TIOL-DDT 2365 · the untouched capture
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<p><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif"><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>TIOL-DDT 2365</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
02.06.2014 <br>
Monday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Renting of Immovable Property - 50% paid by service recipient as directed by Supreme Court - Balance recovery stayed - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the Supreme Court judgement in <em>Retailers Association of India vs UOI</em> - <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/sc/2011/2011-TIOL-104-SC-ST.htm" target="_blank"><font size="1">2011-TIOL-104-SC-ST</font></a></strong>, the Members of the Association were directed to deposit 50% of the arrears towards tax dues in three instalments and provide surety for the balance 50%. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this case, the Department confirmed the demand on the service provider in spite of the fact that the tenant had already paid the 50% tax and provided surety for 50% as directed by the Supreme Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT noted that the lessee has followed the Supreme Court judgement and so the assesse has made out a strong case for waiver of pre-deposit. The Tribunal waived pre-deposit and stayed recovery till disposal of the appeal. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTQwMzE=" target="_blank">2014-TIOL-917-CESTAT-AHM </a></font></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT Cannot Review Interim (Stay) Order - President </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> President of CESTAT, Justice Goda Raghuram has issued a note for the benefit of the Members of the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The President observes that Section 35C of the Central Excise Act and Section 129B of the Customs Act provide for amending a <strong>final order</strong> of the Tribunal for rectifying a mistake apparent on record. The President observes that there is<em> however no provision in the Acts authorising a review of an interlocutory order passed, in appeals preferred to this Tribunal. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He adds that it is a <em>well settled position that Courts or Tribunals nave no inherent power of review and such power must be conferred by the relevant legislation as per some Supreme Court orders cited by him.</em> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Therefore, he concludes that <em>in the absence of legislative authority, conferring jurisdiction to review an interim order passed after notice to and hearing the respective parties, no application for review of such order, whether called an application for rectification, modification or a miscellaneous application, could be entertained, which involves reconsideration of the merits of an interlocutory order</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The president further notes that some High Courts have permitted application for reconsideration by this Tribunal, of an interlocutory order passed duly. But he asserts "<em>In the light of the several binding pronouncements by the Supreme Court clearly excluding any inherent power to review a judicial or a quasi-judicial order, <strong>it would be impermissible </strong>for the Tribunal to entertain an application for such review.</em>" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The President wants the Registry to place this position before appropriate Benches for <strong>judicial consideration</strong>, while listing an application for rectification/modification/review of an interlocutory order, passed by the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A colleague asked whether the President could issue such a note. The president had been a seasoned judge of a large High Court and he certainly knows his law on his powers and duties. He has not directed or advised the Members to decide the cases in a particular manner - he has only brought a legal position to the notice of the Members - and it is for their judicial consideration and the Members are certainly not bound by the opinion of the President and they can take a different judicial opinion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, the Laws do not confer any power on the Tribunal to stay the demand confirmed by the lower authority. But it is assumed that the Tribunal has inherent powers to grant stay, what is wrong in vesting the Tribunal with the power to rectify a mistake in an interim order. When the mistake in a final order can be corrected, why the mistake in an interim order cannot be corrected.? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe we need a change in Laws - the Acts should be amended to provide for review/rectification of interim orders also. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/cestat_order/Circular13_2014.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT Circular in F.No.01/04/Circular/CESTAT/2014, Dated: March 13, 2014 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value of Gold, Silver increased </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has reduced the Tariff value of Gold from 424 USD to 408 USD per 10gms and that of Silver from 650 to 617 USD per kilogram with effect from 30.05.2014. The Tariff values of all Oils have been changed. Tariff value of Brass scrap sees a slight decrease. However, the Tariff values of Poppy Seeds and Areca Nuts refuse to budge. The Tariff values as on 15.05.2014 and with effect from <strong>30.05.2014 </strong>are as under: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td colspan="5" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><strong>Table 1</strong></font></p></td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top" bgcolor="#D8FDC6"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods</font></strong></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tonne) <br>
from 15.05.2014 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tonne) <br>
from 30.05.2014 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></p></td>
<td valign="top"> </td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">905 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">897 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">938 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">945 </font></strong></font></p></td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palm Oil </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">922 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">921 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">946 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">953 </font></strong></font></p></td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 20 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBDPalmolein </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">949 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">956 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others -Palmolein </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">948 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">955 </font></strong></font></p></td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507 10 00 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">946 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">962 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404 00 22 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3891 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3890 </font></strong></font></p></td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1207 91 00 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy seeds </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3255 </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3255 </font></strong></font></p></td>
</tr>
<tr>
<td colspan="5" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><strong>Table 2 </strong></font></p></td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD <br>
from 15.05.2014 </font></strong></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD <br>
from 30.05.2014 </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"><font color="#FF0000"> </font></td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold, in any form in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">424 per 10 grams </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">408 per 10 grams </font></strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Silver, in any form in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">650 per kilogram </font></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">617 per kilogram </font></strong></font></p></td>
</tr>
<tr>
<td colspan="5" valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><strong>Table 3 </strong></font></p></td>
</tr>
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tons) <br>
from 15.05.2014 </font></strong></p></td>
<td valign="top"><p align="center"><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tons) <br>
from 30.05.2014 </font></strong></font></p></td>
</tr>
<tr bgcolor="#D8FDC6">
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">080280 </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Areca nuts </font></p></td>
<td valign="top"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1908 </font></p></td>
<td valign="top"><p align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1908 </font></strong></p></td>
</tr>
</table>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2014/cnt14_044.htm" target="_blank">Notification No. 44/2014-CUSTOMS (N.T.), Dated: May 30, 2014 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Retrospective Amendment ONLY in favour of taxpayer - FICCI </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> FICCI Delegation met the Finance Minister yesterday and submitted some budget suggestions. FICCI President Sidharth Birla said, "<em>To support the forward looking development and delivery oriented agenda of the new government, a non-adversarial, conducive and fair tax regulatory environment is the need of the hour. We must show that India values and welcomes capital,and supports it by clear and credible policies. Enterprise and administration must both stand assured that decisions and actions in good faith will be respected and protected." </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"<em>The Government could ideally declare as policy that retrospective action shall not be resorted to, save in rarest of cases, but never for creating a fresh onus or liability for a previous period. In fairness, retrospective change if needed must invariably favour the taxpayer."</em>, he added. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">FICCI's Suggestions to the FM included, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Provisions, which effectively deem portions of capital to be in the nature of income, are serious deterrents to genuine transactions, while keeping the door open for aberrant behaviour. Fishing expeditions harm business atmosphere and reputations. Rapid disposal of cases and enquiries is essential, unless there is clear evidence of wrongdoing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Implementation of a comprehensive Goods and Services Tax (GST) in 2015 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Changes can be examined in laws to aggressively widen tax base, simplify laws, rationalize exemptions, conducive tax environment with litigation moderated and only as exception </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Review relevance of a Direct Tax Code (DTC); most changes already incorporated in law </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Review GAAR; freedom from CFC-coverage to legal Indian holdings and structures abroad </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Possible steps on illegal assets abroad through tax net </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Rebated income tax periods for small start-up businesses, in essence individually owned </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Suggested START (= Sartup Rebated Tax) introduction in line with other Asian examples </font></p>
</blockquote>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Budget 2014 - North Block Out of bounds for Media </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> the work relating to Budget 2014-15 has commenced, it has been decided NOT to allow the entry of media persons including PIB card holders in the Finance Ministry with effect from Monday, June 2, 2014 till the presentation of Budget by the Union Finance Minister in Parliament.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is an exception to this rule: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the entry may be allowed only in such cases where specific prior permission has been accorded by the designated officer(s) duly authorized to deal with the media persons or in case of any important event(s) where media presence is required. </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><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">Penalty - if SCN alleges that drawback has been wrongly availed, it cannot be said that assessee was having an intention to suppress facts - moreover, there is no demand of Customs duty, so penalty u/s 114A cannot be imposed - Appeal allowed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellant is manufacturer of De-Oiled Cake and an exporter. To manufacture the said De-oiled Cake, they procure Hexane gas without payment of duty. After exportation of the goods, they claimed duty draw back available on the export goods. The claim was sanctioned. Later-on, it was revealed that the appellants have procured the Hexane gas without payment of duty and also availed draw back claim which was not admissible. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A SCN was issued alleging that the appellant manufacturer has wrongly and irregularly availed duty draw back and, therefore, they as well as the Director are liable to be penalized under Section 114A and 114(iii) of the Customs Act, 1962 respectively. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether when interpretation of document placed before Settlement Commission results in finding of fact, it does not call for interference by High Court under Article 226 of Constitution - YES: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REVENUE</strong> filed a Writ petition against the order of Settlement Commission u/s 245D of the Act and contended that assessee had not made a full and true disclosure and therefore the impugned orders were liable to be quashed and set aside. The first point was relating to transaction in respect of a property in respect of which assessee with his wife declared Rs. 7.60 crores as undisclosed investment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The other issue was relating to five receipts of cash totalling to Rs.6.00crores which were found during the search operation. Assessee contended that although the said receipts representing Rs.6.00crores were receipts of loans received by him, the same had been disclosed as income before the Settlement Commission. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether when the interpretation of a document placed before the Settlement Commission results in a finding of fact, it does not call for interference by the High Court under Article 226 of the Constitution. And the verdict goes against the Revenue. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Web hosting service received by appellant from foreign service provider is used by appellant for marketing of his products - <em>prima facie </em>same has to be treated as Support Service of business or commerce and cannot be classified as Information Technology Service - Pre-deposit ordered: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant have entered into agreements with various Telecom service Providers, such as, Bharti Airtel Ltd. etc. for supplying the content including user generated contents which enable the mobile phone subscribers receive advertisements, ring tones, general information like cricket scores etc. by the way of SMS. The Department was of the view that this service provided by the appellant to various telecom service providers during the period from 01/5/06 to 31/05/07 is "business support service". The demand raised is of Rs.53,02,577/-. </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>
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