TIOL-DDT 299 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
299</font><br>
08 02 2006<br>
Wednesday</b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Arrest under Service Tax?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On
Monday DDT asked a question, <b>"Who can arrest for an offence under Service
Tax and who can grant bail?"</b> A famous advocate - writer - friend of
DDT wrote to us,<br>
<br>
what a question baba? Where is arrest under service tax?. The section 83 of
the Finance Act, 1994 which makes certain provisions of the Excise Act applicable
to the service tax has FORTUNATELY OR UNFORTUNATELY not made section 9 or 9A
of the Excise Act or Section 13 (power to arrest) of the Act ibid, applicable
to service tax. So there is no arrest or bail for any service tax evasion, as
on date. But I am afraid, <b>as you have raised this pertinent question in your
popular column, the day is not so far!!</b><br>
<br>
To this another netizen remarked,<br>
<br>
That is the beauty of the question. There are no provisions under Service Tax
to arrest. But, have you heard of the Commissioners down south who shout at
the Service Tax assesses to <b>pay up or face arrests?</b><br>
<br>
Yes it does happen. DDT knows of an incident where a company was forced to make
a 'voluntary' deposit of a huge amount of Rs. Five Crores under threat of arrest
of the Managing Director. When we told them that there was no provision of arrest
under the Service Tax Law, the MD felt so cheated. But if an ignorant Inspector
arrests an assessee for an alleged offence under Service Tax, it is quite possible
that a court may send the 'accused' to 15 days judicial remand and nothing will
happen to the officer who wrongly arrests the assessee.<br>
<br>
So do remember, <b>there is no arrest under service Tax</b> and if somebody
is threatened with arrest, believe it is an empty threat and they really can't
arrest.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Indian
Service Tax extended abroad</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From
<b>DDT 131 - 08 06 2005,</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Indian
service tax extended abroad, but mercifully exempted in some areas</b> - Service
provided by certain Service providers like Customs House Agent , Steamer Agent,
C & F Agent etc,. are exempted if the Service provider is a non-resident
person and the service is consumed outside India in the course of sailing of
a ship. <b>Is the Indian government competent to levy service tax on Services
rendered abroad?</b> But that seems to be what the Government believes. They
have levied a tax on services provided abroad and even granted certain exemptions
on services availed abroad.<br>
<br>
<b>Exemption to service provided abroad</b> – While the government has
expanded its jurisdiction to levy service tax on Services rendered abroad, they
have been kind enough to exempt Services provided to an individual who is abroad
if there is no commerce or industry involved. If a barber in India provides
a hair cut in Paris, the Service is perhaps exempted if the hair is not sold.<br>
<br>
When we covered it way back in June 2005, nobody believed that the Government
will be so naive as to tax services abroad; 'there is something wrong, maybe
you did not understand the law properly", they told us until the wiser
departmental officers started demanding service tax from Indian companies who
are getting services like commission agency and commercial coachingand
training abroad. We have been flooded with mails and calls after we reported
that the Madras High Court has granted a stay on these provisions. Toady we
are carrying a detailed analysis of the issue in our <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3262">"Special
Column</a>". We hope to bring you the judgement later in the day.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>DGFT restricts import of certain items</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
following items which were under free import in the ITC(HS) Classification have
been changed into the restricted category and imports will be allowed only subject
to the provisions of Convention of International Trade in Endangered Species
of Wild Fauna & Flora (CITES) and Wildlife (Protection) Act 1972.</font></p>
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exim
Code</font></strong></div></td>
<td><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Item
description</font></strong></div></td>
</tr>
<tr>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12119046</font></div></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Kuth roots</font></td>
</tr>
<tr>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">06022020</font></div></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cactus</font></td>
</tr>
<tr>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12119080</font></div></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Agarwood</font></td>
</tr>
<tr>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12119044</font></div></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Serpentina
Roots (Rauvolfia serpentina and other species of rauvolfia )</font></td>
</tr>
<tr>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">33013010</font></div></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Agar oil</font></td>
</tr>
</table>
<p align="justify"><b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2005/dgft05not042.htm"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT</font></a></u></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2005/dgft05not042.htm"><b><u>
NOTIFICATION NO. 42/2005 Dated: February 6, 2006</u></b></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Greek
and Latin - DDT's new feature</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i><font color="#663399"><b>Dasti:</b></font></i>
- Let's take an Indian word today that is more Latin than Latin. This simply
means service of a notice or order by hand. There are several laws in India
which have a provision, "The service of a notice shall be made by hand
delivery (Dasti)". When you need an order urgently you can request the
Court to give it Dasti.<br>
<br>
The law permits the plaintiff to serve notice. It is called dasti service or
hand summons wherein the petitioner is also given the permission to serve contempt
notices on the contemners. A copy of the summons is obtained from the court
registry and served on the party with an acknowledgement taken.<br>
<br>
The Jammu and Kashmir High Court in Parkash Singh v Chinta Devi
- (2001) 1 J & K Law Reporter 156 - observed, "There is no dispute
with the legal proposition and there is nothing in the Civil Procedure Code
which expressly inhibits the service of summonses by the mode, known as <b>‘Dasti’
process</b>. It is also true that the language of Rule 8 of Order 16 is very
flexible and the words ‘as nearly as may be’ there-under are wide
enough to permit the issue of Dasti process for witnesses also."<br>
<br>
In </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2005/2005-TIOL-38-CESTAT-DEL.htm">2005-TIOL-38-CESTAT-DEL</a></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">,
the Tribunal had directed that the order be given DASTI.<br>
<br>
(If you can pardon me a little autobiographical reference, which <b>DDT</b>
tries to avoid assiduously, I never knew about Dasti, until I recently won a
writ in the High Court. The favourable order of the High Court was crucial to
my case in the Tribunal the next day and I had no clue as to how the High Court
order will reach the Tribunal the next day. Dasti came to my rescue.)<br>
<br>
<font color="#663399"><b>When I was a kid I used to pray every night for a new
bike. Then I realised, God doesn't work that way, so I stole one and asked him
to forgive me.</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666">See
you on Friday with the <font color="#663399" size="3">300th</font> edition
of DDT<br>
<br>
Have a nice day.<br>
<br>
Mail your comments to</font></b> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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