TIOL-DDT 2075 · 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 2075 </font><br>
01.04.2013 <br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The year comes to close - so does Tamasha - Hopefully </font></strong></p>
<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> elusive target is achieved and a final report is sent to the FM that he has all the money he wanted to collect. But does he really have that? How are targets achieved? By fraud, by deceit, by threat, by inducement, by arm twisting, by manipulation!. Every known trick in the trade is employed. Who are they trying to fool? Perhaps no other work force in the world could so successfully fool its boss as the Indian Revenue Service does. The Target fever starts somewhere in September and by December, it reaches its peak. Very intelligent officers who have qualified through the toughest test in the world suddenly lose all their sense of proportion and they browbeat their subordinates into somehow collecting more revenue. Monthly, weekly and daily meetings are held where stupid macro-economic concepts are discussed and strategy devised to collect more revenue. Meetings are held with the assessees when they are requested, cajoled and veiled threats are served along with regulation tea - all for revenue. But Revenue does not get generated in Commissionerates and conference halls. It essentially results from market and the best of the Revenue officers cannot create a market. Every Chief Commissioner and other officers down the line understand this very well, but refuse to admit it and happily carry on the farce year after year in the name of revenue - all because there is no child in the whole department who can shout, "The King has no clothes!"</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I wrote this seven years ago in <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MzUxMw==" target="_blank">DDT 334 31 03 2006</a></strong>. Has anything changed? Only the madness has worsened and this year, the CBEC came up with its own contribution of the mega circular which proved to be manna from heaven for the lawyers, many of whom made tons of money even though the Government might not have got a rupee out of the Circular. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the new Financial Year brings in more sense and we should see a better and fair tax administration. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods imported from Japan - Effective rates of duty amended</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> No 69/2011 Cus dated 29.07.20111 exempts various goods imported from Japan in excess of the duty specified against each serial number. The effective rates for many of the entries have been now amended. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_017.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 17/2013 CUS, Dated: March 26, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption to pulses extended </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a just in time issued Notification, exemption to Pulses available under Sl No 21 of the Notification No 12/2012 Cus dated 17.03.2012 has been extended upto 01.04.2014. As per the proviso, this exemption was available upto 31.03.2013, and now the proviso is amended to extend this exemption by one more year. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_018.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 18/2013 CUS, Dated: March 26, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Flat Base Steel Wheels - Extended Just In Time </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANTI</strong> Dumping Duty on Flat Base Steel Wheels, originating in, or exported from, China PR - imposed vide notification No. 124/2007-CUSTOMS, dated the 31st December 2007, was to expire on 28 March 2013. This time around, the Government woke up just in time and extended it by issuing a new notification valid for another five years </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2013/ctariffadd13_003.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 3/2013-Customs, (ADD), Dated : March 26, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Transfer Pricing - profit split method (PSM) - CBDT Clarifies </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has clarified that: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While selecting PSM as the most appropriate method, the following points may be kept in mind: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. the use of transfer pricing methods [like Transactional Net Margin Method] that seek to estimate the value of intangible based on cost of intangible development (R&D cost) plus a return, is generally discouraged. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Rule 10B(1)(d) of Income-tax Rules, 1962 (the Rules) provides that profit split method (PSM) may be applicable mainly in international transactions involving transfer of unique intangibles or in multiple international transactions which are so interrelated that they cannot be evaluated separately for the purpose of determining the arm's length price of any one transaction. The PSM determines appropriate return on intangibles on the basis of relative contributions made by each associated enterprise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Selection and application of PSM will depend upon following factors as prescribed under rule 10C(2) of the Rules : </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- the nature and class of the international transaction; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- the class or classes of associated enterprises entering into the transaction and the functions performed by them taking into account assets employed or to be employed and risks assumed by such enterprise; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- the availability, coverage and reliability of data necessary for application of the method; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- the degree of comparability existing between the international transaction and the uncontrolled transaction and between the enterprise entering into such transactions; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- the extent to which reliable and accurate adjustments can be made to account for differences, if any, between the international transaction and the comparable uncontrolled transaction or between the enterprise entering into such transactions; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- the nature, extent and reliability of assumptions required to be made in application of a method. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. in a case, where the Transfer Pricing Officer (TPO) is of view that PSM cannot be applied to determine the arm's length price of international transactions involving intangibles due to non-availability of information and reliable data required for application of the method, he must record reasons for non-applicability of PSM before considering TNMM or comparable uncontrolled price method (CUP) as most appropriate method depending upon facts and circumstances of the case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Application of Profit Split Method requires information mainly about the taxpayer and associated enterprises. Section 92D of the Income-tax Act, 1961 provides for maintenance of relevant information and documents by the taxpayer as prescribed under rule 10D of the Rules. Therefore, there should be good and sufficient reason for non-availability of such information with the taxpayer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Depending upon facts and circumstances of the case, TPO may consider TNMM or CUP method as appropriate method by selecting comparables engaged in development of intangibles in same line of business and make upward adjustments taking into account transfer of intangibles without additional remuneration, location savings and location specific advantages. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2013/it13cir02.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Circular No. 02/2013 Dated : March 26, 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><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"> </td>
<td valign="top"> </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>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing 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><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">829 </font></strong></p></td>
<td valign="top"><p><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">838 </font></strong></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><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">855 </font></strong></p></td>
<td valign="top"><p><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">870 </font></strong></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><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">842 </font></strong></p></td>
<td valign="top"><p><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">854 </font></strong></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><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">860 </font></strong></p></td>
<td valign="top"><p><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">871 </font></strong></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><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">863 </font></strong></p></td>
<td valign="top"><p><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">874 </font></strong></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><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">862 </font></strong></p></td>
<td valign="top"><p><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">873 </font></strong></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><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1093 </font></strong></p></td>
<td valign="top"><p><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1147 </font></strong></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><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">4015 </font></strong></p></td>
<td valign="top"><p><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">3980 </font></strong></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>
<br>
<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">Changed USD </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing 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">920 </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. 30/2013-Cus NT dated 15.03.2013 </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_032.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 32/2013-Cus.,(N.T.), Dated: March 28, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Promotion to Charge-sheeted officer - When there is no Charge-sheet on relevant date, para 7 of OM dated 14.09.1992 has no application: SC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNION</strong> of India is in appeal against the order of the High Court allowing the promotion to an employee of Railways. The grievance of the officer was that on the date when his juniors were promoted, there was no charge-sheet against him and therefore para 2 and 7 of the DOPT OM dated 14.09.2012 ( Sealed cover procedure) has no application. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On behalf of UOI, it was contended that the High Court is not justified in considering paragraph 2 of the memorandum alone. At the relevant time, 4 charge sheets were issued to the respondent and enquiries were completed and notices to show cause had already been served upon the respondent. On the other hand, the respondent submitted that as on the date i.e. 21.04.2003, when his juniors were promoted, neither the respondent was under suspension nor any charge sheet was served upon him and he was not facing any criminal prosecution, hence, there was no impediment in promoting him. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After hearing both side, the Supreme Court held: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per paragraph 2 of the said memorandum, at the time of consideration of the Government servants for promotion, the following details of Government servants in the consideration zone for promotion falling in the categories mentioned should be specifically brought to the notice of the DPC, viz., (i) Government servant is under suspension; (ii) Government servant has been served with a charge sheet and the disciplinary proceedings are pending; and (iii) Government servant is facing prosecution for a criminal charge and the said proceedings are pending. As rightly observed by the High Court, if the above conditions are available, even one of them, then the DPC has to apply the ‘sealed cover process'. In the case on hand, it is not in dispute that the relevant date is 21.04.2003, when the respondent's batch mates were promoted, admittedly on that date the respondent was not under suspension, no charge sheet was served upon him nor he was facing any criminal prosecution. In such circumstances, in terms of paragraph 2 referred to above, the recommendation of the DPC has to be honoured and there is no question of applying ‘sealed cover process'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See </strong></font><strong><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-21-SC-MISC.htm" target="_blank">2013-TIOL-21-SC-MISC</a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">New Pre Shipment Inspection Agencies (PSIA) notified. Area of operation of four existing PSIA's widened</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">APPENDIX 5 of the Handbook of Procedures (Vol-I) contains the list of inspection and certification agencies for the purpose of import of Metallic Waste and Scrap. Five new Pre Shipment Inspection Agencies (PSIA) have now been added and area of operation of four existing PSIAs has been widened. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2012/dgft12pn052.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No 52/(RE 2012)/2009-2014, Dated: March 28, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Unauthorised Absence of Government Servants - DOPT issues Consolidated Guidelines </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has observed that due seriousness is not being accorded by the administrative authorities to the various rule provisions, inter alia under the CCS(Leave) Rules, 1972, for taking immediate and appropriate action against Government servants staying away from duty without prior sanction of leave or overstaying the periods of sanctioned leave. Government has reiterated that such absence is unauthorised and warrants prompt and stringent action as per rules. It has been observed that <strong>concerned</strong> administrative authorities do not follow the prescribed procedure for dealing with such unauthorised absence. </font></p>
<p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><img src="http://www.taxindiaonline.com/RC2/image/stories/DOPT_issues.jpg" alt="Legal Corner Icon" width="400" height="290" hspace="5" border="0" align="center"></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DOPT has highlighted the various rules to deal with such delinquent babus and wants these provisions to be brought to the notice of all the employees so as to highlight the consequences which may visit if a Government servant is on unauthorised absence. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/oms/dopt_leave_rule.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DOPT No. 13026/3/2012-Estt (Leave), Dated: March 28, 2013</font></strong></a></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><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">ST - Recruiting staff and supplying them to group companies to deal with activities undertaken by group companies - such an activity does not, <em>prima facie</em>, come under purview of Business Auxiliary services - Stay granted from pre-deposit of Rs.8.35 Crores: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellant was found to be engaged in recruitment and supply of manpower for the group companies and the cost of expenditure towards the salaries and other administrative expenses were reimbursed to them by other group companies on actual basis from May 2006 onwards. In addition to the reimbursement of the expenditure, the appellant also charged a sum of Rs.1.00 lakh every month for the services rendered by them and started discharging service tax liability on the said amount . </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether when assessee avails benefits based on decision of Kerala HC, which was later over-ruled by SC, it cannot be granted waiver of penal interest merely because it is not located within jurisdiction of Kerala HC - NO, it can be: 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 an assessee has genuinely availed benefits under the Income Tax Act, relying upon the decision of Kerala High Court, which was later overruled by the Supreme Court, it cannot be granted the waiver of penal interest u/s 119(2)(a), merely because the assessee is not located within the jurisdiction of the Kerala High Court; Whether the power of waiver of penal interest u/s 119(2)(a) can be exercised only in the perspective of the decision of the High Court or Supreme Court passed necessarily in assessee's own case and Whether the fact that the decision covers the field of Income Tax legislation, as may be applicable to any assessee, would not amount to a sufficient circumstance for reduction of waiver of interest - Whether the decision of the other High Courts have any persuasive value. And, the HC allows the assessee's writ. </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">CENVAT/MODVAT - Rule 6 of CCR, 2004/57CC of CER - Since chemicals have been used as inputs in manufacture of sugar i.e. dutiable product only and not in manufacture of Bio-compost, an exempted product, seeking recovery of 8% of price of Bio-compost is not legal and proper - Revenue appeal dismissed: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Revenue authorities seem to have developed a sweet relation with the Sugar industry. And this sweetness is more than exhibited by the innumerable demand notices they issue to this industry by invoking the provisions of rule 6 of the CENVAT Credit Rules, 2004. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Tuesday for the judgements</font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tuesday with more<strong> DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">HAVE A NICE DAY. </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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