TIOL-DDT 2833 · 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 2833</font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <br> 27 04 2016 <br> Wednesday</font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Recall ‘Call Book' - CBEC to Field </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHAT is a Call Book?</strong> It is the Central Excise Department's dumping yard. When they cannot decide an issue, it is thrown into the call book, almost never to be recalled. There are several Show cause Notices which are not decided and thrown into the call book. The CAG and the PAC have been concerned with the bulging call books. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In, <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/1995/excircular162.htm" target="_blank"><strong>Circular No. 162/73/95-CX.3, dated 14.12.95</strong></a>, the CBEC specified the following categories of cases which can be transferred to call book:- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Cases in which the Department has gone in appeal to the appropriate authority. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Cases where injunction has been issued by Supreme Court/ High Court/ CESTAT etc., </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Cases where audit objections are contested. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Cases where the Board has specifically ordered the same to be kept pending and to be entered into the call book. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Board wants the following cases to be taken out of the Call Book and adjudicated: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The issue involved has either been decided by the Supreme Court or High Court and such order of the High Court has attained finality or, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Board has issued new instruction or circular clarifying the issue involved, subsequent to issue of the order to transfer the case to the Call Book. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A separate direction to take such cases out of the Call Book should not be awaited from the Board. This clarification applies to cases involving Central Excise duty, Customs duty and Service Tax. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also read the genesis <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjM2MjA=" target="_blank"><strong>Call Book - Past, Present and Future</strong>. </a></font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/excircular.htm" target="_blank">CBEC Circular No. 1028/16/2016-CX , Dated: April 26, 2016</a></font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f1"></a>Income Tax - Payment of interest on refund of excess TDS - CBDT Clarifies </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong> issue of eligibility for interest on refund of excess TDS to a tax deductor has been a subject matter of controversy and litigation. The Supreme Court of India in the case of <em>Tata Chemical Limited</em> <strong><em>(<a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTI2ODk=" target="_blank">2014-TIOL-27-SC-IT</a>)</em></strong>, held that, "<em>Refund due and payable to the assessee is debt-owed and payable by the Revenue. The Government, there being no express statutory provision for payment of interest on the refund of excess amount/tax collected by the Revenue, cannot shrug off its apparent obligation to reimburse the deductors lawful monies with the accrued interest for the period of undue retention of such monies. The State having received the money without right, and having retained and used it, is bound to make the party good, just as an individual would be under like circumstances. The obligation to refund money received and retained without right implies and carries with it the right to interest.</em>"</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT clarifies that "<em>in view of the above judgment of the Apex Court it is settled that if a resident deductor is entitled for the refund of tax deposited under Section 195 of the Act, then it has to be refunded with interest under section 244A of the Act, from the date of payment of such tax."</em> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, Board advises that <em>no appeals may henceforth be filed on this ground by the officers of the department and appeals already filed on this issue may not be pressed upon</em>. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/itcir.htm" target="_blank">CBDT Circular No. 11/2016, Dated: April 26, 2016</a></font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f2"></a>Income Tax - Limitation for Penalty Proceedings - CBDT takes a 'Departmental view'</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> seems there are conflicting interpretations of various High Courts on the issue whether the limitation for imposition of penalty under sections 271D and 271E of the Income Tax Act commences at the level of the Assessing Officer (below the rank of Joint Commissioner of Income Tax.) or at level of the Range authority i.e. the Joint Commissioner of Income Tax./Addl. Commissioner of Income Tax. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some High Courts have held that the limitation commences at the level of the authority competent to impose the penalty i.e. Range Head while others have held that even though the Assessing Officer is not competent to impose the penalty, the limitation commences at the level of the Assessing Officer where the Assessing Officer has issued show cause notice or referred to the initiation of proceedings in assessment order. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, CBDT is of the view that for the sake of clarity and uniformity, the conflict needs to be resolved by way of a "Departmental View". </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kerala High Court in the case of <em>Grihalaxmi Vision v. Addl. Commissioner of Income Tax- <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA2MDU1" target="_blank"><strong>2015-TIOL-1977-HC-KERALA-IT</strong></a>, observed that, "Question to be considered is whether proceedings for levy of penalty, are initiated, with the passing of the order of assessment by the Assessing Officer or whether such proceedings have commenced with the issuance of the notice issued by the Joint Commissioner. From statutory provision, it is clear that the competent authority to levy penalty being the Joint Commissioner, therefore, only the Joint Commissioner can initiate proceedings for levy of penalty. The initiation of the penalty proceedings is only with the issuance of the notice issued by the Joint Commissioner to the assessee to which he has filed his reply." </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board states that the above judgment reflects the "Departmental View". Board fairly clarifies that if <em>any High Court decides this issue contrary to the "Departmental View'', the ''Departmental View" thereon shall not be operative in the area falling in the jurisdiction of the relevant High Court</em>. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1ODI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Circular No. 09/2016., Dated: April 26, 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>Customs/Excise - Simplified procedure for units engaged in Maintenance, Repair and Overhaul of aircrafts</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Sl. No. 448 of the Table to Notification No. 12/2012-Cus dated 17.03.2012, <em>Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft and parts thereof falling under heading 8802 by the units engaged in such activities are exempted subject to the condition that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996.)</em>. Now this condition is deleted, but the following conditions are to be followed. </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(A) imported by units approved by Director General of Civil Aviation (DGCA) in the Ministry of Civil Aviation, for maintenance, repair, or overhauling of- </font></em></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(a) aircraft registered in India; or </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) aircraft not registered in India, which are brought into India for the purpose of flight to or across India, or for the purpose of maintenance, repair or overhauling and which are intended to be removed from India within six months or for such periods as extended by the DGCA, as the case may be; </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(B) the importer submits documents duly certified by the DGCA approved Quality Managers of aircraft maintenance organisations indicating such parts, testing equipment, tools and tool-kits; </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(C) the importer maintains a proper account of import, use and consumption of the specified goods imported for the purpose of maintenance, repair or overhauling of aircrafts and submits such account periodically to the Commissioner of Customs in such manner as may be specified by the said Commissioner; </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(D) the importer, by the execution of bond, in such form and for such sum as may be specified by the said Commissioner, binds himself to pay on demand an amount equal to the duty leviable,- </font></em></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) on parts, tools and tool kits as are not proved to the satisfaction of the said Commissioner to have been used or consumed for the aforesaid purpose; </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) on the testing equipment, as are not proved to the satisfaction of the said Commissioner to have been installed or otherwise used for the aforesaid purposes, within a period of three years from the date of importation thereof or within such extended period as that Commissioner, on being satisfied that there is sufficient cause for not installing, using or consuming as the case may be, for the aforesaid purposes within the said period, allow."</font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a similar exemption in Central Excise vide Sl. No. 305 of Notification No. 12/2012-CE, dated 17.03.2012 where also similar amendment is made. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1ODk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 29/2016-Customs., Dated : April 26, 2016 </font></strong></a></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1OTE=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 19/2016-Central Excise., Dated: April 26, 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>Handling of Court/CAT cases - CBEC Instructions </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has come to the notice of the Board that in a number of cases where O.As/WPs/SLPS were filed before the Courts/CATs against the Departments, there have been inordinate delays in filing Counter replies especially in those cases where the jurisdictional CCs/DGs have not been made respondents. This has led to adverse orders and indictments from the Courts/Tribunal and imposition of fines on the department. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board sadly states, "<em>Instructions have been issued by the Board from time to time for handling of court matters. However, it has been observed that these instructions have not been adhered to by many of zonal offices under CBEC</em>." </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board reiterates that appropriate action should be taken in time for preparation and filing of counter reply to court cases so as to avoid adverse orders and indictment from the courts. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is the Board trying to lord over a thoroughly disobedient workforce?</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1OTA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Letter in No. C-18013/08/2015-Ad.IVA., Dated: April 22 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="f5"></a>Anti Dumping Duty on Synchronous Digital Hierarchy Transmission Equipment </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </strong>has imposed definitive anti dumping duty on Synchronous Digital Hierarchy Transmission Equipment originating in or exported from People's Republic of China and Israel. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk1ODg=" target="_blank"><font size="3" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2">Notification No. No. 15/2016-Customs (ADD)., Dated: April 26 2016 </font></strong></font></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f6"></a>Former Railway Board Member Convicted by CBI Court </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> former Member of the Railway Board was convicted by a CBI Court in Chennai to two years rigorous imprisonment. He retired from the Board in 2000, which means he is 76 years old now. The case refers to a contract he awarded in 1995, while working as General Manager of Southern Railway at Chennai. </font></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><a name="f7"></a>Is ACES Working? </em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> last date for filing Service Tax returns has been extended to 29th April 2016, but is the ACES working now for the assessees to file the returns? </font></p> <p align="justify"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_2833.jpg" alt="Legal Corner Icon" width="300" height="175" hspace="5" border="0" align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An angry assessee asked us, "what is the use in extending the date when the site cannot handle traffic?" He sent us the above screenshot. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another assessee told us that after trying for hours, he could successfully file one of his two returns. He will again try today. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We asked Ms. Bhagya Devi, ADG, Systems. She replied, </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>We are Monitoring every hour and there appears to be no problem. The fact that we have received 61484 returns till now goes to prove that.</em></font></p> <p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tax payers are able to file it. If there are issues they may be guided to the service desk or to send a mail to ADG systems.</font></em></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> </body> </html>