TIOL-DDT 2849 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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_book2016.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="270" height="231" hspace="5" border="0" align="right" ></a><strong><font color="#663399" size="3">TIOL-DDT 2849</font><br>
19 05 2016<br>
Thursday</strong></font></p>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><em><font size="3">Service Tax in respect of services provided by arbitral tribunal and members of such tribunal - CBEC Clarifies </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SERVICES</strong> provided by an arbitral tribunal to </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) any person other than a business entity; or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) a business entity with a turnover up to rupees ten lakh in the preceding financial year, </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">are exempt from services tax [Entry 6(a) of Notification No. 25/2012 - ST]. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"arbitral tribunal means a sole arbitrator or a panel of arbitrators"</font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Services provided or agreed to be provided by an arbitral tribunal to a business entity (turnover exceeding Rs 10 lakh) located in the taxable territory, is taxable under reverse charge mechanism and recipient of service is liable to discharge service tax liability [Notification No. 30/3012 - ST (Sl. No. 4)].</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has come to the notice of the Board that there is some confusion regarding the legal position with respect to continuance of reverse charge mechanism for services provided by arbitral tribunals and individual arbitrators of the arbitral tribunal, with effect from 1.4.2016. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board explains: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It could be argued that service provided by an arbitrator on the panel of arbitrators, to the arbitral tribunal is taxable under forward charge. However, this does not appear to be a correct interpretation of law. Any reference in Service Tax law to an "arbitral tribunal" necessarily includes the natural persons on the arbitral tribunal, by virtue of clause (d) of Section 2 of the Arbitration and Conciliation Act, 1996. Services are provided or agreed to be provided by the panel of arbitrators, as comprising the several natural persons on the said panel, to the business entity or to the arbitration institution approached by the business entity for purposes of arbitration. The liability to discharge service tax is on the service recipient, if it is a business entity located in the taxable territory with a turnover exceeding rupees ten lakh in the preceding financial year. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And clarifies:</font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax liability for services provided by an arbitral tribunal (including the individual arbitrators of the tribunal) shall be on the service recipient if it is a business entity located in the taxable territory with a turnover exceeding rupees ten lakh in the preceding financial year . </font></em></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk4OTk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circular No. 193/03/2016-ST, Dated: May 18, 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>Central Excise -Complicated Exemption to RBD Palm Stearin, biodiesel </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Central Government has issued an amending notification - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to exempt excise duty on RBD Palm Stearin, Methanol and Sodium Methoxide for the manufacture of bio-diesel (alkyl ester of long chain fatty acids obtained from vegetable oils, commonly known as biodiesels) on actual user basis for a period upto and inclusive of 31st March, 2017; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to withdraw excise duty exemption on biodiesel with effect from 1st April, 2017; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ to levy 6% excise duty on biodiesel and its inputs namely, RBD Palm Stearin, Methanol and Sodium Methoxide with effect from 1st April, 2017. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is as complicated as it can be. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <em>Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels</em> are exempted by Sl. No. 113 of the table to Notification No. 12/2012-CE, dated 17th March, 2012. Now this exemption will be valid only up to 31st March, 2017. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <em>a. RBD Palm Stearin, Methanol and Sodium Methoxide for use in the manufacture of alkyl esters</em> are exempted by Sl. No 113A. But that was only up to 31 st March 2016. So, this has expired on 1 st April 2016. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. They have reinserted the same exemption as Sl. No. 113B with a condition that the exemption will lapse on 31 st March 2017. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c. These goods will attract a duty of 6% from 1st April 2017 as per the newly inserted Sl. No. 113D of the notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Those boys in TRU must be really brilliant to make and amend such notifications. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk4OTY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 23/2016-Central Excise, Dated: May 17, 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>Central Excise Duty on Gold Jewellery - Lahiri Committee Expanded </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has constituted a Committee under the chairmanship of Dr. Ashok Lahiri to study the issues relating to the recent imposition of excise duty on jewellery including the issues related to compliance procedure for the excise duty, records to be maintained, operating procedures and any other issues that may be relevant. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee consists of </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Mr. Gautam Ray </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Mr. Rohan Shah, Legal expert [Managing Partner, Economic Laws Practice]. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Mr. Shri Manoj Kumar Dwivedi, Joint Secretary [Department of Commerce]. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Mr. Alok Shukla, Joint Secretary [Tax Research Unit, Central Board of Excise and Customs, Department of Revenue]. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the following trade representatives are nominated as members of the Committee: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. Mr. Konal Doshi, past Convener, Jewellery panel, GJEPC; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. Mr. Ashok Minawala, past Chairman, AIGJF, and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii. Mr. Fatehchand Ranka, Chairman, All India Action Committee on Jewellery, AIACJ </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk4OTg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 1030/18/2016-CX, Dated: May 18, 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 -HAL Exemption Withdrawn </font></em></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMEN</strong>T has amended Notification No. 39/96- Customs, dated the 23rd July, 1996 to withdraw the following exemptions: </font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
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<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description </font></strong></div></td>
<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Conditions </font></strong></div></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Paints, consumables (adhesives, glues, resins, additives, sealants, pigments, etc.), metallic (ferrous and non-ferrous) and non-metallic (composite reinforced fiber, wood, carbon fiber, glass fiber, Rubber, etc.) materials in any form and articles thereof, conforming to aeronautical specification accompanied with certificate of conformance/release note/airworthiness certificate for development </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the said goods conform to aircraft and aero-space specifications; </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the said goods are imported for use in the manufacture of aircrafts </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">capital equipment required for setting up of facilities for manufacture of SU-30 MKI aircraft </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If imported by M/S Hindustan Aeronautics Limited (HAL). </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">23 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Capital equipment required for setting up of facilities for manufacture of compressor / turbine blades for AN-32 transport aircraft ,Mi-8 and Mi-17 helicopter. </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If imported by M/S Hindustan Aeronautics Limited (HAL). </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Machinery, equipment, instruments, components, spares, jigs and fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the purpose of DHANUSH Programme of the Ministry of Defence. </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the said goods are imported by work centres of the DHANUSH Programme, Government agencies or public sector undertakings </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Machinery, equipment, instruments, components and spares the of, tools, accessories, computer software, mock-ups and models required for the maufacture or repair or overhaul of Advanced Jet Trainer (HAWK- 115 Y) and Adour Mark 871-07 engines. </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If imported by M/S Hindustan Aeronautics Limited (HAL). </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">28 </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Capital equipment required for setting up of facilities for manufacture of Intermediate Jet Trainers (HJT-36) and its engines and other accessories required for these aircrafts. </font></td>
<td valign="top"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If imported by M/S Hindustan Aeronautics Limited (HAL). </font></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk4OTU=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.33/2016-Customs., Dated May 17, 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>Provisional Anti Dumping Duty on Seamless tubes, pipes from China </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </strong>has imposed provisional anti dumping duty on Seamless tubes, pipes and hollow profiles of iron, alloy or non-alloy steel (other than cast iron and stainless steel), whether hot finished or cold drawn or cold rolled of an external diameter not exceeding 355.6 mm or 14" OD, falling under heading 7304 of the First Schedule to the Customs Tariff Act, originating in, or exported from the People's Republic of China.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anti-dumping duty is effective for a period not exceeding six months. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk4OTc=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.18/2016-CUSTOMS (ADD)., Dated May 17, 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>FTP -Import of Textiles - Exemption from Testing </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IMPORT of textile and textile articles is permitted subject to the condition that they shall not contain any of the hazardous dyes whose handling, production, carriage or use is prohibited by the Government of India under the provisions of clause (d) of subsection (2) of Section 6 of the Environment (Protection) Act, 1986 (29 of 1986) read with the relevant rule(s) framed thereunder. For this purpose, the import consignments shall be accompanied by a pre-shipment certificate from a textile testing laboratory accredited to the National Accreditation Agency of the Country of Origin. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In cases where such certificates are not available, the consignment will be cleared after getting a sample of the imported consignment tested & certified. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the above procedure regarding testing of Textiles and Textile Articles for presence of Azo Dyes, will not be applicable for imports originating from the countries as listed in Appendix-2X, where the use of Azo Dyes in Textiles and Textile Articles is banned. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The countries listed in the Appendix are: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. European Union (EU) Countries ii. Serbia iii. Poland iv. Denmark v. China </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the following countries are added to the list: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi. Australia; vii. Canada; viii. Japan and ix. South Korea. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk5MDE=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 10/2015-20., Dated May 18, 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="f6"></a>FTP -Export Policy for Edible Oils - Rice Bran Oil </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXPORT </strong>of edible oils is prohibited. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rice Bran oil in bulk, irrespective of any pack size is now exempted from this prohibition. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk5MDI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No.8/2015-20., Dated: May 8, 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="f7"></a>Obey the CIC - CBDT </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has been brought to the notice of the Board by Registrar, Central Information Commission, New Delhi that in certain cases, orders passed by the CIC are not being complied with by the Income Tax Department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CIC have raised a concern that such non-compliance of orders passed by the Commission by one public authority will only embolden others to act in a similar manner, which will damage the effectiveness and image of the Commission. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the fact that the orders of CIC are binding under the RTI Act, 2005 unless stayed or reversed by higher courts, Board wants all the concerned authorities/officers/CPIOs to ensure that the orders passed by CIC in appeals and complaints under the RTI Act, 2005 are invariably complied with within the time fixed by the Commission. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any deviation will be viewed adversely - means what? </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk5MDA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Letter in FTS -300294447/2016., Dated: May 17, 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="f8"></a>Standing Officers of Customs - Kissa Kursi Ka </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT'S</strong> the story of Chairs for Customs officers - On 13th May 2016 (a day after the dated video of a Customs officer demanding a bribe went viral on social media - see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=27008" target="_blank"><strong>DDT 2846</strong></a>), the chairs for the Customs officers of Mumbai's CSI airport were removed and they were asked to attend to their duties standing. This created a furore and a sort of standoff between the Customs Chief Commissioner and the protesting superintendents. The Superintendents refused to sit during a discussion with the Chief Commissioner. They discussed with him - standing. By 17th May, the standing officers were given back their chairs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But why were the chairs removed? It is alleged that it was the Chief Commissioner's way of punishing the Superintendents for checking a friend of his, who is a Customs broker. Anyway, the chairs are back and the Superintendents are back to their seats but this ill-will between the top boss and his Superintendents could have been avoided. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">Should the Customs Officers sit when there is no chair for the passenger? </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be surprising, but there was a time when the Customs Inspectors and Superintendents checking the baggage of air passengers were not actually allowed to sit - there were no chairs for them in the arrival hall. The idea was that when the passenger, a citizen who is your master is standing before you, it was disrespectful for you as the servant to sit. So, Customs officers happily and courteously stood up while the passenger was being cleared. Over a period of time, this concept of respect for the master-citizen waned and ultimately vanished, with nobody giving a damn for the citizen. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An Inspector will not sit when an Assistant Commissioner is standing before him, but he would have no qualms of making a citizen stand before him. And this citizen is the one for whom even the President of India is a servant! Once you realise that the one standing before you is higher in rank than the President of India, it will be absolutely fine if you don't have a chair. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But then, why can't there be a chair for the passenger too? </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 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" target="_blank"><strong>vijaywrite@tiol.in</strong> </a></font></p>
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