TIOL-DDT 2825 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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><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><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2825 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
12 04 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 on Senior Advocates - Reaching the Supreme Court </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SENIOR</strong> Advocates are required to pay the Service Tax themselves under the forward charge system with effect from 1.4.2016. At least three High Courts have stayed the tax on the senior advocates. In <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjY2NDE=" target="_blank"><strong>DDT 2820
05 04 2016</strong></a>, we asked, "<em>Now, should each High Court stay these provisions? Can't we take the issue to the Supreme Court</em>?"</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And that is exactly what the CBEC has done. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a letter to the Chief Commissioners, the Board states, "<em>Delhi, Gujarat & Calcutta High Courts have stayed the levy of service tax on legal services provided by Senior Advocates. The Chairman CBEC has directed to engage the services of the Ld. Attorney General to get the stays vacated by moving the Hon'ble Supreme Court and requesting for aggregating the petitions filed in various courts in the country in this subject.</em>" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has asked the Chief Commissioners to send to the Board the relevant documents involving the issue in their zones pending in the High Courts so that Transfer Petitions can be filed before the Supreme Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Attorney General himself is a 'Senior Advocate' and the Board's Budget exercises have made him also liable to the rigours of Service Tax Law. He has to now argue in the Supreme Court that he and several other senior advocates have been made liable to pay Service Tax under the forward charge system in public interest and it is absolutely legal. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If he wins the case, he loses as it will adversely affect him personally. If he loses, he personally wins, but his client (Union of India) loses, which is not all that good for a lawyer. A really difficult situation for a lawyer! What will the Board do if the Attorney General advises them that they have no case? Can they hire another lawyer? </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1MzE=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No. 276/91/2016-CX.8A., Dated April 11, 2016 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f1"></a>What is e-commerce? </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has inserted a new para 9.17A in the Foreign Trade Policy 2015-2020 to define <em>e-commerce</em>. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF0000">e-commerce</font> means buying and selling of goods and services, including digital products, conducted over digital and electronic network. For the purposes of Merchandise Exports from India Scheme (MEIS) e-commerce shall mean the export of goods hosted on a website accessible through the internet to a purchaser. While the dispatch of goods shall be made through courier or postal mode, as specified under the MEIS, the payment for goods purchased on e-commerce platform shall be done through international credit/debit cards and as per the Reserve Bank of India Circular (RBI/2015-16/185) [AP. (DIR Series)<strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg1NjA=" target="_blank"> Circular No.16</a></strong> dated September 24, 2015] as amended from time to time. </font></em></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1MzI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 2/2015-2020., Dated April 11, 2016 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f2"></a>Clarification regarding Waste Oil - Demand only within normal limitation period </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VARIOUS</strong> units are engaged in re-refining of waste oil or used lubricating oil collected from the transformers, service stations of vehicles etc. A doubt has arisen on the excisability of re-refined used oil or waste oil. Used Oil contains impurities and contaminants such as moisture, diluents, sediments, metal particles and carbon. In refining units, waste or used oil undergoes various process such as dehydration-for removal of moisture, distillation-for removal of diluents, clay polishing- for removal of carbon by adsorption process, filtration-for removal of the clay and the dissolved carbon to render it usable. The oil so obtained from such waste or used oil is packed and sold as base oil, lubricating oil and transformer oil etc. to the consumers for further use. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter note 4 of chapter 27 is a deeming fiction on manufacture and provides that:- </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"In relation to the <u>lubricating oils and lubricating preparations of heading 2710</u>, labelling or re-labelling of containers and re-packing from bulk pack to retail packs or the adoption of any other treatment to render the product marketable to the consumers, shall amount to manufacture"</font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board clarifies that for a re-refining unit, the test for levy of Central Excise duty is whether the lubricating oil (produced from the waste oil) has undergone any of the process listed in chapter note 4 of chapter 27. Where such process has been carried out, it would amount to manufacture and Central Excise duty would be leviable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has further given a very important clarification in tune with its ‘ease of doing business' initiatives - <em>The issue is interpretational in nature and therefore where a demand is raised pursuant to this circular, it should be raised for normal period of limitations only. SSI benefit, where admissible, should be extended.</em> </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1Mjg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 1024/12/2016-CX., Dated: April 11, 2016 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f3"></a>Courier Agencies abroad refusing to book gift consignments to India due to Customs Embargo </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has received representations regarding problems faced by Indians abroad who wish to send gift items to India by means of courier. It seems that courier agencies abroad are refusing to book <em>bona fide</em> <em>gift</em> consignments for export to India citing non-clearance and embargo imposed on such gift-parcels by Indian Customs. Board wants any such incidence to be brought to its notice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board advises the Chief Commissioners that the existing instructions on import of <em>bona fide</em> gift items through Post/Courier should be scrupulously followed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Only yesterday, DDT praised the Board to the skies for a precise and clear circular. Here is a circular which is typical of instructions from the top - as vague as possible. Board wants extant instructions to be followed; they don't say what those <strong>extant instructions</strong> are. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1MzA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Instructions in F.No.450/179/2015-Cus.IV., Dated: April 11, 2016 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f4"></a>Pre-deposit by Non-Assessees - ?? </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>very senior and respected advocate practicing indirect taxes mailed me: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>One of the main problems faced by the Appellants is with regard to the Mandatory Deposit (7.5% or 10% as the case may be) required to be made in terms of Sec 35F of the Central Excise act 1944. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the case of Appellants <strong>who are not Central Excise Assessees</strong> from whom duty is demanded for the first time due to a classification dispute or in cases where a penalty is imposed on a person who is not an Assessee, they are not able to deposit the Mandatory Deposit (7.5% or 10% as the case may be) online in a Notified Bank for want of a Head of Account or Accounting code for depositing the said amount. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier this problem was not there, because such deposits were made under TR-6/GAR Challans in a Notified Bank. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Enquires made by the Appellants in different Commissionerates were unable to get any guidance from the Commissionerates concerned, as to how the said deposit is required to be made. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Could you give some guidance or throw some light in the DDT Column which would help the Appellants and the procedure that is required to be followed for making such Mandatory Deposits in Notified Banks? </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Alternately would you be good enough to highlight this problem through your column (DDT) in you esteemed website, so that necessary instructions would be given by the CBEC? </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He also informed me that no officer in the department from Superintendent to Chief Commissioner was able to offer any solution. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I brought to his notice the provisions in CBEC Circular No. 919/09/2010-CX, dated March 23, 2010 and Circular No. 956/17/2011-CX, dated: September 28, 2011.</font></p>
<blockquote>
<p align="justify"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Non-Assessee </font></em></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>1. This category of registration is given in ACES to any individual, firm or company which requires to transact with the Central Excise or Service Tax Department, though not an assessee such as </em></font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) merchant exporter, </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) co-noticee, </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) refund applicant, </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) persons who have failed to obtain CE/ST registration as required under the law and against whom the Department has initiated proceedings and </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) persons who are required to tender any payment under CE/ST Act /Rules. The Non-Assessees are not required to file any tax returns. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>xxx </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xxxxx </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. A Non-Assessee registration can also be done by the designated officer of the Commissionerate, on behalf of the Non-Assessee. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The senior advocate wrote back to me: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Thanks for giving me the reference of CBEC Circular dated 23.3.2010, which has been updated on 28.9.2011. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a separate Para 3(C) which deals with Non-Assesses. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though it is complicated to a person who is not familiar with operating and uploading E- Documents through the computer, still it solves the problem. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I am grateful to you for educating me. </font></em></p>
<p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">I wish the Departmental Officers will also familiarize themselves with the procedure so that they can guide the Assessees and Non- Assessees. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the Board Circulars,<em> Non-Assessee registration can also be done by the designated officer of the Commissionerate, on behalf of the Non-Assessee., </em>but the officers in the Commissionerates are not even aware of a concept called <em>Non-Assessee registration</em>. How will they do the registration? How will they assist the assessee? And how will these people administer GST? </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Please also see</em></strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23277" target="_blank"><strong>Reconciling mandatory pre-deposit and mandatory e-payment</strong> </a></font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f5"></a>Attack on CBI Officers -Habeas Corpus in High Court? </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is reported that two habeas corpus petitions have been filed in the Madurai Bench of the Madras High Court accusing the police of keeping in illegal custody the wives of two accused Central Excise officials. </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"><strong>vijaywrite@tiol.in </strong></a></font></p>
</body>
</html>