TIOL-DDT 2098 · 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 2098 </font><br>
06.05.2013 <br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Taxing Takeaway Eating Joints</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> following is a Question raised by the Member of Parliament Sugumar K in the Lok Sabha -</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6123. SHRISUGUMAR K.:</font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will the Minister of FINANCE be pleased to state: </font></em></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(a) Whether the Government has brought/proposes to bring takeaway eating joints and the restaurants rendering home services under the tax net; </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) If so, the details thereof;</font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Whether various associations of restaurants and hotels have requested the Government not to bring the takeaway eating joints and restaurants rendering home services under the tax ambit; and </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) if so, the details thereof and action taken thereon? </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the Minister of State for Finance, Namo Narain Meena , in a written reply stated- </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">"Prior to 01.04.2013, service tax was leviable on restaurants satisfying two conditions namely (i) the facility of air-conditioning or central heating in any part of the establishment, at any point of time during the year, and (ii) a license to serve alcoholic beverages. With effect from 01.04.2013, condition number (ii) stands deleted. Accordingly service tax is leviable to all restaurants satisfying condition (i)." </font></em></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Should the restaurateurs wait for the Central Board of Excise & Customs to issue a clarification on the Minister's clarification?</font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT requests the Board to do the needful.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Visible
and apparent instead of ceremonial progress in arrear demand: CBDT Member </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBDT Member, Dr. Parvinder Sohi Behuria in a letter addressed to the Chief Commissioners has exhorted them to manage arrears efficiently. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Member told the Chief Commissioners, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As the new financial year has begun and the department is entrusted with new targets and goals, your focused attention is sought for a pro-active approach towards recovery of arrear demand this year. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The demand uploaded by AOs on the CPC Portal together with demand in IRLA is way short of the total demand reported in CAP-I. And the demands uploaded are sometimes incorrect or non-existent leading to grievances and causing aberrations in projection of total collection figures. A structured and systematic approach is required to identify the causes of mounting arrear demand and develop a strategy to address these reasons in a timeframe for implementation. The responses involve a combination of measures to achieve stiff targets of arrear demand recovery. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Your aim should be to crystalize the arrear demand at realistic level after resolving the grievances in a transparent manner. The progress must be visible and apparent instead of being ceremonial. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is important to keep in mind that once Income Tax Department is facing a stiff target it has to prevent a further deterioration in demand position. Sophisticated </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue I.T. Systems have been developed and refined to assist us in the timely identification of cases for direct intervention relating to recovery of arrear demand. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Therefore, early and proactive measures by the Department are imperative. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finally, I wish to assert that accurately identifying the specific action points will give Income Tax Department an edge for the recovery of arrear demand. </font></em></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/cbdt_demand_management.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT F. No. I/164/DIT(R)/Demand Management/DOMS/2013-14, Dated April 29 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CAG finds flaws in flow and utilization of Information in CBDT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>STRENGTHENING</strong> the tax base is arguably one of the most important aspects of the direct tax management. The Income Tax Department (ITD) uses 'pieces of information' arising from different sources to strengthen the tax database, in addition to the information available in the income tax returns/provided by the assessee during assessment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Information Branch (CIB) of ITD collects, uploads information to the ITD Systems and disseminates to the Assessing Officers (AOs). There are 17 formations of CIB across the Country under the Director General of Income Tax (Intelligence and Criminal Investigation). Agencies submit information to CIB or TIN Facilitation Centres of National Securities Depository Limited (NSDL) on behalf of ITD. This flows through CIB Module of ITD Systems software administered by the Director General of Income Tax (Systems). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Annual Central Action Plans of ITD target an increase of 15 per cent per year in assessee base. Against this, annual increase during the ten year period from FY 02 to FY 11 was only 3.1 percent (from 262 lakh to 336 lakh assessees). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAG found several deficiencies in the scheme of flow and utilization of information. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- ITD did not call for Information from all the sources. Some of the information lacked basic information like PAN of assessees thereby rendering it useless. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- There were cases where incorrect information was transmitted. ITD made no effort to transfer this incorrect transmitted information to AOs dealing with the correct assessees. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- ITD was not following up on notices requisitioning information from the agencies. ITD did not take action against inadequate filing of AIRs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- CIB delayed and defaulted on uploading information on ITD Systems. They defaulted on classifying and maintaining the data and did not utilize the full functionalities of CIB Module. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- Out of the total cases selected for scrutiny by ITD, an average of 7.7 per cent over FY 08 to FY 10 was on the basis of AIR information. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- 285 high value cases were found where AOs did not utilize the useful available information during assessments or they finalized the assessments relying on the reply of the assessees without verifying the facts and correctness of the transactions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- AOs also did not bring AIR information to tax in cases where the assessee himself had offered the amount </font></p>
</blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAG Recommends:</font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Collection and Collation of Information:</font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Information from all the compulsory as well as approved optional source codes be collected; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Entire collected information be uploaded by CIB/NSDL in the same year and bottlenecks in uploading the information be removed so that it can be used in scrutiny assessment;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Suitable system be put in place which ensures correctness and reliability of data received through AIR/CIB before its dissemination to the field. There is also a need for effective penal provisions in the Act for furnishing factually incorrect information in AIR or in reply to notices issued by ITD; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Feasibility of developing a web based information collection system be explored to avoid the problems in collecting non-AIR information. This would take care of redundant data and data mismatch; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Internal review be initiated to gauge the utility and effectiveness of system of filing of AIR; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Time lines for issuing query letters be defined as also for referring back cases to DIT-CIB, as control mechanism to ensure that the query letters are issued by a specified time/date and if the letters return as un-served, the cases are referred to DIT-CIB within a defined time period, enabling effective monitoring of the activity; </font></p>
</blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dissemination of Information: </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Suitable mechanism be devised including business intelligence tools to ensure effective utilization of information collected at high cost, both to ITD and for the agencies tasked with collecting and providing such information to ITD to achieve the objective of deepening and widening of tax base; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. All available functionalities of CIB module be used; </font></p>
</blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Utilization of Information: </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Monitoring system put in place by CBDT needs to be ensured at different levels of ITD; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Utilization of declarations received in Form 60/61 be ensured by digitizing and disseminating them; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Nomination of Designated Assessing Officers on regular basis to deal with non-PAN AIR cases be emphasized; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. Responsibility on AOs be defined who fail to record or utilize the information available to them in course of their assessments. </font></p>
</blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Source: CAG's Report to Parliament. <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17673" target="_blank">Please
also see our Editorial</a>.</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">SION Notified for Verdyl Acetate </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DIRECTORATE</strong> General of Foreign Trade has notified a new SION bearing number A-3640 in respect of the export product "Verdyl Acetate". </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn007.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Public Notice 07/(RE-2013)/2009-2014, Dated : May 01, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appeal dismissed by CESTAT because revenue involved is less than Rs.50,000/- </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the case of <em>Asiatic Enterprises<font size="1"> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2006/2006-TIOL-1356-CESTAT-KOL.htm" target="_blank">(2006-TIOL-1356-CESTAT-KOL)</a></strong></font></em>, the Bench had held thus - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"5…The discretion vested with the Appellate Tribunal to refuse or admit an appeal where the value of the appeal is below Rs.50,000.00 (Rupees fifty thousand) under the second proviso to Section 35B(1) of the Central Excise Act, 1944, is not available to the Appellate Tribunal under Section 86(7) of the Finance Act, 1994 or any other provision of the said Act for refusing or admitting an appeal. No separate provision under the Finance Act, 1994 is incorporated for hearing appeals and making Orders by the Appellate Tribunal, as provided under Section 35C of the Central Excise Act, 1944. It is seen that Section 86(7) similar to the provisions of Section 35C of the Central Excise Act, 1944 and not Section 35B, as such, the second proviso to Section 35B cannot be pressed into service under the Finance Act, 1994. <font color="#FF0000">This means that an appeal lie before the Appellate Tribunal by an aggrieved assessee against the Orders passed under Sections 73, 83A, 84, 85 of the Service Tax Rules, 1994, irrespective of the valuation…. " </font></em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A similar view was taken in the case of<em> Indoworth (India) Ltd. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2011/2011-TIOL-614-CESTAT-MUM.htm" target="_blank"><font size="1">2011-TIOL-614-CESTAT-MUM</font></a></strong> </em>when the appellant relied on the decision in Asiatic Enterprises (supra). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Be that as it may, in a recent case, the Revenue is in appeal[Appeal ST /854/12-Mum] against an o-in-a passed by the Commissioner of Central Excise & Customs (Appeals), Goa and the demand involved is Rs.15,825/-. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Single Member Bench dismissed the appeal by observing thus - </font></p>
<blockquote>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"2. By exercising my power under section 35B of Central Excise Act, 1944, I dismiss the appeal as the revenue involved is less than Rs.50,000/-." </font></em></p>
</blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See
<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODgwMjE=" target="_blank"><font size="1">2013-TIOL-691-CESTAT-MUM
</font></a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Doing Business in India seems gloomier </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Doing <em>Business Project</em> provides objective measures of business regulations and their enforcement across 185 economies and selected cities at the sub-national and regional level. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Doing Business Project , launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages countries to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each country. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Table shown below summarizes <em>Doing Business 2013</em> data for India. It lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. </font></p>
<div align="center"><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"><img src="http://www.taxindiaonline.com/RC2/image/stories/summarizes.jpg" alt="" width="500" height="200" hspace="5" border="0" align="middle"></font></strong></font></strong></font></strong></font></strong></font></strong></font>
</div>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> adds - We seem to be on the downslide almost all through. Tax payments "ease" has dropped three notches further. With those complexities and problems in filing the ST-3 returns, it is hoped we do not reach the bottom of the table in the year to come. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central
Excise Supdt - A messenger to carry drugs - Arrested by Punjab Police </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Jalandhar Police on Saturday arrested a Central Excise Superintendent posted at the Attari Railway Station Customs with 10 kgs of heroin valued at Rs. 50 Crores in the international market. The Superintendent was driving a Tata Safari and the drug was concealed under his seat. Investigations have revealed that the Central Excise officer is not a real smuggler but was only to deliver the consignment to a party for a delivery charge of Rs. 50,000 per kg. This 56 year old Central Excise Superintendent will perhaps spend the rest of his life in prison. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what is corruption in Revenue compared to the one in Railways? A Member is ready to pay Rs. 10 Crores as bribe for a change in his charge! Ten Crores for a posting! If they spend that kind of money, how much are they going to earn? Probably some of them are walking around with a couple of Rajdhani Express trains in their pockets! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Corruption is no more a political or social issue - people are not appalled at the humungous ranges to which corruption has been taken by the Babus and Netas, but what really baffles one is what are these old people going to do with this kind of money and is it worth the risk to spend your remaining life in CBI offices, Courts and ultimately the gaol? </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Uncle, what is Nepotism? </font></p>
<p align="center"><strong><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></strong></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">Oral communication of order of pre-deposit is not envisaged in law - no order has been issued as envisaged in s.37C of CEA, 1944 asking appellant to make pre-deposit - in such a scenario, dismissal of appeal for failing to comply with oral directions is not proper in law - matter remanded: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VIDE</strong> an order dated 13.12.2011, the CCE(A) dismissed the appeal filed by the appellant on the ground that the appellant had not complied with the condition of pre-deposit under the provisions of Section 35F of the Central Excise Act, 1944. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is what he recorded in paragraph 12 of his order - </font></p>
<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">"I find that the appellants have failed to make a pre-deposit of the entire amount of Service Tax and interest, directed during the course of personal hearing held on 16.11.2011, as required in terms of the provisions of Section 35F of the Central Excise Act, 1944, till date, although they were required to submit compliance thereof by 7.12.2011." </font></em></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 Trust exists only for medical education purpose, it loses entitlement to exemption under I-T Act once it is held that its admission procedures were not as per MCA regulations - NO: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong>, a public charitable educational Trust, registered under the provisions of the Rajasthan Public Trust Act, 1959, filed writ contending that the assessee Trust was established in the year 2006 solely for educational purpose and since its inception, was imparting education in several of its institutions. It was further stated that the Trust applied for and was registered under the provisions of Section 12A(a) for availing exemption u/ss 11 and 12 thereof. It was then stated in the petition that on 9.1.2009, the Trust filed an application seeking exemption of its income u/s 10(23C)((vi). The application of the Trust was rejected by the order dated 27.1.2010, on the ground that the Trust was not satisfying the essential conditions for exemption u/s 10(23C). The issue before the Bench is - Whether when assessee Trust exists only for medical education purpose, it loses entitlement to exemption under I-T Act once it is held that its admission procedures were not as per MCA regulations. NO is the Bench's answer. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP/Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 2.17 of the FTP Vs para 2.33 of HBP - Used digital multifunction print and copying machines - No restriction under para 2.33 - Allowed to be cleared on payment of duty - No error in the order of Single Judge - Division Bench of HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a batch of Writ Appeals, the department was challenging the order of single judge, wherein the Writ Petitions filed by various importers of second-hand digital multifunction print and copying machines were allowed by holding that the said goods were not restricted goods. The goods were allowed to be cleared freely on payment of applicable duties. The single judge relied on para 2.33 of the HBP to arrive at the above finding. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is the contention of revenue that the Digital Multifunction and Copying Machine, as per Para 2.17 of the Foreign Trade Policy, is a restricted item and it is not freely importable. As the Handbook of Procedures (Vol-1) is framed in consonance with the Foreign Trade Policy to carry out the objects and purpose of the Policy, the interpretation of Clause 2.33 of the Handbook of Procedures (Vol-1) has to be in consonance with the Foreign Trade Policy. </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 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>
<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>
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