TIOL-DDT 2174 · 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 2174</font><br>
22 .08.2013 <br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Right to Information is now Online </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNION</strong> Minister of State for Personnel, Public Grievances & Pensions Mr. V Narayanasamy, yesterday launched the online portal of RTI. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. This Web Portal can be used by Indian citizens to file RTI application online and also to make payment for RTI application online. First appeal can also be filed online. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. An applicant who desires to obtain any information under the RTI Act can make a request through this Web Portal to the Ministries/Departments of Government of India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The text of the application may be written at the prescribed column. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. At present, the text of an application that can be uploaded at the prescribed column is confined to 3000 characters only. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. In case an application contains more than 3000 characters, it can be uploaded as an attachment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. After filling the first page, the applicant has to click on "Make Payment" to make payment of the prescribed fee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. The applicant can pay the prescribed fee through the following modes: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (a) Internet banking through SBI and its associated banks; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (b) Using credit/debit card of Master/Visa. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Fee for making an application is as prescribed in the RTI Rules, 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. After making payment, an application can be submitted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. No RTI fee is required to be paid by any citizen who is below poverty line as per RTI Rules, 2012. However, the applicant must attach a copy of the certificate issued by the appropriate government in this regard, alongwith the application. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. On submission of an application, a unique registration number would be issued, which may be referred by the applicant for any references in future. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. The application filed through this Web Portal would reach electronically to the "Nodal Officer" of <strong>concerned</strong> Ministry/Department, who would transmit the RTI application electronically to the <a><strong>concerned</strong> </a>CPIO. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. In case additional fee is required representing the cost for providing information, the CPIO would intimate the applicant through this portal. This intimation can be seen by the applicant through Status Report or through his/her e-mail alert. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14. For making an appeal to the first Appellate Authority, the applicant has to click at "Submit First Appeal" and fill up the page that will appear. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15. The registration number of original application has to be used for reference. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16. As per RTI Act, no fee has to be paid for first appeal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17. The applicant/the appellant should submit his/her mobile number to receive SMS alert. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18. Status of the RTI application/first appeal filed online can be seen by the applicant/appellant by clicking at “ View Status ”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19. All the requirements for filing an RTI application and first appeal as well as other provisions regarding time limit, exemptions etc., as provided in the RTI Act, 2005 will continue to apply. </font></p>
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<p align="center"><font color="#006600"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">New Exchange Rates for Pound Sterling</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE</strong> everyone was busy talking about the USD, the Pound Sterling managed to stealthily breach the hundred mark two days ago. So, the Government has notified new exchange rates of Pound Sterling for export and imported goods. It was only a week ago that the rates were changed by notification <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_083.htm" target="_blank">83/2013-Cus (NT)</a></strong> dated August, 14, 2013. Interestingly, the new exchange rate notification is <strong>valid with immediate effect</strong> unlike the general practice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As for the dollar,<em><strong> Deutsche Bank</strong></em> in a research note presented yesterday said that t he rupee could touch 70 level against the US dollar in a month's time. A few days back the global investment bank <em><strong>Goldman Sachs</strong></em> had predicted that rupee can hit Rs.65 to a dollar and which seems to turn out as true.</font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">With the stock markets sinking along with the rupee and gold unabashedly climbing on their backs, it is only a matter of time before we have another expenditure on our hands - an early General Election, which some economists say will infuse the much needed confidence for international investors! </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_086.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 86/2013 - Cus., (N.T.), Dated: August 21, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Promoted IRS officers get foreign 'training' for five days </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>115</strong> newly promoted Income Tax Assistant Commissioners are undergoing a training in Malaysia for five days which ends tomorrow. What are these experienced Income Tax officers of India going to learn in Malaysia in five days? Is it a pleasure trip - fully paid for by the Welfare State? We are talking of restricting the import of Flat Panel TVs to salvage the ailing economy and here is a group of IRS officers who are on a State sponsored foreign jaunt - and each of them will cost more than a flat TV. In fact these trainees are just in time to overcome the ban on flat panel TVs - if they return to India before 26th. Maybe many of them will have these TVs as baggage. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The officers are extremely happy that even promoted officers are considered by the Government for this extravaganza, which was a restricted privilege of the directly recruited IRS officers. This is the first time that promotee officers are being sent abroad as part of training. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Probationers in all the services are given this foreign trip as part of their training. India has a long history of tax laws - after all didn't we have a Kautilya much before taxation was considered to be a subject in the rest of the world? It is really ridiculous that we have to send our taxmen to Malaysia to learn taxes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Promotee IRS officers in the CBEC are not given any training at all, let alone a foreign one, for many of them retire within a year of getting promotion. Now, after cadre review, if young officers get promoted as Assistant Commissioners, they can ask for a foreign training on par with the Income Tax Assistant Commissioners! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Instead of foreign holidays, the Tax Department should attach its officers to the assessees for a period of three months and these officers should be made to comply with all the tax provisions, to the satisfaction of the tax authorities. Then they will understand how difficult it is to be an assessee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Doesn't the Audit object to such national waste? - No, the officers of the IA&AS who run the Audit Department also have their foreign jaunts! </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tablet is not Computer - clarifies Malaysian Revenue Board. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Tax Policy Department (something like our TPL) of the Inland Revenue Board Of Malaysia, last month issued a clarification, </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"The Ministry Of Finance via a letter dated 20th March 2013 has decided that an individual is eligible for personal tax deduction for the purchase of a personal computer under paragraph 46(1)(j) Income Tax Act 1967, which is a desktop computer, a laptop computer, Notebook and Ultrabook not used for the purpose of a business. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Therefore, the eligibility of tax deduction allowed does not include purchase of other gadgets that are able to perform functions similar to a computer for example tablet and handphone." </font></em></p>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Anything for the IRS officers to learn from? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT appoints panel of Chartered Engineers to determine whether machinery items supplied have essential characteristic of lift when assembled </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue is of classification of the machinery items supplied by the appellant. When the miscellaneous application was posted for considering whether the machinery items supplied by the appellants are having the essential characteristic of lift assembled together, the appellant relied on an affidavit filed by a Chartered Engineer to support their contention. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the Counsel for the Revenue controverted the said affidavit, the Member(J) found it prudent to appoint a three-member panel comprising of Chartered Engineers who were entrusted to examine various materials supplied by the appellants for installation of lift along with the drawings and documents available with them and on inspection to decide whether the various items of lift machinery manufactured by the appellants are having essential characteristics of lift if assembled. The panel was directed to file their reports within two months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Member (T) agreed to the proposal but found it worthwhile to clarify the following as a matter of abundant precaution - </font></p>
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<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">"</font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">6. …it is the job of the Tribunal to decide the classification of goods which would cover a ruling whether set of items have the essential character of particular machine or not, in this case lift. It is not the job of a technical panel to take such a decision. Technical panel can opine the technical and engineering aspect including utility of various parts. They can also opine what would be the position in the absence of certain parts. These details will assist the Tribunal to take a view, whether or not parts cleared by the appellant can be considered as lift. Panel should not decide or opine whether the various items of lift machinery manufactured by the appellants are having essential characteristic of lift, if assembled."</font></em></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, as for the costs that would be involved, the Bench mentioned this - "<font color="#FF0000"><em>Both the sides are directed to bear the expenses of the above panel equally</em></font>.” </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk1MzQ=" target="_blank"><font size="1">2013-TIOL-1253-CESTAT-MUM</font></a></font></strong></p>
<p align="center"><strong><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></strong></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">Small Scale Exemption - Whether the goods manufactured under loan licence agreement by other manufacturers are to be clubbed with goods manufactured in factory of loan licencee - Matter referred to Third Member for deciding stay: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue involved is about clubbing of clearances for the purpose of deciding eligibility of small scale exemption under Notification No 8/2003 CE. The appellant is manufacturing ophthalmic and liquid orals falling under Chapter 30 of the Central Excise Tariff at his only factory located in Allahabad and is availing small scale exemption under Notification No 8/2003 CE. In addition, the appellant is also getting the goods manufactured at different factories on loan licence agreements / job-work basis. The goods manufactured under such agreements are cleared on payment of duty by those manufacturers on payment of duty. It is the case of revenue that the goods manufactured by other manufacturers on job-work basis are to be clubbed with the value of clearances of the Allahabad unit of the appellant to decide the exemption limit under Notification No 8/2003 CE. </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 TDS credit is reflected in 26AS, AO is expected to give credit even without waiting for an application u/s 154 and also sanction refund if any - YES: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> filed return of income claiming refund of Rs. 2.11 lakhs. Return was processed at centralized processing unit in which TDS credit was not given of Rs. 3.78 lacs resulting into demand of Rs. 1.67 lacs. An application was made u/s 154 pointing out the mistake. However, since no reply / communication was received and no rectification was made, assessee went in writ. The issues before the Bench are - Whether when the TDS credit is reflected in 26AS, AO is expected to give the credit even without waiting for an application by the assessee u/s 154 and also sanction refund if any and Whether in an electronic regime, Revenue is expected to be more proactive in facilitating refunds of TDS Credit reflected in 26AS. And the verdict favours 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">ST - the foremost and key pre-requisite to qualify as taxable service is that franchisee should have been granted representational right to sell or manufacture goods or to provide service or undertake any process identified with franchisor: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> department could not show that any logo or hallmark belonging to the appellant has been put on the packages manufactured/marketed by the sub-licensees. A laptop containing a label of ‘windows', only denotes that the processor or the operating system/software, as the case may be in the said laptop and by putting such label, the laptop manufacturing company does not represent ‘Microsoft' or become the franchisee of ‘Microsoft'. Admittedly, in a franchisee transaction the franchisee loses his individual identity and represent the identity of franchisor to the outside world, as in the case of ‘McDonald' the customers are not concerned with who owns the ‘McDonald's restaurant (franchisee). The customers identify it with ‘McDonald (the franchisor).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department failed to show that the appellant (the franchisor) granted representational rights to franchisee to sell or manufacture or provided service identified with them (the appellant i.e. the franchisor). </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns tomorrow 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 align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><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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