TIOL-DDT 2117 · 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 2117 </font><br>
31.05.2013 <br>
Friday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">New CE/CUS/STAX Appeal Forms to be effective from tomorrow </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> mentioned in <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTc0OTM=" target="_blank">DDT 2084</a></strong>, the Board has notified new forms for Central Excise (E.A.-3, E.A.-4, E.A.-5), Customs (C.A.-3, C.A.-4, C.A.-5) and Service Tax (S.T.-5, S.T.-6, S.T.-7)vide Notification Nos. 6/2013-Central Excise (N.T.), 37/2013-Customs (N.T.) and 5/2013-Service Tax, all dated 10/04/2013. <strong>These forms have been made effective from 1/6/2013. Therefore, all appeals filed in the Tribunal on or after 1/6/2013 would be in the new form prescribed. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thankfully, the Board has in Circular No. 969/03/2013-CX dated 11/04/2013 also mentioned that the old forms may continue to be used for a period of three months from the date of coming into effect of the new forms, i.e. till 31/08/2013 and <u><strong>from 01/09/2013 onwards, no appeal shall be filed in the old forms</strong></u>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Circular also informs that it has been decided to introduce a 21 string alphanumeric number along with the date of the Order against which appeal is being filed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the Central Excise Appeal forms, the appellant is required to give </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Assessee Code:</strong> - This is the 15 digit Permanent Account Number (PAN) - based registration number </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Location Code: </strong>- Commissionerate/ Division/ Range code (Location Code) to be mandatorily furnished by registered persons. This can be obtained from the website, <a href="http://www.aces.gov.in"><strong>www.aces.gov.in </strong></a>then to the drop-down menu - 'Central Excise', then click on ‘know your location‘, then click on the relevant 'State' and then the 'Commissionerate', 'Division' and Range. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PAN or UID:</strong>- To be furnished by non -registered persons. Unique Identification (UID) number to be furnished where PAN is not available. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For Service Tax appeals, the appellant has to furnish </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Assessee Code:</strong> - This is the 15 digit Permanent Account Number (PAN) - based registration number </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Premises Code:</strong> - 10 digit Commissionerate/ Division/ Range code (Premises Code) to be mandatorily furnished for the registered person. This ‘premises code' is available in the ST-2 Registration Certificate itself. In case of Centralized registrations the ‘premises code' of the Main Office for which Centralized registration has been taken, should be indicated. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PAN or UID:-</strong> To be furnished by/for non -registered persons. Unique Identification (UID) number to be furnished where PAN is not available. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For Customs Appeals, one has to furnish: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Port/ Location Code:</strong> Location Codes of all customs stations from where imports/ exports have taken place in respect of the appellant to be furnished. Location Codes for all the sea ports, airports, ICDs, Land Customs stations etc, are available<strong> <a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/Location_code_icegate.xlsx" target="_blank">here</a> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IEC:</strong> Importer- Exporter Code assigned by the Directorate General of Foreign Trade. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PAN or UID: </strong>To be furnished if the appellant / respondent has no IEC. Unique Identification (UID) number to be furnished where Permanent Account Number (PAN) is not available. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For all the appeals, a 21 string alphanumeric number for the order appealed against has to given. All the 139 Commissionerates and 8 Commissioners (Adjudication) have been assigned pre-figured alpha numeric codes and these has been made available <strong>now</strong>. Click<a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/alpha-numeric-codes-commtes.pdf" target="_blank"> <strong>here</strong></a> for the list. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">How many Commissionerates are there under CBEC? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REALLY</strong> a very difficult question even for the CBEC to answer!CBEC Circular No. 969/03/2013-CX dated 11/04/2013 states,<em> "All the 140 existing Commissionerates have been assigned pre-figured series and serial numbers have to be filled in for the orders passed by the Commissioner or Commissioner (Appeal) or Commissioner (Adjudication), as the case may be."</em> <font color="#FF0000">That makes it 140 Commissionerates</font>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the alpha-numeric codes published by the CBEC as shown in their website has a list of <font color="#FF0000">139 Commissionerates</font> and 8 Commissioners (Adjudication)! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What happened to one Commissionerate? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The mystery does not end there. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the information published under the RTI Act in the Departmental website :- There are 93 Central Excise & Customs Commissionerates spread across the country; There are 35 Commissionerates exclusively of Customs and Customs (preventive) spread all over the country; There are 6 Commissionerates of Service Tax. <font color="#FF0000">That makes it 134 Commissionerates</font>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sampark 2013, the Department's Directory lists 137 Commissionerates. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And then there are four LTUs which are also listed in the 139 Commissionerates for which codes are given. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what is the real number? Who knows? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT - Enhanced Monetary Limits for Single Member Bench </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CONSEQUENT </strong>to the amendment in Section 129C(4) of the Customs Act 1962, Section 35D(3) of the Central Excise Act 1944 and corresponding changes in provisions of the Finance Act 1994 by virtue of Section 86(7), the Single Member Jurisdiction stands enhanced to Rs. 50 Lacs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the CESTAT is in the process of segregation of files to identify the Single Member Bench cases in view of the enhanced monetary limit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to expedite identification and transfer of cases, the Registry requests all the stakeholders to assist the registry by way of providing list of cases bound to be affected on account of the enhanced limit. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cestat_017_2013.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT Circular in F.No. 17/CESTAT/Amendments/2013-CR,Dated: May 30, 2013. </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appeal connected papers are in <em>Marathi</em> - translation required </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RULE</strong> 5 of the CESTAT (Procedure) Rules, 1982 is titled ‘Language of the Tribunal'. Sub-Rule (1) reads -</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#FF0000">"(1) The language of the Tribunal shall be English; </font></em></font></p>
<p align="justify"><font color="#FF0000"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided that the parties to a proceeding before the Tribunal may file documents drawn up in Hindi, if they so desire; </font></em></font></p>
<p align="justify"><font color="#FF0000"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided further that a Bench may in its discretion, permit the use of Hindi in its proceedings; so however, the final order shall be in English." </font></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case, when the matter was last heard, the Bench directed the appellant to submit all the papers connected with the appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant obeyed the orders and submitted the papers but the papers were in <strong>Marathi</strong> language.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue representative sought a free translation of the same in English language and the Bench agreed. So, the appellant was directed to give English translation of the documents to the Revenue as well as to the Bench and the matter was listed for hearing again. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See
<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODg0MjU=" target="_blank"><font size="1">2013-TIOL-817-CESTAT-MUM
</font></a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Deemed Export Benefits - DGFT Clarifies </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has clarified that:</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Deemed export benefits are not available for supplies to Non-Mega Power Projects. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Para 8.2(f)(i) and para 8.2(f)(ii) of FTP are in continuation and hence to be read in conjunction. Para 8.2(f) (ii) of FTP lays down conditions in respect of supplies covered under para 8.2(f) (i) of FTP. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Benefits of deemed exports under para 8.2(f) are available only if supplies are under ICB, except for Mega Power Projects. For Mega Power projects it could be ICB or other than ICB. Para 8.3(c)(i) and para 8.4 of FTP clearly provide that if supplies are under ICB, then such supplies are exempted from payment of TED. If supplies are not under ICB, then such supplies are eligible for refund. </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2013/dgft13cir001.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Policy Circular No: 1 (RE-2013/2009-14),Dated: May 29, 2013. </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">China imposes Anti Dumping Duty on pyridine from India and Japan </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Chinese Ministry of Commerce announced imposition of provisional anti dumping duty on import of pyridine from India and Japan. Pyridine is an organic compound used as an important raw material and solvent in the production of pesticides, drugs, animal feed, food additives and other chemicals. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise Inspector in CBI Net for claiming Taxi Bill from assessee </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MANY</strong> officers in the Revenue Department sincerely believe that they are entitled for an occasional vehicle (often an Air-conditioned taxi) from the assessees and many assessees oblige - willingly or grudgingly. But some officers demand this facility as a matter of right. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Here is a case of a Goa Inspector of Central Excise demanding an A/c taxi from an assessee for his friends to go sight-seeing. He hired the taxi himself and demanded Rs. 2700 as the taxi bill from the assessee. The assessee promptly brought the amount of Rs. 2700 - with CBI in tow. CBI caught him red handed and arrested the Inspector. The Inspector will now spend a few days/months/years in jail and will be running around courts for the next ten years - all for a taxi. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT Cartoon </strong></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/ddt_2016.jpg" alt="" width="400" height="451" hspace="5" border="0" align="center"></strong></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"> – Monday'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">Service Tax </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appellant, a sugar factory renting a part of their premises to Bank, BSNL and the Department of Post for setting up a post office - Bank and BSNL are commercial organizations and if appellant has rented out their premises to them, it amounts to furtherance of business or commerce - claim of SSI benefit under notification 8/2005-ST not considered by lower appellate authority - Matter remanded: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants manufacture Sugar and other excisable goods and are registered with Central Excise department as such. They rented out part of the premises to Bank, BSNL and Post Office. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department took the view that the appellant has to discharge the Service Tax under the category "Renting of immovable property". Accordingly, a notice was inter alia issued for the period 1.6.2007 to 31.3.2010 for recovery of Service Tax of Rs.53,867/-. </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 provision made for performance warranty and other contractual liability as per AS-7 cannot be said to be an ascertained liability and accordingly not allowable as deduction - Partly allowed: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether provision made for the performance warranty and other contractual liability as per AS-7 cannot be said to be an ascertained liability and accordingly not allowable as deduction; Whether such provision is also not allowable while computing the income of the assessee u/s 115JB of the Act; Whether the disallowance u/s 14A for the years prior to A.Y. 2008-09 has to be made on some reasonable basis and Rule 8D cannot be applied to those assessment years and Whether the mobilization and other advances received by the assessee by raising progress billings cannot be said to represent income of the assessee at the time of raising the progress bills and the same therefore had no effect whatsoever on the income of the assessee, which was recognized by following consistently a well recognized method of percentage of completion. And the verdict partly favours the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">CHALR, 2004 - in a situation where urgent or immediate action is necessary, and waiting for outcome of a pre-decisional hearing will defeat public interest and obstruct or impede proper functioning of a Customs Station, it would be open to Commissioner under Regulation 21 to pass an immediate prohibitory order for a limited period and to afford to CHA, in meantime, an opportunity of being heard: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY </strong>an order dated 12 September 2012, the Commissioner of Customs (General), Mumbai under Regulation 21 of the CHALR, 2004 prohibited the Petitioner from transacting CHA business in Zones I, II and III of the Mumbai Commissionerate on the ground that its continuance was considered prejudicial to the interest of the Revenue warranting immediate action. The allegation relates to the export of cheap material such as soap stone powder in the names of exporting firms by mis-declaring it as high value bulk drugs and their intermediates.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Monday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend. </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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