TIOL-DDT 2492 · the untouched capture
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<p><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 2492</font><br>
09.12.2014<br>
Tuesday</strong></font></p>
<p align="center"><em><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600">A Stay Story </font></strong></font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Commissioner had confirmed a Service Tax demand of over Rs. 34 crores on certain alleged EPC projects for a State Government in an order dated 21.09.2011. The assessee filed a Stay application and sought waiver of pre-deposit. The CESTAT by an order dated 10.07.2013 <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTA5MDk=" target="_blank"><strong>2013-TIOL-1779-CESTAT-BANG</strong></a>, ordered deposit of over Rs. 30 crores and interest thereon. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee filed a writ petition in the High Court. The interesting question before the High Court was whether the order of pre-deposit was an appealable order or whether writ was a remedy. The High Court held that it was an appealable order and rejected the writ petition. <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTEwNDM=" target="_blank"><strong>2013-TIOL-997-HC-AP-ST</strong></a>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the assessee filed an appeal against the Tribunal's pre-deposit order. In a landmark order, the High Court observed that <font color="#FF0000"><em>indiscriminate denial of the power of waiver would result in a situation where an aggrieved party would be indirectly told "pay or perish</em></font><em>"</em> . But strangely, the High Court ordered pre-deposit of about Rs. 18 crores. <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTE4Njk=" target="_blank"><strong>2014-TIOL-137-HC-AP-ST</strong></a>. Please also see <font color="#FF6633"><strong>Service Tax - Appeal - Pre-deposit - Pay or Perish? in</strong></font> <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTk2NjI=" target="_blank"><strong> DDT 2285 03.02.2014</strong> </a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The perseverant assessee approached the Supreme Court. The Apex Court initially ordered that no coercive steps should be taken (<strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTk4MjE=" target="_blank">DDT 2299</a></strong>) but later allowed the assessee to withdraw the SLP and go back to the High Court with a review petition. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The assessee approached the High Court with a review petition. In an order dated 12.06.2014, the High Court remanded the matter to the Tribunal for the exclusive purpose of paving the way for the assessee to urge the ground of their financial weakness, or inability, before the Tribunal. <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTUxODE=" target="_blank">2014-TIOL-1231-HC-AP-ST</a></strong> and (<strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjEwOTk=" target="_blank">DDT 2405 28.07.2014</a></strong>) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the assessee was back to where it all started. This time around the Tribunal observed that <em>it is necessary for the appellant to ensure that if not the full tax, at least a portion of the tax is paid for hearing the appeal.</em> <font color="#FF0000"><em>Appellants cannot expect the Government to stand in a queue along with other creditors for realization of tax</em></font> <em>when the assessee is a going concern and continues to be a taxpayer. </em>The Tribunal ordered deposit of Rs. 10 crores. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the assessee went straight to the Supreme Court. The Supreme Court on 05.12.2014, directed the assessee to deposit an amount of Rs. 2 crore before 14.12.2014 and on payment of this amount, the assessee will also be heard by the Larger Bench sitting at Bangalore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Larger Bench:</strong> In another case reported by us in <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTY2MDU=" target="_blank"><strong>2014-TIOL-83-SC-ST</strong> </a>the Supreme Court on 15.09.2014 directed that all similar cases should be heard by a Larger Bench of the Tribunal headed by the President, so that a uniform order is passed. [<font color="#006600"><strong>At last, some light at end of the... canal</strong></font> - <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjE2NjI=" target="_blank"><strong>DDT 2450 07.10.2014</strong></a>] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Larger Bench of the Tribunal is all set to have its sitting in Bangalore from 15th December 2014.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the last 17 months, this assessee was before the CESTAT twice, the High Court twice and the Supreme Court twice - perseverance pays. </font></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600" size="2">Anti Dumping Duty - Sodium Nitrite - Reimposed at revised Rates</font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong> anti dumping duty on Sodium Nitrite originating in, or exported from, People's Republic of China, imposed by Notification No. 143/2009-Cus, dated 22nd December 2009, lapsed on 17th January 2011 and was resurrected again by Notification No. 11/2011-Cus dated 17.02.2011 giving a fresh lease of life to the anti-dumping duty till June 30, 2011 . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government reimposed the duty at a reduced rate with effect from 17th August 2011, valid for five years, by Notification No. 76/2011-Customs, dated the 17th August, 2011. Consequent to mid-term review, they have now rescinded the Notification No. 76/2011 and the anti dumping duty is reimposed at reduced rates with effect from 08.12.2014 valid upto and inclusive of the 16th August, 2016. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTczMjM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 46/2014-Cus.,(ADD), Dated: December 8, 2014 </font></strong></a></p>
<p align="center"><font size="3"><strong><em><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif">FTP -Government Notifies Appellate Authorities</font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified Appellate authorities for orders passed by various adjudication authorities as follows:</font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr valign="top">
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No.</font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Designation of Adjudicating Authority </font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appellate Authority </font></strong></div></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></td>
<td valign="top" bgcolor="#F5CAAF"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Assistant Director General of Foreign Trade </font></td>
<td rowspan="3" valign="top" bgcolor="#F5CAAF"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Director General of Foreign Trade</font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></td>
<td valign="top" bgcolor="#F5CAAF"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Deputy Director General of Foreign Trade </font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. </font></td>
<td valign="top" bgcolor="#F5CAAF"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Joint Director General of Foreign Trade </font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. </font></td>
<td valign="top" bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Director General of Foreign Trade </font></td>
<td rowspan="3" valign="top" bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Director General of Foreign Trade aided by one Addl. DGFT in the Directorate General of Foreign Trade.</font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. </font></td>
<td valign="top" bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Development Commissioner, Special Economic Zones</font></td>
</tr>
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. </font></td>
<td valign="top" bgcolor="#FFFF00"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Designated Officer, Department of Electronics & Information Technology </font></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTczMjQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 101 (RE-2013)/2009-2014, Dated: December 05, 2014 </font></strong></a></p>
<p align="center"><font size="3"><strong><em><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif">FTP - No Registration for export of cotton </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended Sl. No. 197 & 199 of Chapter 52 of Schedule 2 of ITC (HS) Classification of Export & Import Items to dispense with the registration requirement for export of cotton (Tariff Codes 5201 & 5203). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly Sl. No. 200, 201 & 202 of Chapter 52 of Schedule 2 of ITC (HS) Classification of Export & Import Items have been amended to dispense with the registration requirement for export of cotton yarn (Tariff Codes 5205, 5206 & 5207), for which the export policy is now free without any restrictions. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTczMjU=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Notification No. 102 (RE-2013)/2009-2014, Dated: December 08, 2014 </strong></font></a></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTczMjY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 103 (RE-2013)/2009-2014, Dated: December 08, 2014 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Thou Shalt - 21 Commandments for the babu - Conduct Rules Amended </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> president has amended the Central Civil Services Conduct Rules to add 18 clauses to Rule 3(1), which are: </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Every Government servant shall at all times-- </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv. commit himself to and uphold the supremacy of the Constitution and democratic values; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v. defend and uphold the sovereignty and integrity of India, the security of the State, public order, decency and morality; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi. maintain high ethical standards and honesty;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vii. maintain political neutrality;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">viii. promote the principles of merit, fairness and impartiality in the discharge of duties; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ix. maintain accountability and transparency;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">x. maintain responsiveness to the public, particularly to the weaker section; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xi. maintain courtesy and good behaviour with the public; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xii. take decisions solely in public interest and use or cause to use public resources efficiently, effectively and economically; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xiii. declare any private interests relating to his public duties and take steps to resolve any conflicts in a way that protects the public interest;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xiv. not place himself under any financial or other obligations to any individual or organisation which may influence him in the performance of his official duties; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xv. not misuse his position as civil 'servant and not take decisions in order to derive financial or material benefits for himself, his family or his friends;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xvi. make choices, take decisions and make recommendations on merit alone;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xvii. act with fairness and impartiality and not discriminate against anyone, particularly the poor and the under-privileged sections of society; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xviii. refrain from doing anything which is or may be contrary to any law, rules, regulations and established practices;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xix. maintain discipline in the discharge of his duties and be liable to implement the lawful orders duly communicated to him; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xx. maintain confidentiality in the performance of' his official duties as required by any laws for the time being in force, particularly with regard to information, disclosure of which may prejudicially affect the sovereignty and integrity of India, the security of the State, strategic, scientific or economic interests of the State, friendly relation with foreign countries or lead to incitement of an offence or illegal or unlawful gain to any person; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xxi. perform and discharge his duties with the highest degree of professionalism and dedication to the best of his abilities. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier there were only three clause which were: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) maintain absolute integrity; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) maintain devotion to duty; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) do nothing which is unbecoming of a Government servant. </font></p>
</blockquote>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/ccs_conduct.pdf">DoPT Notification in F. No. 11013/6/2014-Estt A, Dated: November 27 2014 </a></font></strong></p>
<p align="center"><font size="3"><strong><em><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif">CBEC Releases Draft IRS Rules </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBEC has released the Draft Indian Revenue Service (Customs and Central Excise) Group 'A' Rules, 2014. CBEC has requested the Chief Commissioners to circulate the Draft Rules among all the <strong>concerned</strong> members of the Service.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Group A in the Service consists of: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td width="51" valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Grade </font></strong></div></td>
<td width="230" valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Grade of Service </font></div></td>
<td width="62" valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Number of Posts </font></div></td>
<td width="197" valign="top"><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pay band and grade pay </font></div></td>
</tr>
<tr bgcolor="#DCEDCB">
<td width="51" valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I </font></strong></td>
<td width="230" valign="top" bgcolor="#DCEDCB"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Principal Chief Commissioner/ Principal DG </font></td>
<td width="62" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14 </font></td>
<td width="197" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">80,000 </font></td>
</tr>
<tr>
<td width="51" valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">II </font></strong></td>
<td width="230" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioner/DG </font></td>
<td width="62" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">38 </font></td>
<td width="197" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">75,500-80,000 </font></td>
</tr>
<tr bgcolor="#DCEDCB">
<td width="51" valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">III </font></strong></td>
<td width="230" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Principal Commissioner </font></td>
<td width="62" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">100 </font></td>
<td width="197" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">67,000-79,000 </font></td>
</tr>
<tr>
<td width="51" valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IV </font></strong></td>
<td width="230" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner </font></td>
<td width="62" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">340 </font></td>
<td width="197" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">37,400-67,000 GP 10,000 </font></td>
</tr>
<tr bgcolor="#DCEDCB">
<td width="51" valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">V </font></strong></td>
<td width="230" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Additional Commissioner </font></td>
<td width="62" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">932 </font></td>
<td width="197" valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">37,400-67,000 GP 8700 </font></td>
</tr>
<tr>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">VI </font></strong></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Joint Commissioner </font></td>
<td valign="top"> </td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15,600-39,100 GP 7600 </font></td>
</tr>
<tr bgcolor="#DCEDCB">
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">VII </font></strong></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Deputy Commissioner </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">801 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15,600-39,100 GP 6600 </font></td>
</tr>
<tr>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">VIII </font></strong></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Assistant Commissioner </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1249 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15,600-39,100 GP 5400 </font></td>
</tr>
<tr bgcolor="#DCEDCB">
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IX </font></strong></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Assistant Commissioner (Temporary) </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2118 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15,600-39,100 GP 5400 </font></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The last grade of temporary Assistant Commissioners (recently promoted) will exist only up to 17.12.2018 and these officers will not have any right to continue in these posts after that. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioners with one year of service are eligible to be promoted as Principal Chief Commissioners and PCs with one year service are eligible for promotion as Chief Commissioner. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As of now there are no Principal Chief Commissioners and there are only three Principal Commissioners. After the Rules are notified, the promotion exercise will start. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/recruitmtrulesgpA-dft-amend.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Letter in F.No.A 12018/3/2014-Ad II, Dated: December 08 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">-Wednesday's cases</font></strong></strong></em></font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left">Central Excise</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">No error in order of Tribunal disallowing CENVAT Credit on services relating to trading activity prior to 01.04.2011: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INPUT</strong> service means service used by the appellant - manufacturer directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. In the present case, the pre-heater valued at Rs.5.41crores is the final product, which was manufactured and cleared from the place of removal, i.e., from the appellant's factory. The remaining goods valued at Rs.36.04 crores were not manufactured as final product and cleared from the place of the appellant. In such a case, it would not qualify for the benefit of cenvat credit under Rule 2(l) of the Cenvat Credit Rules, as rightly upheld by the Commissioner (Appeals) and the Tribunal. The service tax paid on sales commission in respect of procuring orders by M/s. Adhunik Corporation cannot be utilised by the appellant for taking credit for the goods not manufactured as a final product and cleared from the appellant's manufacturing unit. </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 assessee revises return after being confronted by AO but before issue of notice for filing accurate particulars, penalty is warranted in such case - YES: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee company had gone into liquidation and the Official Liquidator had been appointed. Assessee had filed e-return declaring loss of Rs.1,89,44,380/-. It had also claimed business loss amounting to Rs.2,33,07,349/- on account of sale of fixed assets. During assessment, assessee filed a revised return declaring total income of Rs.33,62,974/. In the revised return, the loss of Rs. 2,33,07,349 on account of sale of fixed assets was not treated as "business loss", rather shown as capital loss. The AO made some additions and assessed the total income of assessee at Rs.40,19,974/- and taxable income at "NIL" after giving benefit of brought forward losses. Pursuant to the satisfaction recorded in the assessment order, penalty proceedings for concealment u/s 271(1)(c) were initiated and penalty equal to 100% of the tax payable of Rs. 80,66,400/- on the concealed income was imposed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The issue before the Bench is - Whether when assessee revises return after being confronted by AO but before issue of notice for filing accurate particulars, penalty is warranted in such a case. YES is the answer of the High Court.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether introduction of new, comprehensive definition of "credit card, debit card, charge card or other payment card service" by FA, 2006 by excluding from ‘Banking & Other financial services' is substantive and prospective or is in continuation of levy under Section 65 (10)/(12) of FA, 1994 & retrospective - Matter referred to LB: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Bench is - Whether the commission/discount earned by the acquiring bank from the Merchant Establishment is liable to service tax under the category of banking and financial services for the period prior to 01.05.2006?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Matter is referred to Larger Bench</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>
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