TIOL-DDT 2401 · 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 2401</font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
22.07.2014<br>
Tuesday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appropriation Bill likely to be passed tomorrow </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> reported by DDT yesterday;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Article 114 of the Constitution deals with Appropriation Bill, which stipulates: </font></p>
<blockquote>
<p align="justify"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appropriation Bills</font></em></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(1) As soon as may be <strong>after the grants</strong> under article 113 have been made by the House of the People, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of India of all moneys required to meet </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the grants so made by the House of the People; and </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the expenditure charged on the Consolidated fund of India but not exceeding in any case the amount shown in the statement previously laid before Parliament. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Lok Sabha is scheduled to discuss the Demands for grants for 2014-15 tomorrow at 6pm and if the demands are voted, the FM is to move the <strong>Appropriation (No. 3) Bill, 2014</strong> and most probably will get it passed by Lok Sabha. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Third time Cess fiasco - 100% EOU clearances to DTA </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MUCH</strong> has been written in these columns about the triple Cess and the so-called burial to the issue by the Tribunal Larger Bench decision in <em>Kumar Arch Tech Pvt. Ltd.</em> - <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODc3OTY=" target="_blank"><font size="1">2013-TIOL-614-CESTAT-DEL-LB</font></a>. See <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTg4MzM=" target="_blank">DDT 2209</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTc1MTY=" target="_blank">2086</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTcwMjY=" target="_blank">2047</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTUyODE=" target="_blank">1885</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTMxNzg=" target="_blank">1690</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTIzNDk=" target="_blank">1584</a>, <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTA4MTU=" target="_blank">1354 </a>& <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTA1ODg=" target="_blank">1318</a>. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At last the Government has felt a need to put the issue to rest in this budget. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2014/etariff14_18.htm" target="_blank">18/2014-CE</a></strong> dated 11.7.2014 makes an appearance and amends Notification No. 23/2003-CE, dated the 31st March, 2003so as to avoid double levy of cess on DTA clearances of 100% EOUs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The clarification given in the D.O. F.No. <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=tru_letter/tru-2-2014.htm" target="_blank">334/15/2014-TRU</a></strong> letter dated 10.7.2014 in Annexure II under the head ‘Miscellaneous' at serial number 8 says: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Education cess and secondary & higher education cess <strong>(customs component)</strong> is being exempted on goods cleared by an EOU into the DTA.</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, this appears to have inadvertently created some more fresh confusion of the issue. Let us examine the cess payable by EOUs on DTA clearances during different periods: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top"> </td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before 2012 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After exemption </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of cess on CVD </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(Ntfn-14-Cus dt.17.03.12) </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With present </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">amendment </font></td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Value of goods </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">100 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">100 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">100 </font></div></td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs duty (10% - reduced by 50% as per Sl No 2 of the Notn 23/2003 CE ) </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></div></td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Value for CVD </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">105 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">105 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">105 </font></div></td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CVD (say 10%) </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.50 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.50 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.50 </font></div></td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Both Cess on CVD (3%) </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.32 </font></div></td>
<td valign="top"><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">0 </font></div></td>
<td valign="top"><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">0 </font></div></td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">First cess </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Total customs duty </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.82 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.50 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.50 </font></div></td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cess on Customs duty </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.48 </font></div></td>
<td valign="top"><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">0.46 </font></div></td>
<td valign="top"><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">0 </font></div></td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Second Cess - this is the Cess on customs component which is now exempted by Notification No. 18/2014-CE. </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CE duty under Section 3 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of CE Act </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16.30 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.96 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.50 </font></div></td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cess (3%) on CE duty </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.49 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">0.48 </font></div></td>
<td valign="top"><div align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">0.465 </font></div></td>
<td valign="top"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Third cess - This cess is held to be not leviable by the Larger Bench </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Total duty payable </font></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16.79 </font></div></td>
<td valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16.44 </font></div></td>
<td valign="top"><div align="center"><strong><font color="#79BCFF" size="2" face="Verdana, Arial, Helvetica, sans-serif">15.50 or 15.965? </font></strong></div></td>
<td valign="top"> </td>
</tr>
</table>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Finally, is it a case where an EOU is not required to pay any Cess? (Except in the cases of exceptions mentioned in Notifications No 18 & 19 Cus dated 11.07.2014 for which there is no exemption from cess on CVD component). </font></p>
<p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Will the case again go the Larger Bench/High Court and Supreme Court? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">15 Crore Rupees for Income Tax Appellate Commissioners' offices - E-Appeals soon </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> the approval of Chairman, CBDT, a proposal for up-gradation of offices of CITs(Appeals) has been included in the proposals under the 1% incentive scheme and an amount of Rs.15 crore has been earmarked for it. A Committee, comprising CsIT(Appeals) of different zones,constituted in this matter recommended installation of an E-Appeals system as a mandatory requirement and other office infrastructure as optional requirements. The Committee also recommended disbursement of a sum of Rs. 5 lakh to each CIT(Appeals) for the purpose. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the Systems Directorate did not recommend an immediate roll out of the software throughout the country. It, however, opined that the E-Appeals software is a near perfect application on standalone basis. The reports created by the software are instantaneous and accurate and the reminders are also issued promptly to assessees (for hearings) and the AOs (for remand reports). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, it was suggested that some CsIT(Appeals) could use the application in their offices for better control and disposal of their cases. Training, however, was indicated as an important component for using the software.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As recommended by the Systems Directorate, it is proposed to initiate the use or E-Appeals system, in selected CsIT(Appeals) offices in the country. Since this would require some initial training of the staff as well as the CsIT(Appeals) themselves, it has been decided to select the offices of CsIT(Appeals) for introduction of E-Appeals system on voluntary basis. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Directorate of Income Tax, (Public Relations, Printing, Publications & Official Language) wants Chief Commissioners to convey the willingness of CsIT(Appeals) for introduction of the E-Appeals system in their offices, by 31st July. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">When will CBEC think of something like this? </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2014/cbdt_incentive.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Directorate of Income Tax, (Public Relations, Printing, Publications & Official Language) F.No. PR-5(8)/PR,PP&OL/2011-12/ 511 Dated: July 18, 2014 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Two Lakh appeals pending with CITs(A) - CAG </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> CAG in its report for the year ending 31.3.2013, has pointed out that Appeals pending with CIT(A) increased from 1.58 lakh in FY 2008-09 to 1.99 lakh in FY 2012-13. Only 85,049 appeals (29.9 per cent) were disposed of by the CITs(A) in FY 2012-13. The amount locked up in appeal cases with CIT(A) was Rs.2.59 lakh crore in FY 2012-13. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG also reported that ITD completed 2.33 lakh scrutiny assessments in FY 2011-12, of which CAG checked 2.15 lakh cases. The incidence of errors in assessment checked in audit was 0.17 lakh which averaged to 7.9 per cent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CAG noticed that ITD disposed of an average of 59 per cent of the grievances within stipulated period during FY 2011-12. CAG noticed 7,167 instances of grievances which were pending for disposal by the <strong>concerned </strong>AOs as on 31 March 2012. The pendency of these grievances ranged from two days to <strong>more than 10 years</strong> beyond stipulated period of 60 days as on 31 March 2012. The pendency of grievances shows that there are various flaws in the system and in the administrative mechanism. The internal control for monitoring of redressal of grievances in ITD was not proper as prescribed registers/monthly reporting system was deficient. </font></p>
<p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From CAG's report for the year ending March 2013. </font></em></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Govt looking for a new CVC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>DoPT Secretary has written to all the Secretaries to the Government of India to suggest names for appointment of Central Vigilance Commissioner and a Vigilance Commissioner in Central Vigilance Commission. The present CVC Pradeep Kumar will be completing his tenure on the 28th September, 2014. The CVC is selected by a Committee consisting of the Prime Minister, Home Minister and the Leader of Opposition - now that there is no leader of opposition, it has be seen as to who would fill the place. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cvccir/cvc_399_15_2014.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DoPT D.O. No.399/15/2014-AVD-III, Dated: July 21, 2014 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Hindon, Ghaziabad notified as Customs Airport </font></strong></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified Hindon, Ghaziabad in Uttar Pradesh as a Customs Airport for the purpose of unloading of imported goods and loading of export goods or any class of such goods <strong>related to Ministry of Defence</strong>, Government of India . </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This notification will be in force from 31.07.2014 to 30.05.2015. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hindon Air Force Station is an Indian Air Force base under the Western Air Command (WAC) and is close to the Hindon river. It is the biggest and largest air base in Asia and 8th in the world. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Strangely, although the notification is issued on 21.07.2014, it would be effective from 31.07.2014 to 30.05.2015 & not the last day of the month of May, 2015. Stratagem? </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2014/cnt14_054.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 54/2014-Customs (N.T.), Dated: July 21, 2014 </font></strong></a></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"> - Wednesday's cases</font></strong></font></strong></font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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 </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tribunal had shown sufficient indulgence to appellant by granting time to deposit part of tax demanded and had also granted an extension of time for compliance - Tribunal had, therefore, rightly dismissed appeal for non-compliance: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant had filed an appeal before the Tribunal challenging the order passed by the CCE & ST, Trichy wherein a service tax demand of Rs.3,02,46,974/- was confirmed apart from imposition of penalty and interest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By an order dated 23.1.2013, the Tribunal, taking note of the fact that the appellant already deposited a sum of Rs.77,32,903/-, directed the appellant to pre-deposit a further sum of Rs.1.20 Crores within a period of six weeks and report compliance for obtaining stay from recovery of the adjudged dues. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant deposited only Rs.20 Lakhs and filed an application seeking extension of time. The Tribunal allowed this application and directed the appellant to deposit the balance amount of Rs.1 Crore within a period of eight weeks. In the said order, the Tribunal observed that if the appellant does not deposit the amount within the stipulated period, the appeal will be dismissed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant deposited a further amount of Rs.25 lakhs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Noting that the appellant had failed to comply with its order, the Tribunal dismissed the appeal </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 in case of sale and lease-back deal where sales tax was paid, depreciation can be disallowed merely because Central Excise papers treat machinery as 'not for sale' - NO: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee, a finance company, had entered into a Sale and Lease back agreement with the manufacturer of a machinery, to acquire ownership of machinery for consideration and thereafter lease the said machinery to the same company. The machinery was manufactured by that company and sold to the assessee and on the transaction, sales tax was levied and collected from the assessee and paid out to the Government. On the leased out machinery, assessee had received rental income and it was disclosed in the return as business income of the assessee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE issues before the Bench are - Whether in a case of sale and lease-back deal where sales tax was paid, depreciation can be disallowed merely because the Central Excise papers treat the machinery as 'not for sale' and Whether the rental income earned from leasing of such assets is to be treated as business income. And the verdict goes in favour of the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Re-quantification of demand - When the first and last page of SCN indicates that notice was issued on 09/07/1998 it is very strange and also not understandable as to how Revenue has come to the conclusion that SCN has been issued on 19/06/1998 - ground to file appeal is totally frivolous - appeal dismissed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> is the 2nd round of litigation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the earlier round, the Tribunal had remanded the matter back to the adjudicating authority with a direction to re-quantify the duty for a period of six months after allowing the benefit of MODVAT credit, for which purpose the appellants would produce the relevant documentary evidence. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ground taken by the Revenue to file the appeal is totally frivolous and on this ground itself the demand is not sustainable.</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"> <strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p>
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