects of the Trust was to help the orphan children, to provide free food to the hungry and poor people and to give medical treatment and food to the animals left in the streets, Food for all combines, conducting Animal Birth Control Program and Anti Rabies Vaccination and to carryout Animal Adoptions Rescue Operations, Humane Education Programmes etc. CIT(A) had rejected the assesee's plea on the ground that, the objects of the trust were not in consonance with sec 2(15), 'charitable purpose'. It had filed appeal to ITAT against the order of CIT(A), for granting registration u/s 12A. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE issue before the Bench is - Whether welfare of dogs and taking care of sick animals is covered under the meaning of 'Charitable purpose' u/s 2(15). And the answer goes in favour of assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule 16 of CER, 2002 - duty paid laboratory equipment returned to the factory are completely dismantled and useable parts are salvaged and again reused in manufacture of same kind and unusable parts are cleared as scrap - department contending that activity does not amount to manufacture and insisting for reversal of CENVAT credit taken, in terms of rule 16(2) of CER, 2002 - Pre-deposit waived and Stay granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant are manufacturers of laboratory equipment and they cleared the same on payment of excise duty. On occasions, the equipments cleared to the customers are returned to the factory. In some cases, the equipment brought back are not repairable and, therefore, they are completely dismantled and the useable parts are salvaged and again re-used in the manufacture of goods of the same kind and the unusable parts, which are negligible (approximately 10%) are cleared as scrap. The appellant follows the provisions of rule 16 of the CER, 2002. </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 align="justify"><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>
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