TIOL-DDT 2318 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><strong><strong><strong><strong><strong><strong><strong><strong><strong><img width="115" height="125" border="0" align="right" src="image/ddt/10yearsDDT.jpg" alt="" /></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><font color="#006600"><strong><strong><strong><strong><strong><strong><strong><strong><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17063"><img width="175" hspace="5" height="120" border="0" align="right" src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" /></a></strong></strong></strong></strong></strong></strong></strong></strong></strong></font></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong></strong><font color="#663399" size="3">TIOL-DDT 2318</font><br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>21.03.2014<br> </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Friday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">Khush</font> <em><font color="#0000FF">Want</font> </em> Singh into the world of Khush</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> bulb is burst and the genie escaped into the other world - if there is a world dead people go into. I request the indulgence of DDT readers for a few minutes of tribute to my most favourite writer. (some of which may appear to be name dropping).</font></p> <p align="center"> </p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/khus_1ddt2318.jpg" alt="" width="500" height="340" hspace="5" border="0" align="center"></font></strong></font></p> <p align="justify"> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">I am a sort of Ekalavya for Khushwant Singh. Once he wrote about Members farting in the Rajya Sabha and that he was tempted to move a privilege motion against loud farters. I wrote to him that reading his piece was nauseating. He wrote back to me, <em>"you only had to read about it; I had to bear the stink."</em> To my long blabbering letters, he would reply in two or three sentences on a post card - handwritten. Every letter used to be invariably replied to - in his own handwriting. After some time I realised that it was criminal on my part to make the great writer reply to my stupid letters and I stopped writing to him.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He could increase the Circulation of the <em>Illustrated weekly of India </em> from 60,000 to 400,000 unheard of - for any Indian journal. He believed that articles should be short, precise and well researched - and that is the change that he brought in to the <em>Weekly</em>. His inspiration was of course the <em>Readers Digest</em>.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the earlier days, I had a tough time convincing my eminent writers and even some senior editorial colleagues in TIOL that long articles will not be read. Articles had to be short, straight and result of good research - now you see the quality of articles in TIOL.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Illustrated Weekly had a slogan -<em> "Make the Illustrated a Weekly Habit"</em> -When I started DDT, my ambition was to make DDT a Daily Habit in the tax fraternity. Khushwant's blurb from the bulb was to inform, amuse and irritate - which I follow religiously.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some 15 years ago, he was on a short visit to Visakhapatnam where I was living at that time. Having come to know about his programme, I sought an appointment. He gave me an hour - with my family. He was staying in a beautiful Guest House overlooking the sea with no phone. At the appointed time, I reached the Guest House without informing him in advance (no phone) and he received me and my family as if he was a close relative and he was eagerly waiting for us.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/khus_ddt2318.jpg" alt="" width="500" height="322" hspace="5" border="0" align="center"></font></strong><br> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I sent him a letter along with some photos. Promptly came back the reply in a post card with the words - <em>"I will cherish them as a memento of my visit to Vizag".</em> And that post card is my most cherished possession.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <a href="http://www.hindu.com/2000/01/08/stories/13081107.htm">http://www.hindu.com/2000/01/08/stories/13081107.htm</a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs and Khushwant</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">CHEATING Customs</font></strong> : Once, on my way back to London by boat, I bought a camera at Port Said. It was an expensive German camera newly out in the market. The shopkeeper who sold it to me gave me a receipt giving half its real price, so that I would not have much to shell out to British customs. At Southampton, where I disembarked and my luggage was examined, I showed my new purchase and the receipt. The custom official took the camera out of its leather case and showed me its market price printed on it, in Deutsch mark. It was double the price on the receipt. Very shamefacedly, I paid the duty demanded. I began to hate my camera. I couldn't get a single good photograph out of it. Years later, I gave it away to my son. He got many excellent shots out of the same camera.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Most of my foreign travel in later years was by air. I taught myself a few tricks. While in Bombay I had the logo of <strong>The Illustrated Weekly of India</strong>, of which I was the editor, reproduced on my suitcases. Customs officials were impressed and did not ask me too many questions. In Delhi I did the same with the logo of <strong>The Hindustan Times </strong> boldly displayed on my luggage. I was rarely asked to open my only suitcase. I walked through the green channel 'nothing to declare' with my head held high. I never felt guilty of cheating the customs.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since customs officers got X-rays which show all there is in your baggage, it has become difficult to sneak in taxable items without paying tax on them.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Indignant tone of righteousness </font></strong>: When you really know you have nothing to declare and a customs official refuses to believe anything you say, you can strike an indignant tone of righteousness. This happened to me when my wife and I were returning from a conference in Colombo. We had bought nothing, as there was nothing worth buying. However, a cheeky young lass of Madras customs, new to her job, went through all we had and found nothing taxable. Her eyes fell on the gold Rolex watch I was wearing. She asked me to show it to her. I did so and told her it had belonged to my late father and was given to me by my mother when he died many years ago. And that I had been going in and out of foreign countries without anyone asking questions about it. <em>"Why have you not put it in your passport?"</em> she demanded.<em> "Don't be silly,"</em> I roared, <em>"Why the hell should it be on my passport?"</em> She promptly reported my behaviour to her senior officer. He came fuming and asked me if I had used the word silly for her. I continued to roar,<em> "You ask silly questions, you are silly. I am not paying duty on a 20-year old wrist watch. Do what you like."</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">My tone carried the day. Or perhaps the label on my case, <em>"Editor, The Hindustan Times."</em> He apologised and let me go.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Hug the Customs Boss</font> </strong>: I was returning from Singapore loaded with dutiable goods like a camera and transistor radio and dreaded having to pay heavy customs duty. Unknown to me Parveen's parents were on the same flight. I came out ahead of them and was warmly received by Parveen. The customs officers looked the other way as I was hugging their boss.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(<em>Reference is to Parveen Talha who was then the Customs Commissioner</em>)</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Screw Allowed - Playboy not</font> </strong>: Once when I was in the US I took a year's subscription to Playboy and wrote to its editor not to have the name of the magazine on the wrapper. He ignored my request. No sooner, than the first copy arrived, I got a letter from the Indian Customs asking me to explain why I was receiving obscene literature. I have little doubt the customs chaps enjoyed looking at the girlie pictures and even sold the journal at a considerable profit!</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I ran into the head of Bombay Customs and told him that while my copies of the <em>Playboy </em> were regularly seized for obscenity, a really obscene journal <em>Screw </em> escaped their attention. He made enquiries and discovered that the officer concerned had assumed that <em>Screw </em> was an engineering magazine!</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Beyond reach - for litigation</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MANEKA</strong> Gandhi had got an injunction against publication of his autobiography from the Delhi High Court - which was of course set aside by a Division Bench four years later.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Khushwant Singh had some comments about the High Court judge who passed the injunction order. The Judge had pronounced,</font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"…. As a matter of common knowledge he (Khushwant Singh) is a learned person with wide experience, having moved with great personalities in India and abroad. Any person would expect from him materials useful to the society which would inspire the younger generation …. Generally, people would expect from great writers high thinking, higher living and high learning. The law in India does not permit scrawly writing by individuals just for the purpose of satisfying their impulses arising out of personal animosities."</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Khushwant Singh wrote,</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"Thanks Justice, for telling me what I should write about and how. I chose to ignore your advice, as any writer worth his salt would, with a <strong>smile on my lips and contempt in my heart</strong>."</em></font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maneka had appealed against the order of the Division Bench of the High Court. He wrote in his autobiography, <em>"by the time the case is decided, I will probably be well beyond her reach. I am now getting on to eighty-eight."</em> He wrote this in 2002 and he is right; he waited for 11 years and is now out of her reach - and out of reach for all of us.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That was Khushwant Singh - It was not Sex, Scotch and Screw as publicised, but scholarship and strength unparalleled.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax Offices to be open on the last three days of March 2014</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the video conference the Chairperson, CBDT had with senior officers of the Income Tax Department yesterday, it was decided that:</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. All Income Tax Offices will be kept open on 29th, 30th and 31st March, 2014.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. On 22.03.2014, all the charges would mandatorily hold meeting for disposal of compounding of offences cases.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Assessing Officers/Addl.CIT/CIT/CCIT involved in assessment work and collection of taxes shall not leave Headquarter upto 31.03.2014, In case of any emergent requirement, permission for leaving Headquarter by any officer mentioned above is to be taken from respective Zonal Member.</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to achieve the target, a further net collection of Rs. 50,204 crore is required. An analysis with reference to collections in respect of each CCIT(CCA), the growth trend till date and the growth trend with reference to minor heads suggested that the target could be reached provided there is no slacking of efforts. In order to achieve the Budgetary Targets, all officers across the country should show commitment to work 24 X 7 hours for remaining 11 days of the Financial Year.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/IT_OM.htm"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT Office Memorandum in F. No. 402/46/2014-ITCC, Dated: March 20 2014</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax - Extension of date for receipt of ITR-Vs in CPC</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> are many taxpayers who have uploaded their Income Tax Returns (without digital signature Certificate) for A.Y. 2012-13 (filed between 1.4.2012 to 31.10.2013] and for A.Y. 2013-14 [filed between 1.4.2013 to 31.10.2013], but have either not filed the corresponding ITR-V or have filed it with the local Income-Tax Office. ITR-V is accepted only at CPC, Bengaluru by ordinary or speed post.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Therefore an opportunity is being given to such taxpayers to regularize their Income-tax returns.All such taxpayers may mail the ITR-V, by 31st March 2014, by ordinarypost or speed post at Post Bag No.1, Electronic city Post Office, Bengaluru-560100 (Karnataka). Taxpayers who have filed their ITR-V with the local Income-tax office may again mail their ITR-V to the CPC by 31st March, 2014. Those taxpayers who have earlier mailed their ITR-V, but have not received the acknowledgement e-mail from the CPC, may mail their ITR-V to the CPC again.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ITR-V form should be mailed to the CPC only at the above address by ordinary post or speed post. <strong>No other place or form of delivery will be accepted</strong>.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Without acknowledgement of the ITR-V from the CPC, it would not be possible for the Income-tax Department to process the Income-tax returns or issue any refunds, as these would be treated as not having been filed with the Department.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=350&filename=notification/cbdt/dit_systems/Extension_ITR-Vs.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DIT, Systems Notification, Dated: March 19 2014</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - New Exchange Rates from Today</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has notified new exchange rates for Imported Goods and for Export Goods with effect from 21 March 2014. The US Dollar is 61.75 rupees for imports and 60.75 rupees for exports.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Exchange rates were last notified on 06 March 2014.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2014/cnt14_024.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 24/2014-Cus (N.T.), Dated: March 20, 2014</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty imposed on Red Phophorus - 's' missing from phosphorous - Spelling mistake may cause litigation</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has proposed to impose anti dumping duty on 'Red Phosphorous, excluding red phosphorous used in electronic applications', falling under Chapter 28 of the First Schedule to the Customs Tariff Act, originating in, or exported from the People's Republic of China, and imported into India.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board either does not have a spell checker or does not use it. In the Table in the Notification prescribing the rates of anti dumping duty, the product is mentioned as <strong>Red Phophorus </strong> - please note that <em>"s"</em> is missing after 'pho'. So, now the product is phophorus and not phosphorus. There is no product by name 'phophorus' and so no anti dumping duty. Should law-making be so casual?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board will come up with a backdated correction.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2014/ctariffadd14_013.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 13/2014-Cus (ADD), Dated: March 19, 2014</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti Dumping Duty imposed on Sodium Nitrate</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has imposed provisional anti dumping duty on Sodium Nitrate,falling under Chapter 28 or 31 of the First Schedule to the Customs Tariff Act, originating in, or exported from the European Union, the People's Republic of China, Ukraine and Korea RP and imported into India.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anti-dumping duty imposed under this notification shall be levied for a period not exceeding six months (unless revoked, amended or superseded earlier) from the date of publication of this notification.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2014/ctariffadd14_014.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 14/2014-Cus (ADD), Dated: March 19, 2014</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income tax - interest - Refund due and payable to the assessee is debt-owed and payable by the Revenue. :Supreme Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RECENTLY</strong>, the Supreme Court delivered a landmark judgement on interest payable on Income Tax refunds. The issues before the Apex Court are - Whether the statutory obligation to refund carries with it the right to interest also; Whether when the assessee deposits tax as per an order passed u/s 195(2), the Revenue is under obligation to pay interest on refund processed as per the appellate order and Whether interest obligation arises for the Revenue in every case where excess tax paid has been retained by the State for its own enjoyment.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court observed, "<em>providing for payment of interest in case of refund of amounts paid as tax or deemed tax or advance tax is a method now statutorily adopted by fiscal legislation to ensure that the aforesaid amount of tax which has been duly paid in prescribed time and provisions in that behalf form part of the recovery machinery provided in a taxing Statute. Refund due and payable to the assessee is debt-owed and payable by the Revenue. The Government, there being no express statutory provision for payment of interest on the refund of excess amount/tax collected by the Revenue, cannot shrug off its apparent obligation to reimburse the deductors lawful monies with the accrued interest for the period of undue retention of such monies. The State having received the money without right, and having retained and used it, is bound to make the party good, just as an individual would be under like circumstances. The obligation to refund money received and retained without right implies and carries with it the right to interest. <strong>Whenever money has been received by a party which ought to be refunded, the right to interest follows, as a matter of course</strong></em>.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This will have far reaching consequences in all tax statutes.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this judgement today rather belatedly - Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=20033" target="_blank">Breaking News</a>.</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT Cartoon</strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Cartoon_2318.jpg" alt="" width="500" height="564" hspace="5" border="0" align="center"></font></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> - Monday's cases</font></strong></font></strong></font></p> <p align="justify"><strong><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></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise</font></strong></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Recovery - Appeal not disposed within a period of 365 days - Vacation of Stay - as the appellant has already paid the duty amount and stay granted was in respect of penalty/interest, department is restrained from proceeding with any coercive measures - Misc. application allowed: CESTAT</strong></font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AGAINST</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> the order passed by the CCE, Raigad, confirming the duty and imposing penalty/interest, the appellant had filed a Stay application & an appeal before the CESTAT in the year 2010.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vide an order dated 20.06.2011, the CESTAT had granted a Stay in the matter from pre-deposit of interest and penalty as the duty demanded was already paid by the applicant. This Stay granted was extended, till the disposal of the appeal, by the Bench in November, 2013.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In spite of the above orders of the CESTAT, the jurisdictional Range Superintendent addressed a letter to the applicant directing him to make payment of interest and penalty citing the amended provisions of section 35C of the CEA, 1944 and in terms of which if the appeal is not disposed of within the total period of three hundred and sixty-five days of the stay order, the stay order shall, on the expiry of the said period, stand vacated.</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 when power tariff incentive received by assessee from State Govt goes towards reducing electricity bill, the same is to be treated as revenue receipt - YES: High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE assessee considered industrial power tariff concession granted by the Tamil Nadu Government as capital receipt. The AO treated the same to be a revenue receipt. As regards the deduction u/s 80HHC, in respect of scrap sales, the AO followed the earlier year's order and included the same in the total turnover of the assessee. The CIT(A) while considering the issue relating to power tariff concession, rejected the Assessee's claim and pointed out that the subsidy given by way of power tariff concession was not related to production. Regarding the deduction u/s 80HHC in respect of sale of scrap, the CIT(A) confirmed the order of the AO.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal held that the power subsidy was of revenue in nature, especially when subsidy had gone to reduce the electricity bills and rejected the case of the assessee. With regard to the scrap sales, the Tribunal held that it had to be included in the total turnover in the denominator.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issues before the Bench are - Whether when the power tariff incentive received by the assessee from the State Govt goes towards reducing the electricity bill, the same is to be treated as revenue receipt and Whether scrap sales should be included in the total turnover for the purpose of computing deduction u/s 80HHC. And the verdict partly goes in favour of Revenue.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Commercial Training or Coaching Service - Consideration received by sale of prospectus and admission forms prima facie cannot be considered as a part of the service provided - Order confirming demand set aside and matter remanded: CESTAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> applicant is registered Service Tax assessee under the category of <em>"Commercial Training or Coaching Service" </em>and paying appropriate service tax. The case of the Revenue is that during the period 2006-2012 the applicant had sold prospectus and admission forms for a consideration and had not paid service tax on such consideration.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The adjudicating authority confirmed the demand of Rs.5,17,707/- along with interest and penalty.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner (Appeals) directed the appellant to deposit service tax along with interest but since the appellant failed to comply with the condition of the stay order, the appeal was dismissed by the Commissioner (Appeals) without going into merits.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Monday for the judgements</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Have a nice weekend.</strong></font></p> <p align="justify"><font color="#FF6633" 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>