TIOL-DDT 2461 · 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"><strong><font size="2" 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><font color="#663399" size="3">TIOL-DDT 2461 </font><br> </font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>22.10.2014 <br> Wednesday </strong></font></p> <p align="center"><em><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3">Customs - LNG imported for Generation of Electricity - Time limit to produce certificate extended </font></strong></font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Sl. No. 139A of the Table to the Notification No. 12/2012-Cus, dated 17.03.2012, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Liquefied Natural Gas (LNG) and natural gas when imported for supply to a generating company as defined in section 2(28) of the Electricity Act, 2003 to supply electrical energy or to engage in the business of supplying electrical energy, for generation of electrical energy</em>, is wholly exempted from Customs duty, though the exemption shall not be available if such liquefied natural gas (LNG) and natural gas (NG), is used for generation of electrical energy by captive generating plant as defined in section 2(8) of the Electricity Act, 2003. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This exemption is subject to the conditions that: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. the importer furnishes security by way of bank guarantee of an amount equal to the difference between the duty leviable on such goods but for the exemption contained therein and the duty levied at the time of import, to the Deputy Commissioner or the Assistant Commissioner of Customs, as the case may be; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. the importer produces a certificate from the jurisdictional Deputy Commissioner or the Assistant Commissioner of Central Excise, as the case may be, of the generating company <strong><font color="#FF0000">within a period of six months</font> </strong> from the date of import, or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow, to the effect that the said Liquefied natural gas (LNG) and natural gas (NG) so imported and supplied has been utilised for generating and supplying electrical energy by the said generating company; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. the importer furnishes an undertaking to pay, on demand, in the event of his failure to comply with any of the aforesaid conditions, an amount equal to the difference between the duty leviable on such goods but for the exemption contained therein and the duty levied at the time of import, along with the applicable interest thereon. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, this notification is amended to change the period of six months to a period of twelve months. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyMTY=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification NO. 30/2014-Cus., Dated: October 20, 2014 </strong></font></a></p> <p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif">Cold rolled flat products of stainless steel - India initiates Safeguard Investigation </font></strong></font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INDIA</strong> notified the WTO's Committee on Safeguards that it initiated on 19 September 2014 a safeguard investigation on Cold Rolled Flat Products of Stainless Steel of Chromium type, 400 series. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The application for imposition of safeguard duty has been filed by Jindal Stainless Limited, which claims that it accounts for 85% of the total production of the product in India. The product is imported into India from a number of countries, and primarily from Japan, Korea, China, EU, USA and Mexico. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The applicant claimed that the increased imports of the product have caused and are threatening to cause serious injury to the domestic producers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The domestic industry has requested for immediate imposition of safeguard measures for a period of four years in their application. The domestic industry has also requested for imposition of provisional safeguard duty in view of steep deterioration in performance of the domestic industry as a result of increased imports of product under consideration. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>What is a safeguard investigation? </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury. </font></p> <p align="center"><font size="3"><em><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong>DRISHTI for CBEC </strong></font></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Government had constituted a High Powered Committee on "DRISHTI" (Driving Information System for Holistic Tax Initiatives) in February 2014. The Committee has finalised its Report after holding extensive discussions with the departmental officers, technical experts, taxpayers and other stakeholders to understand the present business practices, IT initiatives and stakeholders expectations. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee yesterday submitted its report to Finance Minister Arun Jaitley. The Report, after examining the existing business processes and the current status of IT Systems in CBEC, has highlighted the areas for improvement. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Strategic Recommendations of the Committee include the following: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Creation of National Taxpayer Services Directorate, National Assessment Centre for Customs & National Processing Centre for Central Excise & Service Tax Returns, National Targeting Centre & Directorate of International Customs </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Setting up of specialised function-based units for Data Analytics & Business Intelligence, Tax Dispute Resolution and Litigation, BPR, etc </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Leveraging Service Oriented Architecture for IT Applications </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Merging different Customs IT Applications into a Single System </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Enabling Mobility solutions in Business Workflows </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Introduction of Entity-based Risk Management System </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Introduction of IT Centric HR Policy </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee also examined the suitable options for an appropriate IT Governance Model for CBEC. The recommendations have been classified as Short (upto 2 years), Medium (2 to 4 years) and Long Term (4 to 6 years). The Committee has also suggested steps for overseeing the implementation of the above Recommendations. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em>Indian Customs officers at WCO </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> part of the overseas component of the Indian Customs Administration Mid Career Training Programme (MCTP), a Delegation of Senior IRS officers of Customs, Excise and Service Tax visited WCO Headquarters on 17 October 2014. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399"><img src="http://www.taxindiaonline.com/RC2/image/stories/Customs_officers.jpg" alt="" width="484" height="272" hspace="5" border="0" align="center"></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The delegation was welcomed by WCO Secretary General Kunio Mikuriya who made an opening speech on the WCO and the role played by Customs in international trade. Manjeev Singh Puri, Ambassador of India to the European Union, Belgium and Luxembourg, welcomed the group to Belgium, noted the great importance of Customs and international trade. </font></p> <p align="center"><em><font size="2" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3">Pooja Rani, Bronze Winner in 2014 Asian Games is an Inspector in Income Tax </font></strong></font></em></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399"><img src="http://www.taxindiaonline.com/RC2/image/stories/Pooja_Rani.jpg" alt="" width="400" height="268" hspace="5" border="0" align="center"></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>POOJA RANI</strong> who won a bronze medal in Boxing in the recent Asian Games 2014 at Incheon is an Inspector in the Income Tax Department in New Delhi. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This 23 year old Haryana Girl has punched her way to fame. Boxing is a very expensive sport with hardly any remuneration. She is lucky that she is at least employed in the Income Tax Department. Can't they promote her as an Assistant Commissioner and use her services as a brand ambassador for the Income Tax Department? </font></p> <p align="justify"></p> <p align="justify"></p> <p align="justify"></p> <p align="center"><font size="2" face="Georgia, Times New Roman, Times, serif"><strong><strong><font color="#006600"><em><font size="3">Jurispruden</font></em></font><font size="3"><em><font color="#FF6633" size="4">tiol</font><font color="#006600"> - Friday's cases</font></em></font></strong></strong></font></p> <p align="justify"><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">Central Excise </font></strong></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Commissioner has no jurisdiction to reallocate the CENVAT credit distributed by an ISD - assessee is not entitled to take credit on services mentioned in rule 6(5) of CCR, 2004 which is attributable to trading activity as during the material period it was neither taxable nor an exempted service: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee has manufacturing units located in <em>Maharashtra, Uttaranchal and in Himachal Pradesh.</em>The Head Office is located at <em>Andheri (W), Mumbai.</em>The manufacturing units located at <em>Uttaranchal and Himachal Pradesh </em> did not pay Central Excise duty. The appellant is also engaged in the activity of trading of goods at their Head Office. The other units are manufacturing dutiable as well as exempted goods. The Head Office at <em>Andheri (West) </em> distributed the CENVAT Credit of input services to the units located in <em>Maharashtra at Nerul, Pawane and Patalganga. <font color="#663399">While doing so the Head Office has distributed credit in proportion of turnover i.e. credit attributable to units exclusively engaged in exempted goods and credit attributable to trading was not distributed. However, CENVAT Credit on input services covered under Rule 6(5) of CCR, 2004 was distributed in full so long as it did not pertain to units exclusively engaged in manufacture of exempted goods or trading.</font></em></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether sale of immovable property through medium of MoU falls within meaning of transfer as per Sec 2(47) - YES: High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee acquired an immoveable property through a Memorandum Of Understanding (MOU), with the delivery being given to the assessee. This was an agricultural land. Thereafter, the assessee sold his immovable property and declared the income. He claimed that the profit earned by him in the process cannot be treated as taxable income, since it was in respect of an agricultural land. The AO accepted the claim of the assessee and passed an order of assessment. However, the Commissioner invoked section 263. According to him, the AO did not take the contents of the MOU into account and erroneously failed to bring the income earned by the assessee under the purview of the tax. On appeal, the Tribunal set aside the order of the Commissioner. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether the sale of immoveable property through the medium of Memorandum of Understanding would fall within the meaning of transfer given in section 2(47) of the Income Tax Act. And the answer is YES. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appeals - Pre-deposit of Rs. 20 Crore ordered by Tribunal on Agency of the State, waived: High Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant assessee is the City and Town Development Authority on which the CESTAT had ordered a pre-deposit of Rs. 20 Crores. Tribunal has found that it has made out a strong prima facie case. The Tribunal has also found that the issue is arguable; The appellant being an organization or agency of the State, the dues of the Revenue are secured. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Held </strong>: <em>prima facie</em> case in favour of the Appellant Assessee. In these circumstances, the Tribunal should not have insisted even otherwise on securing a Revenue in the sum of Rs.20 Crores as directed. This was a fit case when the precondition of the deposit of the duty liability could have been waived and in its entirety. Further, the recovery of taxes should have been stayed unconditionally pending disposal of the Appeal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399"><img src="http://www.taxindiaonline.com/RC2/image/stories/diwali.jpg" alt="" width="328" height="247" hspace="5" border="0" align="center"></font></strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Friday for the judgements </strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Friday with more DDT </font></p> <p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice time. </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to <a href="mailto:vijaywrite@tiol.in"></a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@tiol.in"><strong>vijaywrite@tiol.in </strong></a></font></p> </body> </html>