TIOL-DDT 2295 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><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><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></strong><font color="#663366" size="3">TIOL-DDT 2295 </font><br>
17.02.2014 <br>
Monday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Is Tirupati Balaji liable to pay Service Tax? Supreme Court to decide</strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<strong><strong><strong><font color="#663399"><img src="http://www.taxindiaonline.com/RC2/image/stories/Service_Tax.jpg" alt="" width="580" height="382" hspace="5" border="0" align="center"></font></strong></strong></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IS</strong> GOD liable to pay Service Tax for the services He provides to his pilgrims? Lord Balaji at Tirumala is perhaps the richest God on Earth providing emotional bliss to millions of devotees. Tirumala Tirupati Devasthanams (TTD), the Trust that manages the huge temple administration provides a lot of facilities to the pilgrims - of course for a charge and the Service Tax department naturally wants Service Tax on these charges. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TTD has recently challenged the provisions of the Finance Act, 1994 requiring it to pay Service Tax as violative of Constitution Articles 26 (freedom to manage religious affairs), 27 (freedom as to payment of taxes for promotion of any particular religion), and 14 (right to equality). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The petition came up for hearing before the Supreme Court on Friday. The Supreme Court issued notice to the Central Government and restrained the Service Tax authorities from coercive recovery of tax dues. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TTD had earlier challenged the imposition of Service Tax on the accommodation service provided by it, but the Andhra Pradesh High Court dismissed the writ petition <font size="1"><strong>[<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2012/2012-TIOL-97-HC-AP-ST.htm">2012-TIOL-97-HC-AP-ST</a>]</strong></font>. Now, the Supreme Court will decide the issue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Is Prasad excisable </strong>? <font color="#663399"><em>More than twenty years ago, the CESTAT ruled, a manufactured item should have a market and it should be sold. Sale implies a bargain and there is profitability and gain attached to it. There are no religious sentiments and the item is purchased by one and all. In the light of the intendment of the legislature to impose duty on goods which are brought to the market for sale the items 'Prasad' or 'Prasadam' cannot be considered as goods. The mere entry 'Prasad' or 'Prasadam' which is purely a religious offering made to the deity cannot be brought within the ambit of the Act. The mere specification in the tariff schedule will not make the item goods and exigible; merely because the devotee has purchased it from the temple precincts it cannot be considered as an exigible commodity. The item may be goods before they are taken for presentation to the deity and at that stage the excisability of the product could be considered. The said item before presentation to the deity would not be 'Prasad' or 'Prasadam' but it would be known in the stage in which it is. Therefore, the item, after it is presented to the deity by the temple authorities and offered to devotees on charges, cannot be considered as 'goods'. The term 'goods' as has been noted in the definitions, does not carry any religious sentiments nor does it have any blessings of deity. Goods are commodities which are brought to the market for sale, while the 'Prasad' or 'Prasadam' are the blessings of a deity which has a great religious significance. Therefore, in my opinion 'Prasad' or 'Prasadam' cannot be made exigible.” </em></font></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value of Gold and Silver increased - Metric Tonne v Metric Tons </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Government has increased the Tariff value of Gold from 404 USD to 421 USD per 10 gms and that of Silver from 635 to 663 USD per kilogram with effect from 14.02.2014. Tariff values of other items are also changed. This time, even the tariff value Areca Nuts is increased. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tariff values as on <strong>31 .01.2014 </strong>and with effect from <strong>14.02.2014 </strong>are as under: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td width="33%" colspan="7" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 1</strong></font> </font></p></td>
</tr>
<tr bgcolor="#99CC00">
<td width="33%" valign="top" bgcolor="#DBFBB7"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td width="6%" colspan="2" valign="top" bgcolor="#DBFBB7"><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="15%" valign="top" bgcolor="#DBFBB7"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td width="5%" colspan="2" valign="top" bgcolor="#DBFBB7"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tonne) <br>
from 31.01.2014 </font></strong></p></td>
<td width="0" valign="top" bgcolor="#DBFBB7"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tonne) <br>
from 14.02.2014 </font></strong></font></p></td>
</tr>
<tr>
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(2) </strong></font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(3) </strong></font></p></td>
<td width="5%" colspan="2" 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>(5) </strong></font></p></td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">857 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>866 </strong></font></p></td>
</tr>
<tr>
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">880 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>897 </strong></font></p></td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palm Oil </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">869 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>882 </strong></font></p></td>
</tr>
<tr>
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">896 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>895 </strong></font></p></td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 20 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBDPalmolein </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">899 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>898 </strong></font></p></td>
</tr>
<tr>
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others -Palmolein </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">898 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>897 </strong></font></p></td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507 10 00 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">917 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>916 </strong></font></p></td>
</tr>
<tr>
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404 00 22 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3959 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3913 </strong></font></p></td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<td width="6%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1207 91 00 </font></p></td>
<td width="15%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy seeds </font></p></td>
<td width="5%" colspan="2" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3195 (No Change) </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3195 (No Change) </strong></font></p></td>
</tr>
<tr>
<td width="33%" colspan="7" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 2 </strong></font> </font></p></td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td width="6%" colspan="2" 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="15%" colspan="2" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td width="0" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD from 31.01.2014 </font></strong></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD <br>
from 14.02.2014 </font></strong></font></p></td>
</tr>
<tr>
<td colspan="7" valign="top"> </td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td width="6%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<td width="17%" colspan="3" valign="top"><p align="center"><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="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">404 per 10 grams </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>421 per 10 grams </strong></font></p></td>
</tr>
<tr>
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td width="6%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<td width="17%" colspan="3" valign="top"><p align="center"><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="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">635 per kilogram </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>663 per kilogram </strong></font></p></td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td width="6%" colspan="2" 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="15%" colspan="2" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td width="0" valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tons) <br>
from 31.01.2014 </font></strong></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tons) <br>
from 14.02.2014 </font></strong></font></p></td>
</tr>
<tr>
<td width="33%" colspan="7" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Table 3 </strong></font> </font></p></td>
</tr>
<tr>
<td colspan="7" valign="top"> </td>
</tr>
<tr bgcolor="#DBFBB7">
<td width="33%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td width="6%" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">080280 </font></p></td>
<td width="17%" colspan="3" 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">1816 </font></p></td>
<td width="0" valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1872 </strong></font></p></td>
</tr>
</table>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Please note the Tariff Values for the goods in Table 1 are US Dollars per Metric <strong>Tonne </strong> while the rate for the product in Table 3 is US Dollars per Metric <strong>Tons.</strong></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">There seems to be no proof reading in the Board - they don't realise that they are writing the LAW.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2014/cnt14_011.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 11/2014-Cus (NT), Dated: February 14, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Bribe of Rs. 265 - CBI Case decided after 30 years - physical incarceration for three months and mental incarceration for thirty years </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HE</strong> was accused of taking a bribe Rs. 265/- in the year 1984. He was sentenced to undergo rigorous imprisonment for a period of one and a half years with a fine of Rs. 5,000/- each under the charged Sections, as per judgment of the Sessions Court dated 10.04.2003. Ten years later in 2013, the High Court upheld the order of the Sessions Court. The 'corrupt' Government servant is before the Supreme Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court on Friday partly allowed the appeal observing, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The long delay before the courts in taking a final decision with regard to the guilt or otherwise of the accused is one of the mitigating factors for the superior courts to take into consideration while taking a decision on the quantum of sentence. As we have noted above, the FIR was registered by the CBI in 1984. The matter came before the sessions court only in 1994. The sessions court took almost ten years to conclude the trial and pronounce the judgment. Before the High Court, it took another ten years. Thus, it is a litigation of almost three decades in a simple trap case and that too involving a petty amount. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The appellant is now aged 76. We are informed that he is otherwise not keeping in good health, having had also cardio vascular problems. The offence is of the year 1984. It is almost three decades now. The accused has already undergone physical incarceration for three months and mental incarceration for about thirty years. Whether at this age and stage, it would not be economically wasteful, and a liability to the State to keep the appellant in prison, is the question we have to address. Having given thoughtful consideration to all the aspects of the matter, we are of the view that the facts mentioned above would certainly be special reasons for reducing the substantive sentence but enhancing the fine, while maintaining the conviction</em>. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see
<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTIxMDc=" target="_blank"><font size="1">2014-TIOL-11-SC-MISC
</font></a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBI arrests alleged absconding offender after 25 years </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HE</strong> is accused of Foreign Exchange fraud of nearly Rs 67.15 lakh in 1985-89 and had been on the run ever since defeating every effort of CBI to nab him. The fraud was of using forged bills of lading in the account of his firms without any genuine trade transaction as no material was imported into India during the period 1985-89. The accused could not be traced during investigation, and trial against him was kept dormant. After sustained efforts, CBI traced the proclaimed offender at Bangalore and arrested him on 13.02.2014 from the business premises of his younger brother at Bangalore. CBI is believed to have used Facebook to track the absconder. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Long arm of the LAW!</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Clarification with regard to Section 185 of Companies Act, 2013 - MoCA </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION </strong>372A of the Companies Act 1956, specifically exempts any loans made, any guarantee given or security provided or any investment made by a holding company to its wholly owned subsidiary. Whereas Section 185 of the Companies Act, 2013 prohibits guarantee given or any security provided by a holding company in respect of any loan taken by its subsidiary company except in the ordinary course of business. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Ministry of Corporate Affairs clarifies that: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to maintain harmony with regard to applicability of Section 372A of the Companies Act, 1956 till the same is repealed and Section 185 of the Companies Act, 2013 is notified, any guarantee given or security provided by a holding company in respect of loans made by a bank or financial institution to its subsidiary company, exemption as provided in clause (d) of sub-section (8) of section 372A of the Companies Act, 1956 shall be applicable till section 185 of the Companies Act, 2013 is notified. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/mca_circular_03_2014.htm"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MoCA General Circular No. 3/2014., Dated: February 14, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Wants a JS as Revisionary Authority </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has invited applications from Commissioner rank officers for appointment as Joint Secretary in the Revisionary Authority. Isn't it time we abolished this archaic authority where a junior Commissioner may hear appeals against orders passed by a senior Appellate Commissioner? </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/deputation/vcacancy17_2014.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC F. No.A.35017/76/2006-Ad.II., Dated: February 13, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC wants 11 Under Secretaries - any takers? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has 11 posts of Under Secretaries/ Sr. Technical Officers lying vacant and they have called for applications from willing and eligible officers. Assistant Commissioners are eligible. Apparently, not many Assistant Commissioners are willing to work in the Board. Once upon a time it was considered a great honour to work in the Board, but as perks and pelf displaced honour, there are no takers for the Board posting. Board should seriously consider providing them with certain facilities like a good allowance, a car and some secretarial assistance. A Technical officer in the Board once told me that his nephew refused to join the IRS as he saw his uncle (then working as a TOTRU - Technical Officer TRU) commuting to office on a motor cycle. Poor boy! He believed that IRS is all about TRU. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/deputation/vcacancy18_2014.htm"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC F. No.A.35017/15/2013-Ad.II., Dated: February 14, 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Board releases Customs Manual 2014 - Where is Central Excise Manual? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Customs Manual 2014 was released by the FM on 27th January and now the Board has made it public. While the Board is able to issue a Customs Manual every year for three years, the latest Central Excise Manual they released was in 2005. And why is the Board not bothered? And don't we need a Service Tax Manual? </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?filename=_851783c3daf5df_cus_mannual_2014.htm&subCatDisp_Id=317" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs Manual 2014 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Revenue seeking adjournment as they have requested Board to appoint Special Counsel where tax involved is more than 1 Crore - CBEC to expedite decision </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THREE</strong> Service Tax Appeals namely ST/373/12-Mum, ST/453/12-Mum and ST/574/12-Mum pertaining to M/s Air India Charter Ltd., M/s First Flight Couriers Ltd. and M/s DHL Logistics Pvt. Ltd. respectively were listed for regular hearing and disposal. Stay orders were reported by us as <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2013/2013-TIOL-470-CESTAT-MUM.htm" target="_blank"><font size="1">2013-TIOL-470-CESTAT-MUM</font></a> </strong>and<strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2013/2013-TIOL-373-CESTAT-MUM.htm" target="_blank"><font size="1">2013-TIOL-373-CESTAT-MUM</font></a>.</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the cases were called, the AR informed the Bench that they are taking up the matter with the Board to appoint Special Counsel to argue the matter as the revenue involved in these appeals is more than Rs.1,00,00,000/- and <em>in the absence of Commissioner (AR) to argue </em> these matters, they are seeking instructions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bench was not too pleased with this submission and observed - </font></p>
<blockquote>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"3. Most of the Service Tax matters involve revenue of more than Rs.1crore. It is also informed that instructions are being sought even for stay matters where the Service Tax demand involved is Rs.1crore and above. This would imply that except for a handful of cases, the Revenue will be seeking adjournments in almost all Service Tax matters which will certainly be detrimental to its interest and the Revenue's case will go unrepresented. In this scenario, it is imperative that appropriate and expedite decision is taken by the CBEC, so that Revenue is effectively represented."</em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Registry was directed to mark a copy of the order to the Chief Commissioner of Service Tax, Mumbai, the Chief Commissioner (AR), CESTAT, New Delhi and also to the Member (Service Tax)/Member (L&J), CBE & C for appropriate action. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See
<em><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTIxMDg="><font size="1">2014-TIOL-245-CESTAT-MUM
</font></a></em></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Interim Budget Today </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBEC site informs, <em>"On account of Vote of Account 2014-15, due to be presented on 17th February 2014, filing of BEs would not be available from 00 HRS onwards on 17.2.2014 till completion of updation of all changes in the ICES 1.5."</em></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><font color="#663399"><img src="http://www.taxindiaonline.com/RC2/image/stories/Budget_taste.jpg" alt="" width="579" height="272" hspace="5" border="0" align="center"></font></strong></strong></strong><br>
</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> - Tuesday's cases</font></strong></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><font color="#663399"><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></strong></strong><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Toys or Games? Not fun to decide - Classification of Chip N Dale, Duck Tale Disney, Fox and Geese and Rally manufacture by Funskool - Matter referred to Third Member.- CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue involved is classification of the articles manufactured by the appellant assessee, Funskool (India) Ltd. While revenue classified them under 9504.90 as games, the assessee claimed classification under 9503.00. The classification claimed by the assessee attracts Nil rate of duty while the classification by revenue attracts 16% duty. The appeals are taken up by the Tribunal consequent to the directions of the Supreme Court to decide the classification of the goods manufactured based on the tests laid down in the earlier order of the Supreme Court in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=32&filename=legal/sc/2009/2009-TIOL-118-SC-CX.htm" target="_blank"><font size="1">2009-TIOL-118-SC-CX<em>. </em></font></a></strong></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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether additions are warranted when there is substantial increase in consumption of electricity but without corresponding increase in production and also no mention of work-in-progress in books - YES: HC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether additions are warranted when there is a substantial increase in consumption of electricity but without corresponding increase in production and also no mention of work-in-progress in books; Whether merely providing an explanation that Electricity Board would issue bills for minimum contracted units, whether they were consumed or not, can constitute sufficient evidence for showing the discrepancy between the power consumption and actual production and Whether the books of accounts can be rejected when in addition to the huge discrepancy between the productivity compared with the electricity consumption, the assessee has also not recorded the work in progress in its books of accounts. And the verdict goes against the assessee. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping - Appeal against Anti-dumping Notification No 33/2008 Cus dated 11.3.2008 fails - no flaw in Notification and the proceedings: CESTAT </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">VIDE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Customs Notification No.33/2008 dated 11/03/2008, definitive anti dumping duty was imposed with effect from 19th June 2007 on import of acetone (hereinafter referred to as the subject goods) originating in or exported from EU, Chinese Taipei, Singapore, South Africa and USA. The ADD was imposed based on the final finding of the Designated Authority vide Notification No. 4/04/2006-DGAD dated 04/01/2008 as amended by Notification No. 14/04/2006-DGAD dated 28.01.2008 recommending the said levy equal to the lesser of margin of dumping and margin of injury. These Notifications are under challenge in this appeal by the exporter appellant M/s Sasol Solvents from South Africa. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Tomorrow for the judgements </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>
</body>
</html>