TIOL-DDT 2480 · the untouched capture
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<p><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><strong><font color="#663399" size="3">TIOL-DDT 2480</font><br>
21.11.2014<br>
Friday</strong></font></p>
<p align="justify"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><em><font size="3">Tribunal has no power to direct pre-deposit while remanding a case - logically question of deposit does not arise unless there is an adjudication - HC </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Telangana and AP High Court recently ruled that the CESTAT has no inherent power to order pre-deposit while remanding a case to meet the ends of justice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this case, the CESTAT remanded the case to the Commissioner, but directed the party to deposit an amount of Rs. 5 Crores. The Tribunal had observed, "<em>even if the appeal has to be remanded it cannot be remanded without considering the balance of convenience and justice to the public at large and the Government. In our opinion, having retained the money for more than 5 years, the appellant should deposit at least amount which we have found prima facie payable with a small portion of the interest that is payable if the matter is remanded. Normally the matter should be remanded after noting compliance but to avoid further lapse of time, we consider that it would serve the interest of justice and public interest if the matter is sent back at this stage itself. Therefore the appellant is directed to deposit an amount of Rs. 5 crores within 12 weeks and report compliance before the Commissioner.</em>" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee is in appeal before the High Court.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court observed,</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The Tribunal does not have any inherent power like Civil Court to pass appropriate order for the ends of justice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The Tribunal is a creature of a Statute with specific powers mentioned in the Statute itself. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. From the grounds of the appeal and the Statute, we do not find any provision for depositing Rs.5 crores for adjudication and the same is without jurisdiction. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. In any event, <strong>logically question of deposit does not arise unless there is an adjudication to suffer with the liability of the appellant</strong>. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the High Court deleted the order of deposit of pre-deposit and directed the Commissioner to adjudicate the matter without any deposit.</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=OTc1MDU=" target="_blank">2014-TIOL-2014-HC-AP-CX
</a></font></strong></p>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><em><strong><font size="3">NRIs - Acquisition/Transfer of Immovable property - Payment of Taxes - RBI clarifies </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RBI</strong> observes that doubts persist in the members of public regarding requirement of payment of taxes while undertaking property transactions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI clarifies that as per the <em>Foreign Exchange Management (Acquisition and Transfer of immovable property in India) Regulations, 2000</em>, transactions involving acquisition of immovable property under these regulations shall be subject to the applicable tax laws in India. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the Regulations:</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A person resident outside India who is a citizen of India may - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) acquire any immovable property in India other than agricultural/plantation/farm house, and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) transfer any immovable property in India to a person resident in India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) transfer any immovable property other than agricultural or plantation property or farm house to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A person of Indian origin resident outside India may - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) acquire any immovable property other than agricultural land/farm house/ plantation property in India by purchase, from out of (i) funds received in India by way of inward remittance from any place outside India or (ii) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) acquire any immovable property in India other than agricultural land / farm house / plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) transfer agricultural land/farm house/ plantation property in India, by way of gift or sale to a person resident in India who is a citizen of India; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyODg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI AP (DIR Series) Circular No. 38., Dated: November 20, 2014 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Export of Goods/Software/Services - Period of Realisation and Repatriation of Export Proceeds - RBI Instructs </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> period of realization and repatriation to India of the amount representing the full export value of goods or software exported was six months. In 2011, RBI extended this period to twelve months. This relaxation was available up to September 30, 2012. In November 2012, RBI extended this relaxation till March 31, 2013. Thereafter this period was brought down from twelve months to nine months from the date of export, valid till September 30, 2013. However this period was retained at twelve months for Units located in SEZs, Status Holder Exporters, EOUs, Units in EHTPs, STPs & BTPs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Present</strong>: RBI directs that henceforth the period of realization and repatriation of export proceeds shall be nine months from the date of export for <strong>all exporters</strong> including Units in SEZs, Status Holder Exporters, EOUs, Units in EHTPs, STPs & BTPs until further notice. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyODY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI AP (DIR Series) Circular No. 37., Dated: November 20, 2014 </font></strong></a></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600" size="3">Customs - New Exchange Rates from Today </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has notified new exchange rates for Imported Goods and for Export Goods with effect from 21st November 2014. The US Dollar is 62.60 rupees for imports and 61.60 rupees for exports.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Exchange rates were last notified on 5th November, 2014.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyODQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.111/2014-Cus (N.T.), Dated: November 20, 2014 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">FTP - Policy for issue of import licenses of Rough Marble </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified the Import Policy of Rough Marble and Travertine blocks for the year 2014-15 with a quota of 8 lakh MT and a floor price of USD 325 per MT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All licenses shall be subject to actual user condition. Licenses for Import of Marble and Travertine will have a validity up to 31 December 2015.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyODk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No.99 (RE - 2013)/2009-2014., Dated: November 20, 2014 </font></strong></a></p>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><em><font size="3">FTP - Modification of SION A-1475 and SIONs A-1839, A-1841 and A-1842. </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended the description of the imported items for two SIONs. The existing and modified descriptions are:</font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td width="284" valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing Import Item Description </font></div></td>
<td width="302" valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Modified Import Item Description </font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SION A-1475 </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Catalyst T 8P
<br>
(Import item at Sl. No.3) </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PTA purification catalyst (0.50% palladium on carbon)
<br>
(Import item at Sl. No.3) </font></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SIONs A-1839, A-1841 and A-1842 </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Heat Transfer Fluid (Dowtherm / Santotherm 66/Terminal VP 1) </font></p></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Heat Transfer Fluid (Dowtherm / Santotherm 66/Therminol VP 1) </font></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyODU=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No.75 (RE - 2013)/2009-2014., Dated: November 20, 2014 </font></strong></a></p>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><em><strong><font size="3">Judicial Members of CESTAT Transferred </font></strong></em></font></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"> President has transferred six out of the ten Judicial Members of the CESTAT. Every Bench except Kolkata has a transfer. Technical Members are not transferred. Six of the ten Technical Members will retire in 2015 and three will retire in 2016, unless of course the retirement age is enhanced. There is a strong rumour (perhaps a wish) going around that retirement age for all Government employees will be enhanced to 62, for academics and judges to 65. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is learnt that some new Members will be appointed in CESTAT soon. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/transferorder_cestat_member_2739_2014.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT F.No.27(39)/Tranf. Policy/CESTAT/Admn-08 , Dated: November 19, 2014 </font></strong></a></p>
<p align="center"><font size="3"><strong><em><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif">SEZ Vizag needs a Development Commissioner </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DoPT</strong> has invited recommendations from Chief Secretaries of States and Secretaries to the GOI, for the post of Development Commissioner, Visakhapatnam Special Economic Zone from among those officers who have been empanelled to hold Joint Secretary or equal posts at the Centre. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DC, SEZ is a Commissioner rank post and has jurisdiction in the States of Telangana and Andhra Pradesh. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/deputation/vcacancy75_2014.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DoPT Letter No.10/14/2014-EO(SM-I)(Part I), Dated: November 20, 2014 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><strong><font color="#006600">Jurispruden</font></strong></strong></em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em><font color="#FF6633" size="4">tiol</font></em></strong></font></strong></font><em><strong><strong><font color="#006600">-Monday's cases</font></strong></strong></em></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">Central Excise</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Penalty - If both lower authorities had applied their mind, matter would not have travelled so far - as duty & interest was paid before issue of SCN, penalty u/s 11AC is only 25% of duty: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> this case, the appellant paid the amount of central excise duty in dispute along with interest before issuance of the show-cause notice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In spite of the above, the adjudicating authority as well as the lower appellate authority confirmed the penalty to the extent of 100% of the duty demanded. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant is, therefore, before the CESTAT and submits that only a penalty of 25% of the duty ought to have been confirmed as per the provisions of s.11AC of the CEA, 1944. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the AR was asked by the Bench to comment on the issue, he said the <font color="#FF0000"><em>Tribunal may take its own view on the subject</em></font>. </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 goods are loaded on ship and title with risk is passed on to assessee as per contract, assessee can claim deduction for loss if goods are not received - YES: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee is engaged in the business of trade in importing timber logs in bulk quantity. It had entered into contract with <em>M/s Ply International</em>, USA for import of teak logs of Tanzanian origin by shipment to be made in June and July 1994. The sale was on C & F basis where insurance was to be covered by the assessee and freight was to be paid by Ply International. The terms of the contract stipulated that once the goods were accepted on inspection, it would be considered as sold and held at the risk and responsibility of the assessee. The assessee for purpose of such contract had engaged the services of shipping vessel, M V Hazar through the charterer viz., M/s Ummall Quwain (UAE) and booked the consignment. The teak logs were inspected by the representatives of assessee at Tanga Port and a certificate was issued on behalf of the assessee stating the quality, quantity and measurement of teak logs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issues before the Bench are - Whether where the goods have been given in shipment and title of goods along with the risk has been passed on to the assessee in terms of a contract, the assessee will be said to be at loss if such goods are not received by him and Whether where the assessee has exhausted all the methods to recover the losses he incurred during previous year on account of loss of goods in transit and has not claimed deduction on those losses in the previous year, he cannot be denied from claiming deduction on the said losses in the subsequent year if such loss was not written off. And the verdict favours 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">Notfn. 158/95-Cus - re-import - just because Commissioner has chosen to sit over appellant's request for extension and not take any decision, benefit of exemption cannot be denied - Appeal allowed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellant had exported a consignment of alloy steel spanners. Some of the alloy steel spanners exported were returned by the foreign buyers for the purpose of repairs. The goods were re-imported. Duty free import of the goods for repair and re-export was claimed under Notification No.158/95-CUS which prescribes certain conditions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant furnished the required bond backed by the bank guarantee. Since the appellant could not complete repair/re-conditioning within period of six months from the date of re-import they submitted an application to the customs for extending the period of re-export by another six months but no decision was taken on their application for extension of period for re-export. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Monday for the judgements</font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice weekend. </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@tiol.in">vijaywrite@tiol.in </a></strong></font></p>
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