TIOL-DDT 2476 · the untouched capture
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<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><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 2476</font><br>
17.11.2014<br>
Monday</strong></font></p>
<p align="justify"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Central Excise/Customs/Service Tax/Income Tax - Can Appellate Tribunal Dismiss an Appeal for want of prosecution? </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MANY</strong> a time, the CESTAT/ITAT dismisses an appeal because the appellant or his Counsel is not present in the Court when the case is called for hearing. The Supreme Court on Friday delivered a landmark judgement holding the Tribunal has no such powers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this case, the CESTAT had dismissed an appeal by a Central Excise assessee on the ground that neither the appellant nor his counsel was present on the date of hearing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court found that the <em>Act enjoins upon the Tribunal to pass order on the appeal confirming, modifying or annulling the decision or order appealed against or may remand the matter. It does not give any power to the Tribunal to dismiss the appeal for default or for want of prosecution in case the appellant is not present when the appeal is taken up for hearing</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court noted that a similar question had come up before the Supreme Court in an Income Tax case reported in 1969, wherein the Supreme Court then observed, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"The scheme of the provisions of the Act relating to the Appellate Tribunal apparently is that it has to dispose of an appeal by making such orders as it thinks fit on the merits. It follows from the language of Section 33(4) and in particular the use of the word "thereon" that the Tribunal has to go into the correctness or otherwise of the points decided by the departmental authorities in the light of the submissions made by the appellant. This can only be done by giving a decision on the merits on questions of fact and law and not by merely disposing of the appeal on the ground that the party concerned has failed to appear.....</font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">.....Thus looking at the substantive provisions of the Act there is no escape from the conclusion that under Section 33(4) the Appellate Tribunal has to dispose of the appeal on the merits and cannot short-circuit the same by dismissing it for default of appearance." </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the Supreme Court held that the Tribunal could not have dismissed the appeal filed by the appellant for want of prosecution and it ought to have decided the appeal on merits even if the appellant or its counsel was not present when the appeal was taken up for hearing. The High Court also erred in law in upholding the order of the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court directed the Tribunal to hear the appeal on merits and imposed costs of Rs. 25,000 on the Revenue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This does not mean that you need not appear for the hearing - there is always a danger of the appeal being dismissed on merits. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you this Supreme Court order today. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=21983" target="_blank">Breaking News</a></strong></font></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600" size="3">JMM Bribery case - Amounts received taxable? </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WAY</strong> back in 1993, four JMM MPs Shailendra Mahto, Simon Marandi, Shibu Soren and Suraj Mandal were charged with accepting bribes to support the Congress party in the vote of confidence in Parliament. The money allegedly received was deposited in Punjab National Bank. The Income Tax Authorities added these deposits to the income of the MPs as undisclosed income and assessed their income accordingly. The ‘assessees' claimed that the money belonged to their party JMM, but one of the MPs gave a Statement that that the amount deposited in the PNB in his name represents the amount of Rs.50lacs received by him for voting against No Confidence Motion against the then Central Government, which was physically handed over to him by Simon Marandi. The A.O. also noted that he has stated that other three persons namely Suraj Mandal, Simon Marandi and Shailendra Mahto also received almost the similar amounts which were deposited in PNB in their respective bank accounts. The A.O. heavily relied on the statement of Sri Shailendra Mahto in rejecting the claim of the assessee that the amount deposited in these bank accounts belongs to JMM. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ITAT held that no addition is justified in the present case, either in respect of deposits in various bank accounts with PNB Noroji Nagar, New Delhi or various other additions made by the A.O., which are not relatable to any evidence found in course of search. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue appealed to the High Court and the Delhi High Court last week set aside the orders of the Tribunal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The following two questions were before the High Court. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) Did the Tribunal fall into error in holding that the amount brought to tax by the AO is not undisclosed income? </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Did the Tribunal fall into error in setting-aside the findings of lower authorities that the amounts deposited by the assessees with the bank were not taxable as income? </font></em></p>
</blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court noted, “ The expression "undisclosed income" with effect from 1st July, 1995, would mean and include any false expenditure, deduction or allowance claimed under the Act but was found to be false, or any money, bullion, jewellery, valuable article or thing, that had not been or would not have been disclosed and also included any income based on entry in the books of accounts or other documents, which had not been disclosed or would not have been disclosed for the purposes of this Act. The crucial and singularly pre-eminent expression used in the said clause is "has not been or would not have been disclosed" for the purposes of this Act." </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court observed, "<em>there is a fundamental fallacy in the reasoning given by the Tribunal to hold that no addition could have been made in the block assessment proceedings for want of undisclosed income. The Tribunal ignored the position that the four individual assessees had not filed returns of income and therefore, Section 158BB(1) clause(ca) of the Act would be attracted. The said clause has to be harmoniously read with Section 158B(b) of the Act. Further statements of the four individual assessees were recorded on 14th March,1996/19th March,1996, but they, i.e. the 'individual assessees' had claimed that the money lying in the SB A/cs or the FDRs belonged to JMM and did not belong to them. Thus, the factum that the details of SB A/cs and the FDRs were made available would not make any difference. The search undertaken had revealed several incriminating evidence/material relating to the opening and operation of bank accounts and on how the money was utilized, etc. These details were relevant to examine and consider the contention of the respondent individual assessee that the money did not belong to them but to the political party, JMM. It would be, therefore, incorrect or improper to state that the search did not reveal or unearth relevant material or evidence relating to undisclosed income.</em>"</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court answered the questions of Law <em>in favour of the Revenue and against the respondent-assessees. </em></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTczNjU=" target="_blank"><font size="1">2014-TIOL-1955-HC-DEL-IT </font></a></font></strong></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Company Law Settlement Scheme, 2014 - Extended </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS </strong>per the General Circular No. 40/2014 dated 15-10-2014, the Company Law Settlement Scheme, 2014 was to end on November 15th 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On consideration of requests from various stakeholders, the Ministry of Corporate Affairs has decided to extend the<em> Company Law Settlement Scheme, 2014 </em>up to 31st December 2014. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyNzA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">General Circular No. 44/2014 in No.2/13/2014-CL-V, Dated: November 14, 2014 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Tariff Value of Gold and Silver Decreased </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has decreased the Tariff value of Gold from 391 USD to 378 USD per 10 gms. The tariff value of Silver is also reduced from 551 USD to 517 USD per kilogram. These will have to be again hiked as gold prices have shot up again. Tariff value of Brass scrap has also been decreased while those of oils have been increased. However, the Tariff values of Poppy and Areca Nuts remain unchanged. The Tariff values as on 31.10.2014 and with effect from 14.11.2014 are as under: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#DBF7DC">
<td colspan="5" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Table 1</font></strong></div></td>
</tr>
<tr bgcolor="#DBF7DC">
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></td>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></td>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods</font></strong></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tonne) <br>
from 31.10.2014 </font></strong></div></td>
<td valign="top"><div align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tonne) <br>
from 14.11.2014 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) </font></strong></div></td>
<td valign="top"><div align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">(6) </font></strong></div></td>
</tr>
<tr bgcolor="#DBF7DC">
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palm Oil </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">704 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">734 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 10 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD Palm Oil </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">737 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">761 </font></strong></div></td>
</tr>
<tr bgcolor="#DBF7DC">
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others - Palm Oil </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">721 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">748 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 10 00 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Palmolein </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">743 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">764 </font></strong></div></td>
</tr>
<tr bgcolor="#DBF7DC">
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 20 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBDPalmolein </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">746 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">767 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511 90 90 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others -Palmolein </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">745 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">766 </font></strong></div></td>
</tr>
<tr bgcolor="#DBF7DC">
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507 10 00 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude Soyabean Oil </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">837 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">847 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404 00 22 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass Scrap (all grades) </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3831 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">3808 </font></strong></div></td>
</tr>
<tr bgcolor="#DBF7DC">
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1207 91 00 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Poppy seeds </font></td>
<td valign="top" bgcolor="#DBF7DC"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3747 </font></strong></div></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">3747 </font></strong></div></td>
</tr>
<tr>
<td colspan="5" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Table 2 </font></strong></div></td>
</tr>
<tr bgcolor="#DBF7DC">
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD <br>
from 31.10.2014 </font></strong></div></td>
<td valign="top"><div align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD <br>
from 14.11.2014 </font></strong></div></td>
<tr>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"> </td>
<td valign="top"><div align="right"><font color="#FF0000"></font></div></td>
</tr>
<tr bgcolor="#DBF7DC">
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></td>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></strong></td>
<td valign="top"><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></td>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">391 per 10 grams </font></strong></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">378 per 10 grams </font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71 or 98 </font></td>
<td valign="top"><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></td>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">551 per kilogram </font></strong></td>
<td valign="top"><div align="right"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">517 per kilogram </font></strong></div></td>
</tr>
<tr>
<td colspan="5" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Table 3 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter/ heading/ sub-heading/tariff item </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tons) <br>
from 31.10.2014 </font></strong></div></td>
<td valign="top"><div align="center"><strong><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff value USD (Per Metric Tons) <br>
from 14.11.2014 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">080280 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Areca nuts </font></td>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2239 </font></strong></td>
<td valign="top"><div align="right"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">2239 </font></strong></div></td>
</tr>
</table>
<p align="justify"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyNzE=" target="_blank"><font size="2">NOTIFICATION NO 108/14-Cus. (N. T.), Dated: November 14, 2014</font></a></font></strong></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" face="Georgia, Times New Roman, Times, serif"><em><font size="3">Jurispruden</font></em></font><font size="3" face="Georgia, Times New Roman, Times, serif"><em><font color="#FF6633" size="4">tiol</font><font color="#006600">-Tuesday's cases</font></em></font></strong></font></strong></font></p>
<p><font 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"><strong><font color="#663399">Central Excise</font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Time spent before wrong forum is excludable for computing limitation before Commissioner (Appeals) - No error in order of Tribunal restoring appeal before Commissioner (Appeals) - Revenue appeal dismissed: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> respondent is a manufacturer of excisable goods. Aggrieved by an order passed by original authority involving a demand of Rs 19,96,410/-, the respondent filed an appeal before the Tribunal instead of before the Commissioner (Appeals). The Tribunal rejected/ returned the appeal through its order, dated 28.09.2006 on the ground that it is to be presented before the Commissioner (Appeals) and not the Tribunal. Then they filed an appeal before the Commissioner (Appeals) and the same was dismissed as time barred. The respondents filed an appeal against the order of Commissioner (Appeals) and the Tribunal allowed the same by holding that time spent before a wrong forum is excludable for computing the limitation under Section 128 of the Customs Act, 1962 or Section 35 of the Central Excise Act, 1944 - <strong> <font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=34&filename=legal/cestat/2007/2007-TIOL-2322-CESTAT-BANG.htm" target="_blank">2007-TIOL-2322-CESTAT-BANG</a></font></strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Aggrieved by the above order of Tribunal, revenue is in appeal before the High Court. </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 each beneficiary contributes money to assessee-Trust for earning higher returns, it can be said that beneficiaries have come together to form an AOP - NO: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>assessee is a trust constituted under an instrument for investing the funds of the contributors in those fields where the returns are high. It had filed its return as an AOP, declaring NIL income. During assessment proceedings, the AO taxed the income of the assessee at maximum marginal rate, holding the assessee as an AOP, on the fact that the assessee had obtained the PAN under the status of AOP and had also filed the return in the same status. The AO further observed that assessee was not to be considered as representative assessee because from the perusal of the trust deed the shares of the beneficiaries did not emerge and hence in view of the provisions of section 164(1), the assessee was assessable as an AOP at maximum marginal rate but the CIT(A), on appeal, held that assessee was not assessable at maximum marginal rate merely because it has obtained PAN under the status of AOP. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether when each beneficiary contributes money to the assessee-Trust for earning higher returns, it can be said that the beneficiaries have come together to form an AOP for the purpose of Income Tax. NO is the Tribunal's answer. </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">Foreign Related entity - While service agreement is for rendering of management consultancy services, secondment agreement is for deputation of staff - these have nothing to do with import of raw materials nor were services received condition for sale of imported goods - order set aside: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> lower appellate authority has upheld the inclusion of BU fees and legal and professional fees paid by the appellant to Alcan Packaging Singen GMBH, Germany and Pechiney Plastic Packaging Inc., USA, foreign related entities of the appellant, on the raw material imported by the appellant from Alcan, Germany, invoking rule 10(1) of the Customs Valuation Rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The impugned orders do not specify under which clause of rule 10(1), the service charges are includible in the assessable value of the goods imported….Clauses (a) to (d) of Rule 10(1) have no application to the facts before us as they relate to totally different situations and operate in different fields. If at all, only clause (e) would be relevant. The crucial factor for application of the said clause is that the payment should have been made as a condition of sale of the goods imported. </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><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></p>
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