TIOL-DDT 2145 · 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 2145</font><br>
10.07.2013<br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT issues instructions on TDS Credit </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YOUR</strong> employer or whoever pays you, deducts TDS and even gives you a TDS certificate, but how are you sure that he has paid the TDS amount to the Government? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a letter, which was treated as a PIL by the Delhi High Court, Anand Prakash, Chartered Accountant submitted, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>2. The Income tax assessees filing Income Tax returns, on receipt of intimations u/s 143(1), generally are required to pay huge demands which are created because of mismatch of TDS as claimed in the Income Tax return. This is primarily because of the fact that department gives credit of TDS which stands reflected in their online computer records i.e Form No.26AS. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Whenever any Department/Govt Office/Bank deducts TDS on behalf of the assessee he has to file quarterly statement of TDS deducted, along with PAN of deductee and other details. <strong>Even if there is slightest of mismatch in reporting the particulars of deductee, the TDS deducted by the Department will not reflect in the Form 26AS and as such, no credit of TDS will be allowed to the assessee resulting in unnecessary demands and hassles of getting the rectifications done. </strong></font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. To get the rectification done, at first the assessee has to request the concerned department to file a revised statement with correct particulars of deductee and only after revised statement is filed, the same will start reflecting in the 26AS and thereafter, the rectification is possible which is a very lengthy procedure. In many cases the concerned department refuses to revise the statement. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Delhi High Court in <em>Court On its Own Motion v. UOI and Ors</em> - </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=38&filename=legal/hc/2013/2013-TIOL-207-HC-DEL-IT.htm" target="_blank">2013-TIOL-207-HC-DEL-IT</a></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> in its judgement dated 14.03.2013 directed</font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">that when an assessee approaches the Assessing Officer with requisite details and particulars, the said Assessing Officer will verify whether or not the deductor has made payment of the TDS and if the payment has been made, credit of the same should be given to the assessee. These details or the TDS certificate should be starting point for the Assessing Officer to ascertain and verify the true and correct position. The Assessing Officer will be at liberty to get in touch with the TDS circle in case he requires clarification or confirmation. He is also at liberty to get in touch with deductor by issuing a notice and compelling him to upload the correct particulars/details. The said exercise must be and should be undertaken by the Revenue, i.e. the Assessing Officer as an assessee who suffers in such cases is not due to his fault and can justifiably feel deceived and defrauded . </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board has now decided to implement the above direction and states that the manner laid down by the Delhi High Court may be one of the methods of due verification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mismatch in TDS will be the biggest IT worry during this year. How many mistakes are they going to correct? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Here is a typical case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A deductor credits the TDS of an assessee in the PAN of another assessee. There are three persons here. Let's call them A, B and C. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A deducts TDS from B and credits it into C's PAN account. Now B finds that TDS had been deducted from him but that does not figure in his Form 26AS. C finds that he is given credit for the TDS deducted from B. Both B and C approach A to get this rectified. A can ask them to go to hell, but he rectifies it. But the rectification does not figure in the FORM 26AS of B and C. B will not be able to claim the credit of TDS already deducted from him because his Form 26AS does not show the credits. C is in a more dangerous position - he can ignore the credit in his FORM 26AS, but after a few years, the AO may tell him that he has not shown the income for which TDS was deducted and paid to the department as shown in the FORM 26AS. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Should we blame the computers? Computers can do no wrong, it is the idiots who sit before it who can. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Delhi High Court in the above referred case, started with these words, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether computerisation and Central Processing of Income Tax Returns is a boon or bane is rather simple to answer, as benefits of computerisation easily outweigh and outscore any argument to the contrary. Computerization does away with human or manual element and the frailties attached and ensures transparency besides being quick and fool proof. Alas, it is a human element and frailties which have resulted in the present Public Interest Litigation. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thank God if your FORM 26AS is correct - even HE can't help if it is wrong! </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2013/instruct1305.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Instruction No. 5/2013 [F.NO.275/03/2013-IT(B)], Dated: July 08 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import duty on Sugar hiked by five percentage points </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> colossal notification 12/2012-Cus dated 17/03/2012 sees an amendment to the following 'sweet' entries- </font></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Table </font></strong></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No.</font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter or Heading or sub-heading or tariff item</font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods</font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Standard rate </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional duty rate </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Condition No.</font></strong></div></td>
</tr>
<tr>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1)</font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4)</font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5)</font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(6) </font></strong></div></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">76.</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1701</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Raw Sugar </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10%</font></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-</font></div></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3A</font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">77.</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1701</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Refined or white sugar </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10%</font></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-</font></div></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3B</font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">78.</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1701</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Raw sugar if imported by a bulk consumer</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10%</font></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">-</font></div></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3C</font></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Government has carried an amendment to the above entries inasmuch as for the entry in column 4, the entry "15%" is substituted. The conditions have come out unscathed even after the amendment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This means to say that the Import duty on Sugar has been raised by five percentage points. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The hike is welcomed by the domestic Sugar Industry which is facing the problem of plenty - over production and competition from imported sugar. With so much of sugar in stock in India, some mills are even selling the sugar at prices below the cost of production. (Fortunately there will not be any valuation issues with Central Excise). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Industry associations have been demanding a steep hike in the rate of customs duty to at least 40%. Even though the Government did not grant them that favour, the financial market did. With the rupee falling so low, it is no more profitable to import sugar and compete with the local market. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the entire Sugar scheme everybody benefits except the farmer - it seems the sugar industry in India owes Rs. 9000 Crores to the sugarcane farmers! </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_034.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 34/2013-Cus., Dated: July 8, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - DGFT Amends SION A-1442 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended SION A-1442 to widen the export product from “Ortho Tertiary Butyl Cyclohexyl Acetate” to “Ortho Tertiary Butyl Cyclohexyl Acetate and Ortho Tertiary Butyl Cyclohexyl Acetate Super”. Two new inputs are added and the quantity of two existing inputs is reduced. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn016.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT PN No. 16 (RE: 2013)/2009-2014., Dated: July 09, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - DGFT Notifies new SION A-3643 </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has notified a new SION A-3643 under Chemicals and Allied Products - in respect of the export product “Fatty Alcohol (Cetyl, Stearyl, Ceto-Stearyl)” as under:</font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr valign="top">
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export Product </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exp. Qty.</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SI. No.</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import items </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Qty. allowed (Kg.) </font></td>
</tr>
<tr valign="top">
<td rowspan="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Fatty Alcohol (Cetyl, Stearyl, Ceto-Stearyl)</font></td>
<td rowspan="2"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 Kg. </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Palm Fatty Acid Distillate (PFAD)</font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.16 Kg </font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Copper Chromite Catalyst </font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.005 Kg </font></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn017.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT PN No. 17(RE: 2013)/2009-2014., Dated: July 09, 2013</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">11.52% increase in Direct Taxes Collection in Q1 of 2013-14 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GROSS </strong>direct tax collection during April-June of the F.Y. 2013-14 is up by 11.52 percent at Rs. 1,23,993 crore as against Rs. 1,11,183 crore in the same period last year. While gross collection of Corporate taxes has shown an increase of 7.82 percent (Rs. 76,115 crore as against Rs. 70,594 crore last year), gross collection of Personal income tax is up by 18.53 percent (Rs.46,903crore as against Rs.39,569crore last year). Net direct tax collection is up by 6.44 percent and stands at Rs.89,705crore, as compared to Rs. 84,274 crore in the same period in the last fiscal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The collection of Securities Transaction Tax (STT) stands at Rs. 926 Crores. The Wealth Tax has posted a growth of 50.00 percent (Rs.48crore against Rs.32crore last year). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Compliance levels are high and so are corruption levels as per the latest report of Transparency International. </font></p>
<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Corruption Levels remain high in India </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACCORDING</strong> to a survey by ‘Transparency International', </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Corruption level has increased a lot in the last two years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Corruption is a serious problem in the public Sector. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Government is run by a few big entities acting in their own best interest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Government's actions in the fight against corruption are ineffective. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Corruption affected political parties, Parliament, Military, NGOs, Media, religious bodies, business, education, judiciary, police, and civil services. (<font color="#FF0000">What is left?</font>) </font></p>
</blockquote>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ST - remitted under accounting code for Education Cess - no cause for issuance of SCN and demanding Service Tax again</font></strong></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> yesterday's <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=18157" target="_blank">DDT</a></strong> we had highlighted the quandary faced by an assessee who had, by mistake, deposited service tax under the assessee code of their sister concern and when they approached the Commissioner to transfer the amount paid to the correct amount, they were informed that there is no procedure for such a ‘transfer' and were advised to pay ST under the correct code and file refund for the wrong payment. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The present case may provide the aggrieved assessee with some answer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Read further…</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant, a registered stock broker had during the period October, 2004 to July, 2005, discharged service tax liability under a wrong accounting code inasmuch as Service Tax was remitted under the accounting code for Education Cess. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department issued a notice for non-payment of service tax and the demand was confirmed by the lower authorities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before the CESTAT, the appellant submitted that on the subject matter the Board has vide Circular no. 58/07/2003-CX (ST) dated 20/05/2003 clarified thus - </font></p>
<blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#FF0000">Subject:- Using a wrong accounting Code for payment of Service Tax clarification- Regarding. </font></em></font></strong></p>
<p align="justify"><font color="#FF0000"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I am directed to say that a representation had been received by the Board raising apprehensions regarding using wrong Accounting Code for payment of Service Tax. Whether, amounts to having paid the Service Tax or not. </font></em></font></p>
<p align="justify"><font color="#FF0000"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The Board has examined the issue. In this connection, I am directed to clarify that the assessee need not be asked to pay the service tax again. In such cased the matter should be sorted with the P.A.O. As regards to the cases where the assessee was asked to pay service tax again, the amount thus paid may be refunded by the concerned divisional Asst. Commissioner/Deputy Commissioner. </font></em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reliance is also placed on the CESTAT decision in<em> Pepsico India Holding Pvt. Ltd. vs. Commissioner of Central Excise, Allahabad</em> <strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2010/2010-TIOL-1556-CESTAT-DEL.htm" target="_blank">(2010-TIOL-1556-CESTAT-DEL)</a></font></font></strong> wherein an identical issue was involved and the same was resolved in favour of the appellant; hence the appeal may be allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue representative fairly conceded the position. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench agreed with the submissions of the appellant and allowed the appeal. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">For what purpose are Board Circulars if the benefits thereunder are not to be extended to the Trade.</font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODkwMjA=" target="_blank">2013-TIOL-1044-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"> - 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">When main assessee pays duty with interest and 25% penalty within thirty days of SCN, no penalty proceedings against other notices: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> point of dispute is as to when the Show Cause Notice issued to the manufacturer/assessee for demand of duty along with interest and imposition of penalty, also show causes other persons (co-noticees) like Directors or employees of the manufacturer/assessee company or other persons like Transporters or Customers who have dealt with the goods in respect of which either the duty liability had not been discharged or has been discharged only partly, for imposition of penalty under Rule 26 of the Central Excise Rules, whether the Show Cause Notice would also stand concluded in respect of the co-noticees as to the matter stated therein, when the manufacturer/assessee has paid the duty along with interest and 25% of duty on penalty within 30 days of the receipt of the Show Cause Notice. </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">Capital gains - Whether when assessee transfers agricultural land to an AOP, such transfer is valid only if there is an agreement between the assessee and AOP - YES: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee's case was selected for scrutiny on the basis of information received that the assessee had sold an immovable property for Rs 39 lakh. The assessee contended that he had an agricultural land which land and land situated in the vicinity were declared as industrial estate. Assessee contended that he and other land owners having agricultural land within that declared industrial estate formed an AOP, transferred the agricultural land to AOP, whereupon AOP applied for conversion of land use and the same having been granted, the industrial land was ultimately sold by AOP. It was contended that transfer by him of a piece of agricultural land to AOP does not attract any capital gain. Steps taken to sell the industrial land will attract capital gains in the hands of the AOP. This contention was not accepted by the Assessing Officer, inasmuch as, there was no evidence to suggest transfer of any agricultural land by the appellant to AOP. </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">Appellant collecting development and maintenance fees from flat buyers to discharge payments towards outward expenses including municipal local taxes, property taxes, water charges, electric charges, revenue assessment and other mandatory charges under s.5 of Maharashtra Ownership Flats (Regulation) Act, 1963 - <em>prima facie</em> such activity undertaken in capacity of an executor is not liable to ST under category of ‘Management, maintenance or repair services' - Stay granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants are engaged in the construction of residential flats. During the sale of the flats before handing over the possession of such flats, the appellant collected the development and maintenance fees from the flat buyers as the promoter is liable to discharge payments towards outgoing expenses including any municipal local taxes, property tax, water charges, electric charges, revenue assessment or interest or any mandatory charges under the provisions of Section 5 of Maharashtra Ownership flats (Regulation) Act, 1963. On completion of construction while handing over the possession, the developer returns the balance amount, if any, after debiting the expenses. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department was of the view that the activity undertaken by the appellant comes under the category of ‘Management, maintenance and repair services'. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Thursday for the judgements</font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Thursday 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>
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