TIOL-DDT 2264 · 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><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 src="http://www.taxindiaonline.com/RC2/image/stories/10yearsDDT.jpg" alt="" width="115" height="125" border="0" align="right" /></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 2264</font><br> 02.01.2014 <br> Thursday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appointment of Technical Members in CESTAT - Board wants applications by 20th January - but what is the incentive? </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Department of Revenue on 13.12.2013 had invited applications from senior IRS officers for appointment as Technical Members of CESTAT. The last date for receipt of applications is 31.01.2014. Now, the CBEC wants the Chief Commissioners to forward the applications to the Board latest by 20.01.2014.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The salary scale of a CESTAT Member is Rs. 75,500 - 80,000. Chief Commissioners and Commissioners are eligible to apply. Chief Commissioners are at present in the pay scale of 67,000 - 79,000 and senior Commissioners will be in the range of 65,000 - 67,000. Now, when these officers go to the Tribunal as Technical Members, they will have to join in in the initial pay of Rs. 75,500 and will reach the 80,000 scale in two years. But there is a catch - their pension will be on the last pay drawn as Commissioner/Chief Commissioner and not that of a Member. So, these officers will like to join the CESTAT only after they reach the maximum possible salary in the department, because that is what counts for pension and that is for life and even beyond!</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, there is an impending cadre review in the Department and many Commissioners and Chief Commissioners are hoping for a promotion which means a higher pay (equal to CESTAT Members) - so they would like to wait for that before joining CESTAT, which means you may not get many applications - except from about-to-retire officers. Why can't they give pension to Technical Members based on their last pay in the Tribunal instead of that in the Department? This is pittance for the Government but a lot of money for the officers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why should a Commissioner or Chief Commissioner who enjoy a lot of perks (both official and unofficial) in the field join the CESTAT as a Member where he has to put in a lot of hard work with hardly any assistance and perks? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Small mercies please - we shall be grateful. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/deputation/vcacancy1_2013.htm" target="_blank">CBEC Letter F. No. A.35017/33/2013-Ad.II,Dated: December 26, 2013 </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">New Benches of CESTAT - Please hire Good Buildings and ensure proper infrastructure </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NEW</strong> Benches of the CESTAT are to come up in Hyderabad, Chandigarh and Allahabad soon. The ad-hocism with which new benches are created should be avoided now. We should plan thirty years ahead. Please take into consideration the number of files that will be generated and the place to store them. We should plan for ‘State of the art' court rooms, library, chambers for Members, Bar halls, record rooms, facilities for computer, fax, Xerox, printing and free wi-fi and access to technical law journals. PLEASE PROVIDE AN ATTACHED TOILET ROOM FOR AT LEAST THE MEMBERS. Even the Court room design should be more comfortable - we should have a horse shoe table instead of the class room chairs. There should be better use of technology and computers and OHP should be in frequent use in the Tribunal. Please make the new Benches convenient, comfortable, user-friendly, hi-tech and spacious. Please DON'T HIRE ANY SPACE LESS THAN 30,000 SQ.FT. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CE - Tariff Value for Skin Care Products </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Central Government has fixed tariff value in respect of excisable goods falling under heading 3304 in retail packages and in respect of which the provisions of section 4A of the Central Excise Act, 1944 do not apply. The Tariff Value is the Retail Sale Price less the abatement for such goods under Notification No. 49/2008-CE(NT) dated 24.12.2008. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, this is a new phenomenon where you may have some goods falling under heading 3304 being assessed in terms of section 4A of the CEA, 1944 based on the MRP and those which escape assessment u/s 4A (for whatever reasons) again being assessed in the same fashion but by a backdoor instrumentation through the aegis of section 3 of the CEA, 1944. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, all goods falling under heading 33.04 are subject to MRP assessment in terms of the notification 49/2008-CE(NT) read with the Third Schedule. And in respect of the goods mentioned in the Third Schedule, they are covered under section 2(f)(iii) of the CEA, 1944 pursuant to which any activity of repacking, relabeling etc. amounts to manufacture. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2013/exnt13_16.htm" target="_blank">Notification No. 16/2013-CX (N.T.), Dated: December 31, 2013 </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Government Imposes Definitive ADD on Phosphoric Acid </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ANTI</strong> Dumping Duty on imports of Phosphoric Acid-Technical Grade and Food Grade originating in, or exported from, People's Republic of China was imposed by Notification No. 17/2008 -Cus, dated 19.02.2008. This was to expire on 13.09.2012. After 12 days of the death, the Government extended it till 12.09.2013 by Notification No. 45/2012 - Cus (ADD) dated 25.09.2012. So, it had its second death on 12.09.2013. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, more than three months after the second death, they have re-imposed the Anti Dumping Duty with effect from 31.12.2013. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Was there no dumping between 13.09.2013 and 30.12.2013?? </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2013/ctariffadd13_033.htm" target="_blank">Notification No.33/2013-Cus (ADD), Dated: December 31, 2013</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ADD on DVD - Enhanced </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Designated Authority has recommended enhancement in the quantum of anti-dumping duty imposed on imports of Recordable Digital Versatile Disc (DVD) of all kinds originating in or exported from Vietnam, by Notification No. 98/2010-Cus dated 28.09.2010. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has accordingly done so. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2013/ctariffadd13_034.htm" target="_blank">Notification No. 34/2013-Cus (ADD), Dated; December 31, 2013</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Handling of Customs Cargo - No sub-contracting without Commissioner's permission </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Regulation 6(2) of the “Handling of Cargo in Customs Area Regulations, (HCCAR) 2009”, </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"The Customs Cargo Service provider approved for custody of imported or export goods and for handling of such goods shall not lease, gift, sell or sublet or in any other manner transfer any of the premises in a customs area; or sub contract or outsource functions permitted or required to be carried out by him in terms of these regulations to any other person, without the written permission of the Commissioner of Customs."</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has come to the notice of the Board that Customs Cargo Service Providers (CCSPs) have sub-contracted operations relating to handling of import/export cargo without written permission of the jurisdictional Commissioner of Customs. This has led to situation where cargo integrity at times has been compromised by such operators to whom the services were sub contracted by CCSP without getting prior approval from jurisdictional Commissioner of Customs. In a particular case one such unapproved operator to whom the CCSP had sub-contracted the work of transportation of export goods was found to be complicit in substitution of the export goods with goods prohibited for export. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC reiterates that under no circumstances, CCSPs approved for custody of imported or export goods and for handling of such goods shall lease, gift, sell or sublet or in any other manner transfer any of the premises in a customs area; or sub contract or outsource functions permitted or required to be carried out by him in terms of these regulations <strong>without written approval of the jurisdictional Commissioner of Customs</strong>. Board also desires jurisdictional Commissioners of Customs to review immediately the conditions and obligations required to be fulfilled by CCSP under HCCAR, 2009 and promptly initiate remedial action in case non-compliance is noticed. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board also informs that all cases of violation of regulation 6(2) shall be dealt with sternly according to law and the violators shall be punished. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2013/cuscir13_045.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No.45/2013 - Cus, Dated: December 31, 2013 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Preferential Trade Agreement between India and Korea-Rates reduced </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has reduced the rates of duty on many items covered under the Preferential Trade Agreement between India and Korea. Notification No. 152/2009-Cus dated 31.12.2009 is amended. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_054.htm">Notification No.54/2013 - Cus, Dated: December 31, 2013 </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Concessional Regime with Japan - Rates reduced </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has reduced the rates of duty on two items covered under the concessional regime between India and Japan. Notification No. 69/2011-Cus dated 29.07.2011 is amended. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_055.htm">Notification No. 55/2013 - Cus, Dated: December 31, 2013 </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Preferential Trade Agreement between India and Malaysia - Rates reduced </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has reduced the rates of duty on many items covered under the Preferential Trade Agreement between India and Malaysia. Notification No. 53/2011-Cus dated 01.07.2011 is amended. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_056.htm" target="_parent">Notification No. 56/2013 - Cus, Dated: December 31, 2013 </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - Preferential Trade Agreement between India and ASEAN - Rates reduced </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has reduced the rates of duty on many items covered under the Preferential Trade Agreement between India and Member States of the Association of South East Asian Nations (ASEAN). Notification No. 46/2011-Cus dated 01.06.2011 is amended. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2013/ctariff13_057.htm" target="_blank">Notification No. 57/2013 - Cus, Dated: December 31, 2013 </a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Export of Stone Aggregate to Maldives </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOTIFICATION </strong>No. 54(RE-2010)/2009-14 of 07.06.2011 had permitted export of specified quantities of Stone Aggregates to Maldives for the years 2011-12, 2012-13 & 2013-14. This was stopped till further notice vide Notification No. 34 (RE-2012)/2009-14 dated 08.02.2013. Now Notification No. 34 (RE-2012)/2009-14 dated 08.02.2013 is being withdrawn. Accordingly, export of Stone Aggregates to Maldives is permitted with immediate effect. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not062.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 62 (RE-2013)/2009-2014, Dated: January 01, 2014 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Advocates Vs CAs - Chartered accountants are trained in accounts only and not in interpretation of tax law and procedures - Bar Council</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is learnt that the Bar Council of India has written to the Finance Ministry that lawyers must be authorised to sign and furnish tax audit certificates/reports. According to the Bar Council, "<em>Chartered accountants are trained in accounts only and not in interpretation of tax law and procedures. In order to practice income tax law and to fill tax audit reports Form 3CD, one should specialise in interpretation of tax law and procedures, besides analysing intention of the legislature, Civil Procedure Code and impact of furnishing affidavit and sworn statements in the course of IT proceedings</em>." </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the lawyers want to displace the CAs from the ITAT and all other forums where LAW has to be <strong>practiced </strong>and this is the exclusive domain of the Advocates! Maybe they need a little more practice. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Banks will accept ‘scribbled notes' - but keep your notes clean - RBI </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the wake of rumours circulating in the market that from January 1, 2014, banks will not accept banknotes with anything written on them, the Reserve Bank has urged members of public not to fall prey to such rumours and to use their banknotes without any fear. The Reserve Bank of India has clarified it has NOT issued any such instructions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has further clarified that it had issued instructions on August 14, 2013 only to banks advising them to instruct their staff not to scribble or write on the body of the banknotes since it was observed that the bank officials themselves were in the habit of writing on banknotes which went against the Reserve Bank's Clean Note Policy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has sought the co-operation of all users in keeping the banknotes clean by not writing/scribbling anything on them. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/IEP1311RBC1213.htm" target="_blank">RBI Press Release, Dated: December 31, 2013</a> </font></strong></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"> – Friday's cases</font></strong></font></strong></font></p> <p><font 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"><strong><font color="#663399">Central Excise </font></strong></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Clandestine clearances - Mere reliance on note books/diaries or statements cannot justify finding of clandestine manufacture and clearance - There should be tangible evidence of clandestine manufacture and clearance and demand cannot be confirmed merely on inferences or unwarranted assumptions - CESTAT. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Tribunal formulated the following requirements to sustain the demand of clandestine removals: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) There should be tangible evidence of clandestine manufacture and clearance and not merely inferences or unwarranted assumptions; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Evidence in support thereof should be of: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) raw materials, in excess of that contained as per the statutory records; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) instances of actual removal of unaccounted finished goods (not inferential or assumed) from the factory without payment of duty; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) discovery of such finished goods outside the factory; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) instances of sale of such goods to identified parties; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) receipt of sale proceeds, whether by cheque or by cash, of such goods by the manufacturers or persons authorized by him; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) use of electricity for in excess of what is necessary for manufacture of goods otherwise manufactured and validly cleared on payment of duty; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) statements of buyers with some details of illicit manufacture and clearance; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) proof of actual transportation of goods, cleared without payment of duty; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) links between the documents recovered during the search and activities being carried on in the factory of production; etc. </font></p> </blockquote> <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 provisions of section 194A are applicable to interest paid to company whose shares are held by either Central or State Government - NO: ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE,</strong> a JV assessed in the status of AOP, was engaged in the business of execution of civil contract works. It had entered into an agreement with Konkan Railway Corporation Ltd., a government of India undertaking for executing BG Single Line Tunnels works under the Udhampur - Srinagar-Barmulla Rail Link Project by M/s. Konkan Railway Corporation Ltd. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issues before the Bench are - Whether the provisions of section 194A are applicable to interest paid to a company whose shares are held by either Central or State Government; Whether in case interest on mobilisation advance is recovered by the contractee from running bills before releasing the contract charges to the assessee, it can be said that assessee has credited the interest paid or payable to the account of the assessee and Whether in such case it can be said that there is a violation of provisions of section 194A of the Act. And the verdict 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">S.67 of FA, 1994 provides for payment of ST on gross amount - in present case, service is supply of manpower and there are no such expenses like travel cost, hotel stay, transportation etc. -: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants undertook the activity of supply of manpower to various clients and service tax liability on the same is not disputed. However, the appellants were paying service tax on the gross amount received from their clients except in the case where the manpower is supplied to textile mills and Maharashtra State Secondary School of Certificate Board, Aurangabad (SSC Board) i.e. they are paying service tax only on the portion of the service charges retained by the appellants, i.e. without taking into consideration the labour wages and other amount received from the textile mills and SSC Board. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Tomorrow for the judgements</font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></p> <p><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>