TIOL-DDT 2302 · the untouched capture
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<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 width="115" height="125" border="0" align="right" src="image/ddt/10yearsDDT.jpg" alt="" /></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><strong><strong><strong><strong><strong><strong><strong><strong><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17063"><img width="175" hspace="5" height="120" border="0" align="right" src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" /></a></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong><font color="#663399" size="3">TIOL-DDT 2302</font><br>
26.02.2014 <br>
Wednesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner (Appeals) Dismisses Appeal for failure to make pre-deposit - What is Remedy? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AN</strong> Additional Commissioner passes an order demanding a duty/tax of about Rs. 40 Lakhs. You appeal to the Commissioner (Appeals) with a prayer for waiver of pre-deposit. [The Commissioner (Appeals) is considered by the Department as a Catalyst for Revenue collection; he is asked to attend Revenue Drive meetings conducted by the Chief Commissioners and is expected to boost revenue collection by liberal doses of pre-deposit.] So, the Commissioner (Appeals) orders a pre-deposit. You appeal to him again to reconsider his order of pre-deposit as your financial position is precarious. The Commissioner (Appeals) is not convinced and he asserts that once he passes an order he becomes a <em>functus officio</em> and he cannot review his own order. So he dismisses your appeal, as you have not complied with his orders of pre-deposit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is not a hypothetical situation but a real life fact for many an assessee. And this can happen in Customs, Excise or Service Tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What do you do in such a situation? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nobody had any clear idea. Some said you have to file a writ in the High Court; some said you can appeal to the Tribunal. Over the years it rather got settled that an appeal can be filed before the Tribunal and various Benches of the Tribunal have been hearing such appeals and remanding the matters to the Commissioner (Appeals) with or without pre-deposit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Then came a bombshell in the shape of<em> Aakash Cable TV Network vs. CC & CE, Jaipur II</em>, <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTA5ODE="><strong><font size="1">2013-TIOL-1807-CESTAT-DEL</font></strong></a>. In this case, the Tribunal held that </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">the appellant was bound to comply with the order of pre-deposit as directed, unless he had obtained an eclipse of the order in appropriate proceedings, including perhaps in judicial review. Not having done so, the consequences must follow. There was failure of pre-deposit and consequently in view of the provisions of Section 35F of the Central Excise Act, 1944, the order of Commissioner (Appeals) dismissing the appeal is impeccable and warrants no interference . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Suddenly all established norms became irrelevant and the Commissioner (Appeals) became a virtual Supreme Court with no appellate authority against his orders. Advocate BN Gururaj writing for us - <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=19446"><strong>Suspended from Aakash by Cable</strong>! </a>observed, <em>"One hopes that this ratio does not become the law of the land, and the appellant will challenge this judgment in appeal and have it set aside."</em> Several other cases were decided on the line of <em>Aakash Cable</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Relief came, but through a different unexpected route: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In an order delivered just six days ago (and made available yesterday), the Tribunal had an occasion to view this issue again. As the issue is a recurrent one and has general application, Tribunal invited the bar to make submissions in the case of <em>Girnar Transformers Pvt. Ltd. Vs CCE, Kanpur</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After referring to nearly fifty decisions of various Authorities from Tribunal to Supreme Court, the CESTAT held: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. While considering an application for waiver of pre-deposit, the appellate Commissioner is required to avoid a mechanical and ritualistic approach. A waiver of pre-deposit application must be disposed of applying the principles set out in the judgments of the Allahabad High Court in<em> <strong>ITC vs. Commissioner (Appeals) Meerut</strong> </em>- <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=33&filename=legal/hc/2004/2004-TIOL-53-HC-ALL-CX.htm"><strong><font size="1">2004-TIOL-53-HC-ALL-CX</font></strong> </a>and the A.P. High Court in <em><strong>CCE, Guntur vs. Sri Chaitanya Educational Committee</strong></em> - <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2011/2011-TIOL-147-HC-AP-ST.htm"><strong><font size="1">2011-TIOL-147-HC-AP-ST</font></strong></a>.; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The Commissioner (Appeals) has the power, authority and jurisdiction to entertain an application for rectification or modification of an order of pre-deposit/ stay passed by that authority. While no power is specifically conferred on the Commissioner (Appeals) either under Sections 35 or 35A of the 1944, Act to review his own decision; and though the provisions of Section 35C(2) of this Act confer the power (to rectify any mistake apparent on the record) only on this Tribunal, the Commissioner (Appeals) may entertain an application for rectification/ modification of a pre-deposit order, but only for rectification of an error on the face of the record; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The appellate Commissioner could avoid an invitation/ plea for rectification by a careful, good faith and critical analysis of the prima-facie merits of the case and other relevant parameters, while disposing of an application for pre-deposit. Adjudicatory discipline mandates that the appellate Commissioner must follow established judicial norms by unreservedly following decisions of the Supreme Court, the High Courts and of this Tribunal, wherever such decisions operate and are brought to his notice, instead of proceeding on an independent analysis of the applicable legal provisions and persisting in applying such interpretation though it be at variance with interpretations by the Supreme Court, the High Court or the Tribunal, as the case may be; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. An appeal to this Tribunal is maintainable against an order of the Commissioner (Appeals) dismissing an appeal for failure of pre-deposit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Since an order of pre-deposit passed by the appellate Commissioner, in exercise of discretion under Section 35F of the 1944 Act amounts to an order passed under the generality of the appellate jurisdiction under Section 35, an appeal lies to this Tribunal against such order as well, apart from an appeal against the final order dismissing an appeal for failure of pre-deposit;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. While considering an appeal preferred against a final order passed, rejecting an appeal for failure of pre-deposit, the Tribunal is authorized to consider the correctness/ appropriateness of an earlier order (of pre-deposit) passed by the appellate Commissioner, the non compliance whereof resulted in dismissal of the appeal by that authority; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. While disposing of an appeal against a final order of the appellate Commissioner, (dismissing an appeal for failure of pre-deposit), the Tribunal shall not adjudicate upon the merits of the appeal. If the order of pre-deposit passed by the Commissioner (Appeals), in the given facts and circumstances is erroneous, the Tribunal is required to set aside the order of the appellate authority and remit the matter to the appellate Commissioner for de novo consideration, after passing an appropriate order as to pre-deposit. (</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">This is what the Tribunal has been doing all these days) </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Surprisingly the Tribunal made absolutely no reference to the <em>Aakash Cable TV Network</em> case and why it was being deviated from. Incidentally the Hon'ble president wrote both the orders in <em>Aakash Cable</em> and the present case. Maybe Precedent does not apply to the President. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But who are we to complain against an order hugely favourable to the assessee and which is absolutely fair and just? But what will happen to <em>Aakash</em> and other victims of <em>Aakash</em>? The moot point is whether justice should be of men or laws - if the laws keep changing according to the men who occupy the seats of justice, the victims are the ones who are expected to follow the law - whatever that is. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We (and only we - at least for a few more hours) bring you this important order today. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=19866" target="_blank">Breaking News.</a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CENVAT Credit Rules - Input Service Distributor - Rule 7 Amended </font></strong></p>
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<td colspan="2" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Manner of distribution of credit by input service distributor. - The input service distributor may distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the following conditions, namely:- </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon; </font></p></td>
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<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing Rule </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As Amended </font></strong></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) credit of service tax attributable to service </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"> used in a unit</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed; </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) credit of service tax attributable to service </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"> used by one or more units</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed; </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) credit of service tax attributable to service used </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"> wholly in a unit</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> shall be distributed only to that unit; and </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) credit of service tax attributable to service used </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"> wholly by a unit</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> shall be distributed only to that unit; and </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) credit of service tax attributable to service used in more than one unit shall be distributed pro rata on the basis of the turnover during the relevant period of the concerned unit to the sum total of the turnover of all the units to which the service relates during the same period. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">(d) credit of service tax attributable to service used by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period. </font></p></td>
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<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Explanation 1.- For the purposes of this rule, "unit" includes the premises of a provider of output service and the premises of a manufacturer including the factory, whether registered or otherwise. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Explanation 2.- For the purposes of this rule, the total turnover shall be determined in the same manner as determined under rule 5. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Explanation 3. - (a) The relevant period shall be the month previous to the month during which the CENVAT credit is distributed. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) In case if any of its unit pays tax or duty on quarterly basis as provided in rule 6 of Service Tax Rules, 1994 or rule 8 of Central Excise Rules, 2002 then the relevant period shall be the quarter previous to the quarter during which the CENVAT credit is distributed. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) In case of an assessee who does not have any total turnover in the said period, the input service distributor shall distribute any credit only after the end of such relevant period wherein the total turnover of its units is available. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Explanation 3.- For the purposes of this rule, the ‘relevant period' shall be,- </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">(a) If the assessee has turnover in the ‘financial year' preceding to the year during which credit is to be distributed for month or quarter, as the case may be, the said financial year; or </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">(b) If the assessee does not have turnover for some or all the units in the preceding financial year, the last quarter for which details of turnover of all the units are available, previous to the month or quarter for which credit is to be distributed. </font></p></td>
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</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, the CBEC had vide letter <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/draft_cir_amendment_rules.htm" target="_blank">F. No. 354/246/2012-TRU</a><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/draft_cir_amendment_rules.htm"> dated December 17, 2013</a></strong> informed that subsequent to the amendment done to rule 7 of CCR, 2004 with effect from 01.04.2012 and 01.07.2012, the trade had represented that procedural difficulties are being faced in distribution of input service credit by input service distributor (ISD) under rule 7 of the CCR, 2004 and that the same issue was raised in the forum for exchange of views between Industry Groups and Government chaired by the Adviser to Finance Minister. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board had, therefore, examined the issue and proposed to amend the rule to address the concerns of the trade. The proposed changes to the existing rule 7 of the CENVAT Credit Rules, 2004 were shown in Italic, bold with underlining <strong>or striking of the portion which is to be deleted. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had covered this ‘proposal' in <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=19316">DDT 2254 </a></strong>18.12.2013<strong>. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wanted comments/views/suggestions before 27th December, 2013 and they hoped to finalise the issue by 31/12/2013. <font color="#FF0000">[See <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTkzMDg=">Shome Panel plays role in simplifying procedures and issuance of clarifications </a>]</strong></font></font> </p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">That date came and went by nearly two months back. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And now the amending notification arrives on to the scene stealthily and without much of a fuss. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Hope the concerns of the trade have been mitigated at least now. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">There is still a scope for change as the amendments would be effective from 1 st April, 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2014/exnt14_05.htm" target="_blank"><strong>Notification No. 5/2014 - CX., (N.T.), Dated: February 24, 2014 </strong></a></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Revision in Appendix 37 A and 37 D of Handbook of Procedure </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DIRECTOR</strong> General of Foreign Trade has notified revised Appendix 37 A and 37 D of the Handbook of Procedure- Volume-I (Appendices and Aayat Niryat Forms). This shall come into force with immediate effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Product description and ITC HS codes of items mentioned in Appendix 37-A and 37-D of HBPv1 have been harmonised. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn052.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 52/2009-2014 (RE- 2013), Dated: February 25, 2014 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Focus Marketing Scheme - Amendment in Customs, CE and ST Notifications </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Notification No. 93/2009-Customs, dated the 11th September, 2009, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the purpose of calculation of export performance or for computation of entitlement under paragraph 3.14.4 or paragraph 3.14.5 of the Foreign Trade Policy, the incremental growth shall be in respect of each exporter [Importer Exporter Code (IEC) holder] without any scope of combining the export for group company or for transferring export performance from any other IEC holder and the incremental growth shall be in terms of freely convertible currency to the designated markets. The following categories of exports shall not be counted for calculation of export performance or for computation of entitlements: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Export of imported goods or exports made through trans - shipment; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Export from SEZ/ EOU /EHTP /STPI /BTP/FTWZ; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Deemed Exports; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Service Exports; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Third Party exports; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi - precious stones; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Ores and concentrates of all types and in all formations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) Cereals of all types; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) Sugar of all types and all forms; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(x) Crude/petroleum oil and crude/primary and base products of all types and all formulations; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xi) Export of milk and milk products; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xii) Export performance made by one exporter on behalf of other exporter; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xiii) Supplies made to SEZ units; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xiv) Items, export of which requires an export authorisation (except SCOMET); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xv) Export of Meat and Meat Products; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xvi) Exports to Singapore, UAE and Hong Kong, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xvii) SEZ/EOU/EHTP/BTP/FTWZ products exported through DTA units. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xviii) Cotton (for the paragraph 3.14.5 of the Foreign Trade Policy); </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">(xix) Cotton Yarn (for the paragraph 3.14.5 of the Foreign Trade Policy); </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(xx) Export which are subject to Minimum Export Price or Export Duty (for the paragraph 3.14.5 of the Foreign Trade Policy). </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, Sl. No.xix is deleted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar amendments are made in Notification No.30/2012-Central Excise, dated the 9th July, 2012 and Notification No.6/2013-Service Tax, dated the 18th April, 2013 </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2014/ctariff14_007.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No.07/2014-Cus, Dated: February 24, 2014 </strong></font></a></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2014/etariff14_05.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 05/2014-CE, Dated: February 24, 2014 </font></strong></a></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2014/stnot14_005.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 05/2014-ST, Dated: February 24, 2014 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibition of improper use of State Emblem of India </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><img src="http://www.taxindiaonline.com/RC2/image/stories/Emblem.jpg" alt="Legal Corner Icon" width="76" height="126" hspace="5" border="0" align="left">CBDT</strong> has informed all the Chief Commissioners that <em>use of State Emblem on the cars provided to the officers of the Department is not authorized as per provisions of State Emblem of India (Prohibition of Improper Use) Act, 2005</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some instances of violation of the provisions of Act were brought to the notice of the Finance Minister, who has taken a serious view of matter. All CCsIT are directed to ensure that the provisions of State Emblem of India (Prohibition of Improper Use) Act, 2005 are not violated by unauthorized use of State Emblem in the official cars. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has requested that compliance of the advisory be ensured by officers under the charge of the Chief Commissioners. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the Emblem of India (Prohibition of Improper Use) Act, 2005, even the Finance Minister is not entitled to display the National Emblem on his car - which privilege in India is extended only to the President, Vice-President and State Governors.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When you see some babu with the National Emblem on his car, you see an offender and not an officer of the State. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/cbdt_emblem.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT F.No. A-35015/17/2014-Ad.VI, Dated: February 25, 2014 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">This is Utopia! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IF </strong>you are a young girl and want to get married, the State will give you Rs. 25,000 and 4 grams of gold - if you are a young girl with a college degree and still want to get married, the benign State will give you Rs.50,000/-. The State Cable TV Corporation will bring channels right into your home at almost no cost; if your children need milk, the State will give you cows or goats as per your preference; if you are a little too old to marry that young girl, you will get Rs. 1000 per month; If the married woman becomes pregnant, she will get Rs. 12,000 - all that she has to do is deliver the child; If your child manages to reach college, he will get a laptop; there will be 69 percent reservation in jobs and education; 33 per cent reservation for women in Legislatures; all rivers will be nationalised and interlinked; there will be no sale of shares of PSUs; India will be made a Permanent Member of the UN Security Council; black money lying in foreign countries will be brought back; stringent action will be taken against those taking shelter under double taxation avoidance agreements to evade tax. <strong>Income Tax exemption limit will be increased to Rs. 5 Lakhs</strong>; Action will be taken to create at least ten crore jobs in the next five years across the Country; <strong>The recommendations of the 7th Central Pay Commission will be implemented for all Central Government employees</strong>; corruption free Government will be formed at the Centre. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And what should you do to get all the above benefits? Simple! Vote AIADMK and make Jayalalithaa the Prime Minister of India and if you don't reside in Tamil Nadu, vote for somebody who will make Amma the PM. The above promises are from AIADMK's Election Manifesto. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More will come in the days to come!</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"> - Thursday's cases</font></strong></font></strong></font></p>
<p><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">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Release of vessel - Stay order passed by CESTAT was not only an order passed in exercise of jurisdiction u/s 129E of Customs Act, 1962 dispensing with requirement of depositing duty and penalty but also in exercise of its inherent jurisdiction as an appellate authority - Revenue appeal rejected: HC </font></strong></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YOU</strong> have to hand it to the Revenue to challenge the order of the Tribunal and get a stick in return! </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The short facts of this interesting case go thus - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ The Tribunal had passed an order dated 17.05.2013 wherein stay was granted and pre-deposit of the dues adjudged against the appellant was waived and all further proceedings pursuant to the adjudication order was stayed subject to the appellant keeping the Bond for Rs.96,56,83,838/- and the Bank Guarantee for the duty demand of Rs.9,24,04,082/- alive. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ The appellant complied with the said directions but <font color="#FF0000">the Customs Authorities were not permitting them to take the vessel out of India for executing certain urgent work. </font></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 when CIT(A) has given detailed findings about project being 'foreign' in nature, Sec 80HHB benefits can be disallowed by mere cryptic order passed by Tribunal - NO: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee is engaged in assembly, reassembly, installation, renovation, continuous updating of machineries, plants, mechanical, electronic and air conditioning systems on board foreign vessels mostly while the vessel is sailing on high seas with the help of highly efficient, quality conscious and competent technicians approved for the class of vessels they are to work on with most modern computerised techniques. It could not file any evidence or document to show that there was any kind of project/contract with any foreign company except that it was engaged in supplying labourer on a particular project. Thus, the Tribunal disallowed deduction under Section 80HHB. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE issues before the Bench are - Whether when the CIT(A) has given detailed findings about the project being 'foreign' in nature, Sec 80HHB benefits can be disallowed by a mere cryptic order passed by the Tribunal and Whether such project work can be categorised as a mere repair and maintenance work. And the verdict favours the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">NDPS </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">DRI fumbles on drug seizure - leave to appeal against the order of Trial Court refused - HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> case can perhaps be used in NACEN to train the officers as how not to do a seizure, especially in proceedings under allied Acts like NDPS Act. It is sad to see a drug peddler walking scot free due to costly technical mistakes by the DRI. The Trial Court acquitted the accused on some serious technical grounds like the DRI had faked the documents, manipulated summon document and officer who seized the contraband had no authorization etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is a petition seeking leave to appeal against the impugned judgment dated 14th February 2013 passed by Special Judge, NDPS in Sessions Case No. 18A/08 acquitting the Respondent of the offences under Sections 21 and 27A of Narcotic Drugs and Psychotropic Substances Act, 1985 (‘NDPS Act'). </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 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"> <strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p>
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