TIOL-DDT 2560 · the untouched capture
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<p align="justify"><strong><font color="#663399" size="3" 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>TIOL-DDT 2560</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
18 03 2015 <br>
Wednesday </font></strong></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Budget Debate Over - 25% Corporate Tax was UPA Idea - FM</font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Lok Sabha concluded yesterday the debate on Budget 2015. 61 Members have spoken and 101Members have laid written speeches. In his reply the FM observed that he rarely recollects a debate where 162 Members, cutting across the Party lines, have spoken on a subject. The fact that the Indian Parliament should have such a large number of people wanting to speak on the Budget, itself is indicative of the fact that the economy now occupies the centre stage of the political agenda. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The FM has not announced any fresh measures, concessions or corrections. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Excerpts from his speech:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>So, for those who have adopted obstructionism as a strategy or obstructionism as an ideology, you prevent economic decision making, you prevent reform, you prevent change, you prevent investment, you prevent jobs, you prevent revenue. You prevent infrastructure and you perpetuate India as a poor nation. That is not a course, which we are going to follow. That is not a roadmap on which we are going to ply.</em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the first step is that we must have more money from within and outside coming into this country. We must<strong> ease the doing of business</strong>. You cannot have an investor saying, I will invest in India, but it takes him five years to get 43 permissions in order to do his business. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>We are competing for investment, not only foreign investment but Indian investment also. Indians are preferring to set up their industries in Indonesia, Malaysia, Thailand and China. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I have seen every country's corporate tax. The ASEAN region average has come down to 21.9 per cent. Now, I will give you the average and the data of all the countries are before me. The Global average is 23.64 per cent. Asian region is 21.91 per cent and Europe is 19.68 per cent. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the international investor will say: "I have a 10 per cent advantage in going to this country. I will go there." So, India will dry up. Now, a very sensible move was mooted by a Government that let us bring it down to 25 per cent. I said: "We make it 25 per cent" and you said: "You are pro-corporate." I must confess that this is not my original idea. I have borrowed this idea from the UPA Government. The UPA Government drafted and brought out the Direct Tax Code. The Direct Tax Code was drafted during Mr. Chidambaram's period. In 2009, the present Rashtrapatiji as Finance Minister put it in the House and Mr. Chidambaram tried his best so that the Direct Tax Code can become a law. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Who will come to India if I charge 34 per cent? So, the UPA Government started a good move. From this Direct Tax Code, I borrowed this idea. When I borrowed this idea, immediately the whole of the Congress Party stands up and says: "You are pro-corporate." </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A starved Government and a starved nation will not have that capacity. Therefore, the UPA took a stand and I am requesting you with folded hands, let politics of obstructionism not be carried to an extent that the UPA now puts itself in a situation that it says: "I oppose every word of the Direct Tax Code that I had promised." </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What have I done with regard to other taxes? I abolished the wealth tax. The wealth tax was giving us Rs.900crore, Rs.1,000crore. Everybody was filing returns. It was a high effort but low yield. I said: "Instead of this, two per cent surcharge on the super rich." So, where I was getting Rs.1,000crore, from this two per cent surcharge I will get Rs.9,000crore. It is a simplified tax procedure. Why should anybody have an objection to this? </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To support ‘Make in India', I said: "Inverted tax structures must go." </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The world is considering India as a bright spot in the global economy. It is a chance where we must fully exploit this possibility and enable this country to grow. </font></em></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Please look after interest of fakirs of India</font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TAKING</strong> part in the debate the MP, Prof. Sugata Bose said ,<em>"Finance Minister's Budget Speech brought cheer to a handful of billionaires in our country. Having listened to the Opposition, I hope his reply today will offer something that might warm the hearts of a billion ordinary Indians. The Amirs can take care of themselves. Please look after the interest of the fakirs of India.</em>" </font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Service Tax - Appeals - No Time Limit for filing Stay Application </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> is yet another interesting case, which shows how, the might of the Government, befalls a citizen and how the benevolence of governance is denied, Modi and Jaitley notwithstanding. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An assessee (a hospital) was served with an order demanding an irregularly taken CENVAT Credit of about Rs. 9 lakhs, with the associated interest and penalty. Before filing the appeal with the Commissioner (Appeals), the assessee paid the demand with interest, but did not pay the penalty. They did not file a stay application along with the appeal, but filed the stay application at the time of personal hearing. The learned Commissioner (Appeals) did not like this audacity and he rejected the appeal itself. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pearls of wisdom from the order of the learned Commissioner (Appeals): </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. There is no explanation/elaboration whatsoever as to why and the reason for such admitted long delay and lapse in filing the said (stay) application dated 20.01.2014, when the same ought to have been necessarily filed along with their ST-4 application as is <font color="#FF0000"><strong>prescribed</strong></font>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. They cannot choose to file application in such haphazard and improper manner as and when they choose to do so, without observing the legal provisions in this regard which are binding on them. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. There is no explanation also on their part with proper basis urged for allowing the same, if permissible, in the given circumstances. They cannot be allowed to file application belatedly for waiver of the penalties imposed on them (involving long and unexplained lapse and gap of more than seven months) in such manner for consideration by this Authority. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. They cannot be allowed to profit from their own lapse and error. The provisions of Section 35F of the CEA are mandatory - if waiver application is not filed along with (simultaneously) the appeal memorandum (where penalty imposed is not deposited in full), the same is liable to be rejected as improper and not valid in law. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The position in this regard is well known and settled. In such binding circumstances, the proviso urged cannot be applied in their favour. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. The issue is not also of mere technical, minor and procedural nature-it goes to the root of the issue involved. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. The Lower Authority's Impugned Order has to be applied till it is stayed or reversed by a superior authority - not otherwise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. They cannot have the cake and eat it too. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. The waiver application was required to be filed along with the appeal memorandum for its consideration, being dependent and relying thereon - not separately and in disconnected manner subsequently, and here further belatedly involving long and unexplained lapse and delay of more than seven months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. The error and lapse committed by them is serious and cannot be considered to be inconsequential/ignorable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Revenue interests have to be safeguarded, as mandated in the sub-section. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. Moreover, if their submission is accepted, the need for filing waiver application with appeal memorandum, as is mandated u/s. 35F would be rendered otiose and of no material consequence, in such circumstances, which cannot be allowed. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All great thoughts, but would have been nice, if the learned Commissioner knew a little law also. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hon'ble Commissioner Sir,</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Where is it laid down that the Stay application has to be filed along with the appeal? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Who has prescribed this condition? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. What do they profit from their error and lapse? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. When and where was this issue well settled? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. What is the root of the issue? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. You say, "The Lower Authority's Impugned Order has to be applied till it is stayed or reversed by a superior authority - not otherwise." - Do that, how can you reject the appeal? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. How <em>does having the cake and eat it too</em> apply here? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. How did you safeguard the revenue interests? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Where is it mandated in Section 35F that waiver application has to be filed with appeal memorandum? </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The hospital filed an appeal before CESTAT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT observed, "<em>contrary to the observations of the learned Commissioner about the legal position being settled, the settled legal position is that even if a stay application has not been filed, before rejecting the appeal the appellant should be given an opportunity to file such an application and consider the same rather than rejecting the appeal.</em>" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the absence of any legal provision prescribing the time limit for filing stay application and having regard to the fact that appellant had filed application for waiver of pre-deposit before the appeal was being considered and personal hearing was granted, the Tribunal held that the Commissioner's decision to reject the appeal was not maintainable cannot be sustained. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly the impugned order was set aside and the matter was remanded to the learned Commissioner to consider the application for waiver of pre-deposit in accordance with law. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, what did the Commissioner (Appeals) achieve by this great order? He pretty well knew that the assessee would go in appeal to the Tribunal. If his intention was only to punish the assessee, he could have as well ordered pre-deposit; at least that would have saved the case doing a repeat round. Did he protect any Government revenue? Who bears the cost of appeal/remand/second time appeal? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is this the governance that the Prime Minister talks about often? Is this the ease of doing business that the Finance Minister promises?</font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see -
2<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTAwNzc2" target="_blank">015-TIOL-497-CESTAT-BANG</a></font></strong></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">CESTAT gets 33 crores in Budget 2015 - 4 crores for DRI secret fund </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>the Demands for Grants presented to Lok Sabha yesterday, CESTAT gets an expenditure of Rs. 33,72,00,000 in the Financial year 2015-16. This is 8 crores more than what it got last year.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some of the expenditure voted: </font></p>
<div align="justify">
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#F8D201">
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Department </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Expenditure </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Indirect Taxes </font></td>
<td valign="top"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5,664,60,00,000 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Directorate of Revenue Intelligence<br>
<em>Secret Service Expenditure</em> </font></td>
<td valign="top"><div align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115,83,40,000<br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4,02,40,000 </font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Transfer to Customs Welfare Fund</font></td>
<td valign="top"><div align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">291300,000 </font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">National Academy of Customs, Excise and Narcotics (NACEN)<br>
<em>Foreign Travel Expenses </em></font></td>
<td valign="top"><div align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">102,97,00,000<br>
2,50,00,000 </font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Directorate General of Central Excise Intelligence </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
Secret Service Expenditure </font></td>
<td valign="top"><div align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">56,10,00,000<br>
1,10,00,000 </font></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Systems & Data Management </font></td>
<td valign="top"><div align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">565,21,50,000 </font></div></td>
</tr>
<tr>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Direct Taxes </font></strong></td>
<td valign="top"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5,408,56,00,000 </font></strong></div></td>
</tr>
<tr>
<td valign="top"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CESTAT </font></strong></td>
<td valign="top"><div align="right"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">33,72,00,000 </font></strong></div></td>
</tr>
</table>
</div>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><em><font size="3">Pak Model rejected bail in Customs case </font></em></strong></font></p>
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<td><img src="http://www.taxindiaonline.com/RC2/image/stories/DDT_2560_ayyan_ali.jpg" alt="Legal Corner Icon" width="168" height="92" hspace="5" border="0" align="left"></td>
<td valign="top"><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PAKISTANI</strong> super model and actress Ayyan Ali was arrested by Customs at the Benazir International Airport for allegedly trying to smuggle 500,000 dollars cash out of Pakistan. She was sent to 14 days remand by a Customs Court, which rejected her bail application.</font></div></td>
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<p align="left"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></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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