TIOL-DDT 2080 · 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 2080 </font><br>
08.04.2013 <br>
Monday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Process of reconciliation of realization of export proceeds - Board Instructions</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>process of reconciliation of realization of export proceeds that occurs consequent to duty drawback payments was prescribed by CBEC Circular No. 5/2009-Customs dated 02.02.2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has come to know that</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Field formations are insisting on the exporter/owner to submit the BRC/negative statements in person.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Even after the exporter has proof of having submitted BRC/negative statement, these documents are asked repeatedly; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The exporter is asked to attend personal hearing despite having submitted BRC/negative statement;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. It is insisted that only the exporter/owner should attend hearing in person. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board feels that such actions on the part of the officers reflect negatively on the department and do not add any value to the process of reconciliation. Such actions are strongly disapproved by Board. Board wants Commissioners to ensure that no room exists for generation of such avoidable grievances in their respective charges through proper management, guidance and close supervision of the reconciliation process. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/instruction13_001.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Instruction in F. No. 609/35/2013-DBK, Dated: April 04, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Classification
of 'Low Noise Block' (LNB) down converter - Board Clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DOUBTS have been raised regarding classification of Low Noise Block (LNB) down converter, which is designed to be mounted on aerial (dish) of a system for receiving satellite broadcasts (Satellite Television Reception System). The low-noise-block (LNB) down converter amplifies the weak signals and converts the frequencies from very high levels (2.5 to 12.45 GHz) to levels within the VHF and UHF range (less than 2 GHz). The competing Customs tariff headings are 8525 (as transmission apparatus), 8529 (as part to be used with dish antenna, and 8543 (as electrical machines and apparatus having individual functions, not specified or included elsewhere in chapter 85). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC clarifies that separately presented LNB down converter (LNB) would be appropriately classifiable in heading 85.43, more specifically in subheading 8543.70, tariff item 854370 99. Board wants pending classifications to be finalised accordingly. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/cuscir13_013.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No.13 / 2013 - Customs, Dated: April 05, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Export of raw cane sugar to USA under Tariff Rate Quota</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has allocated a total quantity of 8,587 MTs(raw value) of raw cane sugar out of non-levy(free sale) quota for export under tariff rate quota(TRQ) to USA for the US fiscal year 2013 (October 1, 2012 to September 30, 2013). This export will be through M/s. Indian Sugar Exim Corporation Ltd, New Delhi. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2012/dgft12pn053.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 53 (RE-2012)/2009-2014 , Dated: April 05, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Bar-coding on Primary level packaging on export consignment of pharmaceuticals and drugs - Time Extended </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> requirement of affixing Barcodes on Primary Level packaging was to take effect from 01.07.2013. Now this date has been deferred to 01.07.2014. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2012/dgft12pn054.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 54 (RE-2012)/2009-2014 , Dated: April 05, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FEMA - Selling Indian rupees to foreign tourists /visitors against International Credit Cards - RBI Instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RBI </strong>has decided that Authorised Money Changers (AMCs) may sell Indian rupees to foreign tourists /visitors against International Credit Cards / International Debit Cards and should take prompt steps to obtain reimbursement through normal banking channels. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir096.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI/2012-13/ 473 A.P. (DIR Series) Circular No. 96, Dated: April 05, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The departmental officer who drafted the application needs intensive training - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Miscellaneous application filed before the CESTAT by the Department reads as, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the facts of the case and grounds of appeal vide Annexure-I & II, I pray the Hon'ble Customs, Central Excise & Service Tax Appellate Tribunal Bangalore for accepting the Miscellaneous Application seeking to amend the Appeal Memo against the operation of the order passed by the Commissioner (Appeals), Hyderabad vide Order-In-Appeal No.03/2010 (H-I) ST dt. 28.05.2010 absolutely, pending disposal of the appeal filed before the Hon'ble CESTAT, Bangalore, as substantial question of law and revenue are involved. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Do you understand what amendment the Department wanted? No? Nor did the CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal observed, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">The departmental officer who drafted the above application needs intensive training</font></strong><font color="#FF0000">. An application of this kind should, at least minimally, specify the extent of amendment required. The present application merely seeks amendment of the memo of appeal. At this stage, the learned Superintendent (AR) points out that the appellant has filed an amended text of appeal memo also, which I have perused. On a comparison of the amended text of appeal memo with the original text of appeal memo, I have been able to find out the' nature of the intended amendment. By this amendment, the appellant seeks to deny CENVAT credit to the respondent on "air travel agent's service" and not on insurance service mentioned in the original appeal memo. The appellant requires the former service to be substituted for the latter in some of the paragraphs appearing under the caption "Grounds of Appeal"</font>. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the quality of appeals prepared by the Department and they blame the Tribunal when they lose cases. </font></p>
<p align="justify"><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/caseLawDet.php?QoPmnXyZ=ODc2NjU=" target="_blank">2013-TIOL-568-CESTAT-BANG</a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax Returns - Are They Accepted? </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> got this message from a Netizen: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are observing that the ST3 returns filed online with service tax website of the department over more than 10 days still show that the same are “uploaded”. Usually, these returns are processed and shown as filed within 1 business day or rejected within 1 business day. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The due date for filing returns is 15th April, but there is no way to know whether the returns are being accepted or rejected. It appears that the department website is not fully operational to accept the service tax returns . </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will ACES clarify? </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Decide
Stay Applications within 60 Days - CESTAT Bar President RK Jain </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WELCOMING</strong> the new President of CESTAT, Justice Goda Raghuram on 6th April, the President of the CESTAT Bar Association said, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>As an institution which has served its purpose of justice to revenue litigants for past more than 30 years, it is now on threshold of imminent expansion as ever increasing pendency has left available, no other choice. The ever-mounting pendency figure now stands at more than 75,000 Appeals and 11,000 Stay Orders and the same is having a crippling effect on the administration of justice at the level of CESTAT. Solutions therefore have to be implemented on a war footing. While the need for more benches has even come to be emphasized even by the higher Judicial forums with the Karnataka High Court giving a time bound direction to implement expansion by the mid of this year, equally there is need to have greater efficiency with in CESTAT, which can be achieved by time tested procedures of orderly and age wise listing of cases and bunching of cases involving similar issues. Again, with the changes that have been brought in recently in the budget and in various Board`s circulars, there is a need to prioritise disposal of Stay Applications and the same must be decided within 60 days, so that litigants are not subjected to unwarranted recovery actions for no fault of theirs. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Adhering to precedents is not only desirable from the point of view of judicial discipline but also enables quick decision-making and creates a certainty of law in the minds of everyone concerned. Once Justice Krishna Iyer said “Certainty of law is the safety of citizen”. In a democratic society governed by rule of laws, Tax Laws should not be interpreted differently in different cities, by different persons at different times, as it results in discrimination, which is prohibited by Article 14 of our Constitution. If all benches of a tribunal do not speak in one voice, the impression created is that it is a house divided and it further complicates matters and increases litigation, as the justice is perceived more as an individualised justice rather than an institutionalised one. Decisions rendered by Courts at one floor are not respected by the Courts on the other Floors. This floor-wise justice system needs to be taken care of, as it is immensely affecting the image of our august institution. The doctrine of precedent needs to be respected and implemented, particularly with reference to Tribunal's own decisions. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An efficient Registry is the mainstay of functioning of any judicial or quasi-judicial institution. The toil and sweat of Hon`ble members can be brought to naught if the same is not coupled with the efficiently functioning Registry. If the delay in passing and issuing of orders is to be minimised, which has also been emphasised by the apex court also, then the Registry of the CESTAT is required to be toned-up. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The wheel of justice starts moving with the listing of cases for hearing and if cases are not listed chronologically according to their age, it is bound to pollute the whole justice delivery system and adversely affect public confidence without which no institution can survive. Your Lordship can diagnose the problem by perusing cause lists of few weeks. The young and Junior Members of the Bar are mostly the sufferers. The problem of large pendencies at the CESTAT is also attributed due to non-listing of cases in a fair and orderly manner. Even in a Ration Shop, if there is a proper queue, there is a faster and satisfactory distribution otherwise in a queue jumping, there is a mess and even half of the people may not get ration. Technology coupled with strong resolve of implementation can easily provide a solution to this problem.</font></em></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/ddt_2080.jpg" alt="" width="400" height="312" hspace="5" border="0" align="center"></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
</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><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">Indian Railways though part of Union Government is liable to pay Service Tax in case activities undertaken by them fall within the definition of taxable services - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellant, a division of the Indian Railways, are inter alia engaged in the activities of Renting of Immovable Property Service, Sale of place or time for Advertisement Service and Mandap Keeper Service. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since they did not discharge their Service Tax liability, a SCN dated 19.4.2010 along with addendum dated 20.7.2010 demanding Service Tax of Rs.1,28,22,481/- was issued and the same was adjudicated by the CCE, Nagpur on 13.12.2010 confirming the tax demand and imposing penalties and interest. </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 sum held as FDs is in relation to share capital infused by non-resident parent for acquisition of land for setting up steel plant by its subsidiary, such income is to be treated as income from other sources - NO: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong>, an Indian Company is a wholly owned subsidiary of POSCO, Korea of POSCO Group, of international repute. POSCO Group had specialized knowledge in steel making and were desirous to have a Port based Steel plant in the state of Orissa, India. POSCO- India Private Limited is a company formed to undertake a Greenfield project for setting up an Integrated Steel Plant in Orissa. POSCO, Korea entered into a MOU with the Govt. of Orissa to set up a 12 million Ton p.a (MTPA) Integrated Steel Plant with a captive port with handling capacity of 30-35 MTPA and captive mines of 20 MTPA capacity. The issue before the Bench is - Whether when the sum held as FDs is in relation to share capital infused by the non-resident parent for acquisition of land for setting up a steel plant by its subsidiary, such income is to be treated as income from other sources. And the verdict goes against 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">Mere retraction of statement under Section 108 of Customs Act by itself is not enough, as it is relevant to consider when and why it was retracted - Statement of co-accused cannot be excluded from consideration at the threshold of trial: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner contended that there is no legal evidence against petitioner and the statements of Dinesh Khanna and petitioner's brother-Praveen K. Chaudhary under Section 108 of the Customs Act, 1962 and similar statement of co-accused are inadmissible in evidence as the same can be used only for reassurance of substantive evidence, which is lacking in the instant case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was also contended that, in the absence of original documents on record, it would be pointless to call upon petitioner to face the trial after two decades, especially, when there is no independent evidence to connect petitioner with the offence in question. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Tomorrow for the judgements </strong></font></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>
<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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