TIOL-DDT 216 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#6633CC" size="3">TIOL-DDT 216</font><br> 05 10 2005<br> Wednesday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax on Goods Transport – Board issues fresh clarifications</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The confusion with Service Tax on goods transport continues and the Board is understood to have issued fresh clarifications yesterday on eligibility of cenvat credit on service tax paid by a receiver of the service when he is neither a manufacturer nor service provider. In another week the Right to Information is to come into force but the CBEC apparently wants to enjoy its freedom to conceal vital information from its stake holders till the last moment. Some very important clarifications have been given but the CBEC in its wisdom has chosen not to make the clarifications public. The clarifications are contained in a letter addressed to a Chief Commissioner and copies endorsed to all Chief Commissioners and Commissioners and DGs but not to the public who are the victims of the Government’s clarifications. It is tragic that the Board is so shy of making public clarifications especially a week before the Right to Information becomes effective. It is not as if the clarification is such a secret and classified document of the government that it has to be sent only to the Chief Commissioners. It has to ultimately reach the tax payer and then why so much of hiding? TIOL will get you full details of the clarification tomorrow.</font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Interpretative rules cannot be applied for denying exemption</b> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The point of dispute is whether in cases where computer casing/chassis and power supply unit were imported in a form not fitted together as an assembly, but separately in the same consignment, the benefit of Notification No. 21/2002-Cus., dated 1.3.2002, (vide S.No. 276) can be denied by applying rule 2(a) of the General Rules for the Interpretation of the First Schedule (GIR).<br> <br> The issue was discussed in the Chief Commissioners” conference and the Chief Commissioners noted that there are several rulings of CESTAT that for the sake of denial of the benefit of a notification, Rule 2 (a) cannot be invoked.<br> <br> Board has accepted the decision of the Conference and has clarified that the goods have to be classified in the form as presented and rule 2 (a) of the GIR cannot be applied for the sake of allowing/disallowing the benefit of a notification, unless the exemption notification is based on classification of the item under a particular heading of the Customs Tariff. For the purpose of classification, Rule 2(a) of the General Rules of Interpretation could be applied.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2005/cuscir05_039.htm">CIRCULAR NO. 39/2005-Cus., Dated: October 3, 2005</a></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>BCCI stuck with 22 Cr demand of Service Tax </b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The big question hanging over the Board of Control for Cricket in India (BCCI) is not the Dalmia- Pawar power struggle, or the Captain vs Coach email leak. There are more serious fiscal issues confronting the Board. They are stuck with a Service Tax demand of over 11 Crores and an Income Tax demand of over 22 Crores. No provision has been made for these liabilities in the BCCI’s annual accounts? Why? You can always continue litigation.</font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>A dress code for CAs</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If lawyers can have a professional dress, though very complicated and most unsuited for a tropical country like India, why not chartered accountants? There was a time when CAs used to appear before Income Tax Officers in buttoned up coats. But with the proliferation of CAs and ITOs, this unofficial dress code gave way to very casual and flashy dresses. What’s in a dress when other things matter more? Now the Institute of Chartered Accountants proposes to prescribe a dress code for its members according to the vice-president of the Institute, T N Manoharan. He said that a proposal had been sent to the government to allow the chartered accountants to practice in Central excise and service tax fields also. Where is the restriction Sir? You are welcome! Incidentally why is it that lawyers do not wear their professional dress while appearing before authorities lower than the Tribunal? </font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>No Deputation for IRS officers?</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IRS officers are worried about a recent direction of the Ministry that they will not be allowed to go to other departments on deputation. They see it as an attempt by the IAS lobby to restrict their chance to go on deputation to other departments. But why should a well trained and experienced revenue officer go to another department? For far too many reasons than you can think of. Though the other service officers do not like the IAS, the fact remains that the IAS is more powerful than all of them put together. Recently a Police Commissioner broke protocol and stood ahead of an IAS officer while receiving the Prime Minister. The Commissioner believed he had done nothing wrong as the IAS officer was junior to him. But the IAS was not impressed. You know what happened? The Police Commissioner got transferred. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666">Until Tomorrow with more DDT</font></b></font></p> <p align="justify"><font color="#FF6666"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. <br> <br> Mail your comments to</font></b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>