TIOL-DDT 2106 · 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 2106 </font><br>
16.05.2013<br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">VCES,
2013 - The carrot and guillotine policy? </font></strong></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> Netizen writes in - </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"In paragraph 183 of the Budget speech, the Finance Minister mentioned - </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">"183. While there are nearly 17,00,000 registered assessees under service tax, only about 7,00,000 file returns. Many have simply stopped filing returns. We cannot go after each of them. I have to motivate them to file returns and pay the tax dues. Hence, I propose to introduce a one-time scheme called 'Voluntary Compliance Encouragement Scheme'. A defaulter may avail of the scheme on condition that he files a truthful declaration of service tax dues since 1.10.2007 and makes the payment in one or two instalments before prescribed dates. In such a case, interest, penalty and other consequences will be waived. <strong>I hope to entice a large number of assessees to return to the tax fold.</strong> I also hope to collect a reasonable sum of money."</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
careful reading of the above would reveal that the FM hopes to entice a large
number of assessees to <font color="#CC3300"><strong>RETURN </strong></font>to
the tax fold. The verb "Return"read in juxtaposition to the opening
sentence would mean that the scheme is for "MOTIVATING" the 10,00,000
registered assessees who have stopped filing returns to come back to the
tax fold. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If this be so, then the ST Voluntary Compliance Encouragement Rules, 2013 also speaks of a category distinct than those that are being lured back into the tax fold. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These are "first-timers"who have managed to hide their Service Tax liability all these years viz. from 1 st October, 2007 to 31 st December, 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And this is clear from a reading of Rule 3 of the Rules which reads - </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span">"<strong>3. Registration.</strong> - Any person, who wishes to make a declaration under the Scheme, shall, if not already registered, take registration under rule 4 of the Service Tax Rules, 1994." </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the fact of the matter is that the Service Tax Voluntary Compliance Encouragement Rules, 2013 have expanded their brief thanks to the provisions of section 114 of the FA, 2013 which allows the Central Government to make rules for carrying out the provisions of the scheme. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
next question is about the manner of payment of the "tax dues" that
would be declared under the VCES, 2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule 6 of the ST VCE Rules, 2013 provides an answer - </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><strong>6. Payment of tax dues.-</strong> (1) The tax dues payable under the Scheme along with interest, if any, under section 107 of the Act shall be paid to the credit of the Central Government in the manner prescribed for the payment of service tax under the Service Tax Rules, 1994. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span">(2) The <u>CENVAT credit shall not be utilised for payment of tax dues under the Scheme . </u></font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why complicate and create confusion by mentioning '<font color="#CC3300"><em>…in the manner prescribed for payment of service tax under the STR, 1994 </em></font>'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For Example:. If a 'declarant' who is also registered under rule 4 of the STR, 1994 chooses to follow the manner prescribed in rule 6 of the STR, 1994 what is the Central Government going to do about it? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It would have been prudent to mention in clear terms that the "dues"declared under the Voluntary Compliance Encouragement Scheme should be paid in "CASH"in a similar fashion as was prevalent under the KVSS, 1998. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The contents of rule 6(2) can also be interpreted in the following manner - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Admittedly, the CENVAT credit cannot and would not be used for payment of "tax dues"under the VCES, 2013; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ For an existing registered assessee, it is a possibility that he has availed CENVAT credit on the Inputs as well as Input Services etc. but has not discharged Service Tax on a service which was hitherto hidden from the knowledge of the department. In such a case, the CENVAT credit availed, the assessee would be/may be able to utilize once his "tax dues"are settled; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ However, for a declarant who registers himself pursuant to the mandate of Rule 3 of the Rules, 2013 (supra), he would be a loser, inasmuch as such he may be in possession of duty paid/tax paid invoices but has not availed CENVAT credit and is also barred from utilizing such credit for payment of the "tax dues". The only recourse he would have is that after payment of the tax dues, he could/would take CENVAT credit of duty/tax paid on all such inputs/input services that were utilized/consumed during the period 1 st October, 2007 to 31 st December, 2012 and for which period he has opted for the VCES. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As mentioned in <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17758"><strong>DDT 2105</strong> </a>yesterday, even in cases of clandestine clearances of excisable goods, CENVAT credit is allowed once the duty liability is accepted and paid. In such an eventuality, there ought not to have been any bar on utilisation of CENVAT for payment of "tax dues"under VCES, 2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So also, the question, whether upon payment of the "tax dues"under VCES the same is CENVAT able at the end of the service receiver, by applying or otherwise, the provisions of rule 9 of the CENVAT is also not answered. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is felt that a "<strong>Help Desk"</strong> be formed at the Board level and a toll-free number be allotted for prospective 'declarants' to seek answers to their queries. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC may also consider bringing out a FAQ booklet on VCES, 2013 quickly but ensure that it contains "succinct answers"to all possible queries a prospective declarant and the 'designated authority' can think of!"</font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT feels that the Board should respond before the VCES, 2013 engine starts gathering momentum. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Values for Gold and Silver Reduced </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </strong>has changed the Tariff Value for all goods except poppy seeds. The rates as on 30.04.2013 and 15.05.2013 are as under: </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TABLE 1 </strong></font></p>
<table width="90%" border="0" 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">Chapter/ heading/ sub-heading/tariff item </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"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) </font></strong></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> from 30.4.2013 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) </font></strong></p>
<p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">from 15.5.2013 </font></strong></font></p></td>
</tr>
<tr bgcolor="#FFF0E1">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top" bgcolor="#FFF0E1"><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" ><div align="center"></div></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">824 </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">831 </font></p></td>
</tr>
<tr bgcolor="#FFF0E1">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">851 </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">836 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others – Palm Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">838 </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">834 </font></p></td>
</tr>
<tr bgcolor="#FFF0E1">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">858 </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">840 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 20 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBDPalmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">861 </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">843 </font></p></td>
</tr>
<tr bgcolor="#FFF0E1">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others – Palmolein </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">860 </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">842 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507 10 00 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1103 </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1075 </font></p></td>
</tr>
<tr bgcolor="#FFF0E1">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404 00 22 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3942 </font></p></td>
<td valign="top"><p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">3910 </font></p></td>
</tr>
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1207 91 00 </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 color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">4395 (i.e. no change) </font></p></td>
</tr>
</table>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TABLE 2 </font></strong></p>
<table width="90%" border="0" 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">Chapter/ heading/ sub-heading/tariff item </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"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) </font></strong></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">from 30.4.2013 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) </font></strong></p>
<p align="center"><font color="#FF0000"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">from 15.5.2013</font> </font></p></td>
</tr>
<tr bgcolor="#EFCFCF">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top" bgcolor="#EFCFCF"><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>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(4) </strong></font></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"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </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 align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">477 per 10 grams </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">466 per 10 grams </font></p></td>
</tr>
<tr bgcolor="#EFCFCF">
<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"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </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 align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">788 per kilogram” </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">761 per kilogram” </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_053.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 53/2013-Cus NT, Dated: May 15 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Same old story - Defects not removed, hence appeals dismissed by CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON </strong>the captioned subject, we have already reported two cases in<strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17596" target="_blank">DDT 2092</a> & <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17747" target="_blank">2104</a></strong> cited as <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODc5MDM=" target="_blank"><font size="1">2013-TIOL-656-CESTAT-AHM</font></a> & <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODgxNjM=" target="_blank">2013-TIOL-728-CESTAT-MUM</a></font></strong> respectively. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Two more such cases came to our notice and which indicate that it is not only the Customs formations which take things lightly when it comes to curing of defects in the appeals filed but also Central Excise & Service Tax authorities.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Table given below gives the details of the appeals filed, by whom, on what date, the date of defect memo and the reminders issued by the Registry. </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sr. No. </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appeal No. & filed by </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Filed on </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Defect Memo dated </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reminder by Registry </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><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">ST/612/2010-Mum </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CCE, Raigad </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">09/11/2010 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21/02/2011 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21/02/2013 </font></p></td>
</tr>
<tr>
<td valign="top"><p><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">ST/511/10-Mum </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CST, Aurangabad </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">04/10/2010 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">03/12/2010 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21/02/2011 & 21/02/2013 </font></p></td>
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</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One would have expected that after receiving 'gentle' reminders from the CESTAT Registry, the sections concerned would pull up their socks and do the needful. But nothing of this sort happened. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And so, when both the referred cases were listed before the Bench on 08/03/2013, the Revenue Representative took adjournment with an assurance that the defect will be cured shortly. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Probably, the AR was being too optimistic. Simply because, when the giant wheels of the departmental machinery could not move even an inch for more than two years, nothing could have happened in a fortnight. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the matter was listed on the 22/03/2013, the Bench observed - </font></p>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"…In-spite of best efforts by the learned A.R, the department could not cure the defects pointed out by the Registry. Therefore, the appeal is dismissed and the Revenue is at liberty to move an application for restoration of appeal as and when the defect is cured."</font></em></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=ODgxOTg=" target="_blank">2013-TIOL-742-CESTAT-MUM</a></font> &<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODgxOTk=" target="_blank"><font size="1"> 2013-TIOL-743-CESTAT-MUM </font></a></font></strong></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT adds</strong> - Many in the department did not find reporting of the cases mentioned at the outset to their liking and gave us a <em><strong>piece </strong></em>of their mind. It is not at all the intention of <strong>DDT</strong> to embarrass or lampoon the section <em><strong>concerned</strong></em>. Our only endeavour is to make the department understand the gross abuse of time that occurs with such a lackadaisical attitude. Appeals which can be disposed of either way in a hearing or two get dragged on for years without fetching any revenue for the exchequer. In the meanwhile, some of the respondents perform the vanishing act!</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Overzealous Customs Officers arrests Pax carrying a 'pressure cooker' </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> pressure cooker is not for simple cooking alone - it's a terrible terror weapon. Just a month ago, pressure cookers packed with explosives killed three people and injured nearly three hundred at the Boston Marathon. Since then, the US Customs sees red in every pressure cooker. Last week, they arrested a Saudi passenger at Detroit airport for carrying the dangerous pressure cooker. He said the cooker was for his nephew studying in a University in Ohio. FBI sleuths have questioned the student and the uncle is in jail - all for a pressure cooker! </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"> - Friday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"><strong><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of motor vehicle parts and clearance to domestic market after repacking - there cannot be different Retail prices for purpose of CVD and for purpose of Excise duty in respect of same goods - there is no valid explanation by applicant regarding lower MRP for purpose of excise duty - Pre-deposit ordered of duty demanded: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>applicants are engaged in the manufacture of motor vehicles and are importing motor vehicle parts. At the time of import of the motor vehicle parts, the applicants were declaring MRP for the purpose of payment of CVD and automobile cess. The applicants were availing CENVAT credit of the CVD paid. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The imported automobile parts were cleared to domestic market after repacking. As the automobile parts are specified goods leviable to Central Excise duty as per Section 4A of the Central Excise Act, the applicants declared MRP for the purpose of payment of Central Excise duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The eagle eyes of the jurisdictional officers smelled a rat here. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was observed that the applicants were declaring higher MRP for the purpose of CVD to the Customs authorities but were paying Central Excise duty after repacking on a lower MRP. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Therefore, SCNs for demanding differential Central Excise duty were issued and the same were confirmed by the adjudicating authority along with penalties & 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 a notice issued u/s 226(3), is not pursued further by Revenue in terms of any show cause notice, assessee can still be treated as deemed assessee in default - NO: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether when a notice issued u/s 226(3), is not pursued further by the Revenue in terms of any show cause notice, the assessee can still be treated as deemed 'assessee in default' qua this notice; Whether a notice can have a valid enforceable effect in law, even if it has been waived; Whether in case of a general lien, bank has a lien on the account in respect of dues of the party and the said parties are indebted to bank; Whether in absence of a garnishee order, the saving bank account and open cash credit account can be clubbed together; Whether proceedings u/s 226(3) are in nature of garnishee proceedings; Whether a person to whom garnishee notice is issued, must be in the position of a creditor with respect to the assessee in default; Whether at the time of the garnishee notice, the sum must be due to the assessee and Whether in order to create Banker's lien on several accounts it is necessary that they must belong to the payer in one and in the same capacity. And the verdict goes in favour of the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appellant placing an advertisement for their machinery in a magazine published in UK - department demanding ST under 'Sale of space or time for advertisement' - s. 65(105)(zzzm) excludes sale of space for advertisement in 'newspaper' - definition of 'newspaper' is wide enough to cover any periodical work and includes 'magazine' - strong prima facie in favour - 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 are manufacturer of machinery used in fertilizer industry. They placed an advertisement for their machinery in a magazine, called Fertilizer Focus which is published in UK. The department was of the view that for the consideration paid by them for putting out the advertisement in the foreign magazine, the appellant is liable to discharge Service Tax under the category of "Sale of space or time for advertisement services.”</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Friday 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>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></strong></font></p>
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