TIOL-DDT 2251 · the untouched capture
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<p align="justify"><font 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 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><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><strong><strong><strong><strong><strong><strong><strong><strong><strong><img width="115" height="125" border="0" align="right" src="image/ddt/10yearsDDT.jpg" alt="" /></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><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 width="175" hspace="5" height="120" border="0" align="right" src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" /></a></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></font><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2251</font><font size="2"><br>
</font></strong><font size="2"><strong>13.12.2013<br>
Friday</strong></font></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Bench Vs DR - ITAT imposes costs on CIT (DR) -Contempt Proceedings to follow </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a rather unfortunate incident, the Delhi Bench of the ITAT imposed a cost of Rs. 1000/- on a CIT (DR) with contempt proceedings to follow. Here is the sequence of events as described by the Tribunal:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>When the Bench set for hearing at 10.30AM on 20-11- 2013, to our surprise, none of the DR was present in the courtroom. It may be worthwhile to mention that about 33 appeals were fixed for hearing. With the current pendency an adjournment takes about 4 to 5 months' period for fixation of any appeal for next hearing in normal course. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Thus the situation before us as it stood, neither any DR was present in the courtroom nor any application for adjournment from the revenue's side. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>At about 10.50 AM Shri D.K. Mishra CIT(DR) entered the courtroom in a huff and gave a vague reason for his absence that he was held up some where. Observing that Shri D.K. Mishra is now present, this 263 matter, which was to be argued by him was called out. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Shri D.K. Mishra straightway replied that he has not seen the file and not prepared the case. He was reminded that being CIT (DR), In-charge of the Bench it was not fair on his part to come late without intimation; don't read the file; not apply for the adjournment and make the whole process come to stand still. Shri Mishra then asked for more time to go through the file. In the interest of justice the Bench was kind enough to grant him time to go through the file. In the meanwhile the case of M/s Laksons Footwear P. Ltd. was also proceeded ex parte qua the department, as the Sr. DR was also not present and there was no adjournment application. It may be pertinent here to mention that vide order dated 20-11-2013 the Bench has expressed its displeasure towards the DR's of "D" Bench. After reading the file, Shri Mishra offered himself for the arguments. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>After the assessee completed the arguments Shri Mishra replied to it. However, he wanted to cite the case laws whose names or citations neither he remembered nor had the copies of the citation. He contended that they will be filed in a day or two. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>It was pointed out to him that it is not fair on his part not to remember the cases, the exact citation and the proposition laid down by these judgments. It was not a fair way to argue that the case laws not remembered by him will be submitted subsequently. He was told that in this situation how the assessee's counsel will counter the case laws which are not being given, nor properly represented and cited. It will not be possible to allow him time to file list, gist and citations of case laws subsequent to hearing which are neither heard by us nor put up to assessee for reply thereon. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>At this juncture Shri Mishra in a malicious and contemptuous manner alleged that the "Bench is hurrying the justice and burying the justice”. Such type of unprovoked utterances from a Commissioner of Income Tax, who is the"D"Bench incharge officer from the Revenue's side came as a shock to the Bench and cannot be taken lightly. It appears that Mr. Mishra is not aware of his responsibilities, court discipline, procedure and proper court mannerism. His accusation on the Bench that it was hurrying justice and burying the justice is totally irresponsible, contemptuous and malicious allegation and totally against the glaring facts and proceedings which happened in the open court. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Out of 33 appeals that were listed, the Bench had granted adjournments in 31 cases mainly at the request of the ld. D.R., though the half heartedly written adjournments were filed by the department at about 11.30 AM on that day, which itself was against the prescriptions of ITAT Rules 1963. This demonstrates that Bench was kind and tolerant to the department despite these glaring irregularities. On one hand Bench tried to help and redeem the objectionable situation in which the department was put by Shri D.K. Mishra i.e. being not present in the court room, not filing any adjournment applications and least of all not putting any representative to explain all these anomalies. On the other hand to cover up his fallacies Shri Mishra ventured to pounce on the court by making such false, malicious and contemptuous allegations. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Shri Mishra was told that it was not the Bench which was hurrying or burying the justice but it was he who was obstructing the process of dispensation of justice. At the first instance he comes late in the Bench, does not come prepared with the case files, makes the entire court room and litigants wait without justification. The Bench showing kindness and in the interest of justice passes over the matter, after coming the CIT (DR) without remorse, says that he was held up and not studied the files, some time may be given, which was also given. Thereafter he was not in a position to cite the case laws and wanted to press his insistence that he will name, cite and give the proposition of case laws later on. He was clearly told that it is not the Bench which was hurrying or burying the justice but rash and contemptuous conduct of Shri Mishra which was obstructing the sacrosanct object of dispensation of justice. His contemptuous behaviour was proposed to reprimanded and fit to be visited with cost and appropriate consequential action. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>In view of the foregoing facts and circumstances we find Shri Mishra's total behaviour as unfortunate, contemptuous and condemnable and deserves to be visited with appropriate action to inculcate sense of judicial discipline and awareness of responsibilities of duties and further to protect the dignity of the court, which stands offended by the contemptuous conduct of Shri D.K. Mishra. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>After the Bench rose and retired to the Chamber of Sr. Member for discussion of the heard cases and signing of the judicial proceedings, Shri Mishra barged into the Chamber of Sr. Member without asking permission and threatened that the Bench has insulted him and that he is going to lodge complaint. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>In order to pacify, he was offered to sit and have a cup of tea which the Members of the Bench were sharing. He did not show any response to this kind gesture being extended by the Members of the Bench. Looking at his hostile demeanour he was told that it was not permitted to enter in the Chamber of the Judges without intimation and hurl such threats of complaint to intimidate the bench. In our view his over all actions, behaviour and utterances amount to contempt of court. Any party to the litigation has no authority to enter the Judge's room without permissions and endeavour to intimidate and put up such threats. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#FF0000">In view of the entirety of facts and circumstances we have no hesitation but to impose costs of Rs. One thousand on the delinquent CIT (DR) Shri D.K. Mishra which should be deducted from his salary. The Registry is directed to forward the copies of this order to CIT(DR)-I, CCIT In-charge; Chairman CBDT for record purpose and take appropriate action including placing the observations in his service record at their end.</font></em></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Separate and appropriate action for initiating contempt of court proceeding will be taken in due course after giving Mr.D.K. Mishra CIT(DR) adequate opportunity of being heard</em></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>. </em></font></p>
<p align="justify"><font color="#277BBA" size="2" face="Verdana, Arial, Helvetica, sans-serif">This is really an unfortunate and avoidable situation. The DRs in the Tribunal work under difficult situations compared to their counterparts in the field and they deserve all sympathy -at the same time, contempt of the Court cannot be tolerated. Anyway let us hope such incidents don't recur. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(See <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTEwOTg=" target="_blank"><font size="1">2013-TIOL-1058-ITAT-DEL</font></a>)</font></strong></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Declarations rejected under ST VCES, 2013 are appealable - Punjab & Haryana HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN DDT </strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTc2NjU="><strong>2097 </strong></a>dt. 03/05/2013, in the context of section 96(2) of Finance Bill, 2013 relating to the ST VCES, 2013 we had raised the following query -</font></p>
<blockquote>
<p align="justify"><font color="#CC0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"However, a reading of the sub-section (2) indicates that inspite of these exclusions if a person makes an application/declaration, such a declaration can be rejected by the designated authority after giving reasons therefor. The usage of the word ‘order' means the principles of natural justice have to be followed. So if the declarant is unhappy with this order can HE GO IN APPEAL AND IF SO TO WHICH AUTHORITY? THE PROVISIONS OF THE SCHEME ARE SILENT IN THIS REGARD AND NEED CLARITY. Assuming that the declaration is rejected can the evidence be used against the person? Suppose the designated authority wrongly allows an applicant to file a declaration under section 96 of the VCES though he is hit by the debarring clauses. Can this order be reviewed by the Commissioner or any authority?"</em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The CBEC had in </em><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2013/sercir170.htm"><strong>Circular No. 170/5/2013 - Service Tax, Dated: August 08, 2013</strong></a>, clarified thus -</font></p>
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<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>13 </em></font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>What is the appeal mechanism against the order of the designated authority whereby he rejects the declaration under section 106 (2) of the Finance Act, 2013? </em></font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The Scheme <strong><font color="#FF0000">does not</font> </strong>have a statutory provision for filing of appeal against the order for rejection of declaration under section 106 (2) by the designated authority. </em></font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thankfully, a declarant who wanted to have the <strong><em><font color="#FF0000">VCES laddoo</font> </em></strong>but whose Form VCES-1 was rejected by the designated authority, filed a Civil Writ Petition before the Punjab & Haryana High Court against this 'order' and the High Court in its order dated December, 9, 2013 has held thus -</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#663399">"The impugned order, in our considered opinion, is appealable, under Section 86 of the Indian Finance Act, 1994, particularly as the scheme under which the petitioner has applied, is part and parcel of the aforesaid Finance Act, by virtue of the Indian Finance Act, 2013. </font></em></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>We are unable to accept correctness of instructions issued by the Central Board of Excise and Customs, for the simple reason that after incorporation of the Service Tax Voluntary Compliance Encouragement Scheme into the Finance Act, all other provisions of the Act except to the extent specifically excluded, apply to proceedings under the scheme. The impugned order passed by the Deputy Commissioner of Central Excise and Service Tax would necessarily be appealable under Section 86 of the Indian Finance Act, 1994…"</em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We could not hold this order back even for a day so we carried it yesterday evening. Please see <strong><font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTEwOTc=" target="_blank">2013-TIOL-1016-HC-P&H-ST</a></font></strong>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is hoped that the benign Board takes this order in the right spirit and finds a solution, if need be, by invoking the provisions of section 113 of the Finance Act, 2013. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">After all, at the core of everyone's heart is that the ST VCES, 2013 should be a success story just like it is for all those individuals shown in the advertisement blitzkrieg. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Acceptance of LUT in place of BG for export warehousing </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> invites attention to Circulars No. <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=NDY0MA==" target="_blank">579/16/2001-CX</a></strong> dated 26.06.2001 and <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=NDY0Mg==" target="_blank">581/18/2001-CX</a></strong> dated 29.06.2001, which prescribes conditions, procedures and safeguards applicable for storage in a warehouse registered at such places as may be specified by the Board and export therefrom.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And makes the following changes -</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <em>In paragraph 6 [Period of warehousing] of the Circular No. <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=NDY0MA==" target="_blank">579/16/2001-CX</a></strong> existing clause (a) and clause (b) are replaced to read -</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(a) Warehousing of goods shall initially be allowed for a period upto six months, which may be further extended by the Assistant /Deputy Commissioner, each extension being for a period not exceeding six months, subject to the verification that the goods have not deteriorated in quality. The maximum period, for which goods may be left in the warehouse in which they are deposited, or in any warehouse to which such goods have been removed, shall be three years from the date on which such goods were first warehoused. Excisable goods shall be deemed to be cleared for home consumption on expiry of the warehousing period including the extensions granted, if any. Duty and interest @ 24% per annum shall be charged on such deemed removal. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(b) If the registration of a warehouse is revoked or suspended, the excisable goods lodged therein shall either be cleared for home consumption on payment of duty and interest @ 24% per annum or shall be removed to another warehouse without payment of duty. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ <em>So also, paragraph 3.2 and paragraph 4.2.1 [Furnishing of Bank Guarantee] in the Circular No. <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=NDY0Mg==" target="_blank">581/18/2001-CX</a></strong> are amended as follows: </em></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) Paragraph 3.2: After the words "backed by twenty five percent security of the bond amount " the words "in the manner as prescribed in paragraph 4.2" shall be added. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(ii) Paragraph 4.2.1: A proviso, as follows, shall be inserted at the end of the paragraph. </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Provided that where the exporter is a manufacturer and a Status Holder with a clean track record, the requirement to furnish security equal to 25% of the bond amount shall be replaced by the requirement of furnishing an LUT initially for a period upto six months which may be extended by a further period not exceeding six months. Further extensions in the warehousing period in terms of paragraph 6(a) of the Circular No. 579/16/2001-CX dated 26.06.2001 shall be allowed to such exporter only on furnishing security of 25% of the bond amount. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Board also feels that there is a need to amend the terms "Super Star Trading House" or "Star Trading House" in the Circular No.<a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=NDY0Mg==" target="_blank"> <strong>581/18/2001-CX</strong></a> and replace them with the current nomenclature "<em>The exporters who are Status Holder under FTP - 2009-14</em>". So, the paragraph 2(1) of the Circular is amended accordingly. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The effect of this amendment is that Export Warehousing facility would become available to all Status Holders under FTP of 2009-14.</font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Hope the trade is happy.</em></font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2013/excircular976.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Circular 976/10/2013-CX, Dated: December 12, 2013</strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Reprieve for Nokia (and its employees) from Delhi HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SOME</strong> 30,000 employees of Nokia's Sriperumbudur factory heaved a sigh of relief yesterday as the Delhi High Court revoked the Income Tax Department's freezing the bank accounts of Nokia. The Delhi High Court yesterday permitted sale of assets by Nokia India to Microsoft/Microsoft International subject to fulfilment of certain conditions, which includes a deposit of at least Rs.2250crores in an escrow account.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You can get the full High Court order at <a href="http://www.taxindiainternational.com/case_lawDesc.php?qwer43fcxzt=Mzc1NQ=="><strong><font size="1">2013-TII-54-HC-DEL-INTL</font></strong></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DRI Founding day Celebrations</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DRI</strong> was founded on December 4, 1957. Yesterday, they celebrated it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Some Quotable quotes from the speeches -</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Finance Minister P. Chidambaram </em> -</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Need for recruiting the right type of persons </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Use latest technology for intelligence gathering and information analysis </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Intelligence agencies must learn to speak to each order </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ There is so much information available but they remain in silos </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Finance Secretary, Sumit Bose </em> - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Maintain hard work and integrity </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Chairperson, CBEC, Praveen Mahajan </em> -</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Work relentlessly in a fair, transparent and non-adversarial manner </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Coffee Table book released is titled <font color="#993333">"<em>Where the mind is without fear </em>…"</font></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">We all know who should be feared!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Also read our <strong>Breaking </strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=19266"><strong>News</strong></a>.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT Cartoon </strong></font></p>
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<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"> – Monday's cases</font></strong></font></strong></font></p>
<p align="justify"><strong><font color="#660099" 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">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Providing Advisory services is Management Consultancy Service -Demand upheld & appeal dismissed: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> dispute in the case is regarding leviability of Service Tax under "Management Consultancy Service" in respect of transactions carried out by the appellant during the period July 2000 to June 2001. In all the transactions the particulars of services given in the Bill/Invoice or mandate/agreement letter refer to "corporate advisory services" viz. assistance in due diligence process to clients, assistance in proposed divestment and corporate advisory services in connection therewith, advisory services to substantial acquisition of share of listed companies, etc. </font></p>
<p align="justify"><strong><font color="#660099" 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 makes payments to builder for purchase of flat but builder fails to give delivery as per scheduled time, Sec 54F benefits are available even in such case - YES: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee had shown income from house property, business and other sources. The assessee sold house on which LTCG was shown at Rs.31,00,369/-. Deduction u/s 54 was claimed for entire capital gain on account of investment in house at Bangalore. Assessee also sold a plot through two sale deeds for a total sale consideration of Rs.24,81,000/-. LTCG was shown at Rs.19,89,914/-. Deduction u/s 54F was claimed for this entire amount on account of investment in the same house at Banglore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether when the assessee makes payments to a builder for purchase of flat but the builder fails to give delivery as per scheduled time, Sec 54F benefits are not available in such a case. And the verdict favours the assessee. </font></p>
<p align="justify"><strong><font color="#660099" 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">Even if appellant has paid duty wrongly or illegally, once same has not been refunded, they cannot be denied CENVAT credit -Pre-deposit waived and Stay granted: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNDISPUTEDLY</strong> the applicants have paid duty on the intermediate product used in the manufacture of final product and they have paid duty while clearing these new products to their other units. Even if they paid duty wrongly or illegally, as per the Hon'ble High Court decision in the case of Mahindra & Mahindra wherein it was held that if the duty illegally paid and once the same has not been refunded they cannot be denied the CENVAT credit. In these circumstances the applicants are able to make out a prima facie case for waiver of pre-deposit of dues adjudged against them. </font></p>
<p align="justify"><font color="#660099" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Monday for the judgements</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday 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 weekend.</strong></font></p>
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