TIOL-DDT 2792 · 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> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a> <p><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2792 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> 23 02 2016 <br> Tuesday </font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Service Tax - Refund - Software exporters' woes continue - Department's appeal in High Court allowed and matter remanded</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN </strong>the software exporters started filing refund claims of unutilized CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004, department did everything it could to reject the claims. Some of the grounds for rejection were - the output service exported is not taxable, there is no nexus between the input service and the output service, the claims are barred by limitation etc. So almost all the exporters got notices and the claims were rejected. When the matter reached the Tribunal, considering the long list of appeals, the Tribunal passed a detailed order on common issues involved vide Interim Order <strong><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTYzOTc=" target="_blank">2014-TIOL-1836-CESTAT-BANG</a></strong>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Based on the findings of the Interim Order, the Tribunal disposed of an appeal finally (one among the 192) and the Department filed appeal against this final order of Tribunal on the ground that the practice followed by the Tribunal (of passing an Interim order and relying on the same in final order) is unknown in the field of law. The High Court agreed with the objection by the department and remanded the matter to the Tribunal with a direction to pass a speaking order. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, perhaps the Tribunal has to reproduce all the relevant findings from the Interim Order and pass a speaking order. There are nearly 192 appeals and the process may consume some tons of paper and considering the cost of dispatch and the time of Tribunal, finally the revenue may end up spending more money than it gained in the process. Why can't the department gracefully accept the order of Tribunal and allow refunds? Do they think that 192 software exporters, including the likes of Microsoft and Infosys indulge in claiming unlawful refund claims? If the practice followed by the Tribunal is unheard of, so is the attitude of the department towards the exporters. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue has won on a technical point of law, but has lost badly on its avowed policy of "<em>ease of doing business."</em> </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26161" target="_blank">Breaking News </a></font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">No Sensitive Posting for more than three years - CBEC </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> reiterates that postings and transfers of all officers/officials are required to be done as per the guidelines on the subject and no one should continue to hold posts declared as sensitive for more than 3 years. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC wants a quarterly report from all the Cadre Controlling Authorities confirming that all transfers/postings have been done as per guidelines and exceptions to this should be brought to the notice of the Board without fail. The report for the quarter October 2015-December 2015 be sent to the Board by 26.02.2016. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkyMzk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No. C 30013/79/201S-Ad.IVA., Dated, February 17, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Settle Medical Claims of Employees Promptly - CBEC Exhorts Field </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has observed that in a number of cases there has been undue delay in processing and settlement of medical reimbursement claims by the field formations. This has resulted in the Courts/CAT passing orders upon the Department for payment of interest on delayed payment of medical reimbursement claims. </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFD7AE" span="span">This has been viewed seriously by the Board. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board, therefore, directs: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. that medical claims should be settled in a time-bound manner </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFD7AE" span="span">so that court cases/orders for payment of interest due to delay in settlement of medical claims are avoided in future. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. responsibility for such delays will have to be fixed on the </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFD7AE" span="span"><strong>concerned </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">officers. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please note that the Board wants the medical claims to be settled promptly, not because a sick employee suffers, not because an employee who has spent large amounts of money on medical treatment and who doesn't get his bills settled by his own colleague babus and bosses will be physically, fiscally and mentally broke, not because the Government red tape is a noose around the poor employee, <strong>but because there would be court cases</strong>! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board also wants responsibility to be fixed on the concerned officers. If the officer concerned was really concerned, there would have been no delay in settling the medical claim. He would have seen a life behind the file. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkyMzc=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No.C-18013/18/2015-Ad.IV A., Dated: February 19, 2016</font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Anti Dumping Duty on Fully Drawn or Fully Oriented Yarn - Government corrects a mistake </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PROVISIONAL </strong>Anti dumping duty was imposed on All Fully Drawn or Fully Oriented Yarn/Spin Draw Yarn/Flat Yarn of Polyester (non-textured and non-POY) falling under sub-heading <font color="#FF0000"><strong>5402 47 00</strong></font> of the First Schedule to the Customs Tariff Act, originating in, or exported from, the People's Republic of China, Thailand and Vietnam, by Notification No. 29/2009-Cus., dated 26-3-2009. This anti dumping duty continued through different notifications and in the latest notification - No. <a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2Nzg=" target="_blank"><strong>51/2015-Customs (ADD)</strong>,</a> dated the 21st October, 2015, the tariff sub heading was shown as 5402 instead of <font color="#FF0000">5402 47 00</font>. Now they have amended it to <font color="#FF0000">5402 47</font>. They have still left out the last two 00s. Maybe they will add it in another amendment. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkyMzg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.05/2016-Customs (ADD), Dated: February 22, 2016 </font></strong></a></p> <p align="center"><font face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600" size="3">Cadbury's Indian Excise Order draws Notice from US SEC </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>its Annual Report submitted to the United States Securities and Exchange Commission (SEC) on 19th February 2016, Mondelez International, Inc. stated: </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In February 2013 and March 2014, Cadbury India Limited (now known as Mondelez India Foods Private Limited), a subsidiary of Mondelez International, and other parties received show cause notices from the Indian Central Excise Authority (the "Excise Authority") calling upon the parties to demonstrate why the Excise Authority should not collect a total of 3.7 billion Indian rupees (approximately $57 million U.S. dollars as of December 31, 2015) of unpaid excise tax and an equivalent amount of penalties, as well as interest, related to production at the same Indian facility. We contested these demands for unpaid excise taxes, penalties and interest. On March 27, 2015, after several hearings, the Commissioner of the Excise Authority issued an order denying the excise exemption that we claimed for the Indian facility and confirming the Excise Authority's demands for total taxes and penalties in the amount of 5.8 billion Indian rupees (approximately $88 million U.S. dollars as of December 31, 2015). We have appealed this order. In addition, the Excise Authority issued additional show cause notices on February 6, 2015 and December 8, 2015 on the same issue but covering the periods January to October 2014 and November 2014 to September 2015, respectively. These notices added a total of 2.4 billion Indian rupees (approximately $36 million U.S. dollars as of December 31, 2015) of unpaid excise taxes as well as penalties to be determined up to an amount equivalent to that claimed by the Excise Authority and interest. We believe that the decision to claim the excise tax benefit is valid and we are continuing to contest the show cause notices through the administrative and judicial process. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On February 11, 2016, we received a "Wells" notice from the SEC indicating that the staff has made a preliminary determination to recommend that the SEC file an enforcement action against us for violations of the books and records and internal controls provisions of the Exchange Act in connection with the investigation. We intend to make a submission to the staff of the SEC in response to the notice. </font></em></p> </blockquote> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The 'Wells Notice': </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A ‘Wells Notice' is a communication from the staff to a person involved in an investigation that: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) informs the person the staff has made a preliminary determination to recommend that the Commission file an action or institute a proceeding against them; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) identifies the securities law violations that the staff has preliminarily determined to include in the recommendation; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) provides notice that the person may make a submission to the Division and the Commission concerning the proposed recommendation. </font></p> </blockquote> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Revenue Wings that could not spend money given to them </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SEVERAL</strong> wings of the Revenue Department could not spend the budget amounts charged and voted by Parliament for them, thereby saving substantial amounts of money to the Government in 2014-15. One major reason that the offices could not spend the money and the Government could save was ‘non-filling' up of vacant posts. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. "<em>Directorate of Revenue Intelligence</em>" - saving of Rs. 439.88 lakhs (against the sanctioned provision of Rs. 9499.70 lakhs) was due to non-filling up of vacant posts, delay in purchase of office equipments and non finalization of foreign tours. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <em>"Inspection"</em> - saving of Rs.396.75 lakhs (against the sanctioned provision of Rs.4599.30 lakhs) was due to non-filling up of vacant posts, non-finalization of proposals for rent revision in respect of hired office buildings and requirement of less funds towards purchase of computers and economy measures. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <em>"National Academy of Customs, Excise and Narcotics" </em>- saving of Rs.960.81 lakhs (against the sanctioned provision of Rs.7999.00 lakhs) was due to non filling up of vacant posts, non-finalization of tour programme of Probationers and economy measures. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. <em>"Directorate of Publicity and Public Relations (Customs and Central Excise)"</em> - - saving of Rs.237.39 lakhs (against the sanctioned provision of Rs.4981.50 lakhs) was due to non-clearance of pending bills towards advertisement and publicity. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. "Directorate General of Central Excise Intelligence" - saving of Rs.621.23 lakhs (against the sanctioned provision of Rs.4819.00 lakhs) was due to non-filling up of vacant posts and economy measures. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. "<em>Systems and Data Management</em>" - saving of Rs.2243.40 lakhs (against the sanctioned provision of Rs.20600.50 lakhs) was due to non-filling up of vacant posts, non-completion of milestones by the service provider, less domestic tours and economy measures. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. "<em>Commissionerates</em>"- saving of Rs.44842.83 lakhs (against the sanctioned provision of Rs.294350.55 lakhs) was due to non-filling up of vacant posts, non-completion of milestones by the service providers, non revision of rent, less domestic tours, receipt of less medical claims and non-finalization of proposals for rent revision in respect of hired office buildings. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. "<em>Customs, Excise and Service Tax Appellate Tribunal</em>"- saving of Rs.147.87 lakhs (against the sanctioned provision of Rs.2405.00 lakhs) was due to non- filling up of vacant posts and requirement of less funds towards electricity, petrol, rent and equipments. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. "<em>Special Purpose Vehicle for Goods and Service Tax Network (GSTN) - Grants to GSTN: SPV</em>"- saving of Rs.8074.34 lakhs (against the sanctioned provision of Rs.10000.00 lakhs) was due to requirement of less funds by GSTN:SPV based on planned activities to be undertaken. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government did rather well with all those vacant posts - we should continue to keep them vacant. Less Government! </font></p> <p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">(Source: Appropriation Accounts of the Government of India for 2014-15, published by the Controller General of Accounts.) </font></em></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Budget Session Today </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Budget Session of Parliament starts today. University Politics is likely to dominate the session more than National Economics.</font></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"><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> </body> </html>