TIOL-DDT 2135 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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 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><font color="#663399" size="3">TIOL-DDT 2135 </font><br>
26.06.2013 <br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioners not able to adjudicate - Board not able to post Commissioners </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the last conference of Chief Commissioners, it was proposed to grant powers to the jurisdictional Chief Commissioners to assign the Commissioners (Appeals), having less work under their respective charges, the powers of Adjudication. The FM directed the Board to immediately delegate the powers to the Commissioner (Appeals). The DG, HRD pointed out that as per existing laws - Section 5(3) of Customs Act and Section 12E(2) of Central Excise Act, Commissioner (A) cannot exercise the power of Commissioner (Adj.). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Board asked Chief Commissioners to re-distribute pending cases among available Executive Commissioners within their Zone to liquidate pendencies. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hyderabad and Vadodara Chief Commissioners requested for posting Commissioner (Adjudication). Even the FM agreed for this, but again DGHRDinformed that there are not enough Commissioners around so that two Adjudication Commissioners can be posted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, finally Board has decided that since it may not be possible to assign the adjudication powers to the Commissioner (Appeals) in view of the provisions contained in the Central Excise Act 1944, the issue of clearance of pendency of Adjudication may be addressed to by the Chief Commissioners by allocating the pending cases for adjudication to the Commissioners under their charge who are not Commissioners (Appeals) or by divesting a Commissioner (Appeals) with lower pendency of cases under their charge from Appeals work by allocating the Appeals cases pending with him/her to other Commissioners (Appeals) in the Zone, and, thereafter, assigning him/her the task of Commissioner (Adjudication) with the approval of the CBEC. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/action_points_cbec.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC letter in F.No. C-30013/19/2012-Ad.IVA/Ad.II, Dated June 25, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">One Commissioner under unauthorised leave, three under suspension </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNDER</strong> the CBEC, at present out of total 295 posts in the grade of Commissioner, 44 posts are vacant. Further, three officers are under suspension. Thus, the effective working strength in the grade is only 248. In addition, one officer is on unauthorized leave. CBEC informs in the same letter to Chief Commissioners mentioned above. In such a situation, the Board informs, where 16% posts in the grade of Commissioner are vacant, it may not be possible for CBEC to post extra Commissioner level officers to Hyderabad and Vadodara Zones exclusively for adjudication of pending cases. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you read<strong> DDT</strong> regularly, you will know who the Commissioner on unauthorised leave is. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/action_points_cbec.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No. C-30013/19/2012-Ad.IVA/Ad.II, Dated June 25, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Good Days Ahead - CBEC hopes to fill the posts of Commissioners soon </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Board also informs the Chief Commissioners that a proposal for promotion to the grade of Commissioners on ad-hoc basis is presently under consideration of the DOPT/ACC. After the said proposal is through, the problem of vacancies in the grade of Commissioners is likely to be fully addressed to in near future. This should be good news for those Additional Commissioners waiting for promotion and for some Commissioners who missed the transfer bus recently. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/action_points_cbec.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No. C-30013/19/2012-Ad.IVA/Ad.II, Dated June 25, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Can't Commissioner (Appeals) be entrusted with the job of Adjudication? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Board informed the Chief Commissioners that that as per Section 12E(2) of Central Excise Act, Commissioner (A) cannot exercise the power of Commissioner (Adj.). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is it correct? Section 12E actually deals with exercising powers and discharging duties of a subordinate officer by a senior officer. But Section 2(a) defines an adjudicating authority <em>as any authority competent to pass any order or decision under this Act, but does not include the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963), <strong>Commissioner of Central Excise (Appeals)</strong> or Appellate Tribunal</em>. So, the Commissioner (Appeals) cannot be an adjudicating authority. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there cannot be a bar on one person holding the post of Commissioner (Appeals) and Commissioner (Adjudication). </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/action_points_cbec.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No. C-30013/19/2012-Ad.IVA/Ad.II, Dated June 25, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Why Commissioners are not able to pass Adjudication Orders? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> rarely find a Commissioner giving an adjudication order in favour of the assessee. Why then the delay and huge pendency of orders? There are Commissioners who are yet to deliver orders for cases where the personal hearing was held more than a year ago. Will they remember anything of what was said in the PH? For them, it is not relevant in any case. The whole exercise is a big farce. Many of them don't read the Show Cause Notices they sign, they don't listen to the submissions at the time of personal hearing and they don't sign for months together the draft orders put up by their superintendents, worried whether some part of the demand is left out. Commissioners really don't have any work more important than adjudication, but unfortunately they don't have time for adjudication! They have to send innumerable reports to the Board, all their time is taken up in meetings - most of which are to discuss the size of the samosas to be served during the visit of the Member or other dignitaries who frequently
descend
on them causing huge burden on time and money. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board need not worry about posting Commissioners (Adjudication) - they should simply divest all executive Commissioners with more than ten cases pending, of their executive charge and make them Commissioners exclusively for adjudication. The regular work of the Commissionerate can be handed over to the senior Additional Commissioner and these Commissioners should be asked to clear all their pending adjudication work before they can exercise their powers as executive Commissioners. It has been proved beyond doubt that Commissionerates without regular Commissioners have surpassed their revenue targets and heavens have not fallen because there was no Commissioner. Any Commissioner who does not pass an order within ten days of personal hearing should be compulsorily transferred to Timbuktu and no request should be entertained from him for a transfer for three years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the Board is really serious, they can get the pendency cleared in the next three months, but if the Board's letter to the Chief Commissioners is another routine joke, which it will be taken as, adjudication will pile up and one day the whole system will crash under its own weight and the Himalayan Tsunami will leave no relief options. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/action_points_cbec.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No. C-30013/19/2012-Ad.IVA/Ad.II, Dated June 25, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value fixed for Areca Nuts </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has fixed Tariff Value for import of Areca Nuts. To the notification 36/2001-Cus(NT), dated August 3, 2001, one more Table has been added. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The combination of areca nut with betel leaf is called <em>tambulam</em> in Sanskrit, <em>bajjai</em> in Tulu, and paan in Hindi, Marathi, Punjabi, and Urdu. One would never have imagined the humble ‘supari' to have hogged the limelight! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the days to come, we will see fluctuation in the value of this commodity too and amending notifications issued day in and day out. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TABLE - 3 </strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.No. </font></strong></p></td>
<td><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter /Heading /Sub-heading Tariff item </font></strong></p></td>
<td><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value (US $ Per Metric Tons) </font></strong></p></td>
</tr>
<tr>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></p></td>
<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></p></td>
</tr>
<tr>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">080280 </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Areca nuts </font></p></td>
<td><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1613 </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_067.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 67/2013-Cus (NT), dated June, 25, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">External Commercial Borrowings (ECB) Policy for 3G spectrum allocation </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the present policy, the payment for spectrum allocation may initially be met out of the Rupee resources by the successful bidders, to be refinanced with a long term ECB, under the approval route, subject to the condition that ECB should be raised within 12 months from the date of payment of the final installment to the Government. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On a review it has been decided that ECB window for financing 3G spectrum rupee loans, that are still outstanding in telecom operator's books of accounts, will be open upto March 31, 2014. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir114.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 114/RBI., Dated: June 25, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Buyback /prepayment of Foreign Currency Convertible Bonds (FCCBs) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> a review and considering the developments in the global financial markets, it has been decided that the existing scheme of Buyback/Prepayment of FCCBs under the approval route which expired on March 31, 2013 will be continued till December 31, 2013 and shall stand discontinued thereafter. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir115.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 115/RBI., Dated: June 25, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ECB for Civil Aviation Sector </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> terms of paragraph 2 (iii) of the Circular No. 113 dated April 24, 2012 the External Commercial Borrowings for working capital for civil aviation sector was required to be raised within twelve (12) months from the date of issue of the circular. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That period is already over. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The RBI has reviewed the instructions and has now decided that the scheme of availing of ECB for working capital for civil aviation sector will continue till December 31, 2013. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir116.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 116/RBI., Dated: June 25, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">External Commercial Borrowings (ECB) in Renminbi (RMB) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Circular No. 30 dated September 27, 2011 Indian companies in the infrastructure sector are allowed to avail of ECB in Renminbi (RMB) under approval route subject to an annual cap of USD one billion pending further review. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is observed that the facility of ECB in Renminbi (RMB) had remained unused so far. Accordingly, the scheme of ECB in Renminbi has been reviewed and it has been decided that this scheme may be discontinued from the date of issue of this circular. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2012/rbi12cir117.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular 117/RBI., Dated: June 25, 2013 </font></strong></a></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" style="background-color:#FFFF00" span="span">The renminbi (RMB, sign: <a href="http://en.wikipedia.org/wiki/%C2%A5"><strong>¥</strong></a>; code: <strong>CNY</strong>; also <strong>CN¥</strong>, <strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Chinese.jpg" alt="Legal Corner Icon" width="17" height="18" hspace="5" border="0" align="center"></font></strong> and <strong> CN <font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Chinese.jpg" alt="Legal Corner Icon" width="17" height="18" hspace="5" border="0" align="center"></font></strong>) is the official currency of the People's Republic of China. In traditional Chinese renminbi literally means "people's currency". </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Today is International Day against Drug Abuse and Illicit Trafficking </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>26th</strong> June is observed as International Day against Drug Abuse and Illicit Trafficking. This day serves as a reminder of the need to combat the problems to society posed by illicit drugs. Drug abuse and illicit trafficking continues to have a profoundly negative impact on the development and stability across the world. Though the menace of drug destroys lives and community and generates crime in the society, the most vulnerable group is the younger generation, which is a matter of concern to all. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/cbnbldg.jpg" alt="Legal Corner Icon" width="400" height="161" hspace="5" border="0" align="center"></font></p>
<p align="center"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBN HQ at Gwalior </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Narcotics Commissioner Vijay Kalsi in a message says, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"The Central Bureau of Narcotics is a drug law enforcement agency under the Government of India, mandated with combating drug smuggling and regulating licit production of opium for medical & scientific purposes. The organization shoulders responsibility to international strategies for demand reduction and supply control of drugs. Central Bureau of Narcotics has long been campaigning to raise awareness about the dangers of drugs, such as opium, charas, ganja, heroin and cocaine. Today, however, there is an alarming new drug problem; demand has soared for the synthetic drug known as designer drugs or party drug containing Amphetamine, LSD etc. The misuse of prescription drugs also call for serious attention of chemist before dispensing such drugs to buyer. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our efforts to promote development and fight drugs and crime will be more effective if they are rooted in partnerships with young and civil societies. We need to mobilize communities to support families in protecting their children and developing the sense of belonging and formation of strong identities among children. The society shall prioritise the health and wellbeing of the youth and protect them from the availability of harmful drug."</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner adds,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“<strong><em>No action today means no cure tomorrow</em></strong>. O<em>n this occasion, I solicit the participation of people specially youth of today in generation of awareness amongst the people to understand the ill effects of drug abuse and think health, happiness and over all development of nation.” </em></font></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/narcotics_commissioner_message.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Narcotics Commissioner's Message </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Rupee Quote </font></strong></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHENEVER </strong>you feel you are low in life, remember that somewhere in the world there is a Rupee which is almost always at an “all time low” - Anon. </font></em></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><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">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods cleared on payment of duty by two manufacturers from same factory premises - Duty again demanded from main manufacturer - Stay granted: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DUTY </strong>has been demanded by the Revenue on the sole ground of difference between the quantity of the granulated slag shown in their Annual Operational Statistical Report and the quantity shown in the monthly ER-I Return filed by the Applicant during the period from July, 2004 to March, 2008. There is no other evidence of removal of goods from the factory, except the difference in the said two statements. It is not in dispute that M/s. ACC, DCSL is situated with in the same factory premises of the Applicant, as is appearing in the agreement dated 22.06.2006. Besides, it is also not in dispute that M/s. ACC, DCSL, cleared the granulated slag on payment of duty. </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 payment of one time custodian charges to NSDL pursuant to statutory obligation upon assessee to enter into agreement with depository for dematerialization of securities can be allowed as revenue expenditure - YES: 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 payment of one time custodian charges to NSDL pursuant to statutory obligation upon the assessee to enter into an agreement with the depository for dematerialization of securities can be allowed as revenue expenditure; Whether, if, the assessee has taken over the liability of the shareholders as a goodwill measure and has paid the said amount as one time custody charges, the said expenditure is not allowable u/s 37(1) of the Act; Whether such expenditure is effective in reducing the administrative expenses of the assessee on the account of handling physical share certificates and Whether such expenses incurred squarely falls within the phrase “laid out or expended wholly and exclusively for the purpose of business”. And the verdict partly 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">Commercial or Industrial Construction Service - Explanation inserted in 2010 is applicable only prospectively - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant undertook construction of a project known as World Trade Park, a commercial complex. The assessee received advance / application money from the persons desirous of purchasing the space/shop/office. Revenue, on the assumption that assessee is liable to remit service tax under the taxable head "commercial and industrial construction" defined under Section 66(25) (b) read with Section 65(105)(zzq) of the Act, issued a show cause notice culminating into the adjudication order. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The adjudicating authority concluded that though title to the property in the office/space/shop in the WTP had not passed to the prospective buyers, since advances were received and constructions made by the assessee (by employing a construction agency), the assessee must be held to have rendered, a taxable service, Commercial and industrial construction service. <a></a></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 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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
</body>
</html>