TIOL-DDT 2968 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26988"><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="252" height="220" hspace="5" border="0" align="right" ></a></font><font color="#663399" size="3">TIOL-DDT 2968</font><br>
10 11 2016<br>
Thursday</strong></font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Passing of quality orders by Commissioners(Appeals) - CBEC Instructions</font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Revenue Secretary is concerned:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The pendency of cases with Commissioner (Appeals) was reviewed wherein it was observed that the success rate of revenue at the stage of Commissioner (Appeals) is very low. One of the major reasons for this low success rate appears to be the blatantly pro-revenue orders passed by the Commissioner (Appeals). Revenue Secretary has expressed his concern as such a situation leads to unnecessary and frivolous litigation before higher fora.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC instructs:</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. All Commissioner (Appeals) who are performing the role of quasi-judicial authorities need to be sensitive in discharging their duties and expected to pass judicious and quality orders which can stand scrutiny of law before the higher fora.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. They should not pass orders in a routine manner especially when legal points involved in a case are well settled and there is a strong possibility of order passed by them getting reversed/rejected by the higher forum.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. They need to desist from passing frivolous orders and must keep in mind that their role is not only to decide the cases pending before them expeditiously but also to ensure that the orders passed are judicious based on sound principles of law, which can stand scrutiny of the Tribunal/Courts.</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board adds, <em>"This would also be in tune with Govt.'s intentions reflected in the National Litigation Policy, which envisages curb on unwanted litigation."</em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But is this applicable only to appellate commissioners and not other adjudicating authorities?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In spite of Board's repeated instructions, the quality of adjudication in the field is ridiculously low. As even the Board notes, blatant bias in favour of Revenue has made the whole adjudication process a farce leaving assessees with absolutely no confidence that he would get justice in the hands of these officers. The Tribunal has become the first stage of hope for any reasonable adjudication and the departmental channels are treated only as unavoidable to get to the tribunal. Recently DDT came across an order passed by a ld Commissioner (Appeals), who mistook the period of dispute as 2010-13 instead of 2012-13 (normal period) and he expressed surprise as to why the lower authority let off the assessee with Rule 25 penalty instead of penalty under Sec 11AC and proceeded to record the usual suppression findings against the assessee. The assessee suppressed facts because the Commissioner (Appeals) imagined the demand to be under extended period! </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3NTQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Instruction in F.No.275/32/2016-CX.8A., Dated: November 01, 2016</font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f1"></a>Service Tax - 'online information and database access or retrieval services' </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</STRONG> has made several changes with regard to the Service Tax on <em>"online information and database access or retrieval services"</em>: </font></p>
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<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Place of Provision of Services Rules, 2012: <a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3NDk=" target="_blank">Notification No. 46/2016-ST., Dated: November 09 2016</a></font></strong></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. amends the definition of provision of 'online information and database access or retrieval services' with effect from 01.12.1016. <em>"online information and database access or retrieval services"</em> has the same meaning as assigned to it in clause (ccd) of sub-rule 1 of rule 2 of the Service Tax Rules, 1994 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. Amends rule 3 proviso which read as <em>Provided that in case the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service</em> and which will now read as, <em>"Provided that in case <font color="#FF0000">of services other than online information and database access or retrieval services, where</font> the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service." </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c. As per Rule 9, the place of provision of following services shall be the location of the service provider:- </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Services provided by a banking company, or a financial institution, or a non-banking financial company, to account holders; </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Online Information And Database Access Or Retrieval Services; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Intermediary services; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Service consisting of hiring of means of transport, upto a period of one month. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) above is now deleted. </font></p>
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<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Notification No. 25/2012-Service Tax, dated the 20th June, 2012 - the Mega Exemption - Withdraws exemption from service tax for services provided by a person in non-taxable territory to Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory.: <a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3NTA=" target="_blank">Notification No. 47/2016-ST., Dated: November 09 2016 </a></font></strong></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. A proviso is added to entry 34 to stipulate that the exemption shall not apply to online information and database access or retrieval services received by persons specified in clause (a); Clause (a) exempts Services received from a provider of service located in a non- taxable territory by Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. A new definition (xab) is added - <em>"online information and database access or retrieval services"</em> has the same meaning as assigned to it in clause (ccd) of sub-rule 1 of rule 2 of the Service Tax Rules, 1994 </font></p>
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<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Service Tax Rules Amended - so as to prescribe that the person located in non-taxable territory providing online information and database access or retrieval services to 'non-assesse online recipient', as defined therein, is liable to pay service tax and the procedure for payment of service tax.: <a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3NTE=" target="_blank">Notification No. 48/2016-ST., Dated: November 09 2016 </a></font></strong></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. A new definition 2(1)(ccba) added - <em>"non-<font color="#FF0000">assesse</font> online recipient" </em>means Government, a local authority, a governmental authority or an individual receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. A new definition 2(1)(ccd) added - <em>"online information and database access or retrieval services"</em> means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology and includes electronic services such as,--------- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c. As per 2(1)(d)(i)(G), <em>in relation to any taxable service provided or agreed to be provided by any person which is located in a non-taxable territory and received by any person located in the taxable territory,</em> the recipient of such service is the person liable for paying service tax; This is now amended to read as <em>in relation to any taxable service</em> <em>"<font color="#FF0000">other than online information and database access or retrieval services,</font>"</em> <em>provided or agreed to be provided by any person which is located in a non-taxable territory and received by any person located in the taxable territory </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d. A new item is added as 2(1)(d)(i)(H) regarding the person liable for paying service tax - <em>in relation to services provided or agreed to be provided by way of online information and database access or retrieval services, by any person located in a non-taxable territory and received by any person in the taxable territory other than non- <font color="#FF0000">assesse</font> online recipient, recipient of such service </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e. New Provisos are added to Rule 2(i)(d)(ii) to prescribe that <em>in case of online information and database access or retrieval services provided or agreed to be provided by any person located in a non-taxable territory and received by non-<font color="#FF0000">assesse</font> online recipient, provider of service located in a non-taxable territory shall be the person liable for paying service tax,</em> and other details. </font></p>
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<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Notification No. 30/2012-Service Tax, dated the 20th June, 2012 - liability of the Service recipient - amended - so as to put compliance liability of service tax payment and procedure on to the service provider located in the non-taxable territory with respect to online information and database access or retrieval services provided in the taxable territory to 'non- assesse online recipient'.: <a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3NTI=" target="_blank">Notification No. 49/2016-ST., Dated: November 09 2016 </a></font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequential amendments are made in this notification also. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In all these notifications, the Central Government wants us to believe that the correct spelling of<em> "assessee"</em> is <em>"assesse"</em>. Assesse is a Belgian town. </font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f2"></a>Anti dumping Duty on DASDA </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</STRONG> has continued anti dumping duty on 4, 4 Diamino Stilbene 2, 2 Disulphonic Acid (DASDA) imported from PR China at modified rates. This notification shall remain in force upto and inclusive of the 22nd January, 2019. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3NTM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 52/2016-Customs (ADD), Dated: November 09, 2016</font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f3"></a>Exchange of Old Currency Notes - Beware Big Brother is Watching </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong> Revenue Secretary tweets: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. We would be getting reports of all cash deposited during 10th Nov to 30th Dec. 2016 above threshold of Rs.2.5 lac in each A/C. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Income Tax department would do matching of this with income returns filled by the depositors. And suitable action may follow. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. If cash amount of above Rs10 lac is deposited in a bank A/C, not matching with declared income, same will be treated as tax evasion </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. In such case, tax amount plus a penalty of 200% of the tax payable would be levied as per Section 270(A) of the income tax Act </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. A person buying jewellery has to give his PAN number; Instructions being issued to field authorities to check it with all jewellers </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Action to be taken against those jewellers who fail to take PAN numbers from buyers to ensure this requirement is not compromised </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Cash deposits of jewellers would be scrutinized against the sales made to check whether they have taken PAN nos of buyers or not</font></p>
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<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Hope you smile your way to the Bank today.</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"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Have a nice day.</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to <strong><a href="mailto:vijaywrite@tiol.in" target="_blank">vijaywrite@tiol.in</a></strong></font></p>
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