TIOL-DDT 2176 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"
"http://www.w3.org/TR/html4/loose.dtd">
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body>
<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 2176</font></strong></font><strong><br>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">26.08.2013 <br>
Monday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ST- 3 Return - Online Version now Available</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> ACES website proudly proclaims, "The online version of the Service Tax return (ST-3) for the period October'12 to March'13 is now available for e-filing in ACES." ACES informs that, "Assessees can also use the offline utility by downloading the latest version from <a href="http://acesdownload.nic.in"><strong>http://acesdownload.nic.in</strong> </a>or from 'DOWNLOADS' Section of ACES website. Assessees whose ST 3 returns for the period October'12 to March'13 for "Banking and other Financial services" got rejected are requested to use the latest version of ST 3, either online or off-line to file their return. The last date of e-filing of ST 3 for the period October, 2012 to March, 2013 is <strong>31st August, 2013</strong>. To avoid congestion and inconvenience on the last date assessees are advised to start e-filing the returns immediately and not to wait till the end of the month."</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC should have made this online version available in April 2013 and they did it in the last week of August leaving just a week for filing the return. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC should seriously consider extending the last date for filing the return from the present 31 August to at least 30 September 2013. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Exemption - Ash Handling Systems, Water Treatment Plant and Coal Transportation Facilities etc. outside power plants - CBEC clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION</strong> No. 12/2012-Central Excise (S. Nos. 337&338), dated 17-03-2012, provides exemption to machinery, instruments, apparatus and appliances etc. required for setting up of ultra-mega/ mega power projects. The Explanation clarifies that the <em>goods required for setting up of these projects include the goods required for development of facilities such as ash disposal system including ash dyke, water intake including treatment and storage facilities and coal transportation facilities for such a project</em>, notwithstanding the fact that such<em> facilities are set up inside or outside the power plant's designated boundary</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received from the trade and industry that the benefit of exemption is being denied to the afore-cited goods when they are imported for setting up of ultra-mega/ mega power projects. It has been requested that, for removal of doubts, a clarification, on the lines of excise exemption, should be issued by the Ministry that the said goods required for ultra-mega/ mega power projects are eligible for customs duty exemption. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In response, the CBEC clarifies that the <em>goods required for development of facilities such as ash disposal system including ash dyke, water intake including treatment and storage facilities and coal transport facilities required for ultra-mega/ mega power projects are eligible for customs duty exemption, notwithstanding the fact that such facilities are set up inside or outside the power plant's designated boundary</em>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the Board's clarification would not be over-ruled by the field. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/cuscir13_033.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 33/2013-Cus., Dated: August 23, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Complaints against Babus - No disclosure under RTI</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Supreme Court in<em> Girish Ramchandra Deshpande Vs. Central Information Commissioner</em> - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2012/2012-TIOL-92-SC-RTI.htm" target="_blank"><font size="1">2012-TIOL-92-SC-RTI</font></a></strong> held, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"The performance of an employee/Officer in an organisation is primarily a matter between the employee and the employer and normally those aspects are governed by the service rules which fall under the expression 'personal information', the disclosure of which has no relationship to any public activity or public interest. On the other hand, the disclosure of which could cause unwarranted invasion of the privacy of that individual." </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Information Commission in one of its recent decisions, followed the Supreme Court judgement and held that<em> information about the complaints made against an officer of the Government and any possible action the authorities might have taken on those complaints, qualifies as personal information within the meaning of provision of section 8 (1) (j) of the RTI Act, 2005</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this RTI appeal, the appellant had sought the copies of the complaints made against a Government official and the details of the action taken including the copies of the enquiry reports. He had also wanted the copies of the correspondence made between the Cabinet Secretariat and the Ministry of Shipping in respect of the officer in the case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CIC held that the information is completely exempted from disclosure under the provisions of the RTI Act </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DOPT has communicated this decision to all the Ministries and Departments of the Government of India. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/office_memorandum_rti_act_2005.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DOPT Office Memorandum No. 11/2/2013-IR(Pt), Dated: August 14 , 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">India - Least Favourable Market? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> seems Nokia had in June written to the Government that India has become the "least favourable market", and it now makes business sense to exit and export from China. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Babus and politicians are too busy to listen!</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Credit on Telephone service - Meaningless harassment to the assessee </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE</strong> deciding the eligibility of CENVAT Credit, the favourite line of the department is always "the assessee has not produced any evidence to show that the service was used in the manufacture of final product". They would also press into service the provisions of Rule 9(5) of the CENVAT Credit Rules to hold that the burden on the assessee to prove the admissibility. Recently the CESTAT while deciding the eligibility of CENVAT Credit on telephone service, held:</font></p>
<blockquote>
<p align="justify"><em><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner (Appeal) has recorded that the appellant has not produced evidence to show the nexus between the manufacturing activity and the services in question. <u>It is not understood what sort of nexus is being asked for. Is it necessary to show what was talked in each call through each of the telephone in respect of which Cenvat credit is claimed? Demand for such demonstration can only lead to meaningless harassment to assessees</u>. Where the expenditure is incurred by the company in its books of accounts there is a presumption in favour of the appellant that the service is availed in relation to their business. So long as Revenue has not proved anything to the contrary I do not see any merit in the argument of Revenue.</font></em></p>
</blockquote>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see: <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk1NjY=" target="_blank">2013-TIOL-1270-CESTAT-MAD</a></font></font></strong></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Meditation.jpg" alt="Legal Corner Icon" width="400" height="356" hspace="5" border="0" align="center"><br>
</font></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"> – Tuesday'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">CENVAT - Appellant procuring various items falling under Ch. 85 for setting up of paint shop in factory - Revenue alleging that upon fabrication what comes into existence being fixed to earth is not excisable and hence these items are not CENVATABLE - objection is absurd and not relevant -Order set aside and appeals allowed: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants took CENVAT credit of Rs.6,28,320/- on the basis of 14 invoices under which various items falling under heading 85.48 were supplied for setting of paint shop. It is the contention of the Revenue that the appellant had placed order with the supplier for supply of a paint shop, that the goods after being brought into the factory were used for erection of paint shop which is an immovable property and hence the appellant would not be eligible for capital goods <em>CENVAT credit </em>in respect of these items. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The demand was confirmed along with imposition of equivalent penalty and interest. Even the Executive Director and the Commercial Manager were saddled with penalties. </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 penalty u/s 272B is to be imposed on deductor even if fault of non-furnishing of PAN details lies with deductees - NO: Allahabad HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee is a public sector undertaking. It has been deducting income tax at source as per the provisions of Section 194-C and 194-J of the Act on all the payments made to contractors/professionals during the financial year 2002-03. The tax so deducted was also deposited by it in the government treasury in time. The annual return of TDS as per the provisions of Section 203 of the Act, was also filed in the prescribed 'Form-26-C' and TDS certificates were issued to contractors/professionals. However, penalty at the rate of Rs.10,000/- for each 350 defaults committed by the assessee amounting to Rs. 35 lacs was imposed by the Additional Commissioner of Income Tax Range-I, Agra on the ground that the assessee had not mentioned Permanent Account Number in Form-16-A issued to 350 contractors. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issues before the Bench are - Whether penalty u/s 272B is discretionary; Whether penalty can be imposed merely because it is lawful to do so; Whether penalty u/s 272B is to be imposed on the deductor even if the fault of non-furnishing of PAN lies with the deductee and Whether when the deductee has furnished PAN details but the deductor has failed to mention the same in Form 16A, it warrants penalty u/s 272B. And the verdict goes against Revenue.</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">Service Tax is leviable on rendering of services - therefore, it is rate prevalent on date of rendering of service, which is relevant for levy of ST - appeal allowed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> service tax demand of a princely sum of Rs.20,296/- was confirmed against the appellant on the "Commercial Training or Coaching" services rendered by them during the period July, 2004 to October, 2004. The appellant contested that for the period prior to 10.09.2004, the rate of Service Tax leviable was 8% and w.e.f 10.09.2004, the applicable rate was 10%. Therefore, for the services rendered prior to 10.09.2004, they are liable to pay Service Tax only @8% even though they raised bills after 10.09.2004. This contention of the appellant was rejected and the Service Tax demand was confirmed by the lower authorities. </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 Tomorrow 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"> <strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p>
</body>
</html>