TIOL-DDT 2104 · 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 2104 </font><br>
14.05.2013 <br>
Tuesday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Lawyers think that they are above law </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Supreme Court yesterday came down heavily on the Bar Council of India for not taking action against erring lawyers. The Court said, “Bar Council has become ineffective; We are actually the victim and lawyers are making money.” The Court also said, “Lawyers think that they are above law. We are facing such situation every day.” </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Since defects not removed even after a year, Revenue appeal dismissed </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THEY</strong> file an appeal for the sake of filing one and what is filed is full of defects. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal registry does not have a different yardstick, one for the assessee and another for the Revenue. After all, rules are rules and they have to be followed even if they are, in the words of the Revenue, "procedural". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Defect memo they issue the moment they notice a mistake and remind the party to rectify the same and if the defects are not cured, the Registry has nothing to lose. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The matter comes up for compliance in the days to come and the Bench would be required to spend its time and energies hearing the multitude of excuses, almost always by the Revenue representative, only to dismiss the appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17596" target="_blank">DDT 2092</a></strong> we had highlighted such a lackadaisical attitude exhibited by the Revenue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODc5MDM=" target="_blank">2013-TIOL-656-CESTAT-AHM</a></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We thought it must be a one-off instance, but have come across another such case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this appeal filed by the Commissioner of Customs (Import), Mumbai, a defect memo was issued by the Registry to remove the following defects - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#FF0000">a) Authorisation is not filed/signed in the original by the Committee of Commissioners; </font></em></font></p>
<p align="justify"><font color="#FF0000"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) MA is not signed and not verified; </font></em></font></p>
<p align="justify"><font color="#FF0000"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) Order appealed against is not certified by the concerned department. </font></em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This defect memo was issued to the revenue on 24.02.2012 and again on 27.03.2012. Thereafter the matter was listed before the bench on 30.05.2012 and on 25.02.2013, but there was no response from the Revenue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the matter was heard in the first week of March, 2013, the Bench observed that the defects were still not removed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the appeal filed by the Revenue was dismissed as defective! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is there anything like accountability and responsibility? </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please See <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODgxNjM=" target="_blank">2013-TIOL-728-CESTAT-MUM</a></font></font></strong></p>
<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Duty on Imported Cashew kernels </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> an amendment to the Finance, Bill, 2013, the Tariff Rate of Basic Customs duty in respect of Cashew Kernel, broken/whole was raised to 70%. <strong>[See<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17643" target="_blank"> DDT 2095</a>]</strong> Pursuant to the assent granted by the President, the Finance Bill, 2013 has been enacted on 10th May, 2013.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, in order to prescribe effective rate of Customs duty to Cashew kernel, broken/whole, a notification has been issued on 10th May, 2013. Resultantly, Notification 12/2012-Cus has been amended to insert the following entries - </font></p>
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<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></p></td>
<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(6) </font></strong></p></td>
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<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">22A </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0801 32 10 </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All goods </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.60 per kg or 45%, whichever is higher </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
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<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">22B </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0801 32 20, 0801 32 90 </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All goods </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.75 per kg or 45%, whichever is higher </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">- ”. </font></p></td>
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<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_027.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 27/2013-Cus, Dated: May10, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of Gold by Nominated Banks/Agencies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOMINATED</strong> banks/agencies were permitted to import gold on loan basis, Suppliers Credit/Buyers Credit basis, consignment basis as also on unfixed price basis. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Working Group on Gold had recommended aligning gold import regulations with rest of the imports for creating a level playing field between gold imports and other imports. Bulk of the gold imported by nominated banks is on consignment basis whereby nominated banks do not have to fund these stocks. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To moderate the demand for gold for domestic use, it has been decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This comes into force with immediate effect. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir103.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI/2012-13/499; A.P.(DIR Series) Circular No.103,Dated: May 13, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Minimum Price for Import of Areca Nuts Enhanced </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has enhanced the CIF value of Areca Nuts from the present ‘Rs.75/- and above per Kilogram' to ‘Rs. 110/- and above per Kilogram' under the Exim Code 0802 80. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 12 (RE - 2013)/2009-2014, Dated: May 13, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Going to US - Don't carry a Pressure Cooker </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOW</strong> a days the US Customs is very fussy about Pressure Cookers - last Saturday they arrested a passenger from Saudi Arabia for carrying a pressure cooker. If you remember two pressure cooker bombs were used in the attacks that killed three people and injured more than 250 others last month at the Boston Marathon. Ask your children to buy those pressure cookers in US of A - don't carry them from India. </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/Adjudication_ddt.JPG" alt="" width="400" height="293" 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"> - Wednesday'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">Appellant is leasing out machinery/equipment and discharging VAT liability on consideration received - transaction involved is "transfer of right to use" which is a deemed sale and not "supply of tangible goods for use service": - Pre-deposit waived and stay granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant is inter alia engaged in renting of earthmoving equipment such as Caterpillar, Excavators, etc. to various customers. The appellant did not discharge any service tax liability on the said activity. The department was of the view that the activity of renting of earthmoving equipment would come under the purview of service tax under the purview of service tax under the taxable service category of "business auxiliary service" for the period prior to 16-5-2008 and under the category of "supply of tangible goods for use" with effect from 16-5-2008 and accordingly issued a notice demanding service tax amounting to Rs. 2,13,10,930/- for the period 2005-06 to 2009-10. The CCE, Nagpur confirmed the demand of service tax under the category of "supply of tangible goods for use" for the period from 16-5-2008 amounting to Rs. 67,39,694/- along with interest and penalties. </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 pendency of civil suit is a bar on writing off bad debt when assessee is of opinion that probability of recovery is not even remote - 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 pendency of a civil suit is a bar on writing off the debt, even if in the opinion of assessee its probability of recovery is remote and Whether in order to claim a bad debt, mere writing off the same in assessee's books is a sufficient compliance of section 36. And the verdict goes in favour of assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise/CENVAT Credit </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Reversal of entire "Input Service" Credit taken along with interest amounts to non-availment of credit and suffices for purpose of Rule 6 of CCR, 2004 - no cause for payment of any amount in terms of rule 6(3) of CCR, 2004 - however penalty imposable u/r 15(3) : CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant are manufacturers of material handling equipment and avail CENVAT credit. Vide Notification No. 25/2008-CE dated 29.4.2008 some of their products viz. Jumbo Electric, Jotruk, Jowalk and electrically operated vehicles were completely exempted from payment of Central Excise duty. The appellant says that they were unaware of this exemption notification and continued to pay duty @8% adv. till 31.07.2008. Thereafter, they started clearing the impugned goods under exemption. Since they were manufacturing dutiable goods also, they maintained separate record of "inputs" used in dutiable as well as exempted goods. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Tomorrow for the judgements</font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice DAY.</font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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