TIOL-DDT 2138 · 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 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 2138</font><br>
01.07.2013<br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cadre Review in CBEC - Proposal sent to CoS</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> had on 21.06.2013 reported that the DG, HRD's website shows, "<font color="#FF0000"><strong>No Cadre Restructuring Found"</strong></font>. Now it is found from the site "<font color="#FF6633"><em>Cadre Restructuring proposal has been submitted to COS upon approval from DoPT, Deptt. of Expenditure and Hon'ble Finance Minister</em></font>". </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Values for Gold & Silver decreased</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has decreased the Tariff Value of Gold & Silver. There are changes in the Tariff value of various oils but Poppy seeds value remains adamant and refuses to budge.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The rates as on 27.06.2013 and with effect from 28.06.2013 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="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) <br>
from 27.6.2013 </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) <br>
from 28.6.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></font></p></td>
<td valign="top" bgcolor="#FBEFE6"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </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">852 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">854 </font></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<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">859 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">859 </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">856 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">857 </font></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<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">866 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">875 </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">869 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">878 </font></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<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">868 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">877 </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">1043 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1020 </font></p></td>
</tr>
<tr bgcolor="#FBEFE6">
<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">3930 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3917 </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 size="2" face="Verdana, Arial, Helvetica, sans-serif">4395 (no change) </font></p></td>
</tr>
</table>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 2</strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FFFF00">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 27.6.2013 </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 28.6.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<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">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><font size="2" face="Verdana, Arial, Helvetica, sans-serif">421 per 10 grams </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">401 per 10 grams </font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<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">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><font size="2" face="Verdana, Arial, Helvetica, sans-serif">606 per kilogram </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">604 per kilogram </font></p></td>
</tr>
</table>
<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 bgcolor="#FFFF00">
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value (USD Per Metric Tons) from 27.6.2013 </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value (USD Per Metric Tons) from 28.6.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) </font></strong></font></p></td>
<td valign="top"><p><font color="#0000FF"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<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">080280 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Areca nuts </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1613 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1613 (no change) </font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_069.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 69/2013-Cus (NT), Dated: June 28, 2013</strong></font></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT rescinds Circular No. 2 on application of Profit Split Method </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has noticed that Circular No. 2/2013 dated 26.3.2013 regarding application of Profit Split Method appeared to give the impression that there was a hierarchy among the six method listed in section 92C and that Profit Split Method (PSM) was the preferred method in the case involving unique intangible or in multiple interrelated international transactions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, CBDT has withdrawn the Circular No. 2 with immediate effect. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2013/it13cir05.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Circular No. 5/2013, Dated: June 29, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT
amends Circular No 3 on conditions relevant to identify development centres
engaged in contract R&D services with insignificant risk </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has laid down guidelines for identifying the Development Centre as a contract R&D service provider with insignificant risk. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Assessing Officer or the Transfer Pricing Officer, as the case may be, shall have regard to the guidelines and shall take a decision based on the totality of the facts and circumstances of the case. In doing so, the Assessing Officer or the Transfer Pricing Officer, as the case may be, shall be guided by the conduct of the parties and not merely by the terms of the contract. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Assessing Officer or the Transfer Pricing Officer, as the case may be, shall bear in mind the provisions of section 92C of the Act and Rule 10A to Rule 10C of the Rules. He shall also apply the guidelines enumerated above and select the ‘most appropriate method'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In his 2013 Budget speech, the FM stated, "<em>The Rangachary Committee was appointed to look into tax matters relating to Development Centres & IT sector and Safe Harbour rules for a number of sectors. We have issued a circular covering IT sector exports and will shortly issue a circular covering Development Centres. Rules on Safe Harbour will be issued after examining the reports of the Committee, the last of which is expected by 31.3.2013.</em>" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee under the Chairmanship of Shri N Rangachary, former Chairman, CBDT, submitted its<strong><em> <a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/FirstReport_30062013.pdf">First Report on Taxation of Development Centres and IT Sector</a> </em></strong>in September 2012. Based on the Committee's report and after carefully considering the matter, the CBDT issued circular No.2/2013 and circular No.3/2013 on 26th March, 2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received from the IT industry on the two circulars. It has been pointed out that the R&D Centres set up by foreign companies can be classified into three broad categories based on functions, assets and risk assumed by the centre established in India and these are: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Centres which are entrepreneurial in nature; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Centres which are based on cost-sharing arrangements; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Centres which undertake contract research and development. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been represented that there is a need for providing maximum clarity on the principles for distinguishing each of the three categories and identifying the most appropriate method for determining the arm's length price/transfer pricing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Responding, the CBDT has rescinded the Circular No. 2 and amended the Circular No.3. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2013/it13cir06.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Circular No. 6/2013, Dated: June 29, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Kunio Mikuriya re-elected Secy General of WCO </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> was exactly five years ago, on 1.7.2008, <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=NzUxNg==" target="_blank">DDT 898</a></strong>, reported the election of Dr. Kunio Mikuriya of Japan as the Secretary General of the World Customs Organisation. On 29th June 2013, 179 Member Nations of the WCO unanimously elected Dr. Mikuria for a second five-year term starting 1st January 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before taking up his position as Secretary General of the WCO in 2009, Dr. Mikuriya spent seven years as the WCO's Deputy Secretary General, leading efforts to coordinate the work of the Secretariat with international organizations, such as the World Trade Organization (WTO), the World Bank and the International Monetary Fund (IMF), as well as with the private sector. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prior to joining the WCO, Dr. Mikuriya worked for Japan's Ministry of Finance for 25 years, occupying a variety of senior posts, which gave him broad experience in issues concerning Customs, trade development, budgetary matters and financial policies, including expertise in WTO international trade negotiations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kunio Mikuriya has a Law degree from the University of Tokyo and a Ph.D from the University of Kent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Writing for us in April 2010, he said, <em>On the occasion of Taxindiaonline's 10th Anniversary, as Secretary General of the World Customs Organization (WCO), I am happy to share some thoughts with users and visitors to your online portal on some of the international Customs community's revenue related activities and priorities .</em> -<strong> <a href="http://www.taxindiainternational.com/printContent.php?qwer43fcxzt=Mg==&flag=2" target="_blank">Revenue Management in the Future</a></strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Here Dr. Mikuriya is seen with the then Revenue Secretary R. S. Gujral and CBEC Chairman Dutt Mazumder </font></p>
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</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">New form ST-3 to be available this month </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VIDE</strong> order no. 3/2013-ST dated April, 23, 2013, the CBEC had extended the last date of e-filing of Service Tax Return (ST 3) for the period October, 2012 to March, 2013 from 25th April to 31st August, 2013. The circumstances of a special nature which warranted the above extension was mentioned as follows - </font></p>
<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">"The Form ST-3, for the period from 1st October 2012 to 31st March 2013, is expected to be available on ACES around 31st of July, 2013". </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board had also informed on its aces website that the exact date of the availability will be announced later. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the month of July has risen on the horizon, <strong>DDT</strong> felt it prudent to remind the Board of its commitment to the Trade so that things are not left to the last minute as earlier. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Argument
that respondent is a service receiver and hence is not eligible for centralized
registration is meaningless and defeats objective of registration </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> <em>CCE, Pune-III</em> is in appeal against an order passed by the<em> CCE(A), Pune-III</em>. Vide the impugned order the appellate authority had allowed the facility of centralized registration to the respondent on the ground that in respect of GTA service, the recipient of the service has to discharge tax liability and if the recipient maintains centralized accounting system in the head office, such office can be allowed to be registered with the department for the purpose of discharge of service tax liability. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue's grievances are as follows -</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ the respondent's request for centralized registration was rejected vide letter dated 16/12/2005 and since this letter is not an appealable order the appellate authority should not have entertained the appeal;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ as per rule 4(2) of the Service Tax Rules, 1994, <em><strong>only service providers</strong></em> are eligible for centralized registration subject to certain conditions and <em><strong>not service recipients</strong></em>. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The respondent chose to remain absent probably because they had obtained what they had sought and the matter is six years old. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench observed that as regards the first ground, the law is already settled by the decision of the CESTAT in the case of <em>Bhagwati Gases Ltd. </em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2008/2008-TIOL-879-CESTAT-DEL.htm" target="_blank"><font size="1">2008-TIOL-879-CESTAT-DEL</font></a></strong> inasmuch as if a letter conveys the ground of rejection and also the rejection, the same can be treated as an order eligible for appellate remedies. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the second ground raised in appeal, the Bench had the following to say - </font></p>
<blockquote>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"5.2 As regards the second ground that the respondent being a service receiver is not eligible for centralized registration, this argument is meaningless and defeats the objective of registration. The purpose of registration in indirect tax laws is to identify the tax payer. In this particular case, the tax payer or the person liable to pay tax is the receiver of the service and for making the payment of service tax, the respondent is required to get registered with the department. If that be so, we do not understand how the benefit of centralized registration cannot be granted, if he satisfies the conditions for such centralized registration. In the instant case there is no dispute that the respondent is maintaining centralized accounts in their head office. Therefore, the respondent is rightly entitled to centralized registration."</font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Holding that there is no infirmity in the order passed by the lower appellate authority, the Revenue appeal was dismissed as being devoid of merits. </font></p>
<p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODg5MDM=" target="_blank">2013-TIOL-990-CESTAT-MUM</a></font></font></strong></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"> - Tuesday'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">Appellant receives consideration from various concessionaires for display, demonstration and sale of products from retail stores operated by appellant - there is per se no renting of space - <em>prima facie</em> activity falls under category of Business Support Services as appellant seems to provide both infrastructural support services and accounting and processing of transactions - Pre-deposit ordered of Rs.1.70 Crores: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellants are in the business of operating and running retail stores where goods of various brands, varieties, description, etc. are sold under one roof. They grant concession to various concessionaires for the display, demonstration and sale of the products from the retail stores operated by the appellant. The consideration for the concession is received as a percentage of the value of the goods sold subject to a minimum amount. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department was of the view that the said service rendered by the appellant falls within the category of ‘Business Support Services' (BSS in short) and accordingly, a show cause notice dated 22-10-2009 was issued to the appellant demanding service tax of Rs.3,44,45,034/- [on a consideration of Rs. 27,86,81,505/- received during 1-5-06 to 31-5-07] along with interest thereon and also proposing to impose penalties under the provisions of Finance Act, 1994. </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 adjournment should necessarily be granted in a case where counsel for assessee has certain reservations against Judicial Member of Bench and a representation was pending before ITAT President - NO: 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 adjournment should necessarily be granted in a case where the counsel for the assessee has certain reservations against the Judicial Member of the Bench and a representation is pending before the ITAT President; Whether when a contempt case is pending before the High Court on a reference from the Judicial Member, such Member should not hear cases and grant adjournment merely because a good number of cases before the Bench are represented by the Advocate and the CA accused of contempt; Whether when the counsel for the assessee does not want to represent the case before a particular Bench, the assessee should be hiring the services of other professionals to represent them before the Bench; Whether the counsel of a taxpayer can choose his own judicial member in the Bench; Whether seeking repeated adjournments on the ground of a complaint being lodged against the Judicial Member amounts to holding the Tribunal to ransom and Whether such behaviour of an advocate amounts to de facto boycott of the judicial proceedings. And the verdict goes against the assessee's counsel. </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">CE - Shortage of final products - once assessee has paid duty on same and penalty of 25% within 30 days of issuance of show-cause notice there is no force in department's appeal that being a case of clandestine removal 100% penalty should be levied: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> is an ‘interesting' Revenue appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the officers of the anti-evasion wing visited the factory of the appellant and calculated the total stock of M.S ingots, it was found to 4.596 M.T. A shortage of 32.174 M.T. was detected. Since respondent failed to explain the reason for said shortage, it was concluded by the revenue that short found material has been cleared surreptitiously with intent to evade payment of duty. The respondents deposited duty of Rs.52,493/- on 4/11/2009. Later, they also deposited 25% of the penalty within 30 days of the issuance of the SCN. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Tuesday for the judgements</font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tuesday 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>
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