TIOL-DDT 2260 · 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 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><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><font color="#663399" size="3">TIOL-DDT 2260</font><br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>27.12.2013 <br> Friday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax - Aadhar Card as Proof of Identity/address</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has amended Rule 114 of the Income Tax Rules, 1962 prescribing a new set of documents as proof of identity and proof of address for application of PAN. A new PAN application form is also prescribed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AADHAR Card issued by the Unique Identification Authority of India and the Government's CGHS card will be accepted as proof of identity.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2013/it13not096.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT Notification No. 96/2013, Dated: December 23, 2013</strong></font></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Export Policy - Onions - Steep cut in MEP </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended para 2 of Notification No.03(RE-2012)/2009-14 dated 29.06.2012 read with Notification No.59 (RE-2013)/2009-14 dated 19.12.2013 with immediate effect. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of onion for the item description at Serial Number 51 & 52 of Schedule 2 of ITC (HS) Classification of Export & Import Items will now be subject to a Minimum Export Price (MEP) of USD <a></a> 150 per MT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was USD 350 per MT last week 800 USD ten days back and 1150 USD per MT in September. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, this is a steep cut. It is reported that this reduction is aimed at encouraging exports amidst a crash in wholesale prices leading to protest by farmers in producing states. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A meeting was held on December 25, 2013 between the Minister of Agriculture and the Minister for Commerce and Industry to discuss the issues related with sharp decline in the wholesale prices of onions in the producing mandies of Maharashtra and need for a review of MEP. This meeting was attended by senior officials from the Departments of Agriculture & Cooperation, Consumer Affairs and Commerce. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After reviewing the situation of arrivals in the producing and major consuming mandies, retail and wholesale modal rates as well as foreign trade scenario, <em>inter-alia</em>, the following decisions were taken: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) To further reduce the MEP from USD 350 PMT to USD 150 PMT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) Secretaries of Departments of Commerce, Consumer Affairs and Agriculture/ Inter Ministerial Committee (IMC) on onions will regularly and closely monitor the arrivals, wholesale modal prices and retail prices of onions in the country. The government will make appropriate interventions in future as and when required to ensure price stability for consumers and adequate domestic availability of onions along with price protection for farmers with a view to balance the interests of both farmers and domestic consumers. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The reduction in MEP by DGFT (the day after the meeting) is in pursuance of the above decision. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At least onion doesn't seem to be one of the challenges before Arvind Kejriwal. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not061.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 61 (RE-2013)/2009-2014, Dated: December 26, 2013 </font></strong></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST will send the message that 'India is open for business' </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DELIVERING</STRONG> a lecture in Chennai yesterday, Planning Commission Deputy Chairman said that implementation of the Goods and Services Tax (GST) will be the best signal to tell investors globally <em>"India is open for business."</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He also said, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An efficient tax regime is key to sustaining government revenue for social and physical infrastructure development and a sustainable fiscal policy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bringing in GST is the most important tax reform that is needed along with bringing down customs duty in a globalised economic environment. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Political parties are coming together on implementing GST, but some gaps remain. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is important that the tax treatment is globally accepted as reasonable and there is consistency in tax policy to instil investor confidence. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With multinational companies setting up subsidiaries here and Indian companies going abroad, tax administration and calculations should be aligned globally. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rules on transfer of funds between parent companies and subsidiaries should be clear. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Globally, countries are moving away from customs duties <em>because the essence of globalisation is that you don't impose too many taxes on trade </em> and focussing on increasing revenue from domestic taxes. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sanitise your staff - DRI tells Air India </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YESTERDAY</STRONG>, it was reported by PTI that worried over instances of gold smuggling by some Air India staffers, the Directorate General of Revenue Intelligence has asked the national carrier to take necessary measures to check it. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems that the DG, DRI has written a letter to Air India and has asked the former MAHARAJA to sanitise its staff, especially those involved in ground-handling duties. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see our <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg4OTI=" target="_blank">DDT 2215</a> </strong>capsule Poor Pilots resort to <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg4OTI=" target="_blank"><strong>smuggling</strong></a>. </font></p> <p align="justify"> </p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax Joint Commissioner arrested by CBI </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE </STRONG>a former IRS officer is going to take over the administration of the National Capital Territory of Delhi tomorrow, some serving IRS officers are destined to spend the year-end in jail. It is learnt that yesterday the CBI arrested a Joint Commissioner of Income Tax in Thane while accepting a bribe of Rs. 3.5 lakhs. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IRS CM </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BUT </STRONG>IRS officers have something to rejoice during the New Year eve - one of their former colleagues is becoming Chief Minister of Delhi tomorrow. Arvind Kejriwal, former Additional Commissioner of Income Tax is creating political history - the first IRS officer to become Chief Minister. He has many challenges before him and political pundits don't give him much of a chance, but he is a new experiment - let us wish him good luck. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Legible copy of O-in-O not filed, appeal dismissed </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per rule 11(1) of the CESTAT (Procedure) Rules, 1982, the Tribunal may, in its discretion, on sufficient cause being shown, accept a memorandum of appeal which is not accompanied by the documents referred to in rule 9 or is in any other way defective, and in such cases may require the appellant to file such documents or, as the case may be, make the necessary amendments within such time as it may allow. So also, in terms of sub-rule (2), the Tribunal may reject the memorandum of appeal referred to in sub-rule (1), if the documents referred to therein are not produced, or the amendments are not made, within the time-limit allowed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case, the appellant was directed by the Registry to cure a defect and the defect was that the "Order-in-Original is not legible". </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reminders on a couple of occasions viz. 14/06/2012, 26/09/2012 and then after more than a year on 13/11/2013 met with no response. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench heard the appeal E/870/12 filed against an O-in-A dated 16/01/2012 last month and observed that although three opportunities were given to the appellant the defect was not cured. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the CESTAT dismissed the appeal by citing Rule 11 of the CESTAT (Procedure) Rules, 1982. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTEzMDM=" target="_blank"><font size="1">2013-TIOL-1919-CESTAT-MUM</font></a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT Cartoon </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/Additional_Requirement.jpg" alt="" width="424" height="479" 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"> - Monday's cases</font></strong></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></font><font color="#663399">Central Excise </font></strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Manufacture of dutiable and exempted goods and providing dutiable and exempted services - non-maintenance of separate accounts - if they have opted to pay 5% of value of exempted goods as per rule 6(3)(i), they cannot take option separately for exempted services as per Rule 6(3A) - CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> applicants are manufacturers of goods falling under Ch. 84 and also providing services such as consulting engineering services, erection, commissioning and installation service, management, maintenance and repair service etc. The applicants are not maintaining separate account for their manufacturing activity as well as service activities and also not maintaining separate account for taxable as well as exempted goods or exempted services. Revenue is of the view that the appellant are required to reverse 5%/6% of the goods/services(exempted during the impugned period) as per Rule 6(3)(i) of CCR, 2004. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, a demand of 5% of the value of the exempted services and which came to Rs.11,56,09,971/-was confirmed.</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 to be eligible for Sec 72A(4) benefits, undertaking being demerged ought to be 'going concern' at time of demerger - NO: ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee company is engaged in the business of manufacturing of Indian Made Foreign Liquors [IMFL], sugar, cogeneration of power, wind energy and speed zone. The assessee had claimed deprecation on the premise that it had purchased 37 wind mills during the month of March, 2006 from <em>M/s Indowind Energy Limited </em>[IEL] and ‘put to use' during the period under consideration; and, hence, eligible for depreciation etc. However, the AO had disallowed the claim of depreciation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether for the eligibility to the benefits u/s 72A (4) of the Act, the under-taking being demerged ought to be a going concern at the time of demerger. And the answer favours the assessee. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">JNPT had given land on lease in the year 1993 to M/s Ganesh Benzoplast and lease agreement was renewed in year 2004 - ST demanded - Prior to 01.07.2010, renting of vacant land is not covered under scope of Service Tax - Pre-deposit waived and stay granted: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AGAINST</strong> an o-in-a, the applicant has filed an application before the CESTAT for waiver of pre-deposit of service tax amount of Rs.11,89,402/- interest and penalty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The demand is confirmed on the ground that applicant had provided 'Renting of Immovable Property Service'. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is the submission of the applicant that they had given land on lease to M/s. Ganesh Benzoplast Ltd. in the year 1993 and the lease agreement was renewed in the year 2004. It is further submitted that it is only w.e.f. 1.7.2010 that even the vacant land given on lease or licence for construction of building or temporary structure at a later stage to be used for furtherance of business or commerce had come under the scope of service tax. Inasmuch as prior to 1.7.2010, renting of vacant land is not covered the scope of service tax, the applicant submitted. The applicants also informed the Bench that they are paying appropriate service tax w.e.f. 1.7.2010. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Monday for the judgements </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6666">Until Monday with more DDT</font></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> <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>