TIOL-DDT 2047 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2047 </font><br>
18.02.2013 <br>
Monday</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DTA Clearances from EOUs - Third Time Cess - SC Dismisses Revenue Appeal </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10588" target="_blank"><strong>DDT 1318 - 15.03.2010</strong> </a>observed, <em>"<strong>FOR</strong> setting up an EOU in India, you need two things. One is LOP from the Development Commissioner and the other is a Master's in Mathematics from a reputed University. The former is required for carrying the operations as EOU and the latter for computing the duties payable on DTA clearances and the CENVAT Credit against such clearances"</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the <em>Sarla Polyesters</em> case <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2008/2008-TIOL-985-CESTAT-AHM.htm" target="_blank"><strong><font size="1"><em>2008-TIOL-985-CESTAT-AHM</em></font></strong></a>, the CESTAT held that the third time cess is payable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court <em><font size="1"><strong>(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2008/2008-TIOL-516-HC-MUM-CX.htm">2008-TIOL-516-HC-MUM-CX</a>)</strong></font></em> set aside the CESTAT order and remanded the matter to the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On remand, as per the directions of the Bombay High Court, Tribunal served notice to the general public so that all the parties who are interested may also apply as interveners. After hearing the appellants, the interveners and the departmental representative, the CESTAT held, <em>"What is required for the purpose of proviso to Section 3 of Central Excise Act, 1944 is to arrive at aggregate of customs duties and once we take a view that education cess is part of the customs duty and is an enhancement, the question of adding it again does not arise". (Sarla Performance Fibres Ltd v CCE, Vapi -<strong> <font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2010/2010-TIOL-408-CESTAT-AHM.htm" target="_blank">2010-TIOL-408-CESTAT-AHM</a></font></strong>) </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In spite of this, Show Cause Notices and Adjudication Orders are being issued in almost all Commissionerates. In fact 10 months after the tribunal order, Board issued a clarification that education cess had to be paid a third time. (Please see<font size="1"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12349" target="_blank"> <strong>DDT 1584 - 06.04.2011</strong></a></font>). Utter contempt for CESTAT Orders!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While this confusion was in full swing, the Delhi Bench of the CESTAT did not agree with the decision in <em>Sarla Performance and referred the issue to the Larger Bench - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2011/2011-TIOL-1180-CESTAT-DEL.htm" target="_blank"><font size="1">2011-TIOL-1180-CESTAT-DEL</font></a></strong></em> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue also appealed against the <em>Sarla </em>case in the High Court. The Gujarat High Court dismissed the Revenue appeal on the ground that the appeals were not maintainable before the High Court as it was a question of rate of duty and the appeal had to be made to the Supreme Court. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2012/2012-TIOL-359-HC-AMH-CX.htm" target="_blank"><strong><font size="1">2012-TIOL-359-HC-AMH-CX</font></strong> </a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue was perseverant, as they always are, in matters of perpetual litigation - and took the matter to the Supreme Court. The Supreme Court on Friday dismissed the Revenue appeal on the ground of delay. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any chance of litigation ending with the matter still pending in the Larger Bench, from where it can still go to the Supreme Court? Does the Revenue Board work only to fill the pockets of the lawyers? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> raised this issue in <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=1020" target="_blank"><strong><font size="1">DDT 48 07 02 2005</font></strong> </a>eight years ago and the matter stands today exactly where we started! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is a very simple issue which the Board can easily solve, but they wouldn't. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Also see the following well researched articles published by TIOL on this contentious issue: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=983"><strong>Education cess payable by EoUs on DTA sale : Will this Budget clarify? </strong></a></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7483">Setback for EOUs: CESTAT rules Education Cess is payable on DTA clearances in addition to duties computed under relevant Notifications </a></font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And </font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1.<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10588" target="_blank"> DDT 1318 15 03 2010 </a></strong></font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10815" target="_blank">DDT 1354 07 05 2010 </a></font></strong></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12349" target="_blank">DDT 1584 06 04 2011 </a></font></strong></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=13178" target="_blank">DDT 1690 12 09 2011 </a></font></strong></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14964" target="_blank">DDT 1855 11 05 2012 </a></font></strong></p>
</blockquote>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No Education Cess on Imports under DEPB - SC Dismisses Revenue Appeals </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong><em>Gujarat Ambuja Exports vs Government of India </em>- <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=27&filename=legal/hc/2012/2012-TIOL-546-HC-AHM-CUS.htm" target="_blank"><strong><font size="1"><em>2012-TIOL-546-HC-AHM-CUS</em></font></strong> </a>, the Gujarat High Court had held that no Education Cess was payable on imports under DEPB and the Board Circular 5/2005-Cus dated 31.01.2005, clarifying that it was payable was quashed to that extent and set aside. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court followed the precedent in<em> Adani Wilmer vs UOI </em>- <em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=27&filename=legal/hc/2012/2012-TIOL-832-HC-AHM-CUS.htm" target="_blank"><font size="1">2012-TIOL-832-HC-AHM-CUS</font></a></strong></em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The persistent Revenue took both the cases to the Supreme Court. The Supreme Court on Friday condoned delay, but dismissed both the appeals. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see </strong></font><strong><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=26&filename=legal/sc/2013/2013-TIOL-15-SC-CUS.htm">2013-TIOL-15-SC-CUS</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> and </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=26&filename=legal/sc/2013/2013-TIOL-16-SC-CUS.htm">2013-TIOL-16-SC-CUS</a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Tariff Value of Brass Scrap, Gold and Silver slightly reduced </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has changed the Tariff Values. The existing and revised values are as follows. </font></p>
<table width="90%" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td colspan="2" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value </font></strong></p></td>
</tr>
<tr bgcolor="#EBE3F2">
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing <br>
USD(Per MT) </font></strong></p> </td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Changed <br>
USD(Per MT) </font></strong></p> </td>
</tr>
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td valign="top"></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
</tr>
<tr bgcolor="#EBE3F2">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">815 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">848 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">860 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">896 </font></strong></font></p></td>
</tr>
<tr bgcolor="#EBE3F2">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top" bgcolor="#EBE3F2"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palm Oil </font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">838 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">872 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">867 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">909 </font></strong></font></p></td>
</tr>
<tr bgcolor="#EBE3F2">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palmolein </font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">870 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">912 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palmolein </font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">869 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">911 </font></strong></font></p></td>
</tr>
<tr bgcolor="#EBE3F2">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1219 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1229 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<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="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4077 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4074 </font></strong></font></p></td>
</tr>
<tr bgcolor="#EBE3F2">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<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">4395 (i.e. no change) </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4395 </font></p></td>
</tr>
</table>
<br>
<table width="90%" border="0" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td colspan="2" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value </font></strong></p></td>
</tr>
<tr>
<td valign="top"><div align="center"></div></td>
<td valign="top"><div align="center"></div></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing </font></strong></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">USD </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Changed </font></strong></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">USD </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td valign="top"><div align="center"></div></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
</tr>
<tr bgcolor="#EBE3F2">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<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 size="2" face="Verdana, Arial, Helvetica, sans-serif">545 </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">per 10 grams </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">535 </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">per 10 grams </font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<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 size="2" face="Verdana, Arial, Helvetica, sans-serif">1018 </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">per kilogram </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1003 </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">per kilogram </font></p></td>
</tr>
</table>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The rates were changed last by Notification No. 16/2013-Cus NT dated 31.01.2013 </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_021.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 21/2013-Cus.,(N. T.), Dated: February 15, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">What is BUDGET? </font></strong></p>
<table width="90%" border="0" align="center" cellpadding="3" cellspacing="0">
<tr>
<td bgcolor="#CCCCCC"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The budget is not merely a statement of financial receipts and expenditure of the government. It is a significant political statement of government policy and its priorities for the economy. The budget reflects the country's economy and shapes the direction in which the government of the day wants to take it as per its policies and priorities. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is also a government's plan for raising revenues through taxation, borrowing and incurring expenditure under the relevant heads. The government channelizes its financial resources thus raised in the various sectors of the economy and government. Given the finite nature of financial resources, budget making is an exercise in achieving a fine balance between competing objectives and priorities of the government, within the budgetary constraint. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Constitution of India does not use the term ‘budget' but only refers to Annual Financial Statements. As per Articles 112 and 202, the Union Government and State governments are constitutionally mandated to prepare and present ‘budgets', which are financial statements of receipts and expenditure, both current and capital. </font></em></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THAT was Vice President Hamid Ansari explaining the Budget while inaugurating the <em>K. M. Mani Centre for Budget Studies, Cochin University of Science & Technology</em>. KM Mani is perhaps the longest serving legislator in India, being an MLA continuously for the last 48 years from the same constituency and has a record of presenting ten budgets in the Kerala Assembly. The record for presenting the maximum number of budgets is with former AP Finance Minister, now Tamil Nadu Governor K. Rosaiah who had presented the State budget in the Andhra Pradesh assembly 16 times, including 7 times in a row. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Since appeal itself was disposed of in year 2006, there was no question of granting any extension of Stay</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FRIVOLOUS</strong> applications are not always being filed by the Revenue. On occasions, the assessees too do it. Needless to mention, all such applications are required to be listed for hearing and heard by the Bench and all this consumes valuable time and energies of the Bench and Registry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case, the assessee filed a Miscellaneous Application in the year 2012 seeking a Stay of the order granted by the CESTAT in the matter of appeal filed by them in the year 2000. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the matter was listed for hearing the appellant did not show up. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench went through the case papers and found that the Appeal itself had been disposed of in the month of April, 2006 and since there was no appeal pending, there was no question of extension of the Stay order. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The application was accordingly dismissed. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(See <font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2013/2013-TIOL-313-CESTAT-MUM.htm" target="_blank">2013-TIOL-313-CESTAT-MUM</a></font>)</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No farewell Please - retiring High Court Judge </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN </strong>a High Court Judge retires, usually a meeting is held in the Court of the Chief justice where all the judges of the High Court would be present and the Advocate General would make a farewell speech followed by photo session, high tea and maybe a dinner in a five star hotel. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But a Judge of the Madras High Court wants this farewell ritual to be put an end to. Justice Chandru who is retiring next month has written to the Chief justice requesting him not to order the farewell ritual for him. It seems the last time a judge declined a farewell function was in 1929, when Justice Jackson told the Advocate General, "I have done my job; where is the question of a farewell for me?"</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice Chandru is a different Judge - he has a record of over one Lakh cases disposed of by him; he does not use the services of a mace carrying court employee escorting him; he does not have a gun toting security man; does not have official servants at home; does not approve lawyers calling him “my lord”. The Madras High Court website which carries the bio data of the judges has no link to Justice Chandru's details. </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"> – Tuesday's cases</font></strong></font></strong></font></p>
<p align="justify"><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">FERA </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">It is only when deposition goes through fire of cross-examination that Court or Statutory Authority may be able to determine and assess its probative value. Using a deposition that is not so tested, may therefore amount to using evidence, which party concerned has had no opportunity to question: SC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> question, however, is whether failure to permit the party to cross examine has resulted in any prejudice so as to call for reversal of the orders and a de novo enquiry into the matter. The answer to that question would depend upon the facts and circumstances of each case. It is evident from Rule 3 of the Adjudication Rules framed under Section 79 of the FERA that the rules of procedure do not apply to adjudicating proceedings. That does not, however, mean that in a given situation, cross examination may not be permitted to test the veracity of a deposition sought to be issued against a party against whom action is proposed to be taken. </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">I-T - Whether when assessee acquires corporate membership of Golf Club for limited period, any payment made in this regard brings any 'enduring benefits' to be treated as capital expenditure - NO: HC Larger Bench </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> had obtained corporate membership of Golf Club, Chandigarh on payment of Rs.6lacs. Rs.16,945/- was paid towards services and facilities used during the relevant AY. During assessment, the AO disallowed such expenses for the reason that the same were personal expenses of the MD and other employees and, thus, added back to the income of the assessee. On appeal, CIT(A) set aside the said disallowance holding that club membership was in the nature of an advantage in the commercial sense and not in the capital field. The CIT(A) also considered the remand report, wherein it was observed that the payment was for acquisition of Club Membership, therefore, it was a capital expenditure. On further appeal, the Tribunal affirmed the findings recorded by the CIT(A) and observed that the membership of the club had been acquired by the assessee for the use of its personnel. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><font color="#FF6633" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2">S.4 of CEA, 1944 - Valuation - Related person - Argument that the applicant and L&T Ltd. do not have any mutuality of interest is debatable and needs to be examined in depth at the time of regular hearing - applicant has not produced any data/details at the time of hearing to buttress their contention that they have also made clearances to buyers other than L&T Ltd. - Prima facie applicant does not have a case for complete waiver of pre-deposit on merits - SCN issued on 03.02.2011 is prima facie hit by limitation – duty demanded in SCN 04.05.2011 is within time – pre-deposit ordered of Rs.1.80 Crores: CESTAT </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>applicant is engaged in the manufacture of Fills, Welding Powder Alloys, Flux for welding, coated welding electrodes and coated/uncoated gas welding rods falling under chapters 38 and 83 of the first schedule of the Central Excise Tariff Act, 1985. Prior to 01.07.2006 the applicant was paying Central Excise duty on the goods purchased by M/s L&T Ltd. with reference to the price at which the latter sold the goods viz. the selling price of M/s L&T. However, vide letter dated 21.06.2006 the applicant informed the jurisdictional Assistant Commissioner of Central Excise that, from 01.07.2006 the Central Excise duty on all clearances of final product to M/s L&T will be discharged on the transaction value contracted between them i.e. the duty will be paid with reference to the applicant's selling price to M/s. L&T. </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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