TIOL-DDT 2481 · 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"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><font color="#663399"><s><strong><strong><strong><strong><strong><font color="#663399"><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></strong></strong></strong></strong></s></font></strong><font color="#663399" size="3">TIOL-DDT 2481</font><br> 24.11.2014 <br> Monday</strong></font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600"><em>Service Tax - Rent a cab- Difference Between Renting and Hiring - Kuldeep Singh case differed with</em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHAT</strong> exactly do you do when you rent a cab or hire a cab? If you are connected with Service Tax, this is indeed a taxi-ngproblem. (Once a vernacular newspaper reported me as editor of Taxi India Online) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Kuldeep Singh's case, Kuldeep Singh was providing transport services to IOCL for transport of its employees. His plea was that the vehicle was not rented to IOC and so there was no renting of cabs. The Punjab and Haryana High Court did not agree <strong><em>- <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2010/2010-TIOL-436-HC-P-H-ST.htm">2010-TIOL-436-HC-P-H-ST</a></em></strong>. The High Court held that <em>if the vehicle is used for providing transport service (as in the present case), then it will amount to providing taxable service under the Act and the respondent-firm was liable to pay service tax.</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, a similar issue reached the Uttarakhand High Court. This High Court did not agree with the Punjab and Haryana High Court in Kuldeep Singh's case. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court held: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Difference between renting and hiring </strong>: <em>under the rent-a-cab scheme, the hirer is endowed with the freedom to take the vehicle, wherever he wishes, and he is only obliged to keep the holder of the licence informed of his movements from time to time. When a person chooses to hire a car, which is offered on the strength of a permit issued by the Motor Vehicles Department, then the owner of the vehicle, who may or may not be the driver, will offer his service while retaining the control and possession of the vehicle with himself. The customer is merely enabled to make use of the vehicle by travelling in the vehicle. In the case of a passenger, he is expected to pay the metered charges, which is usually collected on the basis of the number of kilometers travelled. These are all matters, which are regulated by the Government. Unlike the said scenario, in the case of a rent-a-cab scheme, as is clear from the very fundamental principle underlying the scheme, it is to give the hirer the freedom to use the vehicle as he pleases, which, undoubtedly, implies that he must have possession and control over the vehicle. This is the fundamental distinction between rent-a-cab and a pure case of hiring.</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rent a cab</strong>: unless the control of the vehicle is made over to the hirer and he is given possession for howsoever short a period, which the contract contemplates, to deal with the vehicle, no doubt subject to the other terms of the contract; there would be no renting. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <em>Transport Solutions Group</em> - <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODgwNjA=" target="_blank">2013-TIOL-703-CESTAT-MUM</a></strong>, the Tribunal followed the Punjab and Haryana High Court judgement in <em>Kuldeep Singh.</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now there are two contradictory judgements of two High Courts. Now what? Off to Supreme Court? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We bring you the Uttarakhand judgement today. Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=22042" target="_blank">Breaking News</a>.</strong></font></p> <p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><font size="3"><em>Central Excise/Customs - Anti-Malarial Drugs Exempted </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </strong>has exempted Anti-Malarial drugs and Diagnostics and Medical Products subject to the condition that the manufacturer shall produce at the time of clearance of the said goods, before the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise having jurisdiction, as the case may be, a certificate from an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Health and Family Welfare to the effect that the said goods are required for the Intensified Malaria Control Project (IMCP)-II under the National Vector Borne Disease Control Programme (NVBDCP), funded by Global Fund to fight AIDS, TB and Malaria (GFATM). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This exemption is valid till 30th September 2015. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar Notification is issued for exemption from Customs Duty. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyOTc=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No.23/2014-CE., Dated: November 21, 2014 </strong></font></a></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyOTg=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No.32/2014 - Cus., Dated: November 21, 2014 </strong></font></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600"><em>Anti dumping duty on Diclofenac Sodium - Another Resurrection </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DEFINITIVE </strong>Anti dumping Duty was imposed on Diclofenac Sodium, falling under heading 2942 of the First Schedule, originating in, or exported from, People's Republic of China by Notification No.91/2008-Customs, dated 30.07.2008. This was to be effective from 10.04.2008 and to be valid till 09.04.2013.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As usual, they were sleeping on 9th of April 2013. They woke up after seven months and extended the validity of the notification up to and inclusive of the 9th day of April, 2014 by Notification No. 31/2013-CUS (ADD), dated November 13, 2013. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In October 2014, the Designated Authority found that there is continued dumping and that the dumping and injury is likely to continue if the anti dumping duty is revoked. (<font color="#FF6633">it had already lapsed</font>) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the anti dumping duty is re-imposed with effect from 21.11.2014. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What about the dumping during the period 10.04.2014 to 20.11.2014? </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyOTU=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No.44/2014-Cus., (ADD), Dated: November 21, 2014 </strong></font></a></p> <p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><font size="3"><em>Anti Dumping Duty on DVD-R and DVD-RW - Re-resurrection </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> had imposed anti dumping duty on imports of Digital Versatile Discs-Recordable (DVD-R and DVD-RW) originating in or exported from China PR, Hong Kong and Chinese Taipei by Notification No. 8/2009-Customs, dated the 22nd January, 2009 with effect from 23.07.2008 and this notification expired with effect from 23.07.2013. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They forgot to extend it by 23.07.2013. The resurrection trick has come to their rescue. It has extended the life of the notification till 22.07.2014 - more than a month after its official death by Notification No. 19/2013-Cus(ADD) dated 29.08.2013. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Again nobody remembered about this notification on 22.07.2014 and it had a second death on that day. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shakespeare said, "Cowards die many times before their death", CBEC believes that dead notifications can be resurrected any number of times. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has again imposed anti dumping duty for five years with effect from 21.11.2014. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why can't they keep track of their sunset notifications? Resurrecting dead notifications has become an incorrigible habit with the Board in spite of the Board's own instructions that such resurrection is not valid! Is the Board God? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps, no one in the Board wants to remember the Delhi High Court decision in the case of <em>Kumho Petrochemicals Co. Ltd. </em> <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTQ5MTU=" target="_blank">2014-TIOL-1130-HC-DEL-AD</a>.</strong> </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTcyOTY=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 45/2014-Customs (ADD), Dated: November 21, 2014 </strong></font></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600"><em>Anti Dumping Duty on Compact Fluorescent Lamps - When is next resurrection?</em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PROVISIONAL</strong> Anti Dumping Duty on Compact Fluorescent Lamps (CFL) with or without ballast or control gear or choke, whether or not assembled, either in completely knocked down or semi knocked down condition, originating in, or exported from China PR, Sri Lanka and Vietnam, was imposed by Notification No. 126/2008-Customs, dated the 21st November, 2008. Final anti-dumping duty on CFL imports from these countries was imposed by notification 55/2009-Cus dated 26th May 2009. This notification was made effective from 21st November 2008 and it expired on 21.11.2013. They put life back into this notification till 20.11.2014 only by Notification No. 2/2014-Cus ADD, dated 03.01.2014 in respect of CFL imports from China PR. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As usual, they must have forgotten this on 20th November. Maybe the next resurrection will come soon. </font></p> <p align="center"><strong><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em>RBI Credit Cards - RBI cautions against fraud </em></font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HAVE</strong> you got an invitation from RBI offering you a credit card? Don't believe it. RBI has issued yet another alert to the public about the newest form of fraud perpetrated in its name - a credit card issued by fraudsters in the name of the Reserve Bank. Explaining the modus operandi, the Reserve Bank stated that the gullible member of the public is sent a credit card which allows withdrawal of money up to a certain limit, albeit a small sum, from a bank account. Having gained the confidence of the victim thus, the fraudster gets him to deposit a huge sum of money in the same bank account. Once the money is deposited, the card stops working and that would also be the last time the holder of the card (victim) would hear from the fraudster. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reserve Bank has reiterated that as India's central bank, it does not carry out any business with an individual, whether through savings bank account, current bank account, credit card, debit card, online banking services or receiving and holding funds in foreign exchange or any other form of banking services. The Reserve Bank has listed out the other kind of prevalent frauds, such as: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) Fictitious offers of large sum of money/lottery winnings by email or through phone calls by posing as RBI official. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii) Fake Reserve Bank website for online transactions </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii) Luring members of public to secure their bank accounts against such frauds by asking them to share the bank account details, including user id/password, through an email or by clicking on a link given in email. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv) Offer of employment in the Reserve Bank through email </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Reserve Bank has also stated that fictitious offers are also made in the name </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">of other public institutions, such as, International Monetary Fund (IMF), Income Tax authorities, Customs authorities or public figures like Governor, Dr. Raghuram Rajan or other senior RBI officials. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Reserve Bank has pointed out that once the moneys are paid in fraudsters' accounts, there are remote chances of the members of public recovering the moneys. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_credit_cards.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RBI Press Release 2014-2015/1046., Dated: November 21, 2014 </strong></font></a></p> <p align="center"><strong><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em>Exemption of excise duty on tow arising during course of manufacture of polyester staple fibre (PSF) or polyester filament yarn (PFY) - CBEC Clarifies </em></font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS </strong>per Sl. No. 172A of notification No. 12/2012-Central Excise, dated 17.03.2012 excise duty on polyester staple fibre (PSF) or polyester filament yarn (PSY), manufactured from plastic waste including waste polyethylene terephthalate bottles, is exempted. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Board's Circular No. 19/MMSF/88-CX.1 dated 26.5.1998, tow arising during the course of manufacture of such PSF/PSY is chargeable to excise duty since the final product is exempt. Tow arising during the manufacture of such PSF/PFY contributes to 90% of the value of such PSF/PSY defeats the purpose of granting exemption from excise duty to such PSF/PSY. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received requesting for granting exemption from excise duty on tow arising during the manufacture of such PSF/PFY. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board had informed the Chief Commissioners in letter F. No. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2014/ex_letter_3452014.htm" target="_blank"><strong>345/2/2013-TRU</strong> </a>dated 14.03.2014 (please see <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjAzNTI=" target="_blank">DDT 2347</a></strong>) that the matter was under consideration in the Ministry and the field formations were requested to keep the show cause-cum-demand notices on the above issue, if any, in the Call Book pending further instructions from the Ministry. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Board informs the Chief Commissioners: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>In the Budget 2014-15, excise duty on Polyester Staple Fibre (PSF) and Polyester Filament Yarn (PFY) manufactured from plastic waste or scrap or plastic waste including waste polyethylene terephthalate (PET) bottles (which was already exempt w.e.f. 08.05.2012) has been exempted retrospectively w.e.f. 29.06.2010 to 07.05.2012 [section 110 of the Finance (No. 2) Act, 2014 refer]. Intermediate product, "Tow" arising during the course of manufacture of such PSF/PFY has also been exempted retrospectively w.e.f. 29.06.2010 to 10.07.2014 so as to provide relief to the manufacture of such PSF/PFY [section 110 and 111 of the Finance Act (No.2) Act, 2014 refer].</em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants Show Cause Notices to be disposed of accordingly. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTczMDA=" target="_blank">CBEC Letter in F.No. 345/2/2013-TRU, Dated: September 22 2014 </a></strong></font></p> <p align="center"><strong><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em>Introduction of AADHAR Enabled Bio-metric Attendance System - babus will be forced to maintain punctuality </em></font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has been decided to use an AADHAR Enabled Bio-metric Attendance System (AEBAS) in all offices of the Central Government, including attached/ sub-ordinate Offices, in India. The system will be installed in the offices located in Delhi/ New Delhi by 31st December 2014. In other places this may be installed by 26th January 2015. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Many of our officers reach their offices by 11.30 am and many start leaving by 4.30 pm. This may be a thing of the past soon. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But what about those officers who do not have the AADHAR? </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/empanelment/aadhar_1101392014.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DoPT letter in F.No.11013/9/2014-Estt.A., Dated: November 21, 2014 </strong></font></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600"><em>India ranks 156 out of 189 in ‘Ease of Payment of taxes' </em></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> World Bank Study recently reported that India ranks 156 out of 189 countries in ease of payment of taxes. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A World Bank economist says, "<em>Taxes provide the sustainable funding needed for social programs and to promote economic growth. Policymakers need to find the right balance between raising revenue and ensuring that tax rates and the burden of compliance do not deter participation or discourage business activity</em>." </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In India an average Company has to spend 243 hours a year in tax compliance and make 33 payments and pay 62% of its profits as taxes. </font></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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em> </em></font></p> <p align="justify"><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">Service Tax </font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Appellant promoting products of their foreign counterpart by way of advertising, marketing etc. and consequently procuring orders for foreign supplier who delivers goods in India - service qualifies as export - Refund admissible: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellant is in the business as commission agent of their foreign counterpart for which they are promoting their product in India by way of advertising, marketing etc. Consequently they procure orders for their foreign supplier who delivers goods in India. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue is of the view that as the said activity is performed in India, therefore, the appellant is required to pay service tax under Business Auxiliary Service under reverse charge mechanism. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The appellant had filed a refund claim of the tax paid by them and the same was rejected by the lower authorities holding that the service of the appellant does not fall under the Export of Services Rules, 2005. </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 when assessee has received certain services and also accepted claims for same, such expenditure is not allowable u/s 37(1) merely because provisions were made close to AY and bills were not received - NO: HC </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee made provision for network repair and maintenance expenses. Assessing Officer made addition on account of provisions for network repair and maintenance and disallowance on account of credit verification cost, provision for consultancy charges and provision for car hiring charges. Commissioner of Income Tax (Appeals) upheld the disallowance made by Assessing Officer. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tribunal held that no case was made out that the provision made by the assessee for network repair and maintenance expenses was only a contingent liability. It was held that the provision was made for the repairs in this regard as the relevant bills were not received and payment thereof was not made upto the close of the assessment year. Hence, in accordance with accrual system of accounting, the provision in this regard was created. Hence, the provision for network repair and maintenance expenses could not be said to be a provision made for contingent expenses. Hence, said disallowance has to be deleted. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether provisions for network repair and maintenance and credit verification cost and provision for consultancy charges and provision for car hiring charges are disallowable as a contingent liability where the services had actually been performed and liability was accepted by the assessee and the amounts represented ascertained liabilities and were shown as "provisions" as the services were rendered close to the assessment years and relevant bills were not received. And the answer favours the assessee. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notf. 77/2008-Cus dated 13/06/2008 is effective from 00 hours of 13/06/2008 - Since 'Let Export Order' has been given on 13/06/2008, the rate of duty relevant for assessment would be the rate prevalent on 13/06/2008 - Benefit available: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Commissioner (A) held that the assessee was eligible for the exemption under Notification No. 77/2008-Cus dated 13/06/2008 as the same is effective from the midnight of 13/06/2008 and the Let Export Order was given on 13/06/2008; refund is admissible </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue is aggrieved and, therefore, is before the CESTAT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ground urged is that the respondent had not challenged the assessment order and, therefore, in view of the apex Court's judgment in the case of <em>Priya Blue Industries Ltd. </em><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=26&filename=legal/sc/2004/2004-TIOL-78-SC-CUS.htm" target="_blank">2004-TIOL-78-SC-CUS</a></strong>, the refund claim was not maintainable. </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"><a href="mailto:vijaywrite@tiol.in"><strong>vijaywrite@tiol.in</strong></a></font></p> </body> </html>