TIOL-DDT 2687 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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 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=23157"><img width="300" hspace="5" height="148" border="0" align="right" src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" /></a></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font><font color="#663399" size="3">TIOL-DDT 2687</font><br />
17 09 2015 <br />
Thursday </strong></font></p>
<p align="center"><font color="#006600"><em><font face="Georgia, Times New Roman, Times, serif"><strong><font size="3">CBEC is GST Ready - Member </font></strong></font></em></font></p>
<p style="text-align: justify;"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YOU</strong> don't believe that GST can come from April 2016, but CBEC Member assumes it will. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Addressing a seminar on ‘<em>GST@2016: Issues & Solutions</em>,' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) yesterday at New Delhi, <em>CBEC Member VS Krishnan</em> said that the Central Board of Excise and Customs (CBEC) is proceeding on GST preparedness on the assumption that the new regime will be implemented from April 1, 2016, according to a Press Release issued by ASSOCHAM.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Member says: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Unlike the direct taxes, indirect tax is a transaction tax. It is not based on a yearly assessment... Theoretically, there is no issue on introducing GST in the middle of the financial year. Unlike Income Tax, which has an assessment year, there is no such year for transaction tax. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Petroleum industry will face all the existing levies by Centre, states till it's brought under Good Service and Tax (GST). Industry will not get credit on additional excise duties paid on petroleum products. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Industry will have to take a view if they want to continue only due to tax exemptions. All exemptions will be phased out over a period of time under GST. Sectoral exemptions will be phased out under GST except infrastructure exemptions like power. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FCFAAD" span="span">• A revenue bonanza awaits India with GST. We have grossly underestimated revenue gains from GST rollout. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• GST model laws likely to be finalized by end of the month; will be placed for public consultation. The State Finance Minister (FM) panel will consider the model GST laws as well. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• Special area exemptions will go and will be replaced by some other system. There's a grand fathering arrangement for exemptions; there's a sunset date. Bringing services under GST will be a major challenge; for the </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#F3DBCF">states it will be a leap in the dark . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• GST will create a level playing field between imports and domestic manufacturing. It's expected that GST rate will be below 26.5%. Currently effective indirect tax rate including VAT is 26.5% and it will be very difficult to cheat under GST; compliance will go up under GST. The Inventory cost of industry will come down under GST. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Mr. Krishnan is due to retire in November 2015.</font></p>
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<td align="center" colspan="2"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Also See : TIOL TUBE Videos on GST</font></strong></td>
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<td width="50%" align="center"><iframe width="300" height="169" frameborder="0" src="https://www.youtube.com/embed/5J6d0GZ30d0" allowfullscreen=""></iframe></td>
<td width="50%" align="center"><iframe width="300" height="169" frameborder="0" src="https://www.youtube.com/embed/zqz_bu0boEs" allowfullscreen=""></iframe></td>
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<td align="center"><strong><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="https://youtu.be/5J6d0GZ30d0">Episode 1 on GST</a></font></strong></td>
<td align="center"><strong><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="https://youtu.be/zqz_bu0boEs">Episode 2 on GST</a></font></strong></td>
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<td align="center"><iframe width="300" height="169" frameborder="0" src="https://www.youtube.com/embed/91CeCwiohN0" allowfullscreen=""></iframe></td>
<td align="center"><iframe width="300" height="169" frameborder="0" src="https://www.youtube.com/embed/87By3dx-B1A" allowfullscreen=""></iframe></td>
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<td align="center"><strong><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="https://youtu.be/91CeCwiohN0">Episode 3 on GST</a></font></strong></td>
<td align="center"><strong><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="https://youtu.be/87By3dx-B1A">Tax manthan -Episode 1</a></font></strong></td>
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<td align="center"><iframe width="300" height="169" frameborder="0" src="https://www.youtube.com/embed/zW_BSPl4nx0" allowfullscreen=""></iframe></td>
<td align="center"><iframe width="300" height="169" frameborder="0" src="https://www.youtube.com/embed/uodjT6y-2OM" allowfullscreen=""></iframe></td>
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<td align="center"><strong><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="https://youtu.be/zW_BSPl4nx0">Episode 4 on GST - Select Committee Report</a></font></strong></td>
<td align="center"><strong><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="https://youtu.be/uodjT6y-2OM">simply inTAXicating - Select Committee Report on GST</a></font></strong></td>
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<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600" size="3">CBDT - Re-fixation of Monetary limits for Dossier Cases </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Manual of Office Procedure of CBDT stipulates, "<em>As a mechanism for monitoring cases with huge arrears, the Assessing Officers are to send quarterly dossiers in respect of cases with arrears exceeding rupees ten lakhs. Dossiers in cases with arrears ranging between 10 lakhs and 1 crore are to be sent to the CCIT. Such reports in cases where arrears exceed rupees one crore are required to be sent to the Directorate of Recovery / CBDT. While reviewing and forwarding the dossier reports, the CCIT/CIT issues directions to the Assessing Officers or the Tax Recovery Officers as the case may be, suggesting further steps required to be taken by them for effecting recovery of the outstanding arrears. The AO/TRO is to execute these instructions during the next quarter and report compliance and results while sending the subsequent report (Annexure-IX)</em>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the CBDT finds itself flooded with about 1,55,000 dossier cases. So CBDT has now enhanced the monetary limits of various officers for monitoring dossier cases. Now Board will deal with only cases involving Rs. 25 crores or more. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg1MzI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Instruction No. 10/2015, Dated: September 16, 2015 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">CBEC - Don't shift Commissionerates without Board's Permission </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC </strong>has found that some Commissionerates are not where they ought to be. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has come to the notice of the Board that some Audit Commissionerates are functioning from the locations at variance with the locations notified in Cadre Restructuring Notifications issued on 16th September, 2014. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since such a situation may create administrative and legal complications, it has been decided with the approval of Chairman, CBEC that the change in the location of the headquarters of the Commissionerates (Audit, Executive or Appeal) should be made only after the approval of the Board. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, Board directs that Principal Chief Commissioner / Chief Commissioner should first obtain the approval of Zonal Member for any proposal for change of location of the headquarters of a Commissionerate (Audit, Executive or Appeal) under their charge. Thereafter, the proposal(s), so approved by the Zonal Member, should be forwarded to the Member (P&V) with a copy to the Office of DG (HRD) for examination. After examination of the proposal(s), DGHRD would submit the same to the Chairman, CBEC, through Member (P&V) for approval. Wherever the proposal has financial implications, necessary approval of lFU to the proposal would also be obtained. After obtaining approval of all the concerned authorities, DGHRD would communicate the decision to the Central Excise Policy Wing of the Board for issue of necessary amendments to the notifications. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg1NDM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Letter in F. No. 8 / B /45/HRD (HRM)/ 2010 (Part IV).,Dated: September 16, 2015 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Supreme Court Round Up - Recent Decisions </font></em></strong></font></p>
<p align="justify"><font size="2" color="#FFFFFF" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#009900" span="span"><strong><em>CENTRAL</em></strong><em> Excise - Valuation - Section 4A - MRP - whether MRP based assessment applies to accessories.</em> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CESTAT had held, "<em>The Commissioner has found that, as a matter of fact, woofer is not a part of Television set and that they are being cleared and sold separately. This was the case, prior to introduction of assessment under Section 4A (MRP). The MRP based assessment is for television set and not for its accessories. Those goods correctly merit valuation under Section 4 of the Central Excise Act. Therefore, this grievance of the revenue is not sustainable.</em>" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Supreme Court observed that these findings are pure findings of fact which were rendered in favour of the assessee. The Court did not find any merit in this appeal. The Revenue appeal is accordingly dismissed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Commissioner of Central Excise Vs Viacom Electronics</em> - <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA2NTA1" target="_blank"><strong>2015-TIOL-202-SC-CX</strong> </a></font></p>
<p align="justify"><font size="2" color="#FFFFFF" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#009900" span="span"><em><u>Customs - Exemption from SAD - Nil rate not applicable if the importer sells the</u> goods from a place located in an area where no tax is chargeable on sale or<u> purchase of goods. No sales tax payable on Pig hair bristles and</u> paint brushes and so no exemption from SAD - CESTAT order set aside</em>. </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification 34/98-Cus., dated 13.06.1998, exemption from SAD has been granted on such goods which the importer sells post importation from a place located in an area where tax is chargeable on sale of goods. In this case, so far as the imported item, viz., pig bristles is concerned, no sales tax, in fact, is charged on the same. This being the case, since no tax is chargeable on the sale of such goods, the said Exemption Notification will therefore, not apply. The Tribunal had held in favour of the assessee in <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2005/2005-TIOL-1664-CESTAT-DEL.htm" target="_blank"><strong>2005-TIOL-1664-CESTAT-DEL</strong></a>. This order of the CESTAT is set aside and the Commissioner's order is restored. Revenue appeal is allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong><em> Commissioner of Customs, Mumbai-I Vs Seiko Brushware India </em>- <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA2NjQ4" target="_blank">2015-TIOL-203-SC-CUS</a>. </strong></font></p>
<p align="justify"><em><font size="2" color="#FFFFFF" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#009900" span="span">Central Excise - Refunds - Unjust Enrichment - Whether Section 11B of the <u>Central Excise Act, as amended, applies to cases where though an</u> order has been passed directing refund, implementation of the order is pending? </font></em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court has answered the question in favour of assessee holding that since the proceedings under the old Section 11B of the Act had attained finality, the amended provision of Section 11B of the Act, in particular, proviso to sub-section (1) shall not apply. In other words, the principle of 'unjust enrichment' which was introduced by way of amendment of Section 11B in the year 1991 shall not be attracted in the instant case as the proceedings under the unamended Section stood finalised with the direction in the application filed under unamended Section 11B of the Act to refund the excise duty that was paid by the respondent/assessee. The High Court has held that merely because implementation of the aforesaid order was pending, in the sense that direction to refund the amount had not been carried out, the authority could not go into the question of unjust enrichment by invoking the proviso to sub-section (1) of Section 11B of the Act that had been introduced by that time by way of amendment in Section 11B of the Act. Therefore, it was not open to the concerned officer, who was only supposed to carry out the implementation of the order, to go into the question as to whether there was any unjust enrichment on the part of the assessee or not. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <em>Commissioner of Central Excise, Tiruchirapalli Vs Dalmia Cement (Bharat) Ltd</em> - <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA2NjQ5" target="_blank">2015-TIOL-204-SC-CX</a>.</strong></font></p>
<p align="justify"><em><font size="2" color="#FFFFFF" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#009900" span="span">ST/CUS/CE- Speed Post is also Registered Post- only difference is charges <u>payable and speed of delivery - Service of notice, orders etc</u>. by Speed post is to be considered as equivalent to service by registered post. </font></em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In - <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTkxMTA=" target="_blank"><strong>2015-TIOL-164-HC-ORISSA-ST</strong></a>, the Orissa High Court held that <em>both in the case of "registered post" as well as "speed post", the articles when delivered to the post offices, receipts thereof are required to be issued and consequently, both "speed post" and "registered post" satisfy the requirement of Section 28 of the Indian Post Office Act, 1898. The only difference between registered post and speed post if at all is the charges payable are normally higher for "speed post" as the name suggests the delivery of such articles at an early date . Consequently, the amending statute is held as "clarificatory amendment" and would have retrospective effect</em>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On 14.09.2015, the Supreme Court dismissed the SLP filed by the party.</font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img width="247" hspace="5" height="252" border="0" align="middle" src="http://www.taxindiaonline.com/RC2/image/stories/ddt_2687_ganesh.jpg" alt="Happy Ganesh Chaturthi" /></font></p>
<p><font color="#663399"><strong><font size="3" face="Verdana, Arial, Helvetica, sans-serif">Happy Ganesh Chaturthi</font></strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></p>
<p><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" target="_blank"><strong>vijaywrite@tiol.in </strong></a></font></p>