TIOL-DDT 2355 · 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 face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><font size="2"><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 color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=20079"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2014_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="250" height="123" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2355 </font><br> 19.05.2014 </strong><br> <strong>Monday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Dr. Ravindra Babu IRS is now MP -Triumphant </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ravindra.jpg" alt="" width="60" height="58" hspace="5" border="0" align="left"></font></strong><strong>THE</strong> Tax Laws enforcement officer has now become the Law Maker. As predicted by us, Dr. Ravindra Babu former Additional Commissioner of Customs and Central Excise has won from the Amalapuram Lok Sabha Constituency in Andhra Pradesh with a thumping majority of over one lakh twenty thousand votes. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When DDT called him up to congratulate him, he was proudly celebrating the sweet victory. He said he hardly had twenty days to campaign and he was able to make an impact in the constituency. The shrewd taxman chose the right party at the right time and is now an honourable Member of Parliament. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We understand that there are two other IRS officers who are entering the hallowed portals of India's Parliament. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/sriram.jpg" alt="" width="60" height="76" hspace="5" border="0" align="left"></font></strong><strong>Malyadri Sriram</strong>,a former Commissioner of Income Tax has won from the Bapatla constituency in Andhra Pradesh. Like Dr.Babu, Sriram was also a TDP candidate. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This seat was earlier represented by Union Minister Panabaka Lakshmi who polled about 23,000 votes compared to the 5,78,000 votes by Sriram. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sriram popularly known as SM Anna, not exactly new to politics, was defeated from the same seat in 2009. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/udita.jpg" alt="" width="60" height="81" hspace="5" border="0" align="left"></font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Dr.Udit Raj</strong>, a 1990 batch IRS officer resigned as Additional Commissioner of Income Tax in 2003 to enter active politics. He founded the Indian Justice Party in 2003. In the Income Tax Department he was senior to Arvind Kejriwal. He calls the <em>Aam Aadmi Party </em>as the <em>'Jhooth Aadmi Party'</em>. And now Raj has won the North West Delhi Lok Sabha Constituency by a convincing margin of over a lakh of votes against the nearest AAP candidate Rakhi Birla with the Union Minister and sitting MP KirishnaTirath relegated to a third place. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Udit Raj was active in social work before joining the BJP to contest the 2014 elections. He says that the living conditions of the people, the lack of sanitation and sewer facilities appalled him when he was canvassing in some of the areas. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With three IRS officers - all belonging to the same social group elected to Parliament, at least one of them is sure to become a Minister. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anti-dumping duty on NTCF extended till April, 2015 </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> ADD on import of Nylon Tyre Cord Fabric originating in or exported from the People's Republic of China was originally imposed by notification No. 72/2004-Customs, dated the 26<sup>th</sup> July 2004 provisionally and confirmed by Notification No. 36/2005-Cus, dated 27.04.2005.The said notification which would have expired on 26.07.2009 was rescinded by notification 42/2009-Cus.dated 29<sup>th</sup> April, 2009. Inasmuch as the Government re-imposed the anti-dumping duty <font color="#FF0000">much before its expiry </font>by a fresh notification 41/2009-Cus dated 29<sup>th</sup> April, 2009. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Those were the days! </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But now what happened is that the notification 41/2009-Cus dated 29 <sup>th</sup> April, 2009 lost steam after five years on 28<sup>th</sup> April, 2014. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps everyone in the Board was too busy to notice this. So, after more than a fortnight, an amending notification was issued and which simply inserts the following paragraph in the notification - </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"3. Notwithstanding anything contained in paragraph 2, this notification shall remain in force up to and inclusive of the 28th day of April, 2015, unless revoked earlier". </font></em> </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The result is that the anti-dumping duty continues on the import of the subject goods till 28<sup>th</sup> April, 2015. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2014/ctariffadd14_021.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 21/2014-Customs (ADD), Dated: May 16, 2014</font></strong></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Definitive anti-dumping duty imposed on Persulphates </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Central Government has imposed definitive anti-dumping duty on 'Peroxosulphates' also known as 'Persulphates' [Chapter 28] originating in, or exported from the Taiwan, Turkey and the United States of America and imported into India. The anti-dumping duty imposed under this notification shall be effective for a period of five years. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2014/ctariffadd14_022.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 22/2014-Customs (ADD), Dated: May 16, 2014 </font></strong></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Provisional anti-dumping duty imposed on imports of Phenol for 6 months </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Government has imposed provisional anti-dumping duty on imports of Phenol [Chapter 29] originating in, or exported from Chinese Taipei and the United States of America 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 <strong><em>six months </em></strong> (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_023.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification 23/2014-Customs (ADD), Dated: May 16, 2014 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs - New Exchange Rates from 16 <sup>th</sup> May </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified new exchange rates for Imported Goods and for Export Goods with effect from 16 <sup>th</sup> May 2014.The US Dollar is 60.10 rupees for imports and 59.10 rupees for exports. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The popular perception is that the rupee would dramatically surge with a stable government at the helm. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Standard & Poor's Ratings Services expects the new government's reform initiatives in economic and fiscal policies in the next two to three months to have significant implications on the sovereign credit rating on India. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Exchange rates were last notified on 1<sup>st</sup> May, 2014. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2014/cnt14_042.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.41/2014-Cus (N.T.), Dated: May 15, 2014 </font></strong></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - Enlistment under Appendix 4C- Agencies Authorized to issue Certificate of Origin (Non-Preferential)</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>DGFT has authorised Trade Promotion Council of India to issue Certificate of Origin (Non Preferential). Accordingly, name of the above agency is added at Serial No. 12 (Delhi) of Appendix 4C (List of Agencies Authorized to issue Certificated of Origin-Non-Preferential) to Handbook of Procedure Vol.I, 2009-2014 (Appendices & ANFs). </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn060.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No.60/(RE 2013)/2009-2014, Dated: May 15 2014 </strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - Agencies Authorised to Issue Certificate of Origin - Appendix 4D Amended </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>DGFT has made certain changes to the Appendix 4D.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bilateral/Regional Preferential Trade Agreements signed by India are being included along with their respective agencies authorized to issue Certificate of Origin (Preferential) . While, the Export Inspection Council (EIC) is mandated to issue Certificate of Origin (Preferential) for all goods under all trade agreements; Marine Products Export Development Authority (MPEDA) is also now being authorized to issue Certificate of Origin (Preferential) for Marine products under all trade agreements. In addition, with respect to textiles and made ups, the Textiles Committee is being authorized to issue Certificate of Origin (Preferential) under India -Japan Comprehensive Economic Partnership Agreement (IJCEPA). </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2013/dgft13pn059.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No.59/(RE 2013)/2009-2014, Dated: May 15 2014</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Modi-fied Tax Administration</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a few days the new Government will be in place and we will have a new Finance Minister. Will he be a technocrat or a politician? Whoever he is, he has a tough job ahead and expectations are very high. Arun Jaitley who wanted the income tax exemption limit to be Rs.5 lakhs, lost his election. He can claim that people did not want that exemption.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">BJP is said to be pro-business and if that is true, there are several reforms which are urgently needed in the tax sector. Draconian provisions of arrest, attachment, pre-deposit of insane amounts of illegally confirmed demands, frivolous and unwanted litigation - need changes.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The PM Designate talks a lot about Small Scale Industries - perhaps they need a steep hike in the excise exemption limit.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The outgoing FM is said to have left tons of pebbles of wisdom in the files of North Block for the benefit of his successor. His Magnum Opus - the Direct Taxes Code is also slowly gathering dust in the North Block. The Finance Minister may also have to try to revive the almost dead GST or announce its permanent death. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/cartoon_2355.jpg" alt="" width="400" height="335" hspace="5" border="0" align="center"> <strong></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"> - Tuesday's cases</font></strong></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></font><font color="#663399">Service Tax </font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appellant had provided construction services to UP Vikas Parishad for housing BPL persons and institutions for promotion of educational objectives - such services prima facie appear to be outside the ambit of <em>"construction of residential complex"</em> and<em> "commercial or industrial construction"</em> - Pre-deposit waived and stay granted: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant had provided construction services to around 36 bodies/ institutions during 01/04/2005 to 31/03/2010 and 01/04/2010 to 31/03/2011, including to an Uttar Pradesh State instrumentality known as the U.P. Avas Avam Vikas Parishad (Vikas Parishad) for housing persons who are below the poverty line; the LIC, several trusts and foundations promoting and maintaining educational institutions and to another State instrumentally, the U.P. Rajkiya Nirman Nigam Ltd. - for establishment of a medical college and hospital; to the IIT Kanpur; and to several private bodies for establishment of infrastructures towards pursuing commercial or industrial objectives. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the absence of any attribution in the show cause notice or in the impugned adjudication order that constructions by the petitioner were in relation to construction of residential complex service, since more than 12 residential units were constructed and since there is no finding recorded that the residential units were not for the personal use of the recipient in terms of the statutory definition, in particular the explanation set out in Section 65 (91a) of the Act, Tribunal saw a strong <em>prima facie </em> case in favour of the petitioner. </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 assessee-Trust fails to produce any of donors contributing to building fund, such sums are to be treated as unexplained credit u/s 68 - NO: High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Assessee is a Charitable Trust duly registered u/s 12A. The income of the Trust was exempted u/s 11. For the AY 2001-02, the assessee had received donations towards building fund amounting to Rs.54,38,999/- and for the AY 2002-03, it had received a sum of Rs.12,74,672/-. The return filed u/s 139 for those assessment years was accepted by AO. However, notice u/s 148 was issued to the assessee for reopening the assessment. In response to the said notices, an AR of the assessee appeared before the AO and produced all the details. The assessee also objected for reopening of the assessment u/s 148. In the balance sheet filed along with the returns, the assessee had made known the donations received towards the building fund and had also furnished the details of the donors. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Theissues before the Bench are - Whether when the assessee-Trust fails to produce any of the donors contributing to building fund, such sums are to be treated as unexplained credit u/s 68; Whether the exemption u/s.11(1)(a) is allowable only on income derived from property held under Trust wholly for charitable or religious purposes and Whether in case the amounts received from the third party has been accounted and utilized for charitable purposes by the assessee trust, but the assessee has failed to disclose the names and addresses of the donors as well as the mode of payment, it is entitled for deduction u/s 11. And the verdict favours the assessee. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appellant clearing own manufactured goods to principal manufacturer under job work challans - procedure for functioning under the job work is different - duty correctly demanded - Revenue neutrality would arise only if activities of clearance takes place within the sister concern or their own units - appeal rejected: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</strong> the course of preventive checks in the appellant's unit it was observed that the appellants had received goods from their principal manufacturers for carrying out job work. The appellants, instead of clearing goods manufactured out of the said raw materials received from their principal manufacturers, cleared their own manufactured finished goods under the cover of job work challans to the principal manufacturers during period from May to November, 2007. </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>