TIOL-DDT 2115 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <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 2115 </font><br> 29.05.2013 <br> Wednesday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Online application and issue of Registration Certificates for export - DGFT Happy to announce Digital Mode </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> is happy to announce migration of the process of obtaining Registration Certificate (for export purpose only) from the existing manual mode to digital mode. With effect from 1st July 2013 such registrations would be online and would be mandatory. This will be applicable for obtaining registration certificates (RCs) for commodities like cotton, cotton yarn, non-basmati rice, wheat and sugar; all of which needs RCs as per existing Foreign Trade Policy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The application has to be made online indicating all the details. Once the Message Exchange System (MES) with CBEC relating to this issue is introduced, the RCs would also be transmitted online. As of now only the process of submitting the applications is made online; grant of RCs would continue to be in hard form. However, electronic copy would be made available on request. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At the time of receiving the hard copy of RC, applicant has to bring a print out of the application submitted online alongwith copies of Letter of Credit [L/C] or Foreign Inward Remittance Certificate [FIRC], as applicable and Export Contract. [<strong>Subsequently when the MES is established, this requirement will not be there</strong>] </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From Monday the 1st July, 2013 it would be mandatory to submit applications only online. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope that the Computer does not hold up exports. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=329&filename=notification/dgft/2013/dgft_trade_notice_03_2013.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Trade Notice No.03/2013., Dated: May 28, 2013 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ST - Revised Returns can be filed within 90 Days </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> ticker on the ACES website declares, </font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax Returns (ST 3) for the period July - Sept, 2012, e-filed in ACES, can now be viewed by the Assesses under 'View Original ST3' and 'View ST3' options under the RET module of ACES with a facility to revise it, if required. The Revised return can be filed by the assessee within 90 days from the date of filing of the Original Return . </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An assessee who could not view the status wrote to us,<em> "I am unable to view the status of ST-3 return for the period from July, 2012 to Sept., 2012 uploaded on 5.4.2013. When I click 'view status' it does not work. No status is indicated".</em> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ACES helpdesk helped him in sorting out this and he wrote to us, "<em>I have got the status of ST-3 returns by clicking on 'View original ST-3 return'. Earlier I was clicking on 'View XML status'. My problem has been solved</em>." </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you want to revise your return, DO IT NOW. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Railway fails to pay the pre-deposit of Rs.25 lakhs - Appeal dismissed </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CALL</strong> it lethargy or a lackadaisical attitude. Either way, the result is a loss for the organization which anyways was also in the news recently for the promises given by the nephew to a Railway Board Member and the exchange of a humongous amount of money. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant, a division of the Indian Railways, are <em>inter alia</em> 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">A demand of Service Tax of Rs.1,28,22,481/- was confirmed by the CCE, Nagpur along with penalties and interest. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At the time of hearing of the Stay application, the CESTAT had observed that the Indian Railways though part of Union Government is liable to pay Service Tax in case activities undertaken by them fall within definition of taxable services. On the question of limitation, the Bench observed that <em><font color="#FF0000">‘normally it cannot be presumed that the government or government departments indulge in evasion of taxes either by suppression or by wilful mis-statement</font></em>'. Noting that the Service Tax liability would be definitely sustainable in respect of the demands made within the normal period of limitation, the Bench had directed the Central Railway to make a pre-deposit of Rs.25 lakhs and report compliance. We had reported this as <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODc2OTE=" target="_blank"><font size="1">2013-TIOL-575-CESTAT-MUM</font></a></strong>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It appears that the "concerned" authorities were not concerned about paying the "pre-deposit" amount within 8 weeks and reporting compliance. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequently, when the matter was called for compliance on 26.04.2013, neither did anyone appear on behalf of the appellants nor did they inform that the pre-deposit amount has been paid. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Resultantly, the appeal was dismissed. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODgzODY=" target="_blank">2013-TIOL-799-CESTAT-MUM</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Amway officials arrested - Released on Bail </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>KERALA</strong> Police have arrested Amway India MD & CEO William S Pinckey and two other directors of the company - Sanjay Malhothra and Anshu Budhrajain connection with a case filed in 2011 in Wayanad, for an alleged violation of the Prize, Chits and Money Circulation Schemes (Banning) Act. This has sent shock waves across the Direct selling Enterprises. Even FICCI has protested against the arrest. The officers have been granted bail yesterday. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MzY0NQ==" target="_blank">DDT 351</a></strong> had carried a detailed story titled "<font color="#FF6633"><strong>Is multi-level marketing (MLM) like Amway illegal?</strong></font>" more than seven years ago. Please also see<strong> <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=NDMwOA==" target="_blank">DDT 457 </a></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That day, a friend of mine called up and in all his humility ‘advised' me to withdraw the piece saying that legality should not be decided by <strong>DDT</strong> as long as people like him have improved their lifestyles by becoming an Amway Business Owner. He hastened to add that he has now achieved the ‘Emerald' level of recognition and would soon be moving higher. When asked what all this meant, he said that since I do not understand the philosophy of ‘multi-level marketing' and am not interested in GROWTH, I should not spoil the chances of others making money! </font></p> <p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">I need to call my friend now to enquire about his GROWTH. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mannequins banned from appearing in window stores </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TO</strong> prevent "wrong acts" by men, the general body of the Brihanmumbai Municipal Corporation has unanimously passed a proposal to ban the display of bikini-clad mannequins outside lingerie shops in the city. </font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT adds</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> - Fortunately, the adventurous voyeur can still ogle at the sari-clad and salwar kameezee clad mannequins for the corporation hasn't banned them. Mannequin industry though at a nascent stage in India has an annual turnover in excess of 500 Crores. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gone are the days when the Plaster of Paris (POP) statue with a big hairstyle and dolled-up face adorned the entrances of the old Banarasi silk shops. Over the years, the POP statues looked old and patchy and were unmanageable, say window dressers who are now happy to lay their hands on a trendier fibreglass mannequin. The pleats of a banarasi sari were only achievable by a master window dresser and some were hired for this purpose only. With the advent of hip-hop shopping malls, the bust sizes and the hip sizes are also now in line with the international markets but there is nothing much to cover for these window dressers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Although international brands have set up manufacturing units in India for manufacture of mannequins, yet the cheaper and trendier ones make their way in the buff from China and Italy. And as far as classification is concerned, it is chapter 9618 of both the Tariffs. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FM Inaugurates Income Tax Chief Commissioners Conference </font></strong></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/it_conf.jpg" alt="Legal Corner Icon" width="400" height="258" hspace="5" border="0" align="center"></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINANCE</strong> Minister Chidambaram inaugurated the 29th Annual Conference of Chief Commissioners of Income Tax and Directors General of Income Tax 2013, in New Delhi on May 28, 2013. The Minister of State for Finance, Namo Narain Meena is also seen. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The All India Conference of Chief Commissioners and Directors General of Customs and Central Excise is scheduled for July 17 and 18 2013. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Rotate Officers between Customs and Central Excise - CBEC Tells Chief Commissioners </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the transfer policy, IRS officers will, as far as possible, be rotated between the Customs and Central Excise branches every two years and adequate experience in Service Tax branch will also be ensured. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC wants the Chief Commissioners to meticulously adhere to the instructions and a compliance report to be sent to Board. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/cbec_rotatn_officers.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No. A.22013/3/2013-Ad.II, Dated: May 03, 2013 </font></strong></a></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> - Thursday's cases</font></strong></font></strong></font></p> <p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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</strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Business Support Services - Promotion of cricket or giving cricket stadium for conducting cricket matches, which is transaction involved in present case - <em>Prima facie</em> appellants have made out a strong case in their favour - Stay granted: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant is a member of the Board of Control for Cricket in India (BCCI). From the income proceeds of BCCI, the members were given reimbursement under various categories such as, TV Rights subsidy, Tournament receipts, IPL subsidy players' expenses reimbursements and subsidy for international matches. These amounts are given to promote the game of cricket and also to undertake construction of infrastructure for playing cricket within the jurisdiction of the members. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CCE & ST, Nagpur was of the view that the amounts received from BCCI by the appellant is for providing infrastructure support to BCCI for conducting tournaments and, therefore, the same is classifiable under the category of ‘Business Support Services'. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Service Tax demand of more than Rs.21 crores was raised under two SCNs on the consideration received by the appellant during the period 2006-07 to 2009-10 and 2010-11. These notices also included service tax demands raised under the category of ‘Club or Association and Advertising Services', ‘Mandap Keeper Services', ‘Renting of Immovable Property Services' and "Sale of space or time for advertising'. </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 enforcement of a debt being barred by limitation, ipso facto leads to conclusion that there is cessation or remission of liability - ruled against Revenue: HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Court are - Whether enforcement of a debt being barred by limitation, ipso facto leads to the conclusion that there is cessation or remission of liability; Whether in order to attract the provisions of Section 41(1), there should be an irrevocable cession of liability without any possibility of the same being revived; Whether section 41(1) also includes the benefit obtained by an assessee by virtue of remission or cessation of a liability and Whether there can be a cession of liability in case, where the debt has been acknowledged by the assessee company, has already been accepted by the revenue. And the verdict goes against the Revenue. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2">CX</font><font color="#FF6633" size="2"> - Denial of SSI benefit, not relating to rate of duty appeal against Tribunal's order lies to HC; Dismissing civil appeal only part appealed against gets merged; No penalty under Rules 25 or 26 if there is no <em>mens rea </em> : High Court </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> THE </strong>CESTAT had denied the benefit of SSI exemption under <em>per Notification No.8/ 2001 to </em> the assessee on the ground of using the brand name of another person. However the Tribunal set aside the confiscation and penalty on the Company as well as its directors. </font></p> <p align="justify"><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> </body> </html>