TIOL-DDT 2240 · the untouched capture
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<!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 color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><strong><strong><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></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></font><font color="#663399" size="3">TIOL-DDT 2240 </font><br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>28.11.2013 <br> Thursday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Handbook for Personnel Officers 2013</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DOPT</strong> has brought out a wonderful guide - Handbook for Personnel Officers 2013 – which would be of immense use to administrators and employees of the Central Government. Every aspect of an employee's career with the relevant rules and instructions are chronicled in an easy and simple manner. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is a must book for all Government employees. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Some samples from the book: </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>5.11.9 Claims through Marriage: </strong>No person who was not a member of Scheduled Caste or a Scheduled Tribe or Other Backward Class by birth will be deemed to be a member of Scheduled Caste or Scheduled Tribe or Other Backward Class merely because he or she had married a person belonging to a Scheduled Caste or Scheduled Tribe or Other Backward Class. On the other hand a person who is a member of a Scheduled Caste or a Scheduled Tribe or an OBC would continue to be a member of that Scheduled Caste, Scheduled Tribe or OBC, as the case may be, even after his or her marriage with a person who does not belong to a Scheduled Caste or a Scheduled Tribe or an Other Backward Class. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>5.11.10 Cases of Conversion and Reconversion: </strong>Scheduled Caste person getting converted to a religion other than Hinduism, Sikhism or Buddhism would cease to be a member of Scheduled Caste. However, if he reconverts himself to his original religion he will be deemed to have reverted to original caste if accepted by the members of that particular caste as one of them. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>31.1.3 Posting of Husband and Wife at the same Station: </strong>When both spouses are in same Central Service or working in same Department and if posts are available, they may mandatorily be posted at the same Station. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>30.4. Joining Time </strong>: One day joining time is admissible to join a new post within the same station or which does not involve a change of residence. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">51.1.2 <strong>prior sanction of central government necessary for accepting commercial employment </strong>: A pensioner, who immediately before his retirement was a member of Central Service Group ‘A' is required to obtain previous sanction of the Central Government for accepting commercial employment before the expiry of one year from the date of his retirement from service. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">51.3 <strong>consequences of not obtaining prior sanction </strong>: If a pensioner takes up commercial employment without the prior permission of the Central Government or commits a breach of any conditions subject to which permission has been granted to him to take up the employment, the Central Government is competent to withhold or withdraw pension whether partly or in full for such period as may be specified in the order. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/govt_hand_book.pdf"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Handbook for Personnel Officers 2013 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Scheduled formulations subjected to re-printing, re-labeling, re-packing or stickering in pursuance of DPCO provisions granted CE exemption</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Central Government has granted conditional exemption to '<strong><em>scheduled formulations</em></strong>' as defined under the <strong>DPCO, 2013 </strong>falling under Chapter 30 of the CETA, 1985 and which are subjected to <strong>re-printing, re-labeling, </strong> <strong>re-packing </strong>or <strong>stickering, </strong>in a premises which is <strong>not registered </strong>under the CEA, 1944 or the CER, in pursuance of the provisions contained in the said DPCO, from whole of the duty of excise leviable thereon subject to the following conditions, namely, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The scheduled formulations, in respect of which the manufacturer is liable to ensure that the Maximum Retail Price (MRP) of such formulation does not exceed the ceiling price within forty-five days of the date of notification of the ceiling price by National Pharmaceuticals Pricing Authority (NPPA), have been removed from the place of removal on payment of appropriate duty; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The re-printing, re-labeling, re-packing or stickering, of the scheduled formulations results in <strong>downward revision </strong>of the MRP; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) In respect of a given scheduled formulation, the exemption shall be valid for a period of forty-five days from the date of publication of the notification of the ceiling price in respect of such scheduled formulation by NPPA or such extended period not exceeding <strong>thirty days </strong> as may be permitted by the Department of Pharmaceuticals; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xxxxxxxxxx </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xxxxxx </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, for the words <strong>thirty days </strong>the words <strong> "ninety days" </strong>are substituted.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is slightly complicated. Please see <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTgzMTU="><strong>DDT 2160 31.07.2013</strong> </a> and <a href="http://www.taxindiaonline.com/RC2/print_story.php?newsid=18355"><strong>Scheduled Formulations - Unmaking of Notification No.22/13-CE</strong></a>. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2013/etariff13_29.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 29/2013-CX, Dated: November 26, 2013 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Bank Realization Certificate - Left hand in the government not knowing or pretending to be not knowing what the right hand is doing. </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> seems exports to Nepal are badly hit because the Customs Department is insisting on Bank Realization Certificate (BRC) for exporters for claiming drawback. The Banks have stopped issuing of BRCs on instructions from DGFT as electronic Bank Realization Certificate was made mandatory with effect from 17.08.2012. <strong>(Please see <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTYwNjQ=">DDT 1960 </a>) </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">According to EEPC,<em> "This is a classic case of the left hand in the government not knowing or pretending to be not knowing what the right hand is doing. In this avoidable bargain, exporters are sufferers with the result that the country is losing precious market in Nepal, which is then going to China." </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exporters simply do not know where to go when Customs officers demand physical/manual BRCswhich Banks simply do not give. That is the DRAWBACK. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VCES - Tax Dues - Clarification </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> concerned Netizen writes in: </font></p> <p align="justify"><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">Sir, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is with reference to the Board's clarification on VCES reported in DDT on <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=19125">26.11.2013 </a>: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax along with interest paid before the Scheme came into effect: As no "tax dues" is pending in such case, declaration cannot be filed under VCES. However, there may be a case for taking a lenient view on the issue of penalties under the provision of the Finance Act, 1994. In this regard attention is invited to section 73 (3) and section 80 of the Finance Act, 1994. </font></p> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this context, reference is invited to the Section 105 (e) of the Finance Act,2013: </font> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">105 (e) <em>"Tax dues" means the service tax due or payable under the Chapter or any other amount due or payable under section 73A thereof, for the period beginning from the 1st day of October, 2007 and ending on the 31st day of December, 2012 including a cess leviable thereon under any other Act for the time being in force, but not paid as on the 1st day of March, 2013. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be seen that the definition of tax dues as per Finance Act, 2013 clearly covers any amount due or payable during the period 01.10.2007 to 31.12.2012 and not paid as on 01.03.2013. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It means the tax dues paid after 01.03.2013 are eligible for VCES, but the Board is repeatedly clarifying that any amount paid before enactment of VCES/scheme came into effect is not eligible for VCES. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">VCES scheme came into effect from 10.05.2013(date of Finance Act,2013) and VCES Rules were notified w.e.f 13.05.2013. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The departmental officers are not accepting the payment made before 13.05.2013 under VCES on the basis of referred circular. Can provisions of Finance Act be overruled by Board's circulars? Perhaps yes, as it bears signature of a departmental officer, whereas there is no visible signature on the Finance Act,2013. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any remedy? </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span"></font> <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 align="justify"><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"><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"></strong></font></strong></font><font color="#663399">Service Tax </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Stay and Waiver of pre-deposit: EPC need not be the whole project, it can also be a part - Person includes Government - Pre-deposit ordered: CESTAT </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong>is a Stay and waiver of pre-deposit of Service Tax of Rs.3,87,51,973/- for <em>"Commercial or Industrial Construction Service"</em>, for the period December 2005 to September 2009 and service tax of Rs.28,94,07,221/- under the taxable <em>"Works Contract Service"</em>, for the period June 2007 to September 2009. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The petitioner during the period in question entered into several contracts, 12 in number; 11 pertaining to provision of the taxable 'works contract service' entered into with the Irrigation and CAD Department of the State of Andhra Pradesh and one contract for the taxable "industrial or commercial construction" service pursuant to a contract with the Andhra Pradesh Power Generation Corporation Ltd. (APGENCO). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is noted that the impugned order to the extent it confirms the service tax demand in relation to the taxable <em>"works contract service"</em>, is covered in favour of Revenue by the judgment of this Tribunal in <em>Ramky Infrastructure Ltd. vs. C.S.T., Hyderabad - </em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2012/2012-TIOL-613-CESTAT-BANG.htm"><strong><em><font size="1">2012-TIOL-613-CESTAT-BANG</font></em></strong></a><em>. </em></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Whether doctrine of 'source of source' and 'origin of origin' can be applied universally - NO, not without reference to factual matrix: Delhi High Court </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether it is the duty of Revenue to adduce evidence to show from what source, income is derived; Whether submission of PAN is a sufficient compliance of proving genuineness of an assessee; Whether the doctrine of <em>"source of source" and "origin of origin" </em>can be applied universally and Whether creditworthiness of an assessee can be proved by mere issue of a cheque or by furnishing a copy of statement of bank account. And the verdict goes in favour of Revenue. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Central Excise </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Manufacture - cutting of carpet rolls into smaller sizes and subjecting such cut sizes to a process of stitching linings at the edges would not amount to manufacture: CESTAT LB </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> application of the generic principles regarding identification of what processes amount to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944, illustrated by decisions of the Supreme Court and of the Larger Bench of this Tribunal, held that the cutting of carpet rolls into smaller sizes and subjecting such cut sizes to a process of stitching linings at the edges would not amount to manufacture nor result in emergence of a distinct independent commodity, exigible to duty under provisions of Section 2(f) of the Central Excise Act, 1944. </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"><strong>Have a Nice Day </strong></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> </body> </html>