TIOL-DDT 2139 · 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 2139 </font><br>
02.07.2013 <br>
Tuesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of Pets under Baggage </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTc0Njk=" target="_blank">DDT 2081</a> </strong>dated 09/04/2013 we had mentioned the following - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"<strong>BOARD</strong> has re-examined the present policy of import of two pets by passengers. It has been decided to allow import of two pet animals as baggage only to persons transferring their residence to India after two years of continuous stay abroad in terms of Baggage Rules 1998 subject to production of the required health certificate from the country of origin and examination of said pets by the <strong>concerned </strong>Quarantine Officer at this end. This new dispensation shall come into force with effect from 15th April 2013. Import of animals (pets) in general would continue to be governed by DGFT policy.</em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board's Circular No. 94/2002 - Customs dated 23.12.2002 stands modified. That circular mentioned only cat and dog. The present circular does not mention the animals."</font></em></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It appears that the said Circular has not gone down well with the cats and dogs who had already been imported into India and who were later taken abroad by their masters only to return along with them. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Simply put, the question that was begging for an answer was what should be done in respect of re-import of pets at airports. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board has received several representations from pet keepers in the matter of problems being faced in re-import of their pets. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Board says that re-import of pets is <strong>NOT</strong> covered by the Pet Circular <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTU2OTU=" target="_blank">15/2013-Cus</a></strong> dated 08/04/2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the Board clarifies that <strong>re-import</strong> of pets as baggage is allowed subject to </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">establishment of identity of pets by Customs authorities, </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>production of the required health certificate from the country of export and examination of said pets by the <font color="#FF0000"><em>concerned</em></font> Quarantine Officer at this end. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As to how the Customs authorities would establish identity of the pets being re-imported is not mentioned and how <em><strong>concerned</strong></em> should be the Quarantine Officer is also not forthcoming from the Circular. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Probably, the Customs officers should hunt for a cut on the eyebrow or a limp or for that matter go in for a retina scan or something of this kind to establish the identity of the pets that were imported in the first place. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly, the Board has a premonition that ‘difficulties' would be faced and hence have instructed the authorities <em><strong>concerned </strong></em>to bring them to the notice of the Board immediately - immediately meaning after the difficulty is experienced rather than foreseen. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meow… </font></em></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/cuscir13_025.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 25/2013 - Cus., Dated: July 1, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Receiving of Income tax returns in Aayakar Sewa Kendras (ASKs) - CBDT Instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AAYAKAR</strong> Sewa Kendras (ASKs) are functional at 132 stations all over India. Return receipt facility through Sevottam Software is also available at all these ASK Centres. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the Chief Commissioners to ensure that:</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Income tax offices where ASK is functional, all paper returns should be received in ASKs with effect from July 2013 by using Sevottam Software. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) In view of mandatory e-filing of returns in the cases of assessees having income above Rs. 5 lakh, the list of TRPs along with details of their phone number, e-mail ID etc. should be displayed prominently at the ASK Centre to enable the taxpayers to avail their facilities. Further, services of the TRPs may be made available at the locations where ASK is functional.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) (a) Sincere efforts should be made to receive the returns of Income on Sevottam software in the locations where ASK is not functional but the Sevottam Software is functional. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Efforts should also be made to receive paper returns on Sevottam Software at those stations where neither ASK nor Sevottam software is functional. </font></p>
</blockquote>
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<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">By the way, <strong>DDT</strong> hopes that the Help Centres launched by the CBEC with much fanfare have proved to be a boon for the assessees and the officers alike. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/receiving_ira.htm" target="_blank"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2">CBDT, O&M Services F.No.DGIT (Logistics)/Const.Committee/2013-14., Dated: July 1, 2013 </font></strong></font></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">M Rama Rao re-elected President of IRS Association</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MR</strong>. Metta Rama Rao, Commissioner has been re-elected as President of the IRS (C&CE) Association. <a></a>He along with 35 Executive Committee members assumed charge yesterday. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">When Tribunal has waived requirement of any pre-deposit, Commissioner(A) could not have dismissed appeal on grounds of non-compliance with provisions of S.35F - order perverse and beyond his powers</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VIDE</strong> an order dated 03/07/2012, the CESTAT had waived the requirement of pre-deposit of the service tax demand in excess of Rs.30 lakhs and remanded the matter back to the Commissioner (Appeals), to examine the issue on merits and, thereafter to pass an appropriate order in accordance with law. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the lower appellate authority vide order dated 27/11/2012 dismissed the appeal for non-compliance with the provisions of section 35F of the Central Excise Act, 1944. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Against this order, the appellant is before the CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench was infuriated and observed - </font></p>
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<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">"…When this Tribunal, which is the appellate authority for orders passed by the Commissioner (Appeals), has waived the requirement of any pre-deposit, the Commissioner (Appeals) could not have dismissed the appeal on grounds of non-compliance with the provisions of section 35F. This order of the Commissioner (Appeals) is perverse and beyond his powers."</font></em></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Not to leave things at that, the Bench directed the Registry to forward a copy of the order to the <em>Chief Commissioner of Customs & Central Excise</em>, Pune for his information and <em><strong>necessary action</strong></em>. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appeal was allowed by way of remand.</font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODg5MTc=" target="_blank"><font size="1">2013-TIOL-997-CESTAT-MUM</font></a></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"> - Wednesday'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 - 'levy of service tax on distributors/sub- distributors of films and exhibitors of movie' - Board Circular 148/2011 upheld: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> more multiplexes and single theaters on rise right from cities to moffusil, there is a huge rise in business over all. The source of concept of service tax lies in economics. Huge money is involved in film industry, coupled with host of commercial activities right from the Box Office to theatrical exhibition. Having regard to the variant modes of arrangements between the distributors/sub-distributors of films and exhibitors of movie, CBEC was justified in issuing the Circular </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It should be noted that the clarification was not suo-moto, but on account of request made by the association of exhibitors. The circular makes this aspect abundantly clear, since it states that there are also other varied modes of transaction in the industry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The apprehension of the petitioners that the assessing authority shall mechanically proceed to levy service tax is without any basis. Therefore, the revenue is right in contending that the writ petitions are pre-mature. </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 forex loss incurred in course of advancing loan to a Mauritius-based subsidiary for acquiring another company in South Africa is to be treated as capital loss - YES: 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 in case of short deduction of tax at source, the provisions of section 40(a)(ia) would not be applicable at all; Whether if there is any shortfall due to any difference of opinion as to the taxability of any item or the nature of payment falling under various TDS provisions, the assessee can only be declared as an assessee in default u/s 201 of the Act and no disallowance can be made by invoking the provisions of section 40(a)(ia) of the Act; Whether the foreign currency exchange loss incurred in the course of advancing loan to the subsidiary company for the object of acquiring a company in South Africa is to be treated as revenue loss or capital loss; Whether the loss suffered by the assessee company in the forward contract has to be allowed as business expenditure - Whether even if the claim of loss was not made in the return of income, the CIT(A) ought to have admitted the claim as an additional ground and examined the issue on merit; </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 - Reversal of CENVAT Credit before issue of Show Cause Notice - SCN does not detail grounds for imposing penalty - application of Section 11AC would depend upon existence or otherwise of conditions expressly stated in section - No penalty: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> far as present case is concerned, it is no doubt true that the assessee originally made the claim for CENVAT credit. As rightly submitted by the counsel for the assessee, the same was availed on the basis what had been stated so by the department. However, subsequently, on receipt of intimation from the department in October 2003, the assesee reversed the credit immediately thereon and paid the duty. On a reading of the show cause notice, it can be held that it is bereft of any details which are required to be considered for the purpose of levy of penalty under Rule 13(1) of the CENVAT Credit Rules 2002. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Wednesday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Wednesday 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>
<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>
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