TIOL-DDT 2267 · the untouched capture
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<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><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 color="#663399" size="3">TIOL-DDT 2267 </font><br>
07.01.2014 <br>
Tuesday </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>CAG can audit Private telecom Companies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a landmark judgement delivered yesterday, the Delhi High Court held that the CAG is competent to audit private telecom companies. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In an interesting judgement analysing the powers of CAG as well as the need for regulators, the High Court started its judgement with these words, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"<em>It is now well-recognized that post second world war, some believe that influenced by the liberal features of the economic policies of the United States of America, a new economic order and a new kind of State emerged, which promoted the values and ideals of professionalism, scientific and technical expertise, administrative competence and neutrality in governance.The shift was from rowing to steering. The era of liberalization emerged all over the globe; some countries adopted it immediately after the second world war and some slowing and grudgingly, realizing that in the global economy the municipal governance had to be in sync with the current global thinking. Many believe (wrongly in our opinion) that the regulatory regime was the consequences of the new form of governance, shifting from rowing to steering."</em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
High Court observed, "The legal position could be stated in simple language
as follows: The Constitution (Article 149) mandates the Comptroller and Auditor
General to perform such duties and exercise such powers in relation to the
accounts of the Union. Accounts would include a record of money received
and spent by the Union. Power in relation to the account envisaged under
Article 149 would be as prescribed by or under any law made by Parliament
which would mean that Parliament can make a law with respect to compiling
accounts and auditing the same. While enacting the Comptroller and Auditor
General (Duties, Powers and Conditions of Service) Act, 1971, vide Section
10, the Parliament has prescribed the manner in which power contemplated
by Article 149 shall be exercised by the Comptroller and Auditor General
in relation to compiling and keeping accounts and vide Section 13 has prescribed
the manner in which the expenditure shall be audited and vide Section 16
has prescribed the manner in which the receipts have to be audited. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Rule, the Section and the constitutional provisions as interpreted by us perfectly fit the critical features of the new emerging regulatory State which has to reconstruct institution on the ruins of the club government requiring displacing the key feature of the club with standardization and formality; the provision of systematic information accessible both to insiders and outsiders and strengthening the control mechanism and public reporting."</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Caveat to CAG </strong>: The High Court concluded with a small caveat to the CAG- "<em>In relation to the accounts of the Telecom Service Providers, the audit has to be only an audit pertaining to the receipts and no more. The Comptroller and Auditor General would not confuse himself with his wide all embracing power under Section 14(2) of the Comptroller and Auditor General (Duties, Powers and Conditions of Service) Act, 1971 which includes inquiries into aspects like faithfulness, wisdom and economy in expenditures.</em>"</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any effect on CAG audit of factories under Central Excise?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See </strong></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTE0NzM=" target="_blank"><strong>2014-TIOL-31-HC-DEL-MISC</strong></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Excise duty exemption to the units for another 10 years by way of 2nd substantial expansion in the State of Jammu & Kashmir - CBEC clarifies </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> pursuance of the New Industrial Policy and other concessions for the State of J&K announced by the Department of Industrial Policy and Promotion (DIPP) in June 2002, notification No.56/2002-CE (location specific exemption to all goods other than the exclusion list) &No.57/2002-CE (non-location specific exemption to specified industries other than the exclusion list), both dated 14.11.2002 were issued to provide exemption from excise duty equivalent to the duty payable on value addition undertaken in the manufacture of the goods to the new units and units undertaking substantial expansion, <strong>for a period of ten years </strong> from the date of commencement of commercial production. The exemption operates through a refund mechanism. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Subsequently, pursuant to a review of the exemption, notification No.1/2010-CE was issued so as to extend the excise duty exemption to all goods barring the exclusion list to units located anywhere in the State of J&K subject to the same conditions and modalities as are applicable to the existing area-based exemptions for the State. Thus, notification No.1/2010-CE was basically an extension of the existing special package of incentives for the State of J&K with certain modifications. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there is a doubt in the trade and the Department whether an existing unit which has availed of excise duty exemption under notification No.56/2002-CE & 57/2002-CE, both dated 14.11.2002 by way of substantial expansion can avail of excise duty exemption under notification No.1/2010-CE, dated 06.02.2010, again by way of second substantial expansion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board clarifies: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An existing unit which has availed of excise duty exemption under notification No.56/2002-CE & 57/2002-CE, both dated 14.11.2002 by way of substantial expansion can avail of excise duty exemption under notification No.1/2010-CE, dated 06.02.2010 again by way of second substantial expansion so long as it satisfies the conditions stipulated under notification No.1/2010-CE, dated 06.02.2010. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2014/excircular977.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Circular No. 977/01/2014-CX, Dated: January 03, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADD on Nylon Tyre Cord Fabric - Amendment </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Notification No. 121/2009-Cus, dated 30.10.2009, antidumping duty was imposed on Nylon Tyre Cord Fabric (NTCF) originating in or exported from Belarus. The name of one of the producers/exporters is now amended. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2014/ctariffadd14_001.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 01/ 2014-Customs (ADD), Dated: January 03, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty on Compact Fluorescent Lamps - Second resurrection </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PROVISIONAL </strong>Anti Dumping Duty on Compact Fluorescent Lamps (CFL) with or without ballast or control gear or choke, whether or not assembled, either in completely knocked down or semi knocked down condition, originating in, or exported from China PR, Sri Lanka and Vietnam, was imposed by Notification No. 126/2008-Customs, dated the 21st November, 2008. Final anti-dumping duty on CFL imports from these countries was imposed by notification 55/2009-Cus dated 26th May 2009. This notification was made effective from 21st November 2008 and it expired on 21.11.2013. Now, they have put life into this notification till 20.11.2014 but it is only in respect of CFL imports from China PR. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2014/ctariffadd14_002.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 02/ 2014-Customs (ADD), Dated: January 03, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - Amendment in Chapter 3 of Foreign Trade Policy 2009-14</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has amended Para 3.17.11 of FTP 2009-14 to stipulate that SHIS, SFIS and AIIS scrips cannot be used for payment of Custom duty for shortfall in EO in Advance Authorisation or DFIA (i.e. default in EO for authorisation issued under Chapter 4 of Foreign Trade Policy). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SHIS = Status Holder Incentive Scheme </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SFIS = Served From India Scheme </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AIIS = Agri-Infrastructure Incentive Scrip </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EO = Export Obligation </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DFIA = Duty Free import Authorisation </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not064.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Notification No.64 (RE-2013)/2009-14, Dated: January 06, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - Modification in SION </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> DGFT has modified SION A-1730, in respect of the export product, Ambrettolide. SION A-1730 has been revised to reduce the quantities of inputs against items at Serial Number 1, 2 & 3 and to replace input at Serial number 4, i.e., "caustic soda"by "seedlac". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The SION A-1730 earlier read-</font></p>
<table width="100%" border="1" cellspacing="0" cellpadding="3">
<tr>
<td rowspan="4" valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A1730 </strong></font></div></td>
<td rowspan="4" valign="top"> <div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ambrettolide </strong> </font></div></td>
<td> <div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1 Kg </strong> </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Trimethyl
Orthoformate </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3 Kgs </font></div></td>
</tr>
<tr>
<td><div align="center"> </div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Britol (Paraffinic Mineral Oil) </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1.02 Kgs </font></div></td>
</tr>
<tr>
<td><div align="center"> </div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Glycerine </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 16 kgs </font></div></td>
</tr>
<tr>
<td><div align="center"> </div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4</font></div></td>
<td><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Caustic Soda </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 kgs </font></div></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And would now read-</font></p>
<table width="100%" border="1" cellspacing="0" cellpadding="3">
<tr>
<td rowspan="4" valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A1730 </strong></font></div></td>
<td rowspan="4" valign="top"> <div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ambrettolide </strong> </font></div></td>
<td> <div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1 Kg </strong> </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Trimethyl
Orthoformate </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">0.1.724 Kg</font></div></td>
</tr>
<tr>
<td><div align="center"> </div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Britol (Paraffinic Mineral Oil) </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.020 Kg </font></div></td>
</tr>
<tr>
<td><div align="center"> </div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Glycerine </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.053 kg </font></div></td>
</tr>
<tr>
<td><div align="center"> </div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4</font></div></td>
<td><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Seedlac </font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.757kgs </font></div></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See the difference. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps, there is some error in the quantity of "Trimethyl Orthoformate" shown in the revised SION value and we may expect a correction soon. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notable is the fact that the input "Caustic Soda" has been substituted with "Seedlac", a resinous pigment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, would that mean that manufacturers of Ambrettolide should shift to using "Seedlac"and not "Caustic soda"? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This would also mean a bonanza for "Seedlac manufacturers". </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the losers may be the "Caustic soda"and "Glycerine"manufacturers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is understood that the latest technologies of Heat Transfer, Vacuum and Cooling systems reduces cost and human errors in production of Ambrettolide and ensures safety and traceability of ingredients and a quality end product. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ambrettolide is a class of synthetic aroma chemicals to emulate the scent of deer musk or other natural musk. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn045.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No.45 (RE-2013)/2009-14, Dated: January 06, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>When service is not provided, question of payment of service tax does not arise and so also that of unjust enrichment </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> brief facts of the case are that the appellants are engaged in the activity of online information and data access service. They entered into a <em>deal </em> with one <em>M/s Knowledgeworks Global Ltd. </em> and as per their <em>deal </em>, they issued invoices for the services provided to them and raised a debit note along with service tax payable and within 14 days of the issuance of the notice, they paid service tax also, although during the relevant time, service tax was payable on receipt. Later on, no deal was finalized . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, credit note was issued and appellant filed a refund claim for service tax paid on the services which were not provided at all. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue rejected the refund claim on the premise that the appellant has failed to pass the bar of unjust enrichment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before the CESTAT, the appellant submitted that since they had not provided any service, question of unjust enrichment does not arise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench held-</font></p>
<blockquote>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"6. This fact is not in dispute that the appellant has not provided any service at all. When service is not provided, question of service tax does not arise. The appellant has filed a refund claim of the service tax paid. Therefore, question of unjust enrichment does not arise."</em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appeal was allowed and the adjudicating authority was directed to grant refund within 30 days. </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=OTE0NTU=" target="_blank"><font size="1" face="Verdana, Arial, Helvetica, sans-serif">2014-TIOL-35-CESTAT-MUM</font></a></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"> – Wednesday'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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENVAT-Appellants are job workers carrying out manufacturing operations on behalf of the principal & paying duty-Credit of Tax paid on Services received cannot be distributed as an ISD by principal manufacturer and availed by job workers-CENVAT availed by job workers incorrect in law-appeals dismissed: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>is alleged that M/s. Merck Specialties Limited who distributed the credit did not have any manufacturing unit of their own and the appellants are only job-workers who undertake repacking/re-labeling of goods imported/procured by M/s. Merck Specialties Ltd. It is also alleged that the input service credit distributed by M/s. Merck Specialties Ltd. pertains to services such as car hire charges, outward transportation, clearing and forwarding charges, manpower recruitment agency services, maintenance and repair services and Custom house agent's services, event management services and since these input services were not used either directly or indirectly by the appellants in relation to the manufacture and clearance of the final products from the place of removal they are ineligible to avail the credit on the same. </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 when assessee converts premises into gym by installing necessary equipments, even then its income is to be treated as rental income from house property - NO: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>assessee company is initially in ship-breaking business and subsequently the company changed its business to conducting gymnasium and fitness business centre. The assessee also changed its name. The assessee entered into two separate business centre agreements for giving the premises for running a fitness centre. The A.O found that the assessee had received rental income of Rs. 18,75,000/-. The assessee computed the said rental income as business income. The AO treated the rental income as income from other sources and thereby disallowed various expenses such as depreciation on car and municipal tax which were not paid during the year. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issues before the Bench are - Whether rental income can be considered as business income when this was not a case of simple letting out of a premises but the assessee had developed and prepared the premises as a fitness centre/gymnasium by installing the all requisite equipments, machines and other facilities and Whether disallowance of Municipal taxes by invoking section 43B is justified when the amount has been paid on or before the due date of filing the return of income u/s 139. And the verdict goes against the Revenue. </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">There is no contemporaneous import value available and no expert opinion or any import by another importer as is required for enhancement of the value-Revenue appeal rejected: Tribunal by Majority </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Commissioner (A) observed that the Revenue has not advanced any argument for rejecting the transaction value, which is required to be accepted in terms of Rule 4 of Customs Valuation Rules. He has further observed that no reasoning stands given by the original adjudicating authority for enhancement of the value; there is no contemporaneous import value available and no expert opinion or any import by another importer as is required for enhancement of the value. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Tomorrowfor the judgements </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6666">Until Tomorrowwith more DDT </font></strong></font></p>
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