TIOL-DDT 2126 · 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 color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></strong></font><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 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></strong></font></strong></font></strong></font></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></strong></font></strong></font><font color="#663399" size="3">TIOL-DDT 2126 </font><br> 13.06.2013 <br> Thursday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Telegram services to be shut down from July 15 </font></strong></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>daakiya daak laaya - (4) <br> daak laaya - (2) <br> khushee kaa payaam kahee dardanaak laaya <br> daakiya daak laaya...</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> daakiya thankfully remains but his services are nowadays restricted to delivering the odd letter sent by government departments, dividend warrants, the insurance premium intimation, small time magazines, and the odd parcel or telegram, in villages that is. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">BBM, Smart phones, emails, MMS and SMS are in vogue these days. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To survive, Post-offices had to undergo a transition. And they did it by selling gold coins, insurance policies, water purifiers and even Assam tea. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As for telegrams (the new generation may ask, what is a telegram?) they seem to have dropped out of the communication race long ago but were being continued for posterity or otherwise. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is reported that the humble telegram service has got the axe with the BSNL deciding to discontinue the 160-year-old telegraph service from July 15. Once upon a time, the main source of quick and urgent communication was the telegram and this service had delivered innumerable happy and sad news to people all over the country as rightly mentioned in the lyrics of the Hindi song from the 1977 film <em>Palkon ki chaaon mein</em>.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems that BSNL had asked the government to support the service as it was not commercially viable and the Government said the BSNL board should decide on it. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And so, the BSNL has decided to discontinue the 160 year-old Telegraph Service. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is it so easy a decision to take? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By the way, let us all send the last of the telegrams - we prefer the following Greeting Code 31 - <font color="#FF0000"><em><strong>Wish you a happy retired life.</strong></em></font></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service of order - Postal authorities weeding out Speed Post records - benefit of doubt to be extended to appellant - appeal not time-barred </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AGAINST</strong> an O-in-A passed by the Commissioner(A) dismissing their appeal on the ground of time-bar, the appellant is before the CESTAT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They submit that even though the order-in-original is dated 29/03/2010, they did not receive the order thereafter and subsequently received it on 11/02/2011 in person. And on 19/04/2011 they have filed the appeal before the lower appellate authority. Inasmuch as since they have filed the appeal within the period of three months from the date of receipt of the order, as prescribed in law, the dismissal of their appeal is not sustainable. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">During the earlier hearing, the Bench had directed the department to produce evidence towards service of the order dated 29/03/2010 to the appellant. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In response to the said direction, the jurisdictional Commissioner informed the Bench that <font color="#FF0000">they had sent the order by speed post; however, the postal authorities have informed that the record of the speed post article is not available since the preservation period of old records are over</font>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT observed - </font></p> <blockquote> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"…In these circumstances, we have to give the benefit of doubt to the appellant and hold that service of the order was not completed earlier and the same was completed only on 11/02/2011 when the order was handed over to the appellant in person. </em></font></p> <p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">4. In this view of the matter, when the appeal has been filed within three months from the date of receipt of the order, the dismissal of appeal on account of time-bar is not sustainable in law. Therefore, we remand the matter to the lower appellate authority to decide the case on merits and pass an order in accordance with law." </font></em></p> </blockquote> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Even otherwise, service by "Speed Post" has been legalized <em><strong>only now</strong></em> by the Finance Act, 2013 by making insertions in section 37C of the CEA, 1944. </font></p> <p align="justify"><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=ODg2MzE=" target="_blank">2013-TIOL-892-CESTAT-MUM</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">New Exchange Rates</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified new exchange rates of Canadian Dollar, Euro, Pound Sterling, Swiss Franc and Japanese Yen effective from <strong>13 .06.2013</strong> for export and imported goods. In the past one week, the Central government has come out with the third notification to revise the exchange rates of select currencies and the earlier notifications are <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_058.htm" target="_blank">58/2013 -Cus</a> & <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_059.htm" target="_blank">59/2013 -Cus</a></strong> respectively. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly, in terms of notification <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_059.htm" target="_blank">59/2013 -Cus</a> </strong>the US dollar still remains at Rs.56.85 (for imported goods) and Rs.55.85 (for exported goods) although the Indian Rupee is hovering around Rs.58 for a dollar.</font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Can we not formulate some other method to adopt the exchange rate for a particular day rather than keeping on issuing notifications day in and day out because there is always a tendency to fumble while adopting the cut and paste technique?</font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_060.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 60/2013-Cus dt. June 12, 2013</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT authorizes two more laboratories for certification/grading of diamonds </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNDER </strong>para 4A.2.1 of the Foreign Trade Policy dealing with "<strong>Export of Cut & Polished Diamonds for Certification/Grading & Re-import</strong>" two additional authorized laboratories for certification/ grading of diamonds of 0.25 carat and above are added viz. International Gemological Institute (IGI) - Antwerp, Belgium & International Gemological Institute (IGI) - Hong Kong. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not019.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 19 (RE-2013)/2009-2014, Dated: June 12, 2013 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of Goods & Services by SEZ - Realization & Repatriation period </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Reserve Bank of India has decided that the units located in SEZs shall realize and repatriate, full value <em><u>of goods/software/services</u></em>, to India within a period <u><em>of twelve months</em></u> (earlier there was no time limit) from the date of export . Any extension of time beyond the above stipulated period may be granted by Reserve Bank of India, on case to case basis. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir108.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Circular 108 Dated: June 11, 2013</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Online Payment Gateways - Enhancement of the value of transaction </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AD</strong> Category I banks were permitted to offer the facility to repatriate export related remittances by entering into standing arrangements with Online Payment Gateway Service Providers (OPGSPs) for export of goods and services for value not exceeding USD 3000 per transaction, subject to the conditions stipulated therein.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The said instructions have been reviewed in the context of requests received for suitable enhancement of the value of the transaction. Accordingly, it has now been decided to increase the value per transaction from USD 3000 to USD 10,000 for export related remittances received through OPGSPS. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The revised limit will come into force with immediate effect. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir109.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI Circular 109 Dated: June 11, 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"> - Friday'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">ST - Appellant, a co-operative bank, taking possession of factories in terms of SARFAESI Act and leasing out same - lease rents received are prima facie liable to Service Tax as transaction falls within the definition of "Renting of Immovable Property" - as amount already paid, though under protest, same is sufficient for hearing appeals - Stay granted: CESTAT.</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant, Maharashtra State Co-operative Bank Ltd. is engaged in rendering of Banking and financial services. The appellant had given a loan to Raje Vijay Singh Dafale Sahakari Sakhar Karkhana Limited and Tasgaon Taluka Sahakari Sakhar Karkhana Ltd. Both of them defaulted in payment of their outstanding dues. </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">IT - writ - Sections 11, 12A, 12AA, 142(2), 143(2), 147, 148 - reasons to believe - Whether an assessment order can be declared as void in case it does not mention any detail about core issue to be adjudicated - Whether an assessing authority on basis of some other authority's observation, believe that assessee's income has escaped assessment and issue notice of reassessment u/s 147.</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong>, a trust, has challenged the legality and validity of notice issued u/s 148 as also sought a writ in the nature of certiorari for quashing the order whereby the objection against the aforesaid notice had been dismissed. A further writ of mandamus directing the Addl. CIT to drop the reassessment proceedings against the petitioner for the AY 2006-2007 had been sought for. </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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">CX - Revenue alleging that manufacturers were required to supply goods at Nil rate of duty as per Notfn 44/2001-CE (NT) but since they paid duty, same cannot be availed as CENVAT Credit as it has to be treated as deposit - Notfn. and connected rules do not require appellant to necessarily clear goods duty free - overall there is no loss to Revenue as credit is being taken of duty paid - Appeals allowed: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> facts of the case are the appellants are holder of Advance Licence/Advance Authorization. They are clearing their final products in the domestic market as well as export. Under the Advance License/Advance Authorization Scheme, the appellants either imports the raw material or procures it from local manufacturers under Advance Release Order (ARO) or Invalidation letter issued by DGFT, against the said License/Authorization. </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 align="justify"><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>