TIOL-DDT 240 · the untouched capture
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<p ><b><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
2</font></b><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>40</b></font><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>14
11 2005<br>
Monday </b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Lipsticks
– Indian lips and imported sticks</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Prof.
Madhu Danadavate was participating in a parliamentary debate and said, ‘‘even
lipsticks are being imported’’. The treasury benches asserted that ‘‘they
are not wholly imported’’. ‘‘I agree, the lips are indigenous, only the sticks
are imported’’, retorted Mr. Dandavate. The erudite scholar, socialist politician
and perhaps the last of the Gandhians, is no more. A man who was above money,
above power, disinterested in position and perks of office, must have been
by all means India’s best Railway minister, who offered cushioned berths to
second class passengers and introduced the concept of super fast trains. As
Finance Minister, he was responsible for abolition of gold control which led
to the development of the modern jewellery industry in India. One of my proud
souvenirs is a pass to parliament signed by Madhu Dandavate. His one time
follower and present minister Jaipal Reddy once remarked, “<b>Given a little
power, ministers can become monsters</b>”. Given all the powers, he remained
a humble socialist.</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service
Tax Ad – Casteist? </strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Papa
aap toh kahte hain ki honesty is the best policy, phir Gupta uncle ke saath
mil kar service tax ki chori kyun’. – </i>so runs an advertisement on Service
Tax. Gupta uncle is not amused. The Vysya Community has protested that ‘‘It
is shameful to single out the Vaishya community members like this and paint
them as tax evaders’’. The community is aghast that ‘‘the government has not
even spared the young vulnerable minds of children. Right from the tender
age, their minds are being poisoned with hatred and bias’’. They want the
Government to withdraw the offending advertisement and ensure that no single
community is singled out like this” May be in future the department should
add a note that the advertisement does not refer to any real person or community
or they should think of a name that cannot be linked to any community, especially
the trading ones. </font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Great
ODI but where is Service Tax?</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
recent Rajkot One Day International between India and Sri Lanka is said to
have brought in a profit of about Rs. 1 Crore to the Saurashtra Cricket Association,
but the Central Excise department seems to be playing spoil sport. It seems
they have issued a notice to the Cricket Association to cough up Service Tax
of about Rs. 20 Lakhs. Saurashtra cannot be a lone example. Service Tax is
sure to follow to other centres!</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Stand
alone law for Service Tax?</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PHDCCI
has urged the government to enact a comprehensive stand-alone legislation
and administrative machinery for collection of Service Tax. The chamber has
also sought the integration of the centrally-administered Cenvat scheme with
state-level Vat. PHDCCI said a multiplicity of taxes like CST, VAT, excise,
service tax and octroi are roadblocks in the way of rapid industrial growth.
Merging all these taxes into a single Vat should be done. </font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Benefits
under Advance Licence includible in assessable value – Board communicates
TIOL case law</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is great to know that officers in the Board do read case law reported by us.
In a recent letter to the field, the Board stated,</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>I
am directed to draw your kind attention towards judgment of Hon'ble Supreme
Court in the case of CCE, Bhubaneshwar-II Vs. IFGL Refractories Ltd. reported
by <b>Taxindia Online (</b></i></font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2005/2005-TIOL-103-SC-CX.htm">2005-TIOL-103-SC-CX</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i><b>)</b>
wherein it has been held that surrendering of advance licence in favour of
the supplier of goods amounts to flow of additional consideration from buyer
to seller [copy enclosed]. It is pertinent to mention that the ratio of this
judgement is valid for both old and new Section 4.</i></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>You
are requested to decide all pending disputes accordingly and to also ensure
that necessary Notices are issued in all such cases to safeguard government
revenue</i>.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cbecletter.htm">F.No.
6/3/2005-CX.I Dated : September 14, 2005 </a></u></b></font></p>
<p align=center ><font color="#993300" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Justice
will not condemn even the devil himself wrongfully - Thomas Fuller (1654-1734)</b></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666">Until
tomorrow with more DDT</font></b></font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Have
a nice day. </b></font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Mail
your comments to</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a
href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a>
</font> </p>
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