TIOL-DDT 2377 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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 color="#663399" size="3">TIOL-DDT 2377 </font></strong></font><font color="#663399"><strong></strong></font><strong><br>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif">18.06.2014 <br>
Wednesday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise Inspector selected for IAS </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/insideddt_2.jpg" alt="Legal Corner Icon" width="111" height="158" hspace="5" border="0" align="left">SURESH</strong> Kumar Ola, an Inspector of Central Excise in the Service Tax Division of Ajmer, Rajasthan has made his tribe proud. Shortly he will be an IAS officer. He secured 41st rank in the merit list of the Civil Services Examination results announced last week. 90 candidates from the open category have been selected for IAS out of a total of 1122 candidates selected for the Civil Services. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">BL Meena, President of the Rajasthan Circle Central Excise Inspectors Association who helped us in tracking down Suresh Ola was excited and very proud of the achievement of his colleague. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Born to Mr. Gopal Lal Ola and Mrs. Keshar Devi at Doongri Kalan village of Jaipur, Suresh was a bright student and very early in life got through a competitive examination for admission into Jawahar Navodaya Vidyalaya, Paota, Jaipur. Two other former students of this school made it into the Civil Services this year.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even a job is nothing new for Suresh. After completing his MBA, Suresh worked in Nokia as Assistant Manager and later in Bank of Baroda as a probationary officer before joining Central Excise as Inspector. Suresh says he received great support from Ajmer Assistant Commissioner AK Singh and Superintendents Meena, Ashutish Loomba and Vinod Basheta. He is grateful to his seniors in the Department from whom he learnt many things and was able to face the interview successfully as the interview centred around his working in Central Excise and Service Tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Suresh loves playing cricket and reading novels. It was a great pleasure to talk to this young man who is already into his fourth job - and one of the most coveted and envied of jobs in India.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TIOL wishes Suresh a great career ahead. Maybe he should become the Revenue Secretary - if the post is not abolished by then. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The MoS in the Ministry Dr. Jitendra Singh has congratulated all the successful candidates. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/insideddt_1.jpg" alt="Legal Corner Icon" width="412" height="297" hspace="5" border="0" align="center"></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Onions - Minimum Export Price </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Notification No. 73 dated 12.03.2014, the export policy for onions was made FREE. In September 2013, the Minimum Export Price stipulated for onions was 1150 USD, which was reduced to 150USD in December 2013. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Inflation is a major issue for the new Government. The Finance Minister, Arun Jaitley yesterday convened a high level meeting to discuss issues related to inflation and price rise of essential commodities. Keeping in mind the increasing trend in the price of onions, Government has imposed a minimum export price (MEP) of USD 300 per MT on the export of onions. This is expected to have a salutary impact on the availability of onions in the domestic market. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not082.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 82(RE-2013)/2009-2014, Dated: June 17, 2014 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">PM wants improved work culture and work environment in Government Offices </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Cabinet Secretary has written to all the Secretaries about the Prime Minister's stress on improved work culture and work environment including hygiene and cleanliness of the workspace. He wants the Secretaries to undertake the following on an urgent basis:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. In each Government building, workspace should be cleared and spruced up. Passages and stairs should be cleaned up to make it unobstructed and no office material/ almirah etc. should be found in these spaces. Inside the rooms too, the files/papers etc. should be neatly stacked so that a positive work environment is created. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Every Department should identify and repeal at least 10 rules or processes, and even archaic Acts, that are redundant and would not lead to any loss of efficiency. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Every Department should identify forms that are in vogue and shorten them, where possible, to one page only. (Seeking of unnecessary or irrelevant information should be discouraged). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Every Department should encourage use of ICT in submission of information and eventually universalize it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Decision making layers should be reduced, to a maximum of four layers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Files and papers should be weeded out in accordance with the rules of record keeping including digitization, wherever necessary. This exercise should be completed within 3-4 weeks. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Collaborative decision making and frequent consultation between departments must be done. Where issues remain unresolved, Cabinet Secretariat/PMO should be apprised for resolution. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Effective and timely resolution of public grievances must be ensured and monitored by the Secretaries of the Departments concerned. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Each Department should workout modalities of fulfilling promises made to the people. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Entire Department should work as a team with every level should be encouraged to provide inputs and value addition in the exercise. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We don't know yet what the Revenue Department has done with regard to the PM's directions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some years ago I had accompanied a US based NRI to the North Block. Right outside the CBDT Chairman's office were dumped old unusable furniture. I told my American friend that the man who sits in that office facing the dumped furniture is the equivalent of their dreaded IRS Chief! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see Junk Furniture in Government offices - why not dispose them? in <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9772" target="_blank"><strong><font size="1">DDT 1211 - 08.10.2009</font> </strong></a></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cabinet Secretary's letter dated June 05, 2014</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Assessee had to undergo trauma of engaging counsel and paying substantial fees to defend case when Revenue has no case at all - Cost imposed on Commissioner and AO - ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Income Tax Appellate Tribunal noticed that the Revenue had not only no case, but they did not know how to write the grounds of appeal.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For every ground, the appeal stated, <em>On the facts and in the circumstances of the case, the Hon'ble CIT(A) <strong>is</strong> justified in law … </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Appellant Revenue was defending the order of the CIT(A) while filing an appeal against it. The Tribunal noticed that the appellant should have questioned <strong>whether</strong> the CIT(A) was justified or should have stated that the CIT(A) was <strong>not</strong> justified. The AO while filing the appeal actually supports the stand taken by the CIT(A). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal noted that a lot of time of the Tribunal is wasted by the Commissioner authorizing appeal on frivolous issues and it was incumbent upon the Commissioner, as a supervisory authority, to admonish the AO for making an addition without basic understanding of legal position.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal observed that on account of improper action on the part of the Commissioner of Income Tax as well as the AO, the assessee had to engage a counsel and incur substantial expenditure to defend its case. Therefore Tribunal awarded a token cost of Rs.5,000/- upon the Commissioner of Income tax who has given the authorisation and cost of Rs.10,000/- upon the AO who has filed this appeal. The said payment should be made to the assessee within one month from the date of receipt of the order. Registry is also directed to mark a copy to the Chairman, CBDT so that in future the Income Tax Commissioners, who are responsible for filing appeal before the Tribunal, would take proper care to scrutinise the issues before authorising the AO to file appeals before the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This order was delivered by the Tribunal on 13.06.2014. What is going to happen? See you soon in the High Court. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see 2014-TIOL-xxx-ITAT-MUM</font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Company Law - e-voting - MoCA clarifies </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION</strong> 108 of the Companies Act, 2013 read with rule 20 of the Companies (Management and Administration) Rules, 2014 deal with the exercise of right to vote by members by electronic means (e-means). The provisions seek to ensure wider shareholders participation in the decision making process in companies. Corporates and other stakeholders while appreciating the new approach have drawn attention to some practical difficulties in respect of general meetings to be held in the next few months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The suggestions received from the stakeholders have been examined. It is noticed that compliance with procedural requirements, engagement of Depository Agencies and the need for clarity on matter like demand for poll/postal ballot etc will take some more time. Accordingly, it has been decided not to treat the relevant provisions as mandatory till 31st December, 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To provide clarity and ensure uniformity in the e-voting procedure, clarifications on certain issues raised by the stakeholders are provided for guidance of all concerned. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/mca_circular_20_2014.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MoCA Circular No. 20/2014, Dated: June 17, 2014 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Computerised Invoices - Unsigned - Objectionable? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>concerned assessee has written to us about the problems caused by computerised invoices which are not signed but carry a remark, "computer generated invoice - no signature required”. He says that Audit has raised objections that the invoices are invalid as they are not signed and so no credit can be taken. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He wants the Board to give necessary clarifications. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Metta Rama Rao elected President of IRS Association </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>METTA</strong> Rama Rao, ADG, NACEN, Kolkata has been unanimously elected the President of IRS (Customs & Central Excise) Association; Vinayak Azad, ADG, CEIB is the General Secretary. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the third time in a row that Rama Rao is elected as President of the Associations. Things don't seem to be going well between the Administration and the Association. Immediately after his election, Mr. Rama Rao was transferred to Kolkata from Delhi and he is stuck there. All his representations for transfer to Delhi have fallen on deaf ears. Maybe the Administration and the Association of senior officers should have more cordial relations. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tell the FM </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> WE start our Budget Run Up today. Please send in your suggestions. Please be brief and precise if you want the powers that be to read your views. We will try to take your suggestions to the FM and maybe you can help in making the Budget 2014. Rush your mails to <a href="mailto:editor@taxindiaonline.com"><strong>editor@taxindiaonline.com </strong></a></font></p>
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<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">Service Tax/Central Excise</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">CENVAT - Dredging is undertaken in navigation channel which is not private property of appellant but belongs to Maharashtra Maritime Board - channel is used not only by appellant but by several others - it cannot be said that benefit of dredging accrues only to appellant and such dredging is entirely in relation to manufacturing activity: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CCE, Raigad has confirmed a demand of Rs.1.21crores against the appellant on the ground that the appellant is not eligible for availing CENVAT Credit of service tax on "dredging services” as the same does not come within the purview of "input service” as defined in Rule 2(l) of the CCR, 2004. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant is before the CESTAT and submits that they have an agreement with Maharashtra Maritime Board as per which they were permitted to construct a jetty on the water front near Salav Village, Revdanda Port, District Raigad. As per the said agreement, they had agreed to provide all services at or around jetty including dredging, navigational aid, water supply, etc. Through the jetty, they undertake inward transportation of raw materials and outward transportation of finished goods. </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 search conducted by Revenue leads to papers relating to sale & purchase of land outside books and same is admitted by Managing Director in his statement, any addition with respect to unexplained investments is legally sustainable - YES: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee-company is engaged in real estate and construction business. During the year, company purchased land and sold plots after undertaking development works. There were search and seizure operations under section 132. Assessee claimed deduction under section 80IB on the residential complex constructed and sold. Assessing Officer asked for details. Assessee did not furnish complete details. Therefore, A.O. called for sale deeds and noticed that all the flats sold were above 1500 sq.ft. and exceeded the limits prescribed under the Act. Therefore, he denied the deduction. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In appeal, CIT(A) held that out of 65 flats only 5 were above 1500 sq.ft. area, therefore, the Assessing Officer was not justified to deny the benefit of deduction u/s 80-IB for the entire project completed for the assessment year under consideration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether when the Search conducted by the Revenue leads to papers relating to sale and purchase of land outside the books and the same is admitted by the Managing Director in his statement, any addition with respect to unexplained investments is legally sustainable. And the verdict goes against the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cocoa Beans, upon inspection were found contaminated with fungal growth - since Cocoa Beans comes under 'food product', unless it is cleared by Food Safety and Standards Authority of India, goods cannot be released by Customs authorities - Petition dismissed: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> petitioner imported 132 bags of fermented and dried Coco Beans and certain other items under Bill of Entry. The Food Safety and Standards Authority of India (FSSAI), on inspection, found that Coco beans were contaminated with fungal growth. As per the prescribed standards, the materials should be free from fungus. According to the petitioner, after necessary fumigation, the fungal growth would be wiped off and there is no reason for detaining the goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The goods were not permitted to be released to the petitioner by the Commissioner of Customs, Cochin and it was proposed to either confiscate or destroy the same or to grant necessary permission to re-export the materials, if it is permissible, as per the procedure prescribed. </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"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com</strong></a></font></p>
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