TIOL-DDT 348 · the untouched capture
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<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
348</font><br>
</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>25
04 2006</b> <br>
</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tuesday</b></font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Cenvat
Credit Rules amended – to change notification Number. </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule 6, in sub-rule
(6), in clause (vii),of the Cenvat Credit Rules, the bar of separate accounts/payment
of 10% is not applicable to <i>all goods which are exempt from the duties of
customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51
of 1975) and the additional duty leviable under section 3 of the said Customs
Tariff Act when imported into India and supplied against International Competitive
Bidding in terms of notification No. <b>6/2002-Central Excise</b> dated the
1st March, 2002. </i>Notification No. 6/2002 has been superseded in the budget
2006. So the Cenvat Credit Rules are amended to bring in this change.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/exnt06_09.htm">NOTIFICATION
NO. 9/2006-Central Excise (N.T.), Dated: April 21, 2006 </a></u></font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>No
Service Tax on catering at Railway stations </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And who do you
think is giving this clarification? The Railway Ministry!. They have suddenly
become Service Tax experts. The latest clarification from the Railway Ministry
says that, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Though service
tax has been imposed on mobile and on-board catering services of Indian Railways,
it is clarified that service tax has not been imposed on catering services from
static catering units on Railway premises</b>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But why?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Act defines
out door caterer as <i>, </i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>“outdoor
caterer” means a caterer engaged in providing services in connection with
catering at a place other than his own but including a place provided by way
of tenancy or otherwise by the person receiving such services;</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Then who is a caterer?
The Act defines that too.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>"caterer"
means any person who supplies, either directly or indirectly, any food, edible
preparations, alcoholic or non-alcoholic beverages or crockery and similar articles
or accoutrements for any purpose or occasion;</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interestingly there
is an exemption Notification No. 1/2006 which mentions, “<i>This exemption
shall apply in cases where,- (i) the <b>outdoor caterer also provides food</b>;
and…” </i>.<font color="#663399"> <b>What else is he supposed to
provide?</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe if catering
is provided by Railways in its own premises, there would be no tax, but that
logic would apply to catering in the trains too if the food is supplied by Railways.
Very soon the Railways will find that interpreting tax laws is not all that
simple and straight like running trains. Trains most often run on tracks, but
tax has no tracks at all.</font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Sometimes,
we give the Customs drugs or money and they let us through </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shameful?
Pathetic?
– Well it’s true but this is not the much maligned Indian Customs.
This is what a smuggler said recently about Australian Customs. And what did
he smuggle? Drugs and people! He has smuggled in people from Pakistan, Arab,
Sri Lanka, India, Africa and Vietnam. The Australian surveillance boats patrol
only on fixed hours at 10 am and 2 pm which fact is known to every smuggler.
People who go ga ga about India’s rating by Transparency International
should understand that our Customs department is better – far better
than some of those <i>fair</i> and rich countries. </font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Role
model for Vietnam – India – Bill Gates</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bill Gates received
a pop star like reception in Communist Vietnam. And he exhorted them to emulate
India. Citing the Indian example, Bill Gates said, “Hopefully Vietnam
can also be a country that grows the capacity to supply skills to other countries,
including the US'''. He advised them to avoid manufacturing sector, “But
in no sense should Vietnam specialize in manufacturing. It should also focus
on software development, outsourcing. There's an opportunity to do call centers.”
Bill gates said that the opportunity to create high-paying jobs is strong, but
the <b>The key element is talent.</b></font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Greek
and Latin</b></font></p>
<P align=center><B><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt2.jpg" width=375></B></P>
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<TD><IMG height=67 hspace=5 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_word.jpg" width=67 align=absMiddle vspace=5><B><I>De
facto - in fact ; in reality</I></B></TD>
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<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>While de jure
is by law, de facto is in fact. </b></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There can be
a <i>de facto</i> wife and a <i>de jure</i> wife. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tribunal
should be a real substitute of the High Court - not only in form and <i>de jure</i>
but in content and <i>de facto.</i> – Supreme Court in the famous Sampath
Kumar case - <a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2002/2002-TIOL-406-SC-Constitution.htm"><font size="1">2002-TIOL-406-SC-Constitution</font></a></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The phrase is
often used with the other phrase <i>de jure.</i></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Penalty can be
imposed on the <i>de facto</i> as well as <i>de jure</i> importer – CESTAT</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Indeed
the various judicial pronouncements have condemned in strongest terms such <b><i>de
facto</i></b> detention for a long spell of hours by authorities under the guise
of interrogation, eroding the value of human liberty enshrined in Article 21
of the Constitution. It has, therefore, to be held that the confessional statement
recorded from the appellant is not voluntary and does not merit acceptance.
– CESTAT</font></p>
<p align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Legal
Maxims</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Maxim</b>:
- An established principle or proposition. A principle of law universally admitted,
as being just and consonant with reason. They are like axioms in geometry. They
are principles and authorities, and part of the general customs or common law
of the land; and are of the same strength as acts of parliament. Maxims of Law
are, in fact, simple statements that anyone can employ in the presentation of
their case. They are nothing more than guidelines to help in conveying to a
Jury the reasons and justification for doing, or not doing, what was done, or
not done, by the Plaintiff or the Defendant. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In our value addition
efforts, DDT plans to bring to you a legal maxim every day. A maxim is a good
opening defence to any case.</font></p>
<p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Actus
me invito factus, non est meus actus. - An act done by me against my will is
not my act.</b></font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
tomorrow with more DDT </font>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice Day.</font></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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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