TIOL-DDT 2198 · 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 2198</font><br>
26.09.2013 <br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">SAD Refund - Limitation when Assessments are Provisional </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Notification No <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=OTAzOQ==" target="_blank">102/2007-Cus</a></strong> dated 14.09.2007, if the goods imported are for subsequent sale, the importers are entitled for refund of the Additional Duty of Customs levied under sub-section 5 of Section 3 of the Customs Tariff Act, 1975 Popularly known as SAD). Initially there was no time limit for claiming the refund under Notification No 102/2007, but vide amending Notification No 93/2008 Cus dated 01.08.2008, the time limit for claiming the refund has been prescribed as “before the expiry of one year from the date of making payment of the said additional duty of customs”.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what if the assessments are provisional? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board in <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2010/cuscir10_023.htm"><strong>Circular No. 23/2010-Cus., Dated: July 29, 2010</strong> </a>had clarified that <em>where the assessment is provisional, for the purpose of sanction of refund of 4% CVD, the date of payment of duty would be, the <strong>date of payment of CVD at the time of import</strong> of goods and not the date of finalization of provisional assessment. The Importer, therefore, would be eligible to get the refund, if the claim is filed <strong>within one year of the date of actual payment </strong>of 4% CVD i.e. the date of payment of duty at the time of clearance of imported goods. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This Circular and the amendment were challenged in a High Court on the ground that <em>by the impugned notification and circular, the Central Government has created a situation whereby a person would need to file an application for refund even before the assessment is finalized as the time limit for making an application has been prescribed to commence from the date of payment of the provisional duty for release of the goods and not the final assessment of duty. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court in its judgement delivered on 13th September 2013, observed, "<em>A notification cannot restrict the benefit or impose more rigorous or severe terms than the one prescribed under the Act. Notification can liberalise and grant exemption. Indulgence and benevolence can be an objective of a notification and restricted or shorter period of refund is not postulated. Notification cannot impose more deleterious terms and reduce the period of limitation for refund of claim . Section 27 of the Act prescribes period of limitation. The period of limitation under the said Section cannot be curtailed by way of a notification but a notification can extend and increase the period of limitation. Similarly, a circular cannot reduce the period of limitation for seeking refund stipulated in Section 27 of the Act</em>.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the High Court held: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where the goods are released on provisional assessment followed by the final assessment, the application seeking refund can be made within the period of one year or six months, as the case may be, of the final assessment as stipulated by Explanation II to section 27 of the Act or within the enlarged period of one year from the date of provisional release as stipulated by the notification dated 1st August, 2008 read with Circular No. 23/2010-Custom dated 29th July, 2010 . </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The SAD refund sadly had been in controversy right from Day One for the simple reason that no officer in the department likes to give refund. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We will bring you the High Court order tomorrow. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Amendment in Foreign Trade Policy </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PARA</strong> 3.14.3 of the Foreign Trade Policy stipulates the categories of export products/sectors ineligible for Duty Credit Scrip under FMS. Now three more categories are added to the list: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Export of Cotton. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Export of Cotton Yarn. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Exports which are subject to Minimum Export Price or Export Duty. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not043.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 43 (RE-2013)/2009-2014, Dated: September 25, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Amendment in Foreign Trade Policy - Incremental Export </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the Foreign Trade Policy to stipulate that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Benefit of Incremental Export Incentivisation Scheme for the last quarter of 2012-13 will be limited to 25% growth or Incremental growth of Rs.10 crores in value, whichever is less. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Claims in excess of this value will be subjected to greater scrutiny by Regional Authority. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not044.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 44 (RE-2013)/2009-2014, Dated: September 25, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Amendment in Foreign Trade Policy - Greater Scrutiny? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the Handbook of Procedures Vol. I 2009-14 - to stipulate a list of indicative documents for such <strong>greater scrutiny</strong>. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Calling for evidence of manufacture / purchase of export goods i.e. excise return /sales tax returns or any other evidence. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Checking exports of company from whom goods have been purchased i.e. whether such company had done export in previous 2 years and quantum of exports in previous 2 years and quantum of exports in current year. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Calling for any other evidence to justify export growth and consequent entitlement of Incremental Exports Incentivisation Scheme. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn028.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 28/2009-2014 (RE- 2013), Dated: September 25, 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No Fees on Debit Card Transactions -And no zero percent loans - RBI </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> are instances where merchant establishments levy fee as a percentage of the transaction value as charges on customers who are making payments for purchase of goods and services through debit cards.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI says, "<em>Such fee are not justifiable and are not permissible as per the bilateral agreement between the acquiring bank and the merchants and therefore calls for termination of the relationship of the bank with such establishments</em>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Zero percent loans</strong>: In the zero percent EMI schemes offered on credit card outstandings, the interest element is often camouflaged and passed on to customer in the form of processing fee. Similarly, some banks were loading the expenses incurred in sourcing the loan (viz DSA commission) in the applicable RoI charged on the product. Since the very concept of zero percent interest is non-existent and fair practice demands that the processing charge and RoI charged should be kept uniform product/segment wise, irrespective of the sourcing channel, such schemes only serve the purpose of alluring and exploiting the vulnerable customers. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These practices/ products thwart the very principle of fair and transparent pricing of products which beholds customer rights and customer protection, especially, in the more vulnerable retail segment and so RBI wants a STOP to this immediately. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Incidentally, such a move by the RBI will also put a stop to the Service Tax disputes and may render the existing entry in the Finance Act, 1994 otiose. See <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk4MjE="><strong><font size="1">2013-TIOL-1363-CESTAT-MUM</font></strong></a><font size="1">."</font> </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=347&filename=notification/rbi/2013/rbi013noti022.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI/2013-14/292 DBS.CO.PPD No. 3578 /11.01.005/2013-14, Dated: September 17 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Government notifies new DA Rates for Babus </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has been widely publicised that the Cabinet had decided to hike the Dearness Allowance of Central Government employees from the present 80 percent to 90 percent. This is one of the steepest hikes in DA which proves the high inflation prevailing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday the Government officially notified the DA hike. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/oms/da.htm"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MoF, Dept. of Expenditure Office Memorandum No. 1-8/2013-E-II(B),Dated: September 25 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Government in Election Mode - Seventh Pay Commission Announced </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> FM is normally against Pay Commissions and huge hike in salaries for the babus. Like many of the babus, the FM is also a sort of veteran in experiencing Pay Commissions. He was in command in Government during the Fifth and Sixth Pay Commissions. He had commented that if the Fifth Pay Commission's recommendations were implemented, it would cripple our economy. He had no choice then. All the partners in his coalition, mainly left parties forced him to accept. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He was again the Finance Minister in 2008 when the Sixth Pay Commission's recommendations were implemented. Again compulsion. And now as it is almost election time, the Government <a></a>needs the babus and the Seventh Pay Commission is announced even without a serious demand from the employees. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The First Pay Commission was in 1946, the second in 1959, the Third in 1973, the Fourth in 1986, Fifth in 1996 and Sixth in 2006. So the next Pay Commission's recommendations are due to be implemented in 2016. This time the Government has announced the constitution of the Commission two years in advance. The last Pay Commission was announced in October 2006 and gave its report in March 2008 and it was implemented from 1.1.2006. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there is a proposal for a separate Pay Commission for the Armed Forces, which is being stoutly opposed by the defence employees.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Officers of our armed forces have a grievance that they are not treated by the civilian babus as well as they should be. Just have a look at the scales: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"> </td>
<td colspan="2" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">REVENUE </font></strong></p></td>
<td colspan="2" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DEFENCE </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SI. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cadre </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pay Scale </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rank </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pay Scale </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></strong></p></td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">General </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">COAS </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 90,000/ </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Principal Chief <br>
Commissioner </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.80,000 (fixed) </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vice- Chief/Commanders </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lt. General </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 80,000 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioner </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 75500-80000 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1/3rd of the total Strength of Lt. Generals </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 75500-80000 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Principal Commissioner </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs 67000 - 79000 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lt. General </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs 67000 - 79000 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 37400-67000 + grade pay of Rs. 10000 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maj. General </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 37400-67000 + grade pay of Rs. 10000 </font></p></td>
</tr>
<tr>
<td rowspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p> <p> </p></td>
<td rowspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Commissioner </font></p> </td>
<td rowspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.37400-67000 + grade pay of Rs. 8700/ <br>
</font></p> <p> </p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brigadier </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 37400-67000 + grade pay of Rs. 8900 </font></p></td>
</tr>
<tr>
<td height="56" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Colonel </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 37400-67000 + grade pay of Rs. 8700 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Joint Commissioner </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.15600-39100 + grade pay of Rs. 7600 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lt. Colonel </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 37400-67000 + grade pay of Rs. 8000 </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Deputy Commissioner </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.15600-39100 grade pay of Rs. 6600 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Major </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.15600-39100 grade pay of Rs. 6600 </font></p></td>
</tr>
<tr>
<td rowspan="2" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7</font></td>
<td rowspan="2" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Assistant Commissioner</font></td>
<td rowspan="2" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.15600 39100 + grade pay of Rs. 5400 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Captain </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.15600-39100 grade pay of Rs. 6100 </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lieutenant </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.15600-39100 grade pay of Rs. 5400 </font></td>
</tr>
</table>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Brigadier is supposed to be a very senior officer in the Army, but his salary is less than that of a Commissioner. Only a very few Lt. Generals get the salary of a Principal Chief Commissioner. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anomalies created by the Sixth Pay Commission are yet to be resolved and perhaps the Seventh Pay Commission will sort them out.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Babus certainly deserve good salaries but can we afford to pay some lakhs of them in the Centre and the States. Some States will simply go bankrupt. </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"> – Friday's cases</font></strong></font></strong></font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">SAD Refunds - In case of provisional assessments, claim for refund can be made within one year of finalisation of assessment: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHERE</strong> the goods are released on provisional assessment followed by the Final assessment, the application seeking refund can be made within the period of one year or six months, as the case may be, of the final assessment as stipulated by Explanation II to section 27 of the Act or within the enlarged period of one year from the date of provisional release as stipulated by the notification dated 1st August, 2008 read with Circular No. 23/2010-Customs dated 29th July, 2010. </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 income derived from air-conditioning and other charges of let out property can be considered as income from other sources entitled for deduction of expenses u/s 57 - YES: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee had received rent of Rs. 45,00,049/- from letting. The Assessee had also received a sum of Rs. 66,25,957/- on account of air conditioning, electricity and water charges. The assessee had declared the rental income under the head "income from house property" and the air conditioning and other charges had been declared as income from other sources against which property maintenance expenses of Rs. 82,54,091/- had been claimed resulting into net loss of Rs. 20,28,134/- under the head " income from other sources". The AO held that since the assessee had let out the property on rent along with air conditioning and other services the entire income should be assessed as income from house property. The issue before the Bench is - Whether income derived from the air-conditioning and other charges of the let out property can be considered as income from other sources entitled for deduction of expenses u/s 57. And the answer goes in favour of the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Interest liability arises under provisions of Section 11AB of Central Excise Act, 1944, and even prior to 11.05.2001: CESTAT LB</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issue referred to the Larger Bench in these cases is: </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"whether interest on duty/cenvat credit demanded by applying proviso to Section 11A or Section 11AA with Cenvat Credit Rules or under Rule 57(I), is payable under Section 11AB prior to 11.05.01."</font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Held: </strong>interest liability arises on the appellants under the provisions of Section 11AB of Central Excise Act, 1944, and even prior to 11.05.2001.</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><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></p>
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