TIOL-DDT 2067 · 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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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=17063"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font><font color="#663399" size="3">TIOL-DDT 2067</font><br>
18.03.2013 <br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Big
disappointment for CX Supdts - No Contempt against RS and CBEC Chairman
- No retro effect for Promo formula </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the much-stagnated lower executive cadres of Inspectors and Superintendents of Central Excise, there are lots of anomalies and imbalances. Every day we get mails from frustrated officers who have not got a second promotion in 35 years of service. A 1992 Inspector is still an Inspector - a 1992 Superintendent is still a Superintendent. Central Excise officers complain that appraisers junior to them by 25 years have become their bosses. There are cases pending at all possible levels of litigation from Tribunal to Supreme Court. The bone of contention is the ratio among the three feeder cadres - Superintendents of Central Excise, Superintendents of Customs and appraisers of Customs. The ratio was 6:2:1 and this was not appreciated by all the feeder cadres. Twelve years ago, the Supreme Court in All India Federation of Central Excise vs. Union of India had held that the Supreme Court was not the forum to change the formula and any one aggrieved with the quota should convince the Government about the need to change the rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In August 2011, the Supreme Court directed the Government to alter the ratio after hearing representations from the Staff Associations and to give promotions accordingly <strong><font size="1">(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2011/2011-TIOL-74-SC-MISC.htm">2011-TIOL-74-SC-MISC</a>)</font></strong>. Somehow the Court directions came to be interpreted as if the new formula had to be given retrospective effect. On this assumption, certain associations/officers filed contempt petitions in the Supreme Court against the then Revenue Secretary Gujral and CBEC Chairman Goel. The CBEC had changed the ratio to 13:1:2, but with prospective effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court last week dismissed the contempt petitions against both and clarified that its earlier order had no direction to apply the quota retrospectively. So, now the new ratio is applicable only prospectively. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2013/2013-TIOL-19-SC-MISC.htm" target="_blank">2013-TIOL-19-SC-MISC </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Refund of Terminal Excise Duty - DGFT Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>IT</strong> has come to the notice of the DGFT that some RAs of DGFT and the Offices of Development Commissioners of SEZ are providing refund of Terminal Excise Duty (TED) even in those cases where supplies of goods, under deemed exports, is ab-initio exempted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. There are three categories of supplies where supply of goods, under deemed exports, is ab-initio exempted from payment of excise duties. These are: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Supply of goods under Invalidation letter issued against Advance Authorisation [Para 8.3(c) of FTP]; [<font color="#FF0000">Now, which Central Excise Notification gives ab initio exemption to goods cleared under an invalidation letter?</font>] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Supply of goods under ICB [Para 8.3(c) of FTP]; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Supply of goods to EOUs [Para 6.11(c) (ii) of FTP] </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT clarifies that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Prudent financial management and adherence to discipline of budget would be compromised if refund is provided, in cases, where exemption is mandated. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In fact, in such cases the relevant taxes should not have been collected to begin with. And if, there has been an error/oversight committed, then the agency collecting the tax would refund it, rather than seeking reimbursement from another agency. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Accordingly, in respect of supplies, as stated above, no refund of TED should be provided by RAs of DGFT/Office of Development Commissioners, because such supplies are ab-initio exempted from payment of excise duty. </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2012/dgft12cir015.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No. 16/(RE-2012)/2009-14, Dated: February 15, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Tariff Value of Gold, Silver and other items - Changes </font></strong></p>
<p align="justify"><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%" border="1" 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 valign="top" colspan="2"><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 valign="top"><div align="center"></div></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing <br>
USD(Per MT) </font></strong></p></td>
<td valign="top"><p align="center"><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 align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </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"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
</tr>
<tr>
<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">849 </font></strong></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>
</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">894 </font></strong></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>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top"><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">872 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">854 </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">911 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">871 </font></strong></font></p></td>
</tr>
<tr>
<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">914 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">874 </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">913 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">873 </font></strong></font></p></td>
</tr>
<tr>
<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">1202 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1147 </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">4082 </font></strong></font></p></td>
<td valign="top"><p><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3980 </font></strong></font></p></td>
</tr>
<tr>
<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 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4395 (i.e. no change) </font></p></td>
</tr>
</table>
<p> </p>
<table width="90%" border="1" 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 valign="top" colspan="2"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value </font></strong></p></td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing USD </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Changed 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">(2) </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"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
</tr>
<tr>
<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">521 </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">516 </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">944 </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">930 </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">per kilogram </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The rates were changed last by Notification No. 26/2013-Cus NT dated 01.03.2013 </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_030.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 30/2013-Cus.,(N.T.), Dated: March 15, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs
and CX Offices to be open on last three days of March </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</strong> the last week of March 2013, there are a number of holidays for the Central Government Offices. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26.03.2013 - Tuesday - Holika Dahan - Restricted Holiday </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27.03.2013 - Wednesday - Holi - Holiday </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29.03.2013 - Friday - Good Friday - Holiday </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">30.03.2013 - Saturday - - Holiday </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">31.03.2013 - Sunday - - Holiday</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC feels that the bulk of the Revenue is received at the end of the month. The Revenue Department has proposed to the Department of Financial Services to issue instructions to have the banks open for longer hours on 26th, 28th and 30th March 2013 so that the collections of <a></a>revenue and the efforts of the two departments are reflected appropriately. It has also been proposed to have the banks opened for at least half day on the above holidays and on 31st March (Sunday). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Board has requested the Chief Commissioners to keep their offices open on 29th, 30th and 31st March and also to issue Trade Notices for the information of the Trade. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/order_296_42_2013.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No. 296/42/2013-CX.9; Dated March 15, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
Tax Offices also to be Open</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has issued an order under Section 119(1) of the Income Tax Act to the effect that all the Income Tax offices throughout India shall remain open and the receipts counters will also work during normal office hours on 30th and 31st of March 2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants special arrangements to be made by opening additional receipt counters, wherever required on 30th and 31st March 2013 to facilitate filing of return of income and other related work of taxpayers. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants wide publicity to be given to these instructions. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/it13order_01.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT F. No. 226/45/2013-ITA.II; Dated March 13, 2013. </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Four Hours to Clear Customs in US </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> severe staff crunch in US Customs, air passengers arriving in US airports are subject to unusually long waits of 3 to 4 Hours. Yelling passengers show their ire at the few Customs officers present who are simply helpless. This is the result of a major spending cuts imposed by US Treasury to salvage the economy. Poor Americans! </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner
(A) has no knowledge how to deal with appeals filed before him </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> comment as scathing as this should make one hang his head in shame. But then, when were such observations of the CESTAT taken in the right spirit by the lower formations - the best they do is offer some weak justification! At least, the NACEN should incorporate the guidelines given in this order as a part of its curriculum. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Be that as it may, in the present case, the adjudicating authority had imposed a penalty under rule 26 of CER, 2002 on the appellant and the same was challenged before the Commissioner (Appeals) by filing an appeal and also an application for waiver of pre-deposit. Instead of disposing of the stay application first, the Commissioner (Appeals) heard the stay application as well as the appeal together and dismissed the appeal for non-compliance of Section 35F of the Central Excise Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And this is what the CESTAT held - </font></p>
<blockquote>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">“4. In this case the appellants have challenged the adjudication order before the Commissioner (Appeals) wherein penalties were levied on the appellants. They also sought waiver of pre-deposit of the penalties imposed on them during the pendency of the appeal before the Commissioner (Appeals). The Commissioner (Appeals) without considering the stay application passed the impugned order. In fact the Commissioner (Appeals) has taken stay application as well as appeal together and thereafter he dismissed the appeal for non-compliance of Section 35F of the Central Excise Act. In these circumstances, I find that the Commissioner has no knowledge how to deal with the appeals filed before him. In fact, the first duty of the Commissioner (Appeals) is to dispose of the stay application and if he is not satisfied with the arguments advanced for waiver of pre-deposit, he may ask for pre-deposit but while considering the stay application along with appeal together, he has no power to dismiss the appeal for non-compliance of Section 35F of the Central Excise Act.” </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With these observations, the order was set aside and the matter remanded to the Commissioner (Appeals) to consider the stay application filed by the appellants and thereafter to decide the appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But why do these things happen? Is it that a Commissioner (Appeals) does not know that he should dispose of the Stay Petition before disposing of the main appeal? Was he under orders to help boost up Revenue? </font></p>
<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=34&filename=legal/cestat/2013/2013-TIOL-463-CESTAT-MUM.htm" target="_blank">2013-TIOL-463-CESTAT-MUM</a></font></strong></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><font 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"><font color="#663399"><strong>Service Tax</strong></font></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service charges paid to foreign lessor for procuring aircrafts - appellant is liable to pay service tax as service recipient u/s 66A of FA, 1994 - Pre-deposit Ordered: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant procured aircrafts for which they got equipment lease financing and for which payment was made by the appellant to various entities abroad, connected with lease finance. They also kept a deposit with the International Finance Corporation, lessor towards maintenance reserve. The department was of the view that the appellant is liable to discharge Service Tax in respect of the above activities undertaken under the category of ‘Banking and Financial Services" namely, finance leasing. As regards the maintenance reserve, the department was of the view that they are liable to pay Service Tax under the category of "Management, Maintenance and Repairs". </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 TDS benefit can be denied to deductee for fault of deductor - NO: 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 it is admitted by the CBDT that the data uploaded in the CPC database by the Department has serious errors, it is necessary for the assessees to file applications for correction of such errors; Whether AOs are required by law to suomoto carry out corrections and upload the data again so that refunds could be issued in genuine cases; Whether before making adjustment of refunds the onus is on the AO to issue an intimation to the assessee; Whether interest can be disallowed to the assessee even though the Revenue admits that it made wrong uploading of data at CPC; Whether when AO makes adjustment in the returned income, it is necessary to issue intimation u/s 143(1); Whether the onus to show that intimation was communicated, is on the Revenue and Whether TDS benefit can be denied to the deductee for the fault of deductor. And the HC lambasts the Revenue. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Notfn. 21/2002-Cus - contract did not mention M/s Gammon as sub-contractor - there is no logic and reason for deeming appellant as sub-contractor of M/s GICL - notification refers to pave width of equipment and not of extensions that can be attached to equipment to increase same - there is no room for any intendment or presumption: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant imported a consignment of "Electronic Sensor Paver Vogetel model super 1800-2 with AB 600-2 TC screed" for laying bituminous pavement upto 9 M width along with accessories and claimed duty exemption under notification No. 21/2002-Cus dated 1-3-2002 vide Sl. No. 230 of the Table annexed to the said notification. The assessing officer denied the benefit of exemption. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"In a taxing statute one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used."</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>
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