TIOL-DDT 2252 · 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 2252</font><font size="2"><br>
</font></strong><font size="2"><strong>16.12.2013<br>
Monday</strong></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Trusts evading taxes - Income Tax Department casual - CAG Fumes</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> its Report No. 20 of 2013 submitted top Parliament, the CAG has come down heavily on the Income Tax Department for its laxity in dealing with Trusts - not all that charitable. It is a mandatory requirement for charitable trusts/Institutions (Trusts) to get registration under Act for claiming exemption. The CAG scrutinized 90,000 cases in which the Income Tax Department (ITD) granted registration and observed several mistakes, some of which are: </font></p>
<p align="justify"><table width="100%" border="1" align="center" cellpadding="3" cellspacing="0" bordercolor="#FFFF00" bgcolor="#FFFF00">
<tr>
<td><p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD granted registrations/approvals/notifications to the 799 Trusts without verifying necessary documents such as copy of the Trust Deed, proper clauses in the Trust Deed, audited accounts etc. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD granted approvals/registrations/notifications in 457 cases in which there was no dissolution clause in the Trust Deed. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD granted registrations/approvals/notifications to 73 Trusts having no PAN which is in contravention of the provisions of Act. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD granted approvals /registrations In 60 cases Involving tax effect of 87.33 crore irregularly to Trusts whose objects were not charitable in nature. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">There was no correlation in granting or rejecting approvals/registrations among different authorities. ITD did not take action to cancel registration in three cases Involving tax effect of Rs. 4.94 crore. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD granted registration/exemption in 161cases irregularly involving revenue impact oft 24.23 crore with retrospective effect contravening provisions contained in Act. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">There was a delay of more than 6 months to 24 months beyond stipulated period in granting approvals/registrations/notifications in 594 cases. The delay on the part of ITD resulted in deemed approval, to Trusts which were otherwise not eligible. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD allowed irregular exemptions involving tax effect of 8.88 crore to 53 Trusts without granting registrations /approvals/notifications. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD allowed exemptions In 72 cases Irregularly Involving tax effect of Rs. 8.88 crore despite rejection of registrations/approvals by the competent authority. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD allowed exemptions in 9 cases irregularly u/s 10(23C) (iiia)/(iiiad) involving tax effect of 2.39 crore though the gross receipt exceeded one crore. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif">ITD granted exemptions in 117 cases irregularly without submission of audit reports with the returns. </font></p></td>
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</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From CAG's Report. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value of Gold reduced </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Government has decreased the Tariff value of Gold from 405 USD to 398 USD per 10 gms and increased that of Silver from 642 to 643 USD per kilogram with effect from 13.12.2013. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">The <em>"No change"</em> remark does not appear against any item in any of the three tables in the notification because in respect of all other items there is a change in the Tariff Value. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tariff values as on <strong>29 .11.2013 </strong>and with effect from <strong>13 .12.2013 </strong>are as under: </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 1</strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td width="22%" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tonne) <br>
from 29.11.2013 </font></p></td>
<td valign="top"><p align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD(Per Metric Tonne) <br>
from 13.12.2013 </font></strong></p></td>
</tr>
<tr bgcolor="#FDD0D7">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(1) </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(2) </strong></font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(3) </strong></font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(4) </strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">914 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>912 </strong></font></p></td>
</tr>
<tr bgcolor="#FDD0D7">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>2 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">941 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>947 </strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palm Oil </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">928 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>930 </strong></font></p></td>
</tr>
<tr bgcolor="#FDD0D7">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>4 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">949 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>954 </strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>5 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 20 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palmolein </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">952 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>957 </strong></font></p></td>
</tr>
<tr bgcolor="#FDD0D7">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>6 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others -Palmolein </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">951 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>956 </strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>7 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507 10 00 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1025 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>995 </strong></font></p></td>
</tr>
<tr bgcolor="#FDD0D7">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>8 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404 00 22 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3906 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3930 </strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>9 </strong></font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1207 91 00 </font></p></td>
<td width="22%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy seeds </font></p></td>
<td width="19%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2781 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3154 </strong></font></p></td>
</tr>
</table>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 2 </strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FFFF00">
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>S. No. </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Chapter/ heading/ sub-heading/tariff item </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Description of goods </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value <br>
(USD) from 29.11.2013 </font></p></td>
<td width="0" valign="top" bgcolor="#FFFF00"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff value <br>
(USD) from 13.12.2013 </strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(1) </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(2) </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(3) </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(4) </strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold, in any form in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">405 per 10 grams </font></p></td>
<td width="0" valign="top"><p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>398 per 10 grams </strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td width="0" valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">642 per kilogram </font></p></td>
<td width="0" valign="top"><p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>643 per kilogram </strong></font></p></td>
</tr>
</table>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 3 </strong></font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#FFFF00">
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>S. No. </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Chapter/ heading/ sub-heading/tariff item </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Description of goods </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value (USD Per Metric Tons) from 29.11.2013 </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value (USD Per Metric Tons) from 13.12.2013 </strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(1) </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(2) </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(3) </strong></font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(4) </strong></font></p></td>
</tr>
<tr bgcolor="#FFFF00">
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">080280 </font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Areca nuts </font></p></td>
<td width="0" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1707 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1816 </strong></font></p></td>
</tr>
</table>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2013/cnt13_130.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 130/2013-Cus (NT), Dated: December 13, 2013 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appellant collected duty liability at the enhanced rate even though they were discharging duty liability only at lower rate - appellant is liable to discharge interest liability: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</STRONG> the period September 1982 to March 1985, the appellant manufactured "Liquid Hair Dye". The appellant sought classification of the said product under the erstwhile TI 68 @8% adv. whereas the department wanted to classify the product under TI 14F @105% adv. The goods were provisionally assessed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From the price declared, the assessable value was arrived at by the assessee after deducting duty at 105% adv. However, the appellant discharged the duty liability only @ 8% adv. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The dispute relating to classification went upto the Apex Court and vide order dated 09/07/2008 <font size="1"><em><strong>(<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2008/2008-TIOL-131-SC-CX.htm" target="_blank">2008-TIOL-131-SC-CX</a>)</strong></em></font> the classification was settled under Tariff Item 68. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thereafter, the provisional assessment for the period September 1982 to March 1985 was finalized. The adjudicating authority observed that since the appellant has sought deduction towards duty from the listed price @105% adv., whereas they paid duty only @ 8% adv. there is an under valuation of the goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly he re-determined the assessable value after fixing an abatement of 8% towards excise duty and confirmed a duty demand of Rs.20,84,956/-. He also confirmed interest liability u/s 11AB and imposed an equivalent amount of penalty u/r 173Q of CER, 1944. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the order was upheld by the Commissioner(A), the appellant is before the CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is submitted that the duty has been paid Under Protest. Further, there cannot be any interest liability as the legal provisions for the same were introduced only in the year 2001 under rule 9B; and if the provisions of s.11D are considered, interest provisions u/s 11DD came into effect only from 14/05/2003. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue representative submitted that the provisional assessment was finalized on 25/06/2012 and the duty liability was determined u/s 11A and hence interest is payable u/s 11AB. As for penalty, since appellant adopted two rates of duty, one for collection as part of the price form the customers and the other, a lower rate for payment of duty to the exchequer, imposition of penalty is warranted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench, inter alia, observed - </font></p>
<blockquote>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"5.2 …it is seen that the appellant did collect the duty liability at the enhanced rate applicable to tariff item 14F even though they were discharging the duty liability only at the lower rate applicable to Tariff Item 68. In other words, the appellant wants to enjoy the benefit of duty collection at the higher rate from the customers without remitting the same to the exchequer. Therefore, the appellant is liable to discharge interest liability on the duty amount inasmuch as they have collected the same from the customers without remitting to the exchequer. Therefore, prima facie we are of the considered view that the appellant had not made out a case for complete waiver of dues adjudged against them. Accordingly, we direct the appellant to remit the interest liability calculated at the applicable rate for the period 14/05/2003 the date on which the provisions of Section 11DD came into force till the date on which the duty liability was discharged…." </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See <u><font size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTExMjg=" target="_blank"><font size="1">2013-TIOL-1870-CESTAT-MUM</font></a></font></strong> </font></u></strong></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>Payment of Advance Tax - date extended </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> December instalment of Advance tax is required to be paid on or before 15th December, 2013 by the tax payers who are liable to pay advance tax. These taxpayers can make payments in the designated branches of the authorized banks, electronically or physically, as per law. Since the banks are closed on 15th December, 2013, being a Sunday, to facilitate payment of this instalment of Advance tax for the Financial year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order u/s 119(2(a) of IT Act, 1961 to extend the time limit to make such payments of Advance Tax, from 15th December, 2013 to 17th December, 2013. Taxpayers, therefore, can now pay their advance tax instalment by 17th December, 2013 without entailing any consequential interest for deferment. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2013/it13_extendOrder01.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>F.No.385/8/2013-IT(B) dated December 13, 2013. </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Establishment of new Income Tax offices </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Minister of State for Finance, Shri J.D. Seelam, in written reply to a question in the
Lok Sabha
informed -</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ There are no proposals for establishing new offices of Director General of Income Tax at various places in the country. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ To protect the interest of officers and staff of Income Tax Department, the Government has approved the Cadre Restructuring proposal of the Income Tax Department and has continued with the scheme of granting incentive of 1% of the revenue collected by the Department in excess of the budget estimates. </font></p>
</blockquote>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Doesn't NACEN conduct courses on Service Tax? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> received a telephone call enquiring as to whether NACEN imparts any training on "Service Tax". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of course, they do, informed DDT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The caller continued - <em><font color="#CC3333">then why do the words "Service Tax" not figure in its name. If the CEGAT can change its name to CESTAT, what prevents NACEN from changing its name to reflect the training it imparts? </font></em><font color="#CC3333">…and then hung up! </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We checked up the website. On its website www.nacen.in, it is mentioned - <em>National Academy of Customs, Excise & Narcotics or NACEN is the apex institute of Government of India for capacity building in the field of indirect taxation. It also plays a vital role in international capacity building by imparting training to officers of various countries in the field of customs, drug laws and environment protection. </em></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT does not have an answer to the question, though. Perhaps the next time, the caller gives us a call, he will ask as to why CBEC does not have the letters "ST" in its name! </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>VCES Road Show - Kiosk in Public Places </strong></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/VCES_Road.jpg" alt="Legal Corner Icon" width="588" height="492" hspace="5" border="0" align="center"></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Service Tax Department is leaving no stone unturned to attract declarants to the VCES. Hyderabad II Commissioner MK Singh hit upon the idea of organizing kiosks at popular parks to spread the message of VCES. The Commissioner and his officers sporting VCES T shirts attracted the attention of visitors to the park. Commissioner Singh is seen here along with his officers in a kiosk. Perhaps he could have avoided those uniformed officers - remember we are talking of encouragement and not enforcement. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax offices were open on Saturday and we understand that many declarations were indeed filed on Saturday. </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">Service Tax/Central Excise </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENVAT - Rule 2(l) of CCR, 2004 - Whether Outward transportation of finished goods from place of removal is covered by definition of "Input Service" before 01.04.2008 - Calcutta High Court refuses to accept Karnataka HC decision in ABB Ltd. allowing credit on GTA service - CESTAT order set aside - Appeal allowed</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>CESTAT Larger Bench in <em>ABB Ltd & Ors - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2009/2009-TIOL-830-CESTAT-BANG-LB.htm"><font size="1">(2009-TIOL-830-CESTAT-BANG-LB)</font> </a></strong></em>held that the definition of 'input service' has to be interpreted in the light of the requirements of business and it cannot be read restrictively so as to confine it only upto the factory or upto the depot of manufacturers, thereby allowing CENVAT Credit of service tax paid on ‘outward transportation from the place of removal'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Such a decision did not go down well with the Revenue and, therefore, they filed an appeal before the Karnataka High Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Much to the relief of all the assessees, the Karnataka High Court delivered a historic judgment upholding the legality of the CESTAT Larger Bench judgment upto the period 31.03.2008. </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 for purpose of valuation of renovation and cost of construction, when State PWD rates are not available, Revenue can rely on CPWD rates - NO: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Assessee had constructed a house in the year 1995-96. He claimed expenditure of Rs. 20 lakhs and odd for the A.Y 2006-07 towards extension and renovation. However, the Department estimated the cost of renovation and construction at Rs. 42,10,000 .The entire issue revolves round the valuation made by the Department after personal inspection of the building in question. Neither the AO nor the CIT(A) agreed with the claim of the appellant assessee. The Tribunal accepted the report of the DVO, and opined that assessee did not point out any flaw in the valuation report. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether Revenue is right in relying on the rate of Central PWD for the purpose of valuation of the renovation and cost of construction when rates declared by the State PWD were available. And its answer is NO. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Condonation of delay - Delay due to pursuing litigation before a wrong forum - Whether can be condoned - Matter goes to Third Member. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue involved is recovery of drawback sanctioned to the appellant. The Adjudicating Authority (Commissioner) confirmed the demand vide Order-in-Original dated 06.04.2009. The appellant and two other co-applicants filed Revision Application before the Joint Secretary within the time limit. But, in this case, the appeal lies with the CESTAT. (Tribunal is barred from jurisdiction in matters relating to drawback in respect of orders passed by the Commissioner (Appeals) - Not Commissioners). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revisionary Authority vide order dated 07.04.2010 dismissed the Revision Applications on the ground of jurisdiction as the appeal was to be filed only before the CESTAT. This order was not delivered to the applicants and also was not received by the Customs. Based on a query by the Customs in 2012, a copy of the order was supplied to the department by the Revisionary Authority. Consequent to the recovery proceedings initiated by the department, the assessee filed this appeal before the CESTAT with condonation of delay of 1236 days. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our Columns tomorrow for the judgements </font></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>
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