TIOL-DDT 2223 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2223 </font><br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>04.11.2013 <br>
Monday</strong></font><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></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Certification of invoices for supply of goods from DTA to EOUs - DGEP clarifies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REPRESENTATIONS</STRONG> have been received from DTA Units that <strong>some of the Central Excise officers are not endorsing invoices </strong> of supplies of exempted/non-excisable goods made to EOU /STP Units inspite of procedure prescribed under <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2009/cuscir09_010.htm" target="_blank">Circular No. 10/2009-Cus dated 25.02.2009</a></strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 2 of the above circular states that <em>on many occasion, however, EOUs procure duty paid/exempted/non-excisable goods. These goods though not procured under CT-3/ ARE-3, if otherwise eligible in terms of <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=29&filename=notification/excise/2003/etariff03_022.htm" target="_blank"><strong>notification 22/2003-CE</strong></a> read with para 6.6.1 of HBP, are also to be endorsed as a proof of supplies made, by the officer-in-charge of EOU after verification and due accountal for deemed export benefits. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While covering the above Circular, <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=8661" target="_blank">DDT 1061 - 26.02.2009</a></strong>, observed,</font></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Now the DGEP has prescribed a simple procedure if an EOU needs such an endorsement. </font></p>
</font>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">1. Maintain detailed accounts of the receipt, consumption, disposal of the goods received. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">2. File an intimation with the Superintendent of Central Excise within one day of the receipt of the goods with duplicate copy of the invoice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">3. The Superintendent will depute a bond officer who will conduct a physical verification of the goods and records and will submit a report to the Superintendent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">4. The Superintendent will endorse the invoice and keep a copy in the Range records.</font></p>
</blockquote>
<div align="justify"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">Are we back to the Physical Control days? It is not mentioned as to what would happen if the Bond Officer does not turn up for verification and if the EOU gets an invoice every day, will the Central Excise officer visit the EOU every day. <strong><em>Does EOU stand for Excise Officer's Unit?</em></strong></font></div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the DGEP wants the Commissioners to bring to their notice if any problems are being faced in endorsing the invoices of supplies of exempted/non-excisable goods made to EOU /STP Units by DTA Units as per the procedure prescribed under <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2009/cuscir09_010.htm" target="_blank"><strong>circular No. 10/2009-Cus, dated: 25.02.2009</strong></a><strong>.</strong> </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/circular_01_2013.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGEP Letter in F. No.DGEP/EPU/32/2007/3246, Dated: October 09 2013. </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Dr Sreekumar Menon is, DG, NACEN - IRS Association Request Considered </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>President of the IRS Association had in a recent letter to the Chairperson, CBEC requested her to post as DG, NACEN <strong>an officer having aptitude for training and willing to stay on the Faridabad Campus. [</strong>Please see <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg4OTI="><strong>DDT 2215 - 23.10.2013</strong></a><strong>]</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board, FM and whoever else are concerned and connected with the posting of Chief Commissioners have positively responded to the request of the Association. They have posted the most eminently suitable Chief Commissioner for the job. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dr. G. Sreekumar Menon who takes over as DG, NACEN today is a highly talented and qualified officer, most eminently suited to head NACEN. Highly qualified academically with a doctorate, a prolific writer with over thirty articles in <strong>TIOL</strong> and several in ELT and other publications; a more prolific teacher - he has rich experience in lectures in NACEN and its RTIs and other premier institutions like National Police Academy, Dr.Menon's posting as head of NACEN is most apt. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We hope he would be able to bring in substantial changes in NACEN to justify the name it has as a centre of excellence. At least to start with, we hope he would be an officer who would be willing to stay in Faridabad as requested by the Association. Not being a Delhi based officer, he shouldn't find it difficult. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The two most important institutions connected with the CBEC are NACEN and CESTAT and unfortunately both are the most neglected. For example, recently the Commissioner (AR) in Bangalore CESTAT was promoted and posted as DG, Safeguards and they have not posted anyone as AR in Bangalore CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NACEN is the starting point where the future leaders of the Department are made and it should not be a third rate factory rolling out sub-standard IRS officers who cannot be reigned in the field. Discipline is sadly a casualty in the academy, especially when the probationers go for their field training. A probationer once told me that she does not attend classes in NACEN as she would sit in her room to prepare for the next year's Civil services Examination to try her luck to get into the IAS. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The probationers should have a short stint in a Judicial Academy and they should be taught thoroughly to draft Show Cause Notices and Adjudication Orders; maybe there should be a test on SCNs and Adjudication Orders every week. They should all understand what a ‘Speaking Order' is. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It should be drilled into the minds of the probationers that they are Public <strong>Servants </strong> and not masters of everyone and everything they survey on. The concept that the two-year stint in NACEN is a paid excursion should change and it should be understood clearly that NACEN is a premier academy where the probationers undergo a strenuous programme to become model officers. YOU SHOULD BE TOUGH WITH THEM. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NACEN should also have a relook on the Induction Course for Inspectors. Now, a newly recruited Inspector is given training for about forty days and dumped into the department with hardly any knowledge about the department or the laws they are supposed to enforce. The Inspectors' induction course should be at least for a period of one year. And a great many of the recently recruited inspectors do not know English and for some strange reason, our laws and judgements are in English, access to which is beyond the reach of these new inspectors. Do have a crash course in English for them - maybe you can tie up with the English and Foreign Languages University to design a short course. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dr.Menon has a tough job ahead - we wish him all the best.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - Export Policy of Onions - MEP at 1150 USD </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</STRONG> has amended the para 2 of <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2012/dgft12not003.htm" target="_blank"><strong>Notification No.03 (RE-2012)/2009-14, dated: 29.06.2012</strong></a> read with <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not041.htm" target="_blank"><strong>Notification No.41(RE-2013)/2009-14, dated: 19.09.2013</strong></a> with immediate effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of all varieties of onions will be subject to a Minimum Export Price (MEP) of USD 1150 per MT. It was 900 USD in September.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Onions can decide the fate of the political parties during elections. At least in Delhi, Congress is now in deep trouble with onion prices beyond the imagination of aamadmi. How many grams of onions per day will the intellectual giants sitting in the Planning Commission allow an ordinary Indian to declare him above the magical poverty line? Onions are no more tear-jerking commodities - only their prices are. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not049.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Notification No. 49 (RE-2013)/2009-2014,Dated: November 01 2013</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IBM gets Rs. 5300 Crore Income Tax Demand </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> World Press has reported that IBM India has been issued with a demand of over Rs. 5300 Crores on the allegation that IBM had under reported export earnings. IBM does not agree with the demand and promises to aggressively defend the demand. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Stay order of CESTAT - Appeal or Writ? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YOU </strong>are aggrieved by a Stay order of the Tribunal - suppose the Tribunal asked you to pre-deposit the duty and interest (as it has done in many cases recently). Now what is your remedy, especially if you have no money to deposit?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can you appeal to the High Court? Is the Tribunal's Order appealable? Remember you can appeal to the High Court against a CESTAT order only on a question of Law. What Question of Law can you frame against an interim order requiring pre-deposit? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can you approach the High Court on a writ petition? Is a writ maintainable if there is an alternate remedy? If appeal is possible, will writ be admitted? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> I will be grateful to have your views latest by tonight.</font></p>
<p align="center"><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/DiwaliMilan.jpg" alt="" width="400" height="346" hspace="5" border="0" align="center"></font></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></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appeal to Commissioner (Appeals) - Amendment of Section 85 of Finance Act, 1994 - Time for filing appeal reduced to two months - Whether provision applicable for orders passed prior to May 28, 2012?: No: HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ORDER</strong> was passed by the original authority on March 27, 2012. Section 85 of Finance Act, 1994, was amended reducing time limit for filing appeals before the Commissioner (Appeals) from three months to two months. This provision came into force on 28.05.2012. Petitioner filed appeal after the amendment came into force on 28.05.2012 but within the condonable period of further three months. Authority rejected the appeal as barred by limitation applying the amended provision, which came into force on 28.05.2012.</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 assessee receives certain payments after deduction of tax at source and such deduction is deposited in Treasury, assessee can still write off such sum as short receipt merely because it did not receive TDS Certificates from payers - NO: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> questions before the Bench are - Whether expenditure incurred on issuance of shares is revenue in nature; Whether when the business of the assessee is continuing, merely writing off of the various security deposits made to Electricity Board, Telecom Department and Customs for issuance of import licence in the books is allowable - Whether when the assessee receives certain payments after deduction of tax at source and such deduction is deposited in the Treasury, the assessee can still write off such sum as short receipt merely because it did not receive TDS Certificates from payers. And the verdict goes against 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">CENVAT - notwithstanding fact that testing has been done in respect of product yet to be manufactured by appellant, it does not disentitle appellant to credit - <em>Prima facie</em> case in favour - Pre-deposit waived and stay granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellant is a manufacturer of drugs and pharmaceuticals. They have several manufacturing units situated at Aurangabad, Daman, Chikhalthana, Ankleshwar & Nalagarh, Himachal Pradesh. They have a research centre at Aurangabad. The appellant undertook certain technical testing and analyzing services abroad and discharged the service tax liability of Rs.12,83,884/- during May 2006 on reverse charge basis.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The said service tax was distributed by the appellant's Head Office at Mumbai to their unit at Daman. Revenue objected to this distribution on the ground that testing and analysing service has been availed in respect of a product yet to be manufactured by the appellant and it is not evident that the product is manufactured at Daman and, therefore, the distribution of credit to Daman unit was not in accordance with the law. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Tomorrow for the judgements </strong></font></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"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
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