TIOL-DDT 2213 · 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 align="justify"><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 2213</font><br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>21.10.2013<br>
Monday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Radia Tapes - Supreme Court orders more probe </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DG (Investigation) of Income Tax had in 2008-09 tapped the telephone of Nira Radia, which revealed shocking information. In 2010, the Supreme Court directed the CBI, Enforcement Directorate and Income Tax Authorities to investigate. In November 2010, excerpts from Radia's conversations with politicians, corporates, lobbyists, bureaucrats and journalists got published in some news magazines. Ratan Tata whose name figured in some of these publications filed a writ in the Supreme Court to stop publication of the recordings. The Centre for Public Interest Litigation filed a Writ Petition to release all the 588 recorded conversations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court constituted a team comprising the officers of Indian Revenue Service and CBI for scrutinizing the transcripts of the tapes and to submit a report to the Court. Two reports were submitted to the Supreme Court.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court observed, "The subjects mentioned in the eight issues are prima facie indicative of <strong>deep rooted malaise in the system of which advantage has been taken by private enterprises in collaboration/connivance with the Government officers and others. The conversations between Ms.NiraRadia and her associates with various persons suggests that unscrupulous elements have used corrupt means to secure favours from the Government officers, who appear to have acted for extraneous considerations.</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court has ordered further investigation on the reports. One issue is regarding corruption/malpractice in Judiciary/Judges/Tribunals etc, which is to be referred to the Chief Justice of India for consideration and appropriate action. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some of the issues in the suspected calls are: </font></p>
<table width="90%" border="0" align="center" cellpadding="5" cellspacing="0">
<tr>
<td valign="top"><p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Alleged criminal misconduct by public servant in respect of survey/raid conducted by Income Tax department. </font></p> </td>
</tr>
<tr>
<td valign="top" bgcolor="#F0FFE1"><p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Payment of illegal gratification to Income Tax officials to get work done. </font></p> </td>
</tr>
<tr>
<td valign="top"><p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Chartered Accountant working as tout of Income Tax officer. </font></p> </td>
</tr>
<tr>
<td valign="top" bgcolor="#F0FFE1"><p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Payment of illegal gratification/favours extended to Public Servants. </font></p> </td>
</tr>
<tr>
<td valign="top"><p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Conversations regarding allocation of spectrum. </font></p> </td>
</tr>
</table>
<p align="justify"><strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTAzNjg=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Click
Here for
the Supreme Court Order </font></a></strong></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Frequent Changes in Exchange Rates </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>concerned Netizen wrote to us, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>There was a time, when the rate notified will be for a whole month and it was quite comfortable for the trade and industry. Now, the rate is changed frequently, especially for USD and the same is made applicable from the very next day. There are occasions, where the rates are changed for a particular currency more than thrice in a month. What the government earns out of such action is not known. Due to this, a prospective importer will not be able to confirm his duty liability based on the import documents held with him, as the Board often changes the rates with no time to spare. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>This results in a lot of practical difficulties and in real terms, often one has to change even the bond and other documents prepared as per the import documents, as by the time it is presented to customs for clearance, the rate may get upward and has to go for a fresh one. The reduction process will not have any impact, but one has to be subjected to difficulty in the event of rate revision to higher level. </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had raised this issue in <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTUzODE=" target="_blank"><font size="1">DDT-1895 06.07.2012</font></a><font size="1">.</font></strong> It was stated, "<em>Earlier there used to be some certainty in these notifications - they were issued effective from the 1st of the month. Now, the Government is issuing these notifications without a specific date. Importers and exporters are to keep a close watch to see whether there was any notification issued on a particular date. Can't there be a little more clarity on this?"</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>And also in <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTc5NzA=" target="_blank">DDT 2126</a></strong> - 'Can we not formulate some other method to adopt the exchange rate for a particular day rather than keeping on issuing notifications day in and day out because there is always a tendency to fumble while adopting the cut and paste technique?' </em></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VCES - Oct 2012-March 2013 Return </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Return period is October 2012 to March 2013 and VCES is applicable for part of the period that is from October 2012 to December 2012.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An assessee has a serious doubt. Should he file the Return for October 12 to March 13? His apprehension is, if he files the return before filing the application under VCES, he might be barred from VCES and if he files it afterwards, he may be penalised. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He asked his jurisdictional officer for clarification who advised him to keep the data for October to December blank in the return. The assessee is not convinced with this suggestion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Will the Board help</strong>?</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cochin Gold Smuggling Case - ADG DRI in CBI Radar </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HE</strong> is an Ayurvedic Doctor (BAMS). He joined the IRS (Customs & Central Excise) in 2010 at the age of 32. After going through the induction course at NACEN, he was posted as Assistant Commissioner in a major Custom House in 2012. Last month he got married. How I wish I could continue with this happy story, but right now he is in CBI custody after having been arrested last week. (Briefly reported in Friday's <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=18861" target="_blank">DDT 2212</a></strong>) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Assistant Commissioner is accused of receiving money and gifts from the notorious smuggler who had been caught in the 20 kgs gold seizure in Cochin Airport last month. CBI recovered a 63 inch TV allegedly gifted by the smuggler. It seems he used the smuggler's car for a month during his marriage. Fearing a CBI raid, he had deposited the gifts in his driver's house, from where CBI recovered them and the driver is also arrested. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is another twist to the tale. The Assistant Commissioner told the Court that he was introduced to the alleged smuggler by the ADG, DRI. He also showed an SMS message from the ADG. The other officers arrested in this case are also understood to have stated that it was the DRI ADG who introduced them to the smuggler. From
DRIver to DRI, the net is spreading far and wide. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is sad to see young IRS officers recruited and trained with huge costs going down the drain like this. Unfortunately many of the youngsters who join the department now are not ready to wait and watch - and learn - they get into action right from day one. The arrogance, ambition and avarice of some of the recently recruited Assistant Commissioners are appalling. You can spot them in any big city going around in flashy cars (paid for by their preventing wings), demanding huge amounts of money, ready to do any fraud and with absolute contempt for assessees and staff, behaving like spoilt princes. The senior officers should have a close watch on these new age raiders - remember Cochin is not an isolated case. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs Broker's Licence Exam Notified </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DG, Inspection, Customs and Central Excise has announced the examination for issue of licence to act as Customs Brokers under the Customs Brokers Licencing Regulation, 2013. The examination is to be held on 31.01.2014 and the last date for receipt of application form is 15.11.2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is fine, but what about the Custom House Agents who existed prior to the coming in to force of the Customs Brokers regime. Are they converted into Customs Brokers or are they illegally functioning in the Custom Houses?</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/dgi_order.htm"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGI, Customs and Central Excise Notice for Customs Brokers Examination</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cut-flowers are non-excisable goods - question of levy of excise duty on 'cut-flowers' cleared by EOU to DTA will not arise at all: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> is a Revenue appeal of the year 2004.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The adjudicating authority held that since the respondents did not have permission from the Development Commissioner of EPZ for DTA sales, the 'cut flowers' cleared would be leviable to excise duty at the rate equivalent to aggregate of the customs duty leviable on cut flowers imported into India and accordingly confirmed the demands. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The respondents filed appeals before the Commissioner (A) who held that since "cut flowers" are not excisable goods, the question of levying any duty u/s 3 of the CEA, 1944 would not arise. Reliance was also placed on the LB decision in <em>Vikram Ispat </em> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2002/2002-TIOL-32-CESTAT-DEL-LB.htm" target="_blank"><font size="1">(2002-TIOL-32-CESTAT-DEL-LB)</font></a></strong> wherein it is held that the customs duty is not leviable and what can be charged in respect of clearance from 100% EOU into DTA is only excise duty leviable under section 3 of the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before the CESTAT, the Revenue submits that in terms of the Notification no. 126/94-Cus dated 03/06/1994 there is a provision for charging of duty on non-excisable items also equal to the Customs duty leviable on the <em>imported inputs </em> which have gone into production or manufacture of the non-excisable items and, therefore, the demand is sustainable in law. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The respondents were not represented.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After adverting to the provisions of section 3 of the CEA, 1944, the Bench observed - </font></p>
<blockquote>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"5.1 As per section 2(d) of the Act, "excisable goods" means 'goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise and includes salt". The period involved in these appeals is April 1998 to September 1998 and January 1999 to June 1999 & July 1999 to September 1999. During this period, the Central Excise Tariff did not specify "cut flowers" as excisable goods nor any rate of duty was prescribed for "cut flowers". Even in the amended tariff effective from 2008 where the excise tariff has been aligned with the customs tariff cut flowers fall under Chapter 6 and there is no rate of duty mentioned against cut flowers and the column regarding rate of duty is left blank. This implies that even after amendment to the Central Excise Tariff in 2008 cut flowers remains a non-excisable goods. If the goods are non-excisable goods, the question of levy of excise duty would not arise at all. Therefore, there is absolutely no merit in the appeals filed by Revenue…"</em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue appeals were dismissed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTAzNjU=" target="_blank"><font size="1">2013-TIOL-1547-CESTAT-MUM</font></a></strong></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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"></font><font color="#663399">Central Excise</font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MRP Valuation - s.4A of CEA, 1944 - there is no nexus between declaration of retail sale price and prices at which goods are sold to institutional customers - Pre-deposit ordered: CESTAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</STRONG> appellant is a manufacturer of packaged drinking water which commodity is notified for assessment u/s 4A of the CEA, 1944 i.e. on MRP basis. The case against the appellant is that the appellant adopted an MRP of Rs. 30/- for the period prior to 20th July 2011, Rs.35/- as MRP for the period 31/07/2011 and MRP of Rs.50/- for the period 01/08/2011 onwards, so as to be within the purview of exemption limit of Rs.1.5crore available to small scale manufacturers of excisable goods. </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 Revenue is under obligation to allow TDS Credit even if deductors have not issued TDS Certificates nor properly uploaded details in Form 26AS - YES: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</STRONG>, a company, had claimed TDS of Rs. 215163912, out of which claim of Rs. 1,65,20,93,44/- was made in the original return and further claim of Rs.14,271,296 was made in the revised return filed on 13.4.2009. Thereafter during assessment, assessee had made further claim of Rs. 35,683,272/- vide letter dated 28.12.2010. AO however gave TDS credit only to the tune of Rs 118,960,393/-. On appeal, CIT(A) directed the assessee to furnish all TDS certificates in original before AO, who was directed to verify the claim of credit of TDS and to allow TDS as per original challans available on record or as per details of such TDS available on computer system of the department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether Revenue is under obligation to allow TDS Credit even if deductors have not issued TDS Certificates nor properly uploaded details in Form 26AS. 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">Appellants are not having any tourist bus hence are not covered under scope of 'Tour Operator Service': CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants are not having any tourist bus. The appellants are giving only cabs. Therefore, the appellants are not covered under the scope of tour operator service. In view of this, the appellants are not entitled for the benefit of Notification 39/97-ST which covers only tour operator service. As the appellants are providing rent-a-cab service, therefore no infirmity in the impugned order whereby the demand is confirmed. In respect of penalty, as the appellants are registered as a provider of tour operator and paying tax accordingly and also filing statutory returns, therefore as per the provisions of Section 80 of the Finance Act, it is not a case for imposition of any penalties. </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><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>
</body>
</html>