TIOL-DDT 2169 · 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 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="3">TIOL-DDT 2169 </font><br>
14.08.2013 <br>
Wednesday</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></p>
<p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2">FAQ on VCES, 2013 now available </font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=18406" target="_blank">DDT 2167</a> </strong>we had asked <strong><font color="#006600">Where is the FAQ Booklet?</font></strong> The FAQ is now made available by CBEC </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are, however, a bit perplexed with the disclaimer that welcomes one after opening the FAQ. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It reads – </font></p>
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<td><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DISCLAIMER </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Information is being made available in this booklet purely as a measure of public facilitation. <font color="#FF0000">The provisions of the Finance Act 1994, rules made thereunder, notifications and circulars or instructions of the </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF0000">Boards</font></font> </font><font color="#FF0000"> shall prevail over the answers provided in this booklet in case of any contradiction</font>. While every effort has been made to ensure that the information contained in this booklet is up-to-date, the Central Board of Excise and Customs does not hold<font color="#FF0000"> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF0000"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">itselfs </font></font></font></font>liable for any consequences, legal or otherwise, arising out of the use of any such information. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For complete information please refer to the Finance Act, 1994, rules made thereunder and notifications and circulars. For further information you may contact jurisdictional Service Tax office. </font></p></td>
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<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Apart from the unintended spelling mistakes, it is not understood as to why the Board is eager to say that the provisions of the FA, 1994, rules made thereunder, notifications and Circulars or instructions of the Boards [ <strong><font color="#0000FF">Do we have two Boards?</font></strong> ] shall prevail over the answers provided in the booklet when the fact of the matter is that the FAQ has 23 Q&As and these are the sum total of those appearing in the Board Circulars <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2013/sercir169.htm" target="_blank">169/4/2013-ST</a> & <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2013/sercir170.htm" target="_blank">170/5/2013-ST</a> and which reality is also admitted at the end of the FAQ. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Probably, the Board knows that it is treading on thin ice. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=359&filename=vces_index.htm" target="_blank"><strong>The FAQ </strong></a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold & Platinum duty rate increases by Two percentage points; Silver by Four percentage points</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is an all-out war against Gold imports. The festival season and the marriage season are around the corner and the common man still continues his fascination for the yellow metal in spite of what the Finance Minister preaches. Seizures of smuggled gold at airports and that too in Kilograms is an everyday affair. Still there are passengers ready to take the risk - <strong><em>concealing it in their undergarments or body parts which are covered by these undergarments</em></strong>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The government this time around had made their intentions clear - that they would be increasing the import duty on gold and other luxury items. It was only a matter of time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Yesterday was the day</strong> the Government hiked the Customs duty and Additional duty on certain items of Gold& Silver & Platinum. The new rates are applicable from 13th August, but the notification was available only in the evening. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In fact, PTI had carried the following news item on its website - </font></p>
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<td><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Changes in duties on gold, silver to be announced later in day </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">12.52 HRSIST: Finance Minister P Chidambaram today said that he would come out with changes in the import duty of gold, silver and other non-essential items later in the day. On when the government will table changes in the tariffs, he said, "later in the afternoon". </font></p></td>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, one may argue that in any case these enhanced duty rates were not in vogue in the<em><strong> morning and early afternoon</strong></em>.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Take a look at the amendments on the Customs & Central Excise side -</font></p>
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<td valign="top" bgcolor="#FF926C"><p align="center"><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. in Notification No. 12/2012-Cus </font></strong></p></td>
<td valign="top" bgcolor="#FF926C"><p align="center"><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">Description </font></strong></p></td>
<td valign="top" bgcolor="#FF926C"><p align="center"><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">previous rate </font></strong></p></td>
<td valign="top" bgcolor="#FF926C"><p align="center"><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">hiked rate </font></strong></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">116 </font></strong></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">*Gold ores and concentrates for use in the manufacture of gold </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">318 </font></strong></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">*Gold dore bar, having gold content not exceeding 95% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">320 </font></strong></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">*Silver dore bar having silver content not exceeding 95% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">321 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold bars, other than tola bars, bearing manufacturer's or refiner's engraved serial number and weight expressed in metric units, and gold coins having gold content not below 99.5%, imported by the eligible passenger </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">322 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form including ornaments, but excluding ornaments studded with stones or pearls, imported by the eligible passenger </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">323 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold bars, other than tola bars, bearing manufacturer's or refiner's engraved serial number and weight expressed in metric units, and gold coins having gold content not below 99.5%, other than imports of such goods through post, courier or baggage. </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">324 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form including silver coins having silver content not below 99.9%, other than imports of such goods through post, courier or baggage. </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">328 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Platinum </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% </font></p></td>
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<p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">*Additional Duty </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly, CE Notification No. 12/2012-CE dated 17.3.2012 is also amended to hike the excise duty. </font></p>
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<td valign="top" bgcolor="#FF926C"><p align="center"><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No. in Notification No. 12/2012-CE </font></strong></p></td>
<td valign="top" bgcolor="#FF926C"><p align="center"><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">Description </font></strong></p></td>
<td valign="top" bgcolor="#FF926C"><p align="center"><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">previous rate </font></strong></p></td>
<td valign="top" bgcolor="#FF926C"><p><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">hiked rate </font></strong></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">189 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold bars, other than tola bars, bearing manufacturer‘s engraved serial number and weight expressed in metric units manufactured in a factory starting from the stage of- </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) (a) Gold ore or concentrate; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Gold dore bar; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Silver dore bar </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p> </p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7% </font></p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p> </p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9% </font></p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">190 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver manufactured in a factory starting from the stage of- </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Silver ore or concentrate; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Silver dore bar; or </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Gold dore bar. </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">191 </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The following goods manufactured or produced during the process of copper smelting starting from the stage of copper ore or concentrate in the same factory namely:- </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) gold bars, other than tola bars, bearing manufacturer‘s or refiner‘s engraved serial number and weight expressed in metric units and gold coin of purity not below 99.5%; </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Silver in any form, except silver coins of purity below 99.9% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p> </p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
7% </font></p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% </font></p>
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<td valign="top" bgcolor="#DFEAF4"><p> </p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
9% </font></p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8% </font></p></td>
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<td valign="top" bgcolor="#DFEAF4"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">191A </font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver produced or manufactured during the process of zinc or lead smelting starting from the stage of zinc or lead ore or concentrate. </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4% </font></p></td>
<td valign="top" bgcolor="#DFEAF4"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8% </font></p></td>
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<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_041.htm" target="_blank">Notification No. 41/2013-Cus, Dated: August, 13, 2013</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2013/etariff13_25.htm" target="_blank">Notification No. 25/2013-CE, Dated: August, 13, 2013 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mega Power Projects exemption - amendments made, new project included </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SERIAL</strong> no. 507 of Notification <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_012.htm" target="_blank">12/2012-CUS</a></strong>, dated March, 17, 2012 grants exemption as under - </font></p>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">507. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9801 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods required for setting up of any Mega Power Project specified in <font color="#FF0000">List 32A</font>, so certified by an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power before the 19th day of July, 2012, that is to say, </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) a thermal power plant of a capacity of 700MW or more, located in the States of Jammu and Kashmir, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura; or </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) a thermal power plant of a capacity of 1000MW or more, located in States other than those specified in (a); or </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) ahydel power plant of a capacity of 350MW or more, located in the States of Jammu and Kashmir, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura; or </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) ahydel power plant of a capacity of 500MW or more, located in States other than those specified in clause (c) </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nil </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">93 </font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">List 32A referred above lists 111 mega power projects. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Government has made some changes to these as below - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Entries of this list viz. 45 & 46 have undergone a substitution inasmuch as for the figures, letters and words "2x660= 1320 MW" at serial no. 45, the figures, letters and words "2x800= 1600 MW" have been substituted & for the figures, letters and words "2x800= 1600 MW" at serial no. 46, the figures, letters and words "2x660= 1320 MW" have been substituted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The entries before and after amendment read thus: </font></p>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After </font></p></td>
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<td valign="top"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">45 Gadarwara Super TPP, M.P. - 2x660= 1320 MW (NTPC) </font></em></p></td>
<td valign="top"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">45 Gadarwara Super TPP, M.P. - 2x800= 1600 MW (NTPC) </font></em></p></td>
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<td valign="top"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">46 Katwa Super TPP, West Bengal - 2x800= 1600 MW (NTPC)</font></em></p></td>
<td valign="top"><p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">46 Katwa Super TPP, West Bengal - 2x660= 1320 MW (NTPC) </font></em></p></td>
</tr>
</table>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Probably, this was an inadvertent error with which this List 32A began its journey on 10th September 2012 [ Notfn.<strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_049.htm" target="_blank">49/2012-Cus</a></strong> refers] and has been corrected now. Whether these amendments operate retrospectively we will know in the days to come. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ So also, entry 50 has been substituted in its entirety by "<em>50. Shree Singaji Thermal Power Project- 2X600=1200 MW</em>". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The previous entry 50 read as: Khandwa, Madhya Pradesh - 2x500 = 1000MW (MPPGCL). Apparently, it is the same project but now with a higher capacity. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There is also an addition to the list of mega power projects. A new mega power project "<em>112 Neyveli New Thermal Power Station, Tamil Nadu - 2X500 MW = 1000MW (Neyveli Lignite Corporation)</em>" makes its appearance. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly, similar amendments were made on the Central Excise side by notification <strong>24/2013-CE</strong>, dated August 2, 2013. But that notification was made available three days later due to weekend rush and in the cacophony of the CE notifications, the notification making similar amendments on the Customs side is made available only now. Who is benefited by the delay is not known. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, while reporting the CE notification in<a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTgzNjE=" target="_blank"> <strong>DDT 2164</strong></a>, we had made almost similar observations. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_040.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 40/2013-CUS, Dated August, 2, 2013. </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
Tax Cadre Review - IRS(D) vs IRS(P) </font><font color="#006600">- <font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central
Excise also figures in the battle of wits </font></font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> IRS (Direct Recruit) officers of the Income Tax Department are up in arms against the Group B Income Tax Officers trying to grab all the newly created posts of Assistant Commissioner of Income Tax. The IRS(DR) officers in a letter to the Chairperson of CBDT, states, “there have been some disturbing attempts recently for filling up all the vacancies of ACIT arising as a result of Cadre Restructuring 2013 by only promotion and that too in one go.” 1349 new posts are available and the ITOs want all of them to be filled by promotion and not by the 50:50 ratio between direct recruits and promotes. The IRS Officers (D) have come out with some interesting facts/views: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. This type of en masse promotion of ITOs as ACITs will create huge vacancies at the level of Inspectors, who are at the <strong>cutting edge</strong> of the functioning of the Department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The Revenue collections are adversely affected by frequent and illegal strikes by some associations in the Department, with even promotee Group A officers participating in the strike against conduct rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Stagnation at the level of promotion from ITO to ACIT or ITI to ITO was a misnomer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Promotion from Group B to Group A is the fastest in the Income Tax Department compared to any other department of the Central Government or State Governments. A person recruited as Inspector is retiring as Additional Commissioner and some even as Commissioners. This growth is unheard of in any other department in the country, especially when even direct recruit IRS officers are retiring as Commissioners. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Inspectors of Income Tax are promoted as ITOs within three to five years. Inspectors recruited in the sister Department of Customs and Central Excise are retiring as Assistant Commissioners. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Inspectors of Central Excise with 24 years of service are waiting for their first promotion and Superintendents of Central Excise with 18 years of service are waiting for the next promotion as Assistant Commissioners. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Way back in 1986, the Finance Minister had said, “the alleged grievances of the promotee officers of the income tax department are unreal and imaginary. In the past, the prospects, position and power enjoyed by them happened to be better only because of a systematic and persistent violation of Rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. By projecting some unreal and imaginary grievances and by resorting to pressure tactics, the promotee IRS officers and ITGOA have forced a systematic and persistent violation of rules in their favour to the detriment of the prospects of the Direct Recruit IRS officers and the country as a whole. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Promotee officers with very limited perspective caused political infighting for promotions and affected the morale of the Direct Recruits, which consequently has an adverse impact on the revenue collection and also led to increased harassment of the genuine taxpayers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. ITGOA is using all the channels available to them to press for this unjust demand of theirs. They have gone to the media, met all important people in Delhi like PM, MOS(Finance), MOS(personnel), RS, Chairperson & Members of CBDT, some MPs, etc. They have written letters to VIPs and made many VIPs to write letters to PM and FM. They are doing this again and again and are pressing for their unjust and illegitimate demand. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Tax Gazetted Officers Association (ITGOA) has responded sharply. In a letter to the Chairperson, CBDT, the Association takes strong exception to the highly derogatory and deplorable conclusions of the IRS(D) officers. They say, “there is no scope for comparing our Department with Central Excise, because of difference in circumstance. Central Excise is Inspector oriented department, whereas ours is officer oriented”. They are sad that an Inspector who joined in 1994 and became an ITO in 2001 is still waiting for his next promotion, whereas the 1994 Direct Recruit IRS officer is now an Additional Commissioner. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Association states that the deliberate misconception that is being propagated amongst DR IRS Officers will vitiate the office atmosphere, by polarizing Officers into two warring groups of DR & PR. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Association questions, “<em>Is this a desirable situation? Can CBDT allow such a thing to happen? If not, then what steps does CBDT intend to take, to stem such undesirable developments?</em>” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Position in Central Excise</strong>: What would be the feelings of Central Excise Inspectors and Superintendents who read this plight of their colleagues in Income Tax? Many of the Inspectors who joined in 1976, 1977 and 1978 have already retired as Superintendents with just one promotion in their career spanning 35 years and more. An Inspector becoming an Additional Commissioner or even a Commissioner? Just beyond all dreams!!! </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is cadre restructuring all about? </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Export of Finished Leather, Wet Blue and EI Tanned Leather to be permitted through notified port </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> prescribes the following procedure for export of finished leather, Wet Blue and EI Tanned Leather. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Export of Finished Leather, Wet Blue and EI Tanned Leather shall be permitted through the Sea Ports of Chennai, Mumbai (JNPT) & Kolkata and ICDs Kanpur & Tughlakabad or any other port/ICDs to be notified by DGFT from time to time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Officials of Central Leather Research Institute (CLRI) posted at the above Sea ports/ICDs would draw the sample of finished leather/Wet Blue/EI Tanned Leather from the export consignment, wherever required, in the presence of Customs Officials. Such samples will be tested and certified by CLRI or such other approved labs which may be notified from time to time, testing as per the finished leather norms notified vide Public Notice No. 21/2009-14 dated 01.12.2009. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn023.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 23 (RE-2013) / 2009-14, Dated: August 13 2013</font></strong></a></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"> Friday'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">Customs</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of coal from Indonesia - whether simultaneous benefit of Notification No.46/2011-Cus dated 1 June 2011 and No.12/2012-Cus dated 17 March 2012 is available - petitioner to avail of benefits subject to giving bank guarantee for 20% of differential duty and bond for balance amount: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> their WP filed before the Bombay High Court, the petitioner states that the coal imported by them from Indonesia is entitled to the benefit of two customs duty exemption Notifications viz. No.46/2011-Cus dated 1 June 2011 and No.12/2012-Cus dated 17 March 2012 as these notifications are not mutually exclusive. Inasmuch as there is nothing in either of the notifications mentioning that benefits under any other notification cannot be availed of. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department is denying the benefit of simultaneous exemption under both the notifications and restricting the benefit to only one of them. The petitioner vide a communication dated 4 July 2013 has been informed that in the Chief Commissioner's Conference held at Vizag on 5 June 2013, it was decided not to extend simultaneous benefit of two notifications. </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 when land is given to assessee as part performance of his services rendered to his client but not in capacity of an Advocate, even then such receipt is to be taxed as professional income - NO: Madras 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 when the sale agreement makes it very clear that the transfer of 3 grounds of land to the assessee, an advocate by profession, was intended as by way of consideration for securing patta and lay-out, the income earned on sale of such plots by the assessee amounts to professional income; Whether when the plots were given to the assessee as part performance for his services and not in the capacity of advocate, the same is subject to capital gains tax and Whether the mere incident of the assessee being a practicing advocate, he is disentitled to claim the receipt as income assessable under capital gains. And the verdict 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">In view of specific exclusion of ‘railways' from ‘Commercial and Industrial construction service', question of imposing any Service Tax on construction of viaduct and stations for Delhi Metro Railway project for Delhi Metro Corporation does not arise at all: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant Mumbai undertook civil construction i.e construction of viaduct and stations of Delhi Metro Railway Project for Delhi Metro Rail Corporation (DMRC) under turn-key contracts entered into during the year 2006, 2007 and 2008. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department was of the view that the appellant is liable to discharge service tax on the above activity under the category of ‘commercial or industrial construction service' and accordingly four show cause notices were issued demanding service tax of Rs. 21,25,49,390/- on the consideration received by the appellant during the period 01/04/2006 to 31/03/2011. </font></p>
<strong><font color="#6699FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is the 67<sup>th</sup> Independence Day - Happy Independence Day to all netizens. </font></strong>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Friday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Friday 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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